Hampshire County Council

Buildings, Land and Procurement Panel Item 8

2 October 2007

Major Projects Update

· Ashburton Court

· Merton Rise

· Childrens' Centre

· Winchester Discovery Centre

· Everest Community College

Report by the Director of Property Business and Regulatory Services

1.

Introduction

1.1

This report provides a regular update on the major projects currently being programmed.

The report highlights key issues with the following schemes:-

· Ashburton Court

· Merton Rise

· Children's Centre

· Winchester Discovery Centre

· Everest Community College

1.2

The completion of these major projects will enhance the quality of place and maximise the wellbeing of users of the respective buildings.

Recommendations:

1. That the Buildings, Land and Procurement Panel note the good progress on all the major projects including the adjustment to the North Block of Ashburton Court which will increase the utilisation of the proposed building.

2. That the Buildings, Land and Procurement Panel advise the Executive Member for Policy and Resources that approval be given to the Director of Property, Business and Regulatory Services reviewing the liabilities associated with the outturn costs for the sprinkler installation at the Winchester Discover Centre.

2.

Ashburton Court

2.1.

The previous update to the Panel on 26 June set out the planned efficiencies and staff occupancy levels, confirmed the final occupation strategy, outlined the design work to establish a carbon friendly building, and gave an update on the project progress - both the decanting arrangements and the main construction project.

2.2.

This update summarises:

· General progress with the construction project, identifying the key issues to secure the first phase completion date for East Block and the programme overall

· Reports on the decanting/move management plans and actions

· The management of the overall project and the key risks and opportunities

2.3.

The construction project

2.3.1.

Works to East Block generally meet the mitigation programme, although some activities are showing up to two weeks delay. The raised flooring is well advanced on the first floors, the brickwork to Tower Street elevation is up to first floor levels, and the installation of the window walling is nearing completion on the West elevation. The mechanical and electrical installations are progressing well and internal plastering and advance decoration has commenced.

2.3.2.

The asbestos survey work has commenced in North Block and preparations are beginning on the new electrical switch room at the north end of West Block.

2.4

Key risks

2.4.1.

The first of two power shutdowns is scheduled for the weekend of 22/23 September. The shutdown is essential to allow the installation of new power circuits and distribution boards.

2.4.2.

The commissioning period for East Block has been programmed to meet the practical completion dates and it will be a critical period to integrate both the FF&E installation and IT. Out of hours working will be required.

2.4.3.

The mitigation programme indicates the practical completion of East Block on 21 December. Since the delay due to the limpet asbestos, there has been a general catching up by the contractor, however, as noted above some activities are around 2 weeks behind.

2.4.4.

There are two principal issues as a consequence of the above:

1. There will be increased displacement to basement parking due to the services infrastructure work. This, along with the loss of parking on the top deck and the impact on the Carfax site will require a review of the proposed allocations to departments.

2. The Christmas period following practical completion and the date for the possession of West Block are critical. Work is currently ongoing to establish a detailed programme for the final delivery of furniture, the move preparations required, and re-programming the date for possession for West Block (originally 7 January) due to the double move and the required works to Castle Avenue. It is now proposed to give the contractor possession of West Block on 21 January. It is anticipated that this 2 week delay will be made up through opportunities on the remainder of the programme.

2.4.5

The opportunity has arisen to redesign elements of North Block which will allow another 30 to 40 workstations to be accommodated, enabling under flexible working an even greater number of staff to use the building. The cost is £300,000 and will be set against the contingency on the basis that on completion further accommodation can either be disposed of or leases terminated.

2.5

Decanting/Move Management

2.5.1.

Over 350 staff were moved to Hampshire House (formerly known as Nuance Global), Capital House, Sheridan House and from North to West Block by the end of July. The Christmas period is now being planned and programmed in detail.

2.5.2.

The relocation of the Urban Traffic Control facility will be to Monument House, although the extension of the lease is still being negotiated. Arrangements for the works to proceed have been made and an order placed with BT as the work must be completed by the end of November.

2.6

Castle Avenue

2.6.1.

Plans for the occupation of Castle Avenue by the Environment Department are well advanced and detailed plans are due to be signed off at the end of September. There will be limited improvement works which will commence once Children's Services have relocated.

2.7

Capital House

2.7.1.

Around 80 staff from Environment will relocate to Capital House at Christmas. It is intended to use the same design and construction team for the alteration works, which are planned to start on 4 November.

2.8

Sheridan House

2.8.1.

The lease for the second floor is due for completion this month with the space planning to be signed off at the end of September.

2.9

Financial and Management Plan

2.9.1

The current financial report for the main construction project is forecasting the contract to be on budget, with approximately £0.5m of the £2m contingency sum spent, but this includes projections forward to North and West Blocks.

2.9.2.

Progress continues with the value engineering and opportunity targets and there are a number of items still to resolve on the mechanical and electrical installations.

2.9.3.

The reconciliation of the decanting costs is being finalised to reflect the additional moves and associated works and fees.

2.9.4.

The furniture and equipment has been subject to an OJEU compliant tender process, and the funding of the new furniture for East Block is included within the contract together with an allowance for North and West. Two options, and their affordability are being considered, to provide for all new or re-use some element of the existing office furniture. With the latter, there will however be implications to the use of the affected areas and other considerations to resolve.

2.9.5

Carfax site

The Cabinet recently approved the redevelopment of the Carfax site as it is no longer required for County Council use given the refurbishment of Ashburton Court. It is proposed to appoint consultants to undertake a feasibility study of the options for the site and that authority be given to the Director of Property, Business and Regulatory Services to make the necessary arrangements in conjunction with Winchester City Council who also have a significant interest in the site.

3.

Merton Rise

3.1

Since the update in March that reported on the outcome of the marketing exercise on the Phase 2/Neighbourhood Centre Phase, considerable progress has been made on the project.

3.2

Both sub-phases on Phase 1 have now been sold and both developers have made good progress with sale of units off-plan and first occupations anticipated this Autumn. The associated infrastructure provision, including completion of the off-site sewerage upgrades and statutory approvals for the related road closures and diversions have also been secured to support the opening of the new school (September 2007) and the first housing units. The Local Park provision within Phase 1 (approved by BLAPP October 2006) is also nearing completion and this together with the new school will provide early community and open space facilities for the existing residents of Popley and the new residents of Merton Rise.

3.3

Good progress has been made with the selected developers of the Phase 2 parcels and reserved matters applications are still programmed for Autumn 07. However it should be noted that the market perspective on the size of supermarket has now altered and we have received confirmation from the PCT that the proposed doctor's surgery requirement is no longer needed. This means that there is a need to manage these changes in the context of the existing outline permission and to negotiate an appropriate way forward with the local planning authority before reserved matters applications can be progressed.

3.4

Following the grant of detailed planning consent for the remaining part of the primary infrastructure (which will service Phase 3-5), a joint procurement of these works with the A340/A339 Ringway scheme has been tendered and the wider scheme is due to commence in November for a 14-16 month period. The marketing for Phase 3 (approximately 240 dwellings) and an expressions of interest exercise on an area of employment land are due to commence October. At the same time a small parcel within Phase 2 (17 dwellings) is also being marketed for a potential level 5 Sustainable Code for Homes (approaching zero carbon) as a pilot project. The outcome of this marketing exercise will be reported to a future meeting and subject to satisfactory progress on the provision of the primary infrastructure, the proceeds of sale from Phase 3 are programme for the 2008/9 financial year.

4.

Children's Centre Strategy

4.1

Design proposals for the various Children's Centres have progressed since the previous report to this Panel in June 2007, with the majority of the feasibility studies now signed-off by the respective host organisations. With the service linking of certain Centres, the number of Children's Centres capital works schemes to be procured has been consolidated from 38 to 35. 30 Centres remain to be procured directly by Hampshire County Council, with 5 scheduled for procurement via a funding grant to third parties.

4.2

Of the 30 Children's Centre projects to be procured by the Council, 23 are now included in the separate Procurement Report to this Panel, confirming their location, contract value and proposed contractor. Site identification and feasibility studies for the remaining 7 Centres are expected to be concluded shortly and will be reported to a subsequent Panel meeting.

4.3

Submission of the projects to the Department of Children, Schools and Families (DCSF) for funding approval is ongoing, with the first 4 projects now submitted and 2 approved. Planning applications are also underway.

4.4

13 of the projects are planned to be built using off-site modular construction. Tenders have now been received for the supply of the modules from specialist sub-contractors and a pre-construction order will be placed shortly with Brazier Construction, the framework contractor appointed for the modular projects, to develop the detailed designs for the various modular Centres with the selected specialist. Orders for fabrication will be placed for each Centre in turn, subject to approval of the Procurement Report by the Executive Member for Policy and Resources, DCSF funding approval and planning approval.

4.5

Progress is on programme, with the projects scheduled for completion between March and September 2008. Negotiations are underway for the property transactions and legal agreements required for works by Hampshire County Council within third party-owned premises and leasing of the accommodation thereafter.

4.6

The Children's Centres programme remains financially on target.

5.

Winchester Discovery Centre

5.1

The project has been handed over by the contractor and the Director of Recreation and Heritage is now organising the fit out of the building. Progress has been good and the Discovery Centre is on programme to be opened later this year. The new Discovery Centre will represent one of the most significant contributions to the infrastructure of the city for a number of years.

5.2

At the last meeting of the Panel it was indicated that it would be necessary to provide an external tank for the sprinkler installation. This work will be charged to the current year's fire precautions budget. It is anticipated that a significant proportion of the cost will in turn be offset depending on the technical review of liabilities for the additional costs.

6.

Everest Community College

6.1

The new Everest Community College was successfully completed in July, on program. The school move from the existing premises also took place in July and the information and communications technology fit out took place over the summer holiday period. Opening of the college campus took place, as planned, in September with the staff and years 7 and 11 commencing during week commencing 3 September and years 8,9 and 10 commencing 10 September.

6.2

The official opening by the Leader of the Council will take place on November 1^st. Arrangements for this event are being finalised with the school.

6.3

The response to the new building has been very positive, including the local community and press. Already a number of schools from other authorities in the South East have visited and feedback has been excellent. The quality of the completed construction is to a high standard and the project remains financially on target.

6.4

To coincide with the opening of the school, and following approval by the Executive Member for Property and Resources in June 2007, the unconditional sale of the remaining (and majority part) of the existing John Hunt of Everest School site has also been completed. The value of the site and other partnership funding from Basingstoke and Deane Borough Council and David Wilson Homes (third party developed) has covered the cost of this substantial project.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

X

Maximising well-being

X

Enhancing our quality of place

X

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because: