Decision ref
0045 2024/25
Decision date
20/09/2024
Portfolio
Inclusive Growth and Regeneration
Wards
Newton-le-Willows West
Title
Approval to procure - Earlestown Market Square & Public Realm Levelling Up Fund Round 2 Projects
Summary
This decision seeks approval to commence procurement for the Market Square & Public Realm element of the Earlestown Levelling Up Fund Round 2 Regeneration Programme (Regeneration through Culture, Community and Heritage). The report further seeks approval for the execution of necessary legal documentation relating to the outlined procurement activity.
Purpose
The purpose of this report is to seek approval to commence procurement activity pursuant to the delivery of the Market Square & Public Realm elements of the Earlestown Levelling Up Fund Round 2 programme (Regeneration through Culture, Community and Heritage).
Background
The regeneration of Earlestown town centre is a strategic regeneration priority for St Helens Borough Council. Guided by an adopted Masterplan Development Framework, the Council has developed ambitious regeneration proposals that have secured Levelling Up Funding Round 2 (LUF2) support to deliver against the Council's Borough Strategy 2021- 2030.
The Earlestown LUF2 Regeneration Programme (Regeneration through Culture, Community and Heritage) will deliver three bold and transformative interventions within Earlestown. The programme will revitalise Earlestown’s historic Market Square & Public Realm; reimagine its Grade-II listed vacant Town Hall as a community and workspace hub; and improve safety and amenity at its rail station. These complementary projects will drive substantial regeneration and reinvigorate Earlestown as a place in which to live, work and invest.
The Council’s Development Partner, English Cities Fund (ECF), have been appointed as the Council’s Development Manager for the Earlestown Regeneration Programme and have supported the Council is developing ambitious proposals for Earlestown and will support procurement of a suitably experienced partner(s) to realise the Council’s ambitions.
A Procurement Strategy for the Market Square & Public Realm elements, produced by Arcadis on behalf of ECF, guide the recommendations in this report and is appended. A separate Procurement Strategy for the Town Hall element is currently being developed recognising the specialist nature of the project given its heritage status and need to secure a specialist in conservation and heritage projects
Market Square & Public Realm
The Council’s vision, informed by public consultation, will see the historic Market Square & Public Realm transformed into a high-quality flexible and pedestrian friendly events space that will support town centre animation, improve visual amenity, environmental quality, and connect the town’s heritage assets at the former Town Hall and Rail Station. Construction of a new all-weather canopy, inspired by the nine-arches viaduct, will provide Earlestown’s historic market with the tools for it to thrive for future generations of shoppers and market traders.
To deliver this vision, ECF have commissioned and completed RIBA Stage 3 design work to shape and inform the Council’s proposals. RIBA Stage 4 (Technical Design) will run in parallel to the procurement exercise and be completed following selection of a preferred bidder. It is now necessary to commence a procurement exercise to appoint a construction partner to deliver the Council’s proposals.
ECF have commissioned Arcadis to develop a Procurement Strategy that considers all available procurement routes to appoint a construction partner. The recommendation of this strategy is to utilise the RISE Construction Framework given the quality of contractors, anticipation of a high-response rate, and negotiated discounted fee structure (0.75% with 0.19% ringfenced for third sector intervention and prevention projects to impact on St Helens communities) for use of the framework.
To utilise the RISE Construction Framework, the Council is required to enter into a ‘Members Agreement’. The ‘Members Agreement’ is between Safe Regeneration Ltd (the framework owner), Rise Construction Framework Limited (the framework manager) and the Council. Once executed, the Members Agreement shall permit the Council to enter into a subsequent Framework Agreement with Suppliers.
An Expression of Interest exercise was undertaken in August 2024, with the ten suppliers on the General Construction Band 4 (£5m - £15m works) of the RISE Construction Framework. Of the ten suppliers, 4 confirmed their interest in the project, all of whom are experienced in the type of works package to be delivered as part of the project.
Bidders will be required to provide a qualitative and quantitative assessment. The qualitative assessment will focus on the suppliers’ experience and relevant case studies, delivery of the works with consideration to the continued operation of Earlestown Market and town centre businesses, cost management, and social value. Whilst RIBA Stage 4 Technical Design work is being developed, the quantitative assessment will look at contractors’ preliminaries, overheads, and profit.
Once a preferred bidder has been selected, they will be asked to price the Council’s RIBA Stage 4 Technical Design to provide a detailed project cost on an open book basis. The preferred bidder will enter into contract with the Council’s Development Manager ECF on a fixed price basis under a ECF Building Agreement.
STAR Procurement have been engaged as part of the pre-tender process and will support partners in providing expert procurement advice.
Conclusion
Agreement is sought to commence procurement activity (including approval for the Director of Legal and Governance to execute the necessary legal documentation) pursuant to the appointment of construction partners for the Market Square & Public Realm elements as outlined in this decision proposal.
Commencement of procurement activity is a significant milestone in the delivery of the Earlestown Regeneration Programme and demonstrates the Council’s commitment to the revitalisation and reimagination of Earlestown town centre.
A Procurement Strategy is currently being developed for Town Hall element of the Earlestown Levelling Up Fund Round 2 programme (Regeneration through Culture, Community and Heritage) and will be brought forward for approval shortly.
Risk Implications
The Market Square element of the Earlestown LUF2 Regeneration Programme requires planning permission, which has been submitted and is scheduled for determination in the Autumn.
As with other capital projects cost pressures associated with inflation and availability of materials could impact the overall project budget. This will be mitigated by the competitive tender process and ongoing review of the budget status of the programme alongside value engineering activity and a suitable contingency provision within the project budget.
A full risk assessment has been undertaken for the project and the results reflected in the Full Business Case.
Risk management is an essential element of ongoing review and project management and is included within the Project Highlight Reports and returns to the Department of Levelling Up Homes and Communities. Risks are mitigated through regular contact with Project Leads and assurance meetings.
Measures to Redress Risk
Pre-planning consultation has been undertaken and an outline planning submission has been approved for the Market Square & Public Realm elements.
Value engineering activity is ongoing, alongside the continued exploration of additional funding, and a suitable project contingency is contained within the project budgets and remains under review.
Declarations Of Interest
None
Equality Impact Assessment
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More information
Please contact Mark Bingley on 01744676789
