Business Services

REPORT TO BUCHAN AREA COMMITTEE – 19 APRIL 2016

88 KING STREET, PETERHEAD – OFFICE UPGRADE AND REFURBISHMENTCONTRACT 18034

1 Recommendations

The Committee is recommended to:

1.1 Give approval of the project cost of £ 92,723.49 inclusive ofProperty costs detailed within the report;

1.2 Authorise acceptance of the tender submitted by CHAPConstruction in the confirmed tender amount of £ 84,294.08; and

1.3 Approve progress to Gateway Stage 4 – Construction.

2. Discussion

2.1 It is proposed to upgrade, refurbish and reconfigure the existing officeaccommodation layout at 88 King Street, Peterhead, including lighting,decoration and flooring.

2.2 A report was taken to the Health and Social Care Integration Strategic PlanningGroup in November 2014 identifying 88 King Street to benefit from an upgradeto enable better service delivery from the Health and Social Care Partnership.The office upgrade and refurbishment scope was identified through theInfrastructure, Technology and Information and Data Sharing Board which wasestablished to practically enable the integration of Council staff and NHS staff.

2.3 The upgrade works are to be funded from the Integrated Care Fund. Officers’recommendations for spend were incorporated by the Strategic Planning Groupinto the Strategic Plan. The Strategic Plan and Revenue Budget that wasapproved by the Integration Joint Board includes the funding for this project.The Integration Joint Board issued a Direction on 16 March 2016 which directsthe Council, and the NHS, to deliver the functions delegated to the IntegrationJoint Board in line with the budget approved.

2.4 The Report is brought to Buchan Area Committee to enable implementation ofthese works under the authority of the Direction from the Integration JointBoard. The Direction is to the Council therefore usual Council proceduresadhering to the Scheme of Delegation are appropriate.

2.5 The Area Committee can approve projects or obligations either in principle orat tender stage where the value of the matter exceeds £60,000, is in theapproved annual service budget, relates exclusively to their area and thedecision is in accordance with officer recommendations. Should the Committeedisagree with the recommendations, the report will be referred to Policy andResources Finance have confirmed that this funding forms part of the annual

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service budget, and all other criteria are applicable therefore appropriate thatthis decision is taken by Buchan Area Committee.

2.6 If the Committee are minded to approve the recommendations it is consideredappropriate to progress to Gateway Stage 4.

2.7 The contract acceptance will be issued week commencing 25 April 2016The works on site will commence week commencing 23rd May 2016 and will becomplete week ending 1st July 2016. The project will be subject to regularproject meetings to ensure works are completed within contract period.

2.8 An asbestos survey will be carried out to the areas of the building affected bythe works and any asbestos containing materials will be removed and disposedof by a specialist contractor prior to works commencing on site, all in compliancewith The Control of Asbestos Regulations 2012.

2.9 Aberdeenshire Council is currently working to deliver a commitment to halvingwaste to landfill from construction based on the Zero Waste Scotland scheme.

2.10 The local members Councillors Anne Allan, Alan Buchan, Alan Gardiner andFiona McRae were consulted on this report.

2.11 The Business Services Manager within Health and Social Care Partnership hasbeen consulted.

2.12 The Head of Commercial & Procurement Services within Business Serviceshas been consulted and has no comments to make.

2.13 The Head of Finance has been consulted and is satisfied that there are nofinancial implications arising from this report.

2.14 The Monitoring Officer within Business Services has been consulted andcomments have been incorporated within the report.

3. Equalities, Staffing and Financial Implications

3.1 An Equality Impact Assessment was carried out by the Health and SocialCare Partnership and is attached to this document.

3.2 There are no staffing implications arising from this report.

3.3 Tender documents were advertised on Public Contracts Scotland web portal.The following contractors returned tenders:-

Anderson Construction (Aberdeen)Bancon ConstructionBurns ConstructionCHAP Construction LtdKW Contractors (Abdn) LtdVG Willox Ltd

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3.4 Tenders are checked in accordance with alternative 1 of the code of practicefor single stage selective tendering with the exception of any arithmetical errorswhich if discovered before acceptance of the offer will be corrected and thecontract sum so amended.

Tender sums in ascending order, before and after checking, were as follows:-

Tender prices Tender prices afterBefore Checking Checking and Correction

£ 84,546.37 £ 84,294.08£ 87,856.44 £ 88,466.32£ 96,220.39 £ 95,707.89£ 98,533.05 £ 98,533.05£ 103,920.33 £ 103,920.33£ 123,286.73 £ 124,186.68

3.5 The lowest tender in the corrected amount of £84,294.08 was submitted byCHAP Construction Ltd.

3.6 The total cost of works based on the lowest tender is as follows:-

Works Cost £ 84,294.08Property Cost £ 8,429.41

£ 92,723.49

3.7 The forecast expenditure profile for the project is as follows:

Financial Year 2016/17 £ 90,405.40Financial Year 2017/18 £ 2,318.09

£ 92,723.49

3.8 The Principal Building Surveyor confirms that the costs are fair andreasonable for this type of work.

3.9 The project cost of £92,723.49 can be contained within the Integrated CareFund.

Ritchie JohnsonDirector of Business Services

Report prepared by: - David Kemp, Principal Building SurveyorG\WP\Reports\18034 88 King Street Rep01

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