Decision details
Waste Infrastructure programme, Pixash scheme
Decision Maker: Corporate Director (Place)
Decision status: Approved
Is Key decision?: No
Is subject to call in?: No
Purpose:
In accordance with the Cabinet Decision E3306,
giving full approval of the budget for the construction phase, and
the duly amended budget in the Council Budget and Council Tax
report, February 2022, the Director of Place Management in
consultation with the S151 Officer, now authorises the sealing of
the Building Contract.
Following the issue of a Limited Letter of Intent in early January
2022, to Northstone, first stage site clearance and tree/hedgerow
removal works started on site at Pixash in mid-February. These
works were completed and a continuation of groundworks and ongoing
contract design development and mobilisation has been achieved to
ensure continuity to the full scheme start.
Decision:
To authorise the completion of the Building
Contract with the contractor Northstone Limited and all ancillary
agreements necessary to execute the contract, to enable the
construction to proceed in line with the contract programme and
approved budget.
Alternative options considered:
Option: To not go ahead which would increase
the risk of significant further cost inflation, and the potential
need for a re-procurement exercise. This is not recommended due to
the current construction market which is experiencing very high
levels of inflation and labour and materials shortages. The market
is experiencing more disruption and cost pressures due to the
Russia-Ukraine war.
Delay in contract award in entirety would further increase contract
costs and impact other related works and services, where
prolongation of lease agreements and potential loss of grant
funding are further risks to programme and cost.
Publication date: 12/05/2022
Date of decision: 12/05/2022
Accompanying Documents: