Agenda item

The Cabinet Member considered the report which sought approval to appoint the recommended contractor, Cosmur Construction Limited, to deliver the refurbishment works at the disused Canning Crescent Health Centre, for the total contract value of £2,673,759.89, plus a 10% contingency of £267,375.98 based on Cosmur’s tender costs. Approval was also sought to issue a letter of intent prior to the formal contract signature in the sum of for £267,375.98 as allowed under Contract Standing Order 9.07.3.

The Cabinet Member noted the late comments that had been provided by the Director of Finance and circulated and published as an addendum to the report. It was also confirmed that the minimum 40% benchmark threshold as part of the quality evaluation had been met by all bidders.

Following consideration of the exempt information.

The Cabinet Member RESOLVED

1.    To approve the full award of the construction works (RIBA stage 5-6) contract to Cosmur Construction Limited to deliver the refurbishment works at the disused Canning Crescent Health Centre for the fixed price contract sum of £2,673,759.89, plus a 10% contingency of £267,375.98 based on their tender costs.

2.    To approve the issue of a Letter of Intent prior to the formal contract signature for £267,375.98 being 10% of the contract sum.

3.    To vire £0.98m from the scheme budget to the 2020/21 approved capital programme contingency.

Reasons for decision

The Canning Crescent Centre is a former mental health centre in Wood Green. The Council purchased the freehold with vacant possession in February 2019, from Barnet, Enfield and Haringey Mental Health Trust (BEHMHT), following a Cabinet decision in October 2018. The planned refurbishment of the building by March 2022 will enable a set of services to support residents living with mental health conditions that affect daily life. The works will also allow the Recovery College to be relocated to the Canning Crescent site.

Given issues the construction industry is facing with supply chains due to the Covid 19 epidemic a decision on the contract award at the earliest opportunity will be advantageous and enable early procurement of long lead in items and critical materials such as air source heat pump, curtain walling, and photovoltaic panels to achieve the required completion date of March 2022.

A Signing (pursuant to Contract Standing Order 16.02) is required as there are no Cabinet Meetings scheduled in April or May 2021 due to the forthcoming Mayoral elections. Waiting until June to recommend approval of the construction contract award at a Cabinet meeting would delay the commencement of construction works on site and have an adverse impact on the planned March 2022 delivery date.

The current programme identifies that there will be a mobilisation period for the contractor following any call-in and the preparation of the contract and its issue. Subject to these activities, construction works will start on site by 8June 2021.

The early contract award will also enable items such as the air source heat pump, curtain walling, and photovoltaic panels to be delivered in time to meet the SALIX funder works before the end of September 2021.

Alternative options considered

In-house – There is currently no resource within the Council that has the capacity, specialist expertise or qualifications to deliver this service.

As the Canning Crescent refurbishment project signifies major works the use of the Dynamic Purchasing System was discounted. Strategic Procurement recommended the use of London Construction Programme (LCP) Major Works 2019 Framework under Lot 2.1b (Education & Leisure North £1-£5m) should be used to procure a contractor.