Item 23 - Appendix 2

Page 1

IRED Projects that are Off Track as at Period 5 - 31 August 2024
Service Project
Approved
Project Life
Cost
Revised
Project
Life Cost
Project Life
Variance
Initial
Completion
Date
Revised
Completion
Date
£'000 £'000 £'000
R&N17 Posties Park 6,021        6,252 231 31/03/2022 29/11/2025
Project Name: Posties Park R&N17 Project Manager: Gail McFarlane
Initial Completion End Date: 31/03/2022 Revised End Date: 29/11/2025
How was this project initially funded: Please Detail any additional funding
Council Capital Funding/ Prudential Borrowing n/a
Why is the project classified as off track and what has caused the issues identified?
What action will be taken to rectify the position? Prudential Borrowing
New Completion Date: 29/11/2025
What are the implications on the actions proposed?
Revenue Implications
Virement Implications n/a
Significant challenges including COVID and construction issues.  Project  has now reached practical completion.  Remedial
actions are underway to allow Building Standards to sign off Completion Certificate. We will explore the possibility of recovering
the additional costs and if that is successful then there will be no need for the additional prudential borrowing. Practical
completion will be November 2024 with financial completion due to retentions by November 2025.
Source of Funding
Prudential Borrowing of £231k has a revenue implication of £161,651 over 25 years due
to the incurred interest on the debt. This equates to  £6,462 per annum.
ITEM 23 -
APPENDIX 2