Issue - meetings

[Report of the Director for Housing, Regeneration and Planning.  To be introduced by the Cabinet Member for Housing and Estate Renewal]

This report seeks Cabinet approval to vary the existing contract for the Broadwater Farm District Heating system. The variation is required to cover delays caused by Covid.

The Cabinet Member for Housing and Estate Renewal introduced the report which sought approval for additional works and variations to the contract with Engie Ltd to provide a new district heating system and home improvements on the Broadwater Farm estate.

The Cabinet Member and David Sherrington, Director of Broadwater Farm, (Homes for Haringey) responded to questions from Councillor Cawley-Harrison:

-           A written response would be provided in relation to the carbon reduction that would be achieved as a result of the works.

-           There were no recent instances of residents left without heating or hot water.  However, if this were to occur at any stage of the works then residents would be provided with emergency heating.

Further to considering exempt information at item 30, 

RESOLVED to

1.      Approve the variation of the District Heating contract with Engie LTD of an additional £466,805, noting that the final amount to be paid in respect of £363,786 prolongation and, loss and expense, will be subject to approval by the Director of Finance. More details of the variations required are set out in sections 6.8 to 6.11 of the report.

2.      Delegate the approval of a maximum additional consultancy fees of £125,196.75to the Director of HRP and Director of Finance, as this is subject to further justification and legal review. These are as set out in paragraph 6.12 of the report.

3.      Approve the contingency sum as disclosed in the exempt report and related consultancy fees.

4.      Agree not to seek to recharge leaseholders their proportion of the cost of these works.

Reasons for decision

The works have progressed well and phase one of the original contract, the disconnection of gas boilers and construction of a temporary district heating system, was delivered on time avoiding a potential decant of nine blocks, despite a very challenging deadline.

The second phase has delivered a new district heating network and incorporated additional works, such as safety improvements and the installation of new kitchens and bathrooms, resulting in enhanced outcomes and reduced disruption for residents. The inclusion of these works resulted in significant savings by making use of the existing contractor relationship and achieving rapid mobilisation, less duplication and economies of scale. A full explanation and breakdown can be found in the previous cabinet report dated 8 October 2019 and further explanation is provided in Section 6 of the report.

The impact of COVID-19 on the project has been significant. Work was initially halted during the first national lockdown in March 2020 and following the lockdown, works could only proceed with significant changes to working practices, slowing progress and incurring additional costs. It was essential to establish safe systems of work to protect residents, site operatives and Council staff from the risks posed by the ongoing pandemic.

The additional measures implemented meant that less operatives could be accommodated in working spaces, thereby reducing productivity, and increasing the period required for the works. For example, only one person could work in a flat at any given time,  ...  view the full minutes text for item 501