Hampshire County Council

Buildings, Land and Procurement Panel Item

2 April 2008

Major Projects Update

· Ashburton Court

· Children's Centres

· Carfax Site, Winchester

· Merton Rise

· Everest Community College

Report of the Acting Director of Property, Business and Regulatory Services

1.0

Introduction

1.1

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

1.2

The report highlights key issues with the following schemes:

· Ashburton Court

· Children's Centre

· Merton Rise

· Carfax Site, Winchester

· Everest Community College

1.3

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

2.0

Recommendation:

That the Buildings, Land and Procurement Panel notes the progress

on all the major projects.

3.0

Ashburton Court

3.1

The previous report to the Panel on 15 January 2008 summarised progress to the main construction project, particularly completion of the first phase (East Block); gave an update on decanting/move management plans and actions; and provided a summary of the financial position.

3.2

This update provides:

· Confirmation of completion of East Block and progress to the construction works

· A summary of the successful moves undertaken

· An overview of progress in relation to the financial and construction management plan.

3.3.1.

The construction project

3.3.2.

A key milestone was reached with the handover of East Block (Phase 1) on Friday 18 January 2008. The Children's Services Department moved in and were fully operational on Tuesday 22 January 2008.

3.3.3.

The completion of the lower works to Tower Street and the removal of the hoarding then commenced, followed by the hoarding relocation to Tower Road and Sussex Street. Demolition works to North Block are complete, and preparations are being made for the new envelope support and internal structural work.

3.3.4.

Works to West Block commenced on 13 February 2008 with the asbestos surveys undertaken and the internal stripping out underway.

3.3.5.

A review of the programme was undertaken with the contractor. Substantial completion of North, West and the new Podium accommodation is programmed for late April 2009, with the decommissioning and migration of the Data Centre and works to be completed around the loading bay and link bridge scheduled for the Spring/Summer 2009.

3.3.6.

Discussions continue with the design team and contractor to assess the practicalities and implications of achieving earlier substantial completion. Although time was made up following the delay caused by the removal of the limpet asbestos to the East Block, adjustments to the project arrangements with key supply chains on what can be brought forward alongside the management of risk needs to be considered.

3.4

Decanting/Move Management

3.4.1.

The work in support of the first phase completion and to enable the occupation of East Block by the Children's Services Department is complete.

3.4.2.

Following the move of the Children's Services Department, 250 Environment Department staff were relocated to Castle Avenue. Approximately 1,000 staff have now been moved to the agreed timetable.

3.4.3.

The clearing and emptying of West Block took two weeks, and this period combined with the additional time necessary for the fit-out and occupation of East Block has impacted on the contractor's programme.

3.5

Financial and Management Plan

3.5.1.

The financial position reported in the last update has not significantly changed. The monthly financial report for the main construction project is still forecasting the contract to be on budget with approximately £850,000 of the £2m contingency spent.

3.5.2

The sum set aside within the financial report to cover the mitigation programme in response to the asbestos delays reported will be reviewed together with an allowance in order to achieve an earlier completion date to the contract date and contractor's entitlement.

3.5.3

It is considered a more cost effective approach to reward and incentivise the contractor to complete early, than set aside a sum of money for loss and expense associated with a later completion date.

3.5.4.

The pressures on the decanting costs reported previously and the review of the project arrangements and consequential resources are being kept under close review to respect the approved budget figure for the project.

3.5.5.

The implications of the occupation of North and West Blocks will also impact on this.

4.0

Children's Centre Strategy

4.1

Progress on the 38 capital works schemes to be procured is as follows:

· 1 complete

· 6 on site

· 19 progressing designs to tender / negotiating contracts

· 5 awaiting planning permissions / Dept. Children, Schools & Families (DCSF) approvals

· 6 preparing for planning / (DCSF) submissions

· 1 awaiting sign-off / agreement to funding grants to 3^rd parties

4.2

Off-site fabrication has commenced on the first four of the 16 modular projects, in advance of their delivery to site and installation from mid-March onwards. A sequence of fabrication and installation is programmed from March to September, with one project completing every 2 weeks. The first modular-built Centre at Neville Lovett school site, Fareham is expected to be operational by the end of May this year.

4.3

Detailed negotiations continue on the arrangements for funding grants to 3^rd parties for 4 of the projects. Negotiations are also underway to secure the licence and lease arrangements to enable 5 projects to take place in non-Hampshire County Council buildings.

4.4

The proposals for 2 mobile Children's Centres service vehicles have been progressed and are to be tendered shortly through Hampshire Transport Management.

4.5

Progress of the strategy as a whole is on programme, with the majority of projects scheduled for completion between March and September 2008. 2-3 of the more complex projects involving phased internal alterations are now scheduled for completion in October 2008.

4.6

The Children's Centres programme remains financially on target.

5.0

Carfax site, Winchester

5.1

The development potential of this key site adjacent to Winchester Railway Station is being evaluated through a feasibility study being carried out by consultants MACE and Constructing Futures to establish the optimum form of development.

5.2

The consultants will also advise on opportunities to employ modern methods of construction on the Carfax site and the provision of on-site training for young people to enhance the opportunities provided by Property, Business and Regulatory Services.

6.0

Merton Rise

6.1

Following the opening of the new Everest Community College in 2007, the school building/campus has been favourably reviewed in the February edition of the Royal Institute of British Architects (RIBA) Journal and also short-listed for a Civic Trust design award. More recently, the school has undergone a further Ofsted Inspection and the Notice to Improve has been withdrawn. The new head-teachers' leadership was rated as "outstanding" and for the first time in 15 years, a full compliment of Year 7 pupils (150) are looking to join the school in September 2008.

6.2

On the wider Merton Rise site, development of the Phase 1 Housing has continued apace, with over half of the units now completed and occupied. The County Council procured local park within Phase 1 has also been completed. The final contract for the advance infrastructure (highways and services) has also recently commenced (as part of a wider highway improvement to the A340 corridor). This will see the construction of the Spine Road between Sherborne Road and the A340 and provide full servicing arrangements for Phase 3-5 and also the Employment Land. These works are programmed to be completed in December 2008 to support the Phase 3 sale programme.

6.3

Following the completion of the Phase 2 marketing exercise (which includes the mixed-use Neighbourhood Centre) and the selection of preferred developers for the sub-parcels, work to develop their designs against a changing commercial and residential market backdrop continues positively. It is anticipated that a good covenant for the proposed supermarket will be secured, and although the funding and requirement for a GP facility has been withdrawn by the PCT, a range of alternative community and other mixed-uses have been identified to replace (in part) some of the floor space lost by these changes.

6.4

The creation of a successful Neighbourhood Centre will be crucial to ensuring the overall success of Merton Rise. The Neighbourhood Centre, together with the new school and other community facilities, will provide the central focus for this flagship development and should aspire to be vibrant for both the new residents of Merton Rise and the existing Popley neighbourhood. Negotiations with the selected developers for the Phase 2 parcels are on-going but at a sensitive stage with some revisions to value anticipated due to the prevailing market and development mix changes.

6.5

Marketing of Phase 3 took place during Autumn 2008 and is the subject of a separate presentation on this agenda (Item 15 refers). Preparation is now on-going to bring the last residential phases of development to the market in Spring 2008 to ensure that the "life" of the existing 5 year outline permission is protected and a rescission is avoided. The latter would require a re-negotiation of the existing permission. Although potentially higher densities (and additional value) might be secured, this must be balanced with higher levels of affordable housing (40% versus 20%) and new (higher) financial contributions towards education and highways being sought. A rescission of the existing planning consent is also likely to result in significant delays in securing the receipts from the remaining phases of Merton Rise. In addition, this would put at risk the County Council's place-shaping objectives for Merton Rise which have been based on the design-led selection of development proposals against carefully balanced development briefs and design codes.

6.6

The programme for the remaining phases of development have therefore been identified to avoid rescission and also provide a degree of contingency in relation to the 5 year anniversary date. The outcome of the Phase 4/5 marketing is due to be reported to the Panel in October 2008 to meet these timescales. On a similar basis, the outcome of the design offer selection process relating to the current "expressions of interest" exercise being carried out on the Employment Land will be reported to the same meeting.

7

Everest Community College

7.1

Everest Community College (part of the County Council's Merton Rise development) received a Commendation from the Civic Trust at the Award ceremony on 12 March 2008 in Newcastle.

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: