Bath & North East Somerset Council
Project	Bath Spa Project
Panel	Major Projects & External Bodies Overview & Scrutiny Panel
Meeting Date	18 January 2005
List of attachments to this report: Exempt Annex 1 - Outstanding Issues *Annex 1 is not for publication by virtue of paragraphs 7, 8, 9 and 10 of Part 1 of Schedule 12a of the Local Government Act.

NOVEMBER 2004

PROJECT PROGRESS REPORT TO OVERVIEW AND SCRUTINY PANEL

1.0             INTRODUCTION

1.1 This report is prepared by the Project Leader and forms the basis for reporting project progress at all meetings as follows:

·          Spa Project Board Meeting

·          Projects Programme Board Meeting

·          Major Projects & External Bodies Overview & Scrutiny Panel Meeting

 

1.2 This report covers the period to the end of November 2004.  A verbal update will be provided at the meeting to inform Members of the latest position.

 

1.3 Due to the complex nature and difficult history of this project, many new issues are arising on a frequent basis.  As these are provisionally areas that will or could become the subject of dispute by the Council with other parties, they are reported in a separate appendix, Exempt Annex 1, in order that the Board can be aware of the situation and possible consequences without prejudicing the Council's position.

2.0           PROGRESS

2.1 Mowlem Contract

Pool Re-Painting

2.1.1 The scum channels to the roof top and main pools have been subject to water ingress. Whilst the painting of the main pool is now finished, the roof top pool walls are likely to suffer damage as a result of potential latent defects which need to be resolved by rectification works to the back of the scum channel. Bovitec are therefore presently unable to complete their works.

2.1.2 Instructions already issued to Mowlems on this topic have not been implemented. The design team proposal for these works has been the subject of lengthy exchanges between all parties. However, it is anticipated that a further instruction will be finalised and issued to the Contractor in January 2005.

2.1.3 The extended roof covering at roof pool level has been in place since mid-November and will need to remain until scum channel joint and pool surround waterproofing issues are resolved.

2.1.4 Current Position

Location	Key Activity
Cross Bath	Painting finished. Interface rings being fixed
Hot Bath	Painting finished. Interface rings being fixed
Main Pool	Painting finished. Interface rings being fixed
Roof Pool	Primed with Krautol System. Floor painted. Walls to be painted. Interface rings to be fixed. Work stopped pending waterproofing detail resolution

New Pool fittings

2.1.5 The stainless steel stairs for the main pool are available for delivery to site although installation is not straightforward given pool surround issues.

Re-checking/Commissioning/Pool Filling

2.1.6 Non-completion of the pool painting and fitting of interface rings is preventing the filling and cleaning operations planned for this period, although mechanical commissioning has started.

Steam Room Floor and Pool Surrounds Leaks

2.1.7 Following the issue of an instruction (AI 126) by Grimshaws on 2 November requiring Mowlems to remove the existing Steam Room floor and pool surrounds and reinstate in accordance with the drawings and manufacturers instructions, Mowlems and Grimshaws exchanged correspondence none of which produced any form of agreement.

2.1.8 The Council demanded that Mowlems and Grimshaws should meet and develop an agreed way forward but both parties cancelled arranged meetings.

2.1.9 On 6 December, the Council instructed Grimshaws to withdraw AI 126 and to issue an instruction to Mowlems to take up the Steam Room floor covering in stages for inspection and testing. This instruction was issued on 10 December (AI 131). A Method Statement for the work was agreed between the parties on 21 December and the work commenced that day.

Steam Room Columns

2.1.10 The "stand off" between the Contractor and the Contract Administrator over the validity of the instruction has been overcome and the Steam room columns have now been repainted to a standard that is acceptable to the Architect and to the operator.

Outstanding Work, Snagging, Defects and Dilapidations

2.1.11 There has been very little work on these matters in the month. The latest position on completion of work/snags/defects/dilapidations is as follows:

	October position					November position
	Arch	M&E	Other	TOTAL	%	Arch	M&E	Other	TOT	%
Totals	179	314	67	559	100	185	314	70	569	100
Completed	69	146	17	232	42%	73	146	22	241	42%
Deferred		30		30	5%		30		30	5%
Outstanding	109	138	50	297	53%	112	138	48	298	53%

2.2 Bath & North East Somerset Direct Contracts

2.2.1 Spectrum Lifts - Jordans will refit the disabled pool lifts when the pool stairs are fitted (see para 2.1.4).

2.2.2 Ergonom - The contractor has completed minor defects. Final adjustments to the desk for the recently installed water feature and desk mounted equipment are awaited.

2.2.3 Prospec - Outstanding contracted works are to fit a masking piece in the Cross Bath and fit the roof top towel rack. Also TDC have requested additional towel racks in the LGF pool.

3.0             FINAL ACCOUNT & CLAIMS SETTLEMENT

3.1 The settlement of the final account and claims is a commercially sensitive area and is the subject of dispute by the Council with other parties. An analysis of final account and potential claims items is therefore reported in a separate annex, Exempt Annex 1, in order that the Board can be aware of the situation and possible consequences without prejudicing the Council's position.

3.2 Detailed documentation for two further Extension Of Time (EOT) claims has been submitted by Mowlems in the period and both these claims have been rejected by Grimshaws. Detailed documentation for 30 of the 41 outstanding claim items is still awaited.

 

4.0 COSTS

4.1 The latest forecast outturn cost, before claims, is summarised as follows:

	Forecast Outturn As At October 2004 £000	Forecast Outturn As At November 2004 £000
Project Costs (before risks and claims)	29,122	33,371
Project Risk - specific cost risks	1,130	0
Project Costs incl specific cost risks	30,252	33,371
Project Risk - general risk allowance	1,816	1,900
TOTAL COSTS (before claims)	32,068	35,271
Less: Funded Externally	(13,888)	(13,895)
COUNCIL COSTS (before Claims)	£18,180	21,376
Less: Property at valuation	(1,160)	(1,160)
COUNCIL COSTS excl Property	£17,020	£20,126

4.2 The increase month-on-month is to allow for the potential cost of works and consequential delay costs to the steam room floor and rooftop and main pool surrounds, the costs of a springs boreholes improvement programme and the implementation of an electronic document management system. The Council will pursue third parties to recover the cost of works and delays to the steam room floor and pool surrounds in due course.

4.3 Actual project costs to date are £25,530k of which the Council has expended £16,697k.

 5.0             PROGRAMME

5.1 We have received a revised programme from Mowlem which shows a further delayed completion date. However, this does not take account of the resolution of the Steam Room floor and rooftop and main pool surround issues.

5.2 For the purpose of forecast cost reporting, we have made an allowance for the estimated time and costs of works to the Steam room floor and pool surrounds.

5.3 However, it is still not possible to provide a firm estimate of the Practical Completion date until the key issues in this report are resolved.

6.0             RISK

6.1 The risk register was presented to the Spa Board meeting in October 2004. Detailed discussion of the register had to be postponed from the Spa Board meetings held in November and December. The register will be reviewed at the January Spa Board meeting.

7.0             COUNCIL ISSUES

7.1 The project organisation structure, resource levels and roles and responsibilities have been reviewed as part of the financial planning process.

7.2 The project team, interim managers and advisers, as well as the project strategy are reviewed on a monthly basis with the Director of Major Projects. Any proposed changes to these will be brought forward on a progressive basis prior to the financial year end.