Executive Decision Report

Decision maker Councillor Timothy Coleridge

Date decision entered onto Forward Plan: Forward Plan details 13/11/2012 Forward Plan reference: 03885/12/H/A

Report title MARLBOROUGH PRIMARY SCHOOL, DRAYCOTT AVENUE, SW3 – APPOINTMENT OF CLIENT-SIDE CONSULTANT

Ward Hans Town

Reporting officer Michael Clark Director for Corporate Property and Customer Services

Key decision Yes

Access to Public (Part A) with Confidential/Exempt (Part B) Appendix information Information relating to the financial or business affairs of any classification particular person (including the authority holding that information)

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1 EXECUTIVE SUMMARY

1.1 This report seeks your approval to the Council appointing Bovis Lend Lease International Ltd as the Project Manager / Quantity Surveyor / Employers Agent Consultancy Service provider (the “Services”) for RIBA Stages C to L (inclusive) for the New 2 Form Entry Primary School, Retail and Office Accommodation at the existing Marlborough Primary School site in South Kensington, London for the sum of £329,350 (Three Hundred and Twenty Nine Thousand, Three Hundred and Fifty Pounds).

1.2 This property is vested in the General Fund.

2 RECOMMENDATIONS

2.1 I recommended that the Council approves entering into Contract with Bovis Lend Lease International Ltd to carry out the Project Manager / Quantity Surveyor / Employer‟s Agent Consultancy Services for RIBA Stages C to L (inclusive) using the Government Procurement Service Framework Agreement ref RM457 prior to the main contract for the New 2 Form Entry Primary School, Retail and Office Accommodation Project. In November 2012 there was a Cabinet request for a £400k allowance to cover this commission. The value of the commission will be £329,350.

2.2 Confidential/exempt information is contained in the Confidential Part B Appendix as it details information relating to the financial or business affairs of any particular person (including the authority holding that information).

3 REASONS FOR DECISION

3.1 Consistent with our procurement strategy for delivering our high profile capital programme we look to engage an external client side team of Project Managers, Quantity Surveyors and Employers‟ Agents to support our in house team of project managers. This strategy, as evidenced on our current capital programme, has demonstrated, and ensured, greater certainty over time, budget and proactive risk management thereby projecting the Council. . The commencement on site is expected to be summer 2014 with a programme of 20 months and completion scheduled for April 2016. The current construction budget is between £22 Million and £25 Million in total for both buildings.

4 BACKGROUND

4.1 In November 2012 Cabinet authority was given to proceed with a variety of Consultancy Services for the New 2 Form Entry Primary School (with SEN), Retail and Office Accommodation Project with a total budget of £1 million delegated to the Cabinet Member for Housing and Property for the decision to enter into Contract as required. The costs for these Services will be met from the agreed budget.

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4.2 The Council has invited Bids for the provision of Client-side services, consisting of Project Management, Project level Quantity Surveyor and Employer‟s Agent. The Council requires support for the Project from external Consultants for the following Services to deliver the scheme via a single stage Design and Build procurement process through an existing OJEU compliant Framework Agreement. Project Manager Quantity Surveyor Employer‟s Agent 4.3 The mixed-use development scheme will form a vibrant „community hub‟. The facility will need to be delivered within an agreed budget and should be inclusive and respond sensitively to the existing urban setting whilst encouraging greater community cohesion.

4.4 The has a reputation for independence, and insistence on top quality design, and the scheme will be appraised prior to the submission of a Planning Application by the Council‟s Architecture Appraisal Panel.

4.5 The Council has a long standing need for more primary school places, and is keen to provide 21st Century teaching and learning environments. This scheme will re-provide a 2 Form of Entry school and 30 place nursery, with a new specialist SEN unit alongside new retail and office accommodation. The existing school will require demolition on the existing site.

4.6 The proposed development is in close proximity to existing residential and commercial buildings. The emerging design and associated consultation will need to give consideration to the needs and views of these neighbours – including overlooking, privacy, and rights of light, party wall matters, as well as aerial views, access and noise. The Council is keen to explore various opportunities for unlocking the potential of the site, which include options for generating capital and revenue receipts through the provision of retail and commercial units and possibly residential accommodation.

4.7 The design of the school will need to provide for a range of functions outside the core teaching and learning. There is also a requirement for a 16-place SEN unit for pupils with Autism Spectrum Disorders (ASD) to be linked to the school.

4.8 Given that the school will be located in a tight urban, mixed-use site, the consideration of the nature of external spaces is key to the operation of the school. A key factor is to be able to provide suitable external space for a range of activities such as play, sports and outdoor learning.

4.9 Safe and secure access to the school and SEN unit will also be an important consideration given the nature of the new development and the potential range of retail/commercial tenants with servicing requirements.

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5 PROPOSAL AND ISSUES

5.1 The Services will be provided by the Consultants under the terms of the Government Procurement Service GPS Framework Agreement ref RM457 and the Form of Agreement incorporating the NEC3 Professional Services Contract June 2005 (with amendments June 2006).

Bidder Ranking Position Score Preferred A 1st 86.21% Company B 2nd 78.33% Company C 3rd 65.80% Company D 4th 52.86%

5.2 Detailed information regarding the above table of contents is shown in the confidential evaluation information section in the Part B Appendix.

6 OPTIONS AND ANALYSIS

6.1 Not to proceed with the Consultancy Services. There would then be a risk of delay if, for example, the necessary information was not available for the Main Contractor in time for the anticipated construction start date.

6.2 To proceed with the Consultancy Services as recommended, reducing risks for the programme, particularly those which relate to the key target of opening the school in April 2016.

7 CONSULTATION

7.1 The Cabinet Member for Housing and Property has been consulted and concurs with the recommendation of the report.

8 EQUALITY IMPLICATIONS

8.1 The Council has had regard to its public sector equality duty contained in Section 149 of the Equality Act 2010.

9 PROCUREMENT PROCESS

9.1 These Services have been procured via the GPS ref RM457 - Project Management & Full Design Team Framework Agreement in accordance with the rules applicable thereto. This process complies with the Council‟s Contract Regulations.

9.2 The New 2 Form Entry Primary School, Retail and Office Accommodation works Contract was procured through further competition under the GPS Framework Agreement.

9.3 This is a fully EU compliant procurement route which avoids the cost and time of undertaking a separate OJEU procurement process which can add up to 3 additional months to the selection process and up to £100,000 in internal and

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external resource management costs. There is also an increased risk of legal challenge from unsuccessful bidders. This has become more common in recent years when Consultants have realised that there may be a possibility of either re-opening tender processes or winning very large sums in damages. This is far less likely when using a Framework as the pool of challengers is limited to the Consultants appointed to the Framework.

9.4 The procurement of this Service has been carried using the GPS Framework Agreement and therefore complies with the Council‟s Contract Rules.

9.5 The following Companies are appointed to the GPS Framework:-

Bovis Lend Lease International Ltd. Symonds Ltd Drivers Jonas LLP E C Harris Solutions Ltd Faithful and Gould Ltd Gardiner and Theobald LLP Jacobs UK Ltd Mace Ltd Mott MacDonald Ltd Pick Everard Rider Levett Bucknall Ltd Turner and Townsend

9.6 Bids were invited from all Companies on the Framework (as stated above) and subsequently received from the following:-

Bovis Lend Lease International Ltd. Capita Symonds Ltd Drivers Jonas LLP E C Harris Solutions Ltd Gardiner and Theobald LLP Pick Everard Rider Levett Bucknall Ltd Turner and Townsend

9.7 The bids were evaluated using the criteria stated in the Invitation to Quote (ITQ). The evaluation process revealed the preferred bidder, three other compliant bids and the remaining four non compliant bids. The preferred bidder was identified to be Bovis Lend Lease International Ltd.

9.8 The Head of Strategic Procurement has been consulted and all comments received have been addressed and incorporated within this report.

10 PLANNING IMPLICATIONS

10.1 The Director of Planning and Borough Development has been consulted and comments that there is no objection in principle to the redevelopment or range

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of uses proposed subject to resolution of detailed issues of design, transport and residential amenity.

11 LEGAL IMPLICATIONS

11.1 The Director of Law has been consulted and comments that this report confirms the Council‟s Contract Regulations have been adhered to.

11.2 All threats and opportunities identified to the proposals in this report have been considered and risk mitigation actions addressed wherever possible.

12 FINANCIAL AND RESOURCES IMPLICATIONS

12.1 The Group Finance Manager, Corporate Services, has been consulted and comments that the financial implications are set out in this report and in the confidential Part B report. Subject to successful completion of the Project it is anticipated that these costs will be covered by S. 106 contributions. In the event of the Project not proceeding to completion, the initial costs outlined in this report will need to be met from existing Council capital resources.

12.2 This commission will be forward funded by RBKC until August 2013, after which time the funding will be provided via the Section 106 Agreement.

Michael Clark Director for Corporate Property and Customer Services

Nicholas Holgate Town Clerk and Executive Director of Finance

Local Government Act 1972 (as amended) Background papers used in the preparation of this report: Procurement Evaluation Documents

Contact officer

Ernest Raw Construction Procurement Specialist Corporate Property The Royal Borough of Kensington and Chelsea [email protected]

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FOR COMPLETION BY AUTHOR OF REPORT:

Date of first appearance in Forward Plan: 13 November 2012 Key Decision reference identifier from Forward Plan: 03885/12/H/A Local Government Act 1972 (as amended) Background papers used in the preparation of this report: Procurement Evaluation Documents

Contact officer: Ernest Raw, Construction Procurement Specialist, [email protected]

Cleared by Finance (officer‟s initials) LM

Cleared by Legal (officer‟s initials) AJ

FOR COMPLETION BY GOVERNANCE SERVICES:

Report published on: 29 January 2013 Reported circulated to: Housing and Property Scrutiny Committee on 29 January 2013

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