Name of GSO Paul Frost. Date 15/03/2013. Date 19/03/2013. Name of Res. Officer. Date. Date 15/03/2013 Name of Legal officer.

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1 DELEGATED POWERS REPORT NO. SUBJECT: To award of contract for Frankham Consultancy Group Ltd to undertake asbestos surveys within designated Council owned buildings Control sheet All of the following actions MUST be completed at each stage of the process and the signed and dated report MUST be passed to Governance Service for publishing All reports Governance receive draft report Name of GSO Paul Frost Date 13/03/ Governance Service cleared draft report as being constitutionally appropriate 3. Finance clearance obtained (report author to complete) 4. Staff and other resources issues clearance obtained (report author to complete) 5. Strategic Procurement clearance obtained 6. Legal clearance obtained from (report author to complete) 7. Policy & Partnerships clearance obtained (report author to complete) 8. Equalities & Diversity clearance obtained (report author to complete) 9. The above process has been checked and verified by Director, Head of Service or Deputy (report author to complete) 10. Signed & dated report, scanned or hard copy received by Governance Services for publishing 11. Report published by Governance Services to website 12. Head of Service informed report is published. Name of GSO Paul Frost Date 15/03/2013 Name of Fin. officer Catherine Peters Date 19/03/2013 Name of Res. Officer Date Name of SPO Not applicable Lesley Meeks Date 15/03/2013 Name of Legal officer Sheila Saunders Date: 18/03/2013 Name of P&P officer Andrew Nathan Date 13/03/2013 Name of officer Andrew Nathan Date 13/03/2013 Name Paul Gatrill Date 20/03/2013 Name of GSO Paul Frost Date 20/3/2013 Name of GSO Paul Frost Date 25/3/2013 Name of GSO Paul Frost Date 25/3/2013 Key decisions only: 13. Expiry of call-in period Date N/A 14. Report circulated for call-in purposes to Name of DSO N/A Business Management OSC members & copied to Cabinet Members & Head of Service Date

2 ACTION TAKEN UNDER DELEGATED POWERS BY OFFICER (COUNCIL FUNCTION) Subject Officer taking decision Acceptance of the tender for Frankham Consultancy Group Ltd to undertake asbestos surveys within designated Council owned buildings Director for Commercial Services Date of decision 20 March 2013 Summary This report gives approval to award of contract to Frankham Consultancy Group, and enter into a framework agreement, to undertake asbestos surveys within designated Council owned buildings. It also authorises the waiver of relevant Contract Procedure Rules for the requirement of two quotes. Officer Contributors Status (public or exempt) Wards affected Enclosures Martin Wilkinson, Building Services Team, Commercial Services Public All None Contact for further information: Contact for further information: Martin Wilkinson, Building Services team or martin.wilkinson@barnet.gov.uk Serial No. 1963

3 1. RELEVANT PREVIOUS DECISIONS 1.1 Cabinet, 20 February 2012, (Decision Item 6) resolved to recommend to Council the approval of the Business Planning documents as set out in the report Appendix 5 approved 5m of funding for the Asset Management Strategy. 1.2 Cabinet Resources Committee, 17 December 2012, (Decision Item 5) resolved that the proposed 2012/13 capital additions/deletions as set out in the report be approved - Section 9.8.2, accelerated spend for the Asset Management System was agreed. 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 The contract will help deliver the following priorities in the Corporate Plan , Better services with less money and A successful London suburb with some of its key strategic objectives for working with our partners and residents to keep Barnet safe and protecting the Barnet environment 2.2 The Council s objectives in the Estates Strategy regarding use of property include the following: More efficient and strategic use of property; More effective use of property; and More efficient and strategic use of public sector systems This involves the use of a number of specialist consultants to ensure compliance issues and responsibilities are being met and that the condition and subsequent priority spending within every building is known in order to aid future programming. 3. RISK MANAGEMENT ISSUES 3.1 A risk assessment has been carried out and is summarised in the following table: Risk Failure to undertake the proposed compliance works Failure to undertake the proposed condition surveys Early Warning Mechanisms/ Hazards Buildings fail to comply with current legislation Suitability of buildings not known Residual Risk Consequences / Mitigating Actions Likelihood Impact High High Health and safety issues, possible injury/death with subsequent prosecution from the Health and Safety Executive/ Liaison strategy for leaseholders. High Medium Present condition and remedial spend cannot be determined/ Target surveys undertaken piecemeal

4 Consultant liquidation/insolvency Health & Safety working in an operational building Consultants working with vulnerable people Lack of performance. Regular site inspections and programme meetings All consultants to be CRB checked Low High Delay and additional costs/ Financial check in place as consultants chosen from framework agreement Low Medium/High Injury/Experienced consultants programming the works to minimise risk. Low Medium/High Delays whilst checks are being undertaken/all operatives to be CRB checked Financial risk of not having a contract in place Greater use of consultants on a as of when basis High High Additional cost of having to do work piecemeal/ Ensure contract terms and conditions in place using economy of scale 3.2 If the proposed works are not undertaken it will expose the Council to possible prosecution from the Health and Safety Executive if an accident were to occur and the cause of the accident was considered to be as a result of non compliant services/buildings. 4. EQUALITIES AND DIVERSITY ISSUES 4.1 Under the 2010 Act the council and all other organisations exercising public functions on its behalf must have due regard to the need to eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Act; advance equality of opportunity between those with a protected characteristic and those without; promote good relations between those with a protected characteristic and those without. The relevant protected characteristics are age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation. It also covers marriage and civil partnership with regard to eliminating discrimination. 4.2 The successful consultant, in being awarded inclusion onto the London Construction Programme Framework (LCP) indicated that they will support the Council in meeting its public obligations to promote race, equality and disability equality whilst undertaking work on behalf of the Council.

5 4.3 The Asbestos Survey Contract had been procured using the LCP framework which sets out to the contractors their responsibility in supporting the Council s service delivery. 5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) 5.1 The funding for this scheme will be provided by the Asset Management Strategy fund which was approved by Cabinet on 20 February The budget is contained within the Commercial Directorate Capital Programme. An acceleration of the 2013/14 budget to be spent this financial year was agreed by Cabinet Resources Committee on 17 December Budget for the scheme is detailed as follows: Asset Management Strategy Fund Total Budget 2012/13 1,000, /13 Budget Remaining 935,000 Asset Management Strategy Fund Total Budget 2013/14 1,000, /14 Accelerated Funds 755,000 Total Budget 1,690, This work was originally included in the Schedule of Condition and Compliance contract, approved through DPR 1915 on 5 February Before entering into this contract with Mouchel Ltd, they reported that they were no longer able to undertake asbestos surveys due to limitations in their insurance cover. 5.4 It was decided due to time constraints to omit the costs of these works from their contract and to re-tender these works under the LCP framework. 5.5 The cost of the schedule of condition and compliance works is as follows and shows the proposed spends with remaining funds following the reduction in price for Lots 1 and 3: Budget Items Cost Lots 1 & (reduced price) Lots 2 & 4 649, Emergency Works contingency 250, Project Team Costs 60, Contingency 63, Total 1,401, Remaining funds 288, The cost of the asbestos works is as follows:

6 Budget Items Cost Asbestos Lots 161, Project Team Costs 11, % Contingency 8, Total 180, The contingency of 8, will be used to undertake any urgent remedial works found necessary following the survey. 5.6 There are no staffing or IT implications. 6. LEGAL ISSUES 6.1 Procurement processes must comply with the European procurement rules and the Treaty obligations of transparency, equality of treatment and non discrimination as well as the Council s Contract Procedure Rules. 6.2 On the basis that the Contractor is being drawn from the London Construction Programme Framework and the LCP was procured in such a way that the Council is entitled to use the Framework, the procurement rules and obligations have been met. 6.3 In accordance with the Council s Contract Procedure Rules, there will be a need for the Council and the successful bidder to enter into a written contract as detailed within the framework conditions in order to undertake the works. 7. CONSTITUTIONAL POWERS 7.1 The Council s constitution in Part 3, Responsibility for Functions, 6.1states that Chief Officers can take decisions, in consultation with the Cabinet Member concerned (or without consultation where it is a decision authorised to be taken by the Chief Officer under the Contract Procedure Rules or it involves the implementation of policy or earlier decision of the Council or Cabinet or Committee or it is in respect of operational matters within the Chief Officer's sphere of managerial or professional responsibility and is not significant in terms of budget or policy) 7.2 Council Constitution, Part 4 Contract Procedure Rules, section 6.11 provides as follows: 6.11 Before promoting the procurement of a new or joining a pre-existing framework agreement, the Director of Commercial Services must be satisfied that such an approach represents the most economically advantageous solution for a service, work, or supply provision and complies with the relevant EU Regulations on the use of such agreements. Before procuring or entering into a framework agreement, the Director of Commercial Services shall be satisfied that: the term of the arrangement shall be or is for a period of no longer than four years duration;

7 the terms and conditions of the arrangement do not compromise the Council s contractual requirements; the parties to the arrangement are recognised public bodies or providers from the private sector; full, open and proper competition in respect of the creation of the framework agreement has taken or will take place in accordance with the relevant EU Regulations and/or relevant Contract Procedure Rules the framework is to be accessed in accordance with procedures defined by the framework contract owner; Preference should be given to use of any Government Procurement schemes e.g. Government Procurement Service (GPS), formerly OGC/Buying Solutions The Director of Commercial Services has confirmed that the framework agreement represents a prudent, efficient and economical way of ensuring compliance with procurement rules; and the Director of Commercial Services has given approval to join the framework agreement. 7.4 The Council s Contract Procedure Rules at Section 6.1 require at least two written competitive quotes to be returned for any expenditure between 75,000 and 173, Section 5.7 of the Council s Contract Procedure Rules makes provision for Urgent/Emergency Procedures & Waiver of Contract Procedure Rules. Directors/Assistant Directors may take decisions on urgent or emergency matters as set out in the Leader s Scheme of Delegation providing they report afterwards to the relevant decision making body setting out the reasons for the urgency. Such decisions include waiver of the Contract Procedure Rules where this is justified on the basis of urgency and one or more of the matters set out in below the contract is for works, supplies or services that are required in circumstances of extreme urgency that could not reasonably have been foreseen. 7.6 This criteria for the waiver has been met and is detailed in Paragraph 8.9 of this report. 8. BACKGROUND INFORMATION 8.1 Currently the Council s Building Services Team oversees the maintenance and compliance testing of mechanical and electrical services within the Council s public buildings, offices and schools that sign up to the team s maintenance traded service. In the case of leased and outsourced Council buildings the responsibility for compliance rests with the leaseholders and management companies, with the Council still holding responsibility to ensure that all relevant legislation is complied with. 8.2 It is now apparent that in the vast majority of cases the leaseholders are not fully complying with their statutory obligations thus exposing the Council to considerable risk of prosecution if an accident or incident occurred. 8.3 The full condition of the Council s building stock is currently unknown as the majority of buildings have not been subjected to a condition survey for many years. Having this

8 information will allow the Council to produce a full asset data base which will aid future funding programmes and building suitability decisions. 8.4 Five consultants within the relevant lots of the LCP Framework were approached to provide prices for undertaking asbestos surveys within approximately 250 designated buildings throughout the borough. The building types range from community buildings, depots, residential homes commercial (retail), park buildings, sports centres and allotments. 8.5 Frankham Consultancy Group Ltd were the only one of the five framework suppliers that submitted a tender price of 169, and this is considered to represent value for money. Their tender return details their experience in successfully undertaking similar works for a range of clients and is less than sum provided by the previous company that withdrew their tender for the asbestos element of the work. 8.6 The four remaining tenderers failed to submit a price based mainly on concerns of their ability to deliver the project on programme due to their present commitments. 8.7 It is recommended that the requirement for two written competitive quotes as set out in the Contract Procedure Rules is waived for the following reasons: The unexpected decision by the original consultant (Mouchel Ltd) to omit asbestos surveys from their specification occurred at a time critical stage in the programme and the commencement and completion of asbestos surveys is now a matter of extreme urgency. The deadline for completion of the programme is 30 th April This is so that the information gathered is available for agreement of Key Performance Indicators in respect of the NSCSO commission prior to commencement of this contract. Completion of the project will establish the extent of potential liability to which the Council may be exposed in terms of statutory compliance for asbestos and so more effectively manage any risks that may arise. It is preferable that the Council undertake this task themselves so that they are confident of the quality of the information provided. Note that the personnel responsible for delivery of this task are generally being transferred to Capita on outsource. The timescale for completion of the instruction is now six weeks including lead-in period. The original timescale was twelve weeks (determined before the project came under pressure from the imminent outsource date).

9 9. LIST OF BACKGROUND PAPERS 9.1 None. 10. OFFICER S DECISION I authorise the following action: 10.1 Waiver of Contract Procedure Rule 6 and Table which require that at least 2 competitive quotations be returned - for the reasons set out within this report; 102 The award of a contract to Frankham Consultancy Group Ltd. at a value of 169, (excluding VAT) for the undertaking of asbestos surveys within designated Council-owned buildings, subject to the completion of all necessary legal and other documentation. Signed Director of Commercial Services Date 20 March 2013