B1017 - Bridgend West Pre-Construction Services Agreement

Description

Bridgend County Borough Council (BCBC) is carrying out a programme of modernisation of the primary school estate in Bridged West through delivery of two new primary schools, which will be funded under the Welsh Government’s 21st Century Schools programme. The project involves design and construction of the schools, demolition and site clearance, associated external works and infrastructure removal and diversion (the Works). BCBC carried out a mini-competition to appoint a contractor to deliver the Works under the SEWSCAP 4 Construction Framework. In view of the current condition of the existing primary school estate in Bridgend, BCBC commenced the mini-competition on 5th February 2025, prior to receipt of planning permission from the local planning authority team. Tenders were received by BCBC on 30th April 2025 . As a result of delays in the planning process, BCBC was not in a position to finalise the award of the contract for the Works until September 2025. The successful supplier was Willmott Dixon Construction Limited (WDCL) with a tender price of £35,155,320.09 plus VAT.. As part of the planning permission, the local planning authority and highways authority have required BCBC to carry out additional highway-related works as part of the Works. The costs of these works are to be confirmed but are expected to be in the region of [ £1.9m - £2m plus VAT ]. In addition, BCBC anticipates that the cost of the Works will increase by approximately [ £2.35m ] to reflect the impact of inflation since tenders were submitted. In order to finalise the cost of these additional works, BCBC intends to award a pre-construction services agreement (PCSA) directly to WDCL to carry out the necessary design and engineering services in reliance on Section 41 of the Procurement Act 2023. Furthermore, in order to mitigate the effect on the programme for delivery of the Works, the PCSA will also provide for WDCL to carry out site investigation work and to manage the diversion of existing utilities. The activities covered by the PCSA are the PCSA Services. The diversion work will be carried out by the relevant statutory undertaker. The value of the services to be carried out under the PCSA is [£697,261.00 plus VAT]. In order to enable WDCL to provide a firm price for the additional works, which have been deemed to be necessary by the local planning authority and highways authority, it is necessary for BCBC to instruct WDCL to carry out the PCSA Services. BCBC does not consider it feasible for a third party designer or contractor to carry out the PCSA Services, in view of the need for WDCL to rely on the outputs of the PCSA Services, only WDCL can enter into the PCSA. In view of the condition of the primary school estate the Works are urgent and due to the conditions imposed by the local planning authority and highways authority, there is no reasonable alternative to BCBC awarding the PCSA to WDCL. As such, BCBC considers that the justification for direct award under Schedule 5, paragraph 6 of the Procurement Act 2023 applies to the PCSA. Following conclusion of the PCSA Services and calculation of the impact of inflation, BCBC intends, subject to approvals, to enter into contract with WDCL to deliver the Works, which will incorporate the PCSA Services.

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