To update Cabinet on the Milton Road and Victoria Street schemes following completion of a competitive tender process identifying a preferred bidder.

RESOLVED that Cabinet -

(a)     notes and welcomes the progress on the second procurement exercise in securing a high level of interest from the market and a Preferred Bidder, and enacting the lessons learned from the previous exercise;

(b)     reinforces its ongoing commitment relating to the use and management of the Milton Road and Victoria Street sites, with Milton Road retained for public car parking provision, and the Victoria Street sites retained for housing purposes and being retained within the Housing Revenue Account (together with associated car parking provision), with no current intention to appropriate or dispose of any of the sites; and

(c)     notes and supports the progression of the project to the next stage, including entry into a Pre-Construction Services Agreement (PCSA) with the preferred bidder, in accordance with the existing operational delegated authority.

Cabinet considered a report of the Economic Growth, Regeneration & Tourism Portfolio Holder (A.3) which updated it on the Milton Road and Victoria Street schemes following completion of a competitive tender process identifying a preferred bidder.

Members recalled that the Homes for Dovercourt scheme was one part of the regeneration of Harwich town centre along the peninsula corridor from Dovercourt seafront to the Dovercourt station. A refurbished library with new accessible skills centre was already complete; upgrades to the town centre’s public realm and connection to the seafront were underway, and with this scheme, new social housing and improved car parking was planned. This suite of regeneration projects was expected to revitalise the town, improve outcomes for residents and encourage private sector investment ahead of the planned arrival of the Freeport East Green Energy Hub at Bathside Bay.

The Homes for Dovercourt scheme would also see two disused and derelict sites in Dovercourt transformed by the Council, building on the Dovercourt Revisited masterplan that is:- 

·      At Milton Road, a derelict car park would be refurbished to provide a modern, fit-for-purpose car parking provision, with EV charging, cycle storage, soft landscaping and decorative railings celebrating local heritage;

·      At Victoria Street, the site of the historic Victoria Hotel would be rebuilt, echoing the history of the site’s design and Conservation Area, to provide eight new affordable homes and amenity space.  

It was reported that the project would deliver an estimated £1.04m in Social Value, including four local employment opportunities, 52 apprenticeship weeks and student placement opportunities, c.£970,000 of local supply chain spend, alongside wider community and environmental benefits

A summary of progress made to date, including design, planning and procurement milestones and recent updates following the March 2026 Cabinet report, was as follows:-

·      RIBA Stage 3 design completed, and planning permission secured (Feb–Apr 2025);

·      An initial tender exercise undertaken in 2025 had not achieved a viable outcome;

·      The procurement strategy was revised to a two-stage approach to improve cost certainty, supported by a pre-market engagement exercise;

·      Second procurement (April – May 2026) had attracted strong interest (13 submissions, 12 compliant);

·      The tender evaluation had now been completed and a preferred contractor identified; and

·      Project funding had been confirmed in the Council’s Capital Programme within the April 2026 Cabinet Finance Report.

Cabinet was informed that the Corporate Director (Place & Wellbeing) would use his delegated authority to enter into a Pre-Construction Services Agreement (PCSA) with the preferred contractor, in consultation with the relevant Portfolio Holders.

Through the PCSA, the contractor would work with the Council to finalise the design, delivery approach and cost. This would help manage risks early and improve cost certainty. A final construction price was expected in September 2026 and, if within budget, would be subject to a further Officer decision, in consultation with relevant Portfolio Holders.

The procurement process had identified a preferred bidder and included:

·      A fixed cost of the PCSA stage of £69,300 (excluding of VAT);

·      An estimate of the main works cost which would be refined during the PCSA period;

·      A programme for completion of the works, which fell well within the funding envelope, and aligned with the above forecast for agreement of the main contract sum. The programme included the early completion of Milton Road Car Park.

Cabinet was advised that the price submitted for the tender return was within the budget of £3.798m allocated to this project in the General Fund Capital Programme. A contingency of 10% had been included within the budget as a buffer against any potential cost over runs. The PCSA stage provided a defined period to work collaboratively with the appointed contractor and wider supply chain to refine the design, test buildability and progress value engineering, with the aim of reducing costs and securing a deliverable scheme within the available funding envelope.

Recognising that the appointment of a contractor under a PCSA would enable the Council to work collaboratively with the contractor to refine the design, manage risk and develop a robust and deliverable contract sum:-

It was moved by Councillor Henderson, seconded by Councillor Kotz and:-

RESOLVED that Cabinet -

(a)     notes and welcomes the progress on the second procurement exercise in securing a high level of interest from the market and a Preferred Bidder, and enacting the lessons learned from the previous exercise;

(b)     reinforces its ongoing commitment relating to the use and management of the Milton Road and Victoria Street sites, with Milton Road retained for public car parking provision, and the Victoria Street sites retained for housing purposes and being retained within the Housing Revenue Account (together with associated car parking provision), with no current intention to appropriate or dispose of any of the sites; and

(c)     notes and supports the progression of the project to the next stage, including entry into a Pre-Construction Services Agreement (PCSA) with the preferred bidder, in accordance with the existing operational delegated authority.