Issue details
3-5 Arnold Road: Approval to increase project budget to enable build contract to be awarded
Approval is required to increase the budget
for the development of 3-5 Arnold Road to enable the build contract
to be awarded
The site at 3-5 Arnold Road is part of the HRA new council homes
programme. Planning consent for the development of 62 new homes for
social rent and 5 business units on the ground floor on the site
was granted in November 2019 and will expire in December 2022. The
procurement of a build contractor commenced in August 2021.
As a result of changing market conditions, including rising
inflation, increasing energy costs and a shortage of material and
labour, the tender price for this contract was higher than
estimated at £24,495,944. The £24.351m approved budget
for the scheme is insufficient to enable the contract to be
awarded. The total scheme costs have increased to £28.880m.
The proposal is to fund the additional budget requirement by
removing one of the approved schemes in the programme and releasing
£7.600m will be available for re-allocation. This will
provide a funding source for the Arnold Road scheme.
Decision type: Non-key
Decision status: Recommendations Approved (subject to call-in process)
Wards affected: Bromley North;
Explanation of anticipated restriction:
N/A
Open/Exempt: Open;
Decision due: 7 Sep 22 by Mayor's Executive Decision Making
Lead member: Cabinet Member for Regeneration, Inclusive Development and Housebuilding
Lead director: Corporate Director, Place
Department: Place
Contact: Karen Swift, (Divisional Director, Housing and Regeneration) Email: Karen.Swift@towerhamlets.gov.uk.
Consultation process
N/A
Consultees
N/A
Has an Equality Analysis been carried out and if so the result of this Assessment?: N/A
Agenda items
- 09/09/2022 - Mayor's Executive Decision Making 3-5 Arnold Road: Budget 09/09/2022
Documents
- 3-5 Arnold Road: Approval to increase project budget to enable build contract to be awarded