Agenda item

Report of the Assistant Director – Highways and Public Protection

Further to Minute No. 103 of 4 January 2024, the Cabinet considered the report of the Assistant Director – Highways and Public Protection seeking approval to appoint Balfour Beatty under the Scape Framework to provide Early Contract Involvement in the development of the works information for the second Phase of the Maritime Corridor Scheme, with a view to a further appointment to deliver the works. The Maritime Corridor Scheme sought to deliver measures in the south of the Borough to improve access for all highway users to employment sites. The Scape Framework allowed a contractor to be appointed during the scheme design and development stage. For this commission, Balfour Beatty would revise the previously completed Feasibility Report at no cost, followed by an Early Contractor Involvement stage during which a Target Cost was established and other pre-construction activities undertaken leading to a Contract to deliver the works. Balfour Beatty had been appointed to deliver Phase 1 of the works under the same framework. Council approval was required for additional sums in the Capital Programme over £1m in value. The second Phase of the Maritime Corridor Scheme was expected to cost approximately £12.15m and a Grant Funding Agreement had been received for this amount. The report also sought approval for the signing for the Grant Funding Agreement for Phase 2 and a recommendation that the funding was brought within the Council’s Transport Capital Programme.

Cabinet Members raised the following issues:

·       The strong social value commitment across the scheme, particularly with regard to the impact on young people, and how this was conveyed to the wider community.

·       Consultation on Phase 2 of the Scheme with elected Members and the wider community.

·       The provision of newsletters on the Scheme to Cabinet and Ward Members.

Decisions Made:

That

(1)      the Council be recommended to approve a supplementary capital estimate for £12.15m externally funded using the City Region Sustainable Transport Settlement (CRSTS) from the Liverpool City Region Combined Authority (LCRCA) for the delivery of Maritime Corridor Phase 2, pending the signing of a grant funding agreement from the LCRCA;

(2)      the appointment of Balfour Beatty under the Scape Framework to update the previously developed Feasibility Report to focus on the delivery of Maritime Corridor Scheme Phase 2 at no cost to the Council, be approved;

(3)      delegated authority be granted to the Chief Legal and Democratic Officer, following consultation with Cabinet Member - Housing and Highways, to sign the Grant Funding Agreement to cover the costs for the delivery of Maritime Corridor Phase 2;

(4)      delegated authority be granted to the Assistant Director - Highways and Public Protection, following consultation with the Cabinet Member - Housing and Highways, to award the Contract for Early Contractor Involvement (ECI) in the construction of Maritime Corridor Phase 2 works to Balfour Beatty; and

(5)      delegated authority be granted to the Assistant Director - Highways and Public Protection, following consultation with the Cabinet Member - Housing and Highways, to award the Contract for the construction of Maritime Corridor Phase 2 works to Balfour Beatty, subject to a satisfactory assessment of the outputs from the ECI process.

Reasons for the Decisions:

With the Procurement Strategy adopted for Phase 1 having delivered strong outcomes and Balfour Beatty having a good knowledge of the works through both their engagement on Phase 1 and the Feasibility exercise, it was strongly recommended that they should be appointed for the various stages of Phase 2, subject to successful  appraisal by the Project Team at the various stages.

Alternative Options Considered and Rejected:

The works could be delivered using a tendering process. This would introduce some further competition into the procurement process. However, the project planning would not have the benefit of contractor input until following the award of the contract for the works, thus increasing the risk of delay and claims. There was also the risk that contractors might choose not to tender due to current workloads. The tender appraisal process would also shorten the time available for construction and therefore increase the risk of the funds not being expended by the deadline.