Tuesday 16 July 2024
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Nottingham

Nottingham City Council approves procurement approach for Eastglade new build development Phase B

Nottingham City Council has made an operational decision to appoint Lovell as the Principal Contractor for the Eastglade new build housing development’s Phase B.

The decision was made on 2nd August 2023 and was announced on 9th August 2023.

Work to build Phase B of 106 new council homes in Top Valley is set to move on with the appointment of a new contractor.

Background of the Eastglade Development

The Eastglade new build housing development consists of 106 affordable council-owned homes, split into two phases, A and B, each comprising 53 new homes. The original principal contractor, Robert Woodhead Ltd, ceased trading in September 2022, leading to the appointment of Lovell Partnership for Phase A.

Decision for Phase B

The decision for Phase B was taken to use the Fusion 21 Framework to appoint Lovell as the Principal Contractor via direct award. The rationale behind retaining Lovell is to ensure continuity, as introducing a third contractor could lead to complications and increased time for learning the project.

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The Fusion 21 framework was identified as the most suitable procurement route, demonstrating value for money. Lovell was found to be the first/second cheapest on the framework, providing assurance of cost-effectiveness.

Importance of Swift Commencement

The swift commencement of works is crucial to avoid rent loss, security costs, insurance costs, and increased risk of anti-social behavior. Delays could lead to:

  • Rent loss of £28k per month
  • Insurance costs of £2k per month
  • Security costs of £15k per month

The site has already suffered from anti-social behavior, including break-ins, vandalism, stone-throwing, and fires, resulting in damages around £30,000.

Impact on Tenants and Community

The decision will allow new tenants to move in sooner, increasing circulation in stock, and providing accommodation for those currently unsuitably housed or in temporary accommodation. The decision also aims to mitigate negative publicity and potential impact on the reputation of NCC.

Other Options Considered

A tender process was considered but rejected, as it would result in further delays and could lead to complexities with multiple contractors involved.

Legal and Financial Considerations

The decision was found to have no significant legal concerns, and the Fusion 21 Framework provides a compliant route to market. The Eastglade scheme has been approved at the Executive Board in February 2020, and this decision does not increase the budget requirement.

Conclusion

The decision to appoint Lovell as the Principal Contractor for Phase B of the Eastglade development reflects a strategic approach to ensure continuity, value for money, and timely completion. It also emphasizes the council’s commitment to providing affordable housing and maintaining community well-being.

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