Agenda item

To consider a report by Councillor Julie Matthews, Lead Member for Corporate Strategy, Policy and Equality (copy enclosed) seeking Cabinet approval to extend the current North Wales Construction Partnership Framework for one year.

RESOLVED that Cabinet approve extending the Framework for one year which will provide time for projects to continue to be let as per the programme and allow time for expected new UK and Welsh Government procurement legislation to be released and/or embedded into the processes, to be utilised when procuring a new Framework.

Councillor Julie Matthews presented the report seeking Cabinet approval to extend the current North Wales Construction Partnership Framework (NWCP) for one year, to allow time for projects to continue to be let as per the programme and for the forthcoming new UK and Welsh Government procurement legislation to be embedded into processes and utilised when procuring a new framework.

The NWCP had been very successful and the Framework Manager provided some background to the creation of the framework and its management by Denbighshire on behalf of the six North Wales local authorities.  The framework played an important role as the main procurement vehicle for large public sector construction projects in North Wales.  Details of the value of the five procurement lots were provided in order to maximise benefits for local contractors who could deliver projects in the lower value bands and national contractors to the higher value bands but with a commitment to use the local supply chain.  Details of the projects and value of those projects to date were provided together with benefits achieved over the last few years, including community benefits, job creation, training opportunities, and a host of other qualifications in the local supply chain.  The current framework expired in May 2023 and the Framework Manager outlined how the effect of Covid-19, the current economic climate, and the nature of how capital projects were funded had impacted the delivery of the NWCP works programme together with the rationale behind the recommendation to extend the current framework.

Councillor Emrys Wynne welcomed the success of the framework and its positive impact on Denbighshire and the region and hoped that any forthcoming changes to the procurement legislation would allow those positive practices to continue.  The Framework Manager confirmed it remained an objective to continue to deliver training and recruitment to the local communities to deliver projects and to target individuals further from the market and incentivise young people in schools to join the construction industry, and to embed best practice developed through the framework into the Council, providing illustrative examples of those practices.

Councillor Merfyn Parry felt there would be merit in reviewing the value of the procurement lots given the significant rise in inflation and construction costs which may allow more local contractors to access higher value bands.  The Framework Manager advised that the procurement process was governed by regulation and the framework was required to operate throughout its life by the way it had been designed at the outset.  However, when embarking on the re-procurement process the value bands would be reviewed together with other approaches and lessons learned under the existing framework, and much work had been carried out to maximise benefits to local businesses.  In response to a follow up question, the framework was explained as the process by which projects were delivered but each project was considered individually and matched with a procurement lot depending on its value, providing the opportunity to bid for those projects.  To re-procure a new framework at this time would divert resources from project delivery into delivering the framework but an extension to the current framework for one year would provide more time for the relevant legislation to come through and the lots to be set up in the procurement strategy for the framework, and also provided time to concentrate on individual projects.  Councillor Matthews added that legislation was also expected in relation to social partnership with further ambitions to support local businesses.  A one-year extension would provide a greater opportunity to shape the procurement in line with the Council’s vision for Denbighshire and maximise opportunities for local businesses and benefits to the local economy and residents.

RESOLVED that Cabinet approve extending the Framework for one year which will provide time for projects to continue to be let as per the programme and allow time for expected new UK and Welsh Government procurement legislation to be released and/or embedded into the processes, to be utilised when procuring a new Framework.

At this point (11.25 am) the meeting adjourned for a refreshment break.