Purpose

This report sets out the achievements of the
councils’ Affordable Homes programme and lessons learned. It
seeks to approve the alignment of the contingency budget to respond
to cost increases on some schemed within the programme

Decision

For the reasons set out in this report and its
appendices, Cabinet RESOLVED to Agree:
 
 
i) 
To note the update on homes that are completed, under construction
or did not progress and the challenges, successes and lessons
learned of the Affordable Homes for Newham programme in paragraphs
3.2 to 3.8 together with the overall programme cost in exempt
appendices 1 and 2
 
ii) 
The revised budget increases for each site contained in paragraphs
4.2 to a total cost of an additional £16.6m (Appendix 2) and
a further contingency allowance of £6.3m (Appendix 1)
 
iii) 
To delegate authority to the Corporate Director of Inclusive
Economy, Housing and Culture in consultation with the Portfolio
Lead for Inclusive Economy, Strategic Housing Delivery and Culture,
Cabinet Member for Finance and Resources and the Cabinet member for
Council Housing Improvements; and to then take the necessary steps
to negotiate and agree contract variations with appointed suppliers
as required to finalise delivery of the Affordable Homes for Newham
programme.
 
Alternatives
Considered
 
The Council could choose not to
proceed with approving budget variations. This is likely to result
in legal action from contractors resulting in additional legal fees
and/or suspension of the schemes. As the amounts being requested
have been checked by cost consultants and contract managers the
risk of challenge is high and not recommended.