In a delegated Officer Key Decision, Conrad Hall, Director of Resources, approved the proposal to commission Greenwich Leisure Ltd (GLL) to undertake capital works at Newham’s leisure centres. This decision, made on 8 April 2025, allows GLL to carry out mechanical, electrical, and building fabric works at Newham, East Ham and Atherton Leisure Centres for an estimated £3.118 million. The decision was made in consultation with Councillor Zulfiqar Ali, Cabinet Member for Resources.

Leisure Centres Capital Works

The key decision was to approve Greenwich Leisure Ltd (GLL) undertaking the proposed mechanical and electrical capital works in Newham’s leisure centres under the existing leisure management contract, for a value of £3.118 million.

The council had previously approved a 10-year capital programme in September 2017 to upgrade Newham’s leisure centres, allocating a budget of £9.9 million. As part of this programme, a procurement exercise was initiated in early 2024 to secure a mechanical and electrical contractor for works across East Ham, Newham and Atherton Leisure Centres. The most economical tender received was £4.613 million, but the allocation was subsequently reduced to £4.303 million.

With the commencement of the leisure management contract with GLL on 1 April 2025, the council had the opportunity to engage GLL for these capital works. This was seen as a more cost-effective approach due to GLL's established supply chains and ability to integrate the works with their operations, reducing the risk of financial claims for loss of earnings to the council.

GLL have indicated that they can deliver the mechanical and electrical and building fabric works (see appendix 1), for an estimated value of £3,118k (costs will be confirmed once tendered). This provides value for money for the Council as the competitive tender for the mechanical and electrical works alone was £4,613k, some £1,495k higher than GLL’s estimate for the full mechanical and electrical and building fabric works.

The report notes that the leisure management contract contains mechanisms to ensure that GLL obtain best value when awarding capital works, using fully auditable open book accounting processes. The decision record [Public reports pack 08th-Apr-2025 Officer Key Decision] states that prioritising works will ensure a maximum return on investment, and works will be value engineered to meet current service and budget requirements.

Alternative options, such as continuing with the original procurement exercise, were considered but rejected because using GLL was considered better value for money.

The capital works at the leisure centres are intended to support the council's policy priorities, specifically:

• Improving the health, happiness, and wellbeing of residents.
• Providing safe and positive activities for residents under 25.
• Supporting the health and wider well-being of the community, in line with the Corporate Delivery Plan.

The decision is subject to the Public Sector Equality Duty¹, ensuring that the council gives due regard to the need to eliminate discrimination, advance equality of opportunity, and foster good relations between people who share protected characteristics and those who do not.