Purpose

Tendring District Council received a
£1.2 million Salix grant, plus £165,000 from the
Council, to replace Clacton Leisure Centre's oil boiler with
sustainable technology. Due to grant deadlines and boiler risks, an
urgent consultant appointment was needed. A procurement exemption
allowed immediate appointment of Heaton Design and Engineering Ltd,
already familiar with the project; this was published on
15/07/2025. The current officer decision is simply to formalise
contracts with Heatons Design Engineering Ltd.
https://tdc-mgov-prd-01.tendringdc.gov.uk/ieDecisionDetails.aspx?id=13722

Content

Tto enter into a contract with Heatons Design
Engineering Ltd (HDE) following their submission of a comprehensive
and competitive consultant proposal that aligns with the
requirements of the Public Sector Decarbonisation Scheme (PSDS).
The scope of services to be provided includes:
Comprehensive mechanical and electrical (M
Structural assessments for Solar PV and ASHP installations;
Ground Penetrating Radar (GPRS) and noise surveys;
Asbestos R
Project support, including tender assistance, site duties, CDM
Principal Designer responsibilities, and contract
administration;
DNO applications and coordination with suppliers and
specialists.
The proposed fee is £102,800.00 (exclusive of VAT), which
encompasses design, engineering, and project delivery, in addition
to terms covering supplementary services, payment schedules, and
insurance liability up to £5 million.
The total contract value is up to £113,080.00, inclusive of a
10% contingency allowance.
This officer decision follows an initial exemption agreement
published on 15/07/2025, available at:
https://tdc-mgov-prd-01.tendringdc.gov.uk/ieDecisionDetails.aspx?id=13722

Alternative options considered

Under the initial procurement measures,
different options were considered and have been detailed below for
ease. However, as the decision has been taken to proceed with
Heatons, this officer decision is to formally enter into
contract:
1.Mini Competition via Framework (e.g. NEPRO3)
While this route allows for a direct appointment under call-off
terms, it still requires a competitive tender process within the
framework, including contractor selection and a minimum two-week
tender window. Previous experience with NEPRO3 has highlighted
delays in contract issuing and administrative inefficiencies.
Additionally, this route would incur a 7.5% surcharge
(£7,710), reducing value for money and increasing project
costs. The estimated timeline of 8–10 weeks poses a
significant risk to meeting Salix funding deadlines.
2.Design and Build Framework (e.g. ECF3)
This option offers integrated delivery and potential efficiencies
but introduces risks around impartiality in design validation and
contractor self-certification. The process would take up to three
months and may not attract sufficient market interest within the
required timeframe. While compliant, this route does not align with
the timeline of the project. Additionally, an informal Expression
of Interest (EOI) was completed, resulting in one contractor
showing interest, two requesting a specification, and one declining
interest, which presents a risk.
3.Phased Procurement Below RFQ Threshold
Splitting the consultancy scope into phases under the £50K
threshold risks breaching procurement regulations due to perceived
disaggregation. This approach also risks non-compliance with Salix
grant conditions and could result in clawback of funding. It is not
considered a viable or compliant option.
4.Do Not Proceed
Abandoning the project would result in the loss of the £1.2
million Salix grant and leave Clacton Leisure Centre reliant on a
single, end-of-life oil boiler. This would expose the Council to
significant financial risk, service disruption, and reputational
damage. The full cost of system replacement would fall to the
Council, with no external funding support.