Agenda item - Approval to tender for the Mallard place (Chocolate Factory Phase 2 ) Works contract

Report of the Corporate Director of Finance and Resources (S151 Officer). To be presented by the Cabinet Member for Housing & Planning (Deputy Leader)

DECLARATIONS OF INTEREST FOR ITEM:

None

RESOLVED:

That Cabinet:

1. Approved the tendering of the works contract for Mallard Place (Chocolate Factory Phase 2) within the maximum construction cost contained in the exempt report.

2. Approved the Commencement of the Procurement in accordance with CSO 2.01 b) (Cabinet approve commencing a procurement exercise for proposed Contracts valued at £500,000 or more) to appoint a contractor to undertake works related to Mallard place for a period of up to 3 years commencing July 2026.

3. Approved the primary route to market being the LCP Minor Works Dynamic Purchasing System (DPS), in accordance with CSO 8.01 (use of LCP DPS). In the event the DPS does not generate sufficient interest or an acceptable tender, the procurement will revert to the LCP Major Works Housing Framework (MWH -24 Lot 1.3), in accordance with CSO 7.02 (use of LCP Frameworks).

Reasons for decisions

These approval decisions would ensure that the Council will not lose the grant allocations it has secured, by tendering the build contract in readiness to have entered into contract by March 2026. Details of the grant funding conditions are set out in the exempt report.

This decision supported the delivery of 150 homes towards the Council’s house building target of 3000 Council homes by 2031

Alternative options considered

The Council could decide to not tender the scheme. This option was discounted as it would negatively impact on the Council’s target of building more than 3,000 genuinely affordable high-quality council homes by 2031.

The alternative option is to sell the site(s). This isn’t the preferred option, and the land value would likely be low. This option would impact the Council’s commitment to build 3000 Council homes by 2031 and would also contravene agreement with the GLA.

The Cabinet Member for Housing and Planning, and Deputy Leader of the Council introduced the report.

It was explained that the Council’s stated mission was to build a fairer and greener borough. London faced a housing crisis, with increasing numbers of residents unable to afford rents or purchase homes. To help address this situation, and with financial support from both the Mayor of London and the government, the Council committed to building at least 3,000 new council homes at council rents by 2031. The aim was to create more genuinely affordable homes for local people. It was explained that, while delivery numbers were important, the Council also focused on quality. Homes were built to last, with high insulation standards, strong interior and exterior design, and a mix of family and individual units. Homes were designed to be energy efficient and well insulated to ensure they were affordable to run as well as to rent. Mallard Place contributed 150 of the 3,000 new homes.

It was noted by the Cabinet Member that the development had more than two-thirds of the homes were two-bed or larger, providing additional space suitable for families. Fifteen homes were fully designed for wheelchair users. To reduce heating costs, the building included air source heat pumps and more than 75 solar panels on the roof. Floors incorporated noise-proofing measures beyond legal requirements to help maintain quieter living environments and reduce neighbour disputes. All upper-floor flats included private balconies. A shared garden with a children’s playground was also provided. The flats were constructed on brownfield land at the former Chocolate Factory site in Wood Green. New trees were planted around the building to enhance the local environment, and nearly 300 secure cycle parking spaces were installed.

In response to comments and questions from Councillors Hakata, Chandwani and Barnes, the following information was shared:

Communication of delivery of houses. It was explained that the Council should seek to utilise Haringey People to ensure that residents would be aware of delivery of Council housing.
It was explained that the Council was undertaking work to ensure that local people were not priced out of housing.
It was explained by officers that there had been work undertaken with Area 51, and that the Corporate Property team were working with their team to review potential private property to deliver their services. It was stressed that the Council was working to ensure that the facility stays functional to residents.