Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: October 7, 2025

Purpose: Cabinet is recommended to:   (1)  Note the opportunity to ensure this strategically important pan London scheme is built, subject to planning permission and future governance, and that quality, cost, programme and engagement related to this are well managed throughout the process through the council taking a direct lead over design and build. (2)  Approve the council taking on the development manager role to design and build the LSCH, details of which are set out in paragraph 3.10-3.11 working alongside the London Councils project team to deliver the LSCH on behalf of London LAs. (3)  Note that, although design and build costs will be met through grant funding provided by DfE, taking on the development manager role does have an element of capital cost risk (see Exempt Appendix 3) . The intention is for this risk to be mitigated by entering into legally binding agreements with London LAs to share residual capital costs and these agreements would need to be entered into before the main works contract is signed. (4)  Approve an initial project delivery budget of £X to cover design, technical and other consultant fees, surveys and staff costs. These costs will be fully covered by the DfE. (5)  Delegate authority to the Corporate Director – of Capital Strategy & Delivery: •            To proceed with the procurement of projects •            To award contracts   (6)  Delegate Authority to the Strategic Director of Place in consultation with the Strategic Director of Resources to enter into any legal agreements with the DfE and other LAs in relation to the design and build arrangements for this scheme.  

Content: Cabinet:   (1)          agreed to the council taking on the development manager role to design and build the LSCH, details of which are set out in paragraphs 3.10 - 3.11 of the report, working alongside the London Councils project team to deliver the project on behalf of London Local Authoritys (LAs);   (2)          noted that, as per paragraphs 7.1 - 7.6 of the report, although design and build costs will be met through grant funding provided by the Department for Education (DfE), taking on the development manager role does have an element of capital cost risk. The council’s continuing role as development manager is subject to the London LAs entering into legally binding agreements with the council to share the residual capital costs and these agreements would need to be entered into before the main works contract is signed;   (3)          agreed an initial project delivery budget of £3.7m to cover design, technical and other consultant fees, surveys and staff costs. These costs will be fully covered by the DfE;   (4)          delegated authority to the Corporate Director of Capital Strategy & Delivery: ·         to proceed with the procurement of design and technical consultants required to complete the project; and ·         to award contracts.   (5)          delegated authority to the Strategic Director of Place in consultation with the Strategic Director of Resources and the Corporate Director of Governance and Law to enter into any legal agreements with the DfE and other LAs in relation to the design and build arrangements for this scheme, including for cost risk sharing.   Options & Alternatives Considered The council could decide not to take on the development manager role and lead the design and build of the scheme. The risk of not taking on the role would further delay the delivery of this strategically important pan London residential provision and the due diligence review of the scheme undertaken has satisfied the council that the risks identified of taking on the scheme can be mitigated.