Decision details

To increase the current £20m internal governance contract value limit to £37.8m to align with the assigned budget and grant funding.

Summary of Decision: The Cabinet Member for Finance and Council Reform has approved the contract variation for the delivery of Energy Efficiency Programme Retrofit (RE:FIT) – Workplaces works to Vital Energi Utilities Ltd (04050190). The total sum is for £30,000,000 exclusive of VAT, £36,000,000 inclusive of VAT with a contract end date of 31 March 2031. The Cabinet Member has approved the associated spend of £10,000,000 as a result of the contract variation.

Reason for Decision: Currently just over £19.04 million has been spent on the contract with a further £2.38m committed to through IGPs. If a variation to the current contract is not actioned by March 2025, works will halt and the ambitious target of net zero by 2030–2040 for scope 1 and 2 emissions would be put at risk. The Council will not be able to instruct further works with Vital Energi beyond the current expenditure cap of £20m until the capacity is increased.