{"id":519994,"date":"2025-05-09T12:45:27","date_gmt":"2025-05-09T11:45:27","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=519994"},"modified":"2025-05-08T10:57:01","modified_gmt":"2025-05-08T09:57:01","slug":"morgan-sindall-school-job-moves-ahead-despite-potential-cost-hike","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/buildings\/morgan-sindall-school-job-moves-ahead-despite-potential-cost-hike-09-05-2025\/","title":{"rendered":"Morgan Sindall school job moves ahead despite potential cost hike"},"content":{"rendered":"

A school that is being delivered in South Wales by Morgan Sindall has been given the go-ahead, despite a potential cost overrun of almost \u00a35m.<\/span><\/p>\n

The total construction cost for St Richard Gwyn High School in Barry was estimated at \u00a359m when Vale of Glamorgan Council invited tenders last spring.<\/span><\/p>\n

However, in the second-stage proposal provided by<\/span> Morgan Sindall<\/span><\/a> in March this year, which included the costs for all work packages on the project, the total returned by subcontractors came to \u00a363.9m.<\/span><\/p>\n

The contractor had issued the tender to the subcontractors on a \u2018not-to-exceed\u2019 rather than a competitive basis, the council said.<\/span><\/p>\n

\u201cThis is over the \u00a359m construction cost that we had originally anticipated,\u201d cabinet member for education, arts and the Welsh language, Rhiannon Birch, told a meeting of the council this week.<\/span><\/p>\n

She noted that the cost of building supplies and skilled labour had both increased.<\/span><\/p>\n

\u201cHowever, there is an opportunity to bring this figure down when undertaking value engineering throughout project delivery,\u201d said Birch.<\/span><\/p>\n

The revised cost estimate would see the council \u2013 which is funding the scheme jointly with the Welsh Government \u2013 borrow \u00a33.9m.<\/span><\/p>\n

This would result in a total revenue repayment cost of around \u00a3162,000 annually over the next 50 years, the council heard.<\/span><\/p>\n

A competitive tender is expected to take place with the contractor\u2019s supply chain to fine-tune price estimates once the design for the school has been completed, the council said.<\/span><\/p>\n

\u201cMorgan Sindall will be going out to the market over the next two months for all cost packages under a competitive-tender scenario,\u201d Birch said.<\/span><\/p>\n

\u201c[Current] costs are based on worst-case scenario; from discussion with relevant stakeholders, the \u2018not to exceed\u2019 figure will reduce to align with the available budget.\u201d<\/span><\/p>\n

Other approaches would also be considered to ensure the project stayed within budget, she added.<\/span><\/p>\n

The council gave its approval for the full business case for the scheme to be submitted to the Welsh Government.<\/span><\/p>\n

Morgan Sindall has been approached for comment.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A school that is being delivered in South Wales by Morgan Sindall has been given the go-ahead, despite a potential cost overrun of almost \u00a35m. The total construction cost for St Richard Gwyn High School in Barry was estimated at \u00a359m when Vale of Glamorgan Council invited tenders last spring. However, in the second-stage proposal …<\/p>\n","protected":false},"author":130832,"featured_media":491208,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[547,540],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n