Issue - meetings

Selection of the lift sub-contractor was made following a competitive procurement exercise – to ensure best value.

When the works commenced on site, it was advised that, in order to ensure Health & Safety (H&S) best practice, the lift contractor should be nominated to the main contract – to ensure one point of H&S responsibility. As a result, it is now necessary to vary the main contract sum by the agreed amount in order to pay the sub-contractor.

The works will be finished by 16 December 2022; payment is required by this date and approval is required to increase the Purchase Order (PO). If payment is not made by this time, the payment terms will not be met.

Given the above, it is not practicable to comply with the 28-day notice requirement in Part Four, Section D, Rule 13 of the constitution. This is set out in Part Four, Section D, Rule 16, of the Constitution.

The Cabinet Member for Council Housebuilding, Placemaking, and Development considered the report which noted that, following the appointment of Alcema Ltd in April 2022 to undertake the refurbishment of 48 Station Road and Alexandra House, it was proposed to vary their contract to include for the refurbishment and upgrade of the three passenger lifts in Alexandra House, Station Road, Wood Green, London, N22 7TR, through novating Apex Lift & Escalators Engineers Ltd.

The Cabinet Member RESOLVED

Pursuant to Contract Standing Orders 16.02 and 10.02.1(a), to approve a novation of contract to Alcema Ltd for the sum of £247,957 + VAT to undertake refurbishment and upgrade works to the three passenger lifts at Alexandra House, Station Road, Wood Green, London, N22 7TR. This would increase the budget from £4,031,847 to £4,279,804.

Reasons for decision

The Council engaged a Lift Engineering consultant (Reliable Lifts Ltd) – who have previously carried out remedial works on the installation – to produce an independent specification for the works required to be undertaken on the lifts in Alexandra House.

This specification was quality checked by the Council’s in-house lift engineering expert in the Corporate Landlord team – to ensure that it met our requirements for the proposed refurbishment.

The opportunity was then posted on the South-East Consortium Framework which allowed a direct award.

The first contractor noted on the SEC Framework was Apex Lift & Escalator Engineers Limited. Following review of the documentation, they returned a price which was compliant with the agreed baseline specification, and in compliance with procurement legislation and the Council’s Contract Standing Orders. This was reviewed and subsequently supported by the Strategic Procurement team and appointed in February 2022.

Following discussions with the Council’s CDM (Construction, Design & Management) advisor, it was agreed that – as the main contract refurbishment works would be taking place at the same time – the most suitable way of appointing Apex Lifts Ltd, would be novate them to Alcema Ltd. By doing this, there remains one point of responsibility in relation to Health & Safety under the CDM regulations relating to compliance on site.

The proposed cost to deliver the project has been reviewed for technical compliance and reflects the specification of the council’s requirements.

The original cost included within the tender price was £229,240 + VAT. Following investigations and a detailed survey on site, a further £18,717 + VAT of work was identified as required in addition to the works outlined in the original brief prepared by the council. This was to install additional counterbalance weights, replacement floor indicators and new SIM cards to bring the lifts to current required safety standards. The total of these works is £247,957 + VAT (the total amount requested).

Alternative options considered

The alternative would be for the Council not to vary Alcema Ltd’s contract to commission Apex Lift & Escalator Engineers Limited to undertake the refurbishment and upgrade works which would place at risk the operation of the building – given the current condition of the lifts.

If the Council appointed Apex directly  ...  view the full minutes text for item 4