Purpose

This report is seeking approval for £11.3m of additional funding to complete works on the Maltings & Brewster estate and to directly award the third phase of work to Wates Property Services. This will increase the cost of these works to £22.8m. These essential building safety works have comprised the removal and replacement of the external wall insulation (EWI) and structural works on the blocks which commenced in 2017.

Decision

1. Approve the continued use of Wates to deliver the remaining works to complete the structural strengthening and EWI2 works via a direct award as an amendment to the current structural work contract.  
2. To note that the value of this further award is £11.3m making a total project value of £22,772,931.  
3. To note that once approved the governance process will progress to ensure all payments and financial requirements are met. 

Reasons for the decision 

Background Following the Grenfell tragedy and a review of all high-rise buildings in the Borough, it was identified that both Brewster and Malting House had a potentially flammable External Wall Insulation (EWI) material that posed a significant risk of life in the event of a fire. As a result, Wates Living Space (Wates) were awarded a contract (EWI 1) under the Better Neighbourhoods Framework and started works in February 2018 to remove this cladding and replace it with a fire-resistant material at a value of £1,398,804.50.  

During this period the Ministry of Housing and Local Government asked all Councils to review buildings constructed with ‘Large Panel Systems’ (such as Brewster and Maltings), to ensure that they were safe. Our appointed Structural Engineer (Wilde Carter Clack) identified serious structural issues with both blocks that meant that in the event of an explosion, the building(s) could suffer from progressive collapse. As a result, the cladding works were paused in December 2018, leaving the four end elevations exposed without any cladding.  

Following extensive investigations and design work by our structural engineer a solution was found to address the structural issues. Given that Wates were already on site and it would be impractical to appoint a different construction contractor, the Council directly awarded to Wates the structural works in accordance with the terms of the procured Better Neighbourhoods Framework contract. This commenced in January 2023, circa 4 years after the cladding works were paused. The value of the second contract, issued under the Better Neighbourhoods Framework, was £9,209,014.63. A supplementary funding application, as per Appendix 1, was dated 21/03/25 and fully signed by 30/04/25 for £4,270,588.  

The installation of the internal steel columns and beams have been completed to both blocks and the drilling, anchor and steel frame installation to the external end (flank) walls are 90% complete. 

The work to install the remaining EWI on the end elevations is proposed to be awarded to Wates as part of the current contract so they can complete the works they had to pause in December 2018. The appointment of Wates will ensure continuity and avoid litigation risks relating to two different contractors working on the same site and the same works. Also by using the same contractor could save up to 40 weeks inconvenience to residents. This final phase is programmed to take 70 weeks from commencement, and it is anticipated the remaining EWI can be complete, with Wates leaving site, by Autumn 2027. The value of this order is £5,252,319.03.  

The final account for the original EWI work commenced in 2018 was agreed in November 2025. This has resulted in a further £1,310,547.04 to be paid to Wates. An independent consultant, Ridge, was appointed to agree this figure which was confirmed in November 2025.  

Upon further review of the costs for the structural strengthening works will total £14,811,260.19. With the previous supplementary funding application approved at £4,270,588 the further funds required total £1,331,658.19. 

Alternative options 

Not applicable.