Agenda item

In line with Contract Standing Order CSO 10.02.1 (b) and 16.02, the report sought approval to extend the Northolt Strip-Out Contract by the sum of £794,655.00. The contract extension was required following the decanting of the adjacent Stapleford North Block, and the works required to make the block ready for demolition. The demolition of Stapleford North would be included in the demolition of Northolt.

The extension of contract was also required for additional works not included within the original scope of works and therefore not allowed for within the contractor’s tender sum. These works included the removal of asbestos and for the disconnection and removal of mechanical plant throughout the block.

There was not likely to be any recourse for the consultant that had misadvised on the level of asbestos. However, it may affect future working engagements with the consultant.

There was £150,000 contingency on the project. The new homes project was around £140 million. The risk and contingency for this was 2.5% - £3.5 million. There was a reasonable risk and contingency with in the homes programme. 

The Cabinet Member’s title in the report would read as Cabinet Member for Placemaking and the Local Economy. 

The table in paragraph 6.12 of the report needed to be clarified. The figures provided should be clear that both figures were supposed to indicate ‘thousands’. 

The Cabinet Member RESOLVED 

1. Pursuant to CSO 10.02.1 (b) and 16.02 approves the extension of the contract in the sum of £794,655.00. The original contract was awarded for the sum of £725,345.00. Subject to the approval of the contract extension, the total approved sum will be £1.52m.

2. Approval of this extension to the contract will result in a variation in the value and an extension to the programme.

3. Agrees the total costs contained within the exempt report.

Reasons for decision 

The extension to the contract would enable the strip-out works to continue to make the blocks ready for demolition by a specialist contractor.

The main demolition was programmed to commence from October - December 2025 and would include for the demolition of the Northolt and Stapleford North blocks.

It was essential that the strip-out works to both blocks were completed prior to the start of the main demolition programme, otherwise this could delay the works to demolish the blocks to make the site ready for the construction of 68 new homes.

Alternative options considered

Do nothing and programme the additional works as a standalone contract. This was considered but quickly discounted. The reason for this was because there was an incumbent contractor on-site, and procuring a separate contractor would not only delay the works, but render the current project incomplete and result in higher costs due to the procurement timeframe if another contractor was appointed to carry out the works.

The option to include the additional works as part of the main demolition programme was considered. Discussions with the design team directed the decision to include these works as part of the existing contract. This was because pre-market engagement with demolition contractors concluded that contractors would rather a project which has been de-risked i.e., made free from asbestos, mechanical and electrical services and all fixtures and fittings. Cost control on a de-risked project would be easier to manage, and programme predictability for the client and contractor was more favourable when a demolition project had been stripped and cleared prior to starting the main demolition works.