Issue - meetings

Report of the Director of Placemaking and Housing. To be introduced by the Cabinet Member for Council Housebuilding, Placemaking, and Local Economy.

The report will seek Cabinet approval to increase total scheme budget.

Cllr Carlin left the meeting room at 19.48, in accordance with her earlier declaration of interest.

The Cabinet Member for Council House Building, Placemaking, and Local Economy introduced the report, which sought approval to increase the total scheme budget and agreement of a new contractor to complete construction of five Council homes on the Council owned land at Nightingale Lane (NGL), N8 and St. Mary’s Close (SMC), N17.

The Cabinet Member outlined that the Council had worked hard with the original contractor to resolve ongoing issues. However, the Council had terminated the contract earlier this year due to repeated underperformance on behalf of the contractor. It was now necessary to appoint a new contractor to complete the works on these homes, which would incur an additional cost in line with inflation and rising building costs. The housing schemes provide much-needed homes for five households.

In response to a question from Cllr Cawley – Harrison, it was noted that there is a constant review of the contractor performance and detail considered from project managers and clerk of works. It was noted that over 4300 construction firms in this sector had become insolvent and considering this context, the Council were not as exposed as other organisations. The original contractor had underpriced their bids and then with the increase in inflation had not been able to manage their contracts. There had been a contract performance bond in place and the Council would expect to receive a good reimbursement of funds.

Further to considering exempt information at item 25,

RESOLVED

1.    To approve increase in total scheme budget as described in Appendix 1 - Part B Exempt of this report in order to complete the works to the newly constructed homes.

2.    To approve pursuant to the Council’s Contract Standing Orders (CSO) 9.07.01a, the appointment of Contractor A (named in the Appendix 1 - Part B Exempt part of the report)to undertake building works to complete the provision of five Council rented homes at 42 Nightingale Lane, N8 and 5 & 7 St. Mary’s Close, N17 for a total contract sum of £205,359.

3.    To approve the scheme contingency sum as set out in the Appendix 1 - Part B Exempt.

4.    To approve issuance of the Letter of Intent to the 10% of the contract value as allowed under CSO 9.07.3 to expedite the works in advance of execution of the contract.

Reasons for decisions

In September 2020 Cabinet approved the award of a JCT Design and Build contract with the Contractor B to deliver 2 x 3 bed homes at St Mary’s Close and 2 x 1 bed and 1 x 2 bed flats at Nightingale Lane with approved budget as outlined in Appendix 1 Part B exempt information.

The works started on both sites in January 2021. In autumn 2021, the Council first became concerned about the Contractor’s overall performance. From autumn 2021 and throughout 2022 Council officers successfully worked with the Contractor B to improve their performance through weekly  ...  view the full minutes text for item 17