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Contracts' Procedural Rules

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 1.0 Contract Procedure Rules

1.1 Introduction

 

These Procedure Rules, which are required by Section 135 of the Local Government Act 1972, apply to all contracts that the Council enters into after the 1st April 2006.  Any Tender already in place for works, materials or services will be governed by the Procedure Rules in force at the time the Tender was issued.

 

1.2 Value for Money

 

In some parts of these Procedure Rules, Officers are given discretion in what they do, or are able to issue instructions based on that discretion. If this is the case, then they are only able to exercise that discretion or issue such an instruction if they can show that it allows the Council to achieve value for money and the efficient provision of services by or to the Council in all the circumstances.

 

1.3 Best Value

 

When preparing Contracts, Officers must be guided by the requirements of Best Value and must follow all guidelines issued by the Head of Corporate Governance in consultation with the Head of Legal and Democratic Services

 

1.4 Interpretation and Definitions

 

1.4.1 These Procedure Rules are to be read in the context of legislation and relevant European Community Rules dealing with publicity, the compilation of Select Lists, issuing invitations to tender and anything else which relates to the letting of Contracts by the Council. These Contract Procedure Rules shall always be considered in the light of any procurement strategy, Government legislation and EC Rules. Regard must also to be had to the Council’s Procurement Code of Practice.

 

1.4.2 The Head of Legal and Democratic Services is responsible for the interpretation of these Contract Procedure Rules. The Head of Legal and Democratic Services is also responsible for the preparation and guidance on particular aspects of Procedure Rules, including European Public Procurement.

 

1.4.3 The singular shall include the plural and the masculine gender shall include the feminine gender and vice versa.

 

1.4.4 In these Contract Procedure Rules, the following expressions have the following meanings:-

 

Executive

Includes any Committee or Sub-Committee of the Executive Contract Includes any Official Order issued by a Head of Service or other authorised Officer

Contractor The legal personality with which the Council contracts

Financial Procedure Rules

The Financial Procedure Rules of the Council
Goods and Services As defined in the European Procurement Directives

Audit Partnership Manager

The appointed Officer or any Officer authorised by him
Official Order

An Official Order issued in accordance with Financial Regulations

Quotation The written statement of the market price of specified goods,  services or work
Select List The Council’s Select List of Contractors
Head of Service

The appointed Head of Service, Chief Executive, Deputy Chief Executive, Director or any person authorised by either of them

Tender

A formal written offer made in competition to supply specified goods or services or carry out specified work at a stated cost or rate

Work or Works As defined in the European Procurement Directives

 

1.4.5 Subject to 1.5 below these Contract Procedure Rules apply to all Contracts between the Borough Council and any Contractor (including consultants) whether or not the Contract involves the Council paying or receiving money or any other consideration.

 

1.5 Exceptions to Procedure Rules

 

These Contract Procedure Rules shall apply to all Contracts except:-

 

(a) if the Council or the Executive decides otherwise and gives its reasons in the Minutes.

 

(b) in the case of an emergency or other special circumstance identified by the appropriate Head of Service. If this happens, the Head of Service must either submit a report to the next available meeting of the Executive explaining why he considered it was an emergency or special circumstance or, alternatively, include a report in the Information Digest. The report must identify the particular Procedure Rule(s) which have not be followed and the reasons.

 

(c) Contracts of employment entered into by the Personnel and Development Manager in relation to directly employed staff. Where Consultants or other individuals (including temporary staff) are appointed to carry out specific services, Contract Procedure Rules do apply.

 

(d) when dealing with the acquisition or disposal of interests in or rights over land.

 

1.6 Amendment and Review

 

1.6.1 These Contract Procedure Rules may only be amended by submitting a report to the Executive which will make recommendations to the Full Council.

 

1.6.2 The Head of Financial Services must, in consultation with the Head of Legal and Democratic Services, review the financial limits in these Contract Procedure Rules at least every five years and report any recommendations to the Executive which will make recommendations to the Full Council.

 

2.0 Certificate Under Local Authorities (Contracts) Regulations 1997

 

2.1 The Local Government (Contracts) Act 1997 and regulations made thereunder provide for a local authority to certify that it has the powers to enter into a contract.

 

2.1 If any Officer is asked to issue a Certificate under the Local Authorities (Contracts) Regulations 1997, he must immediately report the situation to the Head of Legal and Democratic Services.

 

2.2 Any Certificate under the Local Authorities (Contracts) Regulations 1997 shall only be issued if the Council agrees with the proposal following a joint report to the Executive by the Audit Partnership Manager, the Head of Legal and Democratic Services and the Chief Executive. The form of any such Certificate must be approved by the Council’s Monitoring Officer and signed by the Council’s statutory Chief Finance Officer.

 

2.3 The Executive will make a recommendation to the Full Council.

 

3.0 Annual Contracts / Aggregation

 

3.1 A Head of Service should think about tendering for an annual (or “call off”) Contract if he is likely to need a number of similar requirements during a financial year but cannot realistically estimate the amount of work or cost involved. In such cases, orders may be issued as required on the basis of previously tendered rates or prices.

 

3.2 Officers must not break down what would normally have been a single Contract into smaller lots in order to avoid the provisions of these Contract Procedure Rules or appropriate EC Directives.

 

4.0 Market Testing / Indicative Bids

If an Officer wants to find out about the market price of an item or service (either for Best Value benchmarking or for some other reason) then he must make it clear in the invitation that he is not planning to choose a service provider but is simply finding out whether or not the Council will ask for Tenders at a later date.

 

5.0 Contracts Excluded From Competition

 

Tenders or Quotations must be sought for all Contracts except where:-

(a) the Head of Service is satisfied that goods or materials are only available from one manufacturer or that the services can only be supplied by one Contractor.

 

(b) the identity of the person supplying a professional service is particularly important. The Head of Service is responsible for this decision and must document the reasons for such decision.

 

(c) the work is of a specialist nature and the skill of the particular Contractor is particularly important. The Head of Service is responsible for this decision and must document the reasons for such decision.

 

(d) parts are being bought for existing machinery or plant.

 

(e) goods or materials are bought through a consortium of which the Council is a Member.

 

(f) the Contract is a continuation of an existing Contract - but note:  This exception only applies if the new Contract is negotiated with the Contractor on the basis of rates and prices which were originally agreed (in the existing Contract) through the normal tendering process. This exception can only be used to allow any one Contract to be extended once except in the case of Housing Revenue Account Programme of Works contracts where the following will apply:

(i) any proposed extension being agreed with the Head of Legal and Democratic Services

(ii) any contract or extension shall not exceed four years in duration

(iii) the original tender documentation having indicated the possibility of any potential extension

(iv) the Head of Housing being satisfied that following a review of the contractors previous performance that it is proper for an extension to be granted.

 

(g) equipment needs to be maintained by the manufacturer of that equipment and only the manufacturer can provide the maintenance.

 

(h) where equipment is supplied under terms which require maintenance be undertaken by a specified provider.

 

In the event of doubt as to whether any exception can be used, the Head of Service should seek the advice of either the Audit Partnership Manager or the Head of Legal and Democratic Services. 

 

These exceptions are conditional on any statutory or European constraints

 

6.0 Contracts Which Must Be Made Under Competition

 

6.1 Estimate of Contract Cost

 

Prior to issue of Tender documentation, the Head of Service must estimate what he thinks the proposed Contract will cost and keep a record of his estimate and how he made the calculation.

 

6.2 Public Advertisement

 

Whilst this standing order gives financial limits regard must always be had to the EU requirements in respect of low value advertising

 

6.2.1 A public advertisement must (unless otherwise agreed by the Head of Legal and Democratic Services) be placed:-

(a) whenever the estimated cost or income exceeds £150,000 (Goods and Services) or £250,000 (Works) except in the case of Housing Revenue Account Programme of Works where this shall only apply to the first phase of any contract subject to full financial vetting being carried out when any (individual) extension exceeds £250,000 in value.

 

(b) if a Head of Service thinks it is in the Council’s interest.

 

(c) if required under EC Rules or Government legislation.

 

6.2.2 Prior to placing an advertisement the Head of Service must document his selection criteria which will be used for selecting those to be invited to tender. A written record must be kept identifying the reasons why anyone who has responded to the advertisement has not been selected for tendering purposes.

 

6.2.3 The procedure for public advertisement (except where 6.2.4 applies) is as follows:-

(a) an advertisement needs to be placed in at least one local newspaper, if appropriate, and in one or more newspapers or journals which are likely to be read by potential suppliers. The advertisement needs to explain what the Contract is for and give potential Contractors at least 10 clear working days to express an interest.

 

(b) when the closing date is reached, Tender documents must be sent to those potential suppliers who meet the right technical standards and – for Contracts costing more than £150,000 (Goods and Services) or £250,000 (Works) – who have been financially vetted. The number of people invited to tender is down to the Head of Service, who needs to ensure that he invites enough people to achieve value for money but wherever possible shall not be less than four.

 

6.2.4 If EC Rules or legislation apply, then those Rules or legislation must govern the way in which the advertisement is placed. All EC advertisements must be placed by the Head of Legal and Democratic Services through the Office for Official Publications of the European Communities. The EC advertisement must be despatched before any national advertisement appears.

 

6.2.5 Except where the Select List procedures apply, any proposed tender with a value in excess of £50,000 should be advertised using the Council’s web site and allowing prospective tenderers at least ten clear working days to express an interest.

 

6.3 Contracts For The Supply Of Goods Or Services

 

6.3.1 Estimated Value to exceed £150,000

(a) There must be a public and Council website advertisement (unless the requirement for public advertisement has been waived- Contract Procedure Rule 6.2).

 

(b) The Head of Service must prior to selecting any prospective tenderers have a clearly written selection criteria.

 

(c) Any Contractor invited to tender must be have been vetted for technical competence.

 

(d) Prior to the award of a contract the successful Tenderer must have been vetted for financial stability.

 

(e) When inviting Tenders, the Head of Service must at the same time inform the Audit Partnership Manager and the Customer Contact Centre. They must also specify the proposed arrangements for the opening of Tenders received.

 

6.3.2 Estimated Value at between £50,000 and £150,000

(a) Except where the Select List procedures apply the proposed procurement shall be advertised on the Council’s web site giving potential suppliers at least ten clear working days to express an interest.

 

(b) The Head of Service is responsible for identifying prospective suppliers. If possible, four suppliers who have been vetted for technical competence should be invited to tender. The Head of Service must keep a written record of his selection criteria.

 

(c) When inviting Tenders, the Head of Service must at the same time inform the Audit Partnership Manager and the Customer Contact Centre. They must also specify the proposed arrangements for the opening of Tenders received.

 

(d) The Head of Service can accept the lowest tender as long as it is for less than £150,000 unless it is the only tender when the agreement of the Head of Financial Services must be first obtained.

 

6.3.3 Estimated Value up to £50,000

(a) The Head of Service needs to be satisfied, as far as possible, that anyone invited to quote for the work is technically competent. A quotation is required, although the number of quotations invited is a matter for the Head of Service.

(b) Heads of Service should ask for quotations to be returned in a plain sealed envelope labelled “Quotation”, followed by the subject to which it relates. The envelope must be addressed to the Head of Service.

(c) The Head of Service can accept the lowest quotation as long as it is for less than £50,000 unless it is the only quotation when the agreement of the Head of Financial Services must be first obtained

 

6.4 Contracts For The Execution Of Work

 

6.4.1 Estimated Value to exceed £250,000

(a) There must be a public and Council website advertisement (unless the requirement has been waived- Contract Procedure Rule 6.2).

 

(b) The Head of Service must prior to selecting any prospective tenders have a clearly written selection criteria.

 

(c) Any Contractor invited to tender must be vetted for technical competence and financial suitability.

 

(d) A Surety Bond or guarantee from a parent company is required unless the Head of Service determines otherwise. If a Surety Bond is required for any contract, then the tender documentation needs to ask all Tenderers to price for the Bond as a separate item

 

(e) When inviting Tenders, Heads of Service must at the same time inform the Customer Contact Centre giving brief details of the contract and specifying the proposed arrangements for opening of Tenders received.

 

6.4.2 Estimated Value between £150,000 and £250,000

(a) Except where the Select List procedures apply the proposed procurement must be advertised on the Council’s web site giving potential contractors at least ten working days to express an interest.

 

(b) The Head of Service must prior to selecting any prospective Tenderers have a clearly written selection criteria

 

(c) The Head of Service is responsible for identifying prospective Tenderers. If possible, four Contractors who have been vetted for technical competence should be invited to tender.

 

(d) A Surety Bond is not required unless the Head of Service wants one. If a Surety Bond is required for any Contract, then the documentation must ask all Tenderers to price for the Bond as a separate item.

 

(e) When inviting Tenders, the Head of Service must at the same time inform the Audit Partnership Manager and the Customer Contact Centre giving brief details of the contract and specifying the proposed arrangements for the opening of Tenders received.

 

6.4.3 Contracts estimated to be between £50,000 and £150,000

(a) If there is a Select List of potential Contractors for the type of work to be carried out, it must be used (subject to personal limit being not less than the estimated contract value when seeking Tenders) except where a public advertisement is used under Contract Procedure Rule 6.2.

 

(b) Tenders shall be invited from at least three Contractors on the appropriate category of the Select List.

 

(c) Where the category of work is not included in the Select List, the Head of Service is responsible for identifying prospective Tenderers. An advertisement must be placed on the Council’s website. At least three Contractors who have been vetted for technical competence should be invited to tender.

 

(d) When inviting Tenders, the Head of Service must at the same time inform the Audit Partnership Manager and the Customer Contact Centre giving brief details of the contract and specifying the proposed arrangements for the opening of Tenders received.

 

(e) A Surety Bond is not required unless the Head of Service wants one. If a Surety Bond is required for any Contract, then the documentation must ask all Tenderers to price for the Bond as a separate item.

 

6.4.4 Contracts for less than £50,000 in total value

(a) The Head of Service needs to be satisfied, as far as possible, that anyone invited to quote for the work is technically competent and in a position to fulfil the contract.

 

(b) Quotations shall be invited from at least two Contractors.

 

(c) The Head of Service should ask for quotations to be returned in a plain sealed envelope labelled “Quotation”, followed by the subject to which it relates. The envelope must be addressed to the Head of Service.

 

(d) The Head of Service can accept the lowest quotation as long as it is for less than £50,000 unless it is the only quotation when the agreement of the Head of Financial Services must first be obtained.

 

7.0 Tender Return

 

7.1 Unless use is being made of electronic tendering, the tender documentation must make it clear that tenders are to be returned in plain sealed envelopes or packages which clearly state “Tender” followed by the subject involved and which bear no mark or identification of the sender. The envelope or package must be addressed to the Customer Contact Centre

 

7.2 The procedure to be adopted in respect of electronic tendering shall be in accord with a protocol prepared by the Head of ICT and Customer Services in consultation with the Corporate Governance Manager and the Head of Legal and Democratic Services.

 

8.0 Surety Bonds And Parent Company Guarantees

 

8.1 Where a Surety Bond is required, it has to be:-

(a) in a form to be determined by the Head of Legal and Democratic Services.

 

(b) valued at 10% of the Contract Sum unless otherwise agreed with the Head of Financial Services.

 

(c) with a financial institution approved by the Head of Financial Services.

 

8.2 The Head of Service can obtain a parent company guarantee instead of a Bond, in which case, it must be in a form which is acceptable to the Head of Legal and Democratic Services.

 

9.0 Tendering And Quotation Procedures

 

9.1 Fixed Budget Tenders

 

9.1.1 Where a project has a fixed level of funding and it is not practical to specify in detail the extent of the work, supply or service required, Tenderers should be given the budget figure and asked to specify what they would provide for the money.

 

9.1.2 The Tender documentation needs to set out how the Tender will be evaluated.

 

9.1.3 The Head of Service is responsible for making sure his selection process is clear and “transparent” and should keep a full written record of his evaluation process.

 

9.2 Receipt, Looking after and Opening of Tenders (non-electronic)

 

9.2.1 Except where Contract Procedure Rule 9.3 applies, no Tender can be considered unless it is received in a plain sealed envelope or package bearing the word "Tender" followed by the subject to which it relates. Tenders must be securely looked after by the Customer Contact Centre until they are passed to the Head of Service at the time when they are due to be opened.

 

9.2.2 All Tenders shall be opened at the same time, if possible on the day that the Tenders close. If the estimated cost is £250,000 or less, they may be opened by the Head of Service in the presence of another Officer.

 

9.2.3 When the estimated cost exceeds £250,000 Tenders must be opened in the presence of the Head of Service, the Audit Partnership Manager and a Member of the Council. The Customer Contact Centre must not release the Tender envelopes until these people are available.

 

9.2.4 When opening Tenders, Heads of Service must make sure that a Tender Return Sheet is completed. Each Tender sum must be recorded on this Sheet, which must be signed by all those present at the opening and passed to the Head of Financial Services with a copy to the Audit Partnership Manager.

 

9.2.5 The Head of Service is responsible for keeping the Tender documentation safe during the evaluation process, after which the successful Tender forms part of the contract. The second most acceptable Tender should be kept by the Head of Service for a minimum of three months.

 

9.2.6 Up until a formal contract has been agreed with the successful Tenderer, all sums involved should be treated as confidential. They must only be disclosed to Officers or Members who need to know in connection with their duties or to comply with these Contract Procedure Rules.

 

9.2.7 In the case of contracts with a value in excess of the EC threshold, the outcome of the tendering exercise must be formally notified to unsuccessful Tenderers at least 15 calendar days prior to the successful Tenderer contracting with the Council. The successful Tenderer must be informed of the notification sent to the unsuccessful Tenderers advising that the Council may:-

(a) until the contract has been signed either abandon the procurement or cancel the award procedure without the Tenderers being entitled to claim any compensation

 

(b) suspend signing the contract for additional examination, if justified by requests or comments made by unsuccessful Tenderers during the fifteen day period or by any other relevant information received during that period

 

9.3 Marked Tenders

 

If the Tender envelope or package reveals the identity of the Tenderer:-

(a) the Tender must be opened in accordance with Contract Procedure Rule 9.2.

 

(b) if the Head of Service wants to accept the Tender, he can only do so if the Head of Legal and Democratic Services agrees.

 

 

9.4 Late Tenders

 

If a Tender envelope or package is received after the time and date for the return of tenders then it shall not be considered.

 

9.5 Tender Negotiation

 

9.5.1 This will only be permitted where:-

(a) the Tender has been invited under the European Community negotiated or competitive dialogue procedure and notice has been given by the Head of Legal and Democratic Services in the Supplement to the Official Journal of the European Communities.

OR

(b) the Tender figure is below the appropriate European Community threshold and the Head of Legal and Democratic Services has agreed to the use of a negotiated procedure.

OR

(c) the aim is to negotiate the continuation of an existing Contract in accordance with the provision of Contract Procedure Rule 5(f).

 

9.5.2 Where a negotiated procedure is used:-

(a) there must be a clear and rigorous method of evaluating Tenders that takes account of price, quality, innovation and improvement.

 

(b) all prospective Tenderers must be told in advance how the evaluation will be carried out.

 

(c) at least two Officers must carry out the evaluation and agree on the results.

 

9.5.3 Where Post-Tender negotiations take place:-

(a) they must always be carried out by more than one Officer from the Council.

 

(b) clear delegation limits must have been given to the negotiators.

 

(c) an accurate written record must be made promptly following all formal and informal meetings.

 

(d) the results of negotiations must be fully documented.

 

9.6 Custody and Opening of Quotations

 

9.6.1 Quotation envelopes shall be kept in a secure place by the Head of Service until it is time for them to be opened.

 

9.6.2 All quotations shall be opened at the same time, if possible, on the day that quotations close.

 

9.7 Tender/Quotation in Excess of Estimate

 

9.7.1 Subject to 9.7.1(a), 9.7.1(b) and 9.7.2, if the most acceptable Tender or Quotation exceeds the budget estimate, it can only be accepted if it is approved by the Executive and only then if it is within the budget head threshold. If it exceeds that amount the Executive must make a recommendation to the Full Council.

(a) If the cost of the scheme (including fees) is within the Capital Programme, and does not exceed the estimate by more than 10% or £25,000 (whichever is the less) the Tender/Quotation may be accepted if the Head of Financial Services is satisfied that the Head of Service can find compensatory savings on other approved capital schemes which are within that Committee’s programme and which will be underspent at completion.

 

(b) for a scheme funded from the Revenue Budget, a Tender/Quotation can be accepted which exceeds the estimate by up to 10% if the Head of Financial Services is satisfied that the Head of Service can find equivalent savings within the approved Revenue Budget for that Committee.

 

9.7.2 The provisions of 9.7.1 may, in the case of the Housing Revenue Account Programme of works be waived by the Head of Housing subject to the prior agreement of the Head of Financial Services.

 

9.8 Evaluation of Tenders/Quotations

 

9.8.1 Tender documentation must explain how Tenders will be evaluated.

 

9.8.2 The way Quotations will be evaluated needs to be recorded by the Head of Service in advance unless price is to be the only criterion.

 

9.9 Acceptance of Tenders/Quotations

 

9.9.1 No Tender or Quotation should be accepted by notifying the proposed Contractor in advance of the Contract itself being issued unless the Head of Legal and Democratic Services agrees.

 

9.9.2 If a Tender is to be accepted, the lowest Tender must be accepted if the Council is paying for goods and services and the highest Tender must be accepted if payment is to be received by the Council unless:-

(a) the Executive (in relation to Executive functions) or the Council or appropriate Committee (in relation to Council functions) decides otherwise following a report from the Head of Service concerned.

OR

(b) the Tenders or Quotations are evaluated in accordance with Contract Procedure Rule 9.8.1 and the evaluation suggests that accepting another Tender would be in accord with such evaluation criteria.

 

9.9.3 A Tender or Quotation that needs changing or revising (other than because of an arithmetical error or where Post-Tender negotiations are permitted) shall only be accepted after consulting the Head of Legal and Democratic Services.

 

9.9.4 No Tender or Quotation which would be part of a larger Contract should be accepted unless it fully satisfies the conditions of the principal Contract concerning sub-letting.

 

9.9.5 No Tender or Quotation shall be accepted unless the Head of Service is satisfied that the Tenderer has adequate public liability and other relevant insurance.

 

10.0 Contractual Arrangements

 

10.1 General Requirements

 

10.1.1 For the purposes of the Local Authorities (Executive Arrangements) (Modification of Enactments and Further Provisions) (England) Order 2001 every Contract with a value in excess of £50,000 shall be in writing and be the subject of one of the following:-

(a) a Contract prepared or settled by the Head of Legal and Democratic Services.

 

(b) one of the national standard forms of Contract previously agreed with the Head of Legal and Democratic Services for that type of work.

 

(c) some other documentation approved by the Head of Legal and Democratic Services.

 

(d) an Official Order (subject to Procedure Rules 10.1.3 and 10.1.4 below).

 

10.1.2 All Official Orders must comply with the requirements of Financial Procedure Rules.  They must not incorporate or be deemed to incorporate (by acknowledging a Contractor’s Official Order or otherwise) any condition unless that condition has been approved by the Head of Legal and Democratic Services.

 

10.1.3 If any proposed Contract for the supply of goods, plant, equipment, machinery or vehicles requires or will necessitate either the supplier or a third party providing maintenance or support the Head of Legal and Democratic Services needs to approve the terms for such maintenance and/or support.

 

10.1.4 Every Contract over £75,000 shall be under seal unless the Head of Legal and Democratic Services agrees it is inappropriate. A Contract of £75,000 or less can be under seal if the Head of Service considers it should be.

 

10.1.5 It is a requirement of the Local Authorities (Executive Arrangements) (Modification of Enactments and Further Provisions) (England) Order 2001 that any contractrequired to be in writing by virtue of these Procedure Rules must either be under seal or signed by at least two Officers of the Council.

 

10.2 What the Contract must include

 

10.2.1 Every Contract must:-

(a) specify what goods, services or work are to be supplied or performed.

 

(b) specify the price to be paid, the estimated price or basis upon which the price is to be calculated and say what discounts or other deductions have been agreed.

 

(c) specify the time or times within which the Contract is to be performed.

 

(d) require that goods or services used or supplied and workmanship carried out is in agreement with the appropriate Standard. If there is an appropriate and current Agreement, Standard Specification or Standard Code of Practice issued by either the British Standards Institution or a recognised body of any Member State of the EC, then that Agreement and/or Standard should be specified with the addition of the wording “or equivalent”.

 

(e) ensure that relevant Council policies (including its whistle-blowing policy) are reflected in the documentation.

 

(f) provide for liquidated damages to be paid by the Contractor if any Contract for works or services worth more than £75,000 is not carried out properly. This provision shall not apply to the supply of goods, plant, equipment, machinery and vehicles or if the Head of Service does not feel it is appropriate. A Contract worth £75,000 or less may provide for liquidated damages to be paid by the Contractor if the Head of Service considers it appropriate.

 

(g) if possible, make provision for continuous improvement in accordance with the principles of Best Value.

 

10.2.2 Every Contract must include a clause which allows the Council to cancel the Contract and recover from the Contractor any subsequent loss if:-

(a) the Contractor (or any of his employees) has offered or given any gift or other benefit to an Officer in an attempt to influence the outcome of a Contract decision.

 

(b) the Contractor has shown (or not shown) any favour or disfavour to any person in relation to the Contract.

 

(c) the Contractor (or any of his employees) commits an offence under the Prevention of Corruption Acts 1889 to 1916, or any subsequent amendments to these Acts.

 

(d) the Contractor (or any of his employees) gives any fee or reward that is an offence under Section 117 Sub-Section (2) of the Local Government Act 1972.

 

10.2.3 The Head of Legal and Democratic Services may waive the requirement of Contract Procedure Rule 10.2.2 if he feels that it is not appropriate.

 

10.3 Variations during the Course of the Contract

 

10.3.1 Every variation to a Contract shall be authorised in writing by a person authorised to sign Official Orders (in the case of goods or services procured by way of an Order) or by the Head of Service in the case of other types of Contract.

 

10.3.2 If authorising any variation is likely to cause the original Contract Sum (including any contingency sum) or total project budget to be exceeded, the Head of Service shall not issue such variation unless the Head of Financial Services has agreed. The effect of this Standing Order shall not restrict the issue of a variation if it would result in a stoppage of the Contract works or a breach of the contractual conditions.

 

10.4 Nominated and/or Named Sub-Contractors or Suppliers

 

10.4.1 No Sub-Contractor or supplier is to be nominated or named unless the proposed Sub-Contractor or supplier has been vetted for technical competence.

 

10.4.2 In the case of nominated Sub-Contractors:-

(a) these Contract Procedure Rules shall as far as possible operate as if the Contract were between the Council and the Sub-Contractor.

 

(b) the terms of the Tender or Quotation must require the proposed Sub-Contractor to agree that (if selected) he will enter into a Contract with the main Contractor on terms similar to those in the main Contract as far as the work to be undertaken or goods to be supplied is/are concerned.

 

(c) the Head of Service must tell the main Contractor the identity of the Sub-Contractor whose Tender or Quotation is, in his opinion, the most satisfactory. If that nomination is accepted by the main Contractor, the Head of Service shall accept the Tender or Quotation of the Sub-Contractor.

 

10.5 Custody and Retention of Contracts

 

10.5.1 The Head of Legal and Democratic Services is responsible for safely looking after all Contracts under seal.

 

10.5.2 Heads of Service are responsible for the safe keeping and custody of contracts not under seal.

 

11.0 Maintenance Of The Select List

 

11.1 The Head of Environmental Services is responsible for compilation and review (at least every five years) of the Select List following consultation with relevant Heads of Service.

 

11.2 The Select List may be amended as required by the Head of Environmental Services who has discretion to:

(1) add a Contractor to or remove a Contractor from the Select List and

(2) update the details of any Contractor on the Select List.

 

12.0 Partnering

 

There is an increasing requirement for partnering contracts. In so far as such is to be with the private sector these procedure rules will apply but such arrangements may be considered a special circumstance and the provisions of 1.5(b) may apply. Prior to the commencement of any negotiations (as compared to establishing whether such partnering may be of benefit to the Council) the Head of Service shall fully discuss the potential issues with the Deputy Chief Executive.

 

In the case of partnering arrangements with bodies designated as public bodies for the purposes of the Local Authorities (Goods and Services) Act 1970 these procedure rules in so far as they relate to tendering requirements shall not apply but any proposal to enter into negotiations shall be subject to the prior approval of the Deputy Chief Executive. In all instances regard must be had to the Financial Procedure Rules in relation to proposals to Externalise Services/Competitive tendering.

 

Any partnering arrangement must be the subject of a written agreement (in a form to be agreed by the Head of Legal and Democratic Services) clearly setting out the partners respective responsibilities and liabilities.

 

Table To Clarify Contract Procedure Rules

 

NB: There are different provisions for HRA programmed works

 

Value of Goods & Services

Advert Financial  Vetting

Select List

Notify Customer Services

Notify Audit

Cllr to Attend

Others to attend

Tenders Over £250k

Yes Yes No Yes Yes Yes Yes

Tenders £150 - 250k

Yes Yes No Yes Yes No Yes

Quotes £50-150k

No No No No No No Yes

Quotes up to £50k

No No No No No No No

 

Value of Works

Advert Financial  Vetting

Select List

Notify Customer Services

Notify Audit

Cllr to Attend

Others to attend

Tenders Over £250k

Yes Yes No Yes Yes Yes Yes

Tenders £150 - 250k

No No Yes Yes Yes No Yes

Tenders £50-150k

No No Yes Yes Yes No Yes

 

Next -  Officer Employment Procedure Rules

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This webpage was updated on 6/9/2008

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