Report - New Primary School in Dargavel
Renfrewshire Council · 13 February 2025
Back to Finance, Resources and Customer Services Policy Board — 13 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Some pages contain no extractable text. They may be blank, graphics or scanned pages. OCR has not been applied.
Page 1
___________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 13 February 2025 ___________________________________________________________________ Report by: The Director of Finance and Resources and the Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: Contract Authorisation Report: New Primary School in Dargavel, Enabling Works Contract and approval for Pre-Construction Consultant Fees ___________________________________________________________________ 1. Summary 1.1. Renfrewshire Council has a requirement to build a new primary school in Dargavel Village, Bishopton. The new school will have capacity for a minimum of 800 pupils as well as facilities for Community Use including a full-size Flood-lit 3G playing field. 1.2. Hub West Scotland (HWS) Limited was identified as the recommended procurement route to market under the approved terms of the Territory Partnering Agreement (TPA). Design development has taken place in partnership with Hub West Scotland since October 2023, culminating in submission of Hub West Scotland Limited Stage 1 report on 18 December 2024 confirming that the project is on budget and that the forecast programme for delivery is achievable. 1.3. Formal approvals are now required to progress the project to ensure the project deadline is met; Finance, Resources and Customer Services Policy Board approval is requested for an Enabling Works contract with Hub West Scotland Limited, who will wholly sub-contract all these works to BAM Construction Limited and for the Finance, Resources and Customer Service Policy Board to also approve the payment of Pre- Construction Consultant fees to Hub West Scotland Limited to allow them to pay their professional consultant team.
Page 2
1.4. It should be noted that further approvals will be sought from a future Finance, Resources and Customer Service Policy board to enter into Advance Works and Main Works Contracts with Hub West Scotland Limited, who will wholly sub-contract each of these contracts to BAM Construction Limited. ___________________________________________________________________ 2. Recommendations It is recommended that the Finance, Resources and Customer Services Policy Board: 2.1. Authorises the Head of Corporate Governance to enter into a Design and Build Development Agreement (DBDA) for Enabling Works with Hub West Scotland Limited. Please note that Hub West Scotland Limited will wholly subcontract all these Enabling Works under this contract to BAM Construction Limited. 2.2. Authorise the award of the Enabling Works Contract for £2,354,023.00 exclusive of VAT to Hub West Scotland Limited. 2.3. Authorise a contingency spend of £353,103.45in relation to the Enabling Works Contract which equates to 15% of the Contract Sum. 2.4. Authorise a total Approved Contract Value for Enabling Works of £2,707,126.45 (which is the total of the Contract Sum plus the contingency spend). 2.5. Authorise the acceptance of a Limitation on Hub West Scotland Limited’s Liability for uninsured losses up to the value of the Contract Sum for the Enabling Works Contract. This is the market standard position. 2.6. Note the Enabling Works Contract is anticipated to commence in early March 2025 and be completed by late October 2025. 2.7. Authorise the spend of £2,228,624 to Hub West Scotland Limited for them to pay their various Pre-Construction Consultant Fees which will be incurred in advance of entering into the Design and Build Development Agreement associated with the Main Works Contract. 2.8. Authorise a contingency spend of £334,293.60 in relation to the Pre- Construction Consultant Fees which equates to 15% of the Contract Sum.
Page 3
2.9. Authorise a total Approved Contract Value for Pre-Construction Consultant Fees of £2,562,917.60 (which is the total of the Contract Sum plus the contingency spend). 2.10. Authorise the acceptance of a Limitation of Liability on Design Consultants Pre-Construction Development (Pre-Construction Consultants) to the sums referred to in 3.19 on an each and every claim basis except for claims relating to pollution and contamination and asbestos where the limit will be in the annual aggregate. This is the market standard position. 2.11. Note that a further report will be brought to a future Finance, Resources and Customer Services Policy Board to seek approval of the award of an Advance Works Contract and award of a Main Works Contract to Hub West Scotland Limited noting that these will both also be wholly sub- contracted to BAM Construction Limited. _________________________________________________________ 3. Background Enabling Works 3.1. Renfrewshire Council (RC) is looking to build a primary school in Dargavel on a site that has been purchased from BAE Systems (BAE) and requires the school to be delivered for May 2027 to allow familiarisation / fit-out over the school summer holidays and for the school to be ready for pupils from the new Term in August 2027. 3.2. RC undertook extensive consultation to gauge public opinion and determine a preferred site for the new school. The chosen site lies southwest of Bishopton, with plot E1 formally confirmed as the location for the new school on 23 May 2024. The plot forms part of a wider regeneration project by BAE Systems following the decommissioning of the former Royal Ordnance Factory Bishopton. The site has been purchased from BAE by RC. The brownfield site (Plot E1) has been remediated by BAE to a residential construction specification. The next stage in the site preparation process is for civil engineering works comprising of the installation of vertical drainage and fill material. These works are defined as ‘Enabling Works. 3.3. After advice from RC officers on appropriate procurement routes, it was proposed that the use of Hub West Scotland Limited (HWS) as a project delivery partner would be the most appropriate procurement route for a project of this nature. This recommendation was reported to the Education and Children’s Services Policy Board in May 2024.
Page 4
3.4. RC entered into a Territory Partnering Agreement (TPA) with HWS on 27 April 2012. A New Project Request (a HWS Governance requirement) was submitted by RC for the overarching Dargavel Primary School Project (Project) to HWS and which was accepted by the HWS Board in January 2024. Appointing a contractor as early as possible in the Project was vital due to the complexity of the Project and to develop design options during the Feasibility Stage. 3.5. HWS approached their Tier 1 Primary Contractor supply chain and 4 organisations were asked to confirm their interest to tender the Project and were also requested to submit capability statements. As part of HWS procurement methodology financial checks using project value versus organisation turnover, Dun & Bradstreet and Credit-Safe check reports were compiled for each organisation to further validate their suitability for the Project. 3.6. All 4 organisations met the due diligence requirements and on 19 February 2024 the 4 organisations were sent an Invitation to Tender (ITT). By the closing date, 15 March 2024 all four organisations (now known as tenderers) submitted a completed ITT. Both HWS and members of RC evaluated the Quality element (based on 70%) and HWS evaluated the pricing element (based on 30%). 3.7. The 4 tenderers attended in person interviews on 26 March 2024 and presented to a panel consisting of members from HWS and members from RC’s Corporate Procurement Unit and Property Services. 3.8. Following the evaluation of the 4 bids received BAM Construction Limited (BAM) were identified by HWS as the most economically advantageous tenderer. 3.9. Whilst progressing through the design stages of the Project, HWS, BAM and RC identified that there was a requirement to undertake early civil engineering works to facilitate the site preparation ahead of the Main Works Contract. RC are now seeking authority from the Finance, Resources and Customer Services Policy Board to enter into an Enabling Works Contract with HWS. 3.10. RC will enter into a DBDA with HWS and thereafter HWS will enter into a construction contract with BAM Construction Limited to deliver all works required under this Contract.
Page 5
3.11. Following conclusion of RIBA 1 & 2 Design Stages, a HWS Stage 1 Report was received by the RC on 12 December 2024 and presented to the Learning Estate Strategy and Delivery Board on 18 December 2024 confirming that at time of submission of the report, the Project was on time, on budget and on programme. 3.12. The Enabling Works Contract contains Limitation on HWS’s Liability for uninsured losses up to the value of the Contract Sum for the Enabling Works Contract. This is the market standard position. 3.13. The key RC critical success factor is that the project be complete by May 2027 in order that the school will be operational for pupils by the new term in August 2027. Enabling Works are programmed to commence in March 2025 and to be complete by October 2025. Entering into this Enabling Works Contract is critical to maintaining the Project programme. 3.14. It is anticipated that a further contract, an Advance Works Contract, will be required following Enabling Works before the Main Works Contract can be entered into. The Advance Works contract will be to carry out targeted civil engineering and services preparatory works that will assist timely delivery of the Main Works Contract. The extent of the Advance Works package is currently being developed in conjunction with BAM/ HWS and RC. The Advance Works contract is currently anticipated to start in late October 2025 and expected to last approximately 10 weeks. 3.15. The Main Works Contract is anticipated to start in January 2026, with handover of the facility to RC anticipated in May 2027. Further approval will be sought from future Finance, Resources and Customer Services Policy Boards with regard to entering into an Advance Works and a Main Works Contract during quarter 4 of 2025. 3.16. Pre-Construction Professional Services Fees A design team of professional consultants has been assembled by HWS to deliver the Project who have the credentials and relevant experience for a project of this nature, coupled with the skill set to deliver within a challenging delivery programme. As part of the HWS Model, RC enters into a contract with HWS to provide the professional and design services and HWS sub-contracts these services to the various professional consultants on their supply chain. HWS will incur substantial design and other professional fees in advance of entering into the Main Works Contract DBDA. These services can last a considerable number of months, and it is necessary to ensure payment of these fees to ensure cashflow for HWS and their consultant team.
Page 6
The design team members were appointed by HWS following a detailed tender exercise, which included an interview process involving member of Property Services and the Corporate Procurement Unit. The team is detailed below: 3.17. Pre-Construction Professional Services Fees will amount to £2,228,624. This is broken down as follows:
Page 7
No embedded text on this page.
Page 8
3.18. The limitation of liability of HWS’s Sub-Consultants shall be limited to the sums referred to in the table below on an each and every claim basis except for claims relating to pollution and contamination and asbestos where those limits will be in the annual aggregate. These figures reflect market limitations. Consultant Appointment cl 19.1 (PI) and (40) Limitation of Liability Sub-limitations Comments JMA £10,000,000 (ten million pounds) any one occurrence Except for claims relating to pollution and contamination and asbestos where the cover will be in the annual aggregate. Architect and Lead consultant ERZ Landscape Architect Sub-Consultancy: £5,000,000 (five million pounds) on an any one claim or series of claims arising from the same originating cause basis. Defence costs in addition or series of claims arising from the same originating cause but in the Aggregate in respect of Pollution and Contamination claims. Sub consultant to JMA Digital Guerrilla BIM Manager Sub- Consultancy: £2,000,000 (two million pounds) any one claim. Sub consultant to JMA Carbon Futures Sustainability & Carbon Advisor Sub- Consultancy: £5,000,000 (five million pounds) each and every claim or loss excluding defence costs. Sub consultant to JMA Spacezero Furniture, Fixtures & Equipment specialist Sub-Consultancy: £10,000,000 (ten million pounds) any one claim. Sub consultant to JMA AECOM £10,000,000 (ten million) any one claim except for claims relating to pollution and contamination and Civil and Structural
Page 9
Consultant Appointment cl 19.1 (PI) and (40) Limitation of Liability Sub-limitations Comments asbestos where the limit will be in the annual aggregate. Rybka £10,000,000 (ten million pounds) any one claim except for claims relating to: Fire Safety: £10,000,000 (ten million pounds) in the aggregate Pollution: £1,000,000 (one million pounds) in the aggregate Asbestos: £250,000 (two hundred and fifty thousand pounds) in the aggregate Mechanical, Electrical and Plumbing Jensen Hughes £11,732,250 (eleven million seven hundred and thirty two thousand two hundred and fifty pounds) per occurrence and aggregate but excludes fire/combustibility. Fire sub consultant to Rybka Sandy Brown £5,000,000 (five million pounds) any one claim except for claims relating to: Pollution: £5,000,000 in the aggregate Asbestos: £2,000,000 in the aggregate Acoustic sub consultant to Rybka Currie and Brown £10,000,000 (ten million pounds) any one claim Cost Consultant and Principal Designer 3.19. RC will enter into a Strategic Support Partnering Services letter with HWS in order to pay the various professional fees as noted above. In advance of paying these professional fees, HWS must demonstrate to RC that they have entered into a formal appointment with the relevant Professional Consultant and must provide RC with a collateral warranty signed by both HWS and the relevant Professional Consultant. Community Benefits 3.20. RC provided HWS with a Community Benefit Outcome Menu that targets 150 points for a Project of this overall value.
Page 10
The outcome menu was also replicated onto the SFT themes, outcomes and measures (TOMs) system as part of the HWS tender process. BAM Construction Limited committed to achieving 680 points on the Community Benefit Outcome Menu and £10.4m worth of Social, Local Economic Value through the SFT TOMs menu. The Community Benefits will be delivered as part of the Enabling Works Package and continue through until overall Project completion. 3.21. This approach and model (both an Enabling Works Contract, and Payment of the Design Team fees in this manner) was followed successfully in the project for the award-winning Paisley Learning and Cultural Hub. ___________________________________________________________________ Implications of the Report 1. Financial – The cost for these 2 named contracts of £5,270,044.05exclusive of VAT will be met through the Capital – General Services budget. The limits of liability are as detailed within paragraph 3.20. 2. HR & Organisational Development – None directly arising from this report. 3. Community/Council Planning – • Our Renfrewshire is thriving – maximising economic growth, which is inclusive and sustainable. • Our Renfrewshire is well - supporting the wellness and resilience of our citizens and communities. Place - Demonstrating that Renfrewshire is a great place to grow up, it's a place of opportunity for those that live and work here. Economy: - Improving lives and securing wellbeing through a stronger, inclusive and sustainable economy, being creative, imaginative and linking opportunities to enhance the benefits for Renfrewshire. - Matching the skills developed in Renfrewshire with the opportunities available in Renfrewshire and equipping all children and young people to achieve success in life.
Page 11
Green: - Working across partners and communities to deliver the priority areas highlighted in our Plan for Net Zero, working towards a net zero Renfrewshire by 2030. - Ensuring our journey to net zero is a just transition with climate justice and fairness at the heart, finding opportunities to challenge inequalities in new green ways as we tackle the climate crisis. - Integrating climate considerations into our long term strategic and financial planning as an organisation - Boosting our green economy, creating good green jobs that are sustainable for the future. Living Our Values: - Leading positively through transition and change. - Delivering best value for our citizens and customers. 4. Legal - The procurement exercise to establish the ability of the Council to enter into a contract with Hub West Scotland has been conducted in accordance with the EU Procurement Regulations. 5. Property/Assets - The Council’s investment in its learning estate offers the opportunity for a place-based approach to local outcomes and integrating local services to support communities. The new school will have capacity for a minimum of 800 pupils as well as facilities for Community Use including a full-size Flood-lit 3G playing field. 6. Information Technology – None directly arising from this report 7. Equality & Human Rights – None directly arising from this report 8. Health & Safety – None directly arising from this report 9. Procurement – Hub West Scotland is a joint-venture organisation which is owned by both the public and private sectors. 10. Risk – A Risk Register has been produced for the Project and will be managed and maintained throughout the Project lifetime. 11. Privacy Impact – None directly arising from this report 12. Climate Risk – None directly arising from this report
Page 12
13. Children’s Rights – This report does not cover a new policy, function or strategy nor a substantive change to an existing policy, function or strategy which will have an impact on children’s rights. 14. Cosla Policy Position – None directly arising from this report. _______________________________________________________ List of Background Papers (a) Learning Estate Update – on 14th March 2023 to Education and Children’s Services Policy Board (b) Learning Estate Update – on 23 May 2023 to Education and Children’s Services Policy Board ___________________________________________________________________ Author: Joanna Tannock, Interim Strategic Category Manager David Donnelly, Project Manager