Content

Salford City Council – Record of
Decision
 
I Paul Dennett, City
Mayor, in exercise of the powers
contained within the Council Constitution do hereby approve:
 
1.   
Approve the appointment of Eric Wright Civil
Engineering Ltd at a cost of 
£3,896,590.90, to undertake
the construction works on the New Bailey Gateway Phase 2 –
Junction Of New Bailey Street and Chapel Street; and Chapel Street
East Phase 1 projects.
2.   
Approve the creation of a purchase order to Eric
Wright Civil Engineering Ltd to the value of £3,896,590.90, to enable payments to be
made to the contractor.

3.   
Approve the Construction Phase Supervision,
Governance and Management costs proposed to be delivered by Salford
City Council staff.

4.   
Approve the remaining pre implementation
(development) costs and delivery costs outside of the main
construction contract and approve the creation of any required
Purchase Orders.
5.   
Approval of a risk allocation which can be drawn
down on by the Project Team. This is based on the Quantitative Risk
Assessments (QRA) which have been produced for each
scheme.

6.   
Approval of an additional contingency allowance
which can be drawn down on by the Project Team if costs exceed the
total risk allocation.
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

New Bailey Gateway Phase 2 –
Junction of New Bailey Street and Chapel Street; and Chapel Street
East Phase1

Name of Successful
Contractor

Eric Wright Civil Engineering
Ltd

Supplier Registration Number

(to be supplied by Corporate Procurement)

02841234

Type of organisation

(to be supplied by Corporate Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate Procurement)

Non-SME

Contract Value (£)

£3,896,590.90 (full
project)

Supervision and management
cost:

£288,139.77

Scheme development and delivery costs
outside of main contract:

£1,439,250.56

Quantitative Risk Assessment:

Commercially sensitive

Contingency Funding:

Commercially sensitive

Contract Duration

16 months construction with 24-month
aftercare

Contract Start Date[1]

26/07/2024

Contract End Date

05/11/2025

Optional Extension Period 1

Not applicable

Optional Extension Period 2

Not applicable

Who will approve each Extension
Period?

Not applicable

Contact Officer (Name &
number)

Simon Telford

Lead Service Group

Place

How the contract
was procured?

(to be supplied by
procurement)

Further competition

 

Framework Details (where
applicable)

(procurement body, framework reference
& title, start/ end date

Other (please identify below)

STAR Highway Framework 2021-2025
(Stockport MBC and Bury Council) LOT 7

Funding Source

Combination of Above (please detail
below)

Ethical Contractor (EC): Mayor’s
Employment Charter

 

 

EC: Committed to sign up to
charter

EC: Accredited Living Wage Employer
([2])

 
The Reasons are:

Following a review of procurement and scheme delivery options,
on 13th July 2022 Procurement Board approved the proposal for a
joint procurement exercise to appoint a single principal contractor
to deliver two schemes: New Bailey Gateway Phase 2 – Junction
of New Bailey Street and Chapel Street; and Chapel Street East
Phase1.

 

A
compliant mini-competition has taken place, using an existing
framework, to select a preferred Principal Contractor.

 

Approval by the City Mayor is required in line with the Councils
Constitutional provisions.

 
Options considered and rejected
were:
An assessment of
(existing) framework options was undertaken by the Highways
Services and Procurement teams for the main contract. This review
took into consideration the relative merits and constraints of
using different framework options. The outcome of this exercise was
a recommendation that the STAR 2021/25 Highway Services Framework,
via Lot 7, should be used for the joint procurement
exercise.
The STAR framework was
favoured as it is compatible with existing documents that were
developed for the Chapel Street East Phase 1 procurement exercise
and contractors on Lot 7 have the relevant experience and technical
capabilities to undertake the work.
 
Tender evaluations
were consolidated by Salford City Council’s Procurement Team
and incorporated the following assessments:
·     
An assessment of the Quality Section by
representatives of the Engineering Team who have been involved in
the design of the project and in the preparation of the tender
documents.
·     
An assessment of the Commercial offer by the
Procurement Team; and
·     
An assessment of the Social Value offer by the
Procurement Team using the Social Value Portal.
 
Only a single compliant bid was
received with the assessment completed for this submission only
(Eric Wright Civil Engineering Ltd).
 
For
any works outside the main construction contract, the Council will
comply with the Public Contracts Regulations 2015 (PCR) and its own
Contractual Standing Orders (CSO’s).
 
Assessment of Risk:
Medium: A robust risk management process has been implemented,
commencing at project inception stage. Separate risk registers have
been produced for each scheme and will be maintained as a single
live document, reviewed periodically, and updated as
required.
 
Delays to the project could result in additional costs and more
challenging interfaces with neighbouring transport schemes. Delays
to the project start date could also impact on available funding
through the Mayor’s Challenge Fund, Growth Deal and Active
Travel Fund. If the works do not progress, then there will remain a
gap in the walking and cycling network along Chapel Street and at
the New Bailey Street junction. Strategic improvements to this
gateway location will not be realised.
 
The source of funding
is:
The total value
of the main construction contract is £3,896,590.90. The
contract is being funded through the following sources of
grant funding that have been secured, to fund the main
construction contract and other delivery costs, following the
submission of scheme business cases:
 
Mayor’s Challenge Fund (Transport for Greater
Manchester)
The
Chapel Street East Phase 1 scheme is primarily being funded through
Mayor’s Challenge Fund (MCF).  The
Business Case required to secure the funding for Chapel Street East
Phase 1 was submitted for approval in December 2021 with
approval received from the
GMCA and legal agreement confirming the £4,192,411.48 funding
allocation completed in April 2022. Subsequently, following a
change control event this value, for scheme delivery, has been
increased to the total of £4,538,150. A total of
£3,582,260.33 is to be allocated to
funding the main construction contract with the remainder of the
funding to be allocated to other delivery costs outside of the main
construction contract.

 
Growth Deal (Transport for Greater Manchester)
Following submission of a mini-business case this grant funding
was approved at the Greater Manchester Transport Growth Group
meeting on the 20th of December 2016. All costs
associated with the scheme incurred by the City Council are being
drawn down on a quarterly basis through TfGM.
From the original £1.7 million funding allocation,
£314,330.57 remains to contribute to the Phase 2
scheme.
 
Additional funding has been identified to fund the items in the
Part 2 Report. This includes funding from the Active Travel Fund,
S106 funds and funding from balance sheet reserves.
 
Legal Advice obtained:
When
commissioning contracts for the procurement of goods, services or
the execution of works, the Council must comply with the Public
Contracts Regulations 2015 (PCR) and its own Contractual Standing
Orders (CSOs), failing which a contract may be subject to legal
challenge from an aggrieved provider. CSO’s stipulate that
where a suitable framework exists, this must be used unless there
is an auditable reason not to do so.
 
The proposed procurement of the main works
contract is by way of a tender exercise in accordance with the
process set out in the STAR 2021/25 Highway Services Framework, Lot
7, which itself was procured in accordance with the PCR using an
OJEU process and will therefore ensure that the risk of challenge
to the award of any contract is minimal and that any challenge,
should it materialise, is extremely unlikely to be successful. The
forms of contract let under the framework are industry standard and
are robust, suitable, and acceptable for the Council’s
requirements.
 
The purpose of a framework agreement is to select
through a procurement / evaluation process, a number of providers
who can meet the service requirements of the Council, as and when
those services are required. If they are required then the Council
will undertake an exercise to call off the services from one or
more of the providers who have been selected to be on the framework
and this may be through any number of ways, in this instance by way
of mini competition. A contract will then be formed between the
Council and the chosen provider(s). The Council will need to have
followed the procedure set out in the framework agreement for mini
competition to ensure the procurement process is
compliant.
 
It is important that the Council complies with
the terms of the Growth Deal 2, Mayor’s Challenge Fund and
Active Travel Fund grant funding agreements with TfGM (in
particular ensuring that the fund is only used for eligible
expenditure) and any timescales around expenditure and reporting
are adhered to, otherwise the Council may be at risk of TfGM
seeking clawback of the funding for failure to
comply.
 
As the value of the contract exceeds
£1 million, approval for the award should be made be by the
City Mayor acting on the recommendation of the Procurement
Board.
 
Financial Advice
obtained:
The
record of decision outlines the details to award a contract to Eric
Wright following a mini competition. The contract is for 16 months
with 24 months after care. The contract awarded relates to two
schemes that have been combined, Chapel Street East Phase 1 and
Phase 2 of the New Bailey gateway scheme. The cost for the main
construction contract covering both schemes is expected to be
£3.897m.
 
Funding for the Chapel Street
East Phase 1 scheme includes: the Mayors Challenge Fund (MCF); an
Active Travel Fund (ATF) grant; and Local Match funding from
S106.
 
The
New Bailey Gateway scheme is the second of two phases with funding
secured through a combination of Growth Deal 2 funding from
Transport for Greater Manchester (TfGM) and local authority match
funding secured from S106 contributions. The main contract will be
funded from MCF at £3.582m and Growth deal at
£0.314m.
 
In
accordance with Growth Deal 2, Mayor’s Challenge Fund and
Active Travel Fund rules, SCC will cash flow the project and
re-claim from TfGM, via quarterly claims.
 
Procurement Advice
obtained:
The
STAR 2021/25 Highway Services Framework (Lot 7), used for the Main
Contract, is a compliant procurement route in line with the Public
Contract Regulations 2015 and SCC Standing Orders. Procurement has
supported the technical team to undertake a further competition
under this framework in line with the framework
agreement.
 
The
Council must comply with the Public Contracts Regulations 2015
(PCR) and its own Contractual Standing Orders (CSO’s) when
procuring any additional works.
 
As part of the Council’s
Innovate program and budget challenges the service group should
consider any efficiencies and contract management KPI’s as
part of this procurement activity.
 
HR Advice obtained: Not
applicable
 
Climate Change Implications
obtained:
The
schemes and the development of the Bee Network in city centre
Salford will support mode shift from private car to walking and
cycling. One of the objectives of the schemes is supporting walking
and cycling and greater public transport use. More sustainable
travel choices will help to reduce transport related
emissions.
 
As part of the quality
assessment, tenderers were asked to provide details of how the
environmental impacts will be managed and monitored on this
contract.
 
The following documents have
been used to assist the decision process:
·     
Report of the Strategic Director Place to
Procurement Board 13th July 2022: Approval to go out to competition
for New Bailey Gateway Phase 2 – Junction Of New Bailey
Street and Chapel Street; and Chapel Street East Phase1.
·     
Report of the Strategic Director Place to
Procurement Board. Approval to go out to competition for Chapel
Street East Phase 1 Mayor’s Challenge Fund scheme. 3rd March
2021.
·     
Report of the Strategic Director Place to
Procurement Board: Approval to Award the Contract for Chapel Street
East Phase 1. 14th December 2021.
·     
Report of the Strategic Director Place to
Procurement Board. Approval to go out to competition for New Bailey
Gateway Phase 2 – Junction of New Bailey Street And Chapel
Street. 11th May 2022.
 

 
Contact Officer: Simon Telford
Telephone number: 07799677214
 
Please delete from the bullets
below any which are not relevant:
·     
This matter is not subject to consideration by
another Lead Member.
·     
The appropriate Scrutiny Committee to call-in the
decision is the Growth & Prosperity
 
 

Signed:    Paul
Dennett       Dated:     6 September 2024.
           
       City
Mayor
 

FOR DEMOCRATIC SERVICES USE ONLY
 
*          
This decision was published on 6
September 2024
*          
This decision will come in force at 4.00 p.m. on 13 September 2024
unless it is called-in in
accordance with the Decision Making
Process
Rules.
 

[1] Contract start date from tender documentation.
Start date to be reviewed upon appointment

[2] Eric Wright Civil Engineering Ltd
have confirmed that all staff are paid the Real Living Wage or
higher. They are not accredited with the Living Wage Foundation but
are working towards this and anticipate becoming accredited by
2025.