Joseph Lancaster Project Board Presentation igloo Community Builders 20/5/19

Overview 1. PCSA Objective - What were trying to achieve and by when? 2. Commercial (contract sum) Overall Construction Cost breakdown Commercial (Quantifiable) Risks 3. Funding 4. Contract Programme 5. Contractors proposals - Design Outcome of Review of Contractor Proposals (Design) Landscape Strategy Playspace Strategy 6. Project Risks 7. Qualifications, T&C’s and JCT amendments 8. KPI’s

1. PCSA objective Progress the Design to Stage 4 Buxton to Tender the Stage 4 design to a minimum of three sub-contractors. Target construction cost of £10,290,576 Enter into a build contract in 29th April 2019 The build contract is made up of: Commercial - Tender sum Programme Contractor proposals - the design Terms and conditions JCT amendments – payment terms & defects period Qualifications Identify and close out project risk Agree KPI’s

Commercial How much is it costing?

2. Gross Development Cost Line item Target 08-May-19 Construction cost 10,290,576 12,203,545 PCSA 292,580 £367,632 Sub-total 10,583,156 12,571,177 DCLG (pre-development grant) 427,000 Professional Fees 1,171,361 1,143,170 LCBS Client fee (3%) 308,712 429,024 12,490,229 14,570,371 ROL 100,000 Development Contingency (5%) 629,511 680,990 Total GDC 13,219,740 15,351,361 Difference (£) 2,131,621 Difference (%) 16.12%

Commercial Since the initial submission of 28 March 2019 BBCL resubmitted their CSP a further 5 times with the latest version being submitted on 13 May 2019 to the sum of £12,571,177 which is a reduction of approximately £43,000. These changes can be seen in full on page 15 of the Measur Cost Report. Needs to change once we have

Section cost Total Section 00 Section 01 Section 02 Construction Cost   Total Section 00 Section 01 Section 02 Construction Cost -£12,098,890 -£154,444 -£970,628 -£10,973,818 PCSA -£292,580 -292,580 VAT -£86,035 -£106,900 £20,865 PCSA final account -£76,495 TOTAL -£12,554,000 £630,419 -£10,952,953

3. Southwark Funding

Commercial Risks Provisional sums Contractor Provisional sums (£649k) Crane Street light relocations Archeology Piling Obstructions & length & pile matt Reinforcement Statutory undertaking UXO Landscape & Play equipment Smoke detectors in ceiling voids 278 works Client side (provisional sum £35k) Lift enhancements (£10k), Access gates (£10k) Solar shading (£15k) Difference between landscape £ nil Difference in playspace (£40k) Southwark Funding (delay to start on site, additional prelims) Third party risks Risk Register vs Development Contingency - £680k vs £791,779.08

Contract Programme

Programme Programme is 92 weeks (22nd May 4 week mob, June 17th –) Contract is spilt into effectively three - Demolition, section 01, section 2 Demolition 6 weeks instructed on 25th March. Hoarding commenced Tuesday 7th May. This stage includes: site prep, demolition & car park Stage 1 – ring fence ground risk (UXO, &Archeology) Stage 2 – Piling matt onwards Stage 1 – Needs to enter into contract w/c 22nd May to avoid delay. Four week mobilization with work commencing 19th June. Stage 2 – Programme assumes Stage 2 instructed on 26th August, four week mobilization. Main works (Stage 2) on site on Sept 19 till March 22

Programme

Contractor’s Proposals What are you buying?

Design Champions LCH Ltd has appointed: BPA, Conisbee, XC02, Anna French & DeGraff Three sections: Pre-Contract, Technical Review & Construction Appendix xx of the report shows the progression of Design Champion comments.

Alternative Landscape Strategy Three references were sought and to date we have received two. When compared to Buxton’s three tenders Urban Growth is in line with other tenders but will bring greater social impact for the same price. Not withstanding Debbie’s concerns. For further details please see separate landscape report. 162,706 vs 142,574

Alternative Playspace Based on the element costs Build-up are competitive, but when you add in the consultation/social value/engagement are more expensive.

Project Risks Contractors Proposals Output of Design Review by Design Champions M&E package based on Stage 3 design Agreement of Contract Amendments (KPI’s, Defects & payment terms) Alternative strategy risk Community engagement / Resident liaison Car parking Nuisance - noise & dust

Qualifications, T&C’s and JCT amendments

KPI’s

END

Gross Development Cost Line item Target Draft Tender Report 08-May-19 Construction cost 10,290,576 12,203,551 12,183,925 PCSA 292,580 310,820 369,075 Sub-total 10,583,156 12,514,371 12,554,000 DCLG (pre-development grant) 427,000 Professional Fees 1,171,361 1,130,391 1,325,111 LCBS Client fee (3%) 308,712 427,035 428,512 12,490,229 14,498,797 14,610,474 ROL 100,000 Development Contingency (5%) 629,511 677,834 680,178 Additional Client Side Provisional items 35,000 Total GDC 13,219,740 15,276,631 15,373,003 Difference (£) 2,056,891 2,153,263 Difference (%) 15.56% 16.29%