Purpose

Works are required to the road and utilities infrastructure within Phase 1 of the South Lincolnshire Food Enterprise Zone (SL FEZ) to complete the development in accordance with the approved planning permissions (Refs. H09-0612-18 and H09-0934-19) and to achieve compliance with adoptable construction standards.

Completion of these works is not discretionary. They are required to fulfil the Council's obligations arising from the approved planning permissions and to enable the infrastructure to be offered for adoption by the relevant statutory authorities. The proposed works will therefore complete the approved scheme and deliver the outcomes previously authorised through the Council's Key Decision process (Decision Reference I015183).

Phase 1 of the SL FEZ was delivered in two stages, with Phase 1A completed in 2020 and Phase 1B in 2021. Whilst the majority of the infrastructure was successfully delivered, a number of works remain outstanding or now require remediation. This position arose as a consequence of the contractor going into to administration in 2021. The passage of time has also resulted in additional remedial works being identified to ensure the infrastructure meets current adoptable standards.
The works are proposed to be delivered through a Construction Delivery Agreement with Lindum Group Ltd. using the SCAPE Framework. This approach provides an efficient and compliant procurement route, enabling early contractor involvement and building upon the design development and site knowledge previously established through preparatory work for the proposed Phase 2 development.

The estimated scheme cost is £1,050,000. This includes an appropriate risk allowance to manage unforeseen works that may be identified during construction. Any unspent contingency will remain within the project budget and will not be expended unless required.

Decision

That the final form of and the entering into of all contract documentation required to deliver improvements to the road
and utilities infrastructure at the South Lincolnshire Food Enterprise (Phase 1) be approved.

Alternative options considered

Option 1 - Do Nothing (Not Recommended)
This option is not considered to be a viable course of action. The outstanding works are required to complete the development in accordance with the approved planning permissions (Refs. H09-0612-18 and H09-0934-19) and to achieve infrastructure that is capable of adoption by the relevant statutory authorities. Failure to complete the works would leave the Council unable to fully discharge its obligations under the planning permissions.

In addition, the road infrastructure could not be offered for adoption by the Highway Authority, risking further asset deterioration, future remedial costs and reputational damage. It would also be likely to reduce market confidence and hinder the development and occupation of the remaining employment plots, thereby delaying the economic benefits and job creation that the South Lincolnshire Food Enterprise Zone is intended to deliver.

Option 2 – Seek to Vary the Approved Planning Requirements (Not Recommended)
Consideration was given to seeking amendments to the approved planning permissions to reduce or remove the outstanding infrastructure requirements. This option is not considered to be practical or likely to succeed. The majority of the development has already been constructed and occupied, with businesses operating from completed plots and significant infrastructure already in place.
Any application to vary the approved planning permissions would be subject to a separate statutory planning process with no certainty of approval. Such an approach would introduce further delay, additional design, planning and legal costs, and is likely to exceed the cost of completing the outstanding works. Furthermore, there is a significant risk that the fundamental requirement to provide adoptable infrastructure would remain.