Decision Maker: Cabinet Procurement and Insourcing Committee

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: December 1, 2025

Purpose: Enabling Works Design and Build contract award and Main Works Design and Build contract award for the Kings Hall Leisure Centre Refurbishment Project

Content: RESOLVED:   That, subject to approval by Cabinet of the revised project budget on 24 November 2025, Cabinet Procurement and Insourcing Committee (CPIC) is recommended to:   1.  Note the completion of Stage 2 of a 2-stage procurement in relation to the selection of a Design and Build contractor for Kings Hall Leisure Centre Refurbishment Project. 2.  Approve the award of a JCT Design and Build Enabling Works contract to Morgan Sindall for a maximum Contract Sum of £1,877,048.99 exclusive of VAT. 3.  Approve the award of a JCT Design and Build Main Works contract to Morgan Sindall for a maximum Contract Sum of £70,939,423 exclusive of VAT. 4.  Authorise the Director of Legal, Democratic and Electoral Services to agree and enter into all necessary legal and ancillary documentation relating to the Design and Build contracts for Kings Hall Leisure Centre Refurbishment Project, including all necessary consents required to enable the works.    Reasons For Decision    CPIC endorsed the business case to commence the first stage of a two stage procurement process for a design and build contractor for the Kings Hall Leisure Centre refurbishment project on 4 September 2023 (FRC S244).   Morgan Sindall Construction and Infrastructure Limited were then awarded a Pre-Construction Services Agreement following the completion of this stage 1 procurement, as set out in a delegated powers report approved by the Group Director, Finance (Kings Hall Leisure Centre (KHLC) Refurbishment Project: Pre Construction Services (PCSA) Contract Award dated 22 January 2024).   The Council has been working with Morgan Sindall Construction and Infrastructure Limited under that PCSA award, to complete the second stage of the procurement process. This has involved the development of designs for planning and market tender purposes.The project has now secured Full Planning and Listed Building Consent, and a guaranteed maximum price for the contract has been submitted and agreed with the Council’s professional team. This report sets out the process which has been undertaken, in line with the protocols set out in the Southern Construction Framework, and recommends concluding this procurement exercise through the award of two contracts.   In order to proceed in the most efficient manner on site (mitigating cost risk to the council), it is being recommended to enter into an Enabling Works contract for the removal of asbestos in the existing building, while the Main Works contract proceeds to contract execution. This allows the early mobilisation and commencement of these works, which are required to progress in part before the main works can commence. This report sets out the commercial position relating to these contracts, and confirms that these will be subsumed into the overall contract sum and risk profile of the main contract.   Alternative Options Considered and Rejected   The options open to the Council at this point of the procurement which were considered and rejected are as follows:   1. Seek an alternative contractor to deliver the works. In a two stage procurement, the procuring Authority works with a PCSA contractor to develop, tender, and secure a price to deliver the works. On the basis that this has been carried out on this procurement, and that the professional team have been satisfied with the procurement protocols, and recommended a Contract Sum, then the current contractor is appointable. This is subject to the Contract Sum being within the affordability envelope set out and approved by Cabinet.   2.  Do not enter into an Enabling Works prior to entering into the Main Contract. In this scenario, the Council would not enter into an Enabling Works contract and would instead wait and include the asbestos removal works in the main contract. As a signed contract is required in order to formally mobilise to start the works, this option would delay a start on site. This delay would incur inflation and prolongation costs, which are currently held by the supply chain in line with the current programme assumptions. A concurrent CPIC contract award for the Enabling Works and the Main Works gives certainty and sufficient cover to commence the mobilisation and commencement of the Enabling Works. These Works are required to be progressed by circa 4 weeks before the Main Works can commence.