Agenda item

Report of the Leader and Cabinet Member for Strategic Growth is attached

Councillor Eamonn O’Brien, Leader and Cabinet Member for Strategic Growth, presented the report which advised Cabinet of the Enabling Works and Main Works packages, that in line with the Bury Market & Flexi Hall project programme, will now need to be instructed through the Enabling Works and Main Works Contract. 

In response to a Member’s query regarding the Levelling-up fund members were assured that no issues are expected to arise due to national political changes. Members were informed that national changes will provide a kick-start to other projects such as the Mill Gate. The Leader assured members that it is no coincidence that two of the levelling up schemes sit in areas with the highest level of deprivation and all will be done to ensure these schemes are delivered.

A member gave praise to the equality duties being considered and raised a point from residents with health conditions and proximity to bathroom facilities.  The Cabinet was informed that the Flexi-Hall should alleviate the distance to a bathroom in future and sign posting to the nearest bathroom will be considered in the surrounding infrastructure. Members recognised that the Indoor market is closed and is a place previously used to access these facilities. Robert Summerfield, Assistant Director advised changing places and toilet facilities will be checked.

Decision:

Cabinet:

• Approved the delivery of Enabling Works and Main Works packages to be undertaken by Vinci Construction UK Ltd.
• Agreed the interim tender report recommendation that Vinci Construction UK Ltd undertake the Enabling Works and Main Works packages at the provisional contract sum set out in Part B of this report, and delegate final acceptance of a final contract sum up to a provisional maximum of £25,088,003.87 to the Director of Law and Democratic Services in consultation with the Executive Director of Place and Director of Finance and the Council Leader and Cabinet Member for Strategic Growth.
• Agreed to delegate finalisation and sealing of the Enabling Works and Main Works Contract including any clarifications to the Director of Law and Democratic Services in consultation with the Executive Director of Place and the Council Leader and Cabinet Member for Strategic Growth.

Reasons for recommendation(s):

• Approval of the Enabling Works package is required for the Bury Market & Flexi Hall project to deliver various preparatory works on site. These works are required to be completed in advance, to ensure the Main Works construction phase can start on time in line with the agreed project programme, associated scheme cash flow and DLUHC Levelling Up grant spend deadline. Approval also extends to the Main Works package for the Bury Market & Flexi Hall project to progress to a construction phase without delay and to avoid jeopardising development delivery and grant funding expenditure obligations. Key considerations within this document have informed the Enabling Works and Main Works contract sum, the scope and methodology for carrying out the associated Enabling Works and Main Works packages and their phasing in line with the agreed project programme and grant funding agreement.

Alternative options considered and rejected:

• Delay instructing the Enabling Works and Main Works Contract: Delaying the starting dates for the Enabling Works and Main Works packages would further delay both the full defrayment of the Levelling Up grant and the overall delivery of the Bury Market & Flexi Hall scheme. In turn this would jeopardise the Council’s obligations set out in the MoU as agreed with DLUHC and put at risk the Levelling Up grant monies.
• Any further delay incurred would also erode confidence in the Council’s ability to deliver a key strategic priority for Bury which is also critical to supporting the delivery of a number of major, corporate strategies and Team Bury initiatives including the Council’s ‘Let’s Do It’ Vision and Strategy, Bury Town Centre Regeneration Masterplan, Bury Town Centre Evening and Night Time Economy Strategy, Bury Economic Strategy, Bury Interchange redevelopment and the Millgate Strategic Regeneration Framework, amongst others.
• Further delays to starting the Enabling Works and Main Works would also incur significant additional costs to the Council, including build cost inflation due to further scheme prolongation, and additional professional fees, including the Council’s external professional team. Delays may also incur potential additional contractor preliminary costs that might feasibly be requested under the terms of the existing PCSA contract (the prelim rate currently stands at circa £8.1k per week).
• On top of these costs, the Council would also incur additional, consequential costs in respect to extra rents and service charges that it will have to pay regarding the temporary accommodation that houses the Bury Market service (12 Princess Parade). The Council would also have to pay additional business rates charges in respect to those properties (Nos 2 – 10 Princess Parade) which it has already acquired in readiness for demolition and on whose cleared site the footprint of the new Flexi Hall will be constructed.
• Furthermore, delays to instructing the Enabling Works and Main Works Contract could mean that subcontractor prices expire with the resulting risk that the overall tender price increases in line with market fluctuations at the time. In this regard, the tendered price is fixed until the anticipated date of a Cabinet approval decision (July 2024) but any delays beyond this date will risk the tender price increasing because Vinci’s supply chain cannot fix prices for a longer period.