Decision details

The Committee received a detailed exempt report on the proposed award of the Leisure Centre construction contractor contract.

The Committee noted that a Public Contracts Regulations (PCR) 2015 compliant tender process had been undertaken inviting bids on a Joint Contracts Tribunal (JCT) two stage Design and Build basis. This process had concluded, and a preferred contractor had been identified.

In response to members’ questions, the Property Development Advisor informed the Committee that there was a current market risk of materials inflation that could increase costs on completion of the first stage of the Pre-Construction Services Agreement (PCSA). However there was a 2% inflation allowance in the budget approved by Full Council in October 2020 to mitigate potential impacts. He further advised that a lot of the design detail had been completed so there were limited gaps where costs could increase.

In response to further questions the Property Development Advisor confirmed that this would be the first ‘wet and dry’ Passivhaus Leisure Centre in the UK but that Passivhaus was not new and was common in Europe. 

The Chairman asked the Property Development Advisor about the preferred bidder’s previous successes. The Property Development Advisor confirmed that the bidder had experienced some issues competing their first Passivhaus project but had learnt from that and completed two subsequent projects successfully. He confirmed that he was confident that the preferred bidder understood the process.

A member expressed concern that bidders were asked to provide social value details as part of the tender process but acknowledged that this was a requirement of the procurement regulations.

Resolved to:

1.    approve the award of a Pre-Construction Services Agreement (PCSA) to the preferred bidder identified in the report as the main contractor for the construction of the proposed new leisure centre;

2.    recommend to Council the approval of the expenditure for this appointment.