Content

1)To proceed with
a deed of variation (DoV) for Phase 1 to the NEC 4 Engineering and
Construction contract (the Contract) enabling the Council and
construction contractor to offset monetary sums owed between the
parties, and in the event a monetary sum is due, a net sum is paid
by either party.
2)To proceed with a settlement agreement enabling construction
activity associated with the Phase 1 defects and
rectifications.
3)To proceed with a DoV to the Engineering advisor contract to
include the Biowaste project excluding design liability for the
Biowaste project.
 
There are
confidential appendices to this report which are exempt from
publication under paragraph 3 of Schedule 12A of the Local
Government Act 1972.

Reasons for the decision

Recommendation 1 relates to the Council being
contractually required to pay for additional works. The
Construction Contractor is required to pay the Council a sum of
money for not achieving contractual timescales for completing phase
1 and requires revised phase 2 access dates. To administer the
Contract, some legal formalities need to be completed through a DoV
to offset the values.
Recommendation 2 relates to a financial agreement by the Council
enabling the defects from phase 1 works to be corrected by the
Construction Contractor and commence phase 2 works.
Recommendation 3 relates to there being a spend value that will
take the spend value listed in the waiver beyond the Contracts
Regulations 2015 (PCR). Additionally, the change of engineering
advisor represents a saving to the Council over a 6 month period.
The Council has appropriate replacement engineering advisor
contracts which are compliant with PCR to be used for the Biowaste
project.

Alternative options considered

For Recommendation 1 the alternative options
were:
Option A: Do nothing
Option B: Legal route to seek financial compensation under the
Contract
For Recommendation 2 the alternative options were:
Option A: Do nothing.
Option B: Use an alternative contractor to resolve the
defects
For Recommendation 3 the alternative options were:
Do nothing – remain with existing engineering advisor
Option B: Use an alternative contractor to resolve the
defects