Part 1 ITEM NO. ___________________________________________________________________ REPORT OF THE STRATEGIC DIRECTOR FOR SUSTAINABLE REGENERATION ___________________________________________________________________ TO THE LEAD MEMBER FOR PLANNING ON 7 SEPTEMBER 2010 AND TO THE LEAD MEMBER FOR CUSTOMER AND SUPPORT SERVICES ON 13 SEPTEMBER 2010 ___________________________________________________________________ TITLE: WEST SALFORD MICRO-ASPHALT CONTRACT (PHASE 36 HIGHWAY INVESTMENT PROGRAMME) ___________________________________________________________________ RECOMMENDATION: That Lead Member for Planning notes: 1. The appointment of the alternative Contractor, Kiely Brothers to undertake West Salford Micro-Asphalt Contract (Phase 36 Highway Investment Programme). ___________________________________________________________________ EXECUTIVE SUMMARY: To notes the decision that Kiely’s are offered the contract to undertake the Salford Micro Asphalt Contract (Phase 36 Highway Investment Programme) in light of the failure by Ringway to honour their tender. ___________________________________________________________________ BACKGROUND DOCUMENTS: None (Available for public inspection) ___________________________________________________________________ KEY DECISION: YES this scheme is part of the Highway Investment Programme, which is already included on the forward plan. ___________________________________________________________________ DETAILS: At his meeting on 17th August 2010, lead Member for Planning approved tenders for Highway Investment Programme (Phase 36)- West Salford Division, Micro Asphalt surface treatment. The original Lead Member Report made recommendation that Ringway were awarded the contract on the grounds that overall they submitted the lowest tender. At a very late stage the successful tenderer indicated that they would not be prepared to proceed. This put the implementation of Phase 36 (West Division) at D:\98957564.doc risk, as a failure to commence this close to the winter period would prospectively mean that there would be not start this side of Christmas, and potentially not until early spring. The next unsuccessful tenderer was able to do the work, but only on the basis that a decision was made very quickly to proceed with that contractor, or he would move men and equipment to other work in the region. The second tenderer's price, based on assessment was £445.24 more than that approved by Lead Member, and therefore only marginally more expensive. In the best interests of the City Council, and under sections (J(a)(1) - authority to accept tenders and J(a)(5) - authority to authorise, in urgent cases, any action necessary to protect the City Council’s interests) of the City Council's constitution, a decision was made by officers to proceed with Kiely Brothers and on the basis of their tender. This report is thus explaining to lead member the action that has had to be taken and the powers used to take that action. One issue that was of concern was that Kiely Brothers provided a cost for a strengthening membrane that was of an unsuitable design. However, since the tenders were returned, the streets that required a strengthening membrane have received patching works instead. There was no longer a concern over the use of the membrane, as it was no longer needed. . The tender comparison is shown in the Table: Description Micro-asphalt Ironwork adjustment Total Ringway Cost (£) 188,528.50 74,418.13 Kiely Brothers Cost (£) 174,790.00 88,601.87 262,946.63 263,391.87 For clarity, the above figures do not include the Urban Vision overheads. ___________________________________________________________________ KEY COUNCIL POLICIES: Connecting People to Opportunities; Local Transport Plan. ___________________________________________________________________ EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: Better roads should be helpful not only to the private car-user, but also to cyclists, bus-operators and users, to pedestrians, those using wheelchairs and parents using pushchairs. _________________________________________________________________________ ASSESSMENT OF RISK: Medium - The implementation of the works that will be funded through these monies will contribute to reducing the cost of third party accident claims within the City of Salford. However, the implementation of the works will improve the condition of part of the highway network and should be welcomed by the public who have been D:\98957564.doc concerned about the condition of some roads, especially after the damage caused to them by the sustained severe weather over the winter period _ ___________________________________________________________________ SOURCE OF FUNDING: Approved Highways budgets ___________________________________________________________________ LEGAL IMPLICATIONS Supplied by Provided by Richard Lester, Outstationed Locum Solicitor, ext 2129, on 5th August 2010. As noted, these works of maintenance should reduce the risk of claims arising out of the condition of the highway. As the works will inevitably involve interference with the highway, care must be taken, as usual, to safeguard highway users. Temporary traffic regulation orders, and observance of relevant statutory procedure, may be required in some cases. ___________________________________________________________________ FINANCIAL IMPLICATIONS Supplied by IMPLICATIONS Supplied by Frank O’Brien Ext 2585 The estimated spend to date is in the region of £19.5M. This leaves £2.5m of this particular budget available from 2009/10. The costs of the schemes outlined in this report will be funded from the approved Highways Investment Capital Programme for 2010-11. ___________________________________________________________________ OTHER DIRECTORATES CONSULTED: The Highway Investment Programme was submitted to each Directorate in 2005 for consultation. Appropriate consultations have taken place in relation to the preparation of the 2110/11 highways budgets ___________________________________________________________________ CONTACT OFFICER: Richard Goodwin TEL. NO. 4019 ___________________________________________________________________ WARD(S) TO WHICH REPORT RELATE(S): Barton, Cadishead, Eccles, Irlam, Little Hulton, Walkden North, Walkden South, Winton, Worsley ___________________________________________________________________ D:\98957564.doc