- Type
- economic
- Description
- Nursery Operators must comply with the undernoted financial requirements in order to participate in the tendering process:-
There is a minimum financial requirement that affects trading performance and balance sheet strength.
Financial requirements should be calculated on most recent accounts.
Accounts should have been prepared by an independent accountant or in the case of small playgroups, by an independent person with financial experience.
Trading Performance Ratio
An overall positive outcome on pre tax profits over a 3 year period.
Exceptional items, occurring in the normal course of business, can be excluded from the calculation.
The above would be expressed in the ratio Pre-Tax Profit/Turnover Balance Sheet strength
Net worth of the organisation must be positive at the time of evaluation and organisation must not be subject to an insolvency process.
Intangibles can be included for purposes of the Total Assets figure
The above would be expressed in the ratio Total Assets/Total Liabilities
Nurseries that are only required to file abbreviated accounts, must submit full sets of accounts for the last two individual years filed, in order for the three year profitability requirement to be verified.
A Bidder should have no outstanding issues, with regard to statutory filing requirements with Companies House.
Nursery Operators who have been trading for less than the 3 years noted above must provide evidence that they are complying with the above minimum financial requirements for the period in which they have been trading.
Nursery Operators who do not comply with the above financial requirements but are part of a Group, can provide a Parent Guarantee if the Parent company satisfies the financial requirements stipulated above.
Glasgow City Council would be willing to accept, on an individual basis, Nursery Operators who do not meet the financial criteria specified above, provided they can demonstrate that they possess sufficient economic and financial standing to undertake the contract.
Glasgow City Council will make such individual assessments on the basis of profitability and balance sheet strength.
Glasgow City Council reserves the right, at its own discretion, to seek such other information from the Bidder in accordance with Regulations 61(7) or Regulation 61 (8) of the Public Contracts (Scotland) Regulations 2015 to prove the Bidder's economic and financial standing.
- Minimum
- Glasgow City Council’s Insurance Requirements are:
Bidders shall take out and maintain, throughout the period of the Framework, Employer’s Liability insurance to the value of at least TEN MILLION POUNDS STERLING (10,000,000 GBP) in respect of any one event and unlimited in the period.
Bidders shall take out and maintain, throughout the period of the Framework, Public Liability insurance to the value of at least FIVE MILLION POUNDS STERLING (5,000,000 GBP) in respect of any one event and unlimited in the period.
Bidders shall take out and maintain, throughout the period of the Framework, Products Liability insurance to the value of at least FIVE MILLION POUNDS STERLING (5,000,000 GBP ) in respect of any one event and in the aggregate.
Bidders shall take out and maintain, throughout the period of the Framework, Abuse cover to the value of at least FIVE MILLION POUNDS STERLING (5,000,000 GBP) in respect of any one claim, without limit to the number of claims or; Abuse cover to the value of at least TEN MILLION POUNDS STERLING (10,000,000 GBP ) in respect of any one claim, and in the aggregate. The policy must be arranged on a ‘claims occurring’ basis. Please note cover arranged on a claims made basis will not be accepted by Glasgow City Council.
Bidder shall take out and maintain, throughout the period of the Framework, Treatment Risk/Medical Malpractice insurance to the value of at least FIVE MILLION POUNDS STERLING (5,000,000 GBP) in respect of any one event and in the aggregate.
Glasgow City Council also requires that the successful Bidder will retain a sufficient level of Professional Indemnity Insurance required to cover any services to be performed within the scope of the contract.
The standard requirement for Glasgow City Council is:
Bidders shall take out and maintain throughout the period of the Framework and for six years thereafter, Professional Indemnity insurance to the value of at least TWO HUNDRED AND FIFTY THOUSAND POUNDS STERLING (250,000 GBP) in respect of any one event and in the aggregate
Bidders who have motor vehicles which are used in the provision of their Services must maintain adequate vehicle insurance cover in respect of such vehicles for the duration of the Framework.
Bidders must submit a To Whom It May Concern (TWIMC) letter from their broker as evidence of their insurances when submitting their bid paying particular attention to abuse cover. The TWIMC letter should clearly state the limit of indemnity for abuse, whether it is any one claim or aggregated and if cover is written on a claim occurring basis.
The above insurances shall be with an insurance company registered with Financial Conduct Authority (FCA) in the UK, or equivalent body for EU member states by the council and any organisation shall not sub-let or sub-contract any part of the commission unless the sub-contractor is similarly insured, unless the council agrees otherwise. It is the express responsibility of the lead organisation to ensure this is the case.
Should the Bidder not have the specified insurances at the time of tendering then, the Bidder must certify in their response to this ITT that the specified insurance will be obtained.