On Tuesday 8th April 2025, Newham Council's Officer Key Decision meeting addressed the delivery of capital works at the borough's leisure centres. Conrad Hall, Director of Resources, approved the recommendation to commission Greenwich Leisure Ltd (GLL) to undertake mechanical, electrical, and building fabric works at Newham’s leisure centres for £3.118 million. This decision was made after a previous procurement exercise was suspended, as engaging GLL was deemed more cost-effective and efficient.

Leisure Centre Capital Works

The main item under consideration was the proposal to have Greenwich Leisure Ltd (GLL) undertake capital works at Newham , East Ham and Atherton leisure centres.

Background

In September 2017, the Cabinet approved a 10-year capital programme with a budget of £9.9 million to upgrade Newham’s leisure centres. In early 2024, a procurement exercise was conducted to secure a mechanical and electrical contractor for works across the three leisure centres. The most economical tender received was £4.613 million, but the available budget was subsequently reduced to £4.303 million.

On 1 April 2025, the council entered into a leisure management contract with Greenwich Leisure Ltd (GLL) to manage leisure centre operations. This contract included provisions for GLL to deliver capital works to maintain the centres.

Decision

Conrad Hall, Director of Resources, approved the recommendation to commission GLL to undertake the mechanical, electrical, and building fabric works at the leisure centres for an estimated £3.118 million.

Rationale

Several factors contributed to this decision:

• Cost Savings: GLL's established supply chains and economies of scale allow them to secure better value for money compared to the council's previous procurement efforts. The competitive tender for mechanical and electrical works alone was £4.613 million, significantly higher than GLL’s estimate for the broader scope of work.
• Efficiency: Engaging GLL, as the incumbent contractor, streamlines the process and reduces the risk of delays and financial claims. According to the report, GLL can deliver the works in line with their operations, thus reducing the likelihood of financial claims for loss of earnings to the Council.
• Contractual Mechanism: The leisure management contract with GLL allows the council to request GLL to carry out the capital programme for the leisure centres. This mechanism ensures that GLL obtains the best value when awarding capital works, providing value for money for the council.

Alternative Options

The alternative option of continuing with the original procurement exercise was rejected because it was not recommended for the reasons set out in the report.

Policy Alignment

The decision aligns with the council's policies and priorities, particularly:

• Pillar 1: Focuses on the health, happiness, and wellbeing of residents. The conveniently located leisure centres provide affordable and accessible activities.
• Pillar 2: Aims to enable every resident under 25 to be safe, happy, and cared for with positive activities. The leisure centres are inclusive spaces for residents of all ages and backgrounds.
• Corporate Delivery Plan: Supports the health and wider well-being of the community.

Financial Implications

The capital funding of £9.9 million was approved in September 2017 for maintaining the council’s leisure assets for 10 years. As of 1 December 2024, the unspent balance was approximately £3.768 million. The revised estimated cost for the work by using GLL is £3.118 million, which is 82.7% of the available funding. The schedule of work will result in a re-profiling of the budget, with the 2024/25 budget allocation being underspent and the underspend required in 2025/26 when the majority of the work is undertaken.

Legal Implications

The works are a contractual obligation of the council under the leisure management contract with GLL. The contract allows the council to either carry out the works itself or require GLL to do so, with GLL required to ensure best value for such works.

Equalities Implications

The council is committed to the Public Sector Equality Duty (PSED) under section 149 of the Equality Act 2010¹, ensuring that it eliminates discrimination, advances equality of opportunity, and fosters good relations between those who share protected characteristics and those who do not.