To approve an  extension of the public realm service contract, with Balfour Beatty Living Places, in line with contract terms and conditions. The contract period is September 2013 to August 2023, with up to a ten year extension. The contract has reached the first relevant period for review of strategic performance and contract extension. The contract will extend the term to August 2024.

The overall performance delivery is positive with the required thresholds being met, 12 of the 16 indicators achieving acceptable or above performance. A report has been produced which demonstrates the performance position, scoring mechanism, trends and outcome.

That:

(a)        Balfour Beatty Living Places be awarded a one year extension (to 31 August 2024) to the public realm service contract;

(b)        Authority be delegated to Cabinet Member for Highways and Roads, for future contract extensions, through the contract governance arrangements

1.          Not to award an extension to the contract at this time. This is not recommended as the contract follows a model that is designed to incentivise the provider to achieve successful performance delivery throughout the potential contract term. Successful performance is gauged against strategic indicators which are monitored and considered at relevant set periods through the term of the contract. As Balfour Beatty Living Places (BBLP) has achieved acceptable strategic performance, as defined by the contract they are entitled to a contract extension unless the council exercises its discretion to do otherwise. Such discretion must be exercised reasonably in the circumstances following discussion with BBLP. No reasonable circumstance for the exercise of this discretion has been identified.

2.          To award an extension of the contract period to BBLP that is greater than one year. Under the contract the council has discretion to award extensions of greater than one year following the attainment of acceptable strategic performance by BBLP. This is not recommended at this time as the contract follows a model that is designed to incentivise the provider to achieve successful performance delivery throughout the potential contract term, and the early award of additional contract extension following this first review period may act as a disincentive to BBLP’s contractual performance later in the contract term.