Agenda item

The Cabinet Member for Children, Schools, and Families considered the report which noted that, on 13^th April 2021, the Cabinet Member approved an award to Cosmur Construction (London) Ltd for Park View School up to £869,431.24. On 10^th March 2022, Cabinet Member approved a variation of contract to Cosmur Construction (London) Ltd for Park View School up to £954,137.87.

It was noted that the variation of works, set out in section 4 have been approved by the Client under change control. On this basis this is a retrospective request. This report sought Cabinet Member approval to vary the contract with Cosmur Construction (London) Ltd for Park View School as allowed under Contract Standing Order (CSO) 16.02 and 10.2.1.b and as set out in section 3.

The additional works provided the Council with greater value for money by including the works within the current contract on site, as opposed to returning with a separate contract, which as a result of the current climate – construction inflation and material shortages - would likely result in inflated market rates and cause further disruption to the schools.

The Cabinet Member sought reassurance that there would be a detailed review on the outstanding works and costs. The Delivery Manager noted that there were ongoing, regular communications with all parties.

The Cabinet Member RESOLVED

1.    Pursuant to Contract Standing Order 16.02, to approve a further variation of the construction contract to Cosmur Construction (London) Ltd in the sum of £85,668.24 giving a varied contract value of £1,039,806.11.

2.    To waiver Contract Standing Order 3.01d and delegate authority to the Director of Children’s Services to approve any subsequent variations which may be required in the settlement of the final account up to £50,000.

Reasons for decision

The initial variation of construction supported additional condition works to replace the hall flooring, lighting (bulb replacement only) and redecoration. Works which had been discovered once the works commenced and the contractor was able to fully access and intrusively inspect the hall flooring and lighting. Scaffolding and working crash deck in place for new mechanical works provided greater access to inspect lighting.

A further variation is requested to support additional gantry works for the air handling unit, temporary ventilation supplies over the exam period, raising the height of the new ventilation sock, fire alarm modifications, additional drainage works and adjustments to the design for damp proof membrane. These works have been approved by the Client under change control and are contained within the programme budget.

The additional works provide the Council with greater value for money by including the works within the current contract on site, as opposed to returning with a separate contract, which as a result of the current climate – construction inflation and material shortages - would likely result in inflated market rates and cause further disruption to the school.

The additional work has led to the contractor requesting further time to accommodate all additional work condition works, some of which may not been fully considered as part of the original variation request.

The final account has not been agreed and will require to be fully evidenced to achieve the allowance requested in this report.

The Children’s Capital Programme Budget is sufficient to cover this contract increase.

Alternative options considered

Do nothing – a decision not to support the increase in the value of the construction works contract would leave the school with inadequate facilities to meet curriculum requirements which the community also benefit from.

Returning to the market and delivering under a separate contract was discounted as would not offer best value to the Council due to current climate conditions – construction inflation and material shortages – this would likely result in inflated market rates and cause further disruption to the school.