Agenda item

The purpose of the report is to seek approval to appoint contract administrators and build contractors for the development of the show homes at Ockford Ridge, Godalming; four affordable homes at Middlefield, Farnham and two affordable homes at Bridge Road, Haslemere, along with a budget allocation for these schemes from the 2015/16 New Affordable Homes Reserve.

Recommendation

That the Executive recommends to Council that approval be given for:-

1.    the allocation of a budget, as set out in the (Exempt) Annexe, from the 2015/16 New Affordable Homes Reserve for the development of two show homes at Ockford Ridge; four affordable homes at Middlefield, Farnham and two affordable homes at 33 Bridge Road, Haslemere;

2.    the appointment of a build contractor for the Ockford Ridge show homes in accordance with the Council’s Contract Procedure Rules to deliver the development within the agreed budget;

3.    the appointment of Lawson Queay to act as Employer’s Agent for Middlefield in accordance with the Council’s Contract Procedure Rules to deliver four new affordable homes within the agreed budget;

4.    the appointment of a build contractor for Middlefield following the successful completion of the tender process in accordance with the Council’s Contract Procedure Rules in consultation with the Director of Resources and the Portfolio Holders for Housing and Finance; and

5.    the appointment of the architect for the post-planning period, a Contract Administrator and a build contractor for 33 Bridge Road following the successful completion of the tender process in accordance with the Council’s Contract Procedure Rules in consultation with the Director of Resources and the Portfolio Holders for Housing and Finance.

The Executive has agreed to RECOMMEND to the COUNCIL that approval be given for:-

1.    the allocation of a budget, as set out in the (Exempt) Annexe, from the 2015/16 New Affordable Homes Reserve for the development of two show homes at Ockford Ridge; four affordable homes at Middlefield, Farnham and two affordable homes at 33 Bridge Road, Haslemere;

2.    the appointment of a build contractor for the Ockford Ridge show homes in accordance with the Council’s Contract Procedure Rules to deliver the development within the agreed budget;

3.    the appointment of Lawson Queay to act as Employer’s Agent for Middlefield in accordance with the Council’s Contract Procedure Rules to deliver four new affordable homes within the agreed budget;

4.    the appointment of a build contractor for Middlefield following the successful completion of the tender process in accordance with the Council’s Contract Procedure Rules in consultation with the Director of Resources and the Portfolio Holders for Housing and Finance; and

5.    the appointment of the architect for the post-planning period, a Contract Administrator and a build contractor for 33 Bridge Road following the successful completion of the tender process in accordance with the Council’s Contract Procedure Rules in consultation with the Director of Resources and the Portfolio Holders for Housing and Finance.

[This item is recommended to the Council for decision and is not subject to the call-in procedure].

[Reason: to seek approval to appoint contract administrators and build contractors, along with budget allocations for the schemes]

[This item contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

            Information relating to the financial or business affairs of any particular person (including the authority holding that information)]

31.1    This item seeks approval to appoint contract administrators and build contractors for the development of the show homes at Ockford Ridge, Godalming; four affordable homes at Middlefield, Farnham and two affordable homes at Bridge Road, Haslemere, along with a budget allocation for these schemes from the 2015/16 New Affordable Homes Reserve.

Ockford Ridge show homes

31.2    In March 2015, approval was given for the use of the Homes and Communities Agency Delivery Partner Panel 2 Framework for the Ockford Ridge project phases A-D and approval for a budget allocation for pre-development costs for the 16 new affordable homes at Site D and two show homes on Site C.

31.3    Planning permission for two show homes was granted on 11 March 2015 and these will be the first new build homes to be built at Ockford Ridge. The build contract for the show homes is outside the main contract and below the OJEU threshold.  A two-stage tender process was used to procure a medium-sized build contractor to build the show homes. Two tender submissions were received at the end of March 2015 and evaluated against the agreed criteria.

31.4    The current approved budget position for Ockford Ridge is set out in the table below and the budget estimate for the development of the two show houses is set out in (Exempt) Annexe 9.

Middlefield, Farnham

31.5    In February 2015, planning permission was granted for the redevelopment of the parking area at Middlefield, Farnham to provide four affordable homes for rent to meet local housing need. The approved layouts of the site and elevation drawings are shown in Annexe 10.  Pre-development services have been provided by Lawson Queay in the role of Employers Agent (EA) who has been working at risk on this project.

31.6    Progress to appoint a build contractor has been slower than anticipated because the first request for expressions of interest in April 2015 resulted in only two returns. The approach has been reviewed and a tender pack has now been issued on 12 June 2015 in full through the Council’s procurement system. Local medium-sized build contractors have been contacted directly to inform them of this opportunity. The deadline for the return of the tender is 17 July 2015.

31.7    Lawson Queay has produced cost estimates for the scheme, including indicative build costs and contingency, set out in the (Exempt) Annexe. The anticipated build programme is 10 months, split over the next two years. There is an approved budget of £690,000 in the 2015-16 New Affordable Homes programme.

33 Bridge Road, Haslemere

31.8    In July 2014, approval to seek planning permission was sought for the development of the site at 33 Bridge Road, Haslemere to built new affordable homes. Since that date, changes have been made to the proposed scheme to better suit the surrounding area and the number of new homes has been reduced from three 2 bedroom flats to two 2 bedroom houses. The proposed site layout and elevation drawings are attached at Annexe 10.

31.9    The submission of a planning application was delayed due to the discovery of bats in the building. Bats are protected under the Wildlife and Countryside Act 1981 and surveys can only be undertaken between May and September, this has impacted on our ability to progress this scheme. The bat survey was completed in early June 2015. A habitat survey has been commissioned to support the planning application due for submission in July. 

31.10  Pre-development services have been provided by WSPA who are currently finalising the planning application submission. A pre-development budget of £12,500 was agreed by Executive on 8 July 2014 to cover the cost of preparing a planning application and the associated survey work ahead of submitting an application.

31.11  Local ward members have been consulted on the proposals and consultation took place with local residents in September 2014. Feedback from this consultation has been incorporated into the proposed scheme. Following submission of the planning application, a further newsletter will be sent to local residents to provide an update.  A Contract Administrator will be appointed in accordance with the Council’s Contract Procedure Rules, as part of the architect’s team and following completion of the tender process, the project will be delivered through a JCT Traditional Contract. This route does not involve the appointment of an Employers Agent.

31.12  Cost estimates for the scheme have been calculated using existing projects, including indicative build costs and contingency, set out in the (Exempt) Annexe. The anticipated build programme is 10 months, split over the next two years. There is an approved budget of £276,000 in the 2015-16 New Affordable Homes programme.

31.13  The indicative timetable for the three developments is shown in the table below:

31.14  The Executive

RECOMMENDS that

14.       the allocation of a budget, as set out in the (Exempt) Annexe, from the 2015/16 New Affordable Homes Reserve for the development of two show homes at Ockford Ridge; four affordable homes at Middlefield, Farnham and two affordable homes at 33 Bridge Road, Haslemere be approved;

15.       a build contractor be appointed for the Ockford Ridge show homes in accordance with the Council’s Contract Procedure Rules to deliver the development within the agreed budget;

16.       Lawson Queay be appointed to act as Employer’s Agent for Middlefield in accordance with the Council’s Contract Procedure Rules to deliver four new affordable homes within the agreed budget;

17.       a build contractor be appointed for Middlefield following the successful completion of the tender process, in accordance with the Council’s Contract Procedure Rules, in consultation with the Director of Resources and the Portfolio Holders for Housing and Finance; and

18.       an architect for the post-planning period, a Contract Administrator and a build contractor be appointed for 33 Bridge Road following the successful completion of the tender process in accordance with the Council’s Contract Procedure Rules, in consultation with the Director of Resources and the Portfolio Holders for Housing and Finance.

[Reason: to seek approval to appoint contract administrators and build contractors, along with budget allocations for the schemes]