Purpose

On 7 May 2025, the Council’s Executive agreed to progress the Horley Community Centre Modernisation project. A delegated decision was given to the Head of Community Partnerships in consultation with the Portfolio Holder for Community Partnerships, the Portfolio Holder for Finance, Assets and Governance and the Chief Finance Officer, to be authorised to “agree the procurement strategy for the project, undertaking the necessary consultancy, surveyor, and contractor appointments (including main contractor, inspectoral bodies or warranty providers) and to enter into contracts to allow the project to be delivered”.

Explain the reason(s) for the decision.
In line with the procurement strategy agreed by the Portfolio Holders for Community Partnerships and for Finance, Assets and Governance, Officers have carried out the necessary procurement activities to appoint a contractor. This has been undertaken through a two stage design and build procurement route, enabling early contractor involvement, collaborative development of the design, and greater cost certainty prior to entering into the main construction contract.
The contractor will be responsible for completing the design development of the proposals post RIBA Stage 4 and delivering the physical changes to the building.
During the Pre-Construction Services Agreement (PCSA) the contractor services will include:
• Provision of pre construction, buildability, and planning advice
• Cost planning and budgeting, including development of cost plans, value engineering input, and agreement of the final Contract Sum
• Programming and phasing support, including preparation of a detailed construction programme
• Procurement and tendering assistance, with a focus on supply chain engagement and management
• Coordination of design information in collaboration with the design and planning teams
• Undertaking site investigations and surveys
• Health, safety, and environmental guidance throughout the pre construction phase
• Delivery of social value initiatives and engagement with the local community
• Logistics planning, including site access strategy and sequencing
• Identification and assessment of project risks
Companies on the Pagabo Lot 3 (Surrey, East and West Sussex) of the Pagabo Refit and Refurbishment Solutions Framework were invited to tender for this role. Three tenders were received by the Council. A comprehensive qualitative and quantitative assessment has been undertaken of the tenders that were received, as shown in Annex 1, and Logan Construction selected as the preferred supplier.
Fees: Indicative pricing for the cost of the works has been included in the tender offers. Tenderers were provided with a construction sum (estimated prime cost of works) for all of the construction works, this differs from the Cost Plan which is the Council’s actual estimate of the costs and is reflected in the project budget. The fee proposal is assessed on the given construction sum plus the estimated preliminaries, overheads and profits and PCSA fee. These figures will be refined and finalised during the PCSA stage and will remain subject to RBBC’s approval prior to entering into the Main Contract, forming the second stage of the two-stage design and build procurement exercise.
Programme: The Council has a defined programme for the delivery of the Horley Community Centre modernisation project. This includes the following key milestones that the preferred supplier’s tender submission programme achieves:
• December 2025: two-stage procurement process (Pre-Construction Services Agreement and main contract) for building contractor commenced;
• By June 2026: main contract is executed;
• Summer 2026: start on site; and
• Summer 2027: building works completed.
Officers will work closely with contractor to ensure that the project’s target programme is met.

Decision

Following competitive procurement processes in-line with the agreed procurement strategy:
• To enter into a contract with Logan Construction for the provision of Pre-Construction Services Agreement (PCSA).
To note that officers will work closely with the contractor to ensure that:
• Key milestones within the project’s target programme are met, and
• The contractor works alongside the Council’s design team and Employers Agent during RIBA Design Stage 4 to successfully fulfil key conditions, including agreement of the final contract sum and the final designs to proceed to enter into the Main Contract.

Alternative options considered

1. To not enter into the appointments would impact significantly on the Council’s ability to progress the modernisation project. The Council is unable to provide these services in-house therefore re-procurement of these services would need to be undertaken. This is not recommended option as this would delay the project placing risk on the later stages of the timeline.