STANDING ORDERS & CODE OF CONDUCT

September 2006

STANDING ORDERS (123 - 133)

CONTRACTS

Procedures as to contracts are laid down as follows:

123. 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 (vi) below:

(i) for the supply of gas, electricity, water, sewerage and telephone services;

(ii) for specialist services such as are provided by solicitors, accountants, surveyors and planning consultants;

(iii) 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;

(iv) for work to be executed or goods or materials to be supplied which constitute an extension of an existing contract by the Council;

(v) for additional audit work of the external Auditor up to an estimated value of £500 (in excess of this sum the Clerk shall act after consultation with the Town Mayor and Deputy Mayor);

(vi) for goods or materials proposed to be purchased which are proprietary articles and/or are only sold at a fixed price.

124. Where it is intended to enter into a contract:

a) exceeding £10,000 in value for the supply of goods or materials or for the execution of works or specialist services other than such goods, materials, works or specialist services as are excepted as set out in Standing Order 123, the Clerk shall invite tenders from at least three firms, such firms to be taken from the appropriate approved list

b) where possible contracts should be advertised for tender at least 6 months prior to commencement date

c) for expenditure of £1500 to £10,000 the Clerk should obtain three estimates or quotes.

d) for expenditures of £1,500 or less in value the Town Mayor or Deputy Mayor together with the Clerk or the duly authorised deputy shall have executive power.

125. 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 the Council.

126. Such invitation to tender shall state the general nature of the intended contract and the

Clerk 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

127. All sealed tenders shall be opened at the same time on the prescribed date by the Clerk in the presence of at least two member of Council.

128. If less than three tenders are received for contracts above £10,000 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.

129. Any invitation to tender issued under this regulation shall contain a statement to the effect of Standing Orders 56, 57 and 59.

130. The Council shall not be obliged to accept the lowest or any tender, quote or estimate.

PAYMENTS UNDER CONTRACTS FOR BUILDING & OTHER CONSTRUCTION WORKS

131. Payments on account of the contract sum shall be made within the time specified in the contract by the Clerk upon authorised certificates of the architect or other consultants engaged to supervise the contract (subject to any percentage withholding as may be agreed in the particular contract).

132. Where contracts provide for payment by installments the Clerk 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.

133. Any variation to a contract or addition to or omission from a contract must be approved by the Council to the Contractor in writing, the Council being informed where the final cost is likely to exceed the financial provision.

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