Hundreds of new homes being built for Ealing Council as well as private developers are set to be delayed following the collapse of building contractor Henry Construction which has recently gone into administration.
In February 2022, Labour-run Ealing Council announced it had awarded Hounslow-based Henry Construction a £40m contract to build 145 new homes on six sites for its council owned Broadway Living. As well Ealing Council, Henry was also building for private companies in Ealing and across London and South East England.
At the time of the announcement of Henry winning the contract, it was expected the homes would be ready by the following year. In a statement, the council said: “Delivery of the new homes is targeted for mid-2023.”
The locations being developed are: Dean Gardens and Maitland Yard, West Ealing, Chesterton Close and Evesham Close, Greenford, Norwood Road, Southall, Shackleton Road, Southall, Wood End, Northolt and Buckingham Avenue in Perivale.
Councillor Lauren Wall, the then Ealing Council lead member for genuinely affordable homes said: “These fantastic new homes will offer more local families a safe, comfortable roof over their heads.
Last month, it was also fined £234,000 by the Health and Safety Executive (HSE) after a demolition worker suffered serious injuries after falling from a platform in Kensington in West London.
Henry, which had a turnover of £400m a year, is said to have been having financial difficulties paying suppliers and workers for several months with work coming to a halt on a number of its sites.
Ealing Liberal Democrats planning and housing spokesperson Jon Ball told EALING.NEWS: “This is a symptom of the lowest bidder approach taken by Ealing Council. The Council’s financial assessment should have detected that Henry underbid to secure contracts, especially as Henry failed to publish supplier payment data two years ago and with the background that Mark Henry’s previous company collapsed owing £23m in 2009.”
Mr Ball added: “The Labour administration needs to urgently reveal how Henry passed their financial tests, how soon replacement developers will be procured and how local contractors can be saved from being dragged under.”
Neil Reynolds, chair of Ealing Green Party told EALING.NEWS: “The Labour council’s decision to sign these contracts should be scrutinised closely. The collapse of Henry Construction begs the question what due diligence did the council undertake? With interest rates now likely to continue to rise there could be more bad news to come.”
Julian Gallant, leader of Ealing Conservatives told EALING.NEWS: “This is a very worrying development and indicative of an approach that will need to be investigated across the Borough. It appears that Ealing Council has been seduced by Henry’s low bids, and has overlooked Henry’s failure to publish supplier payment data. Ealing Council is fully aware of the cost crisis in the building industry.”
Speaking to Construction News, Kathryn Kligerman, a construction, engineering and procurement partner at law firm Devonshires said: “Employers have, over the past few weeks and months, already been grappling with the difficult side effects of Henry’s downward trajectory, such as a lack of labour on site, slow and intermittent progress and an unpaid supply chain.”
EALING.NEWS has asked Ealing Council for a comment.
