Issue details
Island Gardens Café: additional budget requirement
Following the approval of the £0.442m
from s106 for the development of Island Gardens Café
(including public toilets) by Cabinet on 26th January 2021 as part
of the 2020-24 Approved Capital Programme, the project costs have
increased.
The contractor procurement process started earlier this year and
resulted in tender returns which exceeded the original project
estimate as at May 2020. The construction industry generally has
experienced considerable material and price increases. Contractors
are therefore approaching tenders more cautiously to ensure their
tenders are robust to cover further price increases once material
orders are actually placed after a contract award. In addition, the
tender market is also incredibly busy at present. Contractors can
therefore be more selective in the tenders they price again
resulting in a general increase in prices. Following a period of
value engineering, the construction costs have been reduced, but
are still exceeding the approved budget.
Approval is sought to increase the total scheme budget to
£0.983m. The funding for this project will include
£0.250m from LIF for the provision of public toilets in
Island Gardens, with the remaining £0.692m from s106
contributions. The new café is expected to provide a revenue
stream to offset the capital costs.
Once a budget approval is in place, the construction contract can
be awarded and work start on site as planned in early November
2021, for completion in July 2022. A delay in budget approval will
risk the café not being ready for next summer and continued
build cost inflation and supplier risk will be incurred.
Decision type: Non-key
Decision status: Recommendations Approved
Wards affected: (All Wards);
Notice of proposed decision first published: 15/09/2021
Open/Exempt: Open;
Decision due: September 2021 by Mayor's Executive Decision Making
Lead member: Cabinet Member for Planning and Social Inclusion (Job Share) - Lead on Planning
Lead director: Corporate Director, Place
Department: Place
Contact: Vicky Clark, (Director of Integrated Growth and Development) Email: vicky.clark@towerhamlets.gov.uk.
Consultation process
Targeted consultation has been undertaken in
accordance with the information provided in the PIDs.
Consultees
N/A
Has an Equality Analysis been carried out and if so the result of this Assessment?: Initial EIAs form part of the PID approval process for individual capital programme areas
Agenda items
- 22/09/2021 - Mayor's Executive Decision Making Island Gardens Café: additional budget requirement 22/09/2021
Documents
- Island Gardens Café: additional budget requirement