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ADD2731 Dock wall condition survey

Key information

Decision type: Assistant Director

Directorate: Housing and Land

Reference code: ADD2731

Date signed:

Date published:

Decision by: Simon Powell, Assistant Director of Strategic Projects and Property

Executive summary

GLA Land & Property (GLAP) is the freeholder of the Royal Docks and has leased the water and some land to the Royal Docks Management Authority (RoDMA) under a 225-year lease. The bulk of the dock walls are included within the long leaseholds of the developments around the Royal Docks, but they are insured in a single policy procured by RoDMA with the leaseholders reimbursing RoDMA for the cost.
As GLAP retains ultimate responsibility for the Royal Docks and the dock walls (as well as still owning some of them), it is important to ensure that the insurance cover is sufficient and based on the best available information about the condition of the dock walls. Therefore, GLAP is proposing to instruct engineers to provide better detail to inform the next annual insurance cover. 
The proposal is to appoint Buro Happold Engineering (via a call- off from TfL Engineering Framework for relevant services) to conduct a condition survey of 1,900m of the dock wall retained by GLAP as freeholder. The survey will provide a visual account of the existing condition of repair and will advise on the next steps. 
The report will assist with planned maintenance of the asset, the next insurance policy, and will inform specifications for upcoming procurement exercises of the retained assets.   
 

Decision

That the Assistant Director of Land and Development approves:
•    the revised expenditure of £25,000 for a visual condition survey of GLAP’s retained dock walls at the Royal Docks. 
 

Part 1: Non-confidential facts and advice

1.1.    The Royal Docks were constructed between 1855 and 1921 with a variety of intervening and subsequent modifications and adjustments. The main dock walls are therefore made up of multiple different designs, ages, structures, and are consequently of varying condition.
1.2.    The freehold of the Royal Docks (the water, dock walls, and immediately adjacent land) is, with only minor exceptions, owned by GLAP. As part of the early regeneration of the Royal Docks after the withdrawal of maritime trade, the London Docklands Development Corporation (LDDC) established the Royal Docks Management Authority (RoDMA) to which it granted the long leasehold of the water and some land parcels for stewardship. Since the LDDC programme the approach has been to enable development through the granting of long leaseholds of land in the surrounding area of the water with the public sector (LDDC, London Development Agency, GLAP) retaining the freehold. The long leaseholds often include the dock walls with RoDMA being responsible for the water. This transfers risk from GLAP to the development sites for the condition of the dock walls.
1.3.    GLAP does however retain a lot of the dock wall where the redevelopment area does not naturally abut the water area or where redevelopment has not yet taken place. This includes the northern and eastern edges of Royal Albert Dock and parts of the southern and western edges of Royal Victoria Dock. These walls will be transferred to developers as they draw down long leasehold interests, but this may take 15 to 20 years. In the intervening period, GLAP retains liability.
1.4.    The dock walls are insured by RoDMA on behalf of all the long leaseholders and GLAP, under a single policy which is then charged back. Following a review of this insurance policy, GLAP officers recommend that a review of the dock walls in GLAP’s ownership should be undertaken to ensure it is adequate. There is no indication of any major structural issues (other than known issues) or any deficiency in the insurance but given the passage of time, the scale of GLAP’s retained dock walls, and the potential consequences, that a reassessment should be undertaken.
1.5.    This report seeks the approval for a condition survey of GLAP’s retained dock wall by commissioning Buro Happold Engineering from a call-off from the TfL Engineering framework. This is a visual survey which will cost up to £25,000 which comprises of a quote for £21,700 for the condition survey by two Engineers producing a final report and £2,000 for boat hire including a contingent sum of £1,300.
 

2.1.    This work has been discussed with RoDMA and with GLAP’s insurance team. This has been to ensure that RoDMA’s expertise and experience is taken into account and that the end result is sufficient for the insurance team to feed into a revised policy should that be necessary. 
2.2.    The scope of the work has then been developed in partnership with Buro Happold Engineering (BHE) who are experienced marine engineers and have advised GLAP previously on river edge development in the Royal Docks. BHE are on one of TfL’s pre-procured Frameworks and can be appointed for this piece of work, as per the rules of that framework.
2.3.    The report produced by BHE will provide GLAP with an up-to-date assessment of the dock walls under its ownership and responsibility as well as highlighting any issues or considerations about maintenance or repair. It will also ensure that the RoDMA insurance policy can be adjusted (if required) to take account of the survey to ensure that the cover is as comprehensive as possible and appropriately protects GLAP in the event of needing to make a claim.
2.4.    In addition, the information in the survey will also provide GLAP will better information to pass to existing or future development partners. This includes the forthcoming procurement of a development partner for the Royal Albert Dock site.
 

3.1.    The purpose of this project is to provide a safe environment for all who live, work and use the Royal Docks which is located in the London Borough of Newham. Newham has a very diverse population and the dock wall is an important part of the Royal Docks. 
3.2.    Under section 149 of the Equality Act 2010, the Mayor and GLA are subject to the public sector equality duty and must have due regard to the need to: 
•    eliminate unlawful discrimination, harassment and victimisation; 
•    advance equality of opportunity between people who share a relevant protected characteristic and          
•    those who do not; and 
•    foster good relations between people who share a relevant protected characteristic and those who do not. 
3.3.    This investment will support the planned placed based projects in the Royal Docks Delivery Plan (2024-2029) and the measures of success such as increased levels of engagement and participation of the six neighbourhoods identified around the Royal Docks. 
 

4.1.    This condition survey will highlight information from the recommendation which will support asset maintenance plans for the Royal Docks and any procurement exercise for future partners of the residual assets.
Key risks and issues
4.2.    There has been concern over the years about the strength of the dock wall as a structure and whether GLAP as the freeholder is holding an unknown liability. In 2018, a condition report identified areas for due diligence works of the Royal Docks assets, but the work was not commissioned. This increases the level of uncertainty about the current condition of the areas to be surveyed. 
Conflicts of interest
4.3.    No conflicts of interests have been identified for any officers involved in the development of this proposal or drafting or clearance of this decision form. 
Links to Mayoral strategies and priorities
4.4.    The Mayor launched the five-year Royal Docks Delivery Plan (2024-2029) which aims to unlock the full potential of the Royal Docks as a thriving part of London setting a new standard in sustainable living.  The Royal docks was once the largest enclosed docks in the world and is being transformed into an iconic new waterfront. 
 

5.1.    This expenditure has become necessary to assess and negotiate the appropriate level of insurance cover required to limit GLAP’s exposure and assess the strength of the wall in place.
5.2.    There is no provision for the £25k expenditure both in the fiscal budget and the business plan to enable the required work to be carried out as such, this spend will marginally impact the forecast surplus for this year.
 

6.1.    Activity Timeline:

Activity

Timeline

Call-off framework

September 2024

Survey conducted

October 2024

Survey report provided

November 2024

Review by GLAP’s insurance team and RoDMA

November 2024

Signed decision document

ADD2731 Dock wall condition survey

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