Decision

To instruct all agreed remedial works, as set out under the JSC report July 2026, under the existing management contract with Cheesmur & Sons (Lewes) Limited for the Albion Street development project.

To accept any relevant grant funding should this be made available by Homes England or any other applicable funding body.

Reasons for the decision

The value of the additional works can be administered as a variation under the Public Contract Regulations 2015 (Superseded by the Procurement Act February 2025 but as this contract was let under the Public Contract Regulations 2015 its variation terms apply).

This is the quickest route to completion of the remedial works and will be beneficial in preventing the further deterioration of the existing building over the autumn and winter months 2026-2027.

It will minimise the on-costs associated with security and contract management as the project will continue without a break and with the existing security and contract management arrangements in place.

If the current contractor, Cheesmur were to vacate the site and pass possession back to Adur District Council (ADC) a site guard may be required to prevent burglary and unauthorised occupation.  The minimum cost for guarding the existing building if vacated by the current contractor may be in the order of £50,000.

The delays relating to re-procurement would also add another 6-18 months’ inflation - currently at a minimum of 4%.

Further delay to occupation would defer rent and service charge income.

Alternative options considered

Re-procurement options in compliance with the contract standing orders can be summarised as follows:

1. Run an invite only tender process involving at least 5 contractors. (6-9 Months)

2. Run an open tender process. (9-12 Months)

3. Run a staged (competitive flexible) process. (12-18 months)

4. Use a compliant framework + Framework fees. (6-9 months)