Agenda item

This report seeks urgent approval to award the West Hall Rewire contract, issue a Letter of Intent above the standard allowable thresholds, and to waiver the relevant contract standing orders.

Emma Dagnes, Deputy CEO, set out the reasons for the urgent meeting seeking:

-           approval of the award of the West Hall Rewiring LED Lights Installation contract to Bidder;

-           approval to waiver of Contract Standing Order (CSO) 9.01.1 (requirement to advertise contracts above £500,000) and CSO 9.07.3 (letter of intent provision);

-           authorisation for the Chief Executive of Alexandra Park and Palace Charitable Trust (APPCT), to issue a Letter of Intent to the contractor to allow for orders to be placed by Tuesday 8th June and works to commence immediately prior to contract finalisation and sealing;

-           delegation of authority to the Chief Executive to agree the final terms and conclude arrangements to award the contract. 

In response to questions from Panel members, the following information was provided:

-       The   additional specifications added in at the design stage would be protected as much as possible. There was room in the design specification for some value engineering to reduce the final cost of the work.

-       The Trust’s Insurers had been notified and the DCEO would work with our brokers to ensure all policies were in place.

The Fire Alarm Detection system was being installed by APPCT’s incumbent provider. This work would be conducted alongside the West Hall re-wiring project. The fire alarm works had been carefully risk assessed in accordance with fire safety procedures and the fire-watch management system. It was further clarified that, throughout the rewiring and fire alarm works, the current fire alarm system would be in place ensuring that at no point the fire alarm would not be operative.

-           The target date for completion of the rewiring works was the 3^rd of September to ensure the Palace was able to hold large scale events from mid-September. A short contingency time period had been factored but there was a clear understanding of completion dates for the works. It was further explained that the rewiring works could not be procured any sooner as the capital funding had only been agreed on the 28^th of May by the Council, through a Leader’s key decision.

-           The chosen contractor had experience of working in heritage buildings and the works would also include recalibrating physical access to the lighting plant so that in future access was not an issue for resolving any faults.  The installed lighting would also be energy efficient saving   money   for the Palace.

-           The contractor would be paid according to reaching set milestones and the Council’s procurement were satisfied that the appropriate procurement process was being followed.

-           The new upgrades to lighting would help improve the resilience of the Palace buildings, supporting holding events and income for the Palace.

-           It was good practice to agree the letter of intent at this early stage to ensure that the contract was completed as soon as possible.

-           Procurement were satisfied that this was a straightforward JCT contract.

The Panel were satisfied that the rewiring works were necessary and although the decision had become urgent - this project was identified on the long list of AP projects but funding had not been identified - the recent failure of the lights in the West Hall had  brought forward this forward.

Following consideration of the exempt information,

RESOLVED

1.    To approve the award of the West Hall Rewiring contract to Bidder 1 up to a contract sum of £789,551.40 (excluding VAT).

2.    To approve the waiver of Contract Standing Order (CSO) 9.01.1 (requirement to advertise contracts above £500,000).

3.    To approve the waiver of CSO 9.07.3 (letter of intent provision) under CSO 10.01.1 and authorise the Chief Executive of Alexandra Park and Palace Charitable Trust (APPCT), to issue a Letter of Intent to the contractor for a value of £490,000 (excluding VAT); to allow for orders to be placed by Tuesday 8^th June and works to commence immediately prior to contract finalisation and sealing.

4.    To delegate authority to the Chief Executive to agree the final terms and conclude arrangements to award the contract.