This meeting was not a meeting in the usual sense. No discussion took place because the meeting was for a decision that had already been delegated to Paul Kitson, Corporate Director of Inclusive Economy & Housing.

Affordable Homes for Newham, Arthingworth Street

A report included in the meeting pack requested approval for modifications to a contract to refurbish two existing buildings at 21-55 Arthingworth Street to create 16 affordable homes.

The report requested that an additional £120,353 be added to the existing contract with Proma Group, bringing the total value of the contract to £2,421,354.02. This followed an earlier modification to the contract in March 2023 that increased its value by £533,173.

The additional costs were attributed to variations and loss and expense claims. According to the report,

Value for money and cost substantiation have been reviewed by the Employer’s Agent for each variation, with contract instructions issued in accordance with the contract.

The report goes on to state that,

officers consider that the modifications remain value for money for the Council and recommend them for approval to the Corporate Director.

The report reveals that Proma Construction is in administration, and that discussions have taken place with Newham Maintenance to undertake repairs during the defects period.

The report is accompanied by:

• A letter from WT Partnership, the Employer's Agent, dated 15 May 2024 to Denning Okoli at Newham Council explaining the reasons for the cost increases.
• A letter from WT Partnership to Begbies Traynor, the administrators for Proma Construction, dated 27 August 2024 confirming the final amount owed to Proma.
• A report to Cabinet on 1 December 2020 that originally recommended awarding the contract to Proma. That report explains that the work was being procured from Proma without competition because Proma were already working on the adjacent site of the former West Ham Lane Baptist Church.

The report explains that the Arthingworth Street scheme:

• Supports Priority 5 - Homes for Our Residents under the Council’s Corporate Plan 2022-2026, Building a Fairer Newham.
• Will contribute to the delivery of the Mayoral pledge for 1,000 Council owned homes at social rent levels started by May 2022.
• Is part of the Building Council Homes for Londoner’s programme.
• Will be built to high sustainable standards.
• Will help reduce the use of temporary accommodation.