Content

To approve entry into a contract
with Alliance Leisure at a value of £175,430 for completion
of the RIBA Stage 1 and 2 assessments in relation to the proposed
development of Manor Leisure Centre.
 
 
Decision:
To enter a contract with
Alliance Leisure to carry out RIBA stages 1 and 2 pre-construction
works for the Manor Leisure Centre project at a value of
£175,430.

Reasons for the decision

On 24th February
2025, Cabinet considered a Report in relation to Fenland District
Council’s Leisure Centre Facility Strategy and were asked to
consider and agree potential refurbishment and improvement projects
all also then subject to the approval of the Budget by Full Council
later that day.
 
One of the proposals considered
and approved by Cabinet was redevelopment of Manor Leisure Centre
in Whittlesey.  Specifically, Cabinet
agreed to authorise the s.151 Officer to add additional funding
into the capital programme for this purpose of enabling the
pre-construction RIBA Stage works to be undertaken.  The s.151 Officer made provision for this
additional funding within the Budget which was subsequently then
approved by Full Council. 
 
In accordance with these
arrangements, this decision now seeks approval to enter a contract
with Alliance Leisure to undertake the pre-contract RIBA
assessments.  This information will then
be used to inform future decisions as to enter a construction
contract for the final project proposal.
 
Alliance Leisure (AL) have been
selected to undertake the RIBA assessments via the UK Leisure
Framework.  The UK Leisure Framework was
established by Denbighshire County Council, acting as a central
purchasing body, in 2022. This is the third successive framework of
this type procured by Denbighshire County Council. It is a single
provider framework, and Alliance Leisure is the appointed
contractor on the Framework.
 
The key documents for this initial procurement are the
Access Agreement and the Pre-construction fee proposal.
 
The Access Agreement stage:
 
If approved, the Council will enter into the Access
Agreement with AL to progress the project through Feasibility
initially, and then if required, pre-construction services. There
is no access fee for using the Framework at this stage.
 
At the completion of the RIBA Stage 2 work, the Council
will receive:
 

Indicative layouts /
designs (informed by surveys carried out)
Itemised build cost
plan
Total project
costs
Essential Survey
reports
Stage 2 report and
proposal

 
AL states that this will give the Council the level of
information required to make an informed decision on whether to
progress to the final pre-construction gateway.
 
The Access Agreement states that there would be an invoice
on instruction of 50% of all Fees for Stage 2 with the remaining
balance spread equally over the period of delivery. However, AL
clarified that this was 50% of £12,500 and this will be
clarified in the Access Agreement.
 
Contractor costs are payable via a monthly drawdown through
evaluation to identify and evidence progress from which appropriate
certificates of payment will be issued for invoicing. This is more
relevant for RIBA 3-4 and RIBA 5. In essence, there will be a QS
assessment and monthly invoices. Payment is required 20 days from
the invoice, which is shorter than the usual 30-day period, so
processes will have to be put in place to ensure payment is made on
time.
 
The insurance levels and provisions in the Access Agreement
are standard.
 
The Council will want to be
able to use the reports etc provided by AL if it decides not to go
ahead beyond RIBA Stage 2. The Council has clarified with ALS that
the Council will have the rights to use and assign any work
products for which it has paid, including that produced by
AL’s subcontractors.
 
Cabinet has also agreed to commission at RIBA Stage 3 and
4, at the end of which the Council will receive:
 
A
Stage 3 Interim Report leading into Stage 4 provides an interim
step before committing to full ‘Cost Certainty’ which
includes detailed design / surveys /costs and additional
fees.
 
To progress to the final pre-construction gateway, AL will
develop the proposals to a stage of ‘Cost
Certainty’.
 
Cost Certainty delivers the following:
 

Detailed layouts /
designs (informed by surveys)
Itemised build cost
plan (informed by surveys)
Risk
Register
Total Project Costs,
giving a fixed contract sum to take forwards Reports from further
Survey work
Full Contractors
Proposals
Draft framework
documentation
Detailed delivery
programme

 
This is stated to give the Council all the information
required to make an informed decision to progress the development
into construction.
 
Once the agreed-upon schemes are ready to deliver, a
Development Management Agreement (DMA) is entered into with the
Council to deliver the project at the agreed sum. AL would then
enter into the building contract directly with the building
contractor and arrangements with identified specialist suppliers as
required. At this point only would a Framework fee
apply.
 
AL will assume project delivery risk, as identified, and
agreed in the project Risk Register. The price would be set, with
any cost overruns, other than instructed variations and apportioned
risks being managed or borne by AL.
 
The building contract proposed will be a JCT Design and
Build Contract.
 
Social value:
AL states that it is committed to maximising the benefits of developments to
communities, not only to enable more people to be physically
active, but to ensure engagement where appropriate with local
companies and supply chain to ensure the project contributes back
into the local economy. As the project moves from concept to
delivery, KPIs will again be agreed with clients to consider what
local advantages are optimal with regard to local key objectives
and the scope of the project.
 
While AL’s sub-contractors are already on the
appointed list, AL has said that it will be very proactive in terms
of social value, and their approach is comprehensive and should
give us confidence that social value obligations will be handled
effectively and give a transparent and effective
approach.
 

Alternative options considered

1.   
Not to proceed with the preconstruction RIBA
Assessments. This option would have been contrary to the decision
taken by Cabinet on 24 February 2025 and the subsequent approval of
the funding by Full Council.
2.   
To undertake a procurement exercise to appoint a
contractor to undertake the RIBA Assessments rather than using the
UK Leisure Framework.