Agenda item

Capital Projects Lessons Learnt – Progress Update

[To provide an update on progress made in implementing the lessons learnt recommendations made in the reports: Markets Relocation, Wolverhampton Interchange (Train Station) and Civic Halls Refurbishment]

Minutes:

Peter Farrow, Head of Audit gave a brief introduction to the report.  Darren Baker, Civic Halls Refurbishment Programme Director presented the update report on progress made in implementing the lessons learnt recommendations made in the ‘Civic Halls Refurbishment’ report that was presented to the Committee on 25 June 2018.

 

Bob Hide, Independent Advisor Equib explained his role of keeping abreast of what was happening on the project.  Part of that involved working with the Programme Director on the development of a ‘gateway process’; a key assurance mechanism designed to provide an objective view of the ability of the programme to deliver on time and to budget. That would be used at the design stage before moving onto the construction phase of the refurbishment.  He had also facilitated risk workshops in order to validate information on the programme contained in Verto, the Council’s project management system.

 

Ged Lucas, Strategic Director for Place also reported that he was the Senior Responsible Officer (SRO) for the project and held fortnightly meetings with the Programme Director.  There were also monthly Programme Board meetings and progress on the project was reported to quarterly meetings of the Capital Projects Member Reference Group.   By the time gateway process was completed in February/March 2019, the Council we would be in the position to answer more questions, including information on cost estimates.

 

Councillor Harbans Bagri asked for an update on the state of the foundations of the building, the structural steelworks, survey works and the extent of any deterioration to the structure beneath and to the exterior of the building.  The Programme Director reported that the contractors had exposed the foundations and generally they are in a good condition and had not caused any issues to the steelwork.  There were no concerns in that area from the surveys.  Steelwork had been found on the exterior of the building to be corrosive in parts, this was the subject of ongoing investigations.  There were no concerns for the building’s internal steelwork.

 

Councillor Sohail Khan said that at a recent site visit to the Civic Halls building it was reported that a full condition survey had not been undertaken. The Programme Director reported that a condition survey had been undertaken when he came on board the project.  Structural surveys to open up areas had not been undertaken.  The condition of the building was informing the design going forward.

 

Councillor Sohail Khan asked how feasible it was to be talking about a budget for the project when there was uncertainty surrounding the condition of the building. The Programme Director reported that once the survey work was complete the costs would be clear. 

 

Councillor Sohail Khan also asked whether regardless of the building’s condition, would the budget cost for the programme be exceeded. The Programme Director reported that within the budget for the programme there was a contingency to cope and manage the structural repairs.

 

John Humphries, Independent Member asked how the contingency figure was calculated.  The Programme Director explained that the design with the Quantity Surveyors would have modelled the potential costs of the steelwork.  That would have been included as an estimate against that work.  From there we calculate back, dependent upon the survey work ongoing, to arrive at a contingency.  There was also a risk contingency in the project.

 

John Humphries, Independent Member said that he could not gain any confidence until he had figures on the contingency. The Programme Director reported that they budget for an amount of the cost to replace. That work was ongoing.  Before any commitment was made to go forward with the project there was a process that would result in a full report to the Programme Board with a breakdown of the costs to complete the structural work. 

 

Councillor Philip Bateman MBE asked about the budget for the programme.  The Programme Director reported that it was £38.1 million.  Claire Nye, Director of Finance confirmed the figure and reported that she was confident all the expenditure and what was left in the budget had been tracked.

 

Councillor Philip Bateman MBE also asked whether the Programme Director was sure that all the problems regarding asbestos in the building had been resolved and would not become an issue that would push the budget. The Programme Director reported that there had been a history of asbestos.  A lot of asbestos was sprayed into place but was not confined to the area in use, (i.e. there had been over spraying).  Parts of it had to be taken off and cleaned.  In his view even if expert advice was sought, the Council would not be able to obtain a guarantee from them that they would not find some asbestos that had been over sprayed or not recorded.  That was why we review an element in the budget.  The Strategic Director added that with the degree of exposure of the surfaces in the building, it would not be a surprise if you found asbestos.  Every effort had been made to ensure every possible place where asbestos could be had been looked at.

 

Councillor Philip Bateman MBE also asked for the percentage of the budget set aside for asbestos treatment and for the contingency. The Programme Director undertook to provide the information at the next meeting.

 

Mike Ager, Independent Member said that he was concerned what the public was thinking about how this project had been handled. He asked when there would be some positive messages about Civic Halls.  The Strategic Director for Place reported that in March 2019 following the gateway process, it was hoped to have a specification for works, costs; and mechanisms for the future operation of Civic Halls.

 

Councillor Mary Bateman asked about the plans for the provision of food and whether the programme was on track for dealing with the asbestos. The Strategic Director reported that consideration was being given to food and beverage sales to be provided at Civic Halls and for ancillary events. On the point regarding asbestos, the timeframe had not changed, but the gateway process would help to confirm the timescales.

 

Mike Ager, Independent Member commented that he was worried that the risk for the programme had reduced from 16 to 12.  He felt that this was wrong and sent an inaccurate message. The Strategic Director reported that the Corporate Leadership Team took the view that, on the work taking place and advice, and because the Council had control over the project it was no longer categorised as red.

 

Councillor Harbans Bagri asked if the total costs, including maintenance for the building would exceed the £38.1 million. The Director of Finance reported that the Council was within the £38.1 million.  Councillor Harbans Bagri added that in the absence of the final reports from the survey work, he found it difficult to understand how a budget could be packaged for Civic Halls.

 

Returning to the questions about asbestos, Councillor Sohail Khan asked whether the Council was looking to take any action against the initial contractor employed to treat the asbestos at Civic Halls, and would they have any grounds on which to dismiss the Council’s claim. In response, the Committee’s attention was drawn to paragraph 3.6 of the report which covered legal issues. The Programme Director added that an asbestos management programme would be put in place even after the work to the building was complete.  This was a requirement.  It would inform any maintenance contractors who enter the building in future.

 

The Chair informed the officers that the Committee had concerns and would continue to monitor progress with the Civic Halls Refurbishment programme.  He also said that given the update he was not comfortable at this stage with the downgrade of the risk on the project from red to amber. He felt that the risk should have remained as red.  The Programme Director reported that in response to the lessons learnt report concerning control and management of the project, the Council had looked to put in place the right knowledge about the project, the budget to procure the skills to make sure the correct process was followed.  All that knowledge and the costs at this stage were available to make an informed decision about taking the project forward.  That element of control did not previously exist. That was why the risk had reduced to amber.

 

The Chair commented that in the past asbestos has been sprayed in parts of buildings because of its fire resistant properties. He asked what provision had been put in its place and sought assurance that the Council’s capital investment would be protected. The Programme Director reported that as part of the ongoing design there would be a fire strategy for the building. An informed decision would be fed into gateway process on fire safety.

 

Councillor Sohail Khan asked about the provision of sprinklers in the Civic Halls and whether the dancefloor could be saved. The Programme Director reported it was not planned at this stage to install sprinklers but that position could be reviewed in the final design of the project. Regarding the dancefloor, because of the listed building status of the Civic Halls building, the dancefloor was being removed, maintained, cleaned and then reinstalled.

 

Councillor Harbans Bagri asked if there was a deadline for receiving the reports from the surveys. The Programme Director said that it was early in the new year.

 

Resolved:

That the progress made in implementing the lessons learnt recommendations in respect of the Civic Halls Restoration programme that was originally reported to the Audit and Risk Committee on 25 June 2018 be noted.

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