Agenda item

The Chair of Overview and Scrutiny has been informed that it was impracticable to give 28 days’ notice of the decision. It was originally envisaged that a Cabinet approval would not be required. The report unfortunately could not be prepared in time for the January Cabinet meeting. If the decision was delayed until the February Cabinet meeting, the programme would slip so that the Council would not achieve timely vacant possession of 40 Cumberland Road and this would jeopardise the timeline for the Enterprise Hub, which would mean the Council would no longer gain Greater London Authority grant funding of approximately £800,000 towards this initiative.

The Cabinet Member for Finance and Transformation considered the report which sought approval to award the contract for the Refurbishment and Fit out of 48 Station Road Ground & 3rdFloor to enable relocation of departments currently occupying 40 Cumberland Road.

The Cabinet Member was informed that, in November 2021, Cabinet had approved to undertake refurbishment works to Alexandra House and 48 Station Road to ensure that the Council had suitable office space for its workforce. The current proposal was for refurbishment works for the Ground Floor and 3rdFloor of 48 Station Road. These works were being accelerated ahead of the main refurbishment as they provided for the early relocation of services from 40 Cumberland Road which would enable the Council to gain vacant possession of 40 Cumberland Road.

It was noted that an option to delay the current proposal to take place as part of the main programme of works had been considered but had not been recommended as it would prevent the relocation of the current departments occupying 40 Cumberland Road – who would occupy the Ground and 3rd Floors of 48 Station Road. This location had been earmarked for redevelopment in a Regeneration-led project that had secured Greater London Authority (GLA) funding. It was highlighted that the GLA funding was time bound and that vacant possession of 40 Cumberland Road must be completed by 30 April 2022. It was added that delays in the current proposal would also impact the timeline for the overall accommodation programme.

In relation to the procurement process, officers explained that this had been undertaken through the South East Consortium Framework. It was noted that a framework facilitator pre-vetted suppliers on a defined list and ranked them based on quality, price, and value. This allowed the Council to make a Direct Award to a top tier contractor, which was compliant and considerably reduced the appointment time. The Cabinet Member enquired about the value of Direct Awards. Officers noted that an independent consultant had generated a cost plan for the works, based on market rates, which allowed the council to discuss any disparities with the contractor’s pricing. Also, it was commented that this contractor has been used by the council in the past and had performed satisfactorily.

The Cabinet Member enquired whether the proposed contractor had any local connections and whether they would employ local people. Officers explained that the contractor was based in London but not in Haringey specifically. It was noted that the contractor had continually employed staff rather than sub-contractors and the Cabinet Member asked that every effort was made to seek to negotiate maximum employment of employees and suppliers from the borough.

The Cabinet Member stated that, as a general rule, it was important to undertake competitive tenders unless absolutely unavoidable and also to recruit locally as much as possible but accepted the urgency around issues of funding and programming in this case.

The Cabinet Member RESOLVED

1.    In accordance with Contract Standing Order 16.02, to approve the award of the Contract for works at 48 Station Road in the sum of £619,082.39 excluding VAT to Foster Property Maintenance Ltd.

2.    To approve the issue of a letter of Intent to the contractor, to enable the start on site date in advance of the completion of Contract Documents to the value of £61,908 being 10% of the contract sum.

3.    To agree an additional recommendation as set out in the exempt report.

Reasons for decision

To deliver the Council’s Accommodation strategy objectives

In November 2021, Cabinet approved a proposal to refurbish Alexandra House and 48 Station Road, and to tender the associated works packages.

·         The overall objectives of the programme are:

·         To deliver office accommodation improvements

·         To enable the continued adoption of flexible working

·         To support short-term goals in the Accommodation Strategy

The works proposed in this package will provide an improved reception areas in 48 Station Road, which will be particularly designed with the needs of Childrens’, Adults and Housing services.

It will also provide a new operational home for the Young Adults Service.

On the third floor, accommodation will be provided that will support colocation with NHS partners; office space for the Trades Unions; and flexible space that may be used by Council officers.

To expedite timely delivery of key aspects of the programme

The abovementioned Cabinet Report set out that, in addition to the appointment of a main contractor, it would be necessary to undertake some of the works at an earlier stage. The works proposed in this report is one such package.

It is necessary and expedient to undertake the refurbishment of two floors of 48 Station Road at an early stage, to meet timescales needed for gaining vacant possession of 40 Cumberland Road. A separate Cabinet Paper sets out the plans for 40 Cumberland Road. These plans rely in part on GLA grant funding, which is time-dependent.

Alternative options considered

Do Nothing

The option to do nothing has been discounted, as the Council would not be able to meet its Accommodation Strategy objectives.

Refurbish as part of the main programme

This option would be for the Council not to commission Foster Property Maintenance Ltd to carry out the works and for this floor to be refurbished as part of the main programme of works in 48 Station Road. This work is programmed to start in late March 2022 subject to cabinet approval.

This would further prevent the relocation of the current departments occupying 40 Cumberland Road – who will occupy the ground and 3rd floors of 48 Station Road. This location has been earmarked for redevelopment in a Regeneration-led project that has secured GLA funding.

Because this GLA funding is time bound, including this work in the main programme of works is not a feasible option as the cabinet approval would not be granted in sufficient time to allow the fit out to complete. Vacant possession of 40 Cumberland Road must be completed by 30th April 2022.