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Council to take back control of Chalcots Estate following PFI collapse
Camden Council is set to take back control of maintenance on the Chalcots Estate after the private finance initiative (PFI) firm, which held the contract, filed for insolvency.
Partners for Improvement in Camden (PFIC) was responsible for the 2006 refurbishment works which saw Grenfell-style cladding installed on the Swiss Cottage estate’s five tower blocks.
It also handled repairs, heating and maintenance on the estate through a number of subcontractors, with a £150m deal due to run until 2021.
The council stopped paying PFIC in November last year, after stepping in to carry out emergency fire safety work following the Grenfell Tower fire in June.
As part of that work, the council evacuated residents from the estate last June over fire safety fears, just two weeks after the Grenfell fire. The cladding was ultimately removed in January.
The work is set to bring Camden’s overall fire safety spending, since last summer, to more than £100m.
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“Camden Council is stepping in again where the PFI has let us down,” said Georgia Gould, leader of Camden Council.
“Since we stepped in last year to complete emergency repairs and remove flammable cladding, we’ve been determined to do all that we can to ensure a new standard of resident safety in these blocks.
“Given the huge costs we have incurred, and in accordance with the contract, we stopped paying PFIC in November 2017 and we now anticipate that their subcontractors may stop providing repairs and maintenance services at the Chalcots Estate in the near future, following the PFIC’s decision to file for insolvency.”
United Living, the subcontractor which handled heating maintenance on the estate, ended its agreement with PFIC last Friday. Camden Council and its contractor BTU Group have taken over responsibility.
The authority told residents on Wednesday it was “preparing to take over further repairs and maintenance responsibilities at the Chalcots Estate in the coming weeks”.
Rydon currently still provides repairs and maintenance on the estate, but the council anticipates it may also choose to down tools “in the near future”.
“The company has reached the unfortunate position of having no option but to enter a liquidation process following the ongoing decision by the council to withhold payment of the unitary charge,” a spokesperson for PFIC said.
“The company is working closely with Camden Council in preparation for the handover of all repairs and maintenance arrangements currently provided by the company.”
A spokesperson for Rydon said: “Rydon continue to carry out and deliver its maintenance obligations throughout the Chalcots Estate and have invited Camden to clarify its contractual position, as Camden have stated that it has not yet agreed with Partners For Improvement to terminate the PFI contract.”
United Living confirmed that it suspended its operations on the estate due to non-payment from PFIC.
Update: at 14.11pm 14/05/18 a statement from PFIC was added to the story.
