Purpose

This report seeks approval to enter Deeds of
Variation to the existing JCT Design and Build contracts with
Higgins Partnerships to deliver 81 new homes together with shell
and core of a new public gym, on the site of the former Manor Park
Fitness Centre known as Greenhill and 70 new homes at John Street
(former boxing club and single lock up garages).

Decision

Decision:
 
For the reasons set out in
the report and its appendices Cabinet RESOLVED to Agree to:
 

i) 
The revision and enter into the deeds of variation of the two
following contracts with Higgins:

· 
Greenhill revised and varied from £32.3m to £43.1m plus
a 5% contingency of £2.2m.

· 
John Street revised and varied from £23.4m to £32.2m
plus a 5% contingency of £1.6m.
 

ii) 
Delegate the Corporate Director of Inclusive Economy and Housing,
in consultation with the Cabinet Member for Housing and the
Portfolio Lead for Inclusive Economy, Housing Delivery and Climate
Emergency and Performance and Transformation, to negotiate an
agreement to end the contract with Higgins for new homes at
Hathaway Crescent at a cost of [detailed in exempt appendices
4].
 

iii) 
Delegate authority to the Corporate Director of Inclusive Economy
& Housing, in consultation with the Cabinet Member for Housing
and the Portfolio Lead for Inclusive Economy, Housing Delivery and
Climate Emergency and Performance and Transformation, to take all
necessary steps to bring the recommendations in this report to a
resolution including and not limited to entering into the relevant
agreements.
 
Alternatives
Considered
 
a) 
A number of alternative options were considered to
address the increased costs on the three projects and the
advantages and disadvantages are outlined in the report.
 
b) 
Use existing contractual mechanism to review
Extension of Time and associated Loss & Expenses. This
option would require Higgins to continue under the current contract
and issue a formal Extension of Time with associated justification
such as cause & effect on programme as well as their associated
Loss & Expenses to be reviewed, in line with the contract
mechanism.
 
c) 
Retender works. This option entailed
terminating the current contract with Higgins and retender the
works under a new competitive procurement.
 
d) 
Open Book approach to existing contract: This
option means Higgins will treat the entire contract sum as a
provisional sum, with the actual cost (which will cover the uplift)
being provided to as and when it happens.
 
e) 
Negotiate out of the John Street and Greenhill
contracts.