Decision Maker: Strategic Director (Place)
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
PART II
PART II reason: The report contains information relating to the
financial and business affairs of the Council and third party
organisations.
(LGA 1972, Part V, Schedule 12A, part 1, paragraph 3).
Decision made and reasons:
Decision: To approve the appointment of a Principal Contractor for
the St Margaret’s Way project.
Reason: To progress the construction of new Council homes.
Background
At the 27th September 2022 Cabinet Meeting, approval was sought for
the appointment of the Principal Contractor for the Council’s
housing development project at St. Margaret’s Way. The
project includes 46 new, two and three bed homes, which are a mix
of flats and houses on land owned by the Housing Revenue Account
and land to be appropriated from the general fund.
After an open tender procurement process, three bids were returned
and evaluated on both price and quality. Helix Construct Ltd
returned the highest scoring tender and therefore identified as a
preferred bidder all for the tendered sum of £13,349,702,
with a development period of 21 months.
The Cabinet report recommended the award of the main contract to
construct these new homes once a planning approval has been
achieved for the development. This is subject to the lifting of the
planning moratorium.
The Cabinet decision amended the proposed recommendation as follows
to include a further financial assessment of Helix Construct Ltd
the preffered bidder.
Cabinet Decision
1.Subject to a satisfactory financial assessment and agreement on
contract price in accordance with recommendation 2, and the project
achieving formal planning approval, awards the main contract to
construct 46 social rented homes to Helix Construct Ltd.
2.Delegates authority to the Strategic Director (Place) and the
Chief Finance Officer in consultation with the Portfolio Holder
(Place) to carry out a further financial assessment of Helix
Construct Ltd and to finalise the contract value with the approved
contractor.
An updated financial assessment was conducted on Helix Construct
Ltd and approved on the 12th October 2022 in a separate Officer
Decision Record Sheet.
The contractor’s tender price remained fixed and valid until
the 19th October 2022. After further negotiations with the
contractor, they provided costs for additional fees beyond this
date which total £300,000. These costs have been checked and
verified for value for money by our Employers Agent. A revised
contract sum to appoint the contractor is now
£13,649,702.
This report therefore seeks approval to appoint Helix Construct Ltd
to deliver the St Margaret’s Way project for a contract sum
of £13,649,702.00
To approve the appointment of a Principal
Contractor for the St Margaret’s Way project.
n/a
Publication date: 15/11/2022
Date of decision: 16/11/2022