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Waverley Borough Council Committee System - Committee Document

Meeting of the Council held on 18/02/2003
ANNEXE 3 - ANNEXE REPORT OF EXECUTIVE 4TH FEBRUARY 2003 - CONTRACT PROCEDURE RULES




ANNEXE 3

Contract Procedure Rules

Summary of main changes from current Standing orders with Respect to Contracts

SubjectCurrent RequirementsNew Requirements
Tendering/quotations financial limitsQuotations up to 35,000; minimum of 3 or more depending on value of contract if above 500

Tenders over 35,000

Alternative quotations above 3,500; less formal and speedier process for obtaining quotations – 2 quotations up to 10,000, 3 up to 50,000.

Tenders over 50,000 – 3 up to 100,000, 4 over 100,000.

Tenders and quotations can be substituted in individual cases if appropriate.

Form of contractUnder seal over 35,000

Official orders under 35,000

Contract under seal if over 100,000. Not under seal below 100,000 unless Head of Legal Services advises to contrary.

Official order under 50,000 unless nature of contract warrants formal or full contract.

Transfer of staffNot coveredHead of Personnel and Central Services to be involved and Executive to approve award of contract
Disposal of propertyNot coveredLand and buildings referred to Asset Management Group, or Director of Housing and then to Executive.

Other property to be sold for best price in most appropriate manner with the approval of chief officer and Director of Finance.

SubjectCurrent RequirementsNew Requirements
Assessment of contractorsNot coveredFull assessment of a number of matters including financial status and technical ability in respect of contracts over 50,000 unless nature of a lesser value contract warrants less rigorous assessment.
Method of tenderingUse of ad-hoc list, standing list or open tendering.

Subject to EC requirements

Open tendering, selective/restricted tendering or standing lists.

Subject to EC requirements

Custody and opening of tenders/quotationsCustody of chief officer, opening by relevant chief officer and Chief Executive if under 35,000

Custody of Chief Executive, opening by relevant chief officer, Chief Executive and a Member if over 35,000

Custody of quotations sought in writing by chief officer if under 50,000; custody of quotations sought in writing if over 50,000 plus all tenders by Chief Executive

Opening of quotations up to 50,000 by chief officer’s staff (minimum of 2 persons). Chief officer to ensure record maintained.

Opening of quotations sought in writing and all tenders for contracts over 50,000 and up to 100,000 by Chief Executive, chief officer (or representatives); Director of Finance to be invited (or representative). Chief Executive to ensure record is maintained.

Opening of quotations sought in writing over 100,000 and all tenders by Chief Executive, Director of Finance and chief officer (or representatives). Chief Executive to ensure record is maintained.

Errors in tenders/quotationsNot coveredNew procedure set out

SubjectCurrent RequirementsNew Requirements
Evaluation of tenders/quotationsPresumption towards the cheapest (where payment is made by the Council) or highest (where payment is received by the Council)Cheapest/highest accepted unless Best Value solution required. Best Value solution to be assessed using predetermined and approved criteria; then cheapest solution once assessment against criteria has reached minimum requirements.
Post tender negotiationsNot coveredPermitted in limited circumstances; procedure set out
Security to be provided by contractorBonds required if contract over 35,000Bond required if contract over 100,000; Director of Finance’s approval to be obtained if bond considered not necessary. Bond to be obtained for lower value contracts if appropriate. Decision requires assessment of risks to be undertaken.
Management of contracts and best practiceNot coveredSuitable arrangements to be put in place; Council’s Procurement Manual to be referred to for guidance
WaiversApproval of Chief Executive and relevant member requiredApproval of Chief Executive; if contract is to be let by Chief Executive, approval of Chairman of Executive to be obtained











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Financial Regulations

Summary of main changes from current Financial Regulations

SubjectCurrent RequirementsNew Requirements
Financial Management StandardsNo specific referenceNew section to highlight responsibilities for high standards of probity in dealing with financial issues
Managing ExpenditureLimited Guidance on procedure for transferring budgets between budget heads ‘virements’

Virement up to 10,000 require approval of Executive

Virements over 10,000 require approval of Council

More robust rules around virement procedure and clearer limits for value of virements as shown below:

<100 same service – Budget manager notify Director of Finance (DoF)

100 to 1,000 same service – Chief officer/DoF

1,001 to 5,000 same service – Management Board

< 5,000 between services or capital/revenue - Management Board

5,001 to 50,000 – Executive approval

5,001 to 50,000 between services or capital/revenue – Executive approval

Over 50,000 – Full Council

Managing ExpenditureLimited Guidance on procedure for carrying forward budget provision between years, no limits specified.Overspending above 1,000 on individual budget will be first call on that budget in the following year.

Planned carry forward amounts require the approval of the Director of Finance if below 5,000 and the Executive if above 5,000.

SubjectCurrent RequirementsNew Requirements
Performance PlansNo specific mentionHighlights the chief officers’ responsibilities in relation to the production and monitoring of performance against plans including PIs.
Budgets and medium-term planningSets out requirements of officers in relation to setting the annual budgetNew requirements to prepare budget consistent with the Medium-Term Financial Strategy

To integrate budget setting into service planning

Capital ProgrammesSets out requirements of officers in relation to setting the capital programmeNew requirements to prepare budgets in accordance with Waverley’s Capital Strategy.

To ensure compliance with Waverley’s Procurement Strategy and Contract Procedure Rules

Risk ManagementRequirement to notify Director of Finance of all new risksNew requirement for officers to take responsibility for managing risks in their service areas
Preventing Fraud and CorruptionNo specific mentionRequirement for the Director of Finance to develop and maintain an anti-fraud and corruption policy and report any suspected irregularities to the Executive if appropriate
Treasury ManagementDetailed guidance which requires updatingEnsure compliance with Waverley’s Policy Statement
Systems and ProceduresVarious references to financial systemsNew section setting out requirements on officers to ensure sound systems and procedures are in place including accounting records and the use of IT.
Debtor Write-offsUp to 2,000 - Director of Finance

2,000 to 5,000 – Director of Finance and Chief Executive

Over 5,000 - Executive

Less than 25 – Service manager with Internal Audit

25 to 3,000 – Director of Finance (DoF)

Greater than 3,000 up to 5,000 DoF and Chief Executive

Over 5,000 – Executive approval

SubjectCurrent RequirementsNew Requirements
Ordering GoodsDetailed guidance which requires updatingNew requirement to ensure that spending officers have regard to the Procurement Strategy and Contract Procedure Rules and endeavour to obtain best value in all purchases
PartnershipsNo Specific MentionNew requirement on officers to ensure that partnership arrangements support corporate objectives and to assess risk and resource issues
External FundingNo Specific MentionNew requirement to ensure that the requirements of the matched funding and sponsored organisation schemes are considered


comms/council/2002-03/066