Call In Report for Cabinet - Ardrossan Campus Project Update (Final)

North Ayrshire Council · 19 June 2026
Back to Cabinet — 19 June 2026 and its agenda

Text extracted from the council's PDF. Layout and reading order may differ from the original.

Original council PDF · Download plain text

Page 1

NORTH AYRSHIRE COUNCIL 
19 June 2026 
Cabinet 
Title:    Ardrossan Campus Project Update 
Purpose:  To inform Cabinet of the decision of the Audit & Scrutiny
Committee following a call-in of the Cabinet decision of 2 June
2026 which noted the current progress of the Ardrossan Campus
project, including current projections in relation to costs and
programme. 
Recommendation:  That Cabinet considers the decision and recommendation from
the Audit & Scrutiny Committee and determines: 
(a) whether to accept the recommendation of the Audit &
Scrutiny Committee and amend its original decision
accordingly; or 
(b) if it does not accept the recommendation, to refer the matter
to Council for final determination. 
1. Executive Summary 
1.1 At its meeting on 2 June 2026, Cabinet considered a report and noted the current
progress of the Ardrossan Campus project, including current projections in relation to
costs and programme. 
1.2 Subsequent to the decision taken by Cabinet to note the update, a call-in request was
received from Councillors Stalker, Murdoch and Stephen which was referred to the
Audit & Scrutiny Committee for consideration. 
1.3 At its meeting on 15 June 2026, the Audit and Scrutiny Committee agreed to accept
the call-in request and referred the matter back to Cabinet for further consideration
with the recommendation that a future update report is brought to Council in 6 months. 
1.4 Accordingly, Cabinet is asked to consider the decision and recommendation from the
Audit & Scrutiny Committee and determine: 
a) whether to accept the recommendation of the Audit & Scrutiny Committee and
amend its original decision accordingly; or 
b) if it does not accept the recommendation, to refer the matter to Council for final
determination.

Page 2

2. Background
2.1 The Cabinet, at its meeting on 2 June 2026, considered a report on the current
progress of the Ardrossan Campus project, including current projections in relation to
costs and programme. A copy of the original report presented to Cabinet on 2 June
2026 is attached as Appendix 1.
2.2 Subsequently, a call-in request was received in terms of the call-in procedure set out
in the Council’s Standing Orders. The report to the Audit & Scrutiny Committee in
relation to the call-in is attached at Appendix 2.
2.3 The Audit & Scrutiny Committee at its meeting on 15 June 2026 heard from Councillor
Murdoch in relation to the call-in. The Committee also heard from Councillor Collier,
Cabinet Member for Green Environment and Economy, in response to the call-in. The
Executive Director (Education) and the Head of Service (Sustainability, Transport &
Corporate Property) were also present to provide information on the Cabinet report
and on issues raised by the call-in received. The Committee subsequently agreed to
accept the call-in and referred the matter back to Cabinet for further consideration with
the recommendation that a future update on the progress of the Project is brought to
Council in 6 months. The Minutes of the meeting of the Audit & Scrutiny Committee
are attached at Appendix 3.
3. Proposals
3.1 Cabinet is recommended to consider the decision and recommendation from the Audit
& Scrutiny Committee and determine:
a) whether to accept the recommendation of the Audit & Scrutiny Committee and
amend its original decision accordingly; or
b) if it does not accept the recommendation, to refer the matter to Council for final
determination.
4. Implications/Socio-economic Duty
Financial
4.1 The financial implications are outlined in the Cabinet report attached at Appendix 1.
Human Resources
4.2 The human resource implications are outlined in the Cabinet report attached at
Appendix 1.
Legal
4.3 The legal implications are outlined in the Cabinet report attached at Appendix 1.
Equality/Socio-economic
4.4 The equality/social-economic implications are outlined in the Cabinet report attached
at Appendix 1.

Page 3

Climate Change and Carbon 
4.5 The climate change and carbon implications are outlined in the Cabinet report
attached at Appendix 1. 
Key Priorities 
4.6 The key priorities are outlined in the Cabinet report attached at Appendix 1. 
Community Wealth Building 
4.7 The community wealth building implications are outlined in the Cabinet report attached
at Appendix 1. 
Islands Communities Impact Assessment (ICIA) 
4.8 Any ICIA implications are outlined in the Cabinet report attached at Appendix 1. 
United Nations Rights of the Child (UNCRC) 
4.9 Any UNCRC implications are outlined in the Cabinet report attached at Appendix 1. 
Consumer Duty 
4.10 Any consumer duty implications are outlined in the Cabinet report attached at
Appendix 1. 
5. Consultation 
5.1 None concerning this report. 
Aileen Craig
Head of Service (Democratic) 
For further information please contact Craig Stewart, Committee Services Officer, on 
01294 324130 or by email, craigstewart@north-ayrshire.gov.uk 
Background Papers
N/A

Page 4

NORTH AYRSHIRE COUNCIL
2 June 2026
Cabinet
Title: Ardrossan Campus – Project Update
Purpose: To provide Cabinet with an update on the current progress of
the Ardrossan Campus project, including current projections in
relation to costs and programme.
Recommendation: Cabinet is asked to:
1. Note the content of this report, including the current progress
of work on site.
2. Note the revised project completion date of 26 May 2028,
with anticipated occupation from August 2028.
3. Note the additional estimated cost of £9.97 million (8.74%)
associated with addressing the contamination will be met
from approved capital flexibility funding.
1. Executive Summary
1.1 The Ardrossan Coastal Quarter programme represents a transformational vision for
the area which includes the provision of new housing and commercial uses, providing
ambitious transformational regeneration of a vacant and derelict site on land within
one of North Ayrshire’s most deprived communities. A key component of this vision is
a new educational and community campus. 
1.2 The contract to construct the new Ardrossan Campus Project commenced on site in
July 2025, with the first stage focusing on the excavation of foundations and the
swimming pool tank. In September 2025, asbestos and hydrocarbon contamination
was identified during construction. Appropriate Safe Systems of Work were then
implemented by the main contractor (Morgan Sindall), with an independent review
confirming these measures to be proportionate and compliant.
1.3 The contractual and programme implications were subsequently assessed by our cost
consultant, resulting in an additional cost of £9.97 million (8.74%) and an extension of
the completion date to 26 May 2028.
1.4 The overall Campus project budget will therefore increase to £124,558,600, with the
additional funding to be met from the Council’s capital flexibility fund approved in
February 2026.
APPENDIX 1

Page 5

1.5 An independent external review of the enabling works has been commissioned, with
an initial assessment received and currently under consideration. 
1.6 The safe systems of work which have been required since encountering the
contamination have now ceased. Works are progressing unhindered by these
additional measures and the project has now reached a significant milestone on the
construction process as steel work is now rapidly being erected on-site. 
1.7 Stakeholder engagement will now be undertaken to communicate the revised delivery
arrangements and support appropriate mitigation of the impacts arising from the
extended programme. 
2. Background 
2.1 Two separate contracts relating to the delivery of the Ardrossan Coastal Quarter
were undertaken commencing in June 2023 and January 2024 respectively. The
purpose of these projects was to deliver a new revetment (Sea-Wall) coastal
defence, an extension of the coastal path, remediate contamination and to install
site-wide infrastructure to enable future development. 
2.2 Remediation strategy involved treating contaminated soil on location, removing
hydrocarbons, and reusing suitable treated material in the works. The strategy also
included installing 600mm stone cap across the site to provide a protective barrier as
all contamination would not be removed. The remediation was independently
monitored and verified to ensure it met all required standards. 
2.3 Subsequent to that, construction work on the new Ardrossan Campus commenced in
July 2025, with initial works focusing on the formation of foundations and excavation
of the swimming pool. 
2.4 As works progressed on site, an in accordance with the agreed methodology for
progressing the works, testing of excavated materials continued in order to ensure
all health and safety standards were maintained. In September 2025, asbestos and
hydrocarbon contamination was identified as a result of that testing. Appropriate
Safe Systems of Work were immediately implemented by the main contractor
(Morgan Sindall), with an independent review confirming these measures to be
proportionate and compliant
Programme Development
2.5 The Ardrossan Coastal Quarter site was selected in 2018-2019 as the preferred
location for the new Campus, reflecting its capacity, regeneration potential, and
alignment with the Council’s Local Development Plan priorities. The wider vision
includes residential and commercial development to support regeneration and align
with the Local Development Plan.
2.6 The “Ardrossan North Shore Development Framework”, prepared by external
consultants (Stallan Brand), was approved in April 2021 and set the strategic context
for redevelopment. Subsequently, In June 2021, the Council agreed remediation and

Page 6

site infrastructure works to achieve economies of scale and improve the site’s
attractiveness for future investment.
2.7 In the prevailing market conditions, a single contract for the complete programme of
work was not considered the most deliverable option, and the chosen approach
provided a practical route to securing progress. Market feedback indicated that
including the Campus within those packages would have been less attractive to
bidders. This was reaffirmed when the subsequent Campus tender process only
attracted two bids.
2.8 Following market engagement on the enabling works tender issued in November
2021, the procurement approach was refined in response to no compliant bids being
received through the original process, with the works restructured into two packages
and successfully retendered in 2023 and 2024.
2.9 Due to the phasing of the separate projects, the enabling works were more
advanced than the Campus design, and the revetment had to be completed first. In
the context of a volatile market, maintaining separate elements of delivery helped
support programme progress and provided a more manageable basis for pricing.
2.10 It should be noted that the enabling works, as separate contracts with different
contractors, were not the first stage of the construction contract to deliver the
Campus. These were discrete pieces of work, intended to enable development
across the wider Ardrossan Coastal Quarter site. Although the advance enabling and
remediation works provided an appropriate and proactive route to delivery, the use
of three separate contracts meant that interface risks were recorded and remained
an inherent feature of the overall programme.
2.11 The Campus design was successfully finalised while the advance works were
progressing, with the projects coordinated to support overall delivery. Although the
advance works project was not intended to deliver Campus construction works, this
approach helped maintain progress, while market feedback confirmed that separate
contractual responsibilities remained the more practical route.
2.12 Recognising the challenges being experienced in delivering the wider programme of
works, with a focus on ensuring the Campus could be delivered as soon as possible,
a review was conducted with the support of external consultants (Ironside Farrar) in
February 2024. This confirmed the inherent risks of brownfield remediation, buried
structures, coastal conditions and sequential working, with further contamination
assessed at that stage as an amber risk.
2.13 As Morgan Sindall had no control over the enabling works contract, it confirmed prior
to Financial Close that it would not accept contamination risk within the Campus
contract, the contract therefore acknowledged this risk and relied on the contingency
allocation to address any arising issues.
2.14 A report was submitted to Council on 26 June 25, confirming the revised budget and
programme for the project. A number of key remaining risks were also highlighted in
the report. Included within those was the potential to discover contaminated material

Page 7

in the deep excavations below the remediated level, and the impact this could have
on costs and programme.
2.15 To estimate the potential cost, prior to entering the construction contract the
assessment associated with this risk estimated that around 13,280m³ of excavation
would extend below the 3.5m remediation depth. Utilising market rates for disposal,
a potential worst case disposal exposure of £6.64m was assessed. Because overlap
between known contamination and deep excavations appeared limited, an overall £5
million contingency was considered realistic and included within the project budget.
2.16 The Scottish Futures Trust (SFT) have worked in partnership with the Council
throughout the development phases of the project, including providing financial
support thought the Scottish Government’s Learning Estate Investment Programme.
The project allocation was increased to reflect the challenging conditions around the
delivery of the project.
2.17 Verification reports in respect of the enabling works contract were received,
satisfying the Planning Conditions required to allow works to commence on site.
Campus Construction Phase
2.18 In September 2025, asbestos and hydrocarbon contamination was encountered
during deep excavations. Elected Members and the local community were
proactively informed shortly thereafter.
2.19 As a result of this, and to ensure works could progress in a safe manner, Morgan
Sindall introduced Safe Systems of Work, including exclusion zones and specialist
controls.
2.20 An external specialist engineering advisor independently reviewed the Safe Systems
of Work on the Council’s behalf and found them to be both proportionate and
compliant.
2.21 Our cost consultants, Atkins Realis, have assessed the contractual impact of the
appropriate treatment of the contaminants via the safe system of work as an
additional £9.97 million. The programme impact has also resulted in an extension of
time to the contract to 26 May 2028. This has been formally confirmed through the
contractual change control process.
2.22 This figure represents a significant betterment than the original proposal by the
contractor following robust review and challenge by the Campus project team and
external advisors.
2.23 Addressing the contamination issue will result in the Campus project budget rising to
£124,558,600. This increase will be addressed through the Council’s capital flexibility
fund approved by Council in February 2026.
2.24 A report by independent specialist engineers has been commissioned, with input
from the appropriate consultant teams, to ensure the reasons for the current issues
are properly understood. An initial assessment has been provided and is being
reviewed to determine the next steps.

Page 8

2.25 Separate delivery of the enabling works and the Campus has also required ongoing
management of wider interface risks; however, these matters are being actively
managed through cross-service coordination to ensure that appropriate mitigation
measures are identified and allocated. 
2.26 Under the NEC4 contract, the Council’s exposure to additional cost arising from
systemic supply chain issues arising from the current conflict in the Middle East is
limited, with broader liability arising mainly where contract terms or future legislative
changes require it.
2.27 As the cost and programme implications arising from encountering contamination are
now understood, the overall construction programme has been updated, and the
Project Team will undertake stakeholder engagement to advise on the new
timetable. This engagement will include: elected members; the school community;
neighbours and the Ardrossan community; and Scottish Futures Trust. 
2.28 The negative impacts of the delay will be most keenly felt by the by the school
community being unable to access the new facility when planned and the
neighbouring properties experiencing direct disruption caused by construction
activities. 
2.29 Stakeholder engagement will recognise these negative impacts, and the project team
will continue to explore practical mitigations to the issues posed by the extended
programme. 
2.30 With the safe systems of work around contamination removal now being complete,
works are progressing unhindered by these additional measures and the project has
now reached a significant milestone on the construction process as steel work is now
rapidly being erected on-site and concrete floor slabs are being poured. 
3. Proposals 
3.1 It is proposed that Cabinet:
• Notes the content of this report, including the current progress of works on site.
• Notes the revised completion date of 26 May 2028, with anticipated occupation from
August 2028. 
• Notes the additional estimated cost of £9.97 million (8.74%) associated with
addressing the contamination will be met from approved capital flexibility and
borrowing. 
4. Implications/Socio-economic Duty 
Financial 
4.1 An additional £9.97 million (8.74%) has been identified as necessary to address the
contamination issues associated with Compensation Events relating to the
contamination as outlined in this report. This requirement will be met through the
approved capital flexibility budget agreed by Council on 25 February 2026.

Page 9

It is anticipated that additional contingency funding may be required to address any
remaining risks which arise during the remainder of the construction period. 
In parallel, a further review of the Council’s Capital Investment Programme will be
undertaken covering the period 2026/27 to 2033/34, to ensure that the revised
programme remains prudent, affordable and sustainable. This review will include long-
term projections of borrowing and interest rate assumptions, assessment of
expenditure profiles, capital receipt forecasts, anticipated capital grant funding, and
the planned use of the loans fund reserve. 
Scottish Futures Trust has been approached to explore whether any additional
support may be available. However, the Scottish Government has confirmed, that in
accordance with the agreed LEIP funding principles, the inflationary risk associated
with project delays rests with the local authority. 
Human Resources 
4.2 None 
Legal 
4.3 Legal Services will be asked to comment on the report noted at item 2.24. 
Equality/Socio-economic 
4.4 The construction of the new Campus, as a key component of the wider
transformational regeneration of the Ardrossan Coastal Quarter will have significant
direct and wider socio-economic benefits. 
Climate Change and Carbon 
4.5 Ardrossan Campus has been designed to be highly energy-efficient and to meet the
LEIP in-use energy requirements of between 67-83KWh/m²/annum. The contract
design shows a predicted attainment of 71KWh/m²/annum. A sustainability
responsibility matrix has been developed and incorporated into the contractual
agreement to deliver facilities that will contribute to the Council’s climate change
priorities. 
Key Priorities 
4.6 The project supports the following Council priorities: 
Wellbeing 
• Developing appropriate skills for the local and regional economy 
• Using our assets to support wellbeing in local communities Improving educational
attainment and achievement and closing the attainment gap 
• Developing the young workforce and ensuring positive destinations for school
leavers 
• Providing lifelong learning opportunities for individuals and organisations including
digital literacy

Page 10

• Improving outcomes for care-experienced young people including implementation
of The Promise 
• Ensure our places and spaces where we live, work and visit are well maintained
and accessible. 
• Support KA Leisure’s leadership of North Ayrshire’s Health and Wellbeing Alliance 
• Through the Health and Social Care Partnership Strategic Plan we will protect and
provide care and support for those in need. 
Communities and Local Democracy 
• Developing partnerships with the third and voluntary sector 
• Placemaking, including creation of locality action plans. 
• Accessible public services, both digitally and locally. 
Climate Change 
• Embedding our net-zero ambition in all democratic decision-making. 
• Reducing the carbon footprint of our estate and taking a fabric first and low carbon
energy generation approach to homes and buildings 
• Promoting new woodland creation and protecting our green spaces to provide a
natural resource for carbon sequestration. 
Community Wealth Building 
4.7 A suite of community benefits has been developed through the design and
construction phases of the project. The commitments from Morgan Sindall which are
defined in the SCAPE framework agreement have been incorporated into the
contractual requirements for the project. 
Islands Communities Impact Assessment (ICIA) 
4.8 None 
United Nations Rights of the Child (UNCRC) 
4.9 The development of the Campus fully supports these rights. 
Consumer Duty 
4.10 The project will deliver on these through the Stakeholder Reference Group and Client
Planning workstreams. 
5. Consultation 
5.1 Consultation has been undertaken with Education, Economic Development Growth &
Regeneration, and Finance. 
RUSSELL McCUTCHEON
Executive Director (Place) 
For further information please contact Laurence Cree, Head of Service Sustainability,
Transport & Corporate Property, on 01292 324514.

Page 11

Background Papers
0

Page 12

NORTH AYRSHIRE COUNCIL
15 June 2026                                                                                                                                                            
Audit and Scrutiny Committee
Title: Call In: Ardrossan Campus Project Update
Purpose: To allow the Committee to consider a call-in request in respect
of the decision taken by Cabinet at its meeting on Tuesday 2
June 2026 to note the current progress of the Ardrossan
Campus project, including current projections in relation to costs
and programme.
Recommendation: That the Committee considers the terms of the call-in and agrees,
or otherwise, to make a recommendation to Cabinet.
1. Executive Summary
1.1    In terms of the Scheme of Administration (Section 5), the Audit and Scrutiny Committee
has a remit to consider call-in requests and invite at least one of the Members who has
requested the reference to call-in to attend the Committee to explain the request.
1.2 This report sets out the background to a call-in request in respect of the decision
taken by Cabinet at its meeting on 2 June 2026 in relation to the report on the current
progress of the Ardrossan Campus project, including current projections in relation to
costs and programme.
2. Background
2.1 The Cabinet, at its meeting on 2 June 2026, considered a report on the current
progress of the Ardrossan Campus project, including current projections in relation to
costs and programme.
2.2 A request was received in terms of the call-in procedure set out in the Council's
Scheme of Administration and Standing Orders, that the Audit and Scrutiny
Committee examine the decision taken by the Cabinet.
2.3 The call-in request, which was signed by Councillors Stalker, Murdoch and Stephen is
in the following terms: -
Reason for call-in
“This decision is being called in because there are some real concerns about how
the Ardrossan Campus project is progressing. The report shows a significant cost
increase of around £10 million, along with delays pushing completion back to May
APPENDIX 2

Page 13

2028.
There are also questions about how risks have been handled, especially around
ground contamination and the challenges of building on a contaminated site. It’s
not clear if these issues were fully understood early on, or if more could have
been done to avoid the impact they have had. On top of that, using additional
capital funding to cover the extra costs raises concerns about what this means
for and the overall budget of the campus and what more flexibility funding will be
made available in future budgets.
Overall, this call-in is about getting reassurance that the project is still under
control, that risks are being properly managed, and that it continues to represent
good value for the Council and local communities.”
Desired Outcome
“To provide assurance on and seek greater information on the cost,
programme, risk management, governance and wider capital implications of the
Ardrossan Campus project, ensuring it remains deliverable, financially
sustainable and represents value for money.”
2.4 A copy of the original report, prepared by the Executive Director of Place and
presented to Cabinet on 2 June 2026 is attached as Appendix 1 to this report.
2.5 The call-in request is valid for consideration by the Committee. The request was
received within the appropriate timescale, it was requested by three Elected Members
and details were provided on both the reason for the call-in and the desired outcome.
2.6 The Elected Members who have submitted the call-in will be invited to address the
Committee to explain the respective call-in request. The appropriate Cabinet Member
will then be invited to clarify the reasons for the decision. The relevant senior officer
will also be present to provide information on the report presented to Cabinet and on
issues raised by the call-in received. The Committee will have an opportunity to ask
questions of both parties and of those officers in attendance.
2.7 The Committee will then debate the call-in request and decide whether or not it agrees
with the decision of the Cabinet.
2.8 The Audit and Scrutiny Committee:-
i) decides if it agrees or not with the decision of the Cabinet; and
ii) if it does not agree with the decision, considers what alternative action the
Committee would recommend to the Cabinet.
2.9 If the Committee supports the decision of Cabinet and does not accept the call-in, the
original decision of Cabinet remains in effect and no further procedure is required.
2.10 If the Committee accepts the call-in, the matter is referred to Cabinet with a
recommendation. When the matter is considered by the Cabinet, the Chairperson or
another member of the Audit and Scrutiny Committee will have the right to attend the
Cabinet and speak in support of any recommendation.

Page 14

2.11 In the event that Cabinet declines to accept the recommendation from the Audit and
Scrutiny Committee, the matter will be referred to Council for determination. The
decision of the Council will be final. 
3. Proposals 
3.1 It is proposed that the Committee considers the call-in request. 
4. Implications/Socio-economic Duty 
Financial 
4.1 The financial implications are outlined in the Ardrossan Campus Project Update report
attached at Appendix 1. 
Human Resources 
4.2 The human resource implications are outlined in the Ardrossan Campus Project
Update report attached at Appendix 1. 
Legal 
4.3 The legal implications are outlined in the Ardrossan Campus Project Update report
attached at Appendix 1. 
Equality/Socio-economic 
4.4 The equality/social-economic implications are outlined in the Ardrossan Campus
Project Update report attached at Appendix 1. 
Climate Change and Carbon 
4.5 The climate change and carbon implications are outlined in the Ardrossan Campus
Project Update report attached at Appendix 1. 
Key Priorities 
4.6 The key priorities are outlined in the Ardrossan Campus Project Update report
attached at Appendix 1. 
Community Wealth Building 
4.7 Any community wealth building implications are outlined in the Ardrossan Campus
Project Update report attached at Appendix 1. 
Islands Communities Impact Assessment (ICIA) 
4.8 Any ICIA implications are outlined in the Ardrossan Campus Project Update report
attached at Appendix 1.

Page 15

United Nations Rights of the Child (UNCRC)
4.9 Any UNCRC implications are outlined in the Ardrossan Campus Project Update report
attached at Appendix 1.
Consumer Duty
4.10 Any consumer duty implications are outlined in the Ardrossan Campus Project Update
report attached at Appendix 1.
5. Consultation
5.1 None concerning this report.
Craig Hatton
Chief Executive
For further information please contact Shannon Wilson, Committee Services Officer, on
shannonwilson@north-ayrshire.gov.uk.
Background Papers
N/A

Page 16

NORTH AYRSHIRE COUNCIL
2 June 2026
Cabinet
Title: Ardrossan Campus – Project Update
Purpose: To provide Cabinet with an update on the current progress of
the Ardrossan Campus project, including current projections in
relation to costs and programme.
Recommendation: Cabinet is asked to:
1. Note the content of this report, including the current progress
of work on site.
2. Note the revised project completion date of 26 May 2028,
with anticipated occupation from August 2028.
3. Note the additional estimated cost of £9.97 million (8.74%)
associated with addressing the contamination will be met
from approved capital flexibility funding.
1. Executive Summary
1.1 The Ardrossan Coastal Quarter programme represents a transformational vision for
the area which includes the provision of new housing and commercial uses, providing
ambitious transformational regeneration of a vacant and derelict site on land within
one of North Ayrshire’s most deprived communities. A key component of this vision is
a new educational and community campus. 
1.2 The contract to construct the new Ardrossan Campus Project commenced on site in
July 2025, with the first stage focusing on the excavation of foundations and the
swimming pool tank. In September 2025, asbestos and hydrocarbon contamination
was identified during construction. Appropriate Safe Systems of Work were then
implemented by the main contractor (Morgan Sindall), with an independent review
confirming these measures to be proportionate and compliant.
1.3 The contractual and programme implications were subsequently assessed by our cost
consultant, resulting in an additional cost of £9.97 million (8.74%) and an extension of
the completion date to 26 May 2028.
1.4 The overall Campus project budget will therefore increase to £124,558,600, with the
additional funding to be met from the Council’s capital flexibility fund approved in
February 2026.
Appendix 1

Page 17

1.5 An independent external review of the enabling works has been commissioned, with
an initial assessment received and currently under consideration. 
1.6 The safe systems of work which have been required since encountering the
contamination have now ceased. Works are progressing unhindered by these
additional measures and the project has now reached a significant milestone on the
construction process as steel work is now rapidly being erected on-site. 
1.7 Stakeholder engagement will now be undertaken to communicate the revised delivery
arrangements and support appropriate mitigation of the impacts arising from the
extended programme. 
2. Background 
2.1 Two separate contracts relating to the delivery of the Ardrossan Coastal Quarter
were undertaken commencing in June 2023 and January 2024 respectively. The
purpose of these projects was to deliver a new revetment (Sea-Wall) coastal
defence, an extension of the coastal path, remediate contamination and to install
site-wide infrastructure to enable future development. 
2.2 Remediation strategy involved treating contaminated soil on location, removing
hydrocarbons, and reusing suitable treated material in the works. The strategy also
included installing 600mm stone cap across the site to provide a protective barrier as
all contamination would not be removed. The remediation was independently
monitored and verified to ensure it met all required standards. 
2.3 Subsequent to that, construction work on the new Ardrossan Campus commenced in
July 2025, with initial works focusing on the formation of foundations and excavation
of the swimming pool. 
2.4 As works progressed on site, an in accordance with the agreed methodology for
progressing the works, testing of excavated materials continued in order to ensure
all health and safety standards were maintained. In September 2025, asbestos and
hydrocarbon contamination was identified as a result of that testing. Appropriate
Safe Systems of Work were immediately implemented by the main contractor
(Morgan Sindall), with an independent review confirming these measures to be
proportionate and compliant
Programme Development
2.5 The Ardrossan Coastal Quarter site was selected in 2018-2019 as the preferred
location for the new Campus, reflecting its capacity, regeneration potential, and
alignment with the Council’s Local Development Plan priorities. The wider vision
includes residential and commercial development to support regeneration and align
with the Local Development Plan.
2.6 The “Ardrossan North Shore Development Framework”, prepared by external
consultants (Stallan Brand), was approved in April 2021 and set the strategic context
for redevelopment. Subsequently, In June 2021, the Council agreed remediation and

Page 18

Page 19

Page 20

2.25 Separate delivery of the enabling works and the Campus has also required ongoing
management of wider interface risks; however, these matters are being actively
managed through cross-service coordination to ensure that appropriate mitigation
measures are identified and allocated. 
2.26 Under the NEC4 contract, the Council’s exposure to additional cost arising from
systemic supply chain issues arising from the current conflict in the Middle East is
limited, with broader liability arising mainly where contract terms or future legislative
changes require it.
2.27 As the cost and programme implications arising from encountering contamination are
now understood, the overall construction programme has been updated, and the
Project Team will undertake stakeholder engagement to advise on the new
timetable. This engagement will include: elected members; the school community;
neighbours and the Ardrossan community; and Scottish Futures Trust. 
2.28 The negative impacts of the delay will be most keenly felt by the by the school
community being unable to access the new facility when planned and the
neighbouring properties experiencing direct disruption caused by construction
activities. 
2.29 Stakeholder engagement will recognise these negative impacts, and the project team
will continue to explore practical mitigations to the issues posed by the extended
programme. 
2.30 With the safe systems of work around contamination removal now being complete,
works are progressing unhindered by these additional measures and the project has
now reached a significant milestone on the construction process as steel work is now
rapidly being erected on-site and concrete floor slabs are being poured. 
3. Proposals 
3.1 It is proposed that Cabinet:
• Notes the content of this report, including the current progress of works on site.
• Notes the revised completion date of 26 May 2028, with anticipated occupation from
August 2028. 
• Notes the additional estimated cost of £9.97 million (8.74%) associated with
addressing the contamination will be met from approved capital flexibility and
borrowing. 
4. Implications/Socio-economic Duty 
Financial 
4.1 An additional £9.97 million (8.74%) has been identified as necessary to address the
contamination issues associated with Compensation Events relating to the
contamination as outlined in this report. This requirement will be met through the
approved capital flexibility budget agreed by Council on 25 February 2026.

Page 21

It is anticipated that additional contingency funding may be required to address any
remaining risks which arise during the remainder of the construction period. 
In parallel, a further review of the Council’s Capital Investment Programme will be
undertaken covering the period 2026/27 to 2033/34, to ensure that the revised
programme remains prudent, affordable and sustainable. This review will include long-
term projections of borrowing and interest rate assumptions, assessment of
expenditure profiles, capital receipt forecasts, anticipated capital grant funding, and
the planned use of the loans fund reserve.
Scottish Futures Trust has been approached to explore whether any additional
support may be available. However, the Scottish Government has confirmed, that in
accordance with the agreed LEIP funding principles, the inflationary risk associated
with project delays rests with the local authority.
Human Resources
4.2 None
Legal
4.3 Legal Services will be asked to comment on the report noted at item 2.24.
Equality/Socio-economic
4.4 The construction of the new Campus, as a key component of the wider
transformational regeneration of the Ardrossan Coastal Quarter will have significant
direct and wider socio-economic benefits.
Climate Change and Carbon
4.5 Ardrossan Campus has been designed to be highly energy-efficient and to meet the
LEIP in-use energy requirements of between 67-83KWh/m²/annum. The contract
design shows a predicted attainment of 71KWh/m²/annum. A sustainability
responsibility matrix has been developed and incorporated into the contractual
agreement to deliver facilities that will contribute to the Council’s climate change
priorities.
Key Priorities 
4.6 The project supports the following Council priorities:
Wellbeing
• Developing appropriate skills for the local and regional economy
• Using our assets to support wellbeing in local communities Improving educational
attainment and achievement and closing the attainment gap
• Developing the young workforce and ensuring positive destinations for school
leavers
• Providing lifelong learning opportunities for individuals and organisations including
digital literacy

Page 22

• Improving outcomes for care-experienced young people including implementation
of The Promise
• Ensure our places and spaces where we live, work and visit are well maintained
and accessible.
• Support KA Leisure’s leadership of North Ayrshire’s Health and Wellbeing Alliance
• Through the Health and Social Care Partnership Strategic Plan we will protect and
provide care and support for those in need.
Communities and Local Democracy
• Developing partnerships with the third and voluntary sector
• Placemaking, including creation of locality action plans.
• Accessible public services, both digitally and locally.
Climate Change
• Embedding our net-zero ambition in all democratic decision-making.
• Reducing the carbon footprint of our estate and taking a fabric first and low carbon
energy generation approach to homes and buildings
• Promoting new woodland creation and protecting our green spaces to provide a
natural resource for carbon sequestration.
Community Wealth Building
4.7 A suite of community benefits has been developed through the design and
construction phases of the project. The commitments from Morgan Sindall which are
defined in the SCAPE framework agreement have been incorporated into the
contractual requirements for the project.
Islands Communities Impact Assessment (ICIA)
4.8 None
United Nations Rights of the Child (UNCRC)
4.9 The development of the Campus fully supports these rights.
Consumer Duty
4.10 The project will deliver on these through the Stakeholder Reference Group and Client
Planning workstreams.
5. Consultation
5.1 Consultation has been undertaken with Education, Economic Development Growth &
Regeneration, and Finance.
RUSSELL McCUTCHEON
Executive Director (Place)
For further information please contact Laurence Cree, Head of Service Sustainability,
Transport & Corporate Property, on 01292 324514.

Page 23

Background Papers
0

Page 24

Audit and Scrutiny Committee
15 June 2026
At a Special Meeting of the Audit and Scrutiny Committee of North Ayrshire Council
at 10.00 a.m. involving participation by remote electronic means and physical
attendance within the Council Chambers, Irvine.
Present (Physical Participation)
John Bell, Cameron Inglis, Tom Marshall, Matthew McLean, Donald Reid, Donald L
Reid and John Sweeney.
Present (Remote Participation)
Davina McTiernan and Shaun Macaulay.
In Attendance
D. Hammond, Executive Director and K. Bell, Team Manager (Housing Strategy)
(Communities and Housing); S. Anson, Executive Service (Education) M. Boyd,
Head of Service (Finance); L. Cree, Head of Service (Sustainability, Transport &
Corporate Property) (Place); A. Craig, Head of Service, C. Stewart, Committee
Services Officer, and H. Young, Senior Committee Services Office (Democratic
Services) (Corporate Services).
Also in Attendance
Eleanor Collier, Joe Cullinane, Robert Foster, Christina Larsen, Jim Montgomerie
and Ian Murdoch.
Chair
Councillor Bell in the Chair.
1. Declarations of Interest
There were no declarations of interest by Members in terms of Standing Order 11
and Section 5 of the Code of Conduct for Councillors.
2. Call In: Revenue Budget 2025/26: Financial Performance to 31 March 2026
Submitted report by the Head of Democratic Services to consider a call-in request in
respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026
advising of the financial performance for the Council for 2025/26. The original
Cabinet report and minute from the Cabinet meeting which took place on Tuesday 2
June 2026 was attached at Appendix 1 to the report. Appendix 2 to the report
contained a briefing note provided by the Head of Finance in response to the matters
raised in the call-in request form.
The Cabinet, on 2 June 2026, considered a report on the financial performance for
Council 2025/26. Cabinet amended the recommendation to the report by determining
to allocate £1.496m of underspend to the 26/27 revenue budget with the funds to be
used to create an Our Places, Our Communities fund designed to benefit all North
Appendix 3

Page 25

Ayrshire communities with details of the fund being brought to council on the 24th of
June for debate and approval. 
Subsequently, a call-in request was received from Councillors Cullinane, Foster and
Montgomerie in the following terms:-   
Reason for Call-In 
“In passing its budget, the Council set Council Tax bands at a level required to fund
its expenditure requirements, including prioritising investment in areas such as
education and roads. 
The £1.496million underspend should therefore not be spent on another of the
administrations pet projects, particularly when the evidence of the last four years
shows that these pots of money are not used in a timeous manner. 
Instead, the underspend should be returned to council taxpayers.” 
Desired Outcome 
“That the £1.496million allocated to an ‘Our Places, Our Communities fund’ be re-
allocated to provide a Council Tax rebate, reflecting the fact that our expenditure
requirements for 2026/27 have already been funded.  
Although this outcome proposes a Council Tax rebate, we acknowledge officers'
advice that as matters relating to setting Council Tax levels are reserved to Council
and that for this outcome to be implemented it will require a decision of Full Council,
including the suspension of 15.5 and 25.1 of Standing Orders Relating to Meetings
and Proceedings of the Council, as Council Tax was set within the last six months.
The Audit & Scrutiny Committee is asked to accept the call in and recommend that
the matter is referred by Cabinet to Council for further consideration and
determination.” 
The Head of Democratic Services summarised the procedure for considering the
call-in request in terms of Standing Orders and referred to the Cabinet decision. 
Thereafter, the Members who had requested the call-in were invited to speak and
Councillor Cullinane addressed the Committee in support of the call-in request and
was heard in response to Members’ questions. 
The Chair then invited Councillor Larsen, as the Cabinet Member for Finance, to
address the meeting. Councillor Larsen explained the reasoning for the Cabinet
decision and referred to a briefing note from the Head of Finance provided at
Appendix 2 to the report. She was also heard in answer to Members’ questions. 
The Head of Finance was then heard in relation to the report presented to Cabinet
and on issues raised by the call-in. 
Councillors Cullinane and Larsen were heard in summing up.

Page 26

Councillor Sweeney, seconded by Councillor D. Reid, moved that the Committee
agree to accept the terms of the call-in request and refer the matter to the Cabinet
for further consideration, with the recommendation that the matter is referred to
Council to determine the use of the underspend and that Council suspends Standing
Orders to consider the proposal regarding a Council Tax rebate. 
As an amendment, Councillor Macaulay, seconded by Councillor McTiernan moved
that the Committee agree not to support the call-in request and that the decision of
Cabinet should stand. 
There followed questions, debate and summing up on the motion and amendment
presented for consideration. 
Thereafter, on a division and a roll call vote, there voted for the amendment,
Councillors Macaulay and McTiernan (2) and for the motion, Councillors Bell, D.
Reid, Inglis, Marshall, McLean, D.L Reid and Sweeney (7). The motion was declared
carried. 
Accordingly, the Committee agreed (a) to support the call-in request; and (b) that the
matter be referred to Cabinet for further consideration, with the recommendation that
the matter is referred to Council to determine the use of the underspend and that
Council suspends Standing Orders to consider the proposal regarding a Council Tax
rebate. 
3.  Call In: North Ayrshire Housing Acquisition Strategy 
Submitted report by the Head of Democratic Services to consider a call-in request in
respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 on
the proposed Housing Acquisition Strategy 2026- 2031. The original Cabinet report
was attached at Appendix 1 to the report. Appendix 2 to the report contained a
briefing note provided by the Executive Director (Communities and Housing) in
response to the matters raised in the call-in request form. 
The Cabinet, on 2 June 2026, considered a report on the proposed Housing
Acquisition Strategy 2026-2031. 
Subsequently, a call-in request was received from Councillors Cullinane, Foster and
Montgomerie in the following terms:-   
Reason for Call-In 
“It is wrong to suggest this policy will have no impact on the Council’s Community
Wealth Building (CWB) strategy. A key component of the strategy is to increase
procurement spend with North Ayrshire, and Ayrshire, businesses creating economic
and socio benefits from investing in the local economy. The fact that Ayrshire based
companies have won our council house building contracts has made a significant
contribution to us achieving the initial procurement targets set out in the first CWB
strategy published in 2020. 
This policy is the opposite of this approach. It will see a significant proportion of our
investment in Council housing, the majority of which comes from the Council with the

Page 27

rest from Holyrood, be transferred to private housing developers, many of which are
large national developers. It will see that investment extracted from the Ayrshire
economy. 
We remain as committed to Community Wealth Building as were in 2020. We
therefore reject this policy.” 
Desired Outcome 
“That the Council reaffirms its commitment to Community Wealth Building by
rejecting this policy and redoubling our efforts to ensure that Ayrshire based
companies can bid for, and win, the contracts to build the next generation of Council
houses in North Ayrshire.” 
The Head of Democratic Services summarised the procedure for considering the
call-in request in terms of Standing Orders and referred to the Cabinet decision. 
Thereafter, the Members who had requested the call-in were invited to speak and
Councillor Cullinane addressed the Committee in support of the call-in request. 
In the absence of Councillor Hill, as the Cabinet Member for Communities, Housing
and the Islands, the Chair then invited Councillor Collier to address the meeting. She
was also heard in answer to Members’ questions. 
The Executive Director and the Team Manager (Housing Strategy) (Communities
and Housing) were heard in response to Members’ questions. 
Councillors Cullinane and Collier were heard in summing up. 
Councillor Sweeney, seconded by Councillor D. Reid, moved that the Committee
agree to accept the terms of the call-in request and refer the matter to the Cabinet
for further consideration with the recommendation that the policy be rejected. 
As an amendment, Councillor Macaulay seconded by Councillor McTiernan moved
that the Committee agree not to support the call-in request and that the decision of
Cabinet should stand. 
Thereafter, on a division and a roll call vote, there voted for the amendment,
Councillors Inglis, Macaulay, Marshall, McTiernan and D.L Reid (5) and for the
motion, Councillors Bell, D. Reid. McLean and Sweeney (4) and amendment was
declared carried. 
Accordingly, the Committee agreed not to support the call-in request and that the
decision of Cabinet should stand.

Page 28

4. Call In: Ardrossan Campus Project Update 
Submitted report by the Head of Democratic Services to consider a call-in request in
respect of the decision taken by Cabinet at its meeting on Tuesday 2 June 2026 to
note the current progress of the Ardrossan Campus project, including current
projections in relation to costs and programme. The original Cabinet report was
attached at Appendix 1 to the report. 
The Cabinet, on 2 June 2026, considered an update report on the current progress
of the Ardrossan Campus project, including current projections in relation to costs
and programme. 
Subsequently, a call-in request was received from Councillors Stalker, Murdoch and
Stephen in the following terms:-   
Reason for Call-In 
“This decision is being called in because there are some real concerns about how
the Ardrossan Campus project is progressing. The report shows a significant cost
increase of around £10 million, along with delays pushing completion back to May
2028. 
There are also questions about how risks have been handled, especially around
ground contamination and the challenges of building on a contaminated site. It’s not
clear if these issues were fully understood early on, or if more could have been done
to avoid the impact they have had. On top of that, using additional capital funding to
cover the extra costs raises concerns about what this means for and the overall
budget of the campus and what more flexibility funding will be made available in
future budgets. 
Overall, this call-in is about getting reassurance that the project is still under control,
that risks are being properly managed, and that it continues to represent good value
for the Council and local communities.” 
Desired Outcome 
“To provide assurance on and seek greater information on the cost, programme, risk
management, governance and wider capital implications of the Ardrossan Campus
project, ensuring it remains deliverable, financially sustainable and represents value
for money.” 
The Head of Democratic Services summarised the procedure for considering the
call-in request in terms of Standing Orders and referred to the Cabinet decision. 
Thereafter, the Members who had requested the call-in were invited to speak and
Councillor Murdoch addressed the Committee in support of the call-in request and
was also heard in response to Members’ questions. 
As a point of clarification it was confirmed that the decision of Cabinet was to note
the update provided in the report presented.

Page 29

The Chair then invited Councillor Collier, as the Cabinet Member for Green
Environment and Economy, to address the meeting. Councillor Collier explained the
reasoning for the Cabinet decision and was also heard in answer to Members’
questions. 
The Executive Director (Education) and the Head of Service (Sustainability,
Transport & Corporate Property) (Place) were heard in answer to Members’
questions. 
Councillors Cullinane and Collier were heard in summing up.  
Councillor Inglis, seconded by Councillor McLean, moved that the Committee agree
to accept the terms of the call-in request with a recommendation that a progress
report is taken to a future meeting of Council in six months for consideration. There
being no amendment the motion was declared carried. 
Accordingly, the Committee agreed (a) to support the call-in request; and (b)
recommended to Cabinet that an update report is taken to a future meeting of
Council in six months. 
The meeting ended at 12.10 p.m. 
The full meeting proceedings can be viewed at
https://north-ayrshire.public-i.tv/core/portal/home