Agenda item

The report sought approval from the Cabinet Member for Housing and Planning to appoint the recommended contractor for completing construction works at the Cornwall Road N15 and Morley Avenue N22 schemes.

Construction contracts had been awarded to Contractor X for the separate developments at Cornwall Road N15 and Morley Avenue N22, following approval by Cabinet Member signings in July 2021 and July 2023. Contractor X entered liquidation in December 2024, and further details were provided in the exempt part of the report. The Council had secured both sites and initiated a competitive procurement process on the Haringey Dynamic Purchasing System, utilizing the JCT Intermediate Building Contract 2016. Through a formal tender process, Contractor A was identified to undertake the completion works. The two sites were set to contribute to the Council’s commitment to deliver 3,000 new high-quality council homes by 2031. Alternative options were considered, including the possibility of not completing construction and either demolishing the structures or selling the partially completed sites on the open market. This option was ultimately rejected as it would not align with the Council's goal to provide a new generation of council homes and would result in significant financial losses from the investment made to date. The cost to complete these schemes is provided for in the recently approved HRA capital programme budget and included in the medium-term financial strategy (MTFS).

THE CABINET MEMBER RESOLVED:

Recommendations

2.1. The Cabinet Member for Housing and Planning was recommended to:

2.1.1. Approved the appointment of Contractor A, identified in the exempt part of the report, to undertake construction works to complete the schemes known as Cornwall Road N15 and Morley Avenue N22.

2.1.2. Approved the total scheme costs set out in the exempt part of the report.

2.1.3. Approved to delegate to the Assistant Director of Housing authority to sign off any instructions that may be required to be discharged from the contingencies we are seeking approval for in this report.

Reasons for decision

3.1. Construction contracts were awarded to Contractor X for the separate developments known as Cornwall Road N15 and Morley Avenue N22, approved by Cabinet Member signings in July 2021 and July 2023.

3.2. Contractor X entered liquidation in December 2024. Please refer to the exempt part of report for further details.

3.3. The Council secured both sites and released a competitive procurement opportunity on the Haringey Dynamic Purchasing System using the JCT Intermediate Building Contract 2016.

3.4. Contractor A has been identified by a formal tender process to undertake these completion works.

3.5. The two sites will contribute to our commitment to build 3,000 new high-quality council homes by 2031.

Alternative options considered

4.1. The Council could choose not to complete the construction of these developments and either demolish the structures or sell the partially completed sites on the open market. This option was rejected as it does not support the Council’s commitment to delivering a new generation of Council homes and would present a significant financial loss against investment to date.