Purpose

The Council has a requirement to undertake annual Asset Valuations of its Assets for Financial Reporting, in accordance with IFRS 13 and 16.  Due to capacity issues within the Strategic Asset Management Team, it is necessary to commission external valuers to undertake all valuations required as of 31 March 2026.

Decision

Decision(s): That

(1)

approval be given to proceed with a procurement process using the Fusion 21 Framework for the appointment of Avison Young through a direct award to undertake all asset valuations required as of 31 March 2026; and

(2)

the Executive Director – Regeneration Economy and Assets to be authorised to approve and sign the relevant documentation to grant the contract award

Reason(s) for the Decision(s):

The Council has a statutory requirement to undertake annual Asset Valuations of its Assets for Financial Reporting in accordance with IFRS 13 and 16. 

Avison Young were procured using the Fusion 21 Framework to assist with the asset valuation exercise as of 31 March 2025 and undertook 70 valuations.  The remainder of the valuations were undertaken by valuers within the Council’s Strategic Asset Management Team. 

Due to the successful commission in 2025, discussions have been held with the Council’s Procurement Team, and it has been agreed that the same framework can be utilised for the Asset Valuation Exercise for 2026 and that Avison Young can be procured to undertake all the asset valuations as of 31 March 2026.  However given the larger number of valuations to be procured, Cabinet Member Approval is required to authorise this.

This is a request for one year only whilst we review the future strategy for this requirement.  A further report may be required for a greater value/number of years in relation to the statutory valuations required for 2027 onwards.

The rules of this particular framework facilitate direct award and so the Council is adhering to those rules.  The use of a Compliant Framework ensures there should be no grounds for an organisation to challenge the award.

As soon as the final number of valuations is quantified, Avison Young will forward a fee proposal for the works, which includes the valuations of the freehold and long leasehold interests of the Strand Shopping Centre.  The fee proposal will also include an allowance for dealing with auditors queries post valuations.

In accordance with the Council Contract Procedure Rules, this report requests that authority be delegated to the Executive Director – Regeneration, Economy and Assets to approve the contract award.

Alternative Options Considered and Rejected

All asset valuations could be undertaken in house by the valuers within Property and Strategic Asset Management, however due to capacity issues and other priorities, this option has been dismissed