URL: https://reigate-banstead.moderngov.co.uk/ieDecisionDetails.aspx?ID=1191

Decision Maker: Leader of the Council

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Purpose: On 18th July 2024 the Partner, Shareholder and Trustee Executive Sub-Committee (PSTESC) considered a report (at Annexe 1) concerning a property at 13 Marketfield Way, Redhill that has been received from a developer under the terms of a Section 106 planning agreement. The developer has also provided a capital contribution for the fit-out the premises to enable a letting. Approval was sought, inter alia, to use the developer-funded capital contribution to fund finishing and fitting-out works to the property.   PSTESC Resolved to approve the allocation of the £0.379 million capital contribution from the developer of 13 Marketfield Way to fund fitting-out works. This was a Key Decision.   A tender exercise was run for this contract through the Council’s procurement system, In-tend. Seventeen bidders responded. Officers then undertook a quality evaluation of bidders responses to a Quality Questionnaire comprising of six questions, which accounted for 40% of the submission score, which was then added to the price score (Lowest Price/Tenderer’s Tendered Sum x Criteria Weighting), which accounted for 60% of the submission score.   Following the completed evaluation of the tender responses, this identified the successful tenderer, with the highest combined quality and price score indicating the most advantageous tender. This evaluation methodology is designed to provide a structured and auditable approach to evaluating the tender responses submitted by bidders. This identified CCM Interiors Ltd, as the successful tender.   The tender price for the fit out of 13 Marketfield Way is £428,794.29. This exceeds the developer contribution by £49,794.29. Within this we have removed the contingency of 30k leaving a shortfall of £19,794.29 The shortfall will be accounted for by further value engineering throughout the duration of the project, property capital budget and additional funding opportunities sought by our new leaseholders. A further value engineering exercise cannot take place until we issue the contract award.   CCM Interiors Ltd: 83.92% Alternate Bidder – A: 83.17% Alternate Bidder – B: 83.03% Alternate Bidder – C: 82.60% Alternate Bidder – D: 82.40% Alternate Bidder – E: 82.38% Alternate Bidder – F: 82.29% Alternate Bidder – G: 81.58% Alternate Bidder – H: 79.47% Alternate Bidder – I: 78.72% Alternate Bidder – J: 77.83% Alternate Bidder – K: 76.98% Alternate Bidder – L: 73.25% Alternate Bidder – M: 72.61% Alternate Bidder – N: 65.83% Alternate Bidder – O: 59.33%   Officers carried out the tender exercise on the understanding that they had authority to award the contract, but it has subsequently come to light that the PSTESC resolution did not explicitly contain this delegated authority, which otherwise requires an Executive decision.   The Legal Services Manager has reviewed the report and has concluded that the context and wording of the report makes it clear that the intention was to let the contract and utilise the developer contribution, and that it is not necessary to refer the contract award back to Executive for a confirmatory decision.   The Deputy Chief Executive (Strategic Lead for Place), the Chief Finance Officer, the Portfolio Holder for Finance, Assets and Governance and the Chairman of the Overview and Scrutiny Committee have been consulted and are all in agreement with the decision.  

Content: On 18th July 2024 the Partner, Shareholder and Trustee Executive Sub-Committee (PSTESC) considered a report (at Annexe 1) concerning a property at 13 Marketfield Way, Redhill that has been received from a developer under the terms of a Section 106 planning agreement. The developer has also provided a capital contribution for the fit-out the premises to enable a letting. Approval was sought, inter alia, to use the developer-funded capital contribution to fund finishing and fitting-out works to the property.   PSTESC Resolved to approve the allocation of the £0.379 million capital contribution from the developer of 13 Marketfield Way to fund fitting-out works. This was a Key Decision.   A tender exercise was run for this contract through the Council’s procurement system, In-tend. Seventeen bidders responded. Officers then undertook a quality evaluation of bidders responses to a Quality Questionnaire comprising of six questions, which accounted for 40% of the submission score, which was then added to the price score (Lowest Price/Tenderer’s Tendered Sum x Criteria Weighting), which accounted for 60% of the submission score.   Following the completed evaluation of the tender responses, this identified the successful tenderer, with the highest combined quality and price score indicating the most advantageous tender. This evaluation methodology is designed to provide a structured and auditable approach to evaluating the tender responses submitted by bidders. This identified CCM Interiors Ltd, as the successful tender.   The tender price for the fit out of 13 Marketfield Way is £428,794.29. This exceeds the developer contribution by £49,794.29. Within this we have removed the contingency of 30k leaving a shortfall of £19,794.29 The shortfall will be accounted for by further value engineering throughout the duration of the project, property capital budget and additional funding opportunities sought by our new leaseholders. A further value engineering exercise cannot take place until we issue the contract award.   CCM Interiors Ltd: 83.92% Alternate Bidder – A: 83.17% Alternate Bidder – B: 83.03% Alternate Bidder – C: 82.60% Alternate Bidder – D: 82.40% Alternate Bidder – E: 82.38% Alternate Bidder – F: 82.29% Alternate Bidder – G: 81.58% Alternate Bidder – H: 79.47% Alternate Bidder – I: 78.72% Alternate Bidder – J: 77.83% Alternate Bidder – K: 76.98% Alternate Bidder – L: 73.25% Alternate Bidder – M: 72.61% Alternate Bidder – N: 65.83% Alternate Bidder – O: 59.33%   Officers carried out the tender exercise on the understanding that they had authority to award the contract, but it has subsequently come to light that the PSTESC resolution did not explicitly contain this delegated authority, which otherwise requires an Executive decision.   The Legal Services Manager has reviewed the report and has concluded that the context and wording of the report makes it clear that the intention was to let the contract and utilise the developer contribution, and that it is not necessary to refer the contract award back to Executive for a confirmatory decision.   The Deputy Chief Executive (Strategic Lead for Place), the Chief Finance Officer, the Portfolio Holder for Finance, Assets and Governance and the Chairman of the Overview and Scrutiny Committee have been consulted and are all in agreement with the decision.   To grant delegated authority to the Head of Property to award the contract for the fitting out works at 13 Marketfield Way to CCM Interiors Ltd for the sum of £428,794.29. The reason for awarding the contract to CCM Interiors Ltd for the sum of £428,794.29 is that theirs was the winning bid based on the analysis of quality submission and scoring method set out in the ITT document The alternative option would be not to award the contract at this time, but to report again to Executive requesting delegated authority for an award.   This is not recommended, as the delay in doing so would cause significant operational problems for the incoming tenant, YMCA and their sub-tenant, Alliance for Better Health CIC. Furthermore, a new tender exercise would need to be run, as the winning bid is only valid for no more than 90 days following submission and this would result in additional delays and possible an increased contract cost There were no declarations of pecuniary interests.

Date of Decision: October 20, 2025