Homes: council seeks legal advice

LEGAL advice is being taken over increasing compensation claims for Oldham’s major improvement of sheltered homes for older people.

The £100 million private finance initiative (PFI) capital contract is improving some homes, and building flats.

Oldham Council is two years into the 30-year contract, between the authority, Oldham Retirement Housing Partnership, and builder Bullock Construction.

It is the biggest contract of its kind in the country.

But a report from Timothy English, the principal project officer, says the last few months have seen increasing compensation claims from the partnership, mainly for additional expenditure.

And Councillor John McCann, cabinet member for community services and housing, said: “Since the contract was signed there have inevitably been various changes to the original specifications and surveys.

“The council has instigated several design changes that have responded either to tenant requests or national changes in the way in which sheltered housing and extra care services are being provided.

“All the council is seeking to do is to bring in additional support to ensure that any additional costs so claimed are legitimate under the terms of the contract.”