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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):

 

 

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