Decision details

RESOLVED:

KEY DECISION

That the Executive:

a)    Noted the content of the report which sets out  the current budget challenges for the capital programme, what has changed since March 2022, and the comparison with other projects of this nature.

b)    Approved the uplift to the capital budget of £412,000 to cover the worst-case scenarios and risks,  in order to ensure there is sufficient budget to successfully complete the build in a timely fashion

c)    Delegated authority to the Executive Member for Leisure, Sport, Culture and Tourism, in conjunction with the Executive Director for Adults, Communities and Wellbeing, to take the actions necessary to ensure successful completion of the capital project.

Reasons for Recommendations: Approval of the recommendations will allow the Council to ensure the capital project is successfully delivered in a timely manner and do so without exceeding approved budget whist achieving best value.

Alternative Options Considered: The capital programme cannot be completed without a further budget uplift. The alternative would be to act within current budget which would mean the site would not be fully complete and may be unable to open to the public until it is complete. This will have huge reputational impact and will also mean that the Council will not be able to deliver some of the outcomes set by the external funders, which might expose the Council to the risk of not being able to draw down final claims or having to pay some of the funding back.

Furthermore, identified risks would not be mitigated and instructions to the contractors for variations would be hampered, as Officers have to instruct variations to mitigate risks within the approved budget. Officers cannot instruct if the budget approval is not in place. This would mean that the project would be further delayed, potentially subjecting the Council to more Extension of Time claims which would be in excess of the amount requested in this report for the budget uplift.