The Bridge – Stop Press September 2005
This update on our Project is a summary of the report presented to the Kirk Session and Congregational Board.
Tenders have been received for both the demolition and the main construction contracts. These are well over our budget (see below). This is disappointing. The committee has been looking at savings, but cannot bring the scheme costs within the target. It would appear that the only way to complete the original Project is to phase the work. Phase 1 could consist of the alterations to the church, the construction of the link and alterations to the new hall. Phase 2 could be the construction of the linked new hall and meeting room at the rear of the Church if and when the additional funds became available.
It would appear that we could carry out Phase 1 within the current budget, negotiating costs for the revised proposals with the preferred contractor. If we can reach an agreement then work could start this autumn. However, before a final decision is made Church Members will be consulted.
The following is a summary of the progress to date.
Professional Team
The professional team consists of:-
|
CRGP |
Architects/Planning Supervisors |
|
Armour |
Quantity Surveyors |
|
McLay Collier |
Consulting Engineers |
|
|
Mechanical and Electrical Consulting Engineers |
Contracts of Engagement/Letters of Appointment
We are in contact with the Church of Scotland legal department to get guidance on the contracts of engagement for the professional team.
Planning consent has been secured. (Note that listed building consent is not required for the works planned)
Building and Demolition Warrants
A building warrant application has been submitted. All questions raised by Building Control, Edinburgh City Council have been answered by the appropriate members of the professional team. No difficulties are envisaged and warrants are expected soon.
Demolition Contract
Three contractors were invited to tender for the demolition of the old hall.
Following a review and negotiations, Reigart Contracts Limited are the preferred contractor at £8,000 plus VAT.
Site and Drainage Investigations
A ground investigation was undertaken to establish the conditions on site to enable recommendations to be made about the design of the foundations and retaining structures. The principal outcome of the report is that the depth of the foundations has been increased and this has cost implications.
The drainage investigation (CCTV survey) was carried out to determine the condition of the old culvert to the South of the Church. This confirmed that it was generally in good condition. Some debris and roots were encountered but no major obstructions. Correspondence with Scottish Water and Edinburgh City Council concluded that we can build over it, constructing new manholes.
Asbestos Survey/Report
The March 2005 survey reported that there is no immediate evidence of asbestos in areas of the existing buildings to be altered or demolished.
Costings
In January 2005, the Quantity Surveyor's estimated costings were £496,213. These notional costings were based on Architect's drawings. These costings excluded:-
new seating, Audio-Visual equipment with attendant works, any work to existing main entrance to Church, any repairs to existing building except where disturbed by work, VAT on works, and Professional Fees.
In May 2005, prior to tender, Quantity Surveyor's costings were £617,148. These notional costings were based on billing drawings (detailed specification drawings prepared by Architect/Engineers). These costings were subject to the exclusions as detailed above. Some of the additional costs can be attributed to the following items that had been added in as the project developed :
|
i) |
Sub-structure |
depth of foundations |
£10,000 |
|
ii) |
Steelwork |
Introduction of steelwork |
£15,000 |
|
iii) |
Roof |
Amended to zinc. |
£10,000 |
|
iv) |
External Walls |
Zinc panels. |
£5,000 |
|
v) |
Replacement of Drains |
£12,000 |
|
|
vi) |
Stone cleaning and pointing of Church Walls |
£7,000 |
|
|
vii) |
Statutory and public utility charges |
£15,000 |
|
|
viii) |
Additional Preliminaries |
£10,000 |
|
|
Total of extras identified |
£84,000 |
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VAT
The situation regarding VAT is not yet clear and we will now seek professional advice directly through appointing a VAT consultant. The cost of this will be greatly outweighed by the benefits and may speed the process. Again we need to get agreement with the HM Revenue & Customs before we place contracts or start work. This is being dealt with as a matter of urgency.
Tender
The tenders were issued to six contractors. Four valid tenders were received. There were three tenders very competitively priced, all within a range of 2.7%
The lowest tender was received from R-Mac Building Services Ltd. Their price is £846,967.07. (Note this figure does not include VAT.)
Current Position on Contract Price
The tender figure, only for the construction costs, is well over the budget for the project. It does not cover the excluded items noted in ‘Costings’ above. The Buildings and Identity Committee has reviewed the position on the whole project. The following options have been considered.
(1) Cost savings review: A comprehensive cost saving exercise was carried out. Savings of some £240,000 (due to numerous items) could be achieved. This would reduce the price to £610,000/£620,000 inclusive of demolition and some essential repairs to the Church Hall. Note however, the preferred contractor would have to agree a revised contract price.
(2) Phased Development: It would appear that within our present budget, we could press on with the main part of the works, i.e. alterations to the church to form a flexible worship and activity space, and to the new hall, the creation of the link building and new entrance to the church. (Phase 1). When additional funds became available it would be possible to carry out Phase 2. (The construction of a new hall and meeting rooms to the rear.)
Suggested Way Forward
The Buildings and Identity Committee has examined options and presented the following to the Kirk Session and Congregational Board for consideration: the Project could be built in two phases. A preliminary cost estimate based on revised tender prices indicates that Phase 1 could be completed for a cost of £500,000, excluding the items noted in ‘Costings’.
Before any progress can be made with this the following is required :
1.Discuss revised proposals with the preferred contractor. Confirm he is still willing to carry out a smaller package of works.
2.Negotiate a revised price for the works.
3.Get clear guidance on the VAT situation.
4.Establish the full cost of professional fees.
Following this exercise, the Kirk Session and Congregational Board will decide what to recommend to Church members, who will be consulted before contracts are placed and work commences.
Phase 2 would require additional funds to be raised and the costs would be greater, due to inflation and other material factors, than if the entire development was concluded in one phase. No commitment to Phase 2 would be made at this time.
Summary
The benefits from the suggested approach can be summarised as follows:
i) While it would not provide all the accommodation that may be required, the accommodation which would be available would achieve many of the stipulated objectives set for the Project.
ii) Subject to an early award of the contract, we could have the work on this phase completed early next year.
iii) By pressing ahead at this stage, as proposed, we should avoid the significant and material impact of inflation on the majority of the costs for this phase, which would otherwise apply through further delays. (It should be noted that there will be additional costs by proceeding on a phased basis – See above)
John Barkley
Douglas McBeth
Buildings and Identity Committee.