Agenda item

The Cabinet Member for Early Years, Children & Families considered the report which sought approval to award a contract to Kind Diamond Build Consortium Ltd up to the value of £4,060,282.22 to undertake external envelope and building services improvement works at Chestnuts Primary School pursuant to contract standing order 16.02, and pursuant to Contract Standing Order (CSO) 16.02, to approve the issuance of a letter of intent.

RESOLVED that the Cabinet Member

i.          Approve an award of contract to Kind Diamond Build Consortium Ltd to the value of £3,691,165.66.

ii.         Approve a contingency allowance of 10% that equates to £369,116.56 which will be strictly managed under change control governance arrangements

iii.        Approve the issuance of a letter of intent for up to 10% of the contract value, totalling £369,116.56.

Reasons for decision

A major review of the condition and suitability of the Children’s Services estate has been undertaken which has informed the Children’s Service’s asset management plan (CSAMP).  This identified condition and suitability deficiencies in the primary, secondary, and wider Children’s Service estate need addressing in the short, medium, and long-term. 

Chestnuts Primary School is high priority for major works due to issues relating to health and safety or the school is at risk of school closure.

In 2019 a commission was given to further investigate and address urgent works relating to the condition of building services (i.e. heating, electrics and plumbing), external envelope (i.e. roofs, windows) and boundary security.

The scheme has been granted an allocation of funding £0.262m from the public sector decarbonisation programme, a government initiative sponsored by the Department for Business, Energy & Industrial Strategy and administered by Salix (Salix works). The grant will be used to part fund the scheme thus reducing the amount of borrowing that the Council will need to undertake. The terms of the grant are that the relevant works need to be completed by the 30^th September 2021. If this date is missed, then there is a risk that the grant allocation will need to be repaid.

A scheme for Chestnuts Primary School has been developed, with sectional completion dates in order to achieve the following:

·                Salix Public Sector Decarbonisation grant funding works (Window replacement, LED Lighting, Loft Insulation, Building Management System).

·                Boiler and heating works completion prior to the heating season starting in October.

·                Decant classroom spaces completed prior to the start of the September term.

·                Roof replacement, brick repointing, small power and data

This construction award report requests a decision on the procurement of a contractor to undertake all of the external envelope and building services infrastructure works identified, designed and approved by the project sponsor.

A Cabinet Member decision is required in July 2021 to enable timely mobilisation and facilitate procurement of longer lead in materials as soon as possible which will offer greater likelihood of achieving maximum grant funding available.

Alternative Options Considered

Do nothing – a decision not to support this award of construction contract will result in the Councils failure to suitably maintain its education estate by undertaking essential condition improvements. This would increase the likelihood of reactive works which will create greater disruption and cost to the council and potentially result in the loss of education days. All of which would undoubtedly impact on the quality of teaching and learning.

Delaying a decision until 13^th July 2021 Cabinet would add additional time to the programme. Not being able to award contracts and place orders at the earliest opportunity would severely increase the risk of:

·           Not achieving the criteria for the completion of carbon grant funded works (before 30^th Sept 2021) with the risk of lost funding.

·           Not having sufficient time to build and complete the decant classroom spaces.

·           Failing to complete the heating works prior to the Heating season starting will result in increased costs borne to the council for temporary boilers.

·           Delaying the completion of the scaffold erection until after the start of the September term, thus resulting in an increased H&S risk to the children and adults on site.

·           Reducing our summer holiday working window by a minimum of 4 weeks which will not allow us the opportunity to maximise the school summer holiday period and utilise the existing nursery building as decant space.