Decision details

Background:

KCC has a significant capital construction programme that has and will be, adversely impacted by COVID-19 pandemic. A review has identified over 30 capital projects, which are at risk due to contractors having stopped work or reported delays due reduced labour and material supply issues. Where provided for in the contractual arrangements contractors are able to claim for relief under the construction projects. There may also be additional costs associated with the implementation of the government’s Procurement Policy Note 02/20 guidance for construction contracts.  In addition to the financial impact, there is a risk that due to the delays without mitigation measures that KCC will be unable to meet its statutory responsibility to deliver sufficient school places in 2020, 2021 and 2022 academic years. The initial assessment has focused on the delivery of school places in September 2020 and forecast financial impact up to December 2020.

Decision:

To agree to;

a)      approve up to £7.89m of additional funds to cover the cost of temporary accommodation solutions, contractor relief payments and contractual claims across the capital construction programme where already approved via key decision or covered by appropriate delegated authority; and

b)      delegate authority to the Director of Infrastructure, in consultation with the Cabinet Member for Finance, Corporate and Traded Services and the Cabinet Member for Education and Skills to finalise the contractual terms and enter into any associated documentation.