A developer has faced criticism over 'simply unacceptable' delays to a major flats project in Oldham, with questions being raised about what went wrong.
Contract Terminated
Earlier this month, First Choice Homes Oldham (FCHO) announced it had ended its contract with Robwood Construction Limited, which was appointed to deliver a 30 affordable apartment scheme on Shaw Street in May 2022. The development, comprising a mix of one and two-bedroom flats, was originally due for completion in February 2024.
The housing association, which manages approximately 11,500 homes, stated that while there had been several delays to the project, these 'now are solely focused on poor contractor performance'. FCHO said it had collaborated with Robwood Construction 'to address the delays and to ensure the project was finished by the end of last year'.
Despite £3.7 million being handed over, the scheme remains unfinished. FCHO confirmed it had terminated the contract as 'progress has still remained unacceptably slow' and has now taken over the site to complete it.
CEO Statement
Chief executive Mark Gifford commented: 'This is not a decision we have taken lightly but a delay of more than two years by this main contractor to finish this project is simply unacceptable. It has come to the point where we can see no realistic prospect of this development finishing unless we take control. This is despite considerable financial and practical support from FCHO including ensuring all payments due to Robwood Construction have been made.'
Mr Gifford added that letters explaining the situation had been sent to residents, saying: 'We want to see this development finished because people need to move into these homes. We also recognise this has been a building site for too long and nearby residents are rightly concerned about the delays. We are now on site and assessing just how long it will take to finish the project. When we have made this assessment, we will be able to give a realistic completion time frame to the community.'
Local Councillor Reaction
Councillor Lewis Quigg, Reform UK councillor for Royton North and group leader, said: 'Given the near two-year delays to the project, questions still need to be asked why it took so long. The snap decision to terminate the contract was probably needed given the delays. Whether FCHO like it or not, this scheme was a flagship scheme in Royton. Hopefully the scheme can finally be finished. We can only hope that the council ensure the properties go to local people from Royton.'
FCHO Response
A FCHO spokesperson added: 'We are now in control and we expect to work with some of the respected supply chain that was previously on site to ensure work continues at pace. Everyone can be assured Shaw Street will be completed as soon as possible.'
When asked whether FCHO is seeking to recover any funds provided to the developer, the spokesperson said: 'The situation is commercially sensitive.'
Robwood Construction's Position
Robwood Construction has faced several winding-up petitions over the past year, with the most recent filed in April. These proceedings are understood to be ongoing. A winding-up petition is legal action taken by a person or organisation who believes they are owed money. If successful in court, it gives the right for the company to be wound up if the debt cannot be paid.
Mr Gifford explained: 'FCHO was aware of the winding-up petitions Robwood Construction Limited was facing in the summer of last year. These are not unusual in the construction sector and in other industries. However we then undertook extensive due diligence around the cash flow and solvency of Robwood before we gave the company further funds for Shaw Street to reflect the well documented and nationwide increases in labour costs and materials. Those funds came with a stipulation the project's supply chain were to be paid with the money and this was overseen by our on-site agent.'
Mr Gifford confirmed that the termination of the contract was not related to any potential solvency issues.
The Local Democracy Reporting Service attempted to contact Robwood Construction through its registered accountants on Companies House and understands the enquiry has been passed onto the developer. Lee Birkett, the sole director of the company, has also been approached multiple times for comment.
