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Education

Budget for new nurseries in East Renfrewshire rises by £1.7m

An extra £1.7 million has been required to cover the cost of building six new nurseries in East Renfrewshire.

By Drew Sandelands, Local Democracy Reporter
Wednesday, 9th December 2020, 3:39 pm

The Covid-19 pandemic, and its impact on the construction industry, as well as sewerage issues have caused the rise.

Almost £27.4m had already been approved to provide the new nurseries, which are being built to help East Renfrewshire Council meet the Scottish Government’s increased early years entitlement of 1140 hours childcare for all eligible children.

They will be located at Glenwood, next to Glenwood Family Centre, Crookfur, at the Parklands pavilion, Overlee, at the Overlee Park pavilion and at Busby, Eaglesham and Cross Arthurlie primary schools.

Heron Brothers Ltd, the building contractor for all the nurseries, except Cross Arthurlie, had been expected to finish work in July this year but had to shut down the sites in March due to the pandemic.

Work resumed in June but with reduced staff and supplier issues, which have extended the construction period and caused additional costs.

The council’s cabinet agreed a compensation payment should be paid to Heron Brothers, sharing the financial impact.

Terms have also been negotiated with the contractor for Cross Arthurlie.

The total sum to be paid by the council is £803,000.

Environment director Andy Cahill told the cabinet: “I would advise, that if the council wasn’t to agree, we could face a potentially costly legal dispute.”

More money was also required to pay for sewerage works.

The council’s engineering consultant had expected Scottish Water to allow a relaxation of rules around surface water drainage so “no allowance was made for this cost”.

“Unfortunately, it transpires that Scottish Water has toughened its stance in this regard during the design and construction period and lessons have been learned for future projects,” a council report reveals.

A request to Scottish Water to connect to the combined sewer for five new-build nurseries was initially refused.

Following negotiations, the council has been allowed to connect to the combined sewer at Crookfur, Eaglesham and Busby on the condition that “an equivalent amount of surface water is removed from the combined sewer within the same catchment”.

This work has cost £196,000.

At Overlee and Glenwood, the buildings have been connected to water courses, removing the need to use the combined sewer.

This cost £380,000.

Mr Cahill said: “Without connection in some way to the sewerage, those nurseries could not ever open without a water supply.”

In total £526,000 was needed to pay for the sewerage works, with an extra £50,000 included as a contingency.

Other additional costs, including post-contract changes, re-designs and on IT infrastructure, took the total additional costs to £910,000.

Savings from other council budgets reduced the outstanding amount to £1.34m, which will be found from delays and deferrals, caused by Covid-19, to other projects.

There will be no additional borrowing in this financial year, but it will be required in future to deliver projects which have slipped.

Council leader Tony Buchanan said: “I think building six nurseries at the one time in normal circumstances was always going to be challenging but to do it on the back of the pandemic and everything that has happened around that has been extremely difficult.

“I think the key aspect of this has been delivering 1140 hours, which we know is appreciated by the vast number of parents across our authority who are able to make use of that service.”

Extra costs during the shutdown related to rent of site cabins, utilities, security, insurances, plant and some staff.

Work is expected to be complete by the end of this year.

MINUTE of CABINET
Minute of virtual meeting held at 10.00am on 3 December 2020.

EARLY LEARNING AND CHILDCARE (EXPANSION 2020.

Under reference to the Minute of the meeting of the Council of 9 September 2020 (Page 1258, Item 1352 refers) when movements within the General Fund Capital Programme were agreed, the Cabinet considered a report by the Director of Environment providing an update in relation to the progress of the project to deliver the expansion of Early Years provision in East Renfrewshire to meet Scottish Government requirements.

The report explained that building contractors were appointed for the six Early Learning and Childcare (ELC) projects;

that completion was originally expected by July 2020; and

that the projects had since been delayed due to COVID-19 and Scottish Water issues.

Negotiations had taken place with both the contractors and Scottish Water in order to resolve matters as quickly as possible.

The building contractors had been working under a restrictive regime since June 2020, as a result of Government guidance, and in order to prevent any costly legal claims in future, it was proposed that the Council would share the additional COVID-19 related costs with the contractors.

In addition, due to a tightening of regulations by Scottish Water, costs which had not previously been identified would now be incurred for surface water drainage.

Given the urgency of the projects and the advanced stage of construction, approval had already been given for the works to go ahead as, without these connections, the centres could not open.

Further information was also provided on other additional costs which had been incurred including an allowance for the sum of post contract changes; additional contingency allowance; and

additional equipment and services.

The Director of Environment clarified that every attempt had been made to mitigate the additional expenditure, including identifying potential savings, and a sum of money had been identified as a rebate from Hub West Scotland and from works at St Cadoc’s.

The remaining funds would be found from delays and deferrals due to COVID-19 in other projects.The Cabinet:

(a) noted the delay in the opening of the nurseries due to the impact of the COVID-19 virus on the construction industry;

(b) homologated the decision by the Director of Environment to vary the relevant contracts to accommodate additional works in particularly challenging circumstances in an effort to open the nurseries as quickly as possible;

(c) recommended to the Council that additional capital expenditure of £910,000 be approved to cover the additional committed works; and

(d) recommended to the Council that a compensation payment of £803,000 in relation to coronavirus issues be made to Heron Bros as outlined in the report.

Freedom of Information(FOI) Request - 101002383630 Heron Bros Compensation
Made On Line
10/12/2020
101002383630

To: East Renfrewshire Council

Freedom of Information Request(FOI)

This FOI concerns details contained in the Report by Director of Environment - EARLY LEARNING AND CHILDCARE (Expansion 2020) Dated December 2020, presented to East Renfrewshire Council(ERC) Cabinet Committee on 3 December 2020.

The FOI excludes Scottish Water negotiations/information.

It particularly concerns the details surrounding (but excludes Scottish Water negotiations)

The main new build nurseries situated at the following locations;

•Glenwood, adjacent to Glenwood Family Centre
•Crookfur, at the Parklands pavilion
•Overlee, at the Overlee Park pavilion
•Busby, at Busby Primary School
•Eaglesham, at Eaglesham Primary School
•Cross Arthurlie at Cross Arthurlie Primary School

and specifically

- the compensation payment of £803,000 to be made to Heron Bros

- Property and Technical Services staff negotiated terms with the contractor for Cross Arthurlie and the other works packages

- any other additional capital expenditure to cover the additional committed works

also

This FOI is not looking for the actual legal advice given but looking for general information regardingadvice received from legal services during the early stages of the pandemic was to adopt a cautionary position with regard to potential claims so as to control the Council’s exposure to further costs and, If the additional sums are not approved it is possible that ERC could face a potentially costly legal dispute

- Details of who provided legal advice

- The cost of this legal advice

- Details of who provided the advice that ERC could face a potentially costly legal dispute

- general details of why ERC could face a potentially costly legal dispute and what this potential costly legal dispute would involve

- the potential cost of this potentially costly legal dispute

Please provide all information/reports/documents/meeting notes/minutes held regarding above including all correspondence/emails to/from/between -

ERC Council Officials and ERC Council Officials
ERC Council Officials and ERC Councillors
ERC Council Officials and Heron Bros
ERC Council Officials and Gardiner and Theobald (G&T)
ERC Council Officials and legal services(Excluding the actual legal advice given)
ERC Property and Technical Services staff and the contractor for Cross Arthurlie
ERC Council Officials and any other parties involved (excluding Scottish Water)

This FOI excludes Scottish Water negotiations/information referred to in the report.

Electronic copies are acceptable.

Freedom of Information(FOI) Request - ERC/Scottish Water Nurseries additional Payments for connecting to sewers

13/12/2020

To: East Renfrewshire Council

Freedom of Information Request(FOI)

This FOI concerns details contained in the Report by Director of Environment - EARLY LEARNING AND CHILDCARE (Expansion 2020) Dated December 2020, presented to East Renfrewshire Council(ERC) Cabinet Committee on 3 December 2020.

The FOI is specifically concerns Scottish Water(SW) negotiations/information only mentioned within the report,

It particularly concerns the details regarding Scottish Water and

The main new build nurseries situated at the following locations;

•Glenwood, adjacent to Glenwood Family Centre
•Crookfur, at the Parklands pavilion
•Overlee, at the Overlee Park pavilion
•Busby, at Busby Primary School
•Eaglesham, at Eaglesham Primary School
•Cross Arthurlie at Cross Arthurlie Primary School

and specifically Information held regarding

- Additional Scottish Water related drainage/sewerage costs of £576,000 (this includes additional £50,000 contingency sum)

- Details of the Council's engineering consultant (Company/Name?) anticipation that Scottish Water would allow a relaxation of the regulations as was SW’s historical practice and so no allowance was made for this cost.

- Details of why unfortunately, it transpires that SW has toughened its stance in this regard during the design and construction period and lessons have been learned for future projects.

- Details of the lessons learned for future projects

- Details of the Council's request to Scottish Water (SW) to allow a connection to the combined sewer in all five new build nurseries

- and details of why it was initially refused.

- Details of how it has been possible, over an extended period, to negotiate Scottish Water's acceptance in principle to connect to the combined sewer at Crookfur, Eaglesham and Busby on condition that at least an equivalent amount of surface water is removed from the combined sewer from within the same catchment (by means of diverting road gullies to watercourses).

- details of how at least an equivalent amount of surface water will be removed from the combined sewer from within the same catchment

- Details of the means and how/what road gullies will be diverted to watercourses

- Details of these watercourses

- Details regarding the remaining two nurseries at Overlee and Glenwood of how it has been possible to connect the buildings to water courses thereby negating the need to connect to the combined sewer.

- Details of the water courses the buildings will be connected to.

Please provide all information/reports/documents/meeting notes/minutes held regarding above including all correspondence/emails to/from/between -

ERC Council Officials and ERC Council Officials
ERC Council Officials and ERC Councillors
ERC Council Officials and Scottish Water
ERC Council Officials and Council's engineering consultant
ERC Council Officials and legal services(Excluding the actual legal advice given)
ERC Council Officials and any other parties involved (excluding Heron Bros)

Electronic copies are acceptable.

Thanks

Freedom of Information(FOI) Request - Nurseries Build Other Additional Costs

13/12/2020

To: East Renfrewshire Council

Freedom of Information Request(FOI)

This FOI concerns details contained in the Report by Director of Environment - EARLY LEARNING AND CHILDCARE (Expansion 2020) Dated December 2020, presented to East Renfrewshire Council(ERC) Cabinet Committee on 3 December 2020.

The FOI requests information held in regard to the Other Additional Costs referred to in the report at para 26.

It particularly concerns

The main new build nurseries situated at the following locations;

•Glenwood, adjacent to Glenwood Family Centre
•Crookfur, at the Parklands pavilion
•Overlee, at the Overlee Park pavilion
•Busby, at Busby Primary School
•Eaglesham, at Eaglesham Primary School
•Cross Arthurlie at Cross Arthurlie Primary School

and specifically the details and information held regarding the Other Additional Costs referred to in the report at para 26

- Details of the £334,000 additional costs

- Details of the post contract changes for design development and architect instructions over the contract period and associates fees and charges (£233,000).

- Details of payments made and to whom

- Details(including location) and cost of removal of contaminated soil

- Details and cost of delay and subsequent acceleration in connection with Parklands objections, roads and pathway improvements

- Details and cost of re-design of elements within the new pavilions at Overlee and Crookfur to meet both client (Education)and Sport Scotland specifications.

- Details and breakdown of cost for Equipment and services required to operate the facilities to include

- Details and breakdown of £80,000 cost of ICT infrastructure required

- Details of supplier/costs/payments

- Details and breakdown of £29,600 cost of IT hardware

- Details of supplier/costs/payments

- Details and breakdown of £12,400 cost of decants, fittings and equipment

Please provide all information/reports/documents/meeting notes/minutes held regarding above including all correspondence/emails to/from/between -

ERC Council Officials and ERC Council Officials
ERC Council Officials and ERC Councillors
ERC Council Officials and IT Providers/suppliers
ERC Council Officials and legal services(Excluding the actual legal advice given)
ERC Council Officials and any other parties involved with the above additional costs

Electronic copies are acceptable.

Thanks

Published The Extra On Line -

News
People

Nurseries costs in East Renfrewshire criticised

A decision to pay more than £800,000 in compensation to a company building new nurseries in East Renfrewshire has been blasted by opposition councillors.

By Drew Sandelands, Local Democracy Reporter
Tuesday, 22nd December 2020, 11:07 am

Covid-19 restrictions caused work on six early learning facilities – at Glenwood, Crookfur, Overlee, Busby, Eaglesham and Cross Arthurlie – to grind to a halt earlier this year.

Cabinet members recently approved £910,000 for additional costs and £803,000 as a compensation payment to the contractor, Heron Brothers.

But Tory councillor Gordon Wallace said the payment must “stick in the throat” of East Renfrewshire residents and there have been calls for greater protections in future contracts.

“From what I can understand, at the moment as a council, we are about £4.5m behind because of Covid expenditure,” Mr Wallace said.

“This is suggesting we are helping bail out one of our suppliers, one of our contractors, to the tune of about £800,000.

“It really must stick in the throat of many residents, who must think hold on a second, we have got some really tough times ahead next year.

“I hate to think what budget cuts we are going to be looking at next year.”

But council officers said the payment had been made, following legal advice, to avoid a costly dispute.

Andy Cahill, the council’s director of environment, said the costs had been incurred when the contractor had to close the site, such as security and plant, and when work restarted under social distancing restrictions and with reduced staff.

He added if the payment wasn’t made then the company could take the issue to an adjudication, which the council “would almost certainly lose”.

Mr Cahill also said Heron Brothers had “bent over backwards to accommodate the council”.

“If we did go ahead and terminate the contract, it could involve us in a lengthy court battle, it could involve us in additional costs and it could potentially involve the contractors ceasing work on site.”

Cllr Wallace said: “It is almost as if we have a gun to our heads.

The effect these things are going to have on us as an organisation is going be crippling.

“Why are we bailing people out when we’re in such difficulties ourselves?”

He urged the council leader and chief executive to raise the costs with central government, adding: “This is just unbearable, and we are not getting the support from Scottish Government.”

Cllr David Macdonald added: “I just feel we should be much more robust and watertight with financial protections.

“They seem to have far more leverage in terms of dictating or backing out of the terms.”

And Councillor Paul Aitken said: “It’s almost like open cheque book time. It’s a completely outrageous figure.

It’s public money, taxpayers’ money, just being handed across to a contractor.”

But council leader Tony Buchanan said it was “clear” why the costs had been incurred.

“No one anticipated us to have a Covid pandemic and the knock-on effect of that has been extremely costly.

“In terms of raising the cost of the pandemic, yes, that does get raised on a regular basis.”

Almost £27.4m had already been approved for the nurseries, which are being built to help East Renfrewshire Council meet the Scottish Government’s increased early years entitlement of 1140 hours childcare for all eligible children.

Heron Brothers is the contractor for all the nurseries, except Cross Arthurlie.

They had expected to finish work in July before the Covid-19 shutdown.

Around £575,000 was required to pay for sewerage works and was included in additional project costs of £910,000, which was also approved by the cabinet.