Issue - meetings

[Report of the interim Director for  Housing, Planning and Regeneration. To be introduced by  the Cabinet Member for Strategic Regeneration.]

Budget report for the Woodside House Refurbishment Project.

The Cabinet Member for Strategic Regeneration introduced this report which sought Cabinet approval to vary the original contract with T&B (Contractors) Limited by allowing the increase of the original value by up to £750,000.

The Cabinet Member had raised concern regarding overspend on the project, which had been approved by the previous administration. However, the Cabinet Member was satisfied the refurbishment of Woodside House would provide the Council with better facilities in the future. The Mayor’s parlour had relocated to Woodside House and there was an registry office for weddings to take place.

The Cabinet Member recognised it was unfortunate that previously unknown issues had arose during construction which meant the project would have to overspend to fix those issues, such as drainage problems that delayed had construction efforts. Cabinet were advised that the Council could face additional charges if it did not resolve the extra costs.

Following a question from Cllr Barnes, the following was noted:

• The Cabinet Member noted a report was being prepared on the lessons learned from the refurbishment and this could be shared  with her once completed.
• Officers confirmed the £750,000 was the maximum increase and it was possible this sum could decrease following negotiations.
• Officers confirmed a full appraisal of all sites would take place before such similar projects were undertook in the future.

Officers advised it was difficult to crossover lessons learned from the Woodside House Refurbishment project to new build projects, as the latter would likely not have pre-existing conditions

RESOLVED

1. That pursuant to Contract Standing Order 10.02.1b, to approve a variation  and increase the value of the contract with T&B (Contractors) Ltd to deliver refurbishment works to Woodside House by up to a further £288,034.31, which is in addition to an increase of £461,965.69 approved under delegated authority in October 2018. This would increase the original contract award by £750,000. The overall impact on project budget (as per Paragraph 8.1.2) is in the region of £472,000, representing a 13.5% increase.

2. For the reasons set out in Paragraph 6.7 and 6.8 of the report, to grant delegated authority  to the Director of Customers, Transformation and Resources to agree further variations if required to settle the final account. The authority is limited to that available under Contract Standing Order 10.02.1(a).

Reasons for decision

To ensure Haringey Council can adhere to its contractual obligations and make payment of contract valuations. 

Alternative options considered

In order to make invoiced interim valuation payments that are required in December and January, approval is required now, while final negotiations are completed (construction contracts allow six months for the presentation of the Final Account by the main contractor after Practical Completion of the works). If not approved, the council would be unable to make payment of the bi-monthly interim valuations, as well as Final Account payment and would mean it would be in breach of its contractual payment obligations and be at risk of incurring additional interest costs on unpaid amounts.