Decision details

In June 2022, Council approved revised Key Decision Financial Thresholds in the Constitution. Prior to the updated decision thresholds, delegated authority was sought from Cabinet to allow for the timely procurement of SMBC Towns Fund projects to ensure the successful delivery of the Towns Fund Programme within timescale and budget.

At its meeting of 18 May 2022, SMBC Cabinet authorised: -

The Director of Regeneration and Growth, in consultation with the S151 Officer, Director of Law and Governance and Monitoring Officer and the Cabinet Member for Regeneration & Growth to commence, where required, procurement exercises and award contracts and call off orders above £xxx for all SMBC Towns Fund Projects until March 2026.

That the Director of Law and Governance and Monitoring Officer be authorised to enter and execute, under seal as might be required, any contracts or ancillary documentation in relation to the award of contracts referred to in Resolution (1) above;

That any necessary exemption be made to the Council’s Procurement and Contract Procedure Rules to enable the course of action referred to in Resolution (1) and (2) above to proceed.

Delegated authority agreed by Cabinet in May 2022 remains effective following the revised Procurement thresholds.

That approval be given to:

(1) Instruct scaffolding works to be brought forward from the construction phase into the preconstruction phase. The cost of the scaffolding is £xxx and is to be added to the pre-construction cost for the Town Hall Quarter Project of £xxx. The total cost of the pre-construction phase will therefore increase to £xxx.

(2) Morgan Sindall Construction & Infrastructure Ltd have previously entered into a Pre-Construction Service Agreement (PSCA) of £xxx on the 01 November 2022 following the Project being advertised via the Construction West Midlands Framework.

Since entering the pre-construction phase, there has been regular meetings between the SMBC Design Team, Project Lead and Morgan Sindall Construction and Infrastructure Ltd.

Following completion of internal and external surveys to West Bromwich Town Hall and Central Library, the contractor has advised that they are unable to access higher elevations to various parts of the Town Hall building and Central Library.

In order that a fixed price contract can be agreed for completion of restoration works for this project, it is essential that accurate costings can be agreed at this stage to reduce the likelihood of variation orders and increased costs being requested by the contractor during the on-site phase of restoration works.

By instructing the scaffolding under the PCSA, the contractor can carry out further surveys and produce robust market tested Stage 4 costs with minimal Provisional Sums / Contingencies / Risk.

The scaffolding costs have been fully market tested in accordance with the CWM framework and confirmed value for money by SMBC Quantity Surveyor. There are two elements to the costs:

• Main Contractor’s Preliminaries: these are as per the CWM Framework tendered rates.

• Scaffolding: these are fully market tested and we are utilising the lowest submitted costs.

Procurement team have been consulted and have no objection in proceeding with this approach. The Pre-Construction Service Agreement (PCSA) allows for an increase in contract for further works to be undertaken.

This report seeks approval from the Director of Regeneration & Growth and the Director of Finance to increase the value of the pre-construction costs to Morgan Sindall Construction and Infrastructure Ltd from £xxx to £xxx.

Further works will continue throughout this stage to review and agree the final cost schedule. It is anticipated that the costs will reduce from £xxx as well as including a contingency of up to £xxx.

Following completion of the pre-construction design works and value engineering, further approval will be sought via delegated authority prior to entering into contract for the construction works for this project.

Proceeding without the scaffolding works at this stage will mean that the contractor will need to include in the final cost plan, a number of significant Provisional Sums (e.g. roof coverings, leadwork, rainwater goods and all windows at higher level elevations.). This option will reduce the cost certainty and increase the risk of budget overspend over the duration of the project.