The Cabinet Member Signing meeting on Wednesday 28 May 2025 approved an increase in funding for refurbishment works at Canning Crescent, 176 High Road, Wood Green, N22 8JT, and a variation to the construction contract with Kind Diamond Consortium (KDC). The meeting also noted information from an exempt report concerning these works.

Canning Crescent Refurbishment Works

Councillor Sarah Williams, Cabinet Member for Housing and Planning and Deputy Leader of the Council, approved an increase in the project budget for the refurbishment works at Canning Crescent, located at 176 High Road, Wood Green, N22 8JT, by £498,689, bringing the total project cost to £6,417,494. This decision also included approving a variation to the construction works contract with Kind Diamond Consortium (KDC), increasing their contract value by £461,640 to £2,366,169. A client contingency of £44,485 was also approved.

The original contract for these works, which aim to create a new Adult Mental Health facility with respite units, a recovery college, and a cafe for use by Barnet, Enfield, and Haringey (BEH) Mental Health NHS Trust, was approved on 6 June 2024. However, the project has faced delays and unforeseen issues. An extension of time was granted in January 2025 due to additional fire compartmentalisation works. A subsequent non-completion certificate was issued in February 2025 when the building was not handed over by the revised completion date.

The reasons for the budget increase and contract variation include:

• Design Fault with Air Source Heat Pumps (ASHP): Upon commissioning in February 2025, it was discovered that the flow rate of the pumps serving the hot water and heating system was below the designed parameters. This has necessitated the ordering of three new pumps, with replacement scheduled for May 2025.
• Fire Damper Issues: Problems were identified with fire dampers, fitted by a previous contractor, which are crucial for maintaining the integrity of fire compartments. The design team established this issue on 25 February 2025, and due to warranty requirements, all dampers across the building need to be replaced.
• Additional Client Requested Works: The client has requested additional works, such as the provision of hand driers and hot and cold ZIP taps, which were not part of the original contract.

The report highlighted that the projected additional costs for these issues amount to £461,640, with a further £44,485 allocated for client contingency. The projected outturn cost for the project is now £6,417,494, with an anticipated completion date of 24 July 2025, representing a delay of 22 weeks from the original expected handover.

Officers expressed disappointment regarding the necessity of the budget uplift, having expected the project to be completed by February 2025. The decision to approve the funding increase and contract variation was made to ensure the completion of the facility, which is considered a critical step in addressing significant mental health needs and longstanding inequalities in Haringey. The borough has a higher-than-average rate of serious mental illness and common mental disorders compared to London and England averages. The refurbished facility aims to provide inclusive, culturally sensitive, and accessible mental health services.

Alternative options considered included doing nothing, which would leave the refurbishment works incomplete and fail to meet the project's original objective. Ending the contract with KDC and appointing an alternative contractor was also considered but deemed problematic due to potential impacts on warranties and ongoing liability. The option of undertaking the work in-house was discounted due to a lack of available council resources with the necessary capacity and expertise.

The meeting also resolved to exclude the press and public from the remainder of the meeting as Item 7, an exempt report, contained information relating to the financial or business affairs of particular persons. The information within the exempt appendix was noted, and the recommendations from the main report were agreed.

The report and decisions are available in the Public reports pack 28th-May-2025 11.00 Cabinet Member Signing and the Printed minutes 28th-May-2025 11.00 Cabinet Member Signing.