Delivery Assurance Group (DAG) report: quarter 1 2022 to 2023

Section 1: Overview

Year 2 Tier 2 Investment to the end of Q1 2022-23 was £147m made up of planned repair and refurbishment (£101m), enhancement (including flooding) (£32m) and growth (£14m). It includes £15m invested on the delivery of projects that were planned to be completed in the previous period.

This level of Tier 2 investment was £5m below the central of forecast (£152m) and we are forecasting that we should hit our Delivery plan forecast of £645m within the forecast range of £620m to £690m at year end. Investment in responsive repair and refurbishment of assets and RCC (Tier 1a) for Q1 2022-23 was £36m.

Our key performance indicator (IPOD) remains within the target range.

Delivery Risks

We continue to monitor the 3 broad categories of risks that may impact our forecasts.

• Third Party risk: Potential delays due to third-party issues.
• Construction risk: Unforeseen delays from allowable events or poor performance on site.
• Construction market conditions.

The key risk continues to be construction market conditions as noted below.

Construction market conditions: These continue to change and evolve rapidly - cost pressures and availability of materials, labour, and commodities are challenging, the key areas of note are:

• Price and availability of materials and commodities: - Our procurement teams monitor all of our frameworks fortnightly to assess and mitigate the impact.
• Planning: - Our delivery teams continue to consider resequencing project design, planning and procurement following extension in lead times for some projects.
• Resourcing and Skills: - Our partners are seeing higher than normal staff turnover levels and shortages.