Purpose

To increase the current
£20m internal governance contract value limit to £37.8m
to align with the assigned budget and grant funding.

Decision

Summary of Decision: The Cabinet Member
for Finance and Council Reform has approved the contract variation
for the delivery of Energy Efficiency Programme Retrofit (RE:FIT)
– Workplaces works to Vital Energi Utilities Ltd (04050190). The total sum is
for £30,000,000 exclusive of VAT, £36,000,000 inclusive
of VAT with a contract end date of 31 March 2031. The Cabinet
Member has approved the associated spend of £10,000,000 as a
result of the contract variation.
 
Reason for Decision: Currently just
over £19.04 million has been spent on the contract with a
further £2.38m committed to through IGPs. If a variation to
the current contract is not actioned by March 2025, works will halt
and the ambitious target of net zero by 2030–2040 for scope 1
and 2 emissions would be put at risk. The Council will not be able
to instruct further works with Vital Energi beyond the current expenditure cap of
£20m until the capacity is increased.