Increased fees for the appointed Employers Agent (EA) service for the Eastwick Row housing development

Concepts

• hemel hempstead
• construction consultancy
• additional services
• additional fees
• ea services
• the eastwick row housing development
• increased fees
• housing
• eastwick
• row

Location

Hemel Hempstead

Description

Extension of the existing contract with Philip Pank Partnership LLP (PPP) for EA services due to: - Collapse of original contractor (Jarvis Contracting Ltd) - Emergency support provided by PPP - Continuity and specialist knowledge of the project

Total Quantity or Scope

In 2018, Dacorum Borough Council undertook a competitive procurement exercise to appoint an Employer's Agent (EA) for the Eastwick Row housing development, a scheme comprising 34 new apartments. Following the evaluation of 20 tenders, the contract was awarded to Philip Pank Partnership LLP (PPP) in September 2018 for a value of £72,046 + VAT. The EA was appointed to manage the building contract through to the end of the defects liability period. However, due to unforeseen circumstances-including the collapse of the original principal contractor, Jarvis Contracting Ltd, in March 2023-PPP was required to provide additional services beyond the original scope. These included liaising with the administrator and bondsman, preparing a full inventory of materials left on site, and supporting the procurement of a replacement contractor. Given PPP's in-depth knowledge of the project and their continued involvement since the design stage, the Council determined that extending the existing contract represented the most expedient and value-for-money solution. A new contract value of £208,204 + VAT has been agreed, incorporating previously undrawn funds and additional fees for the extended scope of work. This direct award is made under Regulation 32(2)(c) of the Public Contracts Regulations 2015, due to extreme urgency brought about by unforeseeable events. Re-tendering the EA role at this stage would risk significant delays and disruption to the project.

Award Detail

CPV Codes

• 71530000 - Construction consultancy services

Indicators

Legal Justification

The contract has been awarded under Regulation 32(2)(c) of the Public Contracts Regulations 2015 due to extreme urgency brought about by unforeseeable events. Dacorum Borough Council originally procured the Employers Agent (EA) services for the Eastwick Row housing development through a competitive tender in 2018, awarding the contract to Philip Pank Partnership LLP. The EA was appointed to manage the building contract through to the end of the defects liability period. In March 2023, the principal contractor Jarvis Contracting Ltd. went into administration, creating an urgent need for continuity and additional EA support. PPP provided emergency services including liaising with the administrator, securing site materials, and preparing documentation for a new contractor appointment. Given PPP's extensive knowledge of the project and their ongoing involvement since the design stage, re-tendering the EA role would have caused significant delays and risked non-compliance with the Council's Employers Requirements. The Council determined that extending the existing contract was the most expedient and value-for-money solution. The revised contract value is £208,204 + VAT, incorporating previously undrawn funds and additional fees for the extended scope of work.