Contact: Andrew Smith Ext: 7826 email: [email protected]

Contact: John Duggan Ext: 7873 email: [email protected]

1 Summary

1.1 This report

· Notes progress on the main construction project and the risks to completing the first phase to programme

· Summarises the plans and actions to achieve the critical Christmas/New Year period, up to the end of January 2008 and the works to enable this

· Summarises the financial plan to manage the project within the approved budget

1.2 Regular updates continue to be given to Elected Members. Cabinet received two reports on 25 June 2007 - one to note progress and approve opportunities for the occupation of the building and the decanting/move management process; and secondly a confidential report to approve the inclusion of the new data centre.

1.3 An update to Buildings Land and Procurement Panel on 2 October summarised general progress on the main construction project and with the decanting arrangements, noting the key risks and opportunities in managing the financial position.

1.4 Currently approximately 350 staff have already been moved to Capital House, Hampshire House, and from North Block to West to facilitate the early release of North Block to the contractor. With the first phase of the main construction works, the completion of East Block programmed for the end of the year, the next tranche of moves has been planned and instructed.

1.5 Progress has been very good and the contractor's performance has been high. Given the nature of the work, the timescale and decanting arrangements, very positive progress has been made.

Recommendations

That Cabinet:

1. Note progress on the major construction project, and endorse the plans and sequence of moves for the next stage of decanting.

2. Note the current financial position.

2 The Construction Project

2.1 East Block

2.1.1 Work is well advanced on the completion of the first phase of the works to enable the re-occupation of East Block. Despite the initial delay due to the asbestos, works continue to East Block and the time is being made up.

2.1.2 The key risks to the East Block programme remain the completion of all the trades to enable the commencement of the commissioning period.

2.1.3 The position is being closely monitored and a detailed programme for all interrelated works has been prepared. Should the completion date for East Block of 21 December not be achieved, then the delay is likely to be four weeks as the two week Christmas period will need to be factored in as the construction industry has a statutory holiday period at that time.

In the event of a delay, which will mean West Block will commence later, it is still targeted to make up this period through opportunities on the remainder of the programme.

3 Decanting/Move Management

3.1 Work is now well in hand to organise the necessary decanting and moves of some 650 staff to fit with the programme for completion of East Block. The sequence of activity is summarised below:

· The move of 35 Environment staff to Sheridan House mid November

· The move of 90 Environment staff to the ground floor of Capital House mid December

· Practical completion of East Block is programmed for the 21 December

· The move of Children's Services from Castle Avenue (approximately 270) to East Block after Christmas, to be fully operational by the first week of January

· Implement minor works to Castle Avenue two weeks after Christmas, including furniture and equipment and IT reorganisation (in preparation for Environment move)

· The move of approximately 250 Environment staff to Castle Avenue, to be operational by 11 January

· Clear and empty West Block for possession to the contractor by 21 January (opportunity for earlier survey and investigation work)

3.2 Children's Services and Environment will be organising and managing flexible working arrangements with their staff affected over this decanting period.

3.3 Minor building adaptations are required to the premises identified for the next phase of decanting ie, at Capital House, Sheridan House and Castle Avenue. The previous works at Capital House and Hampshire House were undertaken by Nolan Davis, considered by the Buildings, Land and Procurement Panel and approved by the Executive Member for Policy & Resources on 20 March and 5 April 2007 respectively. Nolan Davis have been appointed to complete this additional work to Capital House, Sheridan House and Castle Avenue at a cost of £265,000. £186,500 is to be funded from the Ashburton Court project and £79,000 from the P&R office accommodation budget. The building works are being undertaken with Nolan Davis on the previous terms and conditions and in the light of their experience, performance and the critical timing. The arrangements will be reported to the Buildings, Land and Procurement Panel at its meeting on 15 January 2008.

3.4 The major implication of the interaction between completing East Block and the decanting is the impact on staff.

4 Car Parking

4.1 The car parking arrangements will require further adjustment following the complete closure of top deck before Christmas. It is proposed that more staff will be moved to Bar End, but there will be dedicated provision for Elected Members at Mottisfont Court and Castle Avenue. The Carfax site will also be made available on full Council meeting days and at other times of peak Member demand. Arrangements are in hand to advise members of the revised car parking strategy.

5 Space Planning and Interior Design

5.1 The Director of Property Business and Regulatory Services has worked closely with teams from both Children's Services and Environment to implement the occupation and decanting arrangements agreed in April 2007.

5.2 Since that time, excellent progress has been made with the vacation of Ashburton Court North achieved on programme. Intensive collaborative working between Children's Services and the Project Team (and in particular the interior designers) to develop and sign-off detailed furniture layouts has been successful in achieving the demanding programme for preparation to occupy East Block.

5.3 Activities are now focused on operational and change management arrangements to ensure the complex moves at the end of 2007 and beginning of 2008 go smoothly and occupying staff are informed and trained in the new ways of working needed to maximise the benefits of the new building.

6 Financial Plan

6.1 The approved budget of £40,166,000 approved by Cabinet on 24 July 2006 contained three principal elements - the construction works, the decanting, and the related project costs and professional fees. Further funding has been approved where it is matched by capital receipts and the relinquishment of leases.

6.2 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 spent. The mitigation programme to save the cost of delays is forecast to be an additional cost in the order of £100,000-£150,000, although this is a provisional assessment.

6.3 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. A number of decisions will be reviewed in the light of financial pressure, and left until as late as possible eg, the replacement of the basement sprinkler system.

6.4 Following consideration by the Buildings, Land and Procurement Panel on 2 October 2007, the Executive Member for Policy and Resources approved the provision of additional accommodation to the top floor of North Block to provide approximately 40 additional workstations, with the work funded through capitalised savings. A strategy for the funding of furniture and IT proposals is also being developed.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1 Published works

2 Documents which disclose exempt or confidential information as defined in the Act

None.

CAB1107A