Decision details

This decision relates the contractual agreements for the provision of electrical infrastructure works by utility providers at Bath Quays North (BQN). Approval is sought to novate the “Council/Western Power Distribution (WPD), Point of Connection agreement (PoC)” to “PowerOn Connections Ltd (PowerOn)”.

Novation has been recommended by the Councils development partner (L&G). The novation will allow PowerOn to have sole responsibility for the management and co-ordination of the electrical installation direct with WPD. The novation will also place control of electrical supply with PowerOn.

PowerOn has been appointed by the Council for the main electrical infrastructure works. The appointment arises through the BQN Early Works agreement and is managed by L&G and their development manager.

Background:
The Council has appointed L&G as its development partner for the Bath Quays North (BQN) regeneration development. To secure the electrical capacity for BQN, a point of connection (PoC) was procured with WPD. During the course of 2021 and 2022, PowerOn have been engaged by L&G to execute off site preparatory works, the installation of a temporary substation and diversionary works co-ordination. It is recommended that the WPD PoC agreement is now novated to PowerOn to allow direct management control of WPD by PowerOn.

Novation Contractual Matters.
Novation of the WPD PoC agreement to PowerOn will take place using WPD standard terms of contract. The novation agreement has been signed by PowerOn and requires the signatures of the Council and WPD.

Additional assurances have been agreed between the Council and PowerOn and recorded in a side letter agreement. The side letter agreement is to be executed simultaneously with the Council/WPD/PowerOn novation.

Decision:

Novate the WPD PoC agreement to PowerOn Connections Ltd under the WPD standard novation agreement terms.

Enter into a further side letter agreement between the Council and PowerOn Connections Ltd.

Alternative Options Considered:
The Council may opt to retain the WPD PoC agreement however this will require the Council to actively manage this agreement to co-ordinate with the PowerOn Connections Ltd works. This has been in assessed in the pros and cons review and was considered to present possible delay risk claims from PowerOn Connections Ltd in the event of any misalignment in the activity of these two organisations.