Decision Maker:

Outcome: Implemented

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: April 29, 2025

Purpose:

Content: RESOLVED to:   1.  Approves the award of? the Asset Management Delivery Construction Contractors Framework Agreement to support the delivery of the Council’s Asset Management Delivery Capital programme ?to the following bidders:?-   Lot 1 - Mechanical  - Bidders A, B, C?, D   Lot 2 - Electrical  - Bidders L, A, B?, M   Lot 3 - Fabric  - Bidders A, R, E?, I   2.  Noted that officers will be liaising with the Procurement team following the meeting to clarify how the discretion will be used and its limits in relation to third paragraph at section 9.3 of the submitted report and an update to be provided to the Committee.   Reasons For Decision   This report seeks approval for the award of a Construction Contractors Framework Agreement to support the Council’s Capital program.   The formation of a contractor’s framework offers the Council a rapid, easily accessible, highly cost-effective route to appointing vetted contractors.   The framework will mostly consist of small and medium-sized enterprises (SME) that can be regularly used by LBH AMD if and when required.  Although there are many Nationwide Contractors Frameworks, they very rarely have the smaller suppliers on their lists.  Our experience in using such frameworks has shown us that larger organisations do not always fit our profile for works to be carried out quickly.   Alternative Options Considered and Rejected   Option 1: Insource all or part of the works required   Resources required for specialised skills and expertise are not available in-house nor generally employed directly by the Council as these works are required on an ad hoc basis on Capital projects depending on the nature of the works being carried out.   The lack of staff and operational accommodation associated with insourcing all the work activities included in the AMD contracts does not make this option viable and was therefore rejected at this time.    Insourcing could be advantageous to LBH and something that has been progressed in ways previously noted such as the investment in the internal client team.   Option 2 – Utilising existing contractors’ frameworks   This is not the preferred route in order to meet the requirements. Our projects often require specialist expertise and have very narrow timeframes, and we need contractors whose values and a way of working are aligned with the council’s.  At present the model that we are working with is not effective to the nature of the works that we are carrying out.  Currently too much time is being spent on tendering works with various numbers of contractors. We would like to offer more support to the smaller SME’s and by procuring our own framework we can extend our pool of suppliers by inviting the smaller and medium companies that are not on the existing frameworks to participate.   Option 3 - To procure contractors via conventional tender routes   These routes are time consuming and require more resources from the department. The nature of the department’s work is often urgent and requires using the most efficient way to procure the contractors. The use of one-off procurement exercises would lead to a wide variety of contractors making contract management more complex.  It would also give rise to a wide variety of prices for similar work, due to different tendering times.  This offers poor cost certainty and may cause challenges from leaseholder groups.  One-off procurement exercises will only be used for unusual items of specialist work which fall outside of the longer contractual arrangements term