ITEM 7 – URGENT BUSINESS
BOROUGH OF POOLE
CABINET
5 June 2007
Toilet refurbishment – works contract
PART OF PUBLISHED FORWARD PLAN: No
1.Purpose of Report
1.1To gain member approval to instruct contractors to carryout additional building works to enable the Public Convenience refurbishment programme to proceed, and limit the financial risk to the authority.
2.Decision Required
2.1That members grant the Head of Environmental and Consumer Protection Services urgent exemption from Standing Orders and instruct him to authorise the appointment of contractors to carry out the necessary building works to enable the remainder of the project to be completed as soon as possible.
3.Background information
3.1In 2006 following an open tender process Bradco Sissions, specialist manufactures of custom made prefabricated toilet units were awarded a contract to replace four of the boroughs existing toilet facilities. Bradco via sub contractors were also engaged to undertake the project construction including any remediation work identified as a result of the demolition and exposure of potentially corrupt infrastructure at an additional cost to be negotiated with the Borough of Poole.
3.2In December 2006 Chapel Lane toilets under the Project Management of Property Services were successfully demolished and replaced by one of the Bradco units. Little or no additional building works were required.
3.3A significant delay to the instillation to the remaining three toilets has arisen because of a need to modify original infrastructure designs requiring additional building works at 2 of the remaining 3 toilets. These alterations were not identified at project conception stage and therefore were not in the original project plan.
3.4The delays in agreeing the required alteration and the allocation of costs has resulted in a breakdown in Bradco Sissions local building works contractor withdrawing their services from the project.
3.5The three remaining units are already complete and have been being stored outside at their Chesterfield depot since January 2007 awaiting installation.
3.6Agreement has now been reached concerning the alteration to infrastructure design to allow the installation of the three remaining toilets. The costs of this work has also been renegotiated and equates to £24,000 additional cost against the original project costs.
3.7Bradco reported in April the likelihood of a further lengthy delay to the conclusion of the project if they are required to source and appoint contractors locally to carryout the infrastructure work. As a result of discussions between officers of ECPS and Property Services it was agreed that three competitive quotes for the work be sourced by Property Services which would allow for the borough to carryout the work independently of Bradco and result in a quicker resolution to the project. The lowest quote for the total building works is £59,000. This includes the tendered building costs allocated to Bradco and the additional costs identified during the project.
4.Reason for Urgency
4.1On Monday 4th June the Chief Auditor advised that Standing Orders would require the tender of the building works contract because the total sum exceeds £25,000. A tendering process will further delay the installation of the toilets. A delay carries a higher risk than gaining an exception to standing orders and progressing to installation immediately.
4.2The contractual agreement between the Borough of Poole and Bradco Sissions obligates the authority to release proportional payment for each toilet unit upon competition of its manufacture with the remaining proportion to be released upon instillation. Currently £180,000 has been paid to Bradco for the facilities which remain at their site.
4.3The additional public expenditure on that building contract is only £24,000. The balance being paid by Bradco, in line with their tendered price. To date we have paid Bradco £280,820 of a total tendered price of £316,516. The balance being £35,696. Security for this balance is in place.
4.4There exists a substantial financial risk to this authority to continue to leave the three completed paid for units in Chesterfield until such time as Bradco can appoint a new builder to carryout the required works to allow installation. There is additional reputational risk by delaying the project further.
Shaun Robson
Head of Environmental and Consumer Protection Services
Contact Officer:Ian Poultney
Telephone No:01202 261761
Date: 05 JUNE 2007