Content

 
RESOLVED:
 
3.1  Approve the strategy
for procuring a CPAM Construction Contractors Framework required to
support the delivery of the Council’s CPAM Capital programme
in a suite of 3 lots, containing 4 contractors in each lot.
3.2  Note the proposed
length of the framework is 4 years with an overall value of
£69.5m.
3.3  Note that
mini-competition and direct call-off procedures under the Framework
Agreements will be utilised on 100% cost with the option to add the
quality element at the discretion of CPAM.
 
Reasons For Decision
 
5.1.1 The Council has a Capital and Revenue
Program of works requiring significant investment to support key
Council priorities across a wide variety of its property assets
which is managed under its various Directorates.  The Council needs to therefore procure various
works contractors to provide extensive technical expertise and
support in its delivery of the Capital Program of works.
 
5.1.2 The works required to support such
capital projects are related to  mechanical, electrical and fabric matters.
The contractors will provide a range of professional and technical
works required by the Council to effectively support the delivery
of its Capital Program. These contractors are not available
in-house.
 
5.1.3 The Council therefore proposes to set up
a framework agreement with pre-qualified and methodology assessed,
high quality works contractors offering competitive rates to assist
in the delivery of capital projects over the next four years. This
framework for contractors will be designed with the intention of
delivering savings to the Council.
 
5.1.4 This report seeks approval for the
procurement strategy in respect of construction contractor works to
support the Council’s Capital program. 
 
5.1.5   The aim is
to establish a 4 year contractors
framework, which will mostly consist of local small and
medium-sized enterprises (SME) that can be regularly used by LBH
CPAM if and when required.  Although
there are many Nationwide Contractors Frameworks, they very rarely
have small local suppliers on their lists.  Our experience in using such frameworks has shown
us that larger organisations do not always fit our profile for
works  to be
carried out quickly.
 
5.1.6  The formation of a contractors framework
offers the Council a rapid, easily accessible, highly cost
effective route to appointing vetted contractors. This report also
takes a strategic overview of all service requirements, and
assesses the short and long term opportunities to increase the
portion of work done by SMEs.
 
5.1.7   The spend
on contractors’ services to assist the council in delivering
the capital works programme over the next four years is estimated
to be in the region of £69.5 million. This will be based upon
CIPFA condition related remedial works and compliance related works
including standalone projects.
 
5.1.8   The fees
for contractors works to support the delivery of capital projects
are funded through the Council’s approved Capital Program
budget. Contractors’ fees are sometimes paid from revenue
budgets and are capitalised to be included as part of the overall
projects' costs on a project.
 
Alternative Options
(Considered and Rejected)
 
5.5.1 Option 1: Insource all or part of the works
required
Resources required for specialised skills and
expertise are not available in-house nor generally employed
directly by the Council as these works are required on an ad hoc
basis on Capital projects depending on the nature of the works
being carried out.
 
The lack of staff and operational
accommodation associated with insourcing all the work activities
included in the CPAM contracts does not make this option viable and
was therefore rejected.
 
5.5.2 Option 2 – utilising existing
contractors  frameworks
This is not the preferred route in order to
meet the requirements. Our projects often require specialist
expertise and have very narrow timeframes, and we need the
contractors whose values and a way of working are aligned with the
council’s.  At present the model
that we are working with is not effective to the nature of the
works that we are carrying out. 
Currently too much time is being spent on tendering works with
various numbers of contractors. We would like to offer more support
to the local businesses and by procuring our own framework we can
extend our pool of suppliers by inviting small and medium local
companies that are not on the existing frameworks to
participate.
 
5.5.3 Option 3 - to procure contractors via
conventional tender routes
These routes are time consuming and require
more resources from the department. The nature of the
department’s work is often urgent and requires using the most
efficient way to procure the contractors. The use of one off
procurement exercises would lead to a wide variety of contractors
making contract management more complex.  It would also give rise to a wide variety of
prices for similar work, due to different tendering
times.  This offers poor cost certainty
and may cause challenges from leaseholder groups.  One-off procurement exercises will only be used
for unusual items of specialist work which fall outside of the
longer contractual arrangements term.