Contracts Procedure Rules

Standing Orders With Respect To Contracts

1. General

1. Every contract shall comply with these Standing Orders, and no exception from any of the following provisions of these Standing Orders shall be made otherwise than by direction of the Executive or the Head of Paid Service or, provided the contract is not a Business Support Services Contract, the Service Director - Corporate Services . Every proposal for making any such exception shall be the subject of a report to the Executive or to the Head of Paid Service or the Service Director - Corporate Services
2. All exceptions shall be reported quarterly to the Audit, Governance and Improvement Review Committee or appropriate Panel and the report shall specify the emergency or reason by which the exception shall have been justified.
3. Express note of any exception from any of the provisions of these Standing Orders and of the special circumstances, if any, by which the exception is justified shall, be recorded in the minutes of the Audit, Governance and Improvement Review Committee or appropriate Panel

2. Legislative Requirements

The following Standing Orders are subject to any relevant national or European legislative requirement and in the event of a conflict the legislative requirement shall prevail.

3. Selective Tendering after public notice

1. This Standing Order shall have effect, where invitation to tender for a contract is to be limited to persons who reply to a public notice.
2. Public notice shall be given in accordance with legislative requirements and in one or more local newspapers or journals circulating among such persons as undertake such contracts. The notice shall set out particulars of the contract into which the Council wish to enter and such other information required by statute or code of practice and invite persons interested to apply for permission to tender, within such period, as may be specified in any legislative requirements and in any event not being less than 10 days. A copy of the notice shall also be sent to all persons whose names appear in a list maintained under Standing Order 4 as being approved for the contract in question.
3. After the expiration of the period specified in the public notice invitations to tender for the contract shall be sent to the persons who applied for permission to tender in accordance with the following formula:-
   1. for contracts estimated not to exceed £100,000 4 persons or all those who expressed an interest, if less than 4, including any relevant DLO or DSO
   2. for contracts estimated to be in excess of £100,000 but below £250,000, 5 persons or all those who expressed an interest, if less than 5, including any relevant DLO or DSO
   3. for contracts estimated to be in excess of £250,000 6 persons or all those who expressed an interest, if less than 6, including any relevant DLO or DSO
4. Selection under (3) above shall be in accordance with such proper principles as the Council may from time to time determine.

4. Selective Tendering - Standing List

1. This Standing Order shall have effect where the decision taker has determined that a list shall be kept of persons to be invited to tender for contracts for the supply of goods or materials of specified categories, values or amounts or for the execution of specified categories of works, or the provision of specified categories of services.
2. The said list shall:-
   1. be compiled and maintained by the Executive;
   2. contain the names of all persons who wish to be included in it and are approved by the Executive, and
   3. indicate whether a person whose name is included in the list is approved for contracts for all, or only some, of the specified values or amounts or categories.
3. At least 4 weeks or such longer period as legislative requirements may require, before the list is first compiled, notices inviting applications for inclusion in it shall be published in accordance with legislative requirements and in one or more local newspapers circulating in the district and in one or more newspapers or journals circulating among such persons as undertake contracts for the specified values or amounts or categories
4. Additions and deletions from the list shall be made as required from time to time. At least once every five years, the list shall be renewed. At least 4 weeks before each such renewal each person whose name appears in the list shall be asked whether they wish their name to remain therein and notices inviting applications for inclusion in the list shall be published in the manner provided by paragraph (3) of this Standing Order. All persons who wish to be included on the list and who meet such proper criteria as the Executive may from time to time determine, shall be added to the list.
5. Where invitation to tender for a contract is limited to persons whose names appears on the list maintained under this Standing Order, selection for invitation to tender for that contract shall be in accordance with the rules set out in Standing Order 3 (3) and (4)

5. Open Tender

1. Except as provided in Standing Order 1, 3 or 4 no contract which exceeds £150,000 in value or amount for the supply of goods, materials or services or the execution of any work shall be made unless at least 10 days public notice has been given in one or more local newspapers circulating in the district and in one or more newspapers or journals circulating among such persons as undertake such contracts and the contract has been advertised in accordance with legislative requirements. The notice shall set out the nature and purpose of the contract, invite tenders for its execution, state the last date when tenders will be received, and provide such other information as may be required by statute or code of practice.
2. Selection for invitation to tender shall be in accordance with the rules set out in Standing Order 3 (3) and(4)
3. Provided that these requirements do not apply to:
   1. the purchase of patented or proprietary brands of articles or materials only obtainable from a single supplier, where the use of such brands can be justified in terms of value for money.
   2. purchases by auction or at public fairs or markets;
   3. repairs to buildings damaged by fire or vandalism;
   4. the provision of a service urgently required due to the failure of a contractor provided that arrangements are being made for the re-letting of the contract in compliance with Standing Orders;
   5. subject to the approval of the Executive the appointment of a contractor where the unsatisfactory performance of a contractor or the appointment of a receiver or liquidator to administer his/her affairs have made alternative arrangements for the completion of a contract necessary or desirable;
   6. purchases from or under contracts or framework agreements which have been negotiated by the Yorkshire Purchasing Organisation, Local Authority Purchasing Partnership, Office of Government Commerce (OGC) or such other Local Authority or public body as the Service Director - Corporate Services may from time to time approve.

6. Receipt of Tenders

Where in pursuance of these Standing Orders invitation to tender is required, every notice of such invitation shall state that no tender will be received except in a plain sealed envelope which shall bear the word “Tender” followed by the subject to which it relates, but shall not bear any name or mark indicating the sender. All such envelopes shall remain in the custody of the Chief Executive until the time appointed for their opening, unless the tenders are estimated not to exceed £50,000 in which case the envelopes shall remain in the custody of the appropriate Chief Officer until the time appointed for their opening.

7. Opening of Tenders

1. Tenders estimated to exceed £150,000 shall be opened at one time and only in the presence of :-
   1. such member or members of the Executive as may have been designated for that purpose by the Leader, or by the Chief Executive and;
   2. the Chief Executive or another official of the Council designated by him.
2. Tenders estimated to exceed £50,000 but not to exceed £150,000 shall be opened at one time and only in the presence of:-
   1. the Chief Officer inviting the tenders or an official of the Council designated by him and
   2. the Chief Executive or an official of the Council designated by him
3. Tenders estimated not to exceed £50,000 shall be opened at one time only and in the presence of two officers designated by the appropriate Chief Officer one of which shall be a member of the Departmental Management Team and the other shall be graded P.O. or above. The Director of Environmental Services may designate one member of the Departmental Management Team and one other officer graded S.O. or above.

8. Evaluation of Tenders

The evaluation of tenders shall be conducted in such manner as the Executive may from time to time determine and shall take into account such matters as the Executive may from time to time determine.

9. Acceptance of Tenders

1. A tender other than the lowest, if payment is to be made by the Council, or the highest if payment is to be received by the Council, shall not be accepted until the Executive or Chief Officer concerned shall have considered a written or verbal report from the appropriate officer or other person provided that, a tender other than the lowest (or highest as the case may be) may only be accepted by a Chief Officer acting under delegated powers, if he is satisfied, after having first consulted with the Service Director - Corporate Services, that the tender represents the most economically advantageous tender and the best value for money and a written report shall be presented quarterly to the Audit, Governance and Improvement Review Committee or appropriate Panel.
2. Tenders shall be accepted in accordance with the Rules set out in the Scheme of Delegations in the Constitution
3. Tenders can be accepted up to 10% of £500,000 (whichever is the lower) above the approved budget release after consultation with the Service Director - Corporate Services

10. Quotations

1. Except as provided in Standing Orders 1, 3, 4, or 5, no contract or series of contracts for the supply of goods or materials, the execution of any work, or the provision of any service, which exceeds £5,000 but does not exceed £150,000 shall be made unless the appropriate officer has obtained written quotations from not less than three persons believed to be suitably experienced. If the contract or series of contracts exceeds £5,000 but does not exceed £25,000 then written quotations need not be obtained if the Head of Risk Management or in his absence the Service Director – Corporate Services accepts that it is not practicable, or in the Council’s interest, to obtain written quotations from three persons.
2. Every such quotation shall only be considered if given in response to an invitation in writing given by the appropriate officer, stating the nature and purpose of the contract and the last date for receipt of quotations.
3. The requirements for the receipt , opening and acceptance of quotations shall be the same as the requirements for the receipt, opening and acceptance of tenders as set out in Standing Orders 6, 7, 8 and 9
4. The requirements of this Standing Order shall not apply to any contract if tenders are obtained under any of the procedures provided for in Standing Orders 3, 4 and 5 nor shall they apply to contracts which meet exemptions (a), (b), (c), (d), (e) or (f) of Standing Order 5.

11. Nominated Sub-Contractor

No sub-contractor or supplier shall be nominated in any contract unless the consent of the Executive has been obtained and the procedure for such nomination shall be as the Sub-Committee shall direct.

12. Budget Provision/Budget Release

No contract shall be entered into unless the appropriate Chief Officer is satisfied that there is adequate budget provision and all necessary consents to the expenditure have been obtained.

13. Form and Signature of Contracts

1. Every contract which exceeds £10,000 in value or amount shall be in writing.
2. Save as set out in (3) hereof every contract in writing shall, unless sealed with the Common Seal of the Council, be signed by the Chief Executive and the Service Director Borough Solicitor or two officers nominated in writing by either of them.
3. Chief Officers and Direct Service Managers may sign contracts relating to the exercise of their functions provided that the value of the contract does not exceed £500,000 and the contract is in a form which has been approved by the Service Director Borough Solicitor as appropriate for the type of contract concerned. Two officers must sign each contract.

14. Provisions of Contract

1. Every contract in writing shall specify:-
   1. the work, services, materials, matters, or things, to be furnished, had or done;
   2. the price to be paid, with a statement of discounts or other deductions; and
   3. the time or times within which the contract is to be performed.
   4. security for the due performance of the contract unless the appropriate Chief Officer considers this to be unnecessary
   5. the Council’s rights to termination and damages in the event of the contractor’s default

15. Standards/Benchmarking

Where appropriate Standards or Benchmarks are current at the date of tender every contract shall require compliance at least with such Standards or Benchmarks unless the appropriate Chief Officer considers this to be unnecessary.

16. Cancellation of Contract

The following clause shall be inserted in every written contract:-

The Council is entitled to cancel this contract and to recover from the contractor the amount of any loss resulting from such cancellation if the contractor shall have offered or given or agreed to give to any person any gift or consideration of any kind as an inducement or reward for doing or forbearing to do or for having done or forborne to do any action in relation to the obtaining or execution of the or any other contract with the Council, or for showing or forbearing to show favour or disfavour to any person in relation to the contract or any other contract with the Council, or if the like acts shall have been done by any person employed by him/her acting on his/her behalf (whether with or without the knowledge of the contractor), or if in relation to any contract with the Council the contractor or any person employed by him/her acting on his/her behalf shall have committed any offence under the Prevention of Corruption Acts 1889 to 1916, or shall have given any fee or reward the receipt of which is an offence under section 117(2) of the Local Government Act 1972.

17. Industrial Relations, Safety, Training etc.

1. Every written contract shall contain such provisions as the Executive may from time to time determine in respect of Industrial Relations, Safety, Training and related matters.
2. Such matters shall be taken into account in such manner as the Executive may from time to time determine in the selection of tenderers and the evaluation of tenders.