Agenda item

(Asset Management & Economic Development Portfolio Holder) To consider the attached report (C-061-2015/16).

(1)        That the tender of £2,070,029 from Walker Construction (UK) Ltd to carry out the Section 278 road works in Chigwell Lane relating to Epping Forest Shopping Park be agreed, subject to revisions required by Essex County Highways regarding Thames Water required works;

(2)        That the balance of the current capital allocation of £2,250,000 i.e. £179,970 be retained as a contingency to meet the costs of any variations as a result of the Thames Water requirements;

(3)        That the Director of Neighbourhoods, in liaison with the Asset Management and Economic Development Portfolio Holder, be authorised to agree any variation subject to it being within the current capital budget for this element of the project; and

(4)        That the revised target opening date for the Shopping Park of Easter 2017 (Easter Sunday 16 April 2017) be noted.

The Portfolio Holder for Asset Management & Economic Development presented a progress report on the development of the Epping Forest Shopping Park.

The Portfolio Holder reported that tenders for the Section 278 Highways Works were received by 28 October 2015, and subsequently analysed by the Project Team. The recommendation was to appoint Walker Construction (UK) Limited to carry out the works for a sum of £2,070,029. Although this was not the lowest bid, it had scored the highest under the combined Quality/Price evaluation process. Following meetings with the successful bidder, Essex County Council Highways suddenly announced that they would not permit temporary traffic lights to restrict the flow of traffic in Chigwell Lane during the works, even at off peak times. This restriction related mainly to work required by Thames Water to enlarge a foul water drain located in the road, which the contractor had already proposed to do in 50 metre sections, and was very disappointing as the Council’s Consultants had made numerous attempts to ascertain the Highways requirements for these works. An alternative plan to locate a new, larger foul drain in the grass verge was currently being examined for feasibility. Conversely, this might result in a financial saving as work in grass verges was less costly than work in the highway, and it was also recommended that the balance of the capital allocation for these works (£179,970) be retained for the time being as a contingency.

In respect of the Main Build contract for the Shopping Park, the Portfolio Holder informed the Cabinet that no bids had been received under the agreed single-stage OJEU procurement process by the closing date of 23 November 2015. A meeting of the Project Team on 7 December 2015 had discussed the re-tendering of the contract and concluded that a two stage restricted procurement process would attract more interest, and it was intended to issue Pre-Qualification Questionnaires and Invitation to Tender documents on 15 January 2016. This would now mean that practical completion of the Park would not be achieved for a Christmas 2016 opening, and that a revised opening date of Easter 2017 was now anticipated.

The Portfolio Holder stated that interest in the site was still high from potential tenants; however, some of the key ‘anchor’ tenants would not achieve sign-offs from their Boards for the leases until February 2016. The construction works at Oakwood Hill Depot had now completed both the foundations and steel frame. The works were expected to be completed by April 2016, which would allow the depot at Langston Road to be vacated in time for the planned commencement of construction works at the Shopping Park.

In response to questions for the Cabinet, the Council’s consultant confirmed that there was a Project Plan in existence, and that the Section 278 Highways Works were on the ‘critical path’ as the Park could not open until these works had been completed. The Council would have a more accurate idea of the anticipated length of the project once the Main Build contract had been awarded. If this contract was successfully let in May 2016 then the buildings should be ready for fitting out by the tenants in February 2017.

Decision:

(1)        That the tender of £2,070,029 from Walker Construction (UK) Limited to carry out the Section 278 road works in Chigwell Lane relating to Epping Forest Shopping Park be agreed, subject to revisions required by Essex County Highways regarding Thames Water required works;

(2)        That the balance of the current capital allocation of £2,250,000 i.e. £179,970 be retained as a contingency to meet the costs of any variations as a result of the Thames Water requirements;

(3)        That the Director of Neighbourhoods, in liaison with the Asset Management and Economic Development Portfolio Holder, be authorised to agree any variation subject to it being within the current capital budget for this element of the project; and

(4)        That the revised target opening date for the Shopping Park of Easter 2017 (Easter Sunday 16 April 2017) be noted.

Reasons for Decision:

To award the contract for the Section 278 Highways Works.

To appraise the Cabinet on the general progress with the development of the Epping Forest Shopping Park, as previously requested, and highlight any issues of concern.

Other Options Considered and Rejected:

To not accept the tender from Walker Construction (UK) Limited. However, this would delay the completion of the necessary Highways Works and risk further delay to the opening of the Shopping Park, with a consequential revenue loss for the Council.