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Grenfell contractor wins £100m contract to redevelop London estate
A London council has officially announced the selection of Rydon for a £100m estate regeneration scheme, days after the secretary of state said it should no longer bid for public works.
Ealing Council has officially awarded the East Sussex-based firm the contract to demolish its 264-home High Lane estate, in Hanwell, and build 450 new homes of mixed tenure.
Rydon, which was the principal contractor for the refurbishment of Grenfell Tower, has been the preferred developer on the project since April 2017.
The contractor fought off two other bids to win the £99m contract as development partner, according to an Official Journal of the European Union notice.
The principal development agreement was signed officially on 8 October. The three-phase scheme, which has been backed by 90% of residents in a ballot, is expected to complete in 2027.
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Rydon is a major contractor in the social housing sector for construction, repairs and refurbishment projects.
Last week it emerged that it had been included on a government framework to work on high-rise residential buildings in the South of England.
However, after a backlash from survivors of the Grenfell fire, housing secretary Robert Jenrick advised the contractor not to bid for public work until investigations into the fire had been completed.
It also emerged that London mayor Sadiq Khan had signed an order last year saying it was not in the public interest to let Rydon bid for works until the Grenfell Inquiry had reported on “the extent to which any Rydon group companies or employee contributed to causing or exacerbating the Grenfell Tower fire”.
In a statement to Inside Housing, Ealing Council said: “We selected Rydon as a partner for this project in April 2017. This was after a three-stage competitive dialogue EU procurement process that shortlisted to five and then three companies. We then signed a principal development agreement with Rydon in October 2019.”
It added: “The eventual plans for High Lane will meet all current fire safety standards and there can be no comparison made with the construction methods or materials at Grenfell Tower. Residents have been fully aware throughout the process that Rydon is the developer on the project.”
However it added that the agreement “grants us the right to step in if for any reason they cannot fulfil their contractual obligations on the project”.
Rydon declined to comment on the contract award.
Last week Sir Martin Moore-Bick, chair of the Grenfell Inquiry, deemed the aluminium composite material (ACM) cladding installed on the outside of the tower the “primary cause” of the vertical spread of the flames and said that it failed to comply with building regulations.
Rydon was tasked with the refurbishment of the tower, which included new windows, a new communal heating system and the cladding. It sub-contracted the installation of the cladding to Harley Facades and the panels were provided by multinational materials company Arconic.
The first phase of the inquiry looked mainly into the events on the night of the fire. Phase two will look more at the lead-up to the fire, including the refurbishment.
Among the conclusions of the first phase was that the ACM cladding fitted during the refurbishment of the 24-storey block was the “primary cause of fire spread” and did not comply with building regulations.
Rydon is also working on a £155m joint venture contract with A2Dominion on regenerating Ealing’s Green Man Lane estate.
Ealing Council’s full response
“Since 2013, the council has been working with residents of the High Lane estate to consider how we could make it a better place to live.
“Residents confirmed that they want the estate to be comprehensively redeveloped, which was confirmed in an independent ballot last December with 90% of eligible voters backing plans to rebuild their neighbourhood.
“We selected Rydon as a partner for this project in April 2017. This was after a three-stage competitive dialogue EU procurement process that shortlisted to five and then three companies. We then signed a principal development agreement with Rydon on 8 October 2019.
“The agreement grants us the right to step in if for any reason they cannot fulfil their contractual obligations on the project.
“Since 2017 Rydon have been working with the council and High Lane residents to produce a design for the new estate, in order to build the safe, modern homes that our tenants want. The design process was put on hold while we balloted residents. It is starting up again now with a new round of design workshops.
“All designs are being fully consulted on with residents. The eventual plans for High Lane will meet all current fire safety standards and there can be no comparison made with the construction methods or materials at Grenfell Tower. Residents have been fully aware throughout the process that Rydon is the developer on the project.
“The estate will be redeveloped in three phases between 2021 and 2027. Once completed it will offer 217 new genuinely affordable housing options for local people.”
