TREASURY AND RESOURCES MINISTER
mont a l’abbe phase 1 - inflation funding
1. Purpose of Report
1.1. The Minister is asked to approve the release of £194,000 from the fluctuation reserve to enable the Education, Sport and Culture Department to accept a tender to commence works on the new Mont A L’Abbe School SEN Unit (Phase 1) on the Haute Vallée school site.
2. Background
2.1. The Minister will recall that he approved the drawings for the new SEN Unit on 15 May 2006 (ref MD-TR-2006-0066).
2.2. A tendering process has since taken place with the lowest tender submitted by A.C. Mauger & Son (Sunwin) Limited in the sum of £1,737,861.
2.3. Unfortunately, despite the lowest tender being compliant and acceptable, its total value when added to the other non-contract costs is above the budget available of £2,108,000, comprising £1,914,000 at December 2004 price base plus estimated inflation of £194,000.
2.4. A detailed examination of the tender documents and specifications by the Design Team and Officers has taken place to seek to reduce the scope of the work to be undertaken.
2.5. This has resulted in an acceptable list of omitted and amended items yielding an overall saving of £112,773, thus reducing the proposed contract sum down to £1,625,088, which, when added to the non-contact items, can be contained within the overall budget sum.
3. Comments
3.1. The revised cost estimate has been reviewed by the States Chief Quantity Surveyor and comprises the following:
Item | £ | £ |
Tender received (02.06.06) | | 1,737,861 |
Less: Mechanical Installation savings | (7,500) | |
Electrical Installation savings | (21,458) | |
Defined Prov sum (water feature) | (5,000) | |
Undefined Prov sums | (12,000) | |
Reduce external works/paving | (66,815) | |
Identified Savings | | (112,773) |
Plus: Furniture and Final Works | 98,551 | |
Professional fees | 317,103 | |
Other Costs (surveys / testing / sundry costs etc.) | 67,258 | |
Non-Contract Costs | | 482,912 |
| | |
Estimated Total Project Cost | | £2,108,000 |
3.2. The Minister for Education, Sport and Culture has accepted the lowest tender, subject to the allocation of £194,000 inflation funding (MD-ESC-2006-0043 refers).
3.3. The sum of £194,000 has been earmarked within the fluctuation reserve.
4. Recommendation
4.1. That the Minister approves the transfer of £194,000 from the fluctuation reserve to the Education, Sport and Culture Department in respect of works on the new Mont A L’Abbe School SEN Unit (Phase 1) on the Haute Vallée school site.
5. Reason for Decision
5.1. The estimated total project cost incorporating the revised tender sum can be contained within the overall budget sum approved by the States.
States Treasury Corporate Finance
14 September, 2006 for Decision Meeting 10/07/2006