Agenda item

A report from the Executive Director Place is attached.  (Key decision – reference number 5311)

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director Place seeking approval to award a Pre-Construction Services Agreement (PCSA) and, subject to satisfactory performance of PCSA obligations, a subsequent NEC4 construction contract for the completion of the works.

•  The approvals requested of Cabinet were highlighted, and that the process was on track to meet the proposed timetable for the delivery of rail infrastructure works at Ponders End station, which will enable the increase of rail frequency at Meridian Water station.

•  There had been a constructive discussion at the recent Regeneration and Economic Development Scrutiny Panel meeting in respect of the infrastructure, HIF agreement, and delivery of the work, and the Panel would receive further updates.

•  Officers confirmed the timescale for the works and that the preferred bidder had submitted a programme demonstrating they were able to deliver the works by the deadline. The next stage would be to finalise contractual terms, and delegated authority was sought for the final negotiations. Any material amendments would be submitted to Cabinet for approval.

Alternative Options Considered: 

Doing nothing would leave the Council without the strategic infrastructure and prevent phase delivery at Meridian Water delaying provision of much needed affordable homes.

DECISION:  The Cabinet agreed to

1.    Approve the appointment of the preferred contractor, Bidder A, based on GRIP stage 3 design information for the delivery of a programme of strategic rail infrastructure works at Ponders End to facilitate the uplift in train frequency at Meridian Water station as set out in the confidential appendix to the report.

2.    Approve the entry by the Council into a PCSA with the preferred contractor.

3.    Delegate authority to award the NEC4 contract to Bidder A to the Director of Development subject to (i) unconditional availability of funding from DHLUC under the HIF Grant Agreement, (ii) agreement of design and prices that are within the required project scope and budget (iii) all necessary licences and approvals for works being granted by Network Rail.

4.    Subject to availability of sufficient funds in the approved capital budgets delegate authority to approve and enter into subsequent variations to scope under the contract to the Meridian Water Development Director.

5.    Approve for the additional expenditure of £9.3m for the main works to be forward funded in 2022/23 and 2023/24 from the Capital Programme subject to unconditionality of the HIF funding. This is in addition to the previously approved HIF budget. The forward funding will be reimbursed quarterly from the Housing Infrastructure Fund (HIF funding) up to £53.9m until the end of 2023/24. Refer to paragraph 10 of the report.

Reason: 

1.    Strategic rail infrastructure is required to provide 4 trains per hour at Meridian Water station to facilitate the growth expected at Meridian Water between 2024 and 2041. The agreed approach with relevant rail stakeholders is the introduction of a passing loop at Ponders End station to enable stopping services at Ponders End station to be overtaken by fast services. This allows an increase of stopping services at Meridian Water Station.

2.    It is intended that the entirety of the rail infrastructure works will be funded by the HIF grant. It is a requirement of HIF Grant Determination Agreement that the funding is claimed by 31st March 2024. The Council will be unable to claim HIF funding for any works completed after 31st March 2024. The Council therefore needs to appoint a contractor to commence the Strategic Rail Infrastructure Works in time to claim 100% of the funding available to it.

3.    The original project programme had GRIP 4 design being completed prior to the appointment of the main contractor and commencement of GRIP 5. However, due to delays of the design to date, alternative methods for delivering the work have been investigated. The preferred method to mitigate design delays is to enter into a PCSA with the preferred contractor to enable critical path activities in the NEC4 contract to be brought forward to protect the funding expiration date of March 2024.

4.    Subject to satisfactory performance of the PCSA obligations, the Contractor is expected to be appointed under a NEC4 works contract in the Summer 2022 to build upon the PCSA and commence GRIP 5 design work, with GRIP 6 construction works commencing in early 2023. The construction works are estimated to take around 12 months on site to complete.

5.    The PCSA period coincides with the preliminary expenditure phase of the HIF agreement which allows the Council to be reimbursed by DLUHC for costs incurred by the PCSA works.

(Key decision – reference number 5311)