Bromley housing scheme will cost more after contractor went bust

By Joe Coughlan, Local Democracy Reporter

Bromley council has agreed to spend an additional £4 million on a housing scheme after the project’s subcontractor illegally removed electrics from the site when the main contractor went bust.

The project will see 35 new flats being constructed at York Rise in Orpington for Bromley council’s housing waiting list.

Work on the site began by contractor Module-AR in April 2022 but was reportedly delayed by the discovery of several underground air raid shelters. Work slowed further in January 2023 before being suspended that October. The authority then terminated its contract with the company shortly before it went into administration.

At a meeting last week, council officers claimed that the additional £4.1m funding needed for the scheme arose from ‘considerable’ damage which had been done to the site following the collapse of Module-AR.

A council officer said: “In this particular project, it had come to light that a number of subcontractors believed they had not been paid despite the council being up to date with payments [to Module-AR].

“We discovered very quickly that a particular subcontractor, the mechanical, electrical and plumbing subcontractor for the site, had arrived on site and was illegally removing goods.”

The council officer said that air source heat pumps along with associated electrics had been removed from 22 of the units on the site. They said that police were immediately called to prevent further damages and the authority would be making necessary legal claims in response to the harm caused.

Conservative councillor Colin Smith, leader of the council, said at the meeting: “Rest assured, I think we all know well enough by now that we will be going after that with an absolute determination to seek the maximum refunds that we can.”

The revised bill for the housing scheme is now £15.8m, with the project expected to be completed by spring next year. The agreed additional funding also accounts for a lack of adequate drainage systems and support materials currently on the site.

Council officers claimed they felt there was very little the authority could have done differently during the initial project, but said ‘lessons had been learned’.

It was reported that additional training would be given to council staff on how to handle contracts failing. The authority’s main contractors would also be asked to confirm that they were up to date with payments to subcontractors.

Pictured top: A CGI for the previously approved scheme (Picture: Rivington Street Studio / Module-AR)