This decision was made at the Key Decision meeting on April 8, where Conrad Hall, resource director, approved the recommendation.
The decision to involve GLL, a charitable social company that manages leisure centers under the best brand, was taken after suspending a previous acquisition exercise, since it was considered more effective.
A report was presented to Mr. Hall on capital works in Newham leisure centers.
In September 2017, the cabinet approved a 10 -year capital program with a budget of £ 9.9 million to improve the leisure centers of the municipality.
As part of this program, the Council conducted an acquisition exercise in early 2024 to ensure a mechanical and electric contractor of AST HAM, Newham and Atherton Leisure Centers.
The most economical tender received was £ 4,613,000.
However, the available budget was subsequently reduced to £ 4,303,000.
In April, the Newham Council concluded an leisure management contract with GLL to manage the operations of the leisure center.
As part of this contract, GLL would deliver a range of capital works to ensure that leisure centers remain compatible, open, operational and available for residents.
The report recommended that GLL carry out the mechanical and electrical capital that works in leisure centers for £ 3,118,000.
According to the report, this would be a value for money that the Council through a unique contract, due to the established GLL supply chains and the ability to accelerate the work according to their operations.
This would also reduce the risk of financial claims against the Council for loss of profits in case any work administered by the Council is delayed or the centers need to close for longer than planned.
The report indicated that the GLL estimate of £ 3,118,000 for mechanical, electrical and construction fabric works was £ 1,495,000 lower than the lowest tender received in the previous acquisition exercise for mechanical and electrical works alone.
The report also declared that the leisure management contract contains mechanisms to ensure that GLL obtains a better value when granting capital works, thus ensuring a value for money for the counter.
