Minutes:
The Executive Member for Regeneration and the
Director of Regeneration and Culture submitted a report for the Executive’s
consideration. The purpose of the report was to provide an update on the project’s
progress and seek delegated approval for the phase two contract award.
Following the purchase of Fountain Court in
spring 2021, a lot of work had been undertaken to ensure the building would
meet the Council’s requirements to be a modern, collaborative place to
work. The report, which had been
submitted to the Executive on 5 October 2021, approved the £7m budget required
to refurbish and fit out Fountain Court ahead of its occupation by Council
staff.
Following survey and design work, in October
2021, Overbury Plc were appointed by Middlesbrough Council to carry out the
phase one demolition and strip out of Fountain Court. The phase one works commenced in November
2021 and had removed walls, old kitchens, WCs and mechanical and electrical
services ready for the phase two refurbishment and fit out works.
The phase one contract also included the
creation of larger window openings ready for new windows to be installed, as
the current windows were nearing the end of their life. Most of the new windows would be floor to
ceiling height, which planned to significantly improve natural light and the
building’s internal and external appearance.
Moreover, they would be opening windows, which planned to improve the
building’s ventilation. The phase one
strip out works was completed on 18 February 2022.
The phase two work was originally intended to
be delivered through the phase one contractors, Overbury. Overbury had submitted its phase two tender
to the Council at the beginning of December 2021. The tender return was in sections, the first
being the installation of all Mechanical and Electrical (M&E) works and the
second covering the builders work to refurbish the building pre-furniture
install.
The M&E tender return was within the target
costs set out in the scope of the work, however, the builders work was
significantly over the allocated budget.
The Council offered some value engineering in an attempt to bring the
cost down, albeit that was not enough to achieve the saving and establish best
value for the work.
As such, the Council issued a new set of tender
documents to five contractors on 31 January 2022 and their tenders had been
returned on 7 March 2022. The
contractors had been selected based on their specialism and track records. That was for the builders work only and
management of the lowest M&E contractor from the December 2021 tender
return.
After completion of the phase one work, a
security firm would be on site to safeguard the building until the main
contractor started work on site in April.
The completion date for the phase two work
would be confirmed through the tender process but was targeted for the end of
August 2022, with the furniture install and ICT fit out taking place in early
September, ready for occupation.
The timetable for the project was summarised in
the table below paragraph 12.
OPTIONS
The other
potential decisions that had not been recommended included:
The
Council could do nothing - If the Council did not grant delegated approval, the
decision to award the contract would have been submitted to the Executive for
approval, which would have caused an unnecessary significant delay to the
programme and the date for occupation.
ORDERED
1. That the progress made on phase one works at Fountain Court
be noted.
2. That approval for the award of the phase two refurbishment
works contract be delegated to the Director of Regeneration and Culture,
Richard Horniman and Director of Finance, Ian Wright.
REASON
The costs
provided by Overbury for phase two were in excess of the available budget and
value for money could not be evidenced.
In order to maintain programme, it was imperative the Council could
award the contract for phase two to an alternative contractor without delay following
receipt of a suitable tender for the works on 7 March 2022. Delegating approval for the award of the
phase two refurbishment works would ensure the contract could be awarded in an
expedient manner.
Supporting documents: