Decision ref
0022 2025/26
Decision date
14/07/2025
Portfolio
Business and Inclusive Growth
Wards
Town Centre
Title
Approve a contract variation, budget uplift and purchase order for SHMMI steel fabrication costs
Summary
Approval is sought to raise a purchase order, a contract variation to the Enabling Works Phase Contract, and a budget uplift associated with the fabrication of structural frames for the new St Helens Transport Interchange.
Purpose
To formally request approval that Council permits raising of a purchase order and uplifting the Enabling Works Phase Contract and budget to include the St Helens Transport Interchange structural frame fabrication costs to the value of £622,462. This also requires a contract variation to be made to the Enabling Works Phase Contract. This is a time critical workstream required to fabricate the structural frame for delivery on-site. Any delays to approval will detrimentally impact the projects programme. The DED’s for PCSA and Enabling Works are attached, as is the Structural Frame Cost Summary and OD for reserving a steel mill slot for fabrication.
Background
On 25 September 2024, Cabinet approved the acceptance of grant funding from the Liverpool City Region Combined Authority of £32.702m for the new St Helens Transport Interchange and £2.765m capital funding and £0.184 revenue grant funding for the temporary bus hub enabling activity for the project. Delegated authority was also approved to the Executive Director of Place Services in consultation with the Director of Legal & Governance and Director of Finance/Section 151 Officer to execute all necessary agreement(s) pursuant to the successful delivery of the St Helens Transport Interchange project.
DED 0106 2024/25 recommended the formal acceptance of £35,467,042 grant funding from the LCRCA and formal signature of the Grant Funding Agreement. The Cabinet report and DED 0106 2024/25 DED confirm the total grant funding committed to SHMMI.
DED 0090 2024/25 recommended that the Council enters a Phase Contract for Enabling Works with ECF to allow the commencement of the Enabling Works. The Scope of Works and DPN was attached to DED 0090 2024/25. The Phase Contract is supplemental to and incorporates the terms and conditions of the Overarching Development Agreement (ODA). By adopting a Phase Contract approach, risks can be managed more effectively, ensuring better cost control and facilitate collaborative planning with ECF & VINCI Construction.
The delivery of St Helens Transport Interchange project requires the sourcing, milling and fabrication of steel for the roof beams and columns to north and south buildings. As part of that process the Council, working alongside lead partners, reviewed the available options of Standard steel (TATA); Electric Arc Furnace (EAF) steel; and XCarb (trademarked low carbon) steel. An embodied carbon comparison was also completed (see attached SHMMI_SteelCarbon_ProgrammeBoardSlideDecember2024 document). Although XCarb performed better than EAF steel, EAF steel was selected due to surety of delivery against programme critical timelines. The whole life embodied carbon of EAF steel is 67% lower than TATA steel.
In order to meet a programme critical pathway, Operational Decision ENVP003678 was approved for the purpose of underwriting reservation ofa mill slot for steel fabrication at a cost of £37,657 due to a potential 34 week lead time (i.e. supplier instruction to place order, 2 weeks to finalise the steel order, 12 weeks to finalise the design following order being placed, 10 weeks to source steel, 10 weeks to manufacture). Please note that the underwrite was not claimed and will not be claimed going forward.
This DED now seeks approval for a purchase order to cover the cost for the manufacture/fabrication of the St Helens Transport Interchange structural frame, again to maintain a programme critical pathway. This will require a contract variation to be made to the existing Enabling Works Phase Contract and the budget for the Enabling Works Phase uplifted accordingly.
The additional costs to be underwritten is required to cover the following line items:
• Design & Engineering - For completing As-Built drawings & final design coordination with supply chain.
• Project & Commercial Management - Material procurement to maintain programme to achieve a December 2025 commencement date. Steel is being rolled now and will be soon sent to the stockiest where it will then sit and wait to be called off upon final design sign-off by VINCI. At this point the steel will then move into fabrication. Fabrication drawings and samples are to be completed and provided by the end of July 2025.
• Commitment required to onboard all panel suppliers (rainscreen system, acoustics, etc), commencing full detailing and design coordination.
• Commitment to the PV panel supplier to progress with design and detailing.
• Commitment to onboard the glazing supplier in preparation for a September fabrication slot, including coordination of design and detailing, manufacturing, schedules, etc. and the securing more materials based on coatings required for the project.
• Expenses - covering travel for supplier visits, etc.
• Risk contingency, insurance, Vinci fee.
Conclusion
This Delegated Executive Decision seeks formal approval for Council to raise a purchase order and uplift the Enabling Works Phase Contract and budget to include the St Helens Transport Interchange Structural Frame fabrication costs to the value of £622,462. This will require a Contract Variation to be made to the Enabling Works Phase Contract. This is a time critical workstream required to fabricate the structural frame for delivery on-site. The DED’s for PCSA and Enabling Works are attached, as is the Structural Frame Cost Summary and OD for reserving a steel mill slot for fabrication. Please refer to the attached St Helens Transport Interchange Costings spreadsheet for a breakdown of works and costs as supplied by Vinci Construction UK. Urgent approval is required to maintain a critical pathway for the project with a risk of programme delay by non-approval.
Risk Implications
Programme Risk: programme slippage through delay to key activity due to concern that approval for a contract variation and purchase order is not supported. To mitigate this, this DED seeks approval to raise a purchase order to complete works originally planned to be part of the St Helens Transport Interchange Main Works Phase Contract and to be within overall programme cost plan and budget. Should delay occur and/or this activity is held to be addressed under the Main Works Phase contract this will significantly and detrimentally impact the programme critical pathway and timeline creating a reputational and financial risk for the Council and its delivery partners.
Measures to Redress Risk
Approval of this DED in an expedient manner will help maintain the programme critical pathway against intended delivery timeline.
Declarations Of Interest
None
Equality Impact Assessment
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More information
Please contact David Saville on 01744 676148
