Contract Award - Braidhurst Industrial Estate Design Team
North Lanarkshire Council · 17 February 2023
Back to Enterprise and Fair Work Committee — 17 February 2023 and its agenda
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref: PH / DG Date: 17 February 2023 Contract Award for Braidhurst Industrial Estate Design Team From Pamela Humphries, Chief Officer of Place E-mail greerd@northlan.gov.uk Telephone David Greer, tel 07583 059816 Executive Summary This report is to advise the Enterprise and Fair Work Committee (the ”Committee”) of the decision taken in accordance with condition 21.3.2 of the Council’s General Contract Standing Orders (GCSO’s) where outwith the committee cycle, the Depute Chief Executive approved the award of a contract for Braidhurst Industrial Estate Design Team (the ‘Contract’) to Collective Architecture Limited The Contract was approved by the Depute Chief Executive on 10 January 2023 and was formally awarded on 11 January 2023. The Contract is for an initial period of 24 months and commenced on 12 January 2023. The Council reserves the right to extend the Contract for additional periods up to a maximum of a further six (6) months. The value of the Contract shall not exceed six hundred and thirty thousand pounds sterling (£630,000) exclusive of VAT. Recommendations It is recommended that Committee:- 1. notes the award of the Contract in accordance with GCSO 21.3.2 to Collective Architecture Limited to the maximum value of six hundred and thirty thousand pounds sterling (£630,000) exclusive of VAT. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition Statement (3) Maximise the use of our marketable land and assets through improved development in business and industrial infrastructure
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1. Background 1.1 Braidhurst Industrial Estate is a well-established 4.4-hectare estate situated off Bellshill Road in a prominent location approximately one mile to the north-west of Motherwell town centre. 1.2 The estate has a high occupancy rate with a range of trade and industrial units of varying sizes. Some of the units are of poor quality and are tired and dated in appearance whilst the surrounding environment is unappealing. 1.3 An initial feasibility study for Braidhurst Industrial Estate was commissioned in 2019 to identify the key elements for a regeneration project, the potential costs and an outline programme. 1.4 The objective was to upgrade Braidhurst Industrial Estate by improving infrastructure and facilities to make it a more attractive location for businesses due to the improved provision of high-quality business and industrial space. 1.5 There is also an area of vacant and derelict land at the end of Newhut Road that will be used for the construction of 10 new start up industrial units. 1.6 This information was utilised to inform an external funding application to the Scottish Government’s Regeneration Capital Grant Fund (RCGF) in 2020. 1.7 The initial application to the RCGF was rejected in early 2021 and feedback was sought from the Scottish Government. This enabled specific areas of the application to be improved upon and the revised enhanced application was subsequently submitted in late 2021. 1.8 The revised application was approved in early 2022 with an award of £1.8m towards a total project cost of circa £5m. It was a requirement of the award that the project be “contractually committed” by the 31st March 2023. This requires a contract to be in place with a main contractor to deliver the works prior to the end of the financial year. 1.9 In order to fulfil this, a multi disciplinary design team led by an architect required to be identified, appointed and undertake the required design works to enable a main contractor to price the works and enter into a contract prior to 31st March 2022. 1.10 The design team will include the following consultants:- • Architect / Principal Designer – Develop and prepare architectural drawings and specifications, act as Principal Designer, production and submission of all statutory applications, application for Health and safety (H&S) documentation, act as lead consultant • Quantity Surveyor – Preparation of detailed cost estimate, preparation and reporting of cost reports, evaluation with recommendations of works contractor tender, preparation of valuations for payment to contractor, agree final accounts • Project Manager / Contract Administration – Co-ordination of design team, chair and report on Design Team Meetings, undertake contract administration duties acting as NEC Project Manager including issue of instructions as required, project risk analysis and reporting, preparation of tender documentation for works contractor, programme management, regular site inspections during construction, agree / monitor final defects schedule, issues Certificate of Completion • Structural / Civil Engineer – Develop and prepare structural / civil drawings and reports • Mechanical and Electrical (M&E) Engineer – Develop and prepare mechanical / electrical drawings and reports
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• Energy Consultants – Assessment, evaluation and reporting of Net Zero Carbon Modelling, preparation and reporting of Embodied Carbon Assessment • Clerk of Works – Oversee site works, attend regular site inspection visits to ensure works are carried out in general accordance with the contract drawings • H&S Advisor – Manage H&S compliance including review of Contractor’s Method Statements and Risk Assessments 1.11 The project will involve improving the infrastructure and facilities at Braidhurst Industrial Estate to make it a more attractive location for businesses due to the improved provision of high-quality business and industrial space. This will include new road and footpath, new lighting, new car parking including EV charging points and improved boundary treatments for the site. 1.12 The existing occupied North Lanarkshire property (NLP) units will be refurbished and the area of vacant and derelict land at the end of Newhut Road will be used for the construction of 10 new start up industrial units. 1.13 The procurement of the consultant design team has followed an approval by the Head of Planning and Regeneration (now Chief Officer of Place) on 27 May 2022 to commence procurement, following agreement of the procurement strategy and funding approach. 1.14 This report deals with the appointment of the design team and the appointment of the main contractor will be the subject of a future report to committee. 2. Report 2.1 Following confirmation of the RCGF award, an internal user intelligence group (the ‘UIG’) of technical and procurement representatives was formed following the confirmation of the RCGF monies to review technical specifications, discuss trading processes, market conditions and trends, ways to maximise community benefits and sustainability and to agree the procurement strategy that would deliver maximum benefit for the Council via the Contract. 2.2 The feasibility study had provided an initial estimated value of the Contract which detailed that the procurement procedure would require to be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. 2.3 However, the timescales involved in a procurement process at this level would take a number of months and would prevent the project from being “contractually committed” resulting in the loss of the RCGF monies. In addition to this, the resources required to procure and appoint individual consultants to provide the necessary specialist design and management services required would also incur additional cost. 2.4 Therefore, for the reasons outlined above, an appointment from an appropriate Framework was considered to be the best approach in order to meet the Scottish Government funding deadlines. 2.5 Following consideration, the UIG identified the SPA Framework as being the most appropriate framework to use. The procurement procedure was therefore undertaken as a “Direct Award” from the Scottish Procurement Alliance (SPA) Construction Consultancy (H1WS1) framework agreement (the “Framework”) 2.6 Collective Architecture Limited are ranked 1st within the relevant lot for architecture led design team on the SPA Framework. 2.7 A scope of works was produced and issued to Collective Architecture for pricing for the required services as outlined in points 1.9 to 1.12 above. The requirements of this particular
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Contract have never been contracted by the Council before therefore exact historical contract information was not available for consideration. 2.8 However, the submitted tender was evaluated and confirmed overall as representing the most economically advantageous tender for this Contract. 2.8 Appendix 1 confirms the scoring achieved by Collective Architecture Limited within the SPA Framework, further details of the procurement procedure is provided in Appendix 2 and the SME status and location of all tenderers is located within Appendix 3. 2.9 The value of the Contract is six hundred and thirty thousand pounds sterling (£630,000) exclusive of VAT including any option to extend the Contract. 2.10 The costs associated with contract delivery will be contained within the council’s capital programme budget allocation for Planning and Regeneration. The RCGF monies will be expended on the works. 2.11 A full costed breakdown for the project will be provided following submission of the contractor’s tender in February. Price Savings / Increases 2.12 No savings are anticipated within the Contract. 2.13 The Contract value is determined by the Framework fees and are calculated on the works contract value. The works contract value for this project are £4m and the Framework band that this project falls within is from £4m-£6m. Price Stability 2.14 The prices are based on the Framework pricing schedule and are fixed for the entire duration of the Contract. Community Benefits 2.15 The procurement did not include a community benefit requirement as these will be included in the associated works contract for the project which is being tendered for separately. Fair Work First 2.16 Within their tender submission, Collective Architecture Limited advised that they will commit to the Scottish Government’s “Fair Work First” initiative: Contract Strategy 2.17 Officers from the Growth Team will be responsible for managing the Contract which will be undertaken in accordance with the Councils agreed approach to contract and supplier management. 3. Measures of success 3.1 The Contract will enable the delivery of the following outcomes; • Upgrade of Braidhurst Industrial Estate including the construction of 10 new start up industrial units; • upgrade of six existing North Lanarkshire Properties industrial units;
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• provision of new car park with EV charging points; • improved infrastructure including road and footpaths; and • lighting, drainage and installation of high-speed fibre broadband to improve the economic viability of this industrial estate on the edge of Motherwell town centre. 4. Supporting documents Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process Appendix 3 SME Status and Location of All Tenderers Pamela Humphries Chief Officer of Place
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? Supporting Local Business North Lanarkshire has lower levels of entrepreneurship than Scotland and UK on average. Around 5.4% of people in employment in North Lanarkshire are classed as self-employed. That’s about 8,100 individuals self-employed. This is significantly lower than the Scottish rate of 10.3% and UK average of 12.4%. North Lanarkshire requires a further 10,300 people to move into self-employment in order to level up to the UK average. This project will provide 10 new start-up units which lend themselves to use by new enterprises. Vacant and Derelict Land North Lanarkshire has the largest area of Vacant and Derelict Land across Scotland’s 32 local authorities with 1,354 hectares across 500 sites in 2021. This represents a 14% share of the Scottish total. This project will remove 0.5 hectares of Vacant and Derelict Land from the register. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Finance? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The project will require funding from North Lanarkshire Council and North Lanarkshire Properties. The funding streams for both NLC and NLP have been identified and secured and approval for spend has been obtained. The remainder of the funding will come from the Scottish Government via the Regeneration Capital Grant Fund, which was awarded in January 2022, and the Place Based Investment Programme. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People Resources? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact?
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5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The project will include the installation of high-speed fibre broadband to the Industrial Estate which will help to secure the financial viability of the businesses on the estate by future proofing the infrastructure improvements. Where the impact identifies a requirement for significant technology change, has an assessment been carried out (or is scheduled to be carried out) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☒ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The proposed upgrade works include an element to reduce carbon emissions by insulating the existing six North Lanarkshire Properties industrial units, and the provision of solar panels, smart lighting and low energy technology in the ten new start up units being constructed. EV charging points will also be installed on the estate. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact?
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Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The Scottish Governments Regeneration Capital Grant Funding and Place Based Investment Fund have conditions attached that the works contractor must be contractually committed by the end of March 2023 in order for the Council to be able to draw down funding. This is recorded within the project risk register. We are on target to meet this funding requirement. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Collective Architecture Limited 94.63% Y
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Framework (Scottish Procurement Alliance) Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 27 May 2022 Date Contract Notice Published: Not Applicable Number of Companies Invited to Take Part: 1 SME % of Expressions of Interest: 100% NLC Based % of Expressions of Interest: 0% Tender Return Deadline: 9 December 2022 Number of Tenders Received: 1 Where Only One Tender Is Received, Why?: Direct Award Call-off from Framework Tenders Received from SME’s: 1 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 1 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 75% Price: 25% Evaluation Team: Framework Scoring was utilised with compliance checks etc. undertaken by Officers of the Growth Team. Anticipated Contract Start Date: 12 January 2023 Total Contract Period (Months): 24 months plus 6 month extension Maximum Total Contract Value: £630,000
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Appendix 3 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Collective Architecture Ltd Small Greater Glasgow