Issue - meetings

To consider the attached report (CHB-002-2020/21).

(1)             That, Indecon Building Limited be awarded the contract to undertake the construction of 7 properties, (contract 1) in the sum of £2,160,015 together with the proposed construction period of 52 weeks; and

(2)             That, Indecon Building Limited be awarded the contract to undertake the construction of 11 properties, (contract 2) in the sum of £4,234,504 together with the proposed construction period of 52 weeks.

Deborah Fenton, Service Manager, Housing Management and Home Ownership, presented a report to the Cabinet Committee, she advised that the Council’s Procurement Rules required a Cabinet decision when awarding contracts in excess of £1m.  However, the Cabinet had delegated authority to the Council Housebuilding Cabinet Committee to agree all tenders associated with the Council’s house-building programme as set out in its Terms of Reference. Authorisation to enter into a Build Contract was required to enable a start on site to be made and for these properties to be delivered.

Therefore the decision to award contract 1 to Indecon Building Limited to undertake the construction of 7 properties, for a sum of £2,160.15 together with the proposed construction of 52 weeks and to award contract 2 to Indecon Building Limited to undertake the construction of 11 properties, for a sum of £4,234,504 together with the proposed construction of 52 weeks be agreed by the Cabinet Committee.

Councillor J Philip asked why had the Council only gone out to tender to two companies.

John Cosgrave, Interim Housing Development Manager stated that four companies were on the framework agreement and they were approached to tender for these contracts but two declined to tender.

Councillor J Philip asked how the assumption of 52 weeks to complete the development arrived at.

John Cosgrave replied that was more than a reasonable assumption of time to complete these developments.

Decision:

(1)             That, Indecon Building Limited be awarded the contract to undertake the construction of 7 properties, (contract 1) in the sum of £2,160,015 together with the proposed construction period of 52 weeks; and

(2)             That, Indecon Building Limited be awarded the contract to undertake the construction of 11 properties, (contract 2) in the sum of £4,234,504 together with the proposed construction period of 52 weeks.

Reasons for the Decision:

The Council’s Procurement Rules requires a Cabinet decision when awarding contracts in excel of £1m. However, the Cabinet have delegated authority to the Council Housebuilding Cabinet Committee to agree all Tenders associated with the Council’s house-building programme as set out in its Terms of Reference. Authorisation to enter into a Build Contract is required to enable a start on site to be made and for these properties to be delivered.

Other Options Considered and Rejected:

To award the contracts to any other contractor that has tendered for the works.