From the BEO:
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Dear Residents,
It is with some disappointment that I must inform you that Chigwell, our newly appointed repairs and maintenance contractor for the Barbican Estate, has served formal notice to terminate their contract after just three months of operation. The contractor has cited concerns over the profitability of the contract as the reason for this action.
We are currently working with the City of London's legal team to review the notice in detail and respond formally. Nonetheless, from both a practical and operational standpoint, the contract will ultimately need to conclude.
Please be assured that officers from the Barbican Estate Office, in collaboration with Procurement and City Solicitor colleagues, have already convened and are actively working on robust business continuity plans. These plans aim to ensure the uninterrupted delivery of services to residents and include exploring longer-term strategic options for the delivery of this service.
A full business case, setting out all potential options for delivering the repairs & maintenance function along with a clear recommendation, will be produced for consideration at the earliest appropriate opportunity and is our firm priority.
We have provided an accompanying FAQ sheet with this note and will continue to keep residents closely informed as the situation develops.
FAQ Sheet – Barbican Repairs & Maintenance
1. Why is Chigwell withdrawing from the contract so soon after starting?
Chigwell has cited concerns about the commercial viability of the contract and do not believe it is financially sustainable for them. We are disappointed by this decision, especially given the rigour and transparency of our tender documentation and the short duration of the contract. We are reviewing how this situation arose and will reflect on this as part of our business case for future delivery.
2. Will my repairs still be completed during the notice period?
Yes. Chigwell remains contractually responsible for delivering the service during the notice period, and we expect them to continue fulfilling their obligations. We will continue to closely monitor performance to ensure standards are maintained.
3. How long is the notice period, and when will Chigwell stop working on the estate?
We will provide a timeline for Chigwell's exit as soon as it is confirmed, the contractual notice period is 6 months.
4. Is there a risk of a gap in service once Chigwell leaves?
We are doing everything possible to avoid any service disruption. A cross-departmental team is actively working on a detailed business continuity plan to ensure there is no gap in service during the notice period.
5. Will the services provided by the roofing contractor (Elkins) be affected by this.
Following conversations, we are confident Elkins' service will remain unaffected by this situation.
6. What are the options being considered for the future delivery of repairs and maintenance?
A full business case including a range of options is being developed and will be considered by elected Members of the Corporation.
7. Will leaseholders be consulted or involved in deciding how the service is delivered going forward
While the immediate focus is ensuring continuity, leaseholders (including Freeholders in Wallside) will have the opportunity to feed into the longer-term delivery solutions for this critical service. Once options are more defined, we will share updates and, where appropriate, seek input from leaseholders. The final business case and recommendation will be presented to the Residents Consultation Committee and then formally taken for decision to the Barbican Residential Committee at the earliest opportunity.
8. Chigwell also won the Housing Revenue Account(HRA) contract to deliver repairs & maintenance across the Corporations Social Housing developments – Is this impacted?
Chigwell have confirmed they do not have the same commercial concerns on the HRA contract. Officers are working closely with Chigwell to monitor this contract.