The proposed development of the new Rose Hill Community Centre will commence upon the appointment of a building contractor. Tenders were submitted on the 8th September with a view to awarding the contact week commencing 22nd September 2012.
The value of this contract will be in excess of £500,000.

The Executive Director of Community Services will award a contract to develop the new Rose Hill Community Centre.

The Head of Leisure, Parks and Communities submitted a report (previously circulated, now appended) which requested project approval for the construction of Rose Hill Community Centre at a total cost of £4,764,000.

The Head of Leisure, Parks and Communities explained that an additional £478,000 was needed to complete the construction of the Rose Hill Community Centre. Material costs had increased significantly since the original budget was agreed and the two tenders received did not fall within the existing budget. There is currently a lack of supply in materials as many local construction businesses have gone out of business since the recession.  A lot of materials have to be imported from abroad which has increased costs. Half of the £478,000 would be set aside as contingency and was unlikely to be spent.

Councillor Turner, Executive Member for Finance, Asset Management and Public Health agreed with the rising price of materials being the cause of the project being over-budget. He felt that because the Council had consulted the public and had designed the building in line with the public’s response. It was important that the Council complete the proposed work rather than reduce the scale of the building to meet costs.

Councillor Fooks was concerned with the Council’s ability to manage the capital programme and if additional funding is given to complete this project what capital project misses out? Cllr Turner said that the capital programme would need to be re-prioritised.

Cllr Simm asked that officers analyse what mistakes were made in the budgeting of this project and should anticipate rising costs when budgeting future projects.

The City Executive Board resolved to:

1.    Grant project approval for the construction of the Rose Hill Community Centre within a revised capital budget of £4,764,000;

2.    Recommend to full Council the allocation of a revised capital budget of £4,764,000.