Issue - meetings

Report of the Director of Placemaking and Housing.  To be introduced by the Cabinet Member for Council Housebuilding, Placemaking and Development..

The Cabinet Member for Housebuilding, Placemaking and Development introduced the report which sought approval to increase the value of previously approved construction contract for Lealand Road, and to increase the client contingency sum.

In response to a question from the Cabinet, it was confirmed that there were three major components to the cost increase – connection to the sewage pipe was further away than originally anticipated, so the cost to connect was higher; diversion of a pipe not picked up by ground surveys; and some additional works to the adapted property.

Further to consideration of exempt information,

RESOLVED to

1.         Approve a variation to the 10^th June 2021 Contract Sum as set out in the Exempt Report Appendix 2 and to approve the contingency sum set out in the Exempt Report Appendix 2 for NFC Homes Ltd to complete the new build works and provide a total of three new homes at 1A-C Lealand Road. This accords with Contract Standing Order 10.02.01 b) (Cabinet to approve extensions and variations above £500k).

2.         Approve the revised total scheme cost set out in the Exempt report Appendix 2.

Reasons for decisions

On 9^th July 2019, Cabinet included the plot adjacent to 1 Lealand Road into the Council’s housing delivery programme. This scheme subsequently received planning permission on 17 November 2020 and a GLA compliant start on site was made in August 2021 which facilitated the drawdown of the first part of the GLA subsidy for this property. 

Unchartered pipes alongside contaminated ground was found on site. This required the area to be decontaminated and the services to be rediverted. The building contractor had submitted a claim for the works and extension of time. Following negotiations with NFC Homes a settlement sum has been agreed.

The works related to the unchartered pipes were unfortunately unforeseeable. Prior to the construction period, a full package of intrusive ground investigations alongside a review on statutory service drawings was conducted on the site. A total of two trial pits and two boreholes were drilled to depths of three and ten meters. Initial samples indicated a small likelihood of pollutants with a remediation strategy put in place to manage these known risks. The sample locations were positioned to provide a general spread across the site.

However, with intrusive ground surveys there are areas where investigations are not carried out with a possibility of further discoveries during the constructions period. As such unchartered pipes that were not present within any ground survey or any statutory record drawings were later discovered during the construction stage. This required the identified area to be decontamination and the pipes to be rediverted.

External groundworks were required to enable the site to be connected to the local drainage. Initial assessments had estimated the connection to be a short distance from site. It has subsequently been identified at a distance of thirty-five meters from site. Further build works on the curtain wall are due to commence for the front entrance of  ...  view the full minutes text for item 10