Decision details

Approval was sought to increase the Housing Revenue Account (HRA) Capital Investment Programme Budget for completion of the major project at Alfred Gunn House.

Reasons for recommendations

As the projected total cost of the project has risen, compared to the original contract value, Cabinet approval was required in order to authorise the additional £9.997m to £11.254m spend from the HRA Capital Investment Programme.

Alternative options considered

The option to terminate the current contract and re-tender for the outstanding work had been considered by officers but had been ruled out on the basis that additional costs had already been incurred and there had been no significant breach of contract by the contractor that would entitle the council to terminate.

Resolved:-

(1)     that approval be given to increase the Housing Revenue Account Capital Investment Programme budget by an amount in the range £9.997m to £11.254m for completion of the major project at Alfred Gunn House, which includes the refurbishment of the block, new build flats within the block and new build homes in the vicinity of the block;

(2)     that the Director of Housing, in consultation with the Director of Finance, be authorised to remodel the Housing Revenue Account (HRA) Capital Investment Programme in order to accommodate the increased costs set out at Resolution (1);

(3)     that the Director of Housing, in consultation with the Director of Finance and the Director of Law and Governance and Monitoring Officer, be authorised to identify and implement the appropriate process for approving contract variations, in accordance with legal, financial and procurement procedures and advice;

(4)     that negotiations with the contractor, Seddon, be finalised in order to confirm the full and final costs of the Alfred Gunn House project, which shall not exceed £11.254m, and the completion date for the project;

(5)     that a review of contract performance and management on the Alfred Gunn House project be undertaken in order to learn the lessons and put more robust project and contract management in place for ongoing and future major complex projects of this type, and the review be reported to the Cabinet Member for Housing