Decision

The Portfolio Holder has decided to approve a contract with Alliance Leisure for pre-construction works at Manor Leisure Centre.

Analysis

outcome: The decision was to approve the contract with Alliance Leisure at a value of £175,430 for the pre-construction works.

summary: The decision at stake is whether to enter into a contract with Alliance Leisure for RIBA Stage 1 and 2 assessments for the proposed development of Manor Leisure Centre.

topline: The Portfolio Holder has decided to approve a contract with Alliance Leisure for pre-construction works at Manor Leisure Centre.

reason_contentious: This issue may be contentious as it involves significant funding and potential impact on the local community through the redevelopment of the leisure centre.

affected_stakeholders: ["Fenland District Council", "Alliance Leisure", "Local community members"]

contentiousness_score: 7

political_party_relevance: There are no explicit mentions of political parties in the decision.

URL: https://www.fenland.gov.uk/localgov/ieDecisionDetails.aspx?ID=981

Decision Maker: Portfolio Holder, Leader & Portfolio Holder for Finance

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose:

Content: To approve entry into a contract with Alliance Leisure at a value of £175,430 for completion of the RIBA Stage 1 and 2 assessments in relation to the proposed development of Manor Leisure Centre.     Decision: To enter a contract with Alliance Leisure to carry out RIBA stages 1 and 2 pre-construction works for the Manor Leisure Centre project at a value of £175,430. On 24th February 2025, Cabinet considered a Report in relation to Fenland District Council’s Leisure Centre Facility Strategy and were asked to consider and agree potential refurbishment and improvement projects all also then subject to the approval of the Budget by Full Council later that day.   One of the proposals considered and approved by Cabinet was redevelopment of Manor Leisure Centre in Whittlesey.  Specifically, Cabinet agreed to authorise the s.151 Officer to add additional funding into the capital programme for this purpose of enabling the pre-construction RIBA Stage works to be undertaken.  The s.151 Officer made provision for this additional funding within the Budget which was subsequently then approved by Full Council.    In accordance with these arrangements, this decision now seeks approval to enter a contract with Alliance Leisure to undertake the pre-contract RIBA assessments.  This information will then be used to inform future decisions as to enter a construction contract for the final project proposal.   Alliance Leisure (AL) have been selected to undertake the RIBA assessments via the UK Leisure Framework.  The UK Leisure Framework was established by Denbighshire County Council, acting as a central purchasing body, in 2022. This is the third successive framework of this type procured by Denbighshire County Council. It is a single provider framework, and Alliance Leisure is the appointed contractor on the Framework.   The key documents for this initial procurement are the Access Agreement and the Pre-construction fee proposal.   The Access Agreement stage:   If approved, the Council will enter into the Access Agreement with AL to progress the project through Feasibility initially, and then if required, pre-construction services. There is no access fee for using the Framework at this stage.   At the completion of the RIBA Stage 2 work, the Council will receive:   Indicative layouts / designs (informed by surveys carried out) Itemised build cost plan Total project costs Essential Survey reports Stage 2 report and proposal   AL states that this will give the Council the level of information required to make an informed decision on whether to progress to the final pre-construction gateway.   The Access Agreement states that there would be an invoice on instruction of 50% of all Fees for Stage 2 with the remaining balance spread equally over the period of delivery. However, AL clarified that this was 50% of £12,500 and this will be clarified in the Access Agreement.   Contractor costs are payable via a monthly drawdown through evaluation to identify and evidence progress from which appropriate certificates of payment will be issued for invoicing. This is more relevant for RIBA 3-4 and RIBA 5. In essence, there will be a QS assessment and monthly invoices. Payment is required 20 days from the invoice, which is shorter than the usual 30-day period, so processes will have to be put in place to ensure payment is made on time.   The insurance levels and provisions in the Access Agreement are standard.   The Council will want to be able to use the reports etc provided by AL if it decides not to go ahead beyond RIBA Stage 2. The Council has clarified with ALS that the Council will have the rights to use and assign any work products for which it has paid, including that produced by AL’s subcontractors.   Cabinet has also agreed to commission at RIBA Stage 3 and 4, at the end of which the Council will receive:   A Stage 3 Interim Report leading into Stage 4 provides an interim step before committing to full ‘Cost Certainty’ which includes detailed design / surveys /costs and additional fees.   To progress to the final pre-construction gateway, AL will develop the proposals to a stage of ‘Cost Certainty’.   Cost Certainty delivers the following:   Detailed layouts / designs (informed by surveys) Itemised build cost plan (informed by surveys) Risk Register Total Project Costs, giving a fixed contract sum to take forwards Reports from further Survey work Full Contractors Proposals Draft framework documentation Detailed delivery programme   This is stated to give the Council all the information required to make an informed decision to progress the development into construction.   Once the agreed-upon schemes are ready to deliver, a Development Management Agreement (DMA) is entered into with the Council to deliver the project at the agreed sum. AL would then enter into the building contract directly with the building contractor and arrangements with identified specialist suppliers as required. At this point only would a Framework fee apply.   AL will assume project delivery risk, as identified, and agreed in the project Risk Register. The price would be set, with any cost overruns, other than instructed variations and apportioned risks being managed or borne by AL.   The building contract proposed will be a JCT Design and Build Contract.   Social value: AL states that it is committed to maximising the benefits of developments to communities, not only to enable more people to be physically active, but to ensure engagement where appropriate with local companies and supply chain to ensure the project contributes back into the local economy. As the project moves from concept to delivery, KPIs will again be agreed with clients to consider what local advantages are optimal with regard to local key objectives and the scope of the project.   While AL’s sub-contractors are already on the appointed list, AL has said that it will be very proactive in terms of social value, and their approach is comprehensive and should give us confidence that social value obligations will be handled effectively and give a transparent and effective approach.   1.    Not to proceed with the preconstruction RIBA Assessments. This option would have been contrary to the decision taken by Cabinet on 24 February 2025 and the subsequent approval of the funding by Full Council. 2.    To undertake a procurement exercise to appoint a contractor to undertake the RIBA Assessments rather than using the UK Leisure Framework.

Date of Decision: July 9, 2025