The flood alleviation scheme was included in the 2020/21 Public Realm Annual Plan which was approved by the cabinet member for Infrastructure and Transport on 29 April 2020.

http://councillors.herefordshire.gov.uk/mgIssueHistoryHome.aspx?IId=50033120

A Record of Officer Decision taken 26 October 2020 approved the commencement of the construction and confirmed funding as follows through a combination of S106 contribution, funding from the Environment Agency in the form of Grant in Aid and Local Levy funding and through the councils capital programme as part of investment in the highway asset infrastructure.

• S106 contribution – £510,530
• FCRM GiA / Local Levy funding – £298,864
• Council’s capital programmes – £380,000

The overall forecast scheme cost including contingency at the time of the October 2020 decision was £1,189,394.

The decision confirmed costs associated with the commissioning of the construction works through the public realm contract were £854,083, and an allocation for risk and contingency of £86,805. This gave a construction budget of £940,888.

http://councillors.herefordshire.gov.uk/ieDecisionDetails.aspx?ID=7289

Costs of £44,500 for pre-construction scheme development were not included within the S106 spend to date figure within the 26 October 2020 decision. These additional pre-construction costs meant the available contingency was £42,305.

The updated forecast outturn for construction is now £1,000,819. As construction works have progressed a number of risks have been realised which has increased costs above the original risk allowances. These risks include but are not limited to unknown services clashes and diversion works and associated programme delays and reinstatement works forming part of the landowner legal agreements.

On 9 September 2020 a decision was taken to enter into deeds of easement and a licence for temporary occupation with landowners to enable the construction, use and future maintenance of the works comprising the Lea FAS. The decision approved the payment of reasonable compensation, licence fee and professional fees including VAT incurred by landowners and the council in preparation of the agreements, within a budget of £80,000.

http://councillors.herefordshire.gov.uk/mgIssueHistoryHome.aspx?IId=50035113

In completing the necessary agreements, further costs have been identified for professional fees and compensation. The updated forecast outturn for these associated costs is now £94,000 (excluding VAT).

This decision enables the allocation of further funding of £140,000 to the original scheme budget of £1,189,394 to enable completion of the scheme, to give a total overall scheme budget of £1,329,394. This budget includes spend to date, the updated forecasts for construction and legal costs and contingency of £27,000.

This additional £140,000 funding will be allocated from contract annual efficiencies savings and under spend of internal staff fess within the Local Transport Plan funding 2020/21 Public Realm Annual Plan giving a scheme budget split as follows:

• S106 contribution – £510,530
• FCRM GiA / Local Levy funding – £298,864
• Council’s capital programmes – £380,000
• Local Transport Plan - £140,000