This report seeks the approval of the Director of Finance and Section 151 Officer to disburse grant in aid (GiA) of £3m from the Environment Agency (EA) towards the West Kirby Flood Alleviation Project and to approve the necessary purchase orders to vary the council’s construction contract with Volkerstevin Ltd up to a maximum value of £17,273,533.  The recommendations require an urgent decision under Section 4 of the Constitution as a matter outside of the council’s budget policy framework, because there is an urgent need to make immediate contractual payments.

The Director of Finance (Section 151 Officer), has accepted additional grant in aid (GiA) of £3m from the Environment Agency (EA) and authorised with immediate effect that this be included in the council’s Capital Programme for defrayment solely upon the West Kirby Flood Alleviation Project.  The Section 151 Officer also decided to approve the necessary purchase orders to vary the council’s construction contract with Volkerstevin Ltd with immediate effect, up to a maximum contract sum of £17,273,533, subject to certificates issued by the independent contract Project Manager.

There is an urgent need to make immediate contractual payments and avoid potential significant costs for interest on late payment or litigation for breach of contract.

Either waiting until the next meeting of the Council or convening an Extraordinary Meeting of the Council are not practical in the circumstances.  Any delay in disbursing the grant in aid (GiA) funding and making it available for immediate defrayment towards contractual payments may render the council in breach of contract, liable for significant interest on late payments, and exposed to the risk of adjudication or litigation proceedings.