Issue - meetings

This report provides an update on the current cost and budget position of the Centre of Excellence and asks the Executive Member to approve an increase to the budget and to delegate authority to the Director to appoint a contractor for the works.

Resolved:  (i)      That an increase of £250,000 to the budget, to be funded by a virement from uncommitted resources within the Education Basic Need capital budget, be approved.

Reason:     To ensure that there is adequate contingency and reduce the risk of costs exceeding the agreed budget in the construction phase.

(ii)      That authority to appoint a Contractor to carry out the works be delegated to the Director of Children, Education and Communities, subject to the project being deliverable within the available budget.

Reason:     In order to align the programme with that of the Lincoln Court development and enable a shared contractor to deliver both projects concurrently, thus achieving cost efficiencies.

The Executive Member considered a report which provided an update on the current cost and budget position of the Centre of Excellence for Disabled Children and their families in York and sought delegated authority to increase the budget and appoint a contractor for the works.

The budget for the Centre, as set by Executive in January 2018 and revised in April 2018, was £4.274m, with contingency set at 3%.  Early contractor involvement via a Pre Contractor Service Agreement had enabled a preferred contractor to develop a detailed cost submission, which initially had come in over budget for the reasons outlined in the report.  Following a value engineering exercise, costs were now within budget; however, further funds of £250k were required to ensure an adequate client contingency of 7% throughout the construction phase.  Current costs against the agreed budget were summarised in Annex A to the report and the revised position was set out in Annex B.

In response to questions from the Executive Member, and matters raised under Public Participation, officers at the meeting confirmed that:

·        The value engineering process was not cost-driven and had included simplifying aspects of the design and rationalising space in a manner that did not compromise the provision or outcomes for children and young people.

·        The proposal to increase contingency from 3% to 7% was based on expert advice, given the complexity of the project.

·        Parents, carers and front line staff had been involved throughout the process, as part of the design team.

·        The Project Board included partner/stakeholder representation, and partner agencies received regular progress updates.

·        In terms of user numbers, the plans took account of the increasing Special Educational Needs (SEN) cohort; the Centre would cater for a wide spectrum of need and have capacity to ‘trade’ unused beds with other authorities.

The Executive Member asked to be kept updated on future progress of the project, which would provide services for the most vulnerable group of people in York and must therefore be monitored closely.  He had been advised that the Executive had already delegated authority to the Director to appoint a contractor but was happy to make that decision as requested.

Resolved:  (i)      That an increase of £250,000 to the budget, to be funded by a virement from uncommitted resources within the Education Basic Need capital budget, be approved.

Reason:     To ensure that there is adequate contingency and reduce the risk of costs exceeding the agreed budget in the construction phase.

(ii)      That authority to appoint a Contractor to carry out the works be delegated to the Director of Children, Education and Communities, subject to the project being deliverable within the available budget.

Reason:     In order to align the programme with that of the Lincoln Court development and enable a shared contractor to deliver both projects concurrently, thus achieving cost efficiencies.