Decision ref
0036 2023/24
Decision date
31/10/2023
Portfolio
Children and Young People
Wards
All wards
Title
Purchasing Property - New children's homes
Summary
To appoint Property Surveyors to assist with the purchase of up to 4 properties on behalf of the Council as part of the sufficiency project to open new children's homes across the Borough. The agent will survey, value, negotiate, purchase and cover planning permissions in addition to providing a service to tender and appoint contractors in order to deliver a property fit for use.
Purpose
The report sets out the proposed mechanism to achieve property purchases in a timely manner in order that the policy approved by Cabinet to see 4 new children's homes open for St Helens children is achieved.
Cabinet has already approved the purchase, this report seeks authority to spend a proportion of the monies already approved in a way that was not in the original proposal.
Background
Cabinet approved the proposed purchase of four properties on 26th April 2023. The details are as follows:
- two four-bedroom properties and two three-bedroom properties will be purchased;
- the four-bedroom properties will each accommodate two young people, and the three-bedroom properties will each accommodate one young person;
Total funding of £1.440m has been allocated for the purchase of the four properties, based on an average cost of £360k per property;
in addition, total funding of £100k (£25k per property) has been allocated for any required refurbishment / fitting out;
the funding referred to above (£1.540m) is currently earmarked within our departmental capital programme.
In order to achieve the purchase of the properties it has been confirmed that colleagues within the Council are unable to complete surveys, valuation, negotiation and final contracting in a timely manner. As such it is necessary to out source this service.
A number of companies have been approached but the overall size of the project is said to be too small for several.
One company has been approached and set out their plan for achieving that which we require namely;
Inspecting properties identified, valuing, negotiating the purchase, taking to planning permissions,preparation of a schedule of works and arranging the contractor to complete same, carrying out the project management as required.
The fee proposal is as below;
1. Undertake inspection and prepare a valuation of for internal approval. £915
2. Enter negotiations on price subject to planning approval and necessary works to achieve Ofsted registration. 0.75% of purchase price
3. Arrange the submission of planning application Estimate to be provided based upon
nature of works
4. Prepare a specification of works and adaptations together with full costings Included in item 6
5. Prepare instructions to legal for conveyancing Inc. in Stage 2
6. Prepare a tender for works and appointment of contractor - Based on percentage value of
contract sum
Up to £30,000 @12%
Between £30,000 & £50,000 @11%
Between £50,000 & £100,000 @10%
Building Regulation fees are not
included.
7. Make the acquisition of fittings and furniture as required TBA
8. Carry out the Project Management of works and handover Included in item 6
The Director of Place services has recommended that this course of action be taken. The full proposal is contained in the attached document from the provider.
Conclusion
Subject to further meetings with the proposed provider, to ensure that the timeframes for delivery are acceptable, it is requested that the course of action and associated amendment to spend is approved
Risk Implications
None
Measures to Redress Risk
None
Declarations Of Interest
None
More information
Please contact Dominic Tumelty on 01744 673343
