Purpose

To consider entering the final stage of the
design and build construction contract with the preferred
contractor to construct Phase A of the Lakes Estate Regeneration
Project.

Content

RESOLVED:

1.            
That the public and press be excluded from the
meeting by virtue of Paragraph 3 (Information relating to the
Financial or Business Affairs of the Authority) of Part 1 of
Schedule 12A of the Local Government Act 1972, in order that the
meeting may consider the exempt Annexes to the
report.

2.            
That in respect of Lakes Phase A Regeneration
project, Cabinet note:
a)    significant changes to the financial environment and project
brief since the July 2021 decision to approve a capital budget for
the project; and
b    
the preferred contractor engagement carried out
under the Preconstruction Services Agreement (PCSA), since the July
2022 decision, in order to ensure a fully costed design and value
for money scheme specification.

3.            
That an increased capital budget for the delivery of
the revised Lakes Phase A, reflecting a revised full spend capital
budget of £83.774M Gross with (£68.789M Net Homes
England Grant), be agreed.

4.            
That increased borrowing within the Capital
Programme for up to £83.774M, be recommended to Special
Council on 5 December 2023 for approval.

5.            
That subject to approval of the required capital
budget, and the Lump Sum Main Contract offer from Graham
Construction, (at the conclusion of the PCSA period  in December 2023), being within the revised scheme
budget:
a)
   authority be delegated to the
Director Environment and Property, and the Director of Finance and
Resources in consultation with Cabinet Member for Adults, Housing
and Healthy Communities, to agree specific allocation of capital
resources; and
b)   the
appointment of Graham Construction to undertake the construction of
the works under a JCT Design and Build Lump Sum Contract, be
agreed.

6.      That the Council enter
into a Homes England Grant Agreement:
a)    subject to the
agreement of the Director of Finance and Resources and the Director
of Law and Governance, to draw down a grant of £14.985M;
and
b)   noting that should
Windermere Drive (Site A1) not complete before 31 March 2026 there
is a risk of losing up to £5M of Homes England grant
funding.