Agenda item

Report of the Portfolio Holder for Highways, Transport and Cleansing Services

Councillor Adele Williams declared an Other Registerable Interest in this item because she is a member of Thomas Bow City Asphalt’s Board of Directors. She left the meeting prior to discussion and voting on this item.

Chris Keane, Head of Highway Services, introduced the report which on the award of a contract to carry out essential planned road maintenance, specialist road-surfacing works on the Broadmarch scheme, and delvery of the Green Lane highway scheme.

Resolved to approve dispensation (in accordance with Financial Regulation 3.29) from the need to conduct a tender process in accordance with Contract Procedure Rule 4.1.2, to award a contract to Thomas Bow Limited to carry out planned maintenance and highway construction works around Nottingham with a total estimated value of £1.65m.

Reasons for recommendations:

·  Thomas Bow currently delivers works under a number of contracts awarded by NCC that have been tested competitively in the market, and pricing will be subject to the scrutiny of the Council's professional team, including its competent Engineers. This includes both works completed for Highways and the Major Programmes Team.

·  Ensuring value for money (VfM) is a key part to delivering these works.

·  Given the tight timescales for this published programme and delays resulting from COVID, letting a contract through a ‘mini competition’ would jeopardise this year’s programme for construction works and the available allocated road space.

·  By direct awarding to Thomas Bow the City would de-risk through single programme delivery and would reduce officer time and minimise scheme costs.

·  Working with TB to deliver these works would give the following benefits:

o  Established early contractor involvement (ECI) streamlining project delivery for NCC.

o  Programme delivery approach on all schemes will greatly assist NCC with managing the highway network in 2021/22, minimising disruption, together with reducing administration costs.

o  A developed flexible and responsive delivery structure to accommodate short term changes to programmes. Established service delivery for NCC and positive working relationship with NCC and clients - local knowledge on road infrastructure and planning works for NCC.

o  Established positive collaboration between the Highways Service and Thomas Bow on the Broadmarsh Roadspace/Public Realm Schemes.

o  Supports delivering environmentally sustainable solutions for delivering highways maintenance and construction across Nottingham City & reducing carbon emissions.

o  Reduced whole life carbon cost of the asset by utilising local contractor provision

o  Strong links to our corporate value and objectives.

o  Keeping the pound in Nottingham.

·  Using an NEC 3 target cost approach, will enable Highway Services to ensure value for money in the coordination and planning of these essential highway works which will be delivered as an annual programme of works. The alternative, appointing under individual projects will not achieve the benefits in terms of better coordination on available road space, right timing of works, minimisation of costs in terms of; road notices/charges and uplifts.

·  By engaging Thomas Bow in a Target Cost Contract, Highway Services would ensure value for money as detailed below; a target cost contract is a type of cost reimbursable contract under which the contractor is paid the 'actual cost' (usually defined in the particular contract) it incurs in carrying out the works, but subject to a target cost which is agreed by the parties at the beginning of the project. This provides transparency and better control of costs for NCC.

·  By producing a bill of quantities, before engaging the contractor we can ensure that the target cost is a realistic target cost and allows for a 'pain and gain' approach with the contractor ensuring both parties are incentivised to seek efficiencies. This will drive TB to deliver works at least cost for NCC.

·  Open book costing will ensure that the NCC engineer/contract manager can assess the costs elements and ensure that only works carried out are invoiced for by working with one contractor for all of these works will ensure continued high quality of works and materials. This will greatly assist with transparency on each of the schemes forming part of a larger delivery programme together with reduced staffing costs for NCC.

·  Through sourcing a package of works we will achieve better value for money, rather than individual schemes and allows for monitoring of social value opportunities and to foster better working relationships. Thomas Bow have previously been engaged on delivering highway surfacing & construction works and are in a unique position to deliver this programme as both a local contractor and an NCC wholly owned company.

Other options considered in making recommendations:

·  Procure works through existing framework arrangements – it is likely that there would be increased project initiation costs and it would not enable the full benefits of ECI. Our current framework has limited direct award options and it should be noted under future proposed arrangements there will be an ability to direct award to the No1 ranking suppliers, this will not be in place until April 2022 at the earliest.

·  Do nothing- projects will not be delivered in line with funding requirements. There are standing risks in relation to 1/3rd party claims and essential highway works not completed in year.