Tenders and Contracts Policy

Document Date

20/07/2022

Created by

N/A

Category

Policies

Accessible version of document​

TENDERS AND CONTRACTS POLICY

Adopted November 2013
Reviewed January 2022

Contracts

Procedures as to contracts are laid down as follows:

  1. Every contract shall comply with these financial regulations, and no exceptions shall be made otherwise than in an emergency provided that these regulations shall not apply to contracts which relate to items (i) to (iv) below:
    1. For the supply of gas, electricity, water, sewerage and telephone services;
    2. For specialist services such as are provided by solicitors, accountants, surveyors and planning consultants;
    3. For work to be executed or goods or materials to be supplied which consist of repairs to or parts for existing machinery or equipment or plant;
    4. For work to be executed or goods or materials to be supplied which constitute an extension of an existing contract by the Council;
    5. For additional audit work of the external Auditor up to an estimated value of £250 (in excess of this sum the Clerk and/or Responsible Financial Officer shall act after consultation with the Chairman and Vice-Chairman of the Council;
  2. Where it is intended to enter into a contract exceeding £25,000 in value for the supply of goods or materials or for the execution of works or specialist services other than such goods, materials, works specialist services as are excepted as set out in paragraphs (a) the Clerk shall invite tenders from at least three firms approved by the full Council.
  3. When applications are made to waive financial regulations relating to contracts to enable a price to be negotiated without competition, the reason shall be embodied in a recommendation to and a resolution by the Council.
  4. Such invitation to tender shall state the general nature of the intended contract and the Clerk shall obtain the necessary technical assistance to prepare a specification in appropriate cases. The invitation shall in addition state that tenders must be addressed to the Clerk in the ordinary course of post.  Each tendering firm shall be supplied with a specifically marked envelope in which the tender is to be sealed and remain sealed until the prescribed date for opening tenders for that contract.
  5. All sealed tenders shall be opened at the same time on the prescribed date in the presence of the full membership of the Parish Council. If less than three tenders are received for contracts above £50,000 or if all the tenders are identical the Council may make such arrangements as it thinks fit for procuring the goods or materials or executing the works.
  6. Where a contract is to be entered into is worth between £500 and £5,000 for the supply of goods or materials for the execution of works or specialist services other than such goods, materials, works or specialist services as are excepted as set out in paragraph (a) the Clerk or Responsible Financial Officer shall seek to obtain three quotes from contractors approved by the Council; where the value is above £5,000 and up to £25,000 the Clerk or Responsible Financial Officer shall obtain three quotes from contractors approved by the Council; where the value is above £25,000 the Clerk or Responsible Financial Officer shall invite tenders as described in paragraph (b).
  7. The Council shall not be obliged to accept the lowest or any tender, quote or estimate.

Payments Under Contracts For Building Or Other Construction Works

  1. Payments on account of the contract sum shall be made within the time specified in the contract by the Responsible Financial Officer upon authorised certificates of the architect and other consultants engaged to supervise the contract (subject to any percentage withholding as may be agreed in the particular contract.
  2. Where contracts provide for payment by instalments the Responsible Financial Officer shall maintain a record of all such payments. In any case, where it is estimated that the total cost of work carried out under a contract, excluding agreed variations, will exceed the contract sum by 5% or more a report shall be submitted to the Council.
  3. Any variation to a contract or addition to or omission from a contract must be approved by the Council and Clerk to the contractor in writing, the Council being informed where the final cost is likely to exceed the financial provision.