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22.55% Extra Cost for the Additional Heating Works

Heating Works - Notification Of Additional Works Today the Camden Council announced to the leaseholders that they will have to pay 22.55% more for the additional works concerning the heating system on the estate.
The current estimated bill for Goldthorpe is £6918.53
The 22.55% is an additional £1560.13
TOTAL: £8,478.66 (Estimated).

The following letter regarding the Additional Heating Works was sent to the leaseholders of the Curnock Estate. The original documents can be found on this link.

Home Ownership Services
Housing and Adult Social Care
London Borough of Camden
Bidborough House
38-50 Bidborough Street

Tel: 020 7974 4444
Fax: 020 7974 6327

Date: 8th March 2011
Prop Ref:
Contract code: 09/303
Officer: Harry Odoi
Tel: 0207 974 2813

The Leaseholder(s)

Camden Street
London NW1 OHH

Notification of Additional Works

Dear Leaseholder(s),

Contract: Estate Heating Works

Unit Address: Goldthorpe,Camden Street,London,NW1 OHH

I write further to our Section 20 Notice issued to you on 5th March 2010 regarding the heating works to the Curnock Street Estate.

We would like to inform you that it has been necessary for us to make a variation to the specification and that this is likely to incur additional costs to the final contract sum.

The main variation to the original specification is the renewal of hot water pipe work to both car parks on the estate. The risk of non renewal is that failures in the pipe work could occur causing loss of service. There could also be a reduced pipe diameter in the old pipe work which could cause a loss of or poor circulation of the hot water. There is also the loss of heat through uninsulated pipe work. The benefits are that all of the distribution pipe work will have the same expected lifespan and should be good for another 30 years.

A copy of the revised works schedule is attached, with the latest costs and additional items of work included on it.

The increase in costs is summarised as follows:

• Original estimated cost of works: £1,588,616.90
• Revised estimated cost of works: £1,946,859.45
• Percentage increase in estimate: 22.55%

This letter is to advise you of the increased estimated cost for the contract, which is likely to result in approximately a 22.55% increase in your contribution. This will be confirmed when the works are completed and the final account issued.

Should you require further information on this matter at this stage please do not hesitate to contact me.

Yours sincerely,

Harry Odoi
Consultation and Final Accounts Officer