Board Report - Contract Authorisation Report for GAIA New Water Main
Renfrewshire Council · 23 April 2026
Back to Finance, Resources and Customer Services Policy Board — 23 April 2026 and its agenda
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PUBLIC ___________________________________________________________________ To: Finance, Resource and Customer Services Policy Board On: 23 April 2026 ___________________________________________________________________ Report by: The Chief Executive and Director of Finance and Resources ___________________________________________________________________ Heading: Contract Authorisation Report for GAIA New Water Main (RC-CPU-25- 258) ___________________________________________________________________ Summary 1.1 The purpose of this report is to seek the approval of the Finance, Resources and Customer Services Policy Board to enter into an Agreement for the design and build of GAIA New Watermain (RC-CPU- 25-258) with Scottish Water Horizons Limited (Co. no. SC264806). 1.2 The procurement exercise was conducted in accordance with the Renfrewshire Council’s Standing Orders relating to Contracts for the award of a below Regulated works contract. 1.3 A Contract Strategy and request to negotiate this Agreement was approved by the Programme Director – City Deal and Infrastructure and the Corporate Procurement Manager on behalf of the Head of Finance and Procurement on 28 March 2026. ___________________________________________________________________ Recommendations 2.1 It is recommended that the Finance, Resources and Customer Service Policy Board: 2.2 Authorises the Head of Corporate Governance to award an Agreement for the design and build of the Glasgow Airport Investment Area (GAIA)
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PUBLIC New Water Main to Scottish Water Horizons Limited (Co. no.SC264806), subject to the Head of Finance and Procurement, in consultation with the Head of Corporate Governance, being satisfied that the terms and conditions are acceptable to the Council. 2.3 Authorises the contract period of 27 weeks from the Agreement start date. 2.4 Authorises the Fees of £1,085,658.14 excluding VAT. 2.5 Authorises a contingency spend of £162,848.72 excluding VAT, which equates to 15.00% of the Fees. 2.6 Authorises the total Approved Contract Value of £1,248,506.86 excluding VAT, which is the total of the Fees plus the contingency spend. 2.7 Authorise Scottish Water Horizons Limited’s (SWH) liability to the Council in connection with the Agreement be limited as follows: • total liability (excluding death or personal injury resulting from the SWH's own negligence) of SWH under or in connection with the Agreement, whether in contract, in delict, for breach of statutory duty or otherwise, shall not exceed two hundred and fifty thousand pounds (£250,000); • SWH’s liability for any delay shall be limited to 1% (one per cent) of the Fees; and • The Council shall indemnify and keep indemnified SWH against all third party claims, demands, proceedings, damages, costs, charges and expenses arising out of or in connection with the Agreement, save to the extent that such claims, demands, proceedings, damages, costs, charges or expenses arise from or are attributable to the negligence, breach of contract or wilful default of SWH. The limits of liability are a condition of the Standard and Particular Terms and Conditions of the Agreement with Scottish Water Horizons Limited. _________________________________________________________ Background 3.1 The Council requires to appoint Scottish Water Horizons Limited to carry out the design and build of the GAIA New Water Main (the “Project”) at the Advanced Manufacturing Innovation District (AMIDS).
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PUBLIC SWH is the relevant commercial arm of Scottish Water for undertaking these works and have pre-approved the design with Scottish Water to ensure it will meet vesting requirements. The scope of works includes slip-lining the existing pipe through Netherton up to the bridges, stopping up the pipework at the roundabout and constructing a permanent connection to the supply pipe at the National Manufacturing Institute Scotland (NMIS) and the Medical Manufacturing Innovation Centre (MMIC) buildings. 3.2 SWH’s design minimises disruption at the AMIDS site to undertake the works and future-proof the build out of AMIDS by enabling a future connection at Portnauld Farm, as well as an easy connection for the Tech Terrace. 3.3 SWH will appoint and manage a Scottish Water approved contractor to undertake the works via sub-contract arrangements and, on completion of the works, SWH will provide the Council the outputs required to conclude Scottish Water’s vesting application process. 3.4 This procurement exercise was conducted using the negotiated procedure in accordance with 14.3 of the Renfrewshire Council’s Standing Orders relating to Contracts relying on the circumstances stated in Regulation 6 (1)(b) (iii) of the Procurement (Scotland) Regulations 2016. This states that “a contracting authority may award a public contract following negotiated procedure without prior publication of a contract notice or prior information notice in any of the following cases— (iii) the protection of exclusive rights, including intellectual property rights but only, in the case of paragraphs (ii) and (iii), where no reasonable alternative or substitute exists and the absence of competition is not the result of an artificial narrowing down of the parameters of the procurement.” 3.5 The award of this Agreement is subject to the Council’s agreement of SWH Standard and Particular terms and conditions. 3.6 Community Benefits were requested as part of the procurement process and Scottish Water Horizons Limited has committed to delivering the following community benefits as part of the Agreement: Community Benefit No. of People/ Activities Non-financial support for a Social Enterprise or other approved community initiative 8
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PUBLIC Implications of the Report 1. Financial – the maximum approved contract value of £1,248,506.86 excluding VAT will be contained within existing City Deal and Infrastructure Project Resources. Note – the payment terms of the Agreement require the Council to pay Scottish Water Horizons Limited in advance based on programme milestones and not on completion of specific activities. This condition has been agreed with the Director of Finance and Resource for this Agreement, with consideration to Scottish Water Horizons Limited’s strong financial and economic standing and the absence of other reasonable alternatives to undertake the works and services required for this project. 2. HR & Organisational Development – None arising directly from this report 3. Community/Council Planning – • Place – Working together to enhance wellbeing across communities; • Economy – building an inclusive, green and resilient economy; • Fair – nurturing bright, happy and healthy futures for all; • Living our values – making a difference together. 4. Legal - The procurement was conducted as a negotiated procedure without prior call for competition in accordance with the requirements of the Renfrewshire Council Standing Orders relating to Contracts. The award of the Agreement is subject to the Council’s agreement of the SWH Standard and Particular Terms and Conditions. 5. Property/Assets - The completed pipework will be vested by Scottish Water on completion of the vesting application process. 6. Information Technology – None arising directly from this report. 7. Equality & Human Rights - No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified rising from the recommendations contained in the report. 8. Health & Safety – Scottish Water Horizons Limited’s health and safety accreditations have been reviewed by Corporate Health and Safety and meet the Council’s requirements.
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PUBLIC 9. Procurement – The procurement was conducted as a negotiated procedure without prior call for competition and the requirements of the Renfrewshire Council Standing Orders relating to Contracts. The award of the Agreement is subject to the Council’s agreement of SWH Standard and Particular Terms and Conditions. 10. Risk – Scottish Water Horizons Limited’s insurance documents have been assessed and meet the Council’s requirements regarding insurable risk. The Consultant’s liability to the Council in connection with the Agreement is limited as follows: • total liability (excluding death or personal injury resulting from the Consultant's own negligence) of the Consultant under or in connection with the Agreement, whether in contract, in delict, for breach of statutory duty or otherwise, shall not exceed two hundred and fifty thousand pounds (£250,000); • Consultant’s liability for any delay shall be limited to 1% (one per cent) of the Fees • The Council shall indemnify and keep indemnified SWH against all third party claims, demands, proceedings, damages, costs, charges and expenses arising out of or in connection with the Agreement, save to the extent that such claims, demands, proceedings, damages, costs, charges or expenses arise from or are attributable to the negligence, breach of contract or wilful default of SWH. The limits of liability are a condition of the Standard and Particular Terms and Conditions of the Agreement with Scottish Water Horizons Limited. 11. Privacy Impact – None directly arising from this report. 12. Climate Risk – the works will contribute to Scottish Water Horizons Limited’s Climate Adaption Plan 2024 to improve the resilience of infrastructure and services to climate change impact and ensure the sustainability of Scotland’s water and waste water systems. 13. Children’s Rights - None arising directly from this report. 14. Cosla Policy Position - None arising directly from this report. _______________________________________________________
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PUBLIC List of Background Papers (a) None ___________________________________________________________________ Author: Rebecca Park, Strategic Category Manager, rebecca.park@renfrewshire.gov.uk