Agenda item

The Update in respect of the Construction of the Waste Depot, Turnpike Close Grantham was presented by the Cabinet Member for Property and Public Engagement.

Budget approval of £8.8 Million had been granted for the project by the Finance OSC’s of September 2023 and February 2024.

Since the last meeting, significant project milestones had been achieved – specifically the conclusion of the value engineering, the signing of the construction contract and the mobilisation of the contractor onto the site. The mobilisation of the contractor had commenced approximately two weeks earlier than initially anticipated and Lindum had also reduced the construction period to 50 weeks. The target completion date was therefore scheduled to be 7 October 2025, meaning an operational go-live date of mid-November 2025, allowing a four-week relocation and mobilisation period. This relocation period would require one-off funding to be sought to the value of £500,000. 

The timeframes for the updated proposed programme were outlined within the report.

During discussions, Members commented on the following:

-       Why the £500,000 one-off funding being sought was not factored into the initial estimations, especially given the further 10% increase secured in February 2024. It was confirmed by the Deputy Chief Executive and Section 151 Officer that the initial budgeting had been done by consultants who had presented their methodology to the Committee at the time. The necessity for one-off additional funding had not become clear until March 2024 when the figures from the sector identified this shortfall due to changes in the market. 

-       It was queried how the consultants had reached the original £8 Million budget figure. It was confirmed the figure had been determined by Gleeds Consultants and had been negotiated down by SKDC officers. The Deputy Chief Executive and Section 151 Officer stated their belief that even with an additional £500,000 of funds, this was still value for money given the quality of the product.

-       A Member expressed their concern citing the contingency fund prior to the additional funding secured in February 2024 was 15%, following the securing of the funding the contingency fund dropped to 5.2%. It was the Member’s belief that the one-off funding request of £500,000 would not have been required had the contingency fund remained at 15%. The Deputy Chief Executive and Section 151 Officer confirmed the 5.2% contingency figure had been determined by Gleeds rather than Officers.

-       Another Member speculated that the significant time left on the project may manifest into further requests for additional funds. The Member expressed their concern about this happening and this sentiment was echoed by other Members.

-       The Vice-Chairman expressed their view the project was lacking political leadership from the Cabinet Member for Property and Public Engagement. The Cabinet Member recognised the view but expressed their belief that political project leadership was not in the best interests of the public. They stated that their leadership was embodied by the direction the project had taken by having open dialogue with the Committee and choosing to seek the one-off additional payment rather than ‘scrimp & save’ which had historically been detrimental.

-       One of the ward Councillors expressed their support for the project citing the existing site was not fit for purpose. The Member expressed disappointment at the extra costs requested but noted the transparency of the project.

Cllr Cunnington entered the Chamber.

-       The Chairman requested an update at the following Committee meeting by a representative from Lindum. – ACTION. The Deputy Chief Executive and Section 151 Officer replied in their capacity as the Project Officer stating their understanding that Lundum would engage at a future meeting and could provide drone footage of the site.

-       It was noted the final decision would be made by Cabinet.

The Committee noted the report.