Agenda item

The Head of Major Works, Housing introduced the report and the rationale for the report was explained.

It was explained that the works were being undertaken as part of the overall work to improve the Broadwater Farm estate.

It was stressed that UK Power Network was the only viable option to undertake the works required on the site.

RESOLVED:

That the Cabinet Member for Council Housebuilding, Placemaking and Development:

1. Pursuant to Contract Standing Order (CSO) 2.01.c (Cabinet Member approved awards of Contract valued at £500,000 or more), approved the extension of the contract sum and programme for UKPN to a total value of £615,489.95 which included the sum of £248,132.00 for 4nr variations outlined in Appendix A, Section 6. Background information of the report.
   
   
2. Noted that pursuant to Contract Standing Order 2.05.1 (O) a Director might have authorised any subsequent Contract Extension(s) and/or Variation(s).
   
   
3. Approved to extend the contract sum and programme enabled UKPN to relocate high and low voltage cables and decommission the substation on Tangmere and divert other essential cables across the estate. These works allowed the Tangmere site to be demolished to make way for the construction of 139 new homes and 7 enterprise units. The new homes programme was due to commence March 2026; therefore, it was essential that the Supplier completed the relocation of the cables to avoid significant delays to the new homes programme.
   
   

Reasons for decision

This report sought approval to authorise 4nr cost variations in the total sum of £248,132.00. Approval of the variations increased the contract sum to £615,489.95 and allowed the Supplier to continue the relocation of high and low voltage cables from within the boundary of Tangmere and reposition them in the main highway of Willan and Gloucester Road.

Works also included decommissioning the substation on the Tangmere site to enable the demolition works to complete. All works were carried out on the Broadwater Farm Estate.

UKPN was the only contractor / supplier who was authorised to carry out the works, therefore, approval was required to vary the value and programme of the original contract. The original contract was awarded to the Supplier in the sum of £367,378.95 via Delegated Authority on 14 June 2024. Subject to approval – this variation saw the contract increase by £248,132.00 to a total sum of £615,489.95.

Alternative options considered.

The following options were considered: -

Do nothing - This option was not possible, as the substation to Tangmere required decommissioning to enable the demolition works to continue. There was also a need to relocate the high and low voltage cables from within the boundary of the site and reposition them in the main highway of Willan and Gloucester Road. Failure to carry out these essential works would have prevented the demolition of Tangmere and delayed the start of the New Homes Programme. UKPN was the only contractor authorised to carry out these works, therefore it was not possible to seek alternative quotations – meaning the only option was to vary the contract sum and programme.

Delay the electrical works until the start of the New Homes Programme – These works were essential enabling works for the next phase of new build homes. Delaying these works would in turn have delayed the start of the new build works.

In view of the above, the only suitable option was to approve the variations and instruct the supplier to continue with the essential works.