This meeting was scheduled to discuss contract variations for affordable housing projects at Leather Gardens and Sutton Road. The report pack indicated that these variations were necessary due to unforeseen site conditions, consultant appointments, and changes to specifications.

Affordable Homes for Newham, Leather Gardens and Sutton Road Contract Variations

The primary item scheduled for discussion was the proposed variations to the main works contracts for the affordable housing developments at Leather Gardens and Sutton Road in Newham. These contracts were originally awarded to Kind & Co. The report pack indicated that approval was sought to adjust the contract sum for Sutton Road by an increase of £1,019,678.53 and for Leather Gardens by an increase of £919,415.67.

The report pack detailed that these variations were necessitated by several factors. For the Sutton Road site, these included the appointment of consultants such as WARM for Passivhaus certification, engagement of HCC for insurance, works arising from the discovery of below-ground obstructions and services, and changes to the specification such as upgrading the lift to evacuation standard and fire-resistant services. Additionally, changes to the mechanical design to incorporate Switch 2 for heat metering and billing, payment of fees including Section 278 fees, costs related to substation construction, works requested by statutory bodies, and confirmed costs for items like PV panels were also cited. Loss and expense claims for Sutton Road were attributed to delayed engagement with the UKPN legal team.

For the Leather Gardens site, key variations included similar consultant appointments for Passivhaus certification, insurance engagement, and works required by statutory bodies. Discoveries of below-ground obstructions and services, structural surveys, confirmed costs for PV panels, and payment of fees including postal naming and Section 278 were also listed. Changes to the specification, including lift upgrades and fire-resistant services, along with S278 works, supply and installation of Switch 2 meters, and completion of EWS1 forms for fire safety, were also part of the proposed variations. Loss and expense amounts for Leather Gardens were linked to changes in Section 278 design and mechanical design.

The report pack stated that the total value of the proposed variations amounted to £1,939,094.20, which was to be drawn down from the contingency budget. These variations were noted to be within the 5% variance limit approved by Cabinet on 1 December 2020, allowing the Corporate Director of Inclusive Economy & Housing, Paul Kitson, to approve them under delegated authority. The report pack indicated that these projects support Priority 5 - Homes for Our Residents under the Council’s Corporate Plan 2022-2026, Building a Fairer Newham, and align with the Mayoral pledge for 1,000 Council-owned homes at social rent levels. The housing delivered is intended to meet high sustainable standards, contributing to the Council's commitment to energy conservation following its declaration of a climate emergency.

The report pack also referenced the legal implications, noting that the proposed modifications were compliant with sub-regulations 72(1)(f) and (5) of the Public Contracts Regulations 2015¹, which allow for contract modifications without a new procurement process under certain conditions, provided they do not alter the overall nature of the contract and are below a specified percentage of the initial contract value.