A COUNCIL has agreed to spend an extra £18m to finish refurbishing several tower blocks after a damning review revealed significant failures in how the project has been run.

Sandwell Council will spend millions more revamping tower blocks at the Darley House estate and The Lakes in Oldbury, as well as Alfred Gunn House in Langley and Thorn Close in Wednesbury.

As much as £55 million has already been spent on the refurbishment.

A critical review of Sandwell Council found there was “inadequate” management of the major refurbishment projects, avoidable delays as well as “significant additional costs” brought on by ever-changing contracts. 

The huge increase – nearly a fifth of the £55m agreed between 2017 and 2022 – was approved with little comment from the Labour-run authority at a cabinet meeting on Wednesday with the ‘discussion’ of the damning report not even reaching five minutes.

Cllr Vicky Smith, cabinet member for housing and the only person to respond to the report, said the review had “laid bare the serious failings” of the council and standards had “fallen below what had been reasonably expected.” She said the extra cost was “extremely disappointing.”

“In times of constrained resources, it is disappointing that unanticipated funding is required over and above the budgets initially set,” she said in a prepared statement at the cabinet meeting on September 11. “Learning lessons ensuring that any investment is fully justified and having robust processes and governance to oversee project delivery will be essential for future major projects and we fully intend to ensure that this is implemented for any future major projects.”

A third of both Alfred Gunn House and The Lakes would be inhabitable if left unfinished according to Sandwell Council. 

 The review found that original budgets were “inadequate” from the start and failed to include essential fees and costs. Several changes have led to expensive delays and compensation claims from contractors – many of which are still to be decided and could see the budget balloon over even further. The homes also failed to meet ‘decent’ social housing standards.

The review by the council found the authority took a ‘frowned upon’ approach by ignoring multi-million-pound ‘contingency’ plans. The cabinet report said the plans which includes money set aside to cover unforeseen costs, risks or changes were scrapped so projected costs were within the budget approved. The cabinet report said excluding contingencies was a “high-risk approach” and “not recommended practice.”

The work that was originally approved was “insufficient” to even meet ‘decent homes standard’ – the minimum standard for social housing that has been in place for decades. 

Several compensation claims from contractors are still to be decided and the council says “there remains a significant range of potential final costs that cannot yet be determined.”

In the report, Sandwell Council said it had already made “significant efforts” to make sure the failures were not repeated. 

The work to refurbish Alfred Gunn House has been particularly problematic with a 15-month delay in moving telecommunications equipment from the block’s roof blocking contractors from accessing the top of the building which has led to an estimated £3 million delay.

The building’s original sprinkler system did not meet standards which required extra electrical work and added ceilings and additional structural support work to the building’s roof and balcony due to the condition of the concrete will cost at least £1.2 million.

As much as £3.3 million has been added to the budget for new bathrooms, kitchens and fire doors. Darley House has racked up an extra £3 million alone from also having contingency plans excluded from the original budget and by a delay in handing over the building to contractors. A loss and expense compensation claim at The Lakes is still to be decided and that comes after an extra £595,000 in architect costs was racked up by redesigns that included work to structural beams, lift shafts, windows and vents.