Agenda item

Demolition of Tangmere block on Broadwater Farm - Award of Contract

Report of the Director for Housing, Regeneration and Planning. To be introduced by the Cabinet Member for House Building, Place-Making and Development.

 

Report to consider the award of contract to the preferred bidder for the demolition of the Tangmere housing block on the Broadwater Farm estate once vacant possession is achieved. This follows the Cabinet decision taken on 13 November 2018 to demolish the Tangmere and Northolt blocks.

Minutes:

The Cabinet Member for or House Building, Place-Making and Development introduced the report which sought approval to award a contract for the demolition of the Tangmere block on the Broadwater Farm Estate, following a compliant competitive tender process. The value of this contract was 2,043,115.00.

 

The Cabinet Member stated that, subject to a successful yes vote in the ballot of residents, the proposal would deliver 300 council homes and improvements to public areas of the estate. It was noted that all previous tenants had been rehoused and that the leasehold interests had been acquired. It was anticipated that the demolition would commence in March 2022 and that there would be some savings in terms of the security costs for the vacant building.

 

The Cabinet Member responded to questions from the Cabinet:

-       It was enquired whether the demolition of Tangmere and Northolt blocks could take place at the same time and whether this could happen later than currently scheduled. It was explained that this may not be possible as there were ongoing negotiations with some leaseholders in the Northolt block, that the demolition would have to be coordinated with the contractor, and that there was a need to coordinate all works across the estate. 

-       In relation to the carbon impact of the demolition, it was explained that the contractor would be required to undertake an audit of the process to determine what could be reused or repurposed. It was noted that there would likely be additional planning considerations, such as an environmental impact assessment. It was added that there may be environmental requirements in relation to demolitions but that the details would need to be confirmed with the Planning Team.

 

The Cabinet Member responded to questions from Councillor Barnes:

-       In relation to the ballot question for residents, it was noted that this would be designed to be a straightforward question. It was explained that the detailed wording had been delegated to the Director of Housing, Regeneration, and Planning and that details of the Cabinet report relating to this decision would be sent to Councillor Barnes. It was noted that the wording of the ballot question was still under development but that this would be published and shared once finalised.

-       In relation to the qualitative score of the selected tenderer (Tenderer A), it was explained that this tenderer had also delivered similar projects to a high standard and there was confidence that they had the necessary experience and ability to deliver the project. It was added that there would also be performance monitoring throughout the contract.

-       In relation to the strength of community engagement, it was commented that there had been significant engagement with residents and that there was demand for the project to commence.

 

Following consideration of the exempt information, it was

 

RESOLVED

 

1.    Pursuant to Contract Standing Order (CSO) 9.07.1(d), to approve the award of a contract to Tenderer A for demolition services (as described in the report) for the sum of £2,043,115.00.

 

2.    To agree an additional contingency budget, as detailed in the exempt report, along with provisional sums, as detailed in the exempt report, in addition to the agreed contract sum for any unforeseen costs arising from the demolition works.

 

3.    To agree a sum, as set out in the exempt report, for professional fees in relation to Ridge and Partners LLP.

 

Reasons for decision

 

The demolition of Tangmere was, following consultation with residents, agreed by Cabinet in November 2018. Since then, officers have worked to re-house secure tenants in the block and acquire leasehold interests. This was completed in December 2021 and the block is now vacant.

 

The building has 24-hour manned security which is costing the Council a significant amount every month, along with other costs associated with keeping an empty building. Timely award of contract and demolition will therefore reduce costs and liabilities for the Council.

 

Detailed and comprehensive surveys of the block have been undertaken, including asbestos and structural surveys, to ensure that an accurate price can be obtained from contractors and reduce the risk to the Council.

 

A compliant tender process has been undertaken via The London Construction Programme (LCP) DPS – Minor Works Framework. Five compliant bids have been received and quantitative and qualitative analysis has been undertaken by Officers and supported by Ridge & Partners LLP acting as Project Managers. The winning bid was fully compliant with requirements, scored highly on the quality submission and had the lowest price.

 

Alternative options considered

 

The option around the timing of these works could be considered – in as much as the demolition could be combined with the new homes programme.

 

It was agreed that the demolition contract will form a standalone project for the following reasons:

 

·         All residents have been decanted and the cost of maintaining security and managing the health and safety risks proved prohibitive.

·         The new homes programme was not at an advanced stage to enable the Council to meet its commitment to residents to demolish the block, therefore a standalone project was required to maintain programme.

·         A standalone demolition programme will enable the Council to engage a specialist contractor to remove hazardous materials and disconnect utilities, which will ultimately de-risk the site when handing over the development contractor.

 

In view of the above, the recommended option is to award a separate contract for the demolition of Tangmere.

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