Agenda item

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 the award of the following contract for a project approved under the capital programme as detailed below:-

 

Detail required	Answers
Partial internal refurbishment of the Civic centre, Swinton	Design and Build Contract for a Housing Project at Long Shaw Drive
Name of Successful Contractor	Crossfield Construction Ltd
Supplier Registration Number (to be supplied by Corporate Procurement)	07963048
Type of organisation (to be supplied by Corporate Procurement)	Private Limited Company
Status of Organisation (to be supplied by Corporate Procurement)	SME
Contract Value	£331,347.45	Full Project £349,000 including surveys and associated costs
Contract Duration	Approx. 9 months
Contract Start Date	01/08/2021
Contract End Date	30/04/2022
Optional Extension Period 1	Months
Optional Extension Period 2	Months
Who will approve each Extension Period?	Choose an item
Contact Officer (Name & number)	Andrew Leigh 07970 379519
Lead Service Group	Place
How the contract was procured? (to be supplied by procurement)	Framework Call-off (Mini Competition)
Framework Details (where applicable) (procurement body, framework reference & title, start/ end date	Innovation Chain Framework
Funding Source	Capital Programme
Ethical Contractor	Mayor’s Employment Charter Committed to sign up to the Charter
	Accredited Living Wage Employer

 

 

The Reasons are: To appoint a constructor partner on the design and build housing project to finalise costs and agreed budgets for Stage 2 of the design and build procurement route.

 

Options considered and rejected were: None. All procedures are in accordance with normal Contractual Standing Orders

 

Assessment of Risk: Medium.

 

The programme has been developed to achieve the delivery of contracts to meet the grant funding criteria and the necessary phased completion dates.

 

Procurement Board should note that full ownership control of the site has not yet been secured.

 

This will be a risk to development progression and business plan viability if not resolved quickly and at reasonable cost. Officers are confident this can be achieved.

 

The source of funding is:

 

The cost of this scheme is built into the approved capital programme funded from a combination of self-financing borrowing and grant funding on the basis that all units will ultimately be funded by Derive on their transfer at completion.

 

Legal Advice obtained. Supplied by: The Shared Legal Service - Contact officer and telephone number: Tony Hatton - Principal Solicitor tel. 0161 219 6323.

 

When commissioning contracts for the procurement of goods, services or the execution of works, the Council must comply with the public procurement regulations and its own Contractual Standing Orders, failing which a contract may be subject to legal challenge from an aggrieved provider. The proposed award of the contract follows a tender exercise by mini competition in accordance with the Innovation Chain Framework.

 

The purpose of a framework agreement is to select through a procurement/evaluation process a number of providers who can meet the service requirements of the Council, as and when those services are required. If they are required then the Council will undertake an exercise to call off the services from one or more of the providers who have been selected to be on the Framework and this may be through any number of ways e.g. mini-competition, direct allocation etc depending on the circumstances. A contract will then be formed between the Council and the chosen provider/s.

 

The Council will need to have followed the procedure set out in the framework agreement for mini competition to ensure the procurement process is compliant. Three tenders were received from framework suppliers for this project, which have been evaluated on the best value tender basis in line with procurement procedures resulting in the proposed award of the contract to Crossfield Construction Ltd. The procurement procedures therefore appear robust and compliant with the requirements of the City Council’s contractual standing orders and public procurement legislation.

 

The award of the contract will commit the City Council to the formal arrangement and upon receipt of instructions Legal Services will assist in preparing the necessary contractual documentation to ensure the City Council’s position and interests are protected.

 

FINANCIAL IMPLICATIONS: Submitted by: Chris Mee Strategic Finance Manager ext 0434

 

The business case for this scheme received in principle approval from cabinet in December 2020 based on an estimated cost for the scheme that was affordable to be funded on transfer of the units by Derive. Provision has been included within the approved capital programme on that basis funded from a combination of self-financing borrowing and grant funding.

 

The appointment of a contractor and move to the stage 2 process will allow the affordability of the scheme to be confirmed at which point further approval to proceed will be required, both from the council and the Derive board.

 

The cost for the Second Stage tender process is £331,347.45 Full Project £349,000surveys and associated costs, to be met from within the budget for the scheme.

 

In the unlikely event that this scheme does not go ahead this stage 2 cost identified above will be abortive and will fall on the council.        

 

Other associated Professional fees i.e. Project Manager, Employers Agent, Cost Management will be subject to a separate report.

 

HR Advice obtained; N/A

 

Climate Change Implications:

 

The project is being developed as Low Energy Low Carbon to exceed current Building Regulations relating to energy efficiency and carbon reduction. The operational and running costs of the new houses will be a significant factor in the overall requirements. The designs are required to support the objectives of Salford City Council becoming carbon neutral by 2028.

 

Crossfield have stated that they will apply environmental management activities to develop the schemes which will support the GMSF work and they are accredited under ISO 14001:2015. 

 

The final project design and construction will be in full compliance with current building regulations with aspects which exceed these where possible.

 

Any sustainability plan would be targeted to also align with opportunities to deliver social value outcomes.

 

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

 

Report to Procurement Board dated 28^th July 2021.

CONTACT OFFICERS:

 

Andrew Leigh

Head of Housing & Strategy

Salford City Council

Mob 07970 379519

 

Les Woolhouse

Head of Buildings & Facilities

Mob: 07713 786 093

 

Peter Openshaw

Interim Strategic Director Place 

Mob 07766550136

 

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 and the Overview and Scrutiny Board

 

*         This decision was published on 28 July 2021

*         This decision will come in force at 4.00 p.m. on 4 August 2021 unless it is called-in in accordance with the Decision Making Process Rules.