Decision Maker: Executive Member for Transformation & Finance
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
To seek approval to novate the works
That the novation of the works contract for the redevelopment of the Council’s depot site to Brymor Group Southern Limited be approved.
NB: An urgent decision was required to avoid incurring additional costs due to the impact of inflation.
For continuity of the project and to retain the knowledge and the technical design, of the Brymor Construction Ltd team, which have now been transferred to Brymor Group Southern Ltd.
To continue with the development of the new Depot facility, which will free up a third of the site, for possible development under the Bracknell Forest Cambium Partnership.
Consideration has been given to going back out to the market, to re-tender and procure a new contractor. This could increase construction costs by an estimated circa £1.2m - £1.3m and would extend the contract completion to the programme circa 6-9 months.
Retendering would require paying for the technical design again and a validation check would be required on the works previously undertaken to date by Brymor Construction Ltd.
The option of negotiating with the second or third contractor from the original tender submissions had been dismissed. The second contractor no-longer had the financial standing to handle this contract size. The third contractor was no longer able to honour their tender submission, due to cost inflation. Therefore, applying the general percentage cost inflation, the construction industry has experienced over the time from the point of tender award would see this figure in excess of the sum that could be negotiated with the preferred contractor.
Reason Key: Expenditure > £400,000;
Wards Affected: Wildridings & Central;
Financial Impact: Contained within the report
Subject to Urgent Proceedings: Yes - to avoid incurring additional costs.
Making Representations: In writing to Executive Director: Delivery
Other reasons / organisations consulted
Executive Director: Finance
Contact: Kamay Toor, Assistant Director: Property Email: email@example.com Tel: 01344 355183.
Publication date: 16/09/2022
Date of decision: 16/09/2022
Effective from: 28/09/2022