Market testing begins

We’ve recently commenced the first round of market testing for key parts of the scheme. The purpose of the exercise is to undertake pre-qualification of suitable supply chain partners, and to obtain initial costs and unit rates based on the current known design elements and options.

The purpose of this exercise is as follows:

  • Early engagement with the supply chain to understand market capability and to benefit from specialist supply chain advice.
  • Obtain up-to-date budget costs for known work and materials to inform detailed consideration of options alongside the public consultation results.
  • Refine budget and forecast estimates for use in the Full Business Case for presentation to the Environment Agency, Defra and HM Treasury.
  • Establish a short-list of suppliers for key elements of the project that the project team will work with for detailed planning and costing of the scheme.

This is stage 1 of the market testing process and will result in a short list of pre-qualified suppliers and refined budget costs. Once the options have been finalised and the detailed design has been produced, a second round will be undertaken where full tenders will be issued to the supply chain to tender for work in relation to the project. It is at this second stage, on completion of the design, that final commercial contracts and costs for the work will be commissioned.

This market testing exercise serves hand in hand with current public consultation, as the results are crucial in making the required decisions to move the project forward. In addition, ongoing technical work is being carried out to gain more certainty on the proposals to date and the various options. This will aid the decision-making process and ultimately the progression of the project to the detailed design stage.

If you are interested in looking at the various work packages that are being market tested, please visit Portsmouth City Council’s electronic tendering site here.

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