Treasury and Resources
Ministerial Decision Report
Allocation of fiscal stimulus funding for various Backlog Maintenance projects at social housing estates
1. Purpose of Report
Tenders for various maintenance projects to be undertaken at social housing estates have now been received and evaluated by the Housing department. The tender returns have been subject to review by the Fiscal Stimulus Steering Group (the “Steering Group”) to ensure that the Fiscal Stimulus criteria continue to be met. This paper summarises the resulting recommendation.
2. Background
A programme of backlog maintenance projects to be undertaken by the Housing department is included in the Treasury and Resources Minister’s “amber light” programme of fiscal stimulus projects. The backlog maintenance projects are designed to address deficiencies in standards across the social housing portfolio and bring the properties up to standard. The work was already planned but without the Discretionary Fiscal Stimulus, it would have had to be delivered over a longer time period in order to meet funding constraints.
All these projects will provide work for local business and labour, and are programmed to be undertaken substantially in 2010, significantly increasing public sector spending and investment in social housing stock.
This paper seeks green light approval for the projects set out in Section 3 for which tenders have been returned and evaluated by the Housing department. The work being undertaken at each of the sites is roof replacement, upgrading of windows and/or doors, or a combination of the three work types.
3. Tender Process and Results
Estate | Project | Green light amount £ |
Great Union Road | Window and door replacement | 18,200 |
Pre de Talbot | Roof replacement | 233,750 |
St Georges | Roof replacement | 199,800 |
Town Mills | Roof replacement | 185,250 |
TOTAL | | 637,000 |
The cost of the projects, including clerk of works fees and appropriate contingency is £637,000. Any unspent monies in relation to the scheme, including contingencies, are required to be returned to the fiscal stimulus programme on completion of the respective projects.
The Housing department has followed a pre-determined process in conducting the tenders which they confirm to be compliant with Financial Directions and Procurement Principles for the Fiscal Stimulus Programme. The process and outcomes have been subject to review by the Steering Group, which has resulted in the recommendation below.
4. Recommendation from the Fiscal Stimulus Steering Group
The Steering Group recommends that the Minister for Treasury and Resources allocates funding of £637,000 to the Housing department for delivery of the projects. The budget allocation to the Housing department will be in the amount of £637,000, representing construction costs and appropriate contingency in order to proceed in accordance with the critical path of the projects.
5. Reason for Decision
A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The projects meet the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £637,000 allocation to the projects will enable the Construction and Maintenance project group to let the contracts and deliver the scheme in accordance with the programme.
6. Resource Implications
No financial resource implications other than those explained above.
No manpower resource implications.
Report author : Acting Fiscal Stimulus Programme Manager | Document date : 7th June 2010 |
Quality Assurance / Review : Business Manager | File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2010-0087 - fiscal stimulus allocation housing maintenance projects - hmg\wr - fiscal stimulus funding to housing maintenance project - slj.doc |
MD sponsor : Interim Treasurer of the States |
Page of 2 Printed: 6/7/2010