Agenda item

In line with Contract Standing Order (CSO) 16.02, the report sought approval from the Cabinet Member for Placemaking and the Local Economy to award a contract to Tenderer A in the sum of £725,345.00 for the strip-out of the Northolt tower block on the Broadwater Farm Estate.

The works were designed to de-risk the future demolition of the block by removing asbestos, electrical and water services, decommissioning the passenger lifts, removing all fixtures and fittings, and coordinating the removal of other services with statutory bodies such and UKPN and Thames Water. By undertaking these works now, the Council would remove all risk items when handing over the building to the demolition contractor.

The Cabinet Member RESOLVED

1. In line with Contract Standing Order (CSO) 16.02, to approve the award of contract to Tenderer A (as set out in Appendix A of the report), to a total value of £725,345.00.

2. To delegate authority to the Director of Broadwater Farm Estate, in consultation with the Director of Finance, to authorise and expend sums as set out within the exempt part of the report.

3. To delegate authority to the Director of Broadwater Farm Estate in consultation with the Director of Finance, to extend the contract period from July 2026 to December 2026 if required due to unforeseen works and other relevant reasons to extend the contract.

4. To approve issuance of a letter of intent up to the value of £100,000.00 prior to issuing a formal contract. The Letter of Intent will enable the contractor to place an order with their supply chain to enable the programme to be met.

Reasons for decision

The regeneration of the Broadwater Farm Estate would see the construction of 294 new homes across the estate. Once demolished, the Northolt block and surrounding areas will see a total of 68 new homes constructed on the site.

The development of the Northolt site will commence May 2028 and complete June 2031. To ensure the block was demolished and the site cleared and ready for hand over to the appointed new homes contractor - the Council needed to ensure that all risks associated with the block and surrounding areas are removed. Therefore, it was suggested that the demolition was carried out in 2 phases i.e., an initial strip-out phase to remove asbestos and services provided by statutory authorities. The second phase which allow for the physical dismantling of the block.

Awarding a contract to Tenderer A in the sum of £725,345.00 for phase one of the demolition programme, would protect the Council against financial and programme risks.

Alternative options considered

Do nothing was not an option as the strip-out works to Northolt was essential to remove asbestos and terminate all existing mechanical and electrical services to enable the block to be demolished. The works would also remove risks associated with carrying out these works at a later stage, and the financial and programme impact this could have on the project.

The option to include the strip-out works as part of the second phase demolition was considered, however discussions with several main contractors directed the project team to conclude that developing a standalone strip out programme was the best option for delivering the project. Reasons include; demolition contractors would rather a project which has been de-risked and free from asbestos and mechanical and electrical services. Cost control on a de-risked project would be easier to manage, and programme predictability for the client and contractor was more favourable when a demolition project has been stripped and cleared prior to starting the demolition works.

It should also be noted that lessons had been learnt from the demolition of Tangmere, where the project was not de-risked. The failure to de-risk the project resulted in additional works for the removal of asbestos and pigeon guano. There were also the impact of cable diversion and other works with UKPN – all of which resulted in additional costs and time pressures on the project. This forced a review on how best to manage the demolition of Northolt, thus the development of standalone strip-out programme.