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Contract Authorisation Report - Voids and Tenanted Maintenance

Renfrewshire Council · 15 June 2022
Back to Finance, Resources and Customer Services Policy Board — 15 June 2022 and its agenda

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___________________________________________________________________
To: Finance, Resources and Customer Service Policy Board 
On: 15th June 2022 
___________________________________________________________________
Report by: Chief Executive and Director of Communities and Housing Services 
___________________________________________________________________
Heading: Contract Authorisation Report for Maintenance and Refurbishment
Works – Void and Tenanted Properties (RC-CPU-21-248). 
___________________________________________________________________
1. Summary 
1.1 The purpose of this report is to seek the approval of the Finance, Resources
and Customer Services Policy Board to award a Works Contract for the
Maintenance and Refurbishment Works to our Voids and Tenanted Properties
(RC-CPU-21-248) to City Gate Construction (Scotland) Limited. 
1.2 The recommendation to award the SBCC Measured Term Contract follows a
procurement exercise conducted in accordance with the Public Contracts
(Scotland) Regulations 2015 and the Council’s Standing Orders Relating to
Contracts for an above Threshold Works contract using the Open Tender
Procedure.   
1.3 A Contract Strategy was approved by the Head of Housing Services and the
Strategic Commercial and Procurement Manager on 29th March 2022.
___________________________________________________________________ 
2. Recommendations
It is recommended that the Finance, Resources and Customer Services Policy
Board authorise the Head of Corporate Governance:

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2.1 To award a Contract for the Maintenance and Refurbishment Works – Voids
and Tenanted Properties (RC-CPU-21-248) to City Gate Construction
(Scotland) Limited. 
2.2 Authorise up to the maximum contract value of £20,000,000.00 excluding VAT
and  
2.3 Authorise the contract, with a proposed start date of 18th July 2022. The
Contract Period of 2 years with the Council having the option to extend the
Contract Period for up to 12 months on two (2) separate occasions.  The
proposed dates will be confirmed in the Letter of Acceptance.  
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3. Background
3.1  A central requirement of Communities and Housing Services is to ensure that
Council properties, facilities and assets are of a proper standard, are properly
maintained in a manner that complies with statutory legislation and that the
appropriate records are maintained. 
The Council’s own Building Services department will primarily deliver property
maintenance where capacity allows however it is necessary to have an
additional contractual agreement in place to ensure sufficient capacity is
available to deliver the overall programme. This procurement is for a
Measured Term Contract for the appointment of a suitably qualified contractor
to carry out the maintenance and refurbishment works to both void and
tenanted properties, including but not limited to; kitchens, bathrooms, rewire,
heating, decoration and void repairs, where the requirement for these works
cannot be met by Building Services.
The anticipated spend includes for an enhanced specification to deliver
improvement measures in keeping with the  Scottish Government’s Warmer
Homes Scotland programme. These measures include wall insulation, under
floor insulation and works of a more specialist nature including renewable
heating systems.
The award of this contract will ensure the Council’s housing stock is
maintained to the required regulatory standards, including the Scottish
Housing Quality Standard (SHQS), and that properties are maintained and
refurbished within an agreed timescale to ensure targets are met, particularly
in relation to the reletting of void properties.
3.2 This is a Term Service contract with no guarantee of spend awarded under
the SBCC Measured Term Contract 2011 Edition with Employer’s
Amendments.  The maximum spend over the four (4) year period is up to
£20,000,000 which is estimated to be £5,000,000 annually although annual

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spend may exceed £5,000,000 as long as the cumulative value does not
exceed the maximum spend. 
3.3 To initiate this procurement process a contract notice was published on Find a
Tender via the Public Contracts Scotland advertising portal on Friday 1st April
2022 with the tender documentation available for downloading from the Public
Contracts Scotland – Tender portal from this date.
3.5 During the live tender period, twenty two (22) organisations expressed an
interest in this opportunity.  By the closing date set for the return of electronic
tender submissions, 12 noon on Thursday 5th May 2022, six (6) contractors
(Tenderers) submitted a response, five (5) declined and eleven (11) failed to
respond. 
3.6 All Tenderers were required to complete a Single Procurement Document
(SPD) to be submitted with their tender submission in accordance with
Regulation 60 of the Public Contracts (Scotland) Regulations 2015. The six
(6) tender submissions received contained a completed SPD and each was
evaluated against a pre-determined set of criteria in the form of the SPD by
representatives from Housing Services, the Corporate Procurement Unit,
Corporate Risk and Corporate Health and Safety.  Each of the six (6) tender
submissions received complied with the minimum selection criteria of the
SPD.
3.7 All six (6) tender submissions progressed to evaluation against the published
award criteria of 65% Price and 35% Quality. 
3.8 The scores relative to the award criteria for each of the Tenderer tender
submissions are noted below: 
Quality
(35%)
Price
(65%)
Total
(100%)
1 City Gate Construction
(Scotland) Limited  34.25% 65.00% 99.25%
2 Bell Decorating Group
Limited 33.00% 51.46% 84.46%
3 Hugh LS McConnell Limited  34.25% 48.33% 82.58%
4 Procast Property Services
Ltd. 28.00% 51.29% 79.29%
5 Novus Property Solutions
Limited 29.75% 48.96% 78.71%
6 Mears Facilities Management  31.50% 43.08% 74.58%

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3.9 The evaluation of tender submissions received identified that the tender
submission by City Gate Construction (Scotland) Limited was the most
economically advantageous tender.  
3.10 The form of Contract will be SBCC Measured Term Contract 2011 Edition. 
3.11 Mandatory Community Benefits were included as a condition of this Contract
which City Gate Construction (Scotland) Limited confirmed they will adhere to.
The commitment is to deliver four (4) Employment Opportunities, from the
table as detailed below: 
Mandated Community Benefits Requested
Job for an unemployed individual from a Priority Group 
Job for an unemployed individual 
Modern Apprenticeship 
The Mandatory Community Benefits to be delivered from the table above, will
be agreed at the mobilisation meeting. 
3.12 In addition to the mandatory Community Benefits requested, community
benefits were requested for every £1,000,000 (£1m) worth of spend made
under this Contract. The Community Benefits offered will be delivered each
time the spend increases by £1m and City Gate Construction (Scotland)
Limited has committed to deliver the following Community Benefits:   
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Implications of the Report
1. Financial – The costs for this Contract will be met from the Housing Revenue
Account (HRA) capital budget for the refurbishment works and the HRA
revenue repairs budget for the maintenance works. 
Community Benefits Description No of People/
Activity 
Job for an unemployed individual from a Priority Group 1
Job for an unemployed individual  1
Graduate 1 
Work Experience Placement for an individual 16+
years of age
1
Non financial support for a Community Project 1

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2. HR & Organisational Development – No TUPE implications 
3. Community/Council Planning –  
• Our Renfrewshire is fair - Tenderers were assessed within this procurement
process in regard to their approach to ensuring fair working practices
throughout their organisation and supply chain i.e. payment of the living
wage, training and development opportunities. 
• Creating a sustainable Renfrewshire for all to enjoy – City Gate
Construction (Scotland) Limited has committed to deliver Community Benefits
as detailed within section 3.11 and 3.12 of this report. 
• Our Renfrewshire is thriving – Maximising economic growth, which is
inclusive and sustainable. 
• Building strong, safe and resilient communities – Ensure our
neighbourhoods are safe and attractive. 
• Tackling inequality, ensuring opportunities for all – Improving housing
conditions for both Council tenants and owners. 
• Creating a sustainable Renfrewshire for all to enjoy – The works will
ensure that the housing stock is up to standard and protected for the future. 
4. Legal – The Procurement of this Works Contract has been conducted as an
above Threshold Open Procedure in accordance with the Public Contracts
(Scotland) Regulations 2015 and Renfrewshire Council’s Standing Orders
relating to Contracts. 
5. Property/Assets – The contract will provide refurbishment works and
maintenance/repair to the Council’s void and tenanted domestic properties. 
6. Information Technology - No Information Technology implications have
arisen or are anticipated.
. 
7. Equality & Human Rights - The Recommendations contained within this
report have been assessed in relation to their impact on equalities and human
rights. No negative impacts on equality groups or potential for infringement of
individuals’ human rights have been identified arising from the
recommendations contained in the report because for example it is for noting
only. If required following implementation, the actual impact of the

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recommendations and the mitigating actions will be reviewed and monitored,
and the results of the assessment will be published on the Council’s website. 
8. Health & Safety – City Gate Construction (Scotland) Limited health and
safety credentials have been evaluated and passed by Corporate Health and
Safety confirming that they met the Council’s minimum requirements
regarding health and safety.
9. Procurement - The procurement procedure outlined within this report ensures
that the Council meets its statutory requirements in respect of procurement
procedures, efficiency and modern government.
10. Risk – City Gate Construction (Scotland) Limited insurances are being
assessed and evaluated to confirm that they meet the minimum requirements
regarding insurable risk. Any award will be subject to our internal Insurance
and Risk Management Coordinator confirming that City Gate Construction
(Scotland) Limited meet the minimum requirements.   
11. Privacy Impact – All Tenderers were asked to confirm that they agree to the
form of our Data Processor Agreement, City Gate Construction (Scotland)
Limited confirmed adherence to it. 
12. Cosla Policy Position – No Cosla Policy Position implications have arisen or
are anticipated.  
13. Climate Risk – Tackling Climate Change and working towards Net Zero are
addressed throughout this contract.  The environmental impacts considered
are broad and range from the disposal of waste generated from the works
being carried out to the type of vehicles and machinery being used on the site.   
The Contractor will require to consider the emissions from their vehicles when
working on site and to switch engines off when not in use to prevent
unnecessary emissions.  The level of impact associated with provision of
these works has been assessed using the Scottish Government Sustainability
Test and is considered to be overall low risk. 
_________________________________________________________
List of Background Papers 
(a)  None 
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Author:          Joanna Tannock, Assistant Category Manager, Corporate Procurement
Unit, Joanna.tannock@renfrewshire.gov.uk