Appendix A
Perth and Kinross Council · 21 December 2022
Back to Perth and Kinross Council — 21 December 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
1 | F u l l B u s i n e s s C a s e APPENDIX A Full Business Case PERTH HIGH SCHOOL - REPLACEMENT Title: Perth High School - Replacement Executive Sponsor: Sheena Devlin Version: 3.0 Author: Greg Boland and Stephen Crawford Updated: 09/12/2022
Page 2
2 | F u l l B u s i n e s s C a s e Executive Summary 1. Strategic Case 1.1. Project Objectives Perth and Kinross Council's Learning Estate Strategy outlines the strategy to consider the development and management of the Learning Estate in context of meeting national and local outcomes, planning ahead and providing best value and benefits to our communities. The Learning Estate Strategy aligns with and complements the Council’s recently approved Investment Blueprint and 30-year Investment Plan. The Learning Estate Management Plan (2021-2024) which implements the Learning Estate Strategy was approved by Lifelong Learning Committee in November 2021 and includes the project to replace Perth High School with a new, modern and carbon efficient facility for the delivery of the secondary education curriculum. 1.2. Existing Arrangements Perth High School is the largest secondary school in Perth and Kinross with a capacity of 1546 pupils. The capacity of the new school has been slightly increased to 1600 based on analysis of future roll projections. The school is currently rated ‘C’ ‘Poor’ in terms of both Condition and Suitability. Condition ‘Poor’ is defined as showing major defects and/or not operating adequately. ‘Poor’ in terms of suitability is defined as showing major problems and/or not operating optimally (the school buildings and ground imped the delivery of activities that are needed for children and communities in the school). Condition Summary Building Structure Structural investigations in 2015 identified necessary structural repairs. These were completed to repair and seal the external façade and structure. The building is maintained on an annual structural engineer's visual inspection. Roofs Various essential roof upgrade works, and repairs have been carried out at Perth High School since the replacement was approved by Council. This included re-roofing to the kitchen area and small gym halls. The roofs are being maintained but given the age and general condition of the building it is anticipated that further repairs and maintenance will be required in future.
Page 3
3 | F u l l B u s i n e s s C a s e Building Fabric, Windows, and Doors Perth and Kinross Council have worked in conjunction with Police Scotland to review the security arrangements around the school following a number of recent vandalism attempts. As an outcome, several of external doors were replaced to enhance the security of the building. In general, the building fabric, windows and doors at Perth High School are currently in a satisfactory condition but the building fabric is beyond its design life and in need of significant investment over each year the building remains in operation in order to prevent deterioration to the extent where significant investment is required to bring the building back to an acceptable standard. Mechanical and Electrical Infrastructure The majority of the existing mechanical and electrical infrastructure is now over 50 years old and as such is beyond its original design life. Remedial investment was spent on Perth High School in 2018 to partially replace failing boiler plant and to upgrade some heating circuits serving the CDT, Geography and Library areas of the school which were failing. Further investment will be required to the mechanical services installation from 2023 onwards to replace life expired plant and equipment and to install new heating controls linked to the Council’s Building Management System. This work is essential to ensure Service continuity and to support reduced energy consumption and greater control over heating within the school. Statutory electrical inspection and testing (now on a shorter 3-year inspection schedule) has identified specific areas for investment to the electrical installation in order to ensure the building is maintained in a safe and operational condition. Electrical upgrade works have been carried out to replace existing lighting systems within classrooms, the main concourse, games halls and the assembly hall with new low energy LED lighting and associated controls. There is a requirement to progress with further electrical upgrade works within the main 4-storey block in future years to maintain the electrical installation to a satisfactory standard. Given the age and condition of the electrical installation at Perth High School, the frequency of inspection and testing has been increased in order to identify any electrical related defects at an early stage. This approach has been put in place to reduce potential disruption of Service delivery and ultimately to avoid failure of the electrical infrastructure. Fire and Security A new L1 (designed for the protection of life) fire alarm system was installed alongside improved fire compartmentalisation in accordance with Scottish Fire and Rescue Service advice. The fire alarm system is in working order.
Page 4
4 | F u l l B u s i n e s s C a s e The existing intruder alarm system requires upgrading to protect against increased vandalism and attempted break-ins to the school. These works are being costed at present with the intention of proceeding with the installation upgrade in 2023/24. Statutory inspections and servicing programmes are in place for both Fire and Security systems to highlight any further requirements for repairs and maintenance going forward. Reactive Maintenance Calls to Property Services Helpdesk Over the last 5-year period there has been an average of 284 calls logged on the Property Helpdesk relating to break downs and repair works. These calls relate to a mixture of building, electrical and mechanical repairs of varying levels of priority. Over the last 5 years, there has been a consistent increase in the number of reactive calls, especially related to electrical issues. Reactive repair calls to helpdesk per annum 2018/19 2019/20 2020/21 2021/22 2022/23 260 282 236 (Covid-19) 303 342 YTD, projection 400+ Maintenance and Investment Council Revenue and Capital spend on maintenance over the last 5 years at Perth High School is £3.2m. Based on the spend profile over the last 5-year period and taking into consideration both the current condition of Perth High School and the known areas of investment needed, the estimated annual spend required to maintain Perth High School in a satisfactory condition is estimated to be in the region of £800k - £1m. This investment is needed across the fabric of the building and a range of services. This assumes the building would be kept in operation for a further 5-year period and allows for the anticipated inflationary cost increases. Suitability Summary Perth High School is graded ‘Poor’ in terms of suitability. This is defined as showing major problems and/or not operating optimally (the school buildings and ground impeded the delivery of activities that are needed for children and communities in the school). In the latest questionnaire of staff and pupils, 715 of the learners and 58 staff responded about the current school environment. 65% of learners and 96% of staff said the existing school building “is not fit for purpose” or “needs to be improved greatly”. 77% of staff said noise levels were “poor” or “extremely poor”, 60% said ability to work in groups was “poor” or “extremely poor”. 83% said that student social space was “terrible” or “poor”. 87% said that student study space was “terrible” or “poor”.
Page 5
5 | F u l l B u s i n e s s C a s e The building does not provide the flexible learning spaces which facilitate collaborative learning and inter-disciplinary learning; access to technology; independent learning and the social environment. The school has very poor adjacencies and narrow circulation space. This severely inhibits any refurbishment which would aim to improve the suitability with modern, flexible teaching spaces. A feasibility study was carried out in 2017 through hub East Central Scotland (hubCo) strategic services which established an outline strategy and confirmed that the existing site was, in principle, suitable for a tandem build replacement school. In 2018, Council approved funding for a new school and this has formed the direction of travel since then. 1.3. Business Need The results of surveys carried out in 2015 determined the lifespan of the current Perth High School building at between 10 and 20 years, the risk of failure of our largest secondary school serving nearly 1600 pupils required action by the Council. Due to the poor condition of the building, rating of C, the poor suitability rating of C, the risk of failure of the building and the subsequent complexities of arranging a decant of this magnitude and costs associated with a decant, a replacement building was required and approved by Council. The replacement Perth High School will provide a modern learning environment which will support and enhance the experience of learners and staff. In addition, responding to climate change is a major priority for both the Scottish Government and Perth and Kinross Council and the carbon impact of the Council’s current and future estate is required as a part of the Council’s Investment Blueprint. Perth and Kinross Council has confirmed its commitment to meeting climate targets by giving approval to proceed with Passivhaus construction methods to achieve energy efficiency and quality with the Perth High School Replacement project. 1.4. Scope Analysis of the overall secondary capacity within Perth City was undertaken which determined the need for a like for like replacement of the Perth High School with a 1600 capacity secondary school building on the existing site. A strategic brief for the project was developed in 2019. This was a result of a programme of engagement activities with Council officers, Property Services stakeholders and Perth High School leadership team, students, and staff. A target space budget was produced, and this has been used as the Schedule of Accommodation including bespoke teaching spaces and learning plazas which has generated a design that will provide a flexible, inclusive, and fit-for-purpose teaching environment. This was also subject to robust utilisation analysis ensuring that the scoping of the accommodation requirements is efficient and effective.
Page 6
6 | F u l l B u s i n e s s C a s e In September 2020, as a result of direction in the Interim Climate Change Strategy, options were presented across all major school projects for developing as low carbon projects, Council approved the Investment Blueprint & Capital Budget 20/21 – 28/29 including approval to proceed on the basis of a Passivhaus design at Perth High School. Council committed to the Passivhaus design which will ensure the energy efficiency of the building and comply with actions set out in the Interim Climate Emergency Report and Action Plan. This specification and approach gave opportunity to bid for Scottish Government Learning Estate Improvement Programme Phase 2 funding which was awarded in 2021 which is estimated to bring in £40.6m to the Council. The existing standalone Sports Hall with 4-court hall shall be retained. Demolition of the school building and making good including all external proposals will be carried out once the new building has been completed and handed over. 1.5. Strategic Risks The strategic risks of undertaking this project are: • The cost of the Council’s overall capital programme has risen considerably, and it is now unaffordable to deliver all the approved capital projects within the existing funding available. • There is still a risk of escalating costs given the volatility of the market, high rate of inflation, increased cost of borrowing. This risk is minimised on reaching Financial Close, currently programmed for February 2023. • Cost escalation and potential contractor/ manufacturer insolvency due to construction market conditions and possible predicted recession. • The Design Team do not satisfy the terms of the prestart Planning Conditions which prevent the project being taken forward within the required timescale. The strategic risks of not undertaking this project are: • Existing school not meeting the requirements of modern secondary curriculum delivery with increasing building issues currently being experienced. • Loss of £40.6m Scottish Government Learning Estate Investment Programme (LEIP) Phase 2 funding. • Condition deterioration resulting in failure of fabric of existing building (recommended urgent works have been carried out to stop immediate deterioration, prolong the life of the building with annual surveys and remediation works ongoing in the meantime, but the building is uneconomical to maintain long term). • Poor existing building fabric resulting in continued reliance on fossil fuels and a high energy consumption – particularly relevant as Perth and Kinross Council’s largest property asset. • Reliance on ageing mechanical and electrical systems. • Not reducing the Council’s carbon footprint.
Page 7
7 | F u l l B u s i n e s s C a s e 1.6. Constraints Financial Constraints Further financial commitment of £11.5m is required to build the replacement Perth High School. Operational Constraints It is a necessity that the existing facilities are available to the school and community throughout the life of the project. This necessitates a tandem build approach with the replacement school built on part of the school playing fields while the existing building remains operational. This approach imposes constraints on the design and build including the site available for construction and formation of replacement external PE facilities. Commercial Constraints The market must be able to build a modern fit for purpose 1600 capacity secondary school. The predicted recession in 2023 may impact the availability of resource and materials due to contractor/ manufacturer insolvency. However, hubCo have been appointed as development partner and with Perth and Kinross Council they have appointed through their supply chain a Tier 1 contractor (Robertsons) and key subcontractors to deliver the contract through a design and build contract. hubCo / Robertson continually monitor the financial health of their supply chain to mitigate /manage the risk of supply side failure due to contractor insolvency. 1.7. Dependencies Internal External Area Description of dependency Area Description of dependency Planning legislation Planning permission has been granted and these conditions are being managed by project team. Scottish and Southern Electricity (as Distribution Network Operator) Capacity of local electrical infrastructure. This has been part of the precontract activities and SSE are contracted to provide connections per programme.
Page 8
8 | F u l l B u s i n e s s C a s e Perth High School Operations School operations. The school and project team have a business change plan for the transition to the new school. 1.8. Impact on the Community and Community Co-production It is anticipated that the completed project will have a positive impact on the community with modern facilities. The project will afford opportunities to deliver on the community and asset management strands of the Perth and Kinross Offer. The building is being designed to be as flexible as possible so that it can be used for a range of purposes. This will include development of and support to the current community use but may also include use by the private sector 3rd sector and the public sector. The school already accommodates a team from Skills Development Scotland and has links with the private sector. There will also be opportunities for staff from the Council to use the school for meetings and ‘touch-down’ space, enabling a more sustainable and efficient use of assets. The school is already working with Robertson Construction as a partner in the Developing the Young Workforce programme and it is anticipated that experience and training opportunities will increase when on site. Perth High School’s Sports Hall was created in 2014. The investment provided a purpose-built venue for members of the community and local sports clubs as well as pupils, encouraging participation in sports. This Sports Hall remains as part of the overall campus design. During construction, measurable community benefits may be provided through construction suppliers – the most likely direct benefit will be in encouraging trade apprenticeships and providing skills training to Perth High School. In addition, the agreed procurement route for project via hubCo provides a genuine opportunity to obtain community benefits and to recycle capital spend directly back into the local economy by using local suppliers and labour where possible. 1.9. Sustainability The building will be designed and constructed to meet the Passivhaus standard. This sets a high specification for a low operational energy / sustainable building with a low carbon footprint and a properly ventilated environment conducive to pupil wellbeing and learning. The target is 67kwh/m2/per annum which betters the Council average of 160kwh/m2/per annum, the target being a criterion to enable draw down of LEIP Phase 2 funding from the Scottish Government.
Page 9
9 | F u l l B u s i n e s s C a s e By adopting this approach (with an all-electric heating) in the school with the greatest pupil numbers, Perth and Kinross Council will move towards complying with actions set out in its own Interim Climate Emergency Report and Action Plan and to work towards Scottish Government targets of a 75% reduction in CO2 emissions by 2030 and Net Zero by 2045. Scottish Government LEIP2 funding will be subject to the building meeting enhanced energy efficiency standards in operation - Passivhaus principles meet this standard and support the construction quality aspirations of the project. 1.10. Inclusion and Equality The improved facilities will offer access to Perth High School pupils and staff to a flexible, inclusive state-of-the-art secondary education learning environment. As per section 1.8, the design of the new school building is flexible and inclusive to ensure that appropriate opportunities are available for all areas of the community. 1.11. Resource efficiency The use of an energy efficient design and plant reduction of waste to landfill, reduction of vehicle miles by sourcing locally, use of local labour where possible, consideration of habitat protection during construction can all contribute of an environmentally aware build. 2. Economic Case 2.1 Critical Success Factors • Ensuring that the provision of a modern, flexible, inclusive, and fit-for-purpose school building for the largest secondary cohort of pupils in Perth and Kinross and for the benefit of the local community. • Increasing the energy efficiency of the school. • Maintaining the operation of the school whilst the construction works are ongoing. • Ensuring the completed building in operation is able to access the full drawdown of 25-year LEIP Phase 2 revenue support funding from the Scottish Government. 2.2 Options Appraisal The options considered at the time of the Outline Business Case were: Option Accepted/ Rejected Outcome (a) Do nothing Rejected Did not meet objectives, did not address strategic risk.
Page 10
10 | F u l l B u s i n e s s C a s e 2.3 Recommendation The preferred option was to take forward option (c) and was approved by Council in 2018. Recent years has seen dramatic changes to the financial landscape. These changes have been caused by the COVID-19 pandemic, Brexit and more recently the war in Ukraine and have necessitated a re-assessment of the Council’s Corporate Priorities. While the replacement of Perth High School almost fully meets the following Corporate Plan Priorities: • Tackling poverty • Tackling climate change and supporting sustainable places • Enabling our children and young people to achieve their full potential • Supporting and promoting physical and mental wellbeing It is also appropriate to review the project against the original Critical Success Factors: 1. Ensuring that the provision of a modern, flexible, inclusive, and fit-for-purpose school building for the largest secondary cohort of pupils in Perth and Kinross and for the benefit of the local community. The design of the new Perth High School will ensure this Critical Success Factor is achieved. 2. Increasing the energy efficiency of the school. The Passivhaus construction will ensure the building is significantly more energy efficient than the current building therefore meeting the terms of this Critical Success Factor. (b) Refurbish Rejected There were restrictions with this option in terms of meeting current building standards in a cost-effective manner. This option was not considered a reasonable option due to the lack of decant facilities for a school of 1600 pupils during refurbishment and lifespan of the critical structural elements of the building. This was not considered value for money. In addition, this did not address the suitability which cannot be sufficiently improved. (c) New build secondary school Accepted This would address condition and suitability of the current Perth High School and provide the opportunity to enhance the learning environment without the cost of decant facilities.
Page 11
11 | F u l l B u s i n e s s C a s e 3. Maintaining the operation of the school whilst the construction works are ongoing. The proposals and programme are for a tandem build which meets the terms of this Critical Success Factor. 4. Ensuring the completed building in operation is able to access the full drawdown of 25-year LEIP Phase 2 revenue support funding from the Scottish Government. The building must be completed before compliance against the terms of the LEIP Phase 2 funding can be determined. This Critical Success Factor cannot be assessed until the construction of the building is completed. However, the Passivhaus Institute have advised they believe there is a pathway for the design to achieve Passivhaus accreditation. Passivhaus accreditation will meet the terms of this Critical Success Factor. With all the information available, the preferred option to replace Perth High School continues to be the recommendation based on the Full Business Case drivers of Condition and Suitability, and the subsequent successful grant award of £40.6m from the Scottish Government. 2.4 Mandate for Investment The replacement of Perth High School has remained a priority for Perth and Kinross Council since the initial approval of full capital funding on 20 June 2018 based on the drivers of Condition and Suitability. The subsequent successful grant award of £40.6m (index linked, drawn down over 25 years) supports the Perth and Kinross Council investment. Addressing climate change is one of the agreed Council corporate priorities. This large investment contributes to this by being designed to Passivhaus standards. The following table reflects the budget approvals at Council: Date Link to Papers Decision/ Narrative Approved Budget 22 February/ 19 April 2017 Minutes Council Mtg 22 Feb 2017 /Report 17/153 Approval of additional capital expenditure proposals including significant investment in Perth High School (£10M) £10m 20 June 2018 Report No. 18/212 Approval of Composite Capital Budget 2018- 2028 including funding for 1600 capacity school replacement by re- allocation of budgeted expenditure from projects formerly included in the Capital programme. £50m
Page 12
12 | F u l l B u s i n e s s C a s e 30 September 2020 Report No. 20/175 Appendix 3 Approval of Investment Blueprint & Capital Budget 20/21 – 28/29 including approval to proceed on the basis of a Passivhaus design with the budget subsequently uplifted. £58.3m 23 February 2022 Report No. 22/36 Appendix 1 Approval of Capital Budget 2022/23 - 2027/28 including increased project budget as a consequence of larger than anticipated inflation within the construction sector. £68.7m The following table reflects the budget increase requested: Date Link to Papers Decision/ Narrative Proposed Increased Budget 21 December 2022 Tbc Approval to fund increased costs and increase the Project Budget by £11.5m £80.2m 3. Commercial Case 3.1 Procurement Strategy The strategy is for replacement as a tandem build through the hubCo Design and Build delivery model. The New Project Request was submitted to hubCo, and Tier 1 and Tier 2 contractors were appointed in 2019. The established contract strategy with use of hubCo is fully compliant with national procurement strategies and is promoted by the Scottish Government and the Scottish Futures Trust (SFT). Perth and Kinross Council and hubCo are parties to the Territory Partnering Agreement which establishes a long-term strategic partnership. 3.2 Service Requirements The Project Agreement between Perth & Kinross Council and hubCo is administered by an Authority Representative (AR) from Property Services. Project Management resource is committed and technical support (M&E, architectural, Energy Team etc) is being provided. Project specific Authority Construction Requirements (ACRs) have been developed. 3.3 Charging Mechanism The Project Agreement is administered utilising the Scottish Futures Trust’s standard form Design and Build Development Agreement (DBDA) including standard construction payment mechanisms such as interim valuations, applications for payment, interim certificates, deduction of retentions and payment.
Page 13
13 | F u l l B u s i n e s s C a s e The contract is a fixed price contract based on a firm design and specification. Once Financial Close is reached there are limited contractor opportunities to seek additional monies, especially in a new build project. Experience to date with this form of contract has been successful. Payment is made direct to hubCo for works properly executed monthly and, as relevant, the value of any goods and materials delivered to site. 3.4 Risk Transfer The contract sum agreed at Financial Close (FC) shall be a lump sum fixed price to be paid to hubCo for carrying out the full obligations agreed within the Project Agreement namely the design and construction of the replacement Perth High School. 3.5 Key Contractual Arrangements Key contractual arrangements as found within standard forms of building contract such as provisions for quality assurance, change control, transfer of intellectual property rights, delay events, making good defects, liquidated damages and dispute resolution are contained within the Project Agreement. 3.6 Personnel Implications The current staff within the existing Perth High School will transfer to the new school. 3.7 Accountancy Treatment The completed Perth High School will be a fixed asset sitting within the Council’s balance sheet. Recognition expenditure on the acquisition, creation or enhancement of Property, Plant and Equipment is capitalised on an accrual’s basis, provided that it is probable that the future economic benefits or service potential associated with the item will flow to the Council and the cost of the item can be measured reliably. 4. Financial Case 4.1 Capital and Revenue Requirements The current capital spend on Stage 1 and Stage 2 project development so far has been £4.3m. The estimated total project cost is currently projected to be in the region of £80.2m. It should be noted that this is the current estimated capital cost prior to Financial Close and, given current volatility with the construction sector, this value should be treated as a best estimate.
Page 14
14 | F u l l B u s i n e s s C a s e It is intended if the additional funding is secured that officers (via The Head of Legal Services) enter into a Letter of Intent to secure fixed prices with hubCo to elements of the build that mitigate against additional cost escalation at Financial close (expected February 2023). The revenue costs of operating a similar new building will be assessed in comparison to the existing building to establish if there are any increased revenue implications. Pupil numbers will remain similar so current staffing will be maintained. During the construction period there will be a reduction in external PE facilities available to the school and alternative facilities will require to provided. It is likely that this will introduce a revenue pressure until the completion of the Phase 2 construction (externals). However, a budget has been set aside for this. The Business Change Officer is currently assessing the curriculum requirements with the school. 4.2 Net Effect on Prices It is not anticipated that prices Perth and Kinross Council charge for their services will change as a direct result of this project. 4.3 Impact on Balance Sheet The balance sheet value will be in accordance with the value of the new asset once completed. 4.4 Impact on Revenue Budget The costs for this building are estimated and likely to be similar (subject to inflation) but with £40.6m funding to be received from the Scottish Governments LEIP Phase 2 grant award, would offset any revenue pressure. Any future revenue implications beyond this that are identified would be included as an expenditure pressure through the revenue budget process. 4.5 Funding Mechanisms and Affordability The project will be funded as part of Perth and Kinross Council’s approved Capital Budget. A bid made to the Scottish Government for LEIP Phase 2 for funding of 50% toward the project was successful and will be provided over a 25-year period based on the Council meeting specified targets.
Page 15
15 | F u l l B u s i n e s s C a s e 5. Management Case 5.1 Programme and Project Management Methodology The project has full governance and is resourced in accordance with the Perth and Kinross Council’s project management toolkit. Project Structure/ Roles & Responsibilities: Senior Responsible Officer: Greg Boland – Head of ECS Business & Resources Executive Sponsor: Sheena Devlin – Executive Director Education & Children’s Services Project Manager: Mairi Milne – ECS Team Leader Resource Management (Project Support) Authority Representative: John Fyfe – Principal Officer (Project Management) – CDS – Projects & Operational Support Project Board: Greg Boland – Head of ECS Business & Resources Brian Reid – ECS Service Manager – Resource Management Jim Cockburn – ECS Finance & Governance Manager Stephen Crawford – Head of Property Services – CDS Alison O’Brien – Manager CDS – Accountancy Norman Ballantine – Capital Programme Manager – Communities Stewart MacKenzie – Head of Finance – CDS Alan Fraser – Education and Business Change Officer (Learning Estate) David Macluskey – Service Manager (Secondary) Education ECS 5.2 Programme and Project Management Plans In line with approved processes and managed by the Project Board. 5.3 Use of Specialist Advisers Legal specialists have been outsourced; all other consultants are procured through hubCo. 5.4 Change and Contract Management Arrangements Robust change control processes are instigated and maintained by the Project Board and hubCo to ensure that change management is in line with approved processes.
Page 16
16 | F u l l B u s i n e s s C a s e 5.5 Benefits Realisation Benefit Measurement Timescale Improvement of educational facilities to provide a flexible, inclusive, and modern secondary school building appropriate for delivery of the curriculum and for the use of the local community. Design that satisfies all scope requirements as specified in Strategic Brief and associated Space Budget, moving the school suitability rating from C to A Proposals reviewed throughout Stage 1 and 2 project development to ensure delivery of identified scope. Building to be high quality, air-tight, well insulated, properly ventilated, and efficiently serviced. Suitable design and construction methodology used to ensure delivery of required building standards and performance as specified in the Authority’s Construction Requirements, moving the school condition rating from C to A Passivhaus designers/ assessors used throughout design and construction phases and relevant certification on completion. Reduction in Perth and Kinross Council’s carbon footprint. Annual CO2 reduced (estimated from 473 to 249 tonnes) Modelling carried out to demonstrate design delivers required reduction and Year 1 in use analysis to be carried out. 5.6 Risk Management The risk profile is managed through reporting which has been developed into a contract risk register with regular risk meetings and risk mitigation procedures and reported to the Project Board for good governance. Early strategic services provided by hubCo during Stage 1 involved extensive site investigations which aim to reduce risks to the project. 5.7 Post Implementation Evaluation Arrangements Post project evaluation at 6 months, 12 months and internal lesson learned meetings updating Authority Change Requirements will be undertaken by the Project Board.
Page 17
17 | F u l l B u s i n e s s C a s e 5.8 Contingency Arrangements Contingency arrangements are imbedded in the hubCo delivery process and managed through the Project Manager and Project Board. Financial Contingency As required by all capital projects within Perth and Kinross Council a financial contingency will be held by the client. Within the current total project cost there is a 5% contingency held for any unforeseen issues not included in the construction contract, for example dark ground under the existing school. Contingency will also be utilised for any changes requested by the client during construction. Any claims against this contingency will be assessed by the Project Manager and if out with set approval limits will be referred to the Project Board and Senior Responsible Officer for approval. Operational Contingency Should the new building not be completed on programme the existing school will remain active with the appropriate ongoing maintenance being undertaken.