{meta} Decision - Request for Approval - Recommendation to Islington Mill Arts Club on Award of Contract - Apppointment of Building Contractor

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I Paul Dennett, City Mayor, in exercise of the powers contained within the Council Constitution do hereby approve the award of the contract by Islington Mill Arts Club for the appointment of a building contractor for the refurbishment works at Islington Mill & New Islington Mill.

 

Detail required

Answers

Title/Description of Contracted Service/Supply/Project

Islington Mill & New Islington Mill refurbishment- Appointment of a building contractor

Name of Successful Contractor

KrolCorlett Construction

Supplier Registration Number

(to be supplied by Corporate Procurement)

05974400

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

SME

Contract Value

£4,125,521.36

Full Project

Contract Duration

46 weeks + 12 months defects period

Contract Start Date

05/07/2021

Contract End Date

02/06/2023

Optional Extension Period 1

n/a

Optional Extension Period 2

n/a

Who will approve each Extension Period?

Procurement Board (extension > £150k)

Contact Officer (Name & number)

Perry Twigg 07966 316309

Lead Service Group

Place

How the contract was procured?

(to be supplied by procurement)

Open Tender

Framework Details (where applicable)

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

N/A

Funding Source

Grant

Ethical Contractor

Mayor’s Employment Charter

Committed to sign up to the Charter

 

Accredited Living Wage Employer

?

 

 


 

The Reasons are

 

To enable the refurbishment of Islington Mill and New Islington Mill to be undertaken and support IMAC, in their ambitions in the short term to refurbish and expand managed workspace and business support provision for a creative industries hub centred on Islington Mill.

 

Options considered and rejected were

Not to support the project, however this was discounted and authority to support/progress the project was given by the City Mayor at the Property and Regeneration Briefing on the 23rd March 2020.

 

Assessment of Risk

Medium:

 

The key risk was that tender returns were greater than the estimated value/available funding.  Taking the value of this tender (4.13 million) and adding to this the previously tendered advanced roof works (£0.36 million) and advanced asbestos removal (£0.02 million) the total value of the package 2 works is £4.51 million.  This is less than the estimated value of £4.62 million for this package of works.

 

Although the above risk has currently been eliminated, both Islington Mill and New Islington Mill are historic buildings which are notoriously complex to refurbish.  Whilst best endeavours have been made by the consultancy team through surveys and design work to ensure that risk is minimised, unforeseen problems frequently arise when works are undertaken on site, leading to increased cost.  Wherever feasible, ‘Value Engineering’ will be utilised to manage this risk.

 

Delays in accepting this tender and not commencing the works in July 2021 could also potentially lead to the loss of Arts Council England funding, which is time limited.  The consultancy team responsible for the design and procurement of the building works are liaising closely with Arts Council England in connection with programme to mitigate this risk.

 

LEGAL IMPLICATIONS: Supplied by: Tony Hatton and Lauren Armstrong, Shared Legal Service

 

When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the provisions of the Public Contracts Regulations 2015 (PCR) as well as its own Contractual Standing Orders (CSO’s), Financial Regulations and the duties of Best and Social Value. In addition, the PCR require that contracting authorities treat candidates equally and in a non-discriminatory way and act in a transparent manner, failing which the award of a contract may be subject to legal challenge.

 

The procurement procedure undertaken for the appointment of the contractor follows an open tender process on the Chest portal in compliance with the PCR, CSO’s and ERDF funding requirements which is outlined within the body of the report. The tenders submitted for this project have been evaluated on the most economically advantageous tender basis in line with published criteria.

 

Having undertaken the tender exercise in the recommendation will give some comfort to the Council in ensuring that value for money is being obtained and periodically tested, with open competition maintained. In following the procedures, any potential challenge to the award of a contract to a provider from an aggrieved provider will be significantly reduced.


FINANCIAL IMPLICATIONS: Submitted by:  Supplied by: Alex Archer 778 0498

The council has entered into an ERDF grant funding agreement and is due to enter into a back to back development agreement with IMAC.

 

IMAC will be the organisation which enters into the building works contract and accordingly the Council will not be the contracting authority but will support IMAC to ensure that IMAC complies with relevant legislation and the Council’s own procedures, which are obligations under the grant funding agreement with and required by ERDF.

 

SCC will re-imburse IMAC for works undertaken on it’s behalf at New Islington Mill through the development agreement and re-claim through the grant funding agreement with ERDF.

 

As identified in the risk section, due to the age of the buildings there is the risk of unforeseen issues arising. In these circumstances value engineering will be utilised to manage the risk. Any increase in cost would need to be financed from unsupported borrowing within the existing Place capital programme.

 

Expenditure Code: A10131

 


PROCUREMENT IMPLICATIONS: Supplied by:  Deborah Derbyshire

The procurement process is outlined in the report above, therefore this is in line with Public Contracts Regulations 2015 and the council’s contractual standing orders.


HR IMPLICATIONS:  Supplied by: Not applicable


CLIMATE CHANGE IMPLICATIONS:  Supplied by:

Consulted: Mike Hemingway, Principal Officer Climate Change ext 3209 

 

A requirement of ERDF is that the project meets BREEAM ‘very good’. The Councils aspiration is to aim for ‘excellent’ on this project.  However, it should be noted that this can often prove difficult on historic buildings.


 

OTHER DIRECTORATES CONSULTED:

N/A

 

The following documents have been used to assist the decision process.

 

Report of Strategic Director for Place 21st April 2021– Approval to recommend for Islington Mill Arts Club to award the contract for the appointment of a building contractor for the refurbishment works at Islington Mill & New Islington Mill.

Contact Officer: Perry Twigg

Telephone number: 07966 316309

 

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 Panel.

 

Signed:     PAUL DENNETT         Dated:  22nd April 2021.

                    City Mayor

 

*         This decision was published on 22nd April 2021  

*         This decision will come in force at 4.00 p.m. on 29th April unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 22/04/2021

Date of decision: 21/04/2021

Decided at meeting: 21/04/2021 - Procurement Board

Effective from: 30/04/2021

Accompanying Documents: