Archived decisions

Hampshire County Council

Buildings, Land and Procurement Panel

14 July 2008

Major Projects Update

· Ashburton Court

· Children's Centres

· Merton Rise

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

1.

Introductory Summary

1.1

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

The report highlights key issues with the following schemes:

· Ashburton Court

· Children's Centres

· Merton Rise

1.2

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

2.

Recommendations:

That the Panel notes the progress on each of the major projects.

3.

Ashburton Court

3.1

The previous report to the Panel on the 2 April 2008 summarised progress on the main construction project and the discussions with the Contractor regarding the second phase works and noted that approximately 1,000 staff had been moved to support the first phase completion together with the latest financial position.

3.2

This update provides:

_ Progress with the construction works and the programme review

_ The client management activities for the re-occupation of phase 2, and the benefits and implications to the corporate change management workstreams and strategic property review

_ An overview of the financial plan and property efficiencies anticipated as part of the funding strategy

3.3

The Construction Project

3.3.1

Following the handover of East Block (Phase 1) on 18 January 2008, good progress continues with both North and West Blocks, and the work is on schedule in accordance with the contractor's programme. The second phase logistics will be reviewed regularly, and represent both a constraint and key risk to manage until completion.

3.3.2

North Block steelwork and the concrete roof are now complete with the elevation steelwork erected and the cladding installation well advanced. The existing cladding panels to West Block have been removed and the roof demolished. Further works will also be undertaken to the perimeter of the site advance from Tower Street around to Tower Road.

3.3.3

The construction completion programme identifies the next phase (North, West and Podium/Auditorium new construction) providing for Hampshire County Council occupation at the beginning of June 2009. The building activity to the North Block is programmed to be completed at the beginning of April, with the West Block and the Podium towards the end of May. As with East Block, the strategy is to provide for a fully integrated building with furniture, fittings and equipment (FFE) and IT, all commissioned before practical completion. The installation of FFE, IT and the final commissioning is the key aspect of a successful handover, and the lessons from East Block are being incorporated.

3.4

Re-occupation Strategy

3.4.1

The re-occupation and associated asset management strategy for Phase 2 is covered in detail in a report elsewhere on the Agenda. This includes a list of properties available for disposal.

3.4.2

The utilisation study of East Block now that Children's Services are in occupation has identified the opportunity (as was expected) to increase the number of staff, and this is being developed with Children's Services for implementation during the second phase timescale of the project.

3.4.3

The Client Management activities have been provisionally programmed to identify the space planning and FFE workstreams. The key actions have been scheduled for the three occupying departments, and templates created to support the individual department's project teams and to facilitate where possible joint workshops.

Key stages identified will be:

· Initial data gathering

· Storage audits and utilisation studies

· Preparation and sign off of outline proposals

· Preparation and sign off of detailed programmes

· DMT presentations

· Develop furniture packages/orders

· Removal and installation programmes

3.4.4

A strategic fit-out and re-occupation strategy programme has been prepared for discussion and detailed agreement.

Key dates for occupation:

(Start Dates)

(End Dates)

Preparation

Move

Occupation

IT Services

25.05.09

06.07.09

17.07.09

Adult Services

01.6.09

13.07.09

31.07.09

Environment

15.06.09

27.07.09

14.08.09

3.5

Financial and Management Plan

3.5.1

The monthly financial report for the main construction project from the consultant quantity surveyor is forecasting the contract to be on budget with approximately 50% of the £2m contingency projected to be spent.

3.5.2

3.5.3

The pressures on the budget arising from the decanting programme and project arrangements to accommodate the overall development works are being kept closely under review to respect the approved project allowance.

4.

Children's Centre Strategy

4.1

Progress on the thirty eight capital works schemes to be procured can be summarised as follows:

· seven complete

· eleven on site

· sixteen progressing designs to tender / negotiating contracts

· two preparing for planning / DCSF submissions

· one in feasibility

· one no longer requiring capital works

4.2

The first four modular projects have completed on site and are expected to be operational very shortly following their fit-out. Another four modular projects are on site, with factory fabrication for a further eight projects underway off-site. There have been some problems experienced with the modular supplier and this has delayed the completion of the first projects. The framework partner main contractor is doing all they can to improve the performance and adherence to schedule of their modular subcontractor. The delays with the first projects has in turn delayed the programme for the later modular projects.

4.3

Work is also underway for seven traditional-built projects which are progressing well on site, with a further three expected to commence shortly. Negotiations of the legal agreements required for projects in 3^rd party owned buildings are expected to be concluded in the near future.

4.4

4.5

Tenders are being assessed for the two mobile Children's Centres service vehicles that are being procured through Hampshire Transport Management. The appointment of a contractor is expected shortly.

Progress of the Strategy as a whole has been affected by the difficulties with the modular supplier, with the last modular project in the sequence now expected to complete in January 2009. Phasing of two of the more complex projects involving alterations and refurbishment in occupied premises has been developed, with completion of these now scheduled for February/March 2009. All the projects are expected to complete within the DCSF funding deadline of end March 2009.

4.6

The Children's Centres programme remains financially on target.

5.

Merton Rise, Basingstoke

5.1

Following the opening of Everest Community College in Autumn 2007, the scheme has been reviewed very positively in the Property and Building press with commentary on the high quality design of the new building. Recently the scheme secured a regional Royal Institute of Chartered Surveyors (RICS) Award for Best Community Building.

5.2

Despite the recent weather, continued, good progress is being made on the construction of the last phase of the advance servicing work which will support the sale of Phases 3-5 on the site. The first of the strategic open spaces constructed by the County Council (and located within Phase 1) has now been opened for public use. The second area of open space is now under construction, and a project appraisal for the remaining largest areas within Phase 3 is to be considered at the Executive Member for Policy and Resources meeting on 23 July 2008.

5.3

In the softening property market, there is increasing concern over the County Council's ability to secure land sales on this and other sites. Evidence of an overall market slow-down is reflected by the reduction in the sales of new homes. Key housebuilders have stopped building or acquiring sites, and are laying off large numbers of staff. At present, every effort is being made to protect the opportunity to secure land sales on Merton Rise at a similar level to those approved at the April 2008 Panel meeting, and alternative bases of disposal in terms of phased receipts and other mechanisms are being considered.

5.4

The selected purchasers for Phase 3 are still making good progress - this reflects that neither party are public companies and may therefore be able to "ride the storm" more easily. However there is great concern as to whether Phase 2 (which includes the Neighbourhood Centre) will transact at all and as a consequence, contingency measures are in hand to either protect the "life" of the existing outline planning consent and/or re-plan by securing a new permission on the relevant parts of the Merton Rise site. If it becomes necessary to remarket Phase 2 this would see a deferral of the receipt to 2010/11 and beyond.

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: