Contract Authorisation Report Thistle Primary School Advance Works Contract
Renfrewshire Council · 11 September 2025
Back to Finance, Resources and Customer Services Policy Board — 11 September 2025 and its agenda
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___________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 11 September 2025 ___________________________________________________________________ Report by: The Director of Finance and Resources and the Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: Contract Authorisation Report: Thistle Primary School Advance Works Contract ___________________________________________________________________ 1. Summary 1.1. Renfrewshire Council has a requirement to build the new Thistle Primary school (“new school”) in Dargavel Village, Bishopton (the “Project”). 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 Limited (“HWS”) 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 HWS since October 2023. The overall design is progressing well with the Design Team having reached RIBA 4 Technical Design. 1.3. The Enabling Works Contract, approved at the Finance, Resources and Customer Services Policy Board meeting on 13 February 2025, comprising ground and civil engineering works has recently successfully reached completion on 23 July 2025, both within budget and programme. At the Finance, Resources and Customer Services Policy Board meeting on 13 February 2025, it was advised that a further report would be brought to a future Finance, Resources and Customer Services Policy Board to seek approval of the award of an Advanced Works Contract. 1.4. Formal approvals are now required to progress the Project to ensure the Project deadline is met; Finance, Resources and Customer Services
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Policy Board approval is requested for an Advance Works Contract with HWS, who will wholly sub-contract all of these works 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 Advance Works with Hub West Scotland Limited. Please note that HWS will wholly subcontract all these Advance Works under this Contract to BAM Construction Limited. 2.2. Authorises the award of the Advance Works Contract for £3,048,163.00 excluding VAT, to HWS (“the Contract Sum”). 2.3. Authorises a contingency spend of £457,224.45 in relation to the Advance Works Contract, which equates to 15% of the Contract Sum. 2.4. Authorises a total Approved Contract Value for Advance Works of £3,505,387.45 (which is the total of the Contract Sum plus the contingency spend). 2.5. Authorises the acceptance of a Limitation on HWS’s Liability for uninsured losses up to the value of the Contract Sum for the Advance Works Contract. To note: this is the market standard position. 2.6. Note construction associated with the Advance Works Contract is anticipated to commence in October 2025 and be completed by January 2026. Specialist design, early procurement and consultant services associated with the Advance Works Contract commenced in August 2025 (those services and associated costs are deemed to be subsumed and incorporated into the Advance Works Contract). 2.7. Authorise the acceptance of a Limitation of Liability on Design Consultants to the sums referred to in 3.5 below on an each and every claim basis except for claims relating to pollution, contamination, and asbestos, where the limit will be in the annual aggregate. To note: this is the market standard position. 2.8. 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 a
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Main Works Contract with HWS, noting that this will also be wholly sub- contracted to BAM Construction Limited. _________________________________________________________ 3. Background 3.1. The key Renfrewshire Council (Council) critical success factor is that the Project must be complete by May 2027 in order that the school will be operational for pupils by the new term in August 2027. Advance Works are programmed to commence in October 2025 and complete by January 2026. Entering this Advance Works Contract is critical to maintaining the Project programme. 3.2. The Advance Works Contract will carry out targeted civil engineering and services preparatory works that will assist timely delivery of the Main Works Contract. The Advance Works contract is currently anticipated to start in late October 2025 and be completed by January 2026. 3.3. It should be noted that over recent months, commercial discussions have been ongoing between HWS (and their legal representatives, Burness Paull), Property Services, Corporate Procurement, and Legal Services, culminating in producing two Letters of Underwrite, dated 29 July 2025 and 14 August 2025 (“the Letters”). The Chief Executive signed the Letters during summer recess. HWS requested the Letters to provide comfort to BAM Construction Limited during a period where it has incurred costs (and risk) without the protection of a formal contract. No sums are due to paid under the Letters unless the Project does not proceed, and the intention is that the agreement within the Letters will be replaced by the Advance Works Contract once signed. The timing of the Letters was critical to maintaining the programme and allowed progression of an Advance Works design and procurement phase in preparation for the next phase of construction being sought within this report. 3.4. The Main Works Contract is anticipated to start in January 2026, with handover of the facility to the Council anticipated in May 2027. Further approval will be sought from the Finance, Resources and Customer Services Policy Board on 20 November 2025 to enter into a Main Works Contract. 3.5. As part of this Contract, 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, contamination and asbestos where those limits will be in the annual aggregate. These figures reflect standard market position. The limits noted below reflect the
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Enabling Works position with exception of sub-limited £250,000 in aggregate for Asbestos (JM Architects Limited). Final insurance levels will be agreed in conjunction with the Risk Manager prior to signing the Advance Works Contract. Legal Entity Value Terms Sub Limit JM Architects Limited £10m any one occurrence Asbestos: £250,000 in the aggregate ERZ Ltd £5m any one claim or series of claims arising from the same originating cause Defence costs in addition but in the aggregate in respect of Pollution and Contamination claims Digital Guerrilla Consultancy Ltd £2m any one claim unlimited in the period of Insurance N/A Carbon Futures (Consultancy) Limited £5m each and every claim or loss, excluding defence costs N/A Spacezero (North) Limited £10m any one claim N/A Rybka Ltd £10m any one claim excluding costs and expenses Fire Safety: £10,000,000 in the aggregate including costs and expenses in respect of Fire Safety Pollution: £1,000,000 in the aggregate inclusive of defence costs Asbestos: £250,000 in the aggregate inclusive of defence costs Jeremy Gardner Associates Ltd t/a Jensen Hughes £10m per occurrence and aggregate No fire/combustibility exclusion included in the Professional Indemnity Policy Sandy Brown Ltd £5m any one claim Pollution: £5,000,000 in the annual aggregate Asbestos: £2,000,000 in the annual aggregate AECOM Limited £10m any one claim N/A Currie & Brown UK Limited £10m any one claim N/A
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3.6. The Council provided HWS with a Community Benefit Outcome Menu that targets 150 points for a Project of this overall value. 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 Advance Works Contract and continue through until overall Project completion. ___________________________________________________________________ Implications of the Report 1. Financial – The cost for this Advance Works Contract of £3,505,387.45 (which is the total of the Contract Sum plus the contingency spend) excluding VAT, will be met through the Capital – General Services budget. The limits of liability are as detailed within paragraph 3.5. 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 is 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. 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.
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- 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 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. Another Risk is those of the Caps to Liability as mentioned in paragraph 3.5 above. 11. Privacy Impact – None directly arising from this report 12. Climate Risk – None directly arising from this report 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.
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14. Cosla Policy Position – None directly arising from this report. _______________________________________________________ List of Background Papers (a) Learning Estate Update – on 14 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 (c) Contract Authorisation Report: New Primary School in Dargavel, Enabling Works Contract and approval for Pre-Construction Consultant Fees – on 13 February 2025 to Finance, Resources and Customer Services Policy Board ___________________________________________________________________ Author: Joanna Tannock, Interim Strategic Category Manager David Donnelly, Project Manager