Purpose

Award of the main works
contract for Bells Gardens and Lindley Estate, to Durkan Limited (Durkan)
for a ‘not to exceed cost allowance’ of
£62,691,879 commencing from 7 August 2023 for a period of 82
weeks. Providing 127 new homes at a total cost of £637,613
per unit.

Decision

1.   That the award of the main works
contract for Bells Garden and Lindley Estate, to Durkan Limited
(Durkan) for a ‘not to exceed cost allowance’ of
£62,691,879 commencing from 7 August 2023 for a period of 82
weeks, providing 127 new homes at a total cost of £637,613
per unit, be approved.
 
2.   That it be
noted that the main works contract meets the Greater London
Authority (GLA) funding requirements, and that the pre-construction
service agreement (PCSA) is ongoing and includes a provision to
terminate the main works contract at the council’s
discretion.
 
3.   That the changes to the
procurement strategy since the original Gateway 1 procurement
strategy report dated 2 February 2021, as further detailed in
paragraph 12 of the report be noted.
 
4.   That it be noted that the total
scheme costs of £80,976,824 includes; pre-construction
service agreement (PCSA) and Enabling (minor) works contracts at
£4,802,144 of which £3,059,193 was approved in a
separate the Bells and Lindley combined PCSA and Enabling (minor)
works reports on 18 July 2022, associated on-costs of
£7,201,694.60 and a 10% contingency sum of
£6,706,829.
 
5.   That it be noted that approval
will be sought in a separate gateway (GW) 3 report for a variation to the value and contract
period of the PCSA and variation to the value of the Enabling
(minor) works contract which have increased by £1,317,229 to
a total of £4,376,420.
 
6.   That it be
noted that this scheme will receive grant funding from the
Greater London Authority (GLA) to the sum of
£12,700,000.