Issue details

Appointment of this post through a framework as originally intended is not practicable and running an open tender for the appointment would cause a delay in the wider project procurement process. Any further delays are likely to threaten delivery of the new leisure centre. There is insufficient time to take this urgent decision request to the next Strategy & Resources as the Independent Certifier will be needed as soon as the main contractor is appointed. This is likely to be in early August 2019 so an urgent decision is requested from the Chief Executive .

Information: An Independent Certifier is required as part of the external and internal project team for the delivery of a new leisure centre on Seven Brethren Bank. Funding for the post was agreed at Council on 13th March 2019 (paragraph 4.11 of report entitled “Leisure Provision at Seven Brethren”).

The Independent Certifier role will be delivered through a joint post, representing both NDC and the leisure contractor and will be responsible for certifying payments from NDC to the contractor during the construction phase of the project. As such, it’s important that both NDC and the leisure contractor are happy that the Independent Certifier has the necessary skills and experience for the job and that they will be impartial in their duties.

Currie & Brown UK Limited have the necessary experience and expertise to fulfil the requirements of the role and have a good understanding of the project. The project is fairly unique in that it is using the standard Sport England’s Design Build Operate and Maintain (DBOM) contract template, but NDC is financing the project through prudential borrowing, with the leisure operator paying off the council’s loan through twenty annual “management fee” payments. Sport England is investing significant funds in the project through its capital funding grants programme and is happy with NDC’s approach to funding the build through prudential borrowing. Sport England’s DBOM contract template requires the Independent Certifier role to be filled and has approved the suitability of Curry and Brown.

The value of the IC post is approximately £98k and the original procurement approach to the appointment was through a call-off contract from an NHS framework agreement.

Parkwood, Curry & Brown and NDC have considered three different contract templates for the IC role for this be-spoke project. The favoured template was proposed by Parkwood Leisure and has been used by Parkwood for another DBOM leisure centre project. The terms and conditions of this contract are closely aligned to the overarching DBOM contract, which is helpful as the documents will cross reference one another.

Unfortunately the preferred contract terms and the fact that the contract is a joint appointment make it inappropriate to appoint through the NHS framework as originally planned.

There is now insufficient time to run an open tender for the appointment of the Independent Certifier. The DBOM procurement has been running for over 12 months and any further delays could invalidate the tenderer’s build costs and business case, risking the whole project. For that reason an urgent decision to appoint Curry & Brown as Independent Certifier is requested, with the council’s standard contract & procedure rules set aside. Due to timings of NDC’s committee cycle there is insufficient time to take an urgent decision request to the next Strategy and Resources Committee so an urgent decision is requested from the Chief Executive.