Issue - meetings

The project aimed to upgrade the depot to make essential safety improvements, and to make much needed improvements for the wellbeing of staff in the Housing Service. Unexpected circumstances led to necessary changes to how the project would be delivered. Given the site constraints, projects at Lordship Lane could be expected to vary from the original design, scope or specification at some point during the construction works.

The variations, and their causes comprised the £244,700 uplift in the contract, from £470,012 to £714,712. These costs were made up as follows:

o Extension of Time £15,000

o Additional Groundwork £71,200

o Welfare Cabin construction £23,500

o Utility Companies’ costs circa £15,000

o Safety work circa £120,000

RESOLVED

Recommendations

1. In accordance with Contract Standing Order 16.02, the Cabinet Member for Housing and Planning approved the variation of the Contract with Shawma Construction Limited for works at Lordship Lane depot, increasing the contract sum by £244,699.55 excluding VAT to £714,712.03

Alternative options considered

Do Nothing 

Not agreeing to the variations was not recommended as the Council was committed to deliver and complete this project. In order to deliver this project, it was essential to carry out these variations. The remaining works to be delivered were reliant on the variations being carried out first. Also, in accordance with Building Regulations and H&S Act, the Council had legal obligation to carry out variation works.

1. Revising the scope to stay within budget

2. This would involve removing originally intended parts of the project, to focus budget where the variations are needed. Revising the scope was not possible, as none of the works within the project were optional. They were all essential.