Decision details

In accordance with the Cabinet Decision E3306, giving full approval of the budget for the construction phase, and the duly amended budget in the Council Budget and Council Tax report, February 2022, the Director of Place Management in consultation with the S151 Officer, now authorises the sealing of the Building Contract.
Following the issue of a Limited Letter of Intent in early January 2022, to Northstone, first stage site clearance and tree/hedgerow removal works started on site at Pixash in mid-February. These works were completed and a continuation of groundworks and ongoing contract design development and mobilisation has been achieved to ensure continuity to the full scheme start.

To authorise the completion of the Building Contract with the contractor Northstone Limited and all ancillary agreements necessary to execute the contract, to enable the construction to proceed in line with the contract programme and approved budget.

Option: To not go ahead which would increase the risk of significant further cost inflation, and the potential need for a re-procurement exercise. This is not recommended due to the current construction market which is experiencing very high levels of inflation and labour and materials shortages. The market is experiencing more disruption and cost pressures due to the Russia-Ukraine war.
Delay in contract award in entirety would further increase contract costs and impact other related works and services, where prolongation of lease agreements and potential loss of grant funding are further risks to programme and cost.