29 July 2007
As you are the Commissioner for Housing and have apologised on numerous occasions for the amazing failures that took place at both Broom and Poplar Houses, please confirm the exact amount of monies 'overspent' beyond the original budget and kindly confirm as to whether or not the final accounts are as yet complete for the 'improvement works', the final total cost overall for the 'improvement works' in their entirety and what precisely is being done by way of cost recovery for monies expended by both Slough Borough Council and / or People 1st in any present, likely or intended legal action. With regard to any such legal action between SBC, People 1st and Pellings, does this include any action on the part of SBC / People 1st with regard to alleged 'maladministration' on the part of Pellings?
The total cost expended on the Broom and Poplar Houses' works to date is £6,111,921.68 against a budget provision of £6,803,000. These figures include not only the physical works but also items such as the design, supervision, consultation and expert advice regarding the termination of the construction contract. They also include additional works which were not originally within the project to ensure that the buildings were brought up to the decent homes standard and residents are not disturbed again. The final account is in draft form.
The Council is looking at several possibilities for the recovery of sums paid out in order to complete the refurbishment and improvement works and is currently collating the evidence to establish if it has reasonable prospects of recovering moneys under the contracts. It is also in negotiation with the bondsman. It is too early to comment at this stage on any possible litigation and the Council will be working to resolve claims by negotiation and using the dispute resolution procedures in the contracts.
The Council is mindful of the fact that litigation is expensive which is why it is taking expert advice on the strength of any claims it may have and seeking to use alternative methods to reclaim some of the costs of the works.
