Purpose

Cabinet is recommended to:
 

(1) 
Note the opportunity to ensure this strategically important pan
London scheme is built, subject to planning permission and future
governance, and that quality, cost, programme and engagement
related to this are well managed throughout the process through the
council taking a direct lead over design and build.

(2) 
Approve the council taking on the development manager role to
design and build the LSCH, details of which are set out in
paragraph 3.10-3.11 working alongside the London Councils project
team to deliver the LSCH on behalf of London LAs.

(3) 
Note that, although design and build costs will be met through
grant funding provided by DfE, taking on the development manager
role does have an element of capital cost risk (see Exempt Appendix
3) . The intention is for this risk to
be mitigated by entering into legally binding agreements with
London LAs to share residual capital costs and these agreements
would need to be entered into before the main works contract is
signed.

(4) 
Approve an initial project delivery budget of £X to cover
design, technical and other consultant fees, surveys and staff
costs. These costs will be fully covered by the DfE.

(5) 
Delegate authority to the Corporate Director – of Capital
Strategy & Delivery:

•           
To proceed with the procurement of projects

•           
To award contracts
 

(6) 
Delegate Authority to the Strategic Director of Place in
consultation with the Strategic Director of Resources to enter into
any legal agreements with the DfE and other LAs in relation to the
design and build arrangements for this scheme.
 

Content

Cabinet:
 
(1)         
agreed to the council taking on the development manager role to
design and build the LSCH, details of which are set out in
paragraphs 3.10 - 3.11 of the report, working alongside the London
Councils project team to deliver the project on behalf of London
Local Authoritys (LAs);

 
(2)         
noted that, as per paragraphs 7.1 - 7.6 of the report, although
design and build costs will be met through grant funding provided
by the Department for Education (DfE), taking on the development
manager role does have an element of capital cost risk. The
council’s continuing role as development manager is subject
to the London LAs entering into legally binding agreements with the
council to share the residual capital costs and these agreements
would need to be entered into before the main works contract is
signed;
 
(3)         
agreed an initial project delivery budget of £3.7m to cover
design, technical and other consultant fees, surveys and staff
costs. These costs will be fully covered by the DfE;
 
(4)         
delegated authority to the Corporate Director of Capital Strategy
& Delivery:
·        
to proceed with the procurement of design and technical consultants
required to complete the project; and
·        
to award contracts.
 
(5)         
delegated authority to the Strategic Director of Place in
consultation with the Strategic Director of Resources and the
Corporate Director of Governance and Law to enter into any legal
agreements with the DfE and other LAs in relation to the design and
build arrangements for this scheme, including for cost risk
sharing.
 

Options & Alternatives Considered

The council could decide not to take on the
development manager role and lead the design and build of the
scheme. The risk of not taking on the role would further delay the
delivery of this strategically important pan London residential
provision and the due diligence review of the scheme undertaken has
satisfied the council that the risks identified of taking on the
scheme can be mitigated.