Kirkgate Market Phase 2

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    "date": "2024-02-05T09:49:54Z",
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    "description": "Bermar Building Company Limited won in competition and delivered Phase 1 of essential health and safety works at the 1875 Kirkgate Market Blockshops. The contract was awarded in January 2022 in the sum of PS3,609,781 with works starting in late January 2022 which have now been completed. The contractor has delivered a high quality of performance of the works on phase 1. Bermar Building Company Limited were appointed following a competitive procurement exercise which was a retender (second attempt) issued to contractors from Constructionline. This approach was necessary as a previous procurement exercise via the YORBuild construction framework yielded interest but no tender submissions. Tenders were received and Bermar Building Company Limited were awarded the contract following evaluation. As part of the procurement exercise it was stated in the tender documents that subject to good performance on site for phase 1 and satisfactory price for further phases, then these subsequent phases might be awarded at the Council's discretion to the contractor who undertook the phase 1 works to provide continuity and avoid interruptions. Current market conditions in the construction industry are still proving challenging in terms of lack of interest in tendering, increasing prices of labour, materials, and the inflationary increases being experienced. These conditions are affecting contractor interest in procurements and the prices being received when bids are submitted. Given the constraints of the site environment, including the market continuing to be a live working environment, out of hours working, liaison with traders, and the potential for other contracts running concurrently, there is a material risk that if the works are competitively tendered there will again be limited or no interest from contractors in bidding for the works. If this occurs the current relationships between Bermar and the Council and Bermar and the traders could be lost. Furthermore, by running a competitive procurement process this will result in delays to the works of several months due to the processes involved in conducting a procurement exercise, awarding a contract, demobilising Bermar, and mobilising the successful contractor. Additional costs for the Council will also be incurred in terms of loss of revenue income from lettings, compensation payments to traders, and staff resource. There is a need to conclude the works as soon as practicable, as these pertain to health and safety issues, which are the principle focus of the works overall. The procurement process run for the phase 1 works, though not covered under the PCRs 2015, was compliant with Leeds City Council Contract Procedure Rules and the process, subsequent evaluation and award was open, fair, and transparent. The publication of this notice is to rectify the award of the contract to Bermar Building Company Limited despite the value being under the PCR 2015 works threshold following a procurement process that was conducted in a compliant, but under threshold, manner.",
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