Part 1 & 2: Condition Survey & Options Appraisal...

MIDDLESBROUGH COUNCIL

Civic Centre Part 1 & 2: Condition Survey & Options Appraisal Report Rev F 23 November 2017

Civic Centre Middlesbrough Council 23 November 2017

1 23.11.17 Civic Centre Options Appraisal Final Report Rev F

Document Status

Revision Date Status or comment

Prepared by Checked by Authorised by

- 17 May 2017 DRAFT J. Burford A. Noble R. Hamilton

A 25 May 2017 Issue J. Burford A. Noble R. Hamilton

B 13 Sept 2017 DRAFT J. Burford

C 16 Oct 2017 DRAFT J. Burford

D 07 Nov 2017 DRAFT J. Burford

E 17 Nov 2017 DRAFT J. Burford

F 23 Nov 2017 Final Issue J. Burford C.Aviston A. Noble

Disclaimer

This document and its contents have been prepared and are intended solely for the Client’s information and use in relation to Civic Centre, Middlesbrough.

Faithful+Gould assumes no responsibility to any other party in respect of or arising out of or in connection with this document and/or its contents.

Copyright

The copyright of this document is vested in Faithful+Gould. This document may not be reproduced in whole or in part without their express written permission.



Contents

1.0 Introduction ............................................................................................................................................ 3

2.0 Executive Summary ............................................................................................................................... 4

3.0 Part 1: Condition Survey & 35 Year AMP Plan...................................................................................... 8

4.0 Part 2: Civic Centre Option Appraisals ................................................................................................ 14

5.0 Appendices .......................................................................................................................................... 46



1.0 Introduction

1.1 Client Brief & Report Objectives

Faithful+Gould have been appointed by Middlesbrough Council to undertake a review of their current Civic Centre Building in Middlesbrough Town Centre and potential development options. The works comprise:

1. Part 1 – Condition Survey of existing Civic Centre building including replacement Life Cycle Costings (excludes maintenance costs) – 35 year period.

2. Part 2 – Civic Centre Option Appraisal

Option 1 – No construction works to existing Civic Centre building – carry out a 35 year Life Cycle Exercise including benchmarked maintenance costs.

Option 2 – Refurbishment to bring existing Civic Centre building up to ‘Grade A’ Office standard - Cost estimate and update to LCC model as required.

Option 3 – New build Civic Centre based upon Ryder Architecture space planning report, based upon an agile working percentage of 70%. proposal including the demolition of the existing Civic Centre building, preparing the site for redevelopment – RIBA Stage 1 Estimate based cost per m2 (GIFA).

1.2 Our Approach

To undertake this work, we have utilised our multi-discipline business and engaged with specialist market consultants culminating in the following report.

For clarity, we have not been asked to review any developer procurement options and as such the option appraisals assume a Council led development approach.



2.0 Executive Summary

2.1 Condition Survey & 35 Year AMP Plan

.1 We have estimated that over a 35-year period the building will require £13,711,720 in order to undertake the necessary planned maintenance and general refurbishments needed to keep the building in a good condition. In the short term (0-5 years), there is a backlog maintenance requirement of £1,656,462 and thereafter £4,761,232 of planned maintenance works to replace or refurbish items that are at the end of their lifecycle.

.2 The four main capital outlays for Middlesbrough Council in terms of years are year 0 (backlog), year 4, year 20 and year 21.

.3 We would note that in terms of value, 47% or £6.4 million of the total £13.7 million overall of running the existing Civic Centre capital outlay would be required in the short term (0-5 years).

Table 1: Summary of Maintenance (35 year Plan)

Period Maintenance Cost

Backlog – Year 0 £1,656,462

Short Term – Year 1 to 5 £4,761,232

Medium Term – Year 6 to 15 £1,856,413

Long Term – Year 16 to 35 £5,437,613

TOTAL £13,711,720

.4 All costs are presented as current to 4Q2017 and no allowances have been made in relation to inflation and exclude any associated finance charges.



2.2 Civic Centre Option Appraisal

.1 A summary of the various cost options based upon Council led development is presented below:

Table 2: Summary of Cost Options - Council Led

Life Cycle Cost

Component

Option 1 Option 2 Option 3

Civic Centre

35 Year Maintenance

Civic Centre - Refurbishment

Ryder Architecture Space Planning

New Build Office

Base Scheme Quality Base Scheme Quality

GIFA (m²) 6,473 6,473 6,473 5,364 5,364

Demolition £385,000 £385,000 £630,000 £630,000

Construction - £9,880,000 £10,900,000 £8,880,000 £10,080,000

Cat B Fit Out - £2,300,000 £3,850,000 £1,870,000 £3,120,000

Rent - - - - -

Maintenance £16,430,380 £7,023,205 £7,023,205 £5,819,940 £5,819,940

Operation £7,121,905 £5,592,825 £5,289,375 £4,634.630 £4,331,180

Occupancy £368,048 £736,095 £736,095 - -

End of Life £0.00 -£3,734,640 -£4,120,200 -£3,729,600 -£4,233,600

Inflation Excluded

Finance Excluded

TOTALS £23,920,333 £22,182,485 £24,063,475 £18,104,970 £19,747,520

RANK 4 3 5 1 2

Other Budget Considerations (currently not included in the above)

Loose Furniture - £585,000 £1,170,000 £475,000 £950,000

Abnormal Costs and land acquisition costs

Direct Works including decant, porterage, temporary IT and client direct IT installations

Associated business rates, Value Added Tax and any tax implications

End of life costs associated with decommissioning of the asset

Any potential rental income

Building insurance

Any occupancy or overhead costs

Any upgrading, alterations, improvements and asset replacement other than outlined

.2 Based on the information provided and perceived accuracy of benchmarked data included, Faithful+Gould believe it prudent to include a confidence ratio of +/- 5 on the above costs. All other variances will be governed by Economic fluctuations



.3 From our options appraisal, the range of costs over the 35 year study period does not necessarily exclude any of the options, however the reduced occupancy new build option as outlined within Ryder Architectures Space Planning Report is most favourable in capital cost terms, based on this report.

.4 When considering the above rankings, the following should be considered:

Construction Costs

» Office built to BCO Category A Standard (New Build and Refurbishment)

» Inclusive of Design Fees, Planning, Building Control and Survey Work

» Excludes Finance Charges, Land Acquisition costs and VAT

» Excludes Abnormal Costs

» BCO Category B Fit Out Works indicative costs based on Faithful+Gould high level estimate which has been calculated utilising Ryder Architecture ‘typical floor plate layout’ drawing included within their Space Planning Report.

» Excludes any Council Direct Works.

Temporary accommodation rental costs have been included where applicable. However, decant, porterage and any temporary IT works have not been included. However, it has been discussed that Melrose House may be available and could result in a saving to the Council.

All costs are presented as current to 4Q2017 and no allowances have been made in relation to inflation and exclude any associated finance charges.

.5 The report is based upon the assumption of Council led direct procurement of the works. If the Council were to engage a developer, we would envisage a developers profit margin to be in the region of 10% of the final value of the development.



Part 1 Condition Survey & 35 Year AMP Plan



3.0 Part 1: Condition Survey & 35 Year AMP Plan

3.1 Introduction

.1 The service provided for in this report together with clarifications are as per ‘Part 1’ of the proposal and includes the following:

Part 1 – Condition Survey of existing Civic Centre building including replacement Life Cycle Costings (excludes maintenance costs) – 35-year period

Survey production using Kykloud in BCIS elemental format with an excel spreadsheet output report.

Costed report covering recurrences over the 35-year period surveyed (excludes Life Cycle maintenance costs).

Costs based on capital element replacement and as such we do not identify any defects below £250.00.

We will provide no comment against asbestos or indeed structural elements, however will advise where we feel further investigations is required.

We will access all roof coverings where possible, and otherwise survey via binoculars from GF/adjacent levels.

Access equipment has not been allowed for but can be arranged if required at an additional cost.

.2 The fabric site survey was undertaken by surveyors from Faithful+Gould across a number of days between the 23 January and the 03 February 2017.

.3 At the time of survey weather conditions were cold and dry with light rain on some days.

.4 Whilst we have made reasonable attempts to identify any defects, we have not undertaken any intrusive surveys, structural surveys, nor have we checked the design of the building in any way whatsoever by calculation.

.5 We undertook a non-intrusive survey of the Civic Centre. Although we used reasonable endeavours to access and visually inspect roof voids and manholes we are unable to comment on any covered, unexposed or inaccessible elements. We cannot, therefore, accept liability in respect of defects which subsequently become apparent, such as those which would be the result of inherent timber defects, beetle infestation, vermin, insects, defects relating to constituents of concrete, positioning of reinforcement, extent of bearings, fixings, deleterious materials, wood wool, presence of radon gas, ground contamination etc. The external elements were inspected from ground level using binoculars where appropriate or from overlooking buildings to the rear where access was granted.

.6 We have not undertaken any testing of the electrical installations, heating, and gas pipe work or specialist installations. All comments made in the enclosed report are based on a visual inspection only.



3.2 Condition

.1 Following our survey work, a fully costed condition survey, in .xls format can be found in Appendix A of this report. The below table summarises those findings, splitting them into four replacement time periods

.2 The elemental analysis of backlog and planned maintenance obligations are provided for in the following table:

Table 3: Elemental Analysis

Civic Centre Backlog

Year 0

Short

Year 1 to 5

Medium

Year 6 to 15

Long

Year 16 to 35

2 - Superstructure

2.3 - Roof £340 £336,584 £5,636 £14,476

2.5 - External Walls £0 £48,272 £96,545 £96,734

2.6 - Windows £0 £2,059,157 £0 £0

3 - Internal Finishes

3.3 - Ceilings £0 £273,851 £210,868 £482,035

3.4 - Floors and Internal Stairs £8,906 £313,049 £169,879 £778,811

3.5 - Internal Joinery £0 £0 £117,198 £3,579

3.6 - Redecorations £0 £105,789 £195,848 £245,150

4 - Fittings and Furnishings

4.1 - Fixed Furniture £0 £5,368 £17,893 £10,736

5 - Sanitary Fittings and Appliances

5.1 - Sanitary Fittings £0 £20,344 £39,173 £0

6 - Services

6.3 - Water and Fuel Installation £460,249 £20,250 £3,375 £129,803

6.4 - Heat Source and Cooling £143,775 £114,662 £11,475 £319,098

6.5 - Thermal Units and Comfort £541,890 £75,600 £130,613 £693,090

6.6 - Air Handling and Ventilation £338,513 £0 £47,250 £135,000

6.7 - Electrical Installation £152,665 £1,242,938 £800,537 £2,032,492

6.8 - Lift and Conveyor Installations £0 £0 £0 £195,750

6.9 - Protective Equipment £10,125 £134,568 £10,125 £279,261

6.11 - Specialist Installations £0 £10,800 £0 £21,600

TOTAL £1,656,462 £4,761,232 £1,856,413 £5,437,613

.3 We would note that the summary costs noted above, which are taken from our main survey data, are built up from construction specific SPON’s Pricing Book. Whilst they include a 35% uplift for preliminaries, design fees etc, they do not factor in site specific costs or indeed any economies of scale. Please refer to the excel spreadsheet in Appendix A containing the main survey data to view further granularity of these figures via the appropriate pivot tables.

.4 The following is a summary of the main backlog and short term defects from years 0 to 5 as identified in the table within section 3.2.



.5 Building Fabric

Roof – Concrete roof tiles and areas of felted flat roofs need replacement in the short term together with ancillary maintenance required to associated items

External Walls – Redecoration required to superstructure

External Windows – A major element for replacement in the short term are the windows. We have recommended that approximately £2.0m of windows require replacement in year 3 due to condition. We would note that there would be associated work due to the buildings construction that would need to be undertaken as an enabling package such as radiator removal.

Ceiling Finishes – A significant number of suspended ceilings around the building are reaching the end of their usable life, showing signs of breaking up and as such require replacement in years 0-5.

Floor finishes – On inspection we have identified that there are a number of vinyl, rubber, ceramic tile and carpet tile floor finishes that require replacement in the short term due to age and condition.

Wall finishes – Normal cyclical redecoration will be required within the short term to all walls and joinery items.

Sanitary Fittings – Many of the toilet facilities on the site require upgrade due to the condition within the spaces.

.6 Mechanical Installations

Water & Fuel Installation – The gas booster pump has been identified as in fair condition but scheduled for replacement in year 2.

Heat Source & Cooling – Both the force draft burner and the carried air cooled liquid chiller have been highlighted as due for replacement within the next 5 years.

Thermal Units & Comfort – Whilst in a fair condition, it has been estimated that the MHI split system comfort cooling heat pumps will need replacement in the next 5 years.

.7 Electrical Installations

Electrical Installation – The second most significant elements requiring replacement in the short term are within this element group with £1.4m of replacement required. The followings items are noted for replacement:

» Emergency lighting

» General lighting

» LV panel incomer

» Busbars

» BMS Automatic Controls System (Front end)

» Mains switchboard outgoing cabling

» Distribution boards

» Power outlets

» External wall mounted lighting



A note was made by the electrical surveyor during his survey that there was a significant number of extension cables visible within the working areas. This is far from ideal and would recommend rewire to suit current demand to remove this potential risk.

Specialist Installations – the 4nr camera CCTV system has been recommended for replacement due to being ageing technology.

Protective Equipment – The smoke detection and fire alarm panel & repeater are highlighted for part replacement. It is thought the fire alarm was installed c.2000 and is due for replacement within the next 5 years.

.8 It should be noted that certain elements have been identified for replacement due to their manufacturers residual life expectancy and does not take in to account factors such as maintenance history which may increase or decrease their functionality. This is particularly relevant to Mechanical & Electrical elements. Note: all the above works have been included within the replacement costs outlined.

.9 The four main capital outlays for Middlesbrough Council in terms of years are year 0 (backlog), year 4, year 20 and year 21 as indicated in the graphic below.

.10 We would note that in terms of value, 47% or £6.4 million of the total £13.7 million overall of running the existing Civic Centre capital outlay would be required in the short term (0-5 years):



3.3 Summary

.1 From the condition report data, we have estimated that over a 35-year period the building will require £13,711,720 in order to undertake the necessary planned maintenance and general refurbishments needed to keep the building in a good condition. In the short term (0-5 years), there is a backlog maintenance requirement of £1,656,462 and thereafter £4,761,232 of planned maintenance works to replace or refurbish items that are at the end of their lifecycle.



Part 2 Civic Centre Option Appraisals



4.0 Part 2: Civic Centre Option Appraisals

Life Cycle Provision and Approach

4.1 Life Cycle Objectives

.1 The value of analysis from a Life Cycle perspective allows the on-going characteristics of a facility to be understood such that decisions can be objectively informed and undertaken, based upon a fully sustainable approach to asset maintenance management.

.2 Such an approach also allows effective operational and financial management requirements to be identified which best support the efficient and reliable continuation of use of the facility over the considered business term.

4.2 Life Cycle Cost Categories

.1 The main purpose of the Life Cycle approach is to identify indicative costs for the activities and actions required to preserve the functionality of buildings. BS ISO 15686-5 identifies a number of components contributing to the total project Life Cycle cost. These are defined as below:

Construction

Maintenance

Operation

Occupancy

End of Life

.2 The BS ISO 15686-5 cost category of End of Life is excluded from this review on the basis that this is not advised as applicable to either the Civic Centre or the new build facility within the 35 year review period, however an allowance has been included for the saleable asset at the end of the review period. Should the decision be made not to evaluate the Civic Centre based upon the projected maintenance costs then a demolition cost may become relevant in the absence of the identified maintenance works being undertaken.

.3 The BS ISO 15686-5 category headings collectively present the Life Cycle Cost. The cost categories are therefore interdependent, with each having an influence upon other cost headings. For example, Maintenance activities are influenced by Operational cost headings, with Cleaning regimes and their associated costs having a direct impact on asset life e.g. floor coverings. The approach to identifying cost allowances by category has assumed a holistic and mutually supportive arrangement.

4.3 Life Cycle Cost Inclusions

.1 Construction costs for both refurbishment and new build options have been calculated from existing plans and proposed GIFA as detailed out within Ryder Architecture Space Planning document and provided to us by the Council. Elemental measures have been undertaken and costs reviewed and benchmarked alongside BCIS historical data.

.2 The Maintenance category of BS ISO 15686-5 is recognised as comprising both Major Replacement items as well as Routine Maintenance activities. In our approach, we have included for Major Replacement items, supported by Routine Maintenance as would be incurred in the operational approach within the 35 year review period.



.3 For the Civic Centre Major Replacement requirements have been established from survey information, whereas for the new build and refurbishment options these have been assessed against typically anticipated requirements associated with the technical composition of the facility.

.4 Routine Maintenance allowances for both the Civic Centre, Refurbishment and the New Build have been assessed comprising anticipated Statutory & Mandatory tasks, Planned Preventive Maintenance, and reactive maintenance.

.5 The demarcation between Major Replacement activities and Routine Maintenance operational activities has been assumed as c. £1,000/item. Consequently, any future requirements for asset replacement through breakdown less than £1,000 are assumed to be covered financially within the Routine Maintenance budget supporting the Major Replacement budget.

.6 The cost implications for Maintenance activities will be a direct outcome of Middlesbrough Council specific service requirements (such as service level agreements / response times etc), and the approach to procurement. Consequently, the anticipated cost provisions for this component will be subject to verification upon determination of the management approach of Middlesbrough Council throughout the 35 year term. The Routine Maintenance strategy and delivery regimes required for operational implementation within the New Build facility can be developed further by Faithful+Gould should this be requested.

.7 The stated Life Cycle Maintenance allowances are based on the preservation of the existing arrangements, and therefore exclude upgrading works which may be deemed required over the term to provide future standards of accommodation. The necessity and extent of these will be determined by Middlesbrough Council and are consequently excluded from the Life Cycle provisions.

.8 It is recognised that collective recognition of costs for Life Cycle Maintenance activities are intrinsic to facilitating a robust maintenance strategy which will deliver a sustainable regime. Life Cycle requirements have been considered using industry recognised techniques and are presented based upon the identified survey cost provisions and typically anticipated benchmark data, and are presented as current to 4Q 2017. It is acknowledged that actual Life Cycle costs may vary due to a range of factors beyond accurate prediction (procurement route, scope / phasing of activity, RPI, technical development, economic climate, etc) and the identified allowances should be subject to ongoing risk adjustment to maintain accuracy with their intended purpose.

.9 Typically, Operation Costs compromise of the following:

Cleaning

Utilities

Administrative costs associated with operating the building

Overhead Costs – property insurance

Taxes – business rates

.10 The Operation cost sub heading categories comprise a combination of independently assessable and client specific elements. The characteristics of the Civic Centre and the new build facility are considered to identify variations in costs for these components, with the relative comparison indicating efficiencies for the new build option. The individual position on these has been allowed for as follows:

Cleaning – the cleaning costs will be determined from the areas, type of finishes, and ease of access for cleaning influencing cleaning productivity rates. The variation in areas (existing Civic Centre of 6,473m2, Refurbishment of 6,473m2 and new build office facility of 5,364m2) results in a reduction of area, and is considered to result in further cost efficiencies through the arrangement of space and types of finishes within the New Build option. The reduction in area is c. 18%, and the result of other efficiencies is considered to result in productivity improvement of c. 17%. The overall cost reduction in cleaning costs



is therefore considered to be c. 30% less for the new build facility compared to the existing Civic Centre.

Utilities – the utilities costs will comprise electricity, gas, and water (supply and drainage). The efficiencies in modern installations from design and technical specification in particular from energy efficiency will result in the new build providing lower costs per head than the existing Civic Centre. The magnitude of cost efficiency will vary between utilities but can be anticipated to be c. 10-15% collectively. Whilst some additional cost in the New Build may be incurred from technical sophistication this has been allowed for within the Maintenance budget identified separately.

Administrative costs associated with operating the building – the management of all Life Cycle related services will be necessary with an allowance of 8% of the overall Maintenance and Operation (Cleaning) budget and c. 2% of Utilities cost considered typical and realistic.

Overhead Costs – these costs relate to property insurance which are excluded and should be identified by Middlesbrough Council for inclusion.

Taxes – these costs relate to business rates which are excluded and should be identified by Middlesbrough Council for inclusion.

.11 Occupancy Costs are typically those costs related to activities required to provide the appropriate environment for the building occupiers activities. Whilst these comprise activities such as ICT, stationary / reprographics, Reception, post room, etc, these are considered to be generally consistent across the Civic Centre and New Build facility such that there is likely to be minimal impact upon the overall comparative Life Cycle evaluation. Costs associated with all Occupancy activities will be determined by Middlesbrough Council direct and may be supplemented to the identification of total cost if required. We have budgeted for temporary accommodation where required whilst any improvement works are being carried out.

.12 It is noted that the Major Replacement Maintenance works to the Civic Centre may require temporary alternative accommodation to be provided for the use of Middlesbrough Council employees during this period – these costs have been added to the Occupancy Costs where required.

.13 The Life Cycle provisions included for are considered consistent with a holistic and sustainable project approach.

4.4 Life Cycle Limitations and Clarifications

.1 Whilst the report has been produced using industry recognised techniques and as such should be a reliable source of data upon which to make decisions, costs based on current day benchmarked data assume a continuation of the current economic climate.

.2 Likewise, renewal requirements have been identified from the detailed condition survey on the existing facility and assessed from a theoretical perspective based on the refurbished and new build options. Once a design has been developed, a more detailed assessment can be carried out.

.3 The procurement approach utilised within has assumed a holistic approach, optimising resources on a ‘when required’ basis.

.4 The above approaches are not without uncertainty, since the report does not factor in any micro-economic considerations. In summary, the inherent risks associated with the included costing methods are:

Change in benchmarked data over the life cycle period.

Change in the economic climate.

Changes in technological advances or improved replacement products.



The lengthy 35-year assessment period inherently brings greater risk to the model.

Costs may vary due to reasons such as procurement approach, resource availability / labour and materials costs.

.5 We would anticipate an economic appraisal is undertaken to consider a discounting factor – the information provided is in a format that can be incorporated in to an economic appraisal incorporating both discounted cash flow and risk allowances.

.6 For clarity, there has been no adjustments made for time value of money and therefore the data should be used along with economic modelling to enable better decision making.

.7 The report assumed the continued existence of each facility at the end of the review period. Costs presented for the removal and replacement activities are inclusive of all elements (incl waste disposal and salvage value) currently applicable. The report does consider the saleable value of each option. Details are included within each Option appraisal.

4.5 Life Cycle Review

.1 The project comprises a comparative review of the existing Civic Centre of 6,473m2, the refurbishment of the Civic Centre of 6,473m2 and new build facility of 5,364m2 all providing office accommodation. The Civic Centre is constructed c. 1960’s and the new build facility is a modern Grade A office block. Analysis of the design philosophy of the new build facility indicates no evidence of unsuitable specification which would result in excessive Life Cycle or other maintenance obligations.

.2 The scheduling of actual Life Cycle requirements will vary dependent upon the characteristics of the facility, including quality / suitability of installed components, the requirement for a proactive or reactive renewal approach, individual / specific area use profiles, replacement procurement approach, etc, and consequently the projected requirements will need to be reconciled with the Asset Management Strategy for effective implementation. The profile and allowances assumed are considered realistic and typical of maintaining the utility of the facility.

.3 The allowances for Life Cycle provision are based upon the assessed activities required for Maintenance activities based upon industry published life expectancies of components and anticipated operational delivery requirements. The allowances assume a continuation of the current design arrangements throughout the period. Alterations, additions, or asset replacement through technology changes or use demands are therefore excluded and should be provided for separately as deemed necessary to maintain the use expectations of the facilities.

.4 The facility will need to be subject to both Major Replacement and Routine Maintenance to support the Life Cycle Maintenance provisions, the costs of which are assessed separately in the replacement allowances presented.

.5 Particular Major Replacement works will require disruption to the availability of the facility and should be subject to a forward works Management Plan to ensure these are conducted in an efficient manner supporting the effective operation of the building.

.6 Life Cycle requirements may include upgrading works which are likely to be required over the term to maintain future standards of accommodation. The necessity and extent of these will be determined by Middlesbrough Council to meet use requirements. Such future changes as may be considered necessary are consequently unknown at this point and are excluded from the Life Cycle Maintenance provisions which are assessed based upon the advised arrangements.



.7 The Life Cycle requirements for each option has been assessed based upon an approach commensurate with the level of information available. The anticipated requirements are assessed within the following categories within BS ISO 15686-5:

Construction

Maintenance

Operation

Occupancy (Temporary Accommodation Only)

.8 The Life Cycle requirements identified for each of the three options are assessed individually as described in the following section.



Option 1 No Construction Works to existing Civic Centre Building



4.6 Option 1: No construction works to existing Civic Centre Building -

Life Cycle Assessment

.1 The Life Cycle requirements for the Civic Centre have been assessed based upon an extensive condition survey contained within Part 1 of this report supported by typical benchmark data analysis.

Construction

.2 This option contains no initial construction work allow for replacement costs only in the following maintenance section.

Maintenance

.3 The Maintenance allowances comprise both Major Replacement and Routine Maintenance.

.4 Major Replacement requirements have been determined from the Condition Survey identifying activities required over the 35 year review period. These are summarised as follows:

Total identified Major Replacement works value from survey information is £13,711,720. This is heavily influenced by what appears to be backlog maintenance with £2,501,366 (over 18% of total identified works value) scheduled for action immediately and within year 1 of the 35 year review period. Consideration of the period up to end of year 5 indicates a works value of c. £6,417,694, representing 46.8% of the 35 year budget. This magnitude of work is considered significant and its execution may preclude normal occupation during the works such that temporary accommodation has been considered as a cost associated with this option.

The £13,711,720 sum equates to an annual allowance of £60.52/m2/yr which is notably in excess of typically expected benchmarks of £12-18/m2/yr. This also indicates a significant backlog maintenance position.

.5 Routine Maintenance allowances have considered and included for the following activities:

Legislative Compliance actions associated with Technical Maintenance

Planned Preventive Technical Maintenance

Reactive Technical Maintenance

Technical Maintenance Management

.6 The anticipated costs for Routine Maintenance are assessed as £12.00/m2. This equates to £77,676 per annum.

The summary of Life Cycle Maintenance allowance is summarised as follows:

Table 4: Civic Centre 35 Year Life Cycle Maintenance Cost Summary

Life Cycle Operation Component Equivalent Annual Allowance

35 Year Allowance

Major Replacement £391,763 £13,711,720

Routine Maintenance £77,676 £2,718,660

TOTAL MAINTENANCE £469,439 £16,430,380



Operation

.7 Operation allowances have considered and included for the following activities:

Routine and Reactive Cleaning of the facility (internal space cleaning and external window cleaning) including for waste collection (disposal from site costs excluded)

Utilities

Administration of Life Cycle activities

.8 Routine and Reactive Cleaning allowances have been assessed as follows:

Daily Planned and a Reactive resource during working hours.

3 Monthly window cleaning cycle

Waste collection from internal areas and placement in refuge for external collection and disposal. Waste collection costs excluded – waste collection to be based upon policy for recycling.

.9 Middlesbrough Council have provided us with historic cleaning costs to the existing building at c.£23,500 per annum. Following review, the report has overlooked these costs and instead reverted to benchmarked costs. This has been assessed with the view that more resource will be required to keep the refurbished building in its best condition.

.10 The anticipated costs for Cleaning are assessed as £12.00 / m2. This equates to £77,676 per annum.

.11 Utilities costs will comprise electricity, gas, and water (supply and drainage). Actual costs have been provided by Middlesbrough Council and are as follows:

Electricity £57,082

Gas £18,643

Water £4,704

Total Utilities - £80,429 per annum

.12 Due to tariff fluctuation 35 year costs should be considered indicative only and subject to annual review for assessment of adequacy.

.13 Administrative costs associated with operating the building – this includes for the management of all activities with allowances of 8-10% of the collective Maintenance and Operation (Cleaning) budgets, and c. 2-3% of Utilities cost considered typical and realistic.

Administration (Maintenance) @ 8% - £ 43,769 (8% of £469,439 (Maintenance) & £77,676 (Cleaning))

Administration (Utilities) @ 2% - £ 1,609 (2% of £80,429 (Utilities))

Total Administration - £ 45,378

.14 The summary of Life Cycle Operation allowance is summarised as follows:

Table 5: Civic Centre 35 Year Life Cycle Operational Cost Summary

Life Cycle Operation Component Equivalent Annual Allowance 35 Year Allowance

Cleaning £77,676 £2,718,660

Utilities £80,429 £2,815,015

Administration £45,378 £1,588,230

TOTAL OPERATION* £203,483 £7,121,905

*Excludes Overhead costs and Taxes



Occupancy (Temporary Accommodation)

.15 The magnitude of works to the Civic Centre would involve significant disruption that it is considered likely that the building would not be capable of normal operation and temporary accommodation would be necessary for the works period. We have included within the appraisal an allowance of 9 months’ temporary accommodation as calculated below:

Based on Ryder Architecture Space Planning Report, with an agile working percentage of 70%

Based on GIFA of 5,364m² with an assumed efficiency of 85% = 4,559m² NIA

Yearly (12 months) rental rate of £10/sqft. 49,073 sqft (4,559 m²) x £10/sqft = £490,730

9 months temporary accommodation = £368,048

.16 No allowances have been made for decant, porterage, IT infrastructure costs and the like.

Table 6: Civic Centre 35 Year Life Cycle Occupancy Cost Summary

Life Cycle Operation Component 35 Year Allowance

Temporary Accommodation £368,048

All other Occupancy Cost excl

TOTAL OCCUPANCY * £368,048

*Temporary Accommodation only

End of Life

.17 Within the appraisal we have allowed an assessed value of the end of life asset utilising the following information.

.18 The nature of the work undertaken within the general maintenance of the existing Civic Centre does not include for any structural repair works. Together with the building age, is a fair assumption to make that the building will be at the end of its usable life following the 35 year review period. Therefore, the assumed value of the asset would be £0.00.


Table 7: Civic Centre 35 Year Life Cycle End of Lift Cost Summary


End of Life Value £0.00

TOTAL END OF LIFE £0.00



Civic Centre – Summary of Life Cycle Allowances

.20 The summary of Life Cycle allowances for the Civic Centre is summarised as follows:

Table 8: Civic Centre 35 Year Life Cycle Construction, Maintenance, Operation and Occupancy Cost Summary


Construction N/A

Maintenance £16,430,380

Operation* £7,121,905

Occupancy** £368,048

End of Life £0.00

TOTAL 35 YEAR LIFE CYCLE COST £23,920,333


**Temporary Accommodation only



Option 2 Refurbishment to bring existing Civic Centre building up to ‘Grade A’ Office Standard



4.7 Option 2 – Refurbishment to bring existing Civic Centre building up

to ‘Grade A’ Office Standard - Life Cycle Assessment

.1 The Life Cycle requirements for the civic centre refurbishment option have been assessed based upon an assessed unit rate provision based upon benchmark sources for the 6,473m2 advised area.

Construction

.2 Through discussion, a standard of refurbishment was agreed with Middlesbrough Council. The client’s aspiration is for a building of the same standard to a modern day new build. To achieve this the works would entail the full strip of the civic centre building back to the structure, thus only leaving the basement, foundations and ground floor, concrete frame, upper floors and roof structure as existing.

.3 A new curtain walling and cladding system will be hung off the existing structure constructed and insulated to current building standards and an entire new Mechanical & Electrical system will be installed.

.4 The building will be refurbished to current BCO Cat A standard.

.5 Construction costs can vary greatly due to the quality of certain elements of the build, such as the material mix of internal finishes. To represent this, two cost options have been provided under the heading of ‘Base’ and ‘Quality’ cost. Commentary regarding these changes is included within a full BCIS elemental breakdown which is included in Appendix B

.6 Whilst no specialist Architectural, Structural or Services advice has been sought, it should be noted that there are limitations to this approach, predominantly in the retrofitting of M&E installations and structural improvements which may hinder both floor space and floor to ceiling heights which may result in less than ideal working environment.

.7 The very nature of refurbishment can result in unknown and at times costly work being undertaken. In providing budget costs for these works the following has been priced differently to a standard new build project.

.8 Asbestos and Soft Strip Demolition – budget costs have been provided by Nor-Den Ltd (this quote and an alternative provided by MGL Demolition can be found in Appendix C)

.9 Demolition cost have been provided on a budget basis, without any intrusive survey work. below include for the following works:

Asbestos Removal

Soft strip of the existing civic centre, leaving in place the building substructure and frame only

Demolition Contractors Preliminaries, including all Security Overheads & Profit

Professional fees and survey works

Risk allowance



.10 Costs included as follows:

Table 9: Civic Centre Asbestos & Soft Strip Demolition (Quote by Nor-Dem Ltd)

Element Total

Civic Centre Asbestos Removal £98,000

Civic Centre Asbestos Removal (unknown qty – risk pot) £98,000

Civic Centre Soft Strip £136,000

Sub Total £332,000

Professional Fees & Survey Work

(5.0% allowance)

£16,600

Risk allowance (10% demolition contingency) £36,400

DEMOLITION TOTAL £385,000

.11 Structure Generally - while being retained, considered necessary whilst refurbishing a building back to its core and inevitable defects / damage that arises we have allowed for an element of remedial work

.12 Services – increased allowance and builderswork due to more complex installation fitting around existing structures

.13 Design Team – increased allowance for professional fees due to the complex nature of refurbishment work.

.14 Risk – increased allowance in line with opening up existing structures and specifically unidentified asbestos which may exist.

Cat B Fit Out Works

.15 Fit out costs have been budgeted based upon a Net Internal Area to Gross Internal Area efficiency ratio of 85%. Specific rooms have been allowed based upon Ryder Architecture Space Planning “Typical Floor Plate Layout”

.16 Design Team fees for this work has been reduced to 7.5% to reflect the limited services required.

.17 Risk has been allowed at 5% design contingency and 5% construction contingency due to the limited information available at present.



.18 A summary of demolition and construction costs is found below. A more detailed BCIS Summary complete with commentary can be found in Appendix B

Table 10: Civic Centre Refurbishment Cost Summary

Element Base Quality

Facilitating works £385,000 £385,000

DEMOLITION TOTAL £385,000 £385,000

Substructure £29,017 £29,017

Superstructure £2,738,371 £2,788,371

Internal finishes £221,640 £634,514

Fittings, furnishings and equipment £0 £85,000

Services £3,178,999 £3,262,959

External works £257,762 £315,820

Sub Total £6,425,789 £7,115,681

Main contractor's preliminaries

(55 weeks x £17,000. Additional 5 weeks for quality scheme)

£979,200 £1,064,200

Main contractor's overheads and profit

(2.5% overheads / 2.5% profit)

£370,249 £408,994

Project / design team fees

(12.0% Design Fees plus planning, building control, survey work etc)

£1,039,105 £1,136,742

Sub Total £8,814,344 £9,725,617

Risk

(7.5% design contingency / 7.5% construction contingency)

£1,065,656 £1,174,384

Sub Total £9,880,000 £10,900,000

Inflation* Excl Excl

CONSTRUCTION TOTAL £9,880,000 £10,900,000

Cat B Fit Out Works incl prelims and OH&P £1,943,000 £3,253,000


(7.50% Design Fees)

£145,725 £243,975

Risk


£211,275 £353,025

Cat B FIT OUT WORKS TOTAL £2,300,000 £3,850,000

*The exact timing of the development is unknown. Costs based on 4Q2017. We would note BCIS All in TPI indicates neutral / deflation until 2Q2018 and thereafter positive inflation from 3Q2018. We would highlight the indices have been volatile since Brexit and implications of inflation should be managed on the client’s risk register.



Maintenance

.19 The Maintenance allowances comprise both Major Replacement and Routine Maintenance.

.20 Major Replacement requirements have been determined from typical benchmark sources for activities required over the 35 year review period. These are summarised as follows:

Major Replacement works benchmark value is £12-15/m2/yr. This is an anticipated range for a facility of this nature for a 0-35 year period. The higher range level has been assumed to allow for the uncertainty in asset content within the facility.

The assumption of £15/m2/yr indicates an equivalent annual sum of £97,095, which equates to a total of £3,398,325 over the 35 year term.

The above allowance will be subject to modelling to reflect the replacement activities the sum total supports. This will vary over the 35 year term with peaks of activity occurring typically post year 8-9, and influenced by more significant events (such as main heat source replacement c. year 18-22) as will occur.

.21 Routine Maintenance allowances have considered and included for the following activities:

Legislative Compliance actions associated with Technical Maintenance

Planned Preventive Technical Maintenance

Reactive Technical Maintenance

Technical Maintenance Management

.22 The anticipated costs for Routine Maintenance are assessed as £16.00/m2, an increase from the existing civic costs due to more complex systems being envisaged. This equates to £103,568 per annum.

.23 The summary of Life Cycle Maintenance allowance is summarised as follows:

Table 11: Civic Centre Refurbishment 35 Year Life Cycle Maintenance Cost Summary


35 Year Allowance






Operation

.24 Operational allowances are generally in line with the existing building. However it has been assessed that only 2 monthly window cleans are required due to modern glass coatings and generally better access equipment.

.25 The anticipated costs for Cleaning are assessed as £10.00/m2. This equates to £64,730 per annum.

.26 Utilities costs comprising electricity, gas, and water (supply and drainage). Utilising Middlesbrough Councils current spend of £80,429 per annum as detailed earlier, reducing by an anticipated 10% due to new energy efficient installations, a revised figure of £72,386 per annum.

.27 Included within the quality build option is the provision of 42 KW of photovoltaic panels. Utilising the latest feed in tariffs (FiTs), combined with electricity saving, a saving upwards of £8,500 per annum could be achieved, reducing the total per annum to £63,886 per annum. This represents a payback period of c.10 years.

.28 Due to tariff fluctuation 35 year costs should be considered indicative only and subject to annual review for assessment of adequacy.

.29 Administrative costs associated with operating the building have been calculated as pervious options.

Administration (Maintenance) @ 8% - £21,231 ((8% of £200,663 (Maintenance) & £64,730 (Cleaning))

Administration (Utilities) @ 2% - £1,448 / £1,278 (2% of £72,386 or £63,886 (Utilities))

Total Administration - £22,679 / £22,509


Table 12: Civic Centre Refurbishment 35 Year Life Cycle Operation Cost Summary


35 Year Allowance

Cleaning £64,730 £2,265,550

Utilities £72,386 / £63,886 £2,533,510 / £2,236,010

Administration £22,679 / £22,509 £793,765 / £787,815

TOTAL OPERATION* £159,795 / £151,125 £5,592,825 / £5,289,375





.31 The magnitude of works to the Civic Centre would involve vacating the building during refurbishment works meaning temporary accommodation would be necessary.

.32 We have included within the appraisal an allowance of 18 months temporary accommodation as calculated below:

Based on Ryder Architecture Space Planning Report, with an agile working percentage of 70%

Based on GIFA of 5,364m² with an assumed efficiency of 85% = 4,559m² NIA

Yearly (12 months) rental rate of £10/sqft. 49,073 sqft (4,559 m²) x £10/sqft = £490,730

18 months temporary accommodation = £736,095

.33 No allowances have been made for decant, porterage, IT infrastructure costs and the like.

Table 13: Civic Centre Refurbishment 35 Year Life Cycle Occupancy Cost Summary


Temporary Accommodation £736,095


TOTAL OCCUPANCY * £736,095

*Temporary Accommodation only

End of Life

.34 Within the appraisal we have allowed an assessed value of the end of life asset utilising the following information.

.35 The refurbishment works included within the original construction costs include an allowance to make good the structure of the existing civic centre. Standard UK design parameters allow for a 60 year life span unless otherwise instructed by the client. This would leave an asset with 25 years remaining in its designed life.

.36 However, there is an inherent risk relating to remedial works of this nature. To acknowledge this, we have allowed a 10% reduction in the value of the asset.

.37 To reflect this we have calculated the end of life asset as follows:

Construction costs included within the report of £9,880,000 (base) and £10,900,000 (quality)

Based on 25 years remaining (following 35 year review period) of a designed life span of 60 year, a reduction factor of 42% has been applied.

Base £9,880,000 x 42% = -£4,149,600, less 10% reduction = -£3,734,640

Quality £10,900,000 x 42% = -£4,578,000, less 10% reduction = -£4,120,200




End of Life Value -£3,734,640 / -£4,120,200

TOTAL END OF LIFE -£3,734,640 / -£4,120,200



New Build – Summary of Life Cycle Allowances

.39 The summary of Life Cycle allowances for the refurbished Civic Centre is summarised as follows:

Table 15: Civic Centre Refurbishment 35 Year Life Cycle Construction, Maintenance, Operation and Occupancy Cost Summary


Demolition £385,000

Construction £9,880,000 / £10,900,000

Cat B Fit Out Works £2,300,000 / £3,850,000


Operation* £5,592,825 / £5,289,375

Occupancy** £736,095

End of Life (asset) -£3,734,640 / -£4,120,200

TOTAL 35 YEAR LIFE CYCLE COST £22,182,485 / £24,063,475


**Temporary Accommodation only



Option 3 Construct a new office building in line with Ryder Architecture Space Planning Report



4.8 Option 3 – Construct a new office building in line with Ryder

Architecture Space Planning Report

.1 The Life Cycle requirements for the new build option constructed adjacent to the existing Civic Centre have been assessed based upon an assessed unit rate provision based upon benchmark sources for the 5,364m2 advised area.

Construction

.2 A budget cost estimate for a new build office development has been undertaken in line with Ryder Architectures Space Planning Report and in line with an agile working percentage of 70%

.3 Costs include for all construction costs together with design team fees, and allowances for planning, building control, survey works, legal fees and the like.

.4 Budget demolition cost for the Civic Centre have been provided by NorDem Ltd. This quote together with an alternative quotation by MGL demolition can be found in Appendix C.

.5 Demolition cost have been provided on a budget basis, without any intrusive survey work. The costs include for the following works:

Asbestos Removal

Full demolition of the existing Civic Centre, leaving a fully prepared site ready for redevelopment. NOTE: no allowance has been made for any service diversion work deemed necessary, as no information provided.

Remedial budget costs for making good the Town Hall building

Demolition Contractors Preliminaries, including all Security Overheads & Profit

Professional fees and survey works

Risk allowance

Table 16: Civic Centre Asbestos Compete Demolition (Quote by Nor-Dem Ltd)

Element Total

Civic Centre Asbestos Removal £98,000

Civic Centre Asbestos Removal (unknown qty – risk pot) £98,000

Civic Centre Complete Demolition £350,000


Professional Fees & Survey Work

(5.0% allowance)

£27,300

Risk allowance (10% demolition contingency) £56,700


.6 Costs do not allow for any abnormal ground conditions, VAT, finance charges and any loose furniture requirements.

.7 Again, in line with the refurbishment option, we have provided ‘Base’ and ‘Quality’ cost options. Commentary regarding these changes is included within a full BCIS elemental breakdown which is included in Appendix B



Cat B Fit Out Works

.8 Fit out costs have been budgeted based upon a Net Internal Area to Gross Internal Area efficiency ratio of 85%. Specific rooms have been allowed based upon Ryder Architecture Space Planning “Typical Floor Plate Layout”

.9 Design Team fees for this work has been reduced to 7.5% to reflect the limited services required.

.10 Risk has been allowed at 5% design contingency and 5% construction contingency due to the limited information available at present.



.11 A summary of demolition and construction costs is found below. A more detailed BCIS Summary complete with commentary can be found in Appendix B

Table 17: New Build Cost Summary

Element Base Quality

Facilitating works £630,000 £630,000

DEMOLITION TOTAL £630,000 £630,000

Substructure £362,250 £362,250

Superstructure £2,928,020 £3,273,470

Internal finishes £147,570 £450,489

Fittings, furnishings and equipment £0 £70,000

Services £2,411,308 £2,495,268

External works £251,930 £305,500

Sub Total £6,101,078 £6,956,977

Main contractor's preliminaries

(50 weeks x £17,000. Additional 6 weeks for quality scheme)

£887,400 £989,400

Main contractor's overheads and profit

(2.5% overheads / 2.5% profit)

£349,424 £397,319


(10.5% Design Fees plus planning, building control, survey work etc)

£870,863 £976,472

Sub Total £8,208,765 £9,320,167

Risk


£671,235 £759,833

Sub Total £8,880,000 £10,080,000

Inflation* Excl Excl

CONSTRUCTION TOTAL £8,880,000 £10,080,000

Cat B Fit Out Works incl prelims and OH&P £1,576,500 £2,632,250


(7.50% Design Fees)

£118,238 £197,419

Risk


£175,263 £290,331

Cat B FIT OUT WORKS TOTAL £1,870,000 £3,120,000

*The exact timing of the development is unknown. Costs based on 4Q2017. We would note BCIS All in TPI indicates neutral / deflation until 2Q2018 and thereafter positive inflation from 3Q2018. We would highlight the indices have been volatile since Brexit and implications of inflation should be managed on the client’s risk register.



Maintenance

.12 Both the Major Replacement and Routine Maintenance costs have been calculated using the same principles as the previous new build option.

.13 Major Replacement id based upon £15/m2/yr indicates an equivalent annual sum of £80,460, which equates to a total of £2,816,100 over the 35 year term.

.14 The anticipated costs for Routine Maintenance are assessed as £16.00/m2. This equates to £85,824 per annum.

.15 The summary of Life Cycle Maintenance allowance is summarised as follows:

Table 18: New Build 35 Year Life Cycle Maintenance Cost Summary


35 Year Allowance






Operation

.16 Operational allowances for the new build are in line with the previous new build option set out in the previous option.

.17 The anticipated costs for Cleaning are assessed as £10.00/m2. This equates to £53,640 per annum.

.18 Utilities costs comprising electricity, gas, and water (supply and drainage). Utilising Middlesbrough Councils current spend of of £80,429 per annum as detailed earlier, reducing by an anticipated 10% due to new energy efficient installations and prorata’d based on the reduced floor space results in a revised figure of £59,984 per annum.

.19 Included within the quality build option is the provision of 42 KW of photovoltaic panels. Utilising the latest feed in tariffs (FiTs), combined with electricity saving, a saving upwards of £8,500 per annum could be achieved, reducing the total per annum to £51,484 per annum. This represents a payback period of c.10 years.

.20 Administrative costs associated with operating the building – this includes for the management of all activities with allowances of 8-10% of the collective Maintenance and Operation (Cleaning) budgets, and an allowance for Utilities management. As the administration of Utilities is considered to entail the same level of input as the Civic Centre an identical allowance has been entered for this element.

Administration (Maintenance) @ 8% - £17,594 ((8% of £166,284 (Maintenance) & £53,640 (Cleaning))

Administration (Utilities) @ 2% - £1,200 / £1,030 (2% of £59,984 or £51,484 (Utilities))

Total Administration - £18,794 / £18,624


Table 19: New Build 35 Year Life Cycle Operation Cost Summary


35 Year Allowance

Cleaning £53,640 £1,877,400

Utilities £59,984 / £51,484 £2,099,440 / £1,801,940

Administration £18,794 / £18,624 £657,790 / £651,840

TOTAL OPERATION* £132,418 / £123,748 £4,634,630 / £4,331,180





.22 Due to the new building being constructed adjacent to the existing Civic Centre, it has been assumed occupation at the existing civic centre will continue until Construction works have been complete negating any requirement for temporary accommodation.

Table 20: New Build 35 Year Life Cycle Occupancy Cost Summary


Temporary Accommodation Not required


TOTAL OCCUPANCY -

End of Life

.23 Within the appraisal we have allowed an assessed value of the end of life asset utilising the following information

.24 Standard UK design parameters for a new build allow for a 60 year life span unless otherwise instructed by the client. This would leave an asset with 25 years remaining in its designed life.

.25 To reflect this we have calculated the end of life asset as follows:

Construction costs included within the report of £8,880,000 (base) and £10,080,000 (quality)

Based on 25 years remaining (following 35 year review period) of a designed life span of 60 year, a reduction factor of 42% has been applied.

Base £8,880,000 x 42% = -£3,729,600

Quality £10,080,000 x 42% = -£4,233,600




End of Life Value -£3,729,600 / -£4,233,600

TOTAL END OF LIFE -£3,729,600 / -£4,233,600



Ryder Architecture Space Planning New Build Adjacent Site– Summary of Life Cycle Allowances

.27 The summary of Life Cycle allowances for the Ryder Architecture Space Planning New Build on the adjacent site of the Civic Centre is summarised as follows:

Table 22: New Build 35 Year Life Cycle Construction, Maintenance, Operation and Occupancy Cost Summary


Demolition £630,000

Construction £8,880,000 / £10,080,000

Cat B Fit Out Works £1,870,000 / £3,120,000


Operation* £4,634,630 / £4,331,180

Occupancy Not required

End of Life (asset) -£3,729,600 / -£4,233,600

TOTAL 35 YEAR LIFE CYCLE COST £18,104,970 / £19,747,520




Summary Option Appraisal Summary



4.9 Summary of Option Appraisal

.1 A summary of the various cost options based upon Council led development is presented below together with graphical representation:

Table 23: Summary of Cost Options - Council Led

Life Cycle Cost

Component

Option 1 Option 2 Option 3

Civic Centre

35 Year Maintenance

Civic Centre - Refurbishment

Ryder Architecture Space Planning

New Build Office

Base Scheme Quality Base Scheme Quality

GIFA (m²) 6,473 6,473 6,473 5,364 5,364

Demolition £385,000 £385,000 £630,000 £630,000

Construction - £9,880,000 £10,900,000 £8,880,000 £10,080,000

Cat B Fit Out - £2,300,000 £3,850,000 £1,870,000 £3,120,000

Rent - - - - -

Maintenance £16,430,380 £7,023,205 £7,023,205 £5,819,940 £5,819,940

Operation £7,121,905 £5,592,825 £5,289,375 £4,634.630 £4,331,180

Occupancy £368,048 £736,095 £736,095 - -

End of Life £0.00 -£3,734,640 -£4,120,200 -£3,729,600 -£4,233,600

Inflation Excluded

Finance Excluded

TOTALS £23,920,333 £22,182,485 £24,063,475 £18,104,970 £19,747,520

RANK 4 3 5 1 2



.2 From our options appraisal, the range of costs over the 35 year study period does not necessarily exclude any of the options, however building upon the financial benefits of a New Build Option there are restrictions with staying at the existing Civic Centre in both its current form and a refurbished option.

.3 Existing Civic Centre

The key notable point of the assessed Life Cycle allowances is within the Maintenance category. The magnitude of works identified on the Civic Centre indicates a substantial commitment which is comprised predominantly of £13,711,720 of Major Replacement Works, of which over 18% (£2,501,366) is scheduled for immediate undertaking within current and first year, and over 46% (£6,417,694) within a 5 year period. This magnitude of works value also influences the Operation Costs, which include for time and cost associated with direct and indirect management of such works.

The magnitude of works to the Civic Centre would involve significant disruption that it is considered likely that the building would not be capable of normal operation and temporary accommodation is required. Temporary rental costs have been factored in but exclude, decant, porterage, associated temporary IT costs and the like.

The age characteristics of the facilities identifies clear distinctions between the options regarding the Life Cycle requirements. The Civic Centre has extensive, major replacement actions identified for action within a 5 year period, with these costs representing over 60% of the overall 35 year Major Maintenance budget requirement. By comparison, a fully refurbished Civic Centre and the New Build facility, Major Maintenance budget is estimated as notably lower by overall quantum, containing no significant replacement obligations within the first decade, and with requirements thereafter scheduled typically more evenly throughout the remainder of the 35 year review period.

The level of sophistication in the standard of accommodation also indicates clear distinctions between the options. The Life Cycle allowances identified consider the cost implications of each of the facility arrangements, noting that the refurbished Civic Centre and the New Build facility will be constructed to current modern standards and is therefore more sophisticated than the Civic Centre and is also therefore likely to present an enhanced standard of accommodation.

Even with undertaking the maintenance as outlined in the report, the council will still have an ageing 1960’s building and the report does not consider any economic, environmental and general working environment benefits of a modern new build working environment.

.4 Refurbished Civic Centre

Whilst there are perceived benefits in utilising existing building structures in terms of reduced cost for foundations, frame, upper floor and the like, these structures carry risk due to their age and detailed survey work would need to be carried out.

Furthermore, fitting modern day Services in to an existing structure can be complex and often results in a compromise such as reduced ceiling heights and a less efficiently space planned floor plate.

Whilst a full refurbishment including any remedial work to the buildings structure has been carried out, the structure is still over 50 years utilising old building techniques and to sizes that do not suit modern day working environments, resulting in compromises having to be taken.

.5 New Build Options

The opportunity to build the new Civic Centre has financial benefit in addition to that of ‘kick starting’ regeneration in the town centre. Demolition of the existing Civic Centre has been included in this option as it is felt to maximise development opportunities on the existing building needs to be brought to the ground. Furthermore, building will benefit from not having to relocate staff temporarily.



4.10 Clarification, Assumptions and Exclusions

.1 The report and cost options have been priced based on the following

.2 Clarifications

The Life Cycle costs identified within this report relate to those associated with the existing Civic Centre, the refurbishment of the Civic Centre and those associated with the proposed new building, sited on the existing Civic Centre plot and adjacent to.

All costs associated with the Life Cycle for the proposed new building will be subject to definition based upon the elected strategy for asset management, use profile, lease arrangements, and procurement models to achieve an optimum arrangement. The arrangements for such are yet to be determined, and consequently an approach based upon an assessed unit rate provision has been used.

Life Cycle costs have been assessed based upon the approach of BS ISO 15686-5: Part 5 Life Cycle Costing.

A study period of 35 years has been considered.

The project comprises review of the existing Civic Centre of 6,473m2, refurbishment of the Civic Centre of 6,473m2, and New Build office facility of 5,364m2 . Area schedule built up as follows:

Table 24: Building Area Schedule

Level Existing / Refurbished Civic Centre

New Build Office

Basement 236 m² -

Level 0 1,396 m² 1,725 m²

Level 1 1,470 m² 1,725 m²

Level 2 1,521 m² 1,725 m²

Level 3 1,470 m² 189 m²

Level 4 380 m² -

TOTAL 6,473 m² 5,364 m²

The New Build facilities is assumed consistent with current construction standards and comprises no components which would result in excessive Life Cycle or other maintenance obligations.

Construction costs have been estimated for both a fully refurbished Civic Centre building, constructed to modern day standards, in addition to two new build options.

We have allowed two cost options within the options appraisal. Quality of refurbishments and new builds do vary and where possible we have included cost options for such items as the quality of internal fittings, finishes and the like together with uprated Mechanical & Electrical Services and in the new build, an allowance for additional floor height, resulting in a better working environment. These differing cost options are named ‘base’ and ‘quality’.



The allowances for Life Cycle provision are based upon the components as identified within BS ISO 15686-5 Part 5 and comprise Construction, Maintenance, Operation, Occupancy, together with an allowance for the saleable asset value at the end of the 35 year review period. End of Use. Occupancy Costs other than temporary accommodation are considered not to present any material differences between the options and as these will be determined directly by Middlesbrough Council approach can be considered additionally if required. End of Life Costs are not advised as necessary within this report.

The allowances considered for all options assume a continuation of the current arrangements throughout the study period. Alterations, additions, or asset replacement through material changes to use demands are not capable of forecast and are therefore excluded from the allowances identified. These should be provided for separately as deemed necessary by Middlesbrough Council.

All options will need to be subject to an Asset Management Plan to identify how Life Cycle activities can be delivered to align with the use requirements. The costs of Life Cycle activities estimated in this report will be determined by the operational strategies within the Asset Management Plan required by Middlesbrough Council.



.3 Assumptions

Construction work are undertaken in a single phase

Contractors working area can be located in a reasonable position on site with unrestricted access.

No abnormal planning requirements

No abnormal agreements with adjacent land owners

Refurbishment and New Build Offices constructed to BCO Cat A Standard

Budget Cat B Fit Out Works in line with Ryder Architecture ‘Typical Floor Plate Layout’

.4 Exclusions

Loose furniture

Abnormal Costs

Land acquisition costs

Inflation

Finance charges

Decant, porterage costs and any temporary IT works

Client direct IT installations

End of life costs i.e. demolition costs at the end of the assets design life

Any potential rental income

Value Added Tax and any tax implications

Building Insurance

Associated business rates

Any upgrading, alterations, improvement and asset replacement other than outlined

Occupancy costs

Overhead costs

4.11 Conclusion

.1 This report has looked at the financial impact of various options of the future of the Councils Civic Centre and focusses on the projected capital outlay of any redevelopment.

.2 The three options considered within the report differ substantially. Ultimately, the reduced area requirements as outlined within Ryder Architects Space Planning Report saves on the capital outlay of construction works and in the running of the building. We believe this option would position the council to be more efficient and geared to modern working techniques.

.3 Furthermore, with the new building being positioned adjacent to the existing site, no temporary accommodation is required thus saving capital outlay. Finally, building away from the existing site will free up the existing civic centre site for redevelopment. Whilst demolition costs of the existing civic centre are included within the enclosed costs, this outlay can be delayed to suit financial budgets.

.4 We recognise that within each of the options, there are differing economic constraints and benefits which this report does not address

.5 Faithful+Gould would be happy to assist and further develop any of the options with Middlesbrough Council



5.0 Appendices 5.1 The following Appendices are included within:

Appendix A Faithful+Gould Main Survey Data & Inspector Advisory Notes

(Main Survey Data issued electronically in .xls format)

Appendix B Faithful+Gould Option Appraisal Cost Plan Summaries

Appendix C Nor-Dem Ltd and MGL Demolition Budget Quotations



Appendix A Faithful+Gould Main Survey Data

(Main Survey Data issued electronically in .xls format)



Inspectors Advisory Notes/Information

.1 Building

External Decoration

Within the ten-year timescale of the survey, all painted/stained/treated surfaces should be prepared and redecorated after any necessary repairs, whilst all self-finished surfaces should be cleaned down.

Internal Decoration

All areas require redecoration on a number of occasions within the 35-year timescale of the survey.

Health” areas such as toilets, kitchens, changing rooms, medical rooms, showers etc, should ideally be redecorated on a three-year maximum cycle for obvious hygiene reasons.

The surface finishes of ceilings, walls, fittings and fixtures in escape corridors, staircase enclosures and circulation areas should be redecorated with ‘Flame Retardant Coatings’ to reduce the surface spread of flame in the event of a fire. Surfaces must be Class ‘O’ to comply with the Building Standards technical documents.

Rainwater Goods

All rainwater goods / gutters / outlets / hopper heads / discharge shoes etc, should be cleaned out on a minimum yearly basis. This will ensure rapid and efficient collection and dispersal of rainwater from the building envelope and help minimise damage by rainwater ingress.

Flat Roof Areas

All ‘flat’ and shallow pitch roof areas should also be cleaned off on a minimum yearly basis to prevent damage to the roof covering and blockage of roof outlets. All debris and rubbish should be comprehensively collected and removed, which may include old building materials, balls, bottles, drinks tins, plastic bags, leaf and branch litter, glass, nails/screws, dead birds and paper etc.



.2 Key to Survey Type

Key to Condition Grading / Priority Grading

Condition Grading

This is the overall condition of each element of the building:

» Grade A – Good. Performing as intended and operating efficiently.

» Grade B – Satisfactory. Performing as intended but exhibiting minor deterioration.

» Grade C – Poor. Exhibiting major defects and/or not operating as intended.

» Grade D – Bad. Life expired and/or serious risk of imminent failure.

Examples of Application of Condition Classification

Example 1 - Flat Roof

Condition Grade

Watertight, no visible defects A

Reasonably sound, only routine maintenance required B

Significant deterioration, subject to leaking C

Extensive problems, severe water penetration, cannot be maintained effectively

D

Example 1 – Heating Boiler

Condition Grade

Good working order A

Operating efficiently, some minor repairs anticipated B

Subject to breakdown, coming to the end of lifecycle C

Permanent failure probable, end of lifecycle D

Priority Grading

Once the condition of premises has been assessed, priorities are allocated according to the seriousness of the condition revealed or the urgency associated with any breaches of legislation. This has particular regard to the possible consequences of deferment. Priority works in category 1 constitute works that are current backlog maintenance requirements. This means that the backlog works on the Authorities estate should ideally be addressed as soon as possible. The backlog works however have been prioritised in order to allow the Authority time to plan and secure the necessary funding to rectify the condition of its buildings. The following priority grades are in the context of a 35-year accounting period:

» Priority 1 - Urgent work that will prevent immediate closure of premises and/or address an immediate high risk to the health and safety of occupants and/or remedy a serious breach of legislation.



» Priority 2 - Essential work required within five years that will prevent serious deterioration of the fabric or services and/or address a medium risk to the health and safety of occupants and/or remedy a less serious breach of legislation.

» Priority 3 - Work required within six to fifteen years that will prevent deterioration of the fabric or services and/or address a low risk to the health and safety or occupants and/or remedy a minor breach of legislation.

» Priority 4 - Long term work required within sixteen to thirty-five-year period that will prevent deterioration of the fabric or services.

.3 Risk Matrix

As part of the survey we have provided you with an asset priority scoring matrix which breaks down your condition rating further to identify further prioritisation within each rating. This will assist you in prioritising your immediate risk elements against your budget for capital maintenance itself.

The matrix is scored as follows:



Appendix B Faithful+Gould Option Appraisal Cost Plan Summaries


CENTRE SQUARE, MIDDLESBROUGH

Refurbishment of Existing Civic Centre

COST/M² OF GIFA 6,473 m²

BUILDING WORKS

0 Facilitating works £0 £0 £0.00 Allowed for seperately (£332,000 for asbestos removal and soft strip of Civic Centre)

1 Substructure £29,017 £0 £29,017 £4.48 Allowance made for remedial work

2 Superstructure £0

2.1 Frame £202,281 £0 £202,281 £31.25 Allowance made for remedial work

2.2 Upper floors £100,820 £0 £100,820 £15.58 Allowance made for remedial work

2.3 Roof £91,260 £0 £91,260 £14.10 New insulation / roof covering to meet building regulations

2.4 Stairs and ramps £17,500 £35,000 £52,500 £8.11 Allowance made for remedial work

2.5 External walls £2,043,450 £0 £2,043,450 £315.69 New curtain walling system to similar specification to new build, hung of existing upper floor and frame.

2.6 Windows and external doors £42,000 £15,000 £57,000 £8.81 Revolving entrance door included in scheme quality in lieu of sliding type

2.7 Internal walls and partitions £163,780 £0 £163,780 £25.30 New partitioning to core areas. Fit out excluded

2.8 Internal doors £77,280 £0 £77,280 £11.94 New internal doors throughout

3 Internal finishes £0

3.1 Wall finishes £36,330 £18,050 £54,380 £8.40 Paint throughout. Tile to wet areas. Uplift in quality of tiles in scheme quality. Retail area undecorated

3.2 Floor finishes £27,230 £394,824 £422,054 £65.20 Raised access floor and carpet to office space included as a scheme quality. By definition Cat B item. Retail area undecorated

3.3 Ceiling finishes £158,080 £0 £158,080 £24.42 Moisture resistant to wet areas. Retail area undecorated

4 Fittings, furnishings and equipment £0 £85,000 £85,000 £13.13 Reception desk and tea points on each floor

5 Services £3,178,999 £83,960 £3,262,959 £504.09 M&E cost uplifted to reflect retro fitting into existing structure. PV allowed for in scheme quality

6 Complete buildings and building units £0 £0 £0 £0.00

7 Works to existing buildings £0 £0 £0 £0.00

8 External works £257,762 £58,058 £315,820 £48.79 Hardstanding, associated drainage, services connections and bin/cycle store allowed. Uplift in paviour quality and planting in scheme quality

SUB-TOTAL: BUILDING WORKS £6,425,789 £689,892 £7,115,681 £1,099.29

9 Main contractor's preliminaries

9.1 Employer's requirements £44,200 £0 £44,200 £6.83

9.2 Main contractor's cost items £935,000 £85,000 £1,020,000 £157.58 55 weeks at £17,000/weeks allowed. Additional 5 weeks to scheme quality.

SUB-TOTAL: BUILDING WORKS (including main contractor's preliminaries) £7,404,989 £774,892 £8,179,881 £1,263.69

10 Main contractor's overheads and profit

10.1 Main contractor's overheads (2.5%) £185,125 £19,372 £204,497 £31.59

10.2 Main contractor's profit (2.5%) £185,125 £19,372 £204,497 £31.59

TOTAL: BUILDING WORKS ESTIMATE (A) £7,775,239 £813,636 £8,588,875 £1,326.88

PROJECT/ DESIGN TEAM FEES AND OTHER DEVELOPMENT/ PROJECT

11 Project/ design team fees £933,029 £97,636 £1,030,665 £159.23 Design Fees at 12.00% allowed. Increased due to conplex nature of refurbishment

12 Other development/ project costs £106,077 £0 £106,077 £16.39 Additional fees for planning, building control, survey work, and legal fees

TOTAL: PROJECT/ DESIGN TEAM FEES AND OTHER DEVELOPMENT/ PROJECT COST ESTIMATE (B)

£1,039,105 £97,636 £1,136,742 £175.61

BASE COST ESTIMATE (C) [C = A + B] £8,814,344 £911,273 £9,725,617 £1,502.49

13 TOTAL: RISK ALLOWANCE ESTIMATE (D) £1,065,656 £108,728 £1,174,384 £181.43 7.5% Design Contingency / 7.5% Contractors Contingency. Increased to reflext refurbishment work

COST LIMIT (excluding inflation) (E) [E = C + D] £9,880,000 £1,020,000 £10,900,000 £1,683.92

14 INFLATION

14.1 Tender Inflation excluded excluded excluded £0.00 Excluded

14.2 Construction Inflation excluded excluded excluded £0.00 Excluded

TOTAL INFLATION ALLOWANCE (F) £0 £0 £0 £0.00

COST LIMIT (excluding VAT assessment) (G) [G = E + F] £9,880,000 £1,020,000 £10,900,000 £1,683.92

VAT ASSESSMENT excluded excluded excluded excluded

Assumptions & Exclusions

Assumptions

Contractor's working area can be located in a reasonable position on site with unrestricted access.

Works undertaken in a single phase

No abnormal planning requirements.

No abnormal agreements with adjacent land owners.

Exclusions

Value Added Tax.

External works outside assumed red line boundary

]

Finance charges.

Loose furniture fit out;

Cat B Fit Out Works

Abnormal Costs

COST CODE

GROUP ELEMENT/ ELEMENT BASE

SCHEME QUALITY SCHEME

COMMENTS OUTLINE SPECIFICATION TOTAL

COST OF ELEMENT

BASE SCHEME91%

QUALITY SCHEME

9%

Project Cost Breakdown

BASE SCHEME QUALITY SCHEME

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

Project Cost Elemental Apportionment



New Civic Centre Building - Based on Ryder Space Planning

COST/M² OF GIFA 5,364 m²

BUILDING WORKS

0 Facilitating works £0 £0 £0 £0.00 Allowed for seperately (£546,000 for asbestos removal and demolition of Civic Centre)

1 Substructure £362,250 £0 £362,250 £67.53 Base scheme assume pad and strip foundations and includes reinforced concrete slab. Good ground conditions

2 Superstructure £0

2.1 Frame £670,500 £0 £670,500 £125.00 Steel frame assumed.

2.2 Upper floors £291,120 £0 £291,120 £54.27 Reinforced concrete upper floors on metal deck.

2.3 Roof £231,000 £200,000 £431,000 £80.35 Base scheme assume flat roof with single ply deck.

2.4 Stairs and ramps £60,000 £30,000 £90,000 £16.78Base scheme steel staircases with stainless steel balustrades. Allow extra over for high quality concrete staircases and glass infill to

balustrades.

2.5 External walls £1,437,250 £82,800 £1,520,050 £283.38Base Scheme: Allowance for 2.4m high ceilings and minimal service voids.

Quality Scheme: Allowance for 3m high ceiling and generous service voids

2.6 Windows and external doors £36,000 £15,000 £51,000 £9.51 Revolving entrance door included in scheme quality in lieu of sliding type

2.7 Internal walls and partitions £132,550 £17,650 £150,200 £28.00Base Scheme: Allow 2.4m high walls.

Quality Scheme: Allow 3m high walls

2.8 Internal doors £69,600 £0 £69,600 £12.98

3 Internal finishes £0

3.1 Wall finishes £18,600 £14,970 £33,570 £6.26 Paint throughout. Tile to wet areas. Uplift in quality of tiles in scheme quality. Retail area undecorated

3.2 Floor finishes £19,120 £287,948 £307,068 £57.25 Raised access floor and carpet to office space included as a scheme quality. By definition Cat B item. Retail area undecorated

3.3 Ceiling finishes £109,850 £0 £109,850 £20.48 Moisture resistant to wet areas. Retail area undecorated

4 Fittings, furnishings and equipment £0 £70,000 £70,000 £13.05 Reception desk and tea points on each floor

5 Services £2,411,308 £83,960 £2,495,268 £465.19 PV allowed for in scheme quality

6 Complete buildings and building units £0 £0 £0 £0.00

7 Works to existing buildings £0 £0 £0 £0.00

8 External works £251,930 £53,570 £305,500 £56.95 Hardstanding, associated drainage, services connections and bin/cycle store allowed. Uplift in paviour quality and planting in scheme quality

SUB-TOTAL: BUILDING WORKS £6,101,078 £855,899 £6,956,977 £1,296.98


9.1 Employer's requirements £37,400 £0 £37,400 £6.97

9.2 Main contractor's cost items £850,000 £102,000 £952,000 £177.48 50 weeks at £17,000/weeks allowed. Additional 6 weeks to scheme quality

SUB-TOTAL: BUILDING WORKS (including main contractor's preliminaries) £6,988,478 £957,899 £7,946,377 £1,481.43


10.1 Main contractor's overheads (2.5%) £174,712 £23,947 £198,659 £37.04

10.2 Main contractor's profit (2.5%) £174,712 £23,947 £198,659 £37.04

TOTAL: BUILDING WORKS ESTIMATE (A) £7,337,902 £1,005,794 £8,343,696 £1,555.50


11 Project/ design team fees £770,480 £105,608 £876,088 £163.33 Design Fees at 10.50% allowed

12 Other development/ project costs £100,384 £0 £100,384 £18.71 Additional fees for planning, building control, survey work, legal fees allowed

TOTAL: PROJECT/ DESIGN TEAM FEES AND OTHER DEVELOPMENT/ PROJECT COST ESTIMATE (B)

£870,863 £105,608 £976,472 £182.04

BASE COST ESTIMATE (C) [C = A + B] £8,208,765 £1,111,402 £9,320,167 £1,737.54

13 TOTAL: RISK ALLOWANCE ESTIMATE (D) £671,235 £88,598 £759,833 £141.65

COST LIMIT (excluding inflation) (E) [E = C + D] £8,880,000 £1,200,000 £10,080,000 £1,879.19

14 INFLATION

14.1 Tender Inflation (3Q17) excluded excluded excluded £0.00 Excluded

14.2 Construction Inflation (2Q18) excluded excluded excluded £0.00 Excluded

TOTAL INFLATION ALLOWANCE (F) £0 £0 £0 £0.00

COST LIMIT (excluding VAT assessment) (G) [G = E + F] £8,880,000 £1,200,000 £10,080,000 £1,879.19


Assumptions & Exclusions

Assumptions

Contractor's working area can be located in a reasonable position on site with unrestricted access.

Works undertaken in a single phase

No abnormal planning requirements.

No abnormal agreements with adjacent land owners.

Exclusions

Value Added Tax.

External works outside tassumed plot.

Land acquisition costs

Finance charges.

Loose furniture fit out;

Cat B Fit Out Works

Abnormal Costs

COST CODE

GROUP ELEMENT/ ELEMENT BASE

SCHEME QUALITY SCHEME

COMMENTS OUTLINE SPECIFICATION TOTAL

COST OF ELEMENT

BASE SCHEME88%

QUALITY SCHEME

12%

Project Cost Breakdown

BASE SCHEME QUALITY SCHEME

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

Project Cost Elemental Apportionment



Cat B Fit out Costs

Space Qty Unit Sub-Total Qty Unit Sub-Total Qty Unit Sub-Total Qty Unit Sub-Total

0 Open Plan (minimal cellular space) (based on NIA, all calculated at 85% of GIFA) 5,009 m² £300 £1,502,700 5,009 m² £500 £2,504,500 4,098 m² £300 £1,229,400 4,098 m² £500 £2,049,000 Minimal cellular space; based on NIA, all calculated at 85% of GIFA

1 Kitchens / Break out Space 200 m² £600 £120,000 200 m² £1,000 £200,000 150 m² £600 £90,000 150 m² £1,000 £150,000 1 per floor - say 5m² x 10m²

2 Tea Points 60 m² £400 £24,000 60 m² £750 £45,000 45 m² £400 £18,000 45 m² £750 £33,750 1 per floor - say 5 m² x 3m²

2.1Meeting Rooms (per floor (1 Nr 2.5m² x 2.5m² think tank, 1Nr 4.5m² x 4m² small meeting room and 1 Nr 7m² x 4m² large meeting room)

208 m² £1,100 £228,800 208 m² £2,000 £416,000 156 m² £1,100 £171,600 156 m² £2,000 £312,000 Per floor allowance; 1 Nr 2.5m² x 2.5m² think tank, 1Nr 4.5m² x 4m² small meeting room and 1 Nr 7m² x 4m² large meeting room

2.2 Comms Rooms (say 5m² x 5m²) 25 m² £2,700 £67,500 25 m² £3,500 £87,500 25 m² £2,700 £67,500 25 m² £3,500 £87,500 say 5m² x 5m²

SUB-TOTAL: FIT OUT 5,502 £1,943,000 5,502 £3,253,000 4,474 £1,576,500 4,474 £2,632,250


9.1 Employer's requirements Incl above Incl above Incl above Incl above Included in above rates

9.2 Main contractor's cost items Incl above Incl above Incl above Incl above Included in above rates

SUB-TOTAL: BUILDING WORKS (including main contractor's preliminaries) £1,943,000 £3,253,000 £1,576,500 £2,632,250


10.1 Main contractor's overheads (2.5%) Incl above Incl above Incl above Incl above

10.2 Main contractor's profit (2.5%) Incl above Incl above Incl above Incl above

TOTAL: BUILDING WORKS ESTIMATE (A) £1,943,000 £3,253,000 £1,576,500 £2,632,250


11 Project/ design team fees (7.5% fees) £145,725 £243,975 £118,238 £197,419 Design Fees at 7.50% allowed. Lower imout needed compared to Base Build

12 Other development/ project costs £0 £0 £0 £0

TOTAL: PROJECT/ DESIGN TEAM FEES AND OTHER DEVELOPMENT/ PROJECT COST ESTIMATE (B) £145,725 £243,975 £118,238 £197,419

BASE COST ESTIMATE (C) [C = A + B] £2,088,725 £3,496,975 £1,694,738 £2,829,669

13 TOTAL: RISK ALLOWANCE ESTIMATE (D) (10% allowance) £208,873 £349,698 £169,474 £282,967

13 ROUNDING £2,402 £3,327 £5,789 £7,364

COST LIMIT (excluding inflation) (E) [E = C + D] £2,300,000 £3,850,000 £1,870,000 £3,120,000

14 INFLATION

14.1 Tender Inflation excluded excluded excluded excluded Excluded

14.2 Construction Inflation excluded excluded excluded excluded Excluded

TOTAL INFLATION ALLOWANCE (F) £0 £0 £0 £0

COST LIMIT (excluding VAT assessment) (G) [G = E + F] £2,300,000 £3,850,000 £1,870,000 £3,120,000


Cost /m² £341.09 £570.96 £355.24 £592.71

COST CODE GROUP ELEMENT/ ELEMENT COMMENTS

Refurbished Civic Centre(6,473m² GIFA / 5,502 NIA)

Base Specification Quality Specification

Refurbished Civic Centre(5,264m² GIFA / 4,474 NIA)

Base Specification Quality Specification



Appendix C Nor-Dem Ltd and MGL Demolition Budget Quotations

Unit 15/16 Pallion Way, Sunderland, Tyne and Wear, SR4 6RJTel No: 0191 5673006 Fax No: 0191 5674428

Faithful + GouldClear water HouseThornaby-on-TeesTS176BJ

28th March 2017

Ref: 5681 - Middlesbrough Civic Centre

Quotation

Adrian

Further to your recent enquiry and our site visit we enclose our budget price for thedemolition works to the sum of;

Asbestos Removal - Civic Centre £98,000.00Complete Demolition - Civic Centre £350,000.00Complete Demolition - Middlesbrough House £225,000.00Soft Strip - Civic Centre £136,000.00

Our rates exclude any builders work, making good or preparing to receive new. Allservices must be terminated prior to our works commencing.

VAT will be charged at the current rate.

Should you have any queries, or require any further information, please do nothesitate to contact us.

Kind regards

Mark Brazier

Accredited Contractor

ationalsmolition

•(••raining

Nordem Ltd Co Reg - 3736796 Eastway 3 Pallion Industrial Estate Sunderland SR4 6SU Directors: P Rolfe G Lemon

VAT No 722102493

John Burford

Managing Surveyor

Faithful+Gould UK AND EUROPE T +44 (0) 191 272 5150 F +44 (0) 191 273 0158 E [email protected]

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