Issue - meetings

This report sets out the proposals for a 19-unit new build social housing development at Larch Close, Grantham.

Purpose of report

This report set out the proposals for a new build social housing development at Larch Close, Grantham and also recommended that the new build contract be awarded to Mercer Building Solutions Ltd.

Decision

That Cabinet:

1.    Approves the outcome of the tender process and appoints Mercer

Building Solutions Ltd. as the preferred contractor for the construction of the housing development at Larch Close Grantham.

2.    Delegates to the Deputy Chief Executive and Section 151 Officer, in

consultation with the Cabinet Member for Housing, to enter into a contract with Mercer Building Solutions Ltd to build 19 units at a cost of £3,833,555.

3.    Delegates to the Deputy Chief Executive and Section 151 Officer, in

consultation with the Cabinet Member for Housing, to apply for amendments to the planning permission from the Local Planning Authority in order to ensure the development meets current housing needs and delivers value for money.

4.    Subject to the outcome associated with Recommendation 3, agrees to

delegate to the Deputy Chief Executive and Section 151 Officer, in

consultation with the Cabinet Member for Housing, authority to vary the

construction contract accordingly.

Alternative options considered and rejected

The Council could have delayed commencement of the scheme or decided not to proceed with the development.

Reasons for decision

Developing the site would support the Council’s need for housing. Therefore the recommendation was for the contract to be awarded so works could commence in summer 2024.

The procurement process had been carried out in accordance with the Council’s Contract and Procurement Procedure Rules and the Public Contract Regulations 2015.

Two years’ prior planning permission had been granted for 21 dwellings on the site, which consisted of nineteen flats or apartments, and two 4-bedroomed houses. This decision only concerned the nineteen flats or apartments; at the time of the planning application two 4-bedroomed houses seemed the best option. The latest housing needs analysis showed a need for one or two bedroomed dwellings. The intention was to return to Planning Committee and request substitution of the two 4-bedroomed houses with four 2-bedroomed dwellings.

This was one of the more expensive and larger Council developments, however it was a legacy project that had been subject to a robust tender process. There was an expected positive financial return on the investment of £60,000 per annum. The project was wholly funded from Housing Revenue Account (HRA) receipts.