Agenda item

It was highlighted that there were some minor corrections to the original report that had been published. The corrections were set out and specifically marked in the addendum to the report. It was explained that the key difference was that the variation of the construction contract to Mulalley & Company Limited was in the sum of £374,200 (rather than £294,200), giving a total contract sum of £2,644,202.90 (rather than £2,564,202.90) for West Green Primary School. It was also noted that any amendments were highlighted in bold text in the minutes. The corrections were noted by the Cabinet Member.

The Cabinet Member for Early Years, Children, and Families considered the report which noted that, on 2 July 2021, the Cabinet Member had approved an award to Mulalley & Company Ltd for the Construction Contract for West Green Primary School in the sum of £2,270,002.90. The report sought Cabinet Member approval to vary the original contract with Mulalley & Company Ltd for the sum of £374,200 as allowed under Contract Standing Order (CSO) 10.2.1.b and CSO 16.02, to allow for additional roof and condition works to be completed at the site. This provided the Council with greater value for money by including them within the current contract works on site, as opposed to returning with a separate contract, causing further disruption to the school.

The report also noted that, on 15 June 2021, the Cabinet Member had approved an award to Mulalley & Company Ltd for the Construction Contract for Bruce Grove Primary School in the sum of £2,763,207. The report sought Cabinet Member approval to vary the original contract with Mulalley & Company Ltd for the sum of £318,793 as allowed under Contract Standing Order (CSO) 10.2.1.b and CSO 16.02, to allow for an element of additional works to be completed. This had resulted in significant delays to the programme, for which extension of time requests had been requested.

The Cabinet Member RESOLVED

1.    To note that the original contract award approved by the Cabinet Member for Early Years, Children, and Families for West Green Primary School was in the sum of £2,270,002.90.

2.    To agree a variation of the construction contract to Mulalley & Company Limited in the sum of £374,200, giving a total contract sum of £2,644,202.90 for West Green Primary School.

3.    To note that the original contract award approved by the Cabinet Member for Early Years, Children, and Families for Bruce Grove Primary School was in the sum of £2,763,207.

4.    To agree a variation of the construction contract to Mulalley & Company Limited in the sum of £318,793, giving a total contract sum of £3,082,000 for Bruce Grove Primary School.

Reasons for decision

West Green Primary School - During construction, additional condition works were identified that include building services works and the complete replacement of the hall roof, as it is in significant disrepair and deterioration across the main roof structure, has rotten and sagging timber framing around its windows, with some splitting of timbers in some occurrences, and significant outward bowing of the roof structure, due to the yielding of the steel ties. The extent of this condition would not be identified through non-intrusive surveys and would only be discovered once the works commenced and the contractor was able to fully access, open up and intrusively inspect the hall roof structure. This may result in a delay of up to 8 weeks to the project, therefore the above includes a risk allowance for any possible extension of time claim. The Children’s Capital Programme Budget is sufficient to cover this contract increase.

Bruce Grove Primary – During construction and once full access to the roof was available, additional condition works were identified including replacement of roof tiles, detailing and build-up of insulation. Additional glazing and building services works have also been identified. This has resulted in a delay of up to 14 weeks to the project therefore the above includes a risk allowance for an extension of time claim which is yet to be concluded. The Children’s Capital Programme Budget is sufficient to cover this contract increase.

Going forward, the Council’s Strategic Asset Management Programme, will produce a costed asset management works programme that can inform items like this; so it can be referred to and allowances can be made within contracts when under taking significant capital works.

Alternative options considered

Do nothing – a decision not to support the increase in the value of the construction works contract will result in delays in completing urgent condition works, leave the school with a roof at the end of its serviceable life, and increase the health and safety risk of closure (in part or full site) and disruption to children’s education.