Agenda item

This report sets out the proposals for a 20-unit new build social housing development at Swinegate, Grantham and to recommend that the new build contract be awarded to Lindum Group Ltd.

Purpose of report

This report sets out the proposals for a 20-unit new build social housing development at Swinegate, Grantham and to recommend that the new build contract be awarded to Lindum Group Ltd.

Decision

That Cabinet:

1.         Approves the contract award to Lindum Group Ltd to undertake works to facilitate and deliver the development of a 20-unit new build housing scheme at Swinegate Grantham for the sum of £3,519,690.

2.         Agrees to delegate price variations to the contract of no greater than 10% to the Chief Finance Officer, in consultation with the Cabinet Member for Housing and Property, due to the complexity of the new build and the associated price volatility.

Alternative options considered and rejected

Option 1 – to appoint Lindum via the Scape Framework on the works to facilitate and complete the development of a scheme of 20 new build housing units at Swinegate, Grantham for the sum of £3,519.690.

Option 2 – to allow Lindum to manage remaining pre-construction phase through to Royal Institute of British Architects (RIBA) Stage 4, in order to bring the scheme forward for construction phase works to be procured separately via an open tender process. This was not considered necessary as the Council’s Contract Procedure Rules allowed for the use of Frameworks, and utilising the Framework ensured all due diligence had been undertaken on the named contractors and would ensure the scheme could progress without unnecessary delays.

Option 3 – not to progress the scheme following the viability and pre-construction phase works undertaken by Lindum. New Build delivery was a key element of the Council’s Corporate Plan and adding new units to social housing stock was necessary to sustain the viability of the HRA financial Business Plan.

Reason for decisions

Following the completion of the open tender procurement process, it was recommended that Lindum be awarded the works contract. 

This process was in accordance with the Council’s Contract and Procurement Procedure Rules and the Public Contract Regulations 2015.

The acquisition of the land was driven by several objectives including enabling the Council to achieve land in a strategic location with the potential to acquire other adjacent sites identified as regeneration opportunities; this was to be undertaken whilst improving the street scene. The acquisition of the land would demonstrate the pursuance of a development opportunity in the centre of Grantham.

Construction was now ready to commence. The appointment of Lindum, and the progression of the scheme to RIBA Stage 4 would provide the Council with a high degree of financial certainty. The costs of bringing the scheme through construction to completion was £3,519,690.

Detailed costings would be established to enable accurate budgeting of the construction stage. The Council would be advised of anticipated cash flow to facilitate stage payments over the contract period along with any other consultants’ appointments. The existing viability report from Lindum would produce a build cost of £175,985 per unit.

To facilitate the Swinegate development and deliver the optimum scheme there was a requirement to undertake alterations to the entrance and exit of the Watergate car park and its layout. This was projected to remove 16 chargeable car parking spaces. However, there were a range of other parking spaces available within Grantham, and some of the existing car parks were under-utilised.

The planned closure of the Westgate car park would result in 37 parking bays being out of use for the duration of the anticipated 61 weeks’ work. The scheme in its current design would result in the loss of approximately 10 bays from the existing 95, with a further 6 bays lost due to the car park entrance revisions.

The following points were raised during debate:

• A Grantham Councillor, whilst welcoming the proposed new dwellings, had highlighted that a number of residents living on Swinegate used the Watergate car park out of normal hours, and the loss of 16 spaces would have an impact on these residents. There would also be an impact on the parishioners at St Wulfram’s Church; however it was highlighted that there would be the opportunity for residents to purchase a parking permit for one space each.
• The Scheme would make use of currently under-utilised space and a derelict building, whilst revitalising the street scene.