Jersey International Finance Centre: Procurement Process: Buildings 1, 4, and Underground Car Park

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A decision made 30 October 2013:

Decision Reference: MD-TR-2013-0090
Decision Summary Title:	SOJDC - Jersey International Finance Centre – procurement process		Date of Decision Summary:	14th October 2013
Decision Summary Author:	Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	SOJDC – JIFC 1,4 and underground car park variation to the procurement process		Date of Written Report:	14th October 2013
Written Report Author:	Head of Shareholder Relations		Written Report : Public or Exempt?	Exempt 3.2.1 (a) (xi)
Subject: Shareholder approval for the States of Jersey Development Company (“SOJDC”) to vary the procurement process for buildings numbered 1, 4 and the underground car park for the Jersey International Finance Centre (“JIFC”).
Decision(s): The Assistant Minister decided the following in accordance with MoU 5.1, which allows for some modifications to the MoU from time to time by agreement between the parties:- To approve an adaptation of the traditional procurement methods as defined under the Memorandum of Understanding (MoU) 17.1 and adopt a two stage design and build procurement process for the construction of JIFC numbers 1 and 4 and the underground car park. Under MoU 13.1, the Minister provides consent, before the company enters into any material contract for either or both buildings, that a main contractor be appointed for stage one (pre-contract phase) and subject to their satisfactory performance and price, they will be appointed by SOJDC for the second stage (construction contract) on a design and build fixed price contract basis.
Reason(s) for Decision: The Jersey International Finance Centre (phase 1 of the Esplanade Quarter Masterplan) is planned to comprise six individual buildings. The first building proposed to be constructed is building 1 subject to a pre-let, which will include the construction of an underground car park. Building 4 construction will commence once there is a sufficient level of legally binding pre-lets. The Minister is required to give his approval before SOJDC enters into a material contract in accordance with MoU 13.1. A two stage design and build process for these buildings will provide SOJDC operational agility and accelerate the traditional procurement strategy by achieving some design and construction overlaps. A two stage design and build contract is a standard tried and tested form of contract in the construction industry.
Resource Implications: None.
Action required: In accordance with Projet P.73/2010, section 12 of the report, this decision will not take effect for 15 days from the date of signing.
Signature:		Position: Senator P F Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision: