{meta} Decision - RSAP Modular Properties (Konrad Magdzinkski)

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I Councillor Hinds, Lead Member for Finance and Support Services and chairman of the Procurement Board, in exercise of the powers contained within the Council Constitution do hereby approve:

 

·      To award the contract, for approves the council entering a Pre-Construction Services Agreement (PCSA) with PLP to enable the building of 24 modular units through the Rough Sleepers Accommodation Programme (RSAP) and to commence direct negotiations with them to deliver additional affordable units on these sites.

 

Detail required

Answers

Title/Description of Contracted Service/Supply/Project

Construction of Move on accommodation through the RSAP

Name of Successful Contractor

               PLP Construction Ltd

Supplier Registration Number

(to be supplied by Corporate Procurement)

                                03244506

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

SME

Contract Value (£)

£268,800

Full construction costs will be confirmed at Stage 2 of the procurement process

Contract Duration

7 months

Contract Start Date

16/05/2022

Contract End Date

30/11/2022

Optional Extension Period 1

months

Optional Extension Period 2

months

Who will approve each Extension Period?

Procurement Board (extension > £150k)

Contact Officer (Name & number)

        KONRAD MAGDINSKI 07932 874 871

Lead Service Group

Place

How the contract was procured?

(to be supplied by procurement)

ICN Framework

Framework Details (where applicable)

(procurement body, framework reference & title, start/ end date

Innovation Chain North (ICN) is a framework for

construction and associated professional

services procured under the Public Contracts

Regulations 2015 and is OJEU compliant. It has

been designed to support the delivery of new

homes and associated social infrastructure

across the North of England. The framework

includes lots for contractors, associated

professional services as well as a Dynamic

Purchasing System (DPS) for the supply of

Modular Homes.

Funding Source

Grant

Ethical Contractor (EC): Mayor’s Employment Charter

 

EC: Committed to sign Charter

?

 

EC: Accredited Living Wage Employer

?


 

The Reasons are

 

The appointment, at a cost of £268,500, will commit to appointing a contractor under stage 1 to develop costs and designs under a two-stage procurement route. Permission is also sought to explore using the same contractor the delivery of some additional affordable units on these sites, subject to satisfactory assessments of value for money.

 

The report also seeks approval to place a deposit for the first set of units manufacture (£120,000) to maintain programme and draw down of grant.

 

Assessment of Risk: Low

Risks will be monitored and mitigated through the project group. The main risk is achieving spend in accordance with grant funding requirements. Approval of the report will ensure the schemes can begin before the end of October 2022.

 

If at any point the cost is not viable or providing VFM (Value for Money) SCC are not

bound to enter any PCSA or contract with PLP. An assessment of the risk of placing

orders will be carried out prior to placing a deposit on the manufacture of units.

There are also potential construction risks of rising costs and material shortages.

 

The source of funding is:

The cost of this scheme is included within the approved capital programme funded from a combination RSAP Grant and council match funding.

 

Legal Advice obtained – The Shared Legal Service – Tony Hatton

 

Financial Advice obtained David Mills – Commercial Finance Manager

 

Procurement Advice obtained Debbie Derbyshire Ext 6244

 

The following documents have been used to assist the decision process: N/A

 

Contact Officer:                    Konrad Magdzinski

Telephone number:             07932 874871

 

Please delete from the bullets below any which are not relevant

 

This matter is not subject to consideration by another Lead Member.

 

The appropriate Scrutiny Committee to call-in the decision is the Growth and Prosperity Scrutiny Panel.

 

Signed:           Bill Hinds                           Dated:     11 May 2022             .

                    Lead Member

 

FOR DEMOCRATIC SERVICES USE ONLY

 

*           This decision was published on 12 May 2022

*           This decision will come in force at 4.00 p.m. on 19 May 2022, unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 12/05/2022

Date of decision: 11/05/2022

Decided at meeting: 11/05/2022 - Procurement Board

Effective from: 20/05/2022

Current call-in Count: 0

Accompanying Documents: