- Type
- economic
- Description
- Insurance
Glasgow City Council’s Insurance Requirements are:
The Bidder 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.
The Bidder shall take out and maintain, throughout the period of the contract, 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.
The Bidder shall maintain motor insurance in accordance with the requirements of the Road Traffic Act 1988 and any other applicable legislation. Where required, the Bidder shall maintain Motor Trade Road Risks cover sufficient for the recovery, transportation and movement of vehicles and plant in connection with the delivery of the Framework.
The Bidder shall maintain insurance covering loss of or damage to any vehicle, plant item or third-party asset while in the bidder’s possession, custody or control, including during recovery, transportation, relocation, loading, unloading and storage operations. The level of indemnity shall be sufficient to cover the maximum foreseeable value of vehicles and plant equipment handled under the contract.
The policies may be stand-alone or a combined Motor Trade policy
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.
- Minimum
- Financial Check
In order to pass the Financial Check section of the contract, it is mandatory for companies to attain the undernoted:-
There is a minimum financial requirement that affects trading performance and balance sheet strength.
Financial requirements for trading performance and balance sheet strength should be calculated on latest filed accounts with Companies House
Trading Performance
An overall positive outcome on pre-tax profits over a 3 year period
Exceptional items 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
Companies 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
Bidders should have no outstanding issues, with regard to statutory filing requirements with Companies House.
Bidders 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.
Bidders 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.
Bidders who are subsequently appointed to the Framework shall, during the lifetime of the Framework Agreement, inform the Council immediately of any material changes to the information provided in their submission in relation to economic and financial standing. The Council notes Regulation 60(9) and 60(11) of the Public Contracts (Scotland) Regulations 2015 and reserves the right to refuse to award a contract following a mini-competition should the Bidder no longer meet the requirements set out in this SPD.
Any Bidder that fails to achieve or exceed the criteria as stated above will be excluded at this stage.
Insurance
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.