Agenda item
Suttons Wharf Health Centre, To approve additional grant funding of £398,088 (excl. VAT).
- Meeting of Grants Determination (Cabinet) Sub-Committee, Wednesday, 3rd February, 2021 5.30 p.m. (Item 6.1)
- View the background to item 6.1
The Grant Determination Subcommittee is recommended to:
1. To approve the grant funding of an additional £398,088 of s106 funding for healthcare facilities, excluding VAT, to complete the new health facility within the Suttons Wharf development.
2. To authorise the execution of any agreements necessary to give effect to recommendation 1
Minutes:
Michael Coleman, (HAC Capital Programme Manager) presented the report
seeking an additional £398,088 of s106/CIL funding to meet the increased
costs of providing a modern health facility within the Suttons Wharf development, to be operated by the Globe Town Surgery.
It was reported that a number of unforeseen issues had affected the project, leading to further cost increases.
These related to the impact of:
· Brexit related uncertainties and the associated increase in supply costs.
· Covid 19 on working practices.
· The need to change the cladding following the Grenfell tragedy.
· There had also been issues with and delays with the project delivery.
The proposals included contingency funding to cover any small additional costs.
This project was being delivered by NHS Property Services (NHSPS) and the Waltham Forest and East London Clinical Commissioning Group (WELCCG), Jack Dunmore, of the NHS was also present, to respond to questions.
It was noted that the Council had sought assurances from the NHS and challenged the request for additional funding. This was with a view to understanding the costs of the project and ensuring they were required and were not particular to this scheme. Officers were satisfied that the process was robust and that similar issues had arisen with other projects outside Tower Hamlets. The consequences of not approving the funding would mean that the project could not be completed and the benefits of the scheme could not be delivered.
The Sub - Committee and Councillor Leema Qureshi asked a number of questions and discussed the following points:
· Members welcomed the improvements to health facilities in the Borough and was pleased to hear about the proposed completion date of April to May 2021.
· The Sub – Committee also discussed the plans to ensure that the layout met Covid restrictions. It was noted that the layout should comprise such features as one way systems and provide screening where necessary. It was reported that the mitigating measures would be in place in time for the opening of the facility.
· Members also asked about the introduction of the Building (Amendment) Regulations 2018 relating to building cladding and how this had affected the project.
· It was confirmed that the surgery formed part of a mixed used development including buildings with cladding. Details of this was outlined.
· Officers undertook to confirm the date of the redesign changes in relation to the introduce of the new legislation.
· It was noted that liability for the project, (beyond the construction costs, such as the maintenance costs) would rest with NHS Properties and the freeholders.
· In terms of the benchmarking exercise, it was emphasised that Officers had carried out due diligence tests of the costs with the NHS cost consultants, based on other projects, they had worked on. Details of the full assessment process was set out in the report. Assurances were sought and Officers had been assured that the costs were not specific to this project only.
RESOLVED:
1. To approve the grant funding of an additional £398,088 of s106 funding for healthcare facilities, excluding VAT, to complete the new health facility within the Suttons Wharf development.
2. To authorise the execution of any agreements necessary to give effect to resolution 1 above.
Supporting documents:
- Suttonswharf, item 6.1 PDF 423 KB
- SuttonA, 13/01/2021 Grants Determination Sub-Committee Pre-agenda Meeting, item 6.1 PDF 414 KB