Decision details

Date of Decision:

17^th July, 2023

Decision Maker:

(Including Job Title)

Strategic Director, Regeneration & Environment

Specific Delegation:

(If any)

Section 4C6 of Constitution, Appendix 9, Responsibility for functions (Strategic Director of Regeneration and Environment – Delegated Executive Functions)

Brief Description of Decision:

Approval of Contract Award to a Contractor for Small Scale Capital Works on Priority Flood Alleviation Scheme Projects

Reasons for the Decision:

Approval of Contract Award for a Contractor to a Small Scale Capital Works to support delivery of the Council’s 6 Priority Flood Alleviation Scheme projects, as a call off via the YORhub framework. This contract is a direct award. This takes account of the difficult situation in the current market, evidenced by the shrinking number of tenders received when undertaking a competitive tender process on this type of specialised work.

The contract would be managed in 2 Stages:

•        Stage 1 – pre-construction advice, delivered via a NEC3 Professional Services Contract (PSC)

•        Stage 2 – construction work, delivered via NEC3 Construction Contract(s)

One set of terms and conditions will be required for the entirety of the Stage 1 work.

The Stage 2 work will be negotiated as part of the Stage 1 work, and this is expected to require more than one NEC3 Construction Contract. The number of contracts required will depend on the nature and locations of the construction works.

The Award Value is £4m (excluding VAT).

The contract is intended for use up to 31^st March 2026, with the option to extend by up to 31^st March 2028, if required.

The contract uses an industry standard form of contract (i.e. NEC3) and includes additional clauses of contract to ensure that the supplier works within financial approval limits that are within the approved budget for the 6 Flood Alleviation Scheme projects, thereby reducing financial risk to the Council.

Details of alternative options considered and rejected:

Consideration has been given to alternative procurement routes, including a competitive tender process, however, there is insufficient information available to fully define the scope and programme.

To develop such scope would require significant input from Consultant’s (who have already been procured), however, this would significantly delay the ongoing delivery of the Consultant’s “Shovel Ready” pre-construction process. Even with this additional level of detail, to undertake a competitive tender process with Contractors, the  comparison of alternative tenders would still be very difficult.

The above would result in a prolonged and inefficient route to market, and would jeopardise the ability of the Council to meets its commitment to complete the pre-construction element of the 6 projects by 31^st December 2024.

Conflicts of interest declared by any Executive Member consulted by the decision maker which relates to the decision:

N/A

Dispensations Granted:

(If any)

N/A

Reports or parts of reports considered

Procurement Business Case, as Approved by the Assistant Strategic Director, Regeneration & Environment.