Purpose

Decision to award Stage 2 main works contract
for construction of Vincent Street

Decision

Decision:
 
For the reasons set out in
the report and its appendices Cabinet RESOLVED to Agree:
 
i) 
To entering into the
2nd stage JCT Design & Build contract with Hill
Partnerships Limited.
 
ii) 
To approve a budget of up to the maximum
capital value of £73m, subject to a final satisfactory cost
submission being received within the agreed capital
envelope.
 
iii) 
To exercise value
engineering of the final cost submission to ensure the appropriate
balance of quality and value is achieved.
 
iv) 
To deliver a further report on the final
cost submission of Vincent Street to the Corporate Director of Inclusive Economy
and Housing prior to entering into contract.
 
v) 
To delegate authority to Corporate
Director of Inclusive Economy & Housing in consultation with
the Lead Member for Inclusive Economy and Strategic Housing
Delivery and Lead Member for Housing Services to enter into
the JCT Design & Build contract.
 
Alternatives Considered
 

a) 
Not to progress the award of the main works
contract. A new procurement exercise could be undertaken using the
RIBA stage 4 design information developed under the PCSA contract.
This would cause a delay of at least six months and would further
frustrate the regeneration of the Canning Town estate, which has
been ongoing since 2005. The council would incur additional cost
associated with running and reviewing a new tender and there is no
guarantee a new tender would result in a lower price submission.
With current cost inflation, there is a risk the construction cost
increases. If the scheme is not progressed expediently, the GLA
could also request the council returns the £14.7m grant
funding under the grant funding agreement. 

 

b) 
To do nothing – the land has been vacant since
2016. Not delivering the scheme means that the council fails to
deliver the much needed affordable housing.