Issue details

A paper was presented to the former SYPTE Management Board on the 30 November 2020, setting out the proposed approach to the construction phase of project delivery.

The approach described DMBC as the contracting authority for the works and DMBC being the lead for contractor procurement. This approach was considered appropriate given that the landowner’s land would become adopted by DMBC. In addition, it was felt that this arrangement would simplify the relationship as DMBC would also be acting as the Highway Authority. The previous SYPTE Management Board approved this approach in principle.

It should also be noted that SYMCA will still be responsible for ensuring that the overall TCF grant represents value for money. However, as the contracting authority, DMBC will be adhering to their own standing orders obligations and assurance processes

DMBC’s preferred method of contractor procurement is to use the Midlands Highways Alliance Framework (MHA). The form of contract will be the NEC4 Framework Contract. The MHA Framework has been used successfully in the past by both DMBC and RMBC. DMBC’s preferred approach is to use Option 3 of the framework (sub-regional call off), which will involve using Eurovia for the iPort Bridge project

FBC approval was granted for the iPort Bridge scheme on 20 September 2021. The overall contractor target cost came in over the budget approved in the business case. This was due to many reasons, the main one being the increased cost of materials due to inflation. This led to a process of value engineering with the design, which will help to reduce the material costs, programme duration, and overall project costs.

Eurovia are currently repricing their target cost based on our value engineered design. We expect their revised target cost and construction programme by the middle of July 2022. Subject to the revised target cost being acceptable by SYMCA and DMBC, and within our revised project budget, a change control will be issued to SYMCA assurance, to allow the project to progress to the construction phase.

A legal agreement has been drafted between SYMCA and DMBC that sets out the terms of the contractual relationship between the PTE/MCA, DMBC, and the contractor. SYMCA will be responsible for ensuring that the overall TCF grant represents value for money. As the contracting authority, DMBC will be adhering to its own financial and contract standing orders.