Councillor Marilyn Ashton, Deputy Leader of the Council and Portfolio Holder for Planning & Regeneration, convened an urgent decision meeting to discuss the demolition of Grange Farm Phase 2a. The Deputy Leader approved the award of the demolition contract to the preferred bidder, R Collard, to allow the works to continue without delay. The decision was made to comply with the council's contract procedure rules and financial regulations.

Grange Farm Phase 2a Demolition

The Strategic Director for Housing and Regeneration was authorised to award the contract for the demolition of Grange Farm Phase 2A to the preferred bidder, with work commencing on 14 April 2025 for 24 weeks. This decision was made to comply with the council's contract procedure rules and financial regulations.

The report noted that a previous Cabinet Report Dated 24 January 2024 authorised a five-year Housing Revenue Account (HRA) Capital programme, including an investment of up to £69,738,538 in housing infrastructure at Grange Farm as part of the Homes for Harrow scheme. A further cabinet report on 20 February 2025 related to procuring the construction of new homes on the site.

The report stated that the demolition contract was procured via a competitive process, and the preferred bidder was awarded the contract pursuant to the Procurement Gateway Two report (contained in the exempt appendix to the report). However, the cabinet had not delegated the authority to officers to award the demolition contract, and the advice that the earlier January 2024 cabinet report contained sufficient overarching authority had been revised.

The report highlighted the urgency of the decision, as the contractor had already mobilised and incurred costs. Delaying the decision risked the contractor demobilising and not completing the works due to lack of payment and an incomplete contract.

Implications of the Recommendation

• Resources, costs: The costs associated with demolition works for Phase 2a have been provided for within the HRA budget. The Grange Farm Phase 2(A) project has an approved capital budget of £15.3 million, which includes £5.6 million carried forward from the 2024/25 financial year. The project is funded through a combination of a GLA Right to Buy (RTB) ring-fenced grant of £4.954 million and council borrowing.
• Environmental Impact: The preferred contractor is taking steps to move towards net zero through initiatives including: use of low/zero carbon vehicles; local recruitment; local suppliers and sub-contractors; recycling 98% of materials with 2% to landfill; and vehicle mileage monitoring.
• Risk Management: The report identified several risks, including increases in cost and programme delays. Mitigations included financial assessments of the successful tender, strict monitoring controls, and detailed pre-commencement surveys of buildings to identify the scope of asbestos removal.

Procurement and Legal Implications

The procurement was run as an open tender under the Public Contract Regulations 2015, and the preferred bidder demonstrated that their submission was the Most Economically Advantageous Tender. The Procurement lead confirmed that the procurement process complied with the regulations and the council's contract procedure rules.

The report noted that the council originally considered the contract to be valued at under £500,000, which would have required a Procurement Gateway Two report rather than cabinet authority. However, as the successful bid was valued above £500,000, cabinet authorisation was required to comply with the council's contract procedure rules.

Council Priorities

The report stated that the demolition supports the council's priorities:

• A council that puts residents first: The council will work with the estate community to deliver the commitments within the Residents Charter, devised with residents in 2019, for the regeneration of the Grange Farm estate.
• A borough that is clean and safe: The regenerated estate will provide new homes in a much-enhanced public realm, developed to meet the highest 'Secure By Design' principles.
• A place where those in need are supported: The design of new homes will take account of the existing identified needs of secure resident households on the estate and will look to accommodate future needs wherever possible, through flexible design.

Other Matters

The meeting also addressed the following procedural items:

• Declarations of Interest: There were no declarations of interest.
• Petitions: No petitions were received.
• Public Questions: No public questions had been received.