Agenda item

In relation to the Pilot Site at Spring Vale, Brook Green

1.1.        To note progress to date with the Rational House development sites as part of the Council’s direct housing development programme (as per the approved Business Plan 2013-17); and the increased delivery capacity  due to greater collaboration  between Rational House and AECOM (a Fortune 500 company).

1.2.        To note that Willmott Dixon Housing (appointed through the National SCAPE Framework) has withdrawn as the main contractor for the Rational House development sites.

1.3.        To note that a value engineering exercise has been carried out and a reduction in base build costs of 6 per cent (10%[1]  allowing for building cost inflation in the intervening period) has been achieved compared to costs reported in May 2013.

1.4.        That approval be given to appoint AECOM Construction Services, without competition, as the main contractor for the Spring Vale scheme and expenditure of £2,781,000 (to be funded from the approved housing development programme Business Plan funding envelope) for construction costs; and  that the Council’s Contract Standing Order 9.2 Section 3 be waived on the grounds that this is in the Council’s overall interest for the reasons set out in section 6 of the report.

1.5.        To note that due to site specific abnormal issues on the Spring Vale scheme, the overall development cost has increased; and therefore that approval be given for additional capital expenditure of £488,000 (to be funded from the approved housing development programme Business Plan funding envelope) as set out in detail in section 7.3 and 7.4 of the report.

1.6.        To note that AECOM Construction Services will undertake an open book sub-contractor tendering exercise for the Spring Vale scheme.

In relation to the Single Contractor Framework Procurement

1.7.        That approval be given to initiate a regulated OJEU procurement (Open procedure) to establish a single contractor framework to deliver the remaining housing development programme sites (excluding Spring Vale and the Hidden Homes schemes); and that that a report be submitted to Cabinet with a recommendation on final selection of the preferred contractor.

1.8.        That authority be delegated to the Cabinet Member for Housing, in conjunction with Executive Director of Housing and Regeneration, to make decisions during the procurement process in order to identify the preferred contractor.

1.9.        That approval be given for expenditure of £50,000 (from the previously approved Housing Development Programme business plan revenue funding) for legal fees to appoint Sharpe Pritchard to advise on the single contractor framework procurement; and £15,000 (from the previously approved Housing Development Programme business plan revenue funding) for CHPL to undertake tender evaluations.

Rational House Development Programme

1.10.      To note the initial appraisal undertaken for the Jepson House development site; and that approval be given for the expenditure of £185,677 (within the existing approved Housing Development Programme budget envelope) for professional fees to instruct City House Projects Limited (under the existing framework agreement) to undertake resident consultation, site investigation surveys, and design to planning (RIBA stage D) which is in line with the previously approved Business Plan funding.

1.11.      To note the Business Plan analysis of the recommendations of this report as set out in section 11 of the report.