New Bellozanne STW Contract 10502/09: Supplementary Agreement to the New STW Contract (Deed of Variation)

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A decision made on 23 July 2021

Decision Reference: MD-T-2021- 0047
Decision Summary Title :	New Bellozanne STW Contract 10502/09. Supplementary Agreement to the New STW Contract (Deed of Variation)		Date of Decision Summary:	21 July 2021
Decision Summary Author:	Head of Liquid Waste Management		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	New Bellozanne STW Contract 10502/09. Supplementary Agreement to the New STW Contract		Date of Written Report:	21 July 2021
Written Report Author:	Head of Liquid Waste Management		Written Report: Public or Exempt?	Exempt QE Article 33(b)
Subject: New Bellozanne STW – Supplementary Agreement to the New STW Contract
Decision(s): The Minister approved the Supplementary Agreement (Deed of Variation) to the current Bellozanne STW Contract 10502/9 for the Variation in the sum of up to £1,500,000 in order to mitigate any further programme slippage and secure significant mutual benefits to IHE and the Contractor.
Reason(s) for Decision: Development of the Commissioning Strategy for the new STW has identified constraints that have a greater impact than had originally been appreciated. The amended Commissioning Strategy has in turn led to the identification of the opportunity to introduce two additional Sub-Phases and thereby incentivise continued progress and mitigation measures. A Supplementary Agreement with the Contractor with incentives to mitigate any further programme slippage is considered essential and will provide significant mutual benefits to IHE and the Contractor.
Resource Implications: Sufficient funds are available in the STW project risk contingencies for up to £500,000 commitment required in 2021 for the Variation. The project budget increase of £1,850,000 to cover costs of adapting to Covid-19 pandemic will be in the Government Plan 2022-25 for 2022 and will be utilised, if required, over a three year period.
Action required: Director General of IHE to authorise the Project Manager to issue an instruction to nmcn PLC for the Variation to the Contract 10502/09.
Signature:		Position: Minister for Infrastructure
Date Signed:		Date of Decision (If different from Date Signed):