Report of the Deputy Chief Executive and City Treasurer.

This report provides Members with a further update on the progress of the refurbishment and partial restoration of the Town Hall and Albert Square under the Our Town Hall (OTH) project since the last report to Resources and GovernanceScrutiny Committee in July 2021.

The Committee considered a report of the Deputy Chief Executive and City Treasurer which provided an update on the refurbishment and partial restoration of the Town Hall and Albert Square under the Our Town Hall (OTH) project.

Key themes and points in the report included:

·         Increase from 74% to 90% cost surety of the project at the end of June 2022;

·         Acknowledgement of a very challenging period for the construction industry;

·         The Date for completion (25 June 2024) is under review following a series of delay claims from contractors;

·         The project cost plan for construction is reporting within budget, but significant risk pressures have arose in the period since Notice to Proceed (NTP), such as the conflict in Ukraine, energy prices and labour and material shortages;

·         Progress made with Social Value, with a number of the project’s Social Value KPIs already over-delivered;

·         The project has been recognised as an exemplar model of construction industry best practice that is delivering first rate quality, opportunities for the people of Manchester and is respectful of the environmental impact construction can have on neighbouring businesses;

·         Work under way to develop the operating model for the building, including revenue costs and planned occupants; and

·         The Mitigation Action Plan 2021-22 and its focus and outcomes.

Key points and queries that arose from the committee’s discussions included:

·         How baseline targets for local labour and spend were formulated;

·         How the number of apprentices who are Manchester residents could be increased;

·         Commending the social value work of the project;

·         The current volatility of the construction industry, and how confident officers were that the project could overcome these pressures;

·         Plans to showcase the heritage assets within the Town Hall and whether these would be accessible to the public;

·         Increasing publicity of the project and works;

·         Welcoming the partial reopening of Albert Square, and what the ongoing maintenance arrangements would be;

·         Whether the Sculpture Hall inside the Town Hall would be reopened to the public and whether the names of recent Lord Mayors would be incorporated;

·         How confident officers were that no further budget increases would be required;

·         Whether the project was on-track for completion in 2024;

·         Requesting an update on the nesting falcons found in the Town Hall; and

·         Clarification on what was meant by the ‘Monte Carlo simulation’.

The Project Director explained that 6-8 months of market testing and a tender engagement process with two shortlisted bidders had been undertaken to test which contractor could provide best value and meet the key performance indicators (KPIs) for local labour and spend. Members were informed that the KPIs were significantly better than anticipated prior to the procurement process.

In response to a query regarding increasing the number of apprentices who are Manchester residents, it was explained that £28 million-worth of works  were still to be procured and a social value clause is included in every contract with contractors held to account on this. This would help to increase the number of locally-based apprentices working on the Our Town Hall project.

The Project Director acknowledged that the project was halfway to completion and that a number of things were driving volatility but the project was progressively working towards a level of surety and confidence.

Members were advised that an inventory of heritage assets in the Town Hall had been recorded prior to the works commencing and many of these, such as paintings and furniture, were being stored safely or under conservation and restoration and would be returned to the Town Hall upon its reopening. These would be located around the building and in spaces that are accessible on a day-to-day basis. A visitor experience was also planned for the Town Hall to showcase many exhibits and the history of the building.

The Statutory Deputy Leader highlighted that the Town Hall was the civic heart of Manchester and that the Council had a duty to preserve this and ensure it is accessible to residents.

The Project Director acknowledged the opportunity for more publicity of the project but explained that it could be difficult to communicate with certain communities. As the project progressed, planning was underway for the launch and reopening of the Town Hall and this would increase the amount of publicity.

With regards to the maintenance of Albert Square, Members were advised that there are plans for tree-planting at the appropriate time and installation of street furniture and lighting. A maintenance schedule had been devised for hard finishes and drainage and this forms part of the Council’s planning for overall maintenance costs for the Town Hall and Albert Square. No solution had been found to alleviate damage to statues caused by skateboarding but the project team continued to look into this.

Assurances were provided that the only traffic entering the Square would be pre-booked deliveries for businesses and the Town Hall and construction vehicles for events in the Square, such as the Christmas Markets with access and egress controlled.

The Project Director advised the committee that officers have been prudent in identifying potential risks and have assigned financial allowances for contingencies.

It was explained that the Monte Carlo simulation is a computer programme that runs 10,000 simulations ranging from low-probability to absolute certainty for individual risks. This then provides cost figures for completion if the unfactored value of 100% of risk is realised and when factored for a more likely position. The Project Director provided assurances that it would be highly unlikely that 100% of risk would be realised.

The Project Director advised that nesting falcons are a protected species and that all work had ceased upon discovery. Access was secured to prevent future nesting and the building was covered in scaffolding and a wrap.

It was confirmed that the project would be delayed beyond June 2024 but it was not yet known when this would be delayed until. Work had been undertaken to mitigate embedded delays and this had been reduced by three months already with officers hopeful of reducing further.

The Statutory Deputy Leader expressed his thanks to officers for their work on the project.

Decision:

That the Committee

1.    notes the report;

2.    requests that a report on maintenance schedules for public realms be brought to a future meeting; and

3.    requests that a further update on the Our Town Hall project be provided in 12 months.