Termination of Contracts with Carillion Construction Limited - Relating to works at Jack Hunt School Expansion Works, Hampton Garden School and St. Michael's Church School - JAN18/CMDN/88
Decision Maker: Cabinet Member for Education Skills and University
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
With the approval of the Chairman of the Children and Education Scrutiny Committee Urgency, Special Urgency and waiver of call-in procedures have been invoked to suspend the requirement to advertise the decision for 28 days, publish the decision for 5 days prior to publication, and to suspend the 3 day call-in period.
The Cabinet Member’s approval has been obtained in relation to:
· the termination of contracts with Carillion Construction Limited;
· the authorisations to enter into a new contract with an alternative contractor to complete the works at Jack Hunt School
· the authorisations required to enter into any other legal agreements as required
Termination of Contracts with Carillion Construction Limited relating to works at Jack Hunt School Expansion Works, Hampton Garden School and St. Michael's Church School.
Reasons for the decision:
Following the announcement on the 15 January 2018 that the High Court has appointed the Official Receiver for the liquidation of Carillion Construction Limited, the Council has reviewed all contractual arrangements relating to the contractor. In order to repossess the construction site at Jack Hunt School, prevent any health and safety and security breaches and secure assets already paid for under the contract, this notice is seeking agreement that the contract be formally terminated.
The Council is seeking to protect its financial position in relation to the retention funds associated with the Hampton Gardens School and St Michael’s Church School contracts by terminating the contracts.
Alternative options considered:
The following options were considered and rejected:
To do nothing: This option was rejected due to the announcement that the Official Receiver has been appointed for the liquidation of Carillion Construction Limited.
Not to terminate the contracts: This option was rejected due to the announcement that the Official Receiver has been appointed and the Council are part way through construction of new accommodation at Jack Hunt School, the need to secure the site and limit the financial, health and safety and security implications
Not to award contract to a new contractor to complete the works at Jack Hunt School: This option was rejected as the school require the new accommodation to support the expansion of the school by one form of entry. The construction commenced in July 2017 and was on target for completion in August 2018. The accommodation is partially built in a large segregated area of the school site and cannot be left incomplete.
Interests and Nature of Interests Declared:
Jack Hunt School Expansion Contract - MAY16/CMDN/29.
Hampton Gardens Expansion Contract - CMDN KEY/12DEC14/04
St Michael’s Expansion Contract - KEY/06MAR15/07.
Urgent item?: Yes
Publication date: 29/01/2018
Date of decision: 26/01/2018