Source · Select Committees · Public Accounts Committee
Recommendation 34
34
Accepted
The National Audit Office highlighted that the Weybridge redevelopment programme will have a range of...
Recommendation
The National Audit Office highlighted that the Weybridge redevelopment programme will have a range of contracts covering professional services and construction.62 The Department recognised the challenges of integrating a large number of suppliers and it told us that it has looked to learn lessons from the commercial aspects of other programmes we have reported on such as Crossrail. The Department said that there is a balance between getting the best-in-class suppliers whilst ensuring it does not end up with overly complex contractual arrangements. It said that it is looking to reduce the number of contracts 57 C&AG’s Report, paragraph 23 58 C&AG’s Report, paragraph 3.2 59 Q 1 60 C&AG’s Report, paragraphs 3.13–3.14 61 Q 1 62 C&AG’s Report, paragraph 3.15 18 Redevelopment of Defra’s animal health infrastructure where possible, but there will be areas where it might be preferable to split contracts. It cited the main science hub construction as an example where it is looking at separate contracts for the animal science and non-animal science elements of the construction.63
Government Response Summary
The government agrees to report back on progress in developing its commercial strategy for the Weybridge redevelopment, including contract structure and competition, with a target implementation date of June 2023. Commercial Strategy Phase II has been endorsed and Phase III is in development.
Government Response
Accepted
HM Government
Accepted
7. PAC conclusion: The redevelopment of Weybridge is a large construction programme with a range of commercial risks that will need careful management. 7. PAC recommendation: The Department should report back to us in six months on progress in developing its commercial strategy and specifically on how it: • Intends to structure its contracts and manage their integration effectively; and • Will ensure there is adequate competition for the main construction contracts. 7.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2023 7.2 The department will update the Committee in six months via Treasury Minute. The Commercial Strategy Phase II has been endorsed by the SCAH Programme Board. Phase III of the Strategy is in development with a planned completion by Quarter 3 of 2023. By May 2023, the programme will have options around Science Hub form of contract and competition, including packaging approach and the contracting environment to manage sub programme integration. This will reflect early market engagement to ensure the department’s approach will attract sufficient market interest.