THIS REPORT RELATES COUNCIL TO ITEM ON THE AGENDA

RESOURCES COMMITTEE ENVIRONMENTAL SERVICES: HOUSING SERVICES

21/06/2001 NOT EXEMPT

PROPOSED AMENITY CONVERSION TO 17 HOUSES AT MARSHALL CRESCENT, - TENDER ACCEPTANCE

1 PURPOSE

1.1 To seek approval to accept the Tender submitted by Ogilvie Construction for the Proposed Amenity Conversion to 17 houses in Marshall Crescent, Callander, in the amount of £458,278.68 (Four hundred and fifty eight thousand, two hundred and seventy eight pounds and sixty eight pence).

2 SUMMARY

2.1 As part of its strategic objectives Stirling Council is committed to upgrading its existing Amenity Houses to present day standards. To date works have been undertaken to upgrade amenity housing in Braehead, St. Ninians, , , , Fallin and . The proposed works in Callander will be the first improvements to amenity housing in a settlement serving the northern part of the Stirling area.

2.2 Given the relatively high unit cost of the works, £26,957.57, consideration has been given to potential savings from within the contract. It is anticipated that these savings will result in an overall works cost of £423,620.51, £24,918.85 per unit.

2.3 Details of the Tenders received are attached as Appendix A to this Report.

3 RECOMMENDATION(S)

3.1 To agree to accept the Tender submitted by Ogilvie Construction for the proposed Amenity Conversion to 17 houses in Marshall Crescent, Callander.

3.2 To agree to savings being negotiated to the works cost to result in an overall works cost of £423,620.51.

4 CONSIDERATIONS

4.1 Changes to the age profile of Stirling residents is leading to an increased demand for housing which meets the needs of the elderly and infirm. Stirling -2-

Council has 269 amenity houses, 87 of which have been upgraded to present day standards over the last 5 years. This programme of upgrading is scheduled to continue over the next 10 years.

4.2 The 17 properties in Marshall Crescent, Callander are a distinct group of amenity houses providing the main resource of this type of housing for the northern part of Stirling Council’s area. The houses are in high demand.

4.3 The works proposed to the houses include the provision of specially designed kitchens and bathrooms, electrical wiring to barrier free standards, an emergency alarm system, the widening of doors to allow future use by wheelchair dependant tenants, external access ramps, internal redecoration, upgrading of thermal performance, external repairs and the provision of safety features including a sprinkler system.

4.4 Once the works are complete it is anticipated that these houses will be exempt from the Right to Buy under present legislation. The Housing Bill currently under consideration by the Scottish Executive may change the guidelines for properties which may be exempt from the Right to Buy. The implication of any such change will be the subject of a report to a future meeting of the Care Committee.

5 POLICY IMPLICATIONS

5.1 The upgrading of properties to provide houses to present amenity standards accords with the Council’s strategic housing objectives.

6 CONSULTATIONS

6.1 Consultations have been carried out with Civic and Financial Services and the tenants and warden of the affected properties.

7 RESOURCE IMPLICATIONS

7.1 The overall project cost of the proposed works includes the anticipated works cost of £423,620.51 plus professional fees of £61,424.97, a total project cost of £485,045.48, £28,532.09 per unit. This percentage level of fee is presently under review.

7.2 The allocated budget for this area of work, Community Care Conversions, in the 2001-02 financial year is £300,000. In certain circumstances consideration may have been given to phasing the works over two financial years, however, given the already extensive lead in time for this project it is proposed to supplement the main budget head from other areas of the HRA Capital Programme for 2001-02 as follows.

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Community Care Conversions £ 300,000.00 Community Care New Build £ 150,000.00 Energy Efficiency £ 3,445.30 Wiring £ 29,663.52 Reroofing £ 5,989.27 Total £ 489,098.09

This will allow this important project to progress to completion this financial year.

8 BACKGROUND PAPERS

8.1 Tender Report – Appendix A.

8.2 HRA Capital Programme 2001-2004, Resources Committee – 23 November 2000.

Author(s) Name Designation Tel No/Extension

Duncan Mackay Capital Investment Manager 01786 442589

Approved by Name Designation Signature

Valerie Rooney Head of Housing Services

Date Reference

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APPENDIX A STIRLING COUNCIL NON CONFIDENTIAL ______

HRA Capital Programme Tender Report

Contract Details: Proposed Amenity Conversion to (17) Houses at Callander

Contract No: DES0525

Contact Officer: Ian Anderson, Quantity Surveyor

Date: 23 January 2001

Local Member: Councillor Tony Finch

Tender Return Date: 22 January 2001 ______

Contract Finance

2001/2002 2002/03 Total

Contract Works 446,821.71 11,456.97 458,278.68

Professional Fees (14.5%) 64,789.15 1,661.26 66,450.41

Total Cost of Contract 511,610.86 13,118.23 524,729.09

Estimated Loan Charges of £72,940 in a full financial year.

Agreed by Financial Services______

Statement of Tenders Received

Contractor Original Corrected Lowest Tender Tender Tender

Ogilvie Construction £458,278.68 £458,278.68 £458,278.68

J. B. Bennett £468,465.82 £468,540.82

A. L. King £490,309.30 £490,309.30

Stirling Council Contract Services Not Returned

Murdoch Smith Not Returned

The three lowest offers were arithmetically checked and altered as necessary.

The lowest offer received of £458,278.68 is below the probable cost budget of £485.000.00, by £26,721.32 (5.51%) ______

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Comments on Offers Received

Lowest Offer – Ogilvie Construction - £458,278.68

This offer was very competitively priced throughout. No arithmetic errors were identified.

The Contractor has stated that he intends to use the following sub-contractors:

Flooring Work - Fraser Bruce Painterwork - Morton and Sullivan Tiler Work - De Cecco Roofing Work - Rosebank Insulation Work - Clyde Chimney Lining - Cico Furniture Removals - Glen Licensed Waste Carrier -Ogilvie Construction

All appendices have been completed.

The Contractor has confirmed he will require possession of (4) houses at any one time. Alternative accommodation must be arranged for tenants for 4 weeks.

Second Offer – J. B. Bennett - £468,540.82

This offer was also very competitively priced throughout. Several arithmetic errors were discovered which increased the tender sum by £75.00.

The Contractor has stated that he intends to use the following sub-contractors.

Steel Work - J. and T. Group Tiler Work - Easy Tile Ltd Insulation Work - Miller Pattison Furniture Removals - Pickfords Licensed Waste Carrier - J. B. Bennett

All appendices have been completed.

Third Offer – A. L. King Ltd - £490,309.30

This offer was less competitively priced. No arithmetic errors were identified.

The tenderer has not stated which sub contractors he proposes to use.

All appendices have been completed.

Remaining Offers

Murdoch Smith Ltd and Stirling Council Contract Services did not return their tenders. ______

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Proposed Programme and Contract Particulars

Type of Contract: Fixed price contract on Standard Form of Building Contract Local Authorities Edition with approximate Quantities (1998 Edition).

Rate of Liquidated Damages: £700 per week

Performance Bond Requirements: 10% of Contract Sum

Tenders Lodged: 22 January 2001

Tenders Opened By: D Gibb (Civic Services), M. McCaul (Financial Services)

Tenders to be Accepted By: 21 April 2001

Anticipated Date of Possession of Site: Dependent upon Committee Approval

Contract Period 17 weeks plus 4 weeks for trial house

______Housing Services Date

______Civic Services Date

Anna/Val/Committee/85