Decision details

To enter into contract with a contractor to undertake demolition of existing homes and delivery of 26 new homes and associated works across five sites with relevant delegations to officers.

To recommend to Council approval of additional budget from reserves.

39.1    The Leader moved the recommendations of the Executive, duly seconded by Councillor Clark, and invited Co-Portfolio Holder for Housing, Cllr Paul Rivers, to introduce the report on behalf of Councillor Palmer.

39.2    Councillor Paul Rivers reminded Members that Council had approved the Business Case for the delivery of 26 new homes at its meeting on 13 December 2022. Following further work in construction design, the receipt of detailed information from the utility companies, and other work to de-risk the project, additional budget was required to ensure that the contingency remained in place prior to entering into contract. The exempt annexe illustrated that the scheme remained financially viable and was consistent with the strategic priority to provide good quality housing for all income levels by delivering twenty-one homes for rent and five shared ownership homes. Members’ attention was drawn to the increase over the past year in applicants on the housing register from 1066 to 1180.

39.3    Councillor Busby spoke in support of the recommendations and thanked local residents for their patience whilst waiting for the redevelopment. The Council was now in a position to enter into contract with Feltham Construction Ltd after the unfortunate and unforeseen delays caused by the previous contractor going into administration. The Business Case remained sound and the homes would contribute to local housing need in alignment with the Neighbourhood Plan.

39.4    Councillors Goodridge and Atkins spoke in support of the recommendations but sought clarification that the development would be funded by the Housing Revenue Account reserve, and whether the revised scheme cost included the cost of the land. Councillor Hyman concurred and cautioned that the Council had to be mindful of the risk of increasing development costs overall and should where possible consult with local residents about developments in their area. 

39.5    Councillor Spence expressed concern that the original contractor had gone into administration and sought assurance that the Council had mitigation in place, such as a surety bond, with the proposed contractor. At the invitation of the Mayor, Officers clarified that the previous contractor had gone into administration prior to a JCT Contract being in place. The resolution from the Executive on 1 August 2023 authorised a JCT Contract to be entered into with Feltham Construction Ltd.

39.6    The Leader echoed Councillor Busby’s gratitude to residents for their patience as the national economic challenges caused by the pandemic had led to the failure of the original contractor, and many other similar businesses. Members were assured that the Council would continue to consult and inform residents, and that the resolution would be clear that the development was funded from the Housing Revenue Account Reserve.  

39.7    In summing up, Councillor Paul Rivers re-emphasised that the project aimed to increase the number of affordable homes available for those that were in housing need and registered on the Council’s housing register.

39.8    Upon being put to the vote, Council RESOLVED unanimously that an allocation of an additional £402,332 budget from the Housing Revenue Account reserve be approved to enable the delivery of 26 new homes in Chiddingfold.