The Executive Committee and I would like to update you all on the status of the Practice Area Project. The Project Team has now received tenders from a further 3 builders and also received a revised (lower) quote from the previously lowest bidder. Whilst all the quotations for the build, at the quality the Executive committee have decreed, are above the anticipated / estimated cost outlined in the original business case, The Executive is pleased to report that the overall costings are now more in line with the expected costings.
Original Business Case Total build cost (including 10% buffer) = £136,500 Payback with conservative assumptions = 8 years
Update Business Case Total build cost (including tendered figures) = £146,000 Payback with conservative assumptions = 9 years
The figures above have been adjusted to include VAT which we now know will not be recoverable. Clearly the total cost figure is higher than was first anticipated. However, the impact on the payback period is only marginal i.e. moves from 8 years to 9 years. Given, the life expectancy of the range will be in excess of 30 years – the Project Team believe that the business case is still sound. The Executive Committee have considered reducing the overall specification and quality of the build to keep the costings in line with the original business case. However and after much discussion it was felt that it was critical to produce a high quality facility in fitting with the overall quality of the Martello course and Felixstowe Ferry Golf Club in general. Therefore the conclusion is the Executive Committee wishes to proceed on this basis. The intention is to fund the additional costs partly from the VAT refund and partly from the general funds of the Club. The Executive Committee has concluded that they have the authority to proceed on this basis but are mindful that some members may not agree. Accordingly, if any member wishes to call for a further EGM in the light of this update, then they are requested to make this known to the General Manager no later than 12 midday Thursday 30th March 2017, at which time the next phase, including contracting, will commence.
David Spencer – General Manager
Michael R. Thomas – Chairman