South Park Pavilion Risk Register
South Park Pavilion Risk Register- Approved at Full Council 25th March 2024
The matrix below is used to give a score to each risk. This document is reviewed annually at a minimum
.
|
Risk No. |
Description |
Impact |
Likelihood Score | Impact Score | Risk Rating |
Control |
Review Date and Response |
| 1 | Funding | Insufficient funding will mean that the project cannot go ahead. | 1 | 3 | 3 | The Council has EMR reserves for the project.
Grants and funding bids are being made. Local businesses have been invited to contribute. PWL is being applied for |
Loan application submit Mar 24 |
| 2 | Rising Costs of construction | Costs of construction have risen considerably and therefore the cost of construction has increased. Continued rising costs once construction starts could affect the project build. | 3 | 2 | 6 | The Council have a Quantity Surveyor for the project who advises on costs and future costs.
The Council approved using a Stage 2 tender process with a Agreed Maximum Price. Advice from the architects is this approach has worked for them on many builds and is the correct approach in the current financial climate. Specialist procurement company has been engaged for tender documents. Contingency has been built into the construction budget. |
Tender is currently being drafted and will be out by April 24 |
| 3 | Tender Process | Ensure a fair and correct process | 1 | 3 | 3 | All parties that will contract on behalf of the council will follow council standing orders for contracts.
As a Stage 2 tender process will be used contractors are provided with this document and Town Clerk will verify tender. Specialist procurement company has been engaged for tender documents. |
|
| 4 | VAT | If VAT applies it will add significant expenses to the budget | 2 | 2 | 4 | Advice is being sought from expert S.Parkinson to ensure appropriate information around VAT and the construction plus on going costs. | Council has agreed to opt to tax. |
| 5 | Running of the building once built | How the building is run and by whom will have impact on the VAT | 3 | 2 | 6 | Engaging expert advice from Steve Parkinson to understand all of the implications of VAT has led on option to tax.
Ensuring that the building is commercially successful, therefore advice is also sought from local hospitality specialists. Using footfall figures, working with local hospitality operators, guides from UK Hospitality, net income is predicted to cover the costs of running the building. The Council are looking to operate the building with a provider in a ‘hybrid model’ |
Ongoing work for Council to find and work with the right provider |