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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 13/11/2001
HOUSING REVENUE ACCOUNT - PLANNED MAINTENANCE 2001-2002 ELECTRICAL REWIRING CONTRACT



The purpose of this report is to seek Committee approval to accept a tender for the electrical rewiring contract that forms part of the Housing Revenue Account approved Planned Maintenance Programme for 2001–2002. The tender exceeds the approved budget by more than 10%.

There are resource implications contained within this report.
APPENDIX J

WAVERLEY BOROUGH COUNCIL
EXECUTIVE COMMITTEE – 13TH NOVEMBER 2001



Title:
HOUSING REVENUE ACCOUNT
PLANNED MAINTENANCE 2001 - 2002
ELECTRICAL REWIRING CONTRACT

[Wards Affected: N/A]


Note pursuant to Section 100B(5) of the Local Government Act 1972

The (Exempt) Annexe to this report contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates as specified in Paragraphs 8 and 9 of Part 1 of Schedule 12A to the Local Government Act 1972, viz:-



Summary and Purpose

The purpose of this report is to seek Committee approval to accept a tender for the electrical rewiring contract that forms part of the Housing Revenue Account approved Planned Maintenance Programme for 2001–2002. The tender exceeds the approved budget by more than 10%.

There are resource implications contained within this report.



Introduction and Background

1. Earlier this year tenders were sought for the programme of electrical rewiring to the housing stock that formed part of the approved Housing Revenue Account Planned Maintenance Programme for 2001-2002. The results of the tendering exercise are listed in (Exempt) Annexe 1 to this report. Contractors tendering for this work were selected from the approved Standing List of Contractors in the approved manner. Each contractor confirmed their willingness to tender for the work.


2. Following tender analysis a contractor was confirmed as submitting the best tender which was also the lowest. Contract documentation was forwarded to the Council’s legal department for the preparation of the formal contract.

3. On the 12th September 2001 a “Pre Completion of Contract Formalities” meeting was held to finalise details of programme, health and safety matters, etc. Officers were of the opinion that the meeting was successful, only to receive a letter the following day informing the Council that the contractor wished to withdraw his tender. The reasons the contractor gave were that he did not fully appreciate the extent of the works until explained to him at the meeting. Contracts had not been signed at this stage. Officers had no alternative other than to accept the withdrawal.

Options

4. On the 19th September 2001 officers wrote to the second lowest tenderer to enquire if he was still interested in undertaking the work and, if so, whether he was prepared to confirm his original tender and provide a works commencement date. The contractor confirmed his tender but informed the Council that, due to accepting other work since tendering for the Council’s work, he would not be in a position to commence work until late January 2002.

5. Members will note from the information contained in (Exempt) Annexe 1 that there was a poor response to the original tendering exercise. The second lowest tender is considerably higher than the lowest tender, although it is still within 10% of the budget provision.

6. Officers considered the following options:-

(a) to retender the work immediately;

Having observed the poor response to the original tendering exercise it is the officers’ view that to retender based on the current Standing List of Contractors is unlikely to produce a better result.

(b) to retender the work once the new Standing List of Contractors is approved in the new year;

This will cause a significant delay to the contract with work not starting until April 2002.

or

(c) to accept the second lowest tender.

There are significant additional costs, over and above the original lowest tender, but these additional costs may well be reflected in any retendering exercise. This option does give some certainty to a works commencement date.

Resource Implications

7. To accept the second lowest tender will significantly increase costs but these costs can be contained within the approved Housing Revenue Account Planned Maintenance budget for 2001-2002.


Conclusions

8. The uncertainty of achieving financial savings by retendering together with the delays resulting from those two options lead Officers to the conclusion that to accept the second lowest tender presents the best way forward.

Recommendation

It is recommended that the remaining lowest tender, as identified in (Exempt) Annexe 1 to this report, for the electrical rewiring programme that forms part of the approved Housing Revenue Account Planned Maintenance programme for 2001-2002, be accepted and that the additional costs be contained within the approved HRA Programmed Maintenance (MRA) budget provision for 2001/2002.



Background Papers (BHO)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.



CONTACT OFFICER:

Name: Mr P Fry Telephone: (01252) 738311
E-mail: pfry@waverley.gov.uk