This meeting was scheduled to include the consideration of a report on the procurement of a contractor to fit out the new St James Health Hub at the Jazz Yard development in St James Street, Walthamstow.

St. James Health Hub Fit Out Procurement

The report pack included for discussion a proposal that the Council commences the procurement of a contractor to fit out the St James Health Hub on St James Street in Walthamstow. The report recommended that this procurement be done through the LCP Framework.

The report described the Health Hub as a 1,200m² development that will be located on the ground and first floors of the Jazz Yard development. The development will replace the existing St James Street Medical Practice further along Brunner Road which is to be demolished and replaced with student accommodation.

The report explained that the fit-out was originally planned to be funded by a grant, but that this is no longer possible:

Due to its financial governance, the ICB is unable to sign a lease for the Health Hub space.

To overcome this, the report proposed that the Council takes on the burden of funding the fit-out of the building, and recovering the cost from the Integrated Care Board (ICB) over the lifetime of a 30-year lease with Health Care Space Newham (HCSN).

The report set out a number of options for the procurement of the fit-out contract including doing nothing, directly awarding the contract to a contractor, an open tender process, using the LCP Framework, and using the PAGABO Framework.

The report recommended using the LCP Framework, with the PAGABO Framework being used if that approach was unsuccessful. Explaining that:

there is a high level of uncertainty in the construction market now, being caused by various factors including material costs, inflation, Brexit and shortages in the labour market.

The report explained that this approach had been agreed in principle at a meeting of the Strategic Commissioning Board on 12 September 2024.

The report also requested approval to increase the budget for the fit out to cover the increased cost of the project since it was originally agreed by the Council's Cabinet in 2020.