Issue - meetings

Report of the Cabinet Member for Regeneration and Growth is attached.

The Cabinet Member for Regeneration and Growth presented a report regarding proposed works packages included within the JCT Design and Build Contract (2016) encompassing the delivery of a full land remediation strategy and associated preparatory enabling works at Pyramid Park, a 7.4-acre disused brownfield site identified for a high-quality, sustainable residential development.

Decision:

Cabinet:

1.    Authorised the council to appoint and enter into a Schedule of amendments to JCT Design and Build Contract (2016) with Conlon Construction Limited (company number 00708997) as the main contractor to deliver the Pyramid Park Remediation Main Works to unlock the site for residential development, up to a total contract value of £1,554,000.00 including contingency, and term of 90 days;

2.    Accepted the recommendation that Conlon Construction Limited undertake the Pyramid Park Remediation Main Works as per the estimated contract value set out in this report, subject to the agreement of any outstanding contract amendments and clarifications; and

3.    Delegated acceptance of the final contract sum up to a total contract value of £1,554,000.00, including contingency, to the Director of Law and Democratic Services in consultation with the Executive Director of Place and Executive Director of Finance, and the council Leader and Cabinet Member for Strategic Growth.

Reasons for the decision:

Approval for the Council to appoint and enter into contract with Conlon to undertake the remediation and associated main works is required in order for the Pyramid Park scheme to progress to the construction works phase, thus enabling the full defrayment of the BLRF2 grant monies, and which upon completion of the remediation works, will unlock this key opportunity site for comprehensive future residential redevelopment.

Alternative options considered and rejected:

·       Re-run the procurement process for a new main works contractor with a view to securing a lower contract sum - Starting the procurement process again through the same (NWCH), or an alternative PCR compliant framework, would result in significantly delaying the start-on-site date for the remediation works, by several months. Due to the unique nature of the remediation works, it is highly likely that re-running the procurement process would not result in a lower contract value or realise cost savings for the council. Further scheme prolongation, at this point in time, would expose the council to build cost inflation which continues to rise.

·       Do nothing and / or return the BLRF2 grant to OPE - By failing to appoint the prospective contractor to remediate the site and thus, defray the outstanding BLRF2 grant monies, in line with the agreed GFA delivery milestones, it would severely affect the long-term viability of the site for realising future residential development and the positive outcomes and improvements associated with it. This is due to the large abnormal costs and complex technical work required to bring the site forward for development, that only the allocated BLRF2 grant could feasibly support.