Contact : Bob Durant Ext: 7039

1. Summary

1.1 The following decision is sought:

That approval is given to award the contract for Lepe Foreshore repairs to the lowest tenderer, who is more than 10% greater than the tender estimate. The works are considered high priority as some of the existing sea defences are already undermined.

2. Cost Analysis

The existing allocation for Lepe leaves a shortfall of £115,000, compared to the lowest tender. The full Quantity Surveyors tender report is appended to this report.

The higher price is considered to be due to two main reasons:

a. The estimate was prepared anticipating a 12 week contract period and summer months for construction.

The start date has been put back to the last possible date to allow for the anticipated issue of a licence from DEFRA. This was applied for in March and issued 21 August. A DEFRA licence takes into account environmental issues, which includes not disturbing overwintering migratory birds and it is a condition of the licence that no works below High Water are carried out between November and March.

The time taken to obtain the licence has dictated a less favourable time of year and has shortened the contract period to 9 weeks. This was not anticipated in the estimate given in the Project Appraisal dated 16 July 2002.

The increased costs arise from a reduced contract period and time of year both increasing the contractors risk due to adverse weather.

b. Minor design changes have increased the construction costs by approximately £10k above the original estimate. These include the use of stainless steel reinforcement and increased footway works.

In summary, the tender is considered to reflect market rates.

3. Options

There are two options for delivering the project:

a. The contract could be awarded to the lowest tenderer and the additional costs met by the anticipated under-spend on Ruckstalls Flyover.

b. The works could be deferred until after March 2003 and re-tendered. Additional temporary repairs may be required during the winter and there is a high risk of the highway foundation collapsing. Any saving in tender price would be offset by any maintenance/rebuilding costs incurred during the winter.

At present £150,000 is allowed in the Bridge Capital Programme, for the strengthening of Ruckstalls Flyover, a three span bridge over the A30, Ringway South, Basingstoke. This strengthening was to start in autumn 2002, but is currently under review by Atkins, so as to reduce the prohibitive traffic management costs incurred by their original proposals.

Because of this delay and to avoid conflict with an adjacent highway improvement starting in January 2003, the Flyover strengthening has been postponed until after March 2003.

Funds released by this delay were provisionally earmarked for replacements of sub-standard, pre-1994 aluminium parapets, work that can be instigated relatively quickly because of short lead-in times for design and consultation.

However, Lepe repairs are much more urgent, to minimise accelerating deterioration over the coming winter, with consequent increased costs and disruption.

It is therefore proposed to re-allocate part of the £150,000 released by the delay of Ruckstalls Flyover strengthening to the Lepe Foreshore repairs and the parapet replacement programme re-scheduled.

4. Conflicts of Interest Declared by the Decision Maker or a Member or Officer consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the matter being dealt with if urgent

To construct the repairs before the winter embargo, a re-tender must be avoided. The submitted tenders remain open for 60 days from 20 August 2002. Works below high water need to be substantially complete by the end of October, in accordance with the DEFRA licence.

Approved by: Date:

Councillor K B Estlin

7345/RD