Race back on for £250m N London housing work

At least nine firms are in the frame for a readvertised £250m housing revamp deal in north London.

Haringey’s Decent Homes contract first came up for grabs in September 2005, but was reposted in the OJEU in August this year after a contractor challenged the London Borough’s selection criteria. It is understood that the complaint centred on the turnover threshold set for the work. But sources say that Mulalley, which is believed to have mounted the initial challenge, has also made the new shortlist.

It is understood that the Essex-based contractor will have Wates, Galliford Try, Kier, Higgins, Apollo, Mansell, Lovell and Balfour Beatty for company this time around.

The work will be split into four areas. An insider said: “As far as I know, contractors will have to pitch for all areas, but no contractor is likely to win more than one area so that all the bidders can get a fairer crack of the whip.” The designated areas are Wood Green, south Tottenham, north Tottenham and Haringey. The successful bidders will then be required to enter into a four-year strategic alliancing agreement with each other and with Homes for Haringey, the arm’s-length management organisation (ALMO) that is handling the deal.

The appointed contractors will carry out major Decent Homes work, as well as planned maintenance works to the council’s stock of around 21,500 houses and flats.

But full funding for the deal hangs on the Audit Commission awarding the ALMO a ‘two-star status’ following an inspection expected to take place in April.

■ Linden Homes is due to start work next week on a £20m-plus deal in Bristol now that the city council has given the scheme the all-clear.

The deal involves 129 flats on the site of a former garage in Cheltenham Road. The project is due for completion in April 2009, and includes restoring two historic buildings on the site.

Linden is currently up for sale, with a price tag around the £300m mark.

[Contract Journal, 29 November 2006, p11]