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    Technical Notes 2024, Issue 168 - Twechar Canalside Affordable Housing

    • Report by:

      Alan Bauer, Executive Officer – Assets & Facilities

    • TN Number:

      168-24

    • Subject:

      Twechar Canalside Affordable Housing

    • Responsible Officer:

      Alan Bauer, Executive Officer – Assets & Facilities

    • Publication:

      This Technical Note will be published on the Council’s website following circulation to Members. Its contents may be disclosed or shared outwith the Council.

    Section

    1. The purpose of this Technical Note is to provide further detail on the estimated development costs associated with the Twechar Canalside Affordable Housing project.  At Council on Thursday 26th September, an update was provided on the pre-tender development cost for the project and approval provided to proceed to the next phase of the project, including the completion of a construction tender for the works.

    2. The forecast tendered construction cost for the project is £7,113,706.14.  The estimated construction-only cost per unit is £388k per unit and is comprised of the following abnormal elements:

    Passivhaus / Low CarbonIncludes insultation, Air Source Heat Pumps, Mechanical Ventilation Heat Recovery Units & PV Panels

    £36k per unit

    Site AbnormalsIncludes all works required to address underlying ground condition, such as retaining walls, ground gas protection measures and sub-structure design.£137k per unit

    3. Total costs associated with achieving Passivhaus accreditation for the project are estimated at £36k per unit.  Total abnormal costs are currently estimated at £137k per unit.  Deduction of abnormal costs results in an amended construction-only cost per unit of £251k.  This would be reduced further to £215k per unit were Passivhaus measures to be removed.

    4. In addition to construction costs, other costs incurred through the development include design fees, contractor overheads and profit, professional fees, risk and contingency.  These will be added to the construction cost to provide a total development cost for the project.

    5. As confirmed in September’s Council Report, the next step for the project is to undertake a full construction tender for the proposals and to report back to a future Council meeting on those final tendered development costs and financial viability in the context of the wider HRA Business Plan.