Members of Manchester City Council's Executive are to be updated on progress with the council's two major construction-type projects.
A report to the Executive, which meets on Wednesday 3 June, notes that work is continuing on the Our Town Hall project - to repair, partially restore and safeguard the iconic Town Hall while bringing it up to modern access and safety standards - and construction of world-leading arts space The Factory during the coronavirus lockdown period.
Construction work is allowed to continue under government guidelines providing social distancing practices are observed and these have been scrutinised to ensure the safety of all involved.
However, the need to follow such practices carefully has inevitably meant that work has slowed somewhat.
In the case of the Our Town Hall project, this means that the Notice to Proceed for the main construction works has been slowed down to enable the management contractor and the Council to assess the potential impact on productivity and programme of the Covid-19 pandemic.
In the case of The Factory it means that only the core team are currently on site, although appointing contractors for the next rounds of works is still progressing.
As part of ongoing monitoring of these important projects, both have been re-assessed in line with continuing high current construction market inflation rates.
The Our Town Hall project budget is unaffected since the contingency plan was recently updated at the completion of the project design stage. However, ongoing inflationary pressures mean the Factory budget will be increased by £10m, taking the Council's contribution to around £50m.
Central Manchester continues to experience a construction boom with a record number of sites under construction. As a result construction inflation, which was expected to peak at the end of 2019, remains high - up to seven per cent at points last year. The Factory is not unique in requiring further funding to recognise the impact which inflation will have on its ultimate cost. For example, earlier this year further funding was approved for the scheme to improve Abraham Moss Leisure Centre for the same reason.
The extra one-off funding will be taken from an allowance built into the capital budget for inflation so will not impact on other projects or services.
National funding sources, including £78m from the Treasury and £7m in lottery funding still make up the largest part of the budget.
Sir Richard Leese, Leader of Manchester City Council, said: "In the midst of this pandemic, it is more important than ever that we keep building for the future. Whether that is safeguarding an historical gem for future generations or creating a new world-class attraction, these investments will help underpin Manchester's economic recovery.
"It is estimated that The Factory alone will deliver economic benefits of £1.1bn over a decade, creating 1,500 new jobs in the process as well as providing a rich source of creative training and inspiration. Culture plays a dynamic role in the life of this city.
"It is also acting as the anchor for the wider St John's creative neighbourhood which will accommodate up to 6,000 jobs."
About The Factory
The Factory is a world-class cultural space being built in the heart of Manchester. It will be the permanent home of Manchester International Festival and commission and present the world’s most exciting artists in an ambitious year-round programme, attracting up to 850,000 visitors annually.
It will play a key role in the life of the people across the city, bringing 1,500 full time jobs and adding up to £1.1 billion to Manchester’s economy over a decade. Its pioneering programme of skills, training and engagement will benefit local people and the next generation of creative talent from all over the city. Located in the St John’s neighbourhood next to the River Irwell, The Factory is also at the heart of a city centre hub for culture, creativity and digital innovation.
A building like no other, the Factory’s unique structure is designed by world-leading architects Office for Metropolitan Architecture (OMA), founded by Rem Koolhaas. Their first major, permanent cultural building in the UK, at 13,300 square metres it will provide space for artists to make work of unprecedented ambition and scale. Open year-round, the building will be highly flexible, hosting everything from major exhibitions and epic concerts to intimate performances and immersive experiences, including dance, theatre, music, opera, visual arts, popular culture and innovative contemporary work incorporating the latest digital technologies.