Thread by @JSimpsonjourno

🚨Grenfell Inquiry lunchtime update🚨

This morning Peter Maddison (PM), the KCTMO’s director of assets and regen, gave evidence.

There was much discussion about the procurement of Rydon, and if meetings with the contractor before contract award breached procurement regulations.

More..
- PM was aware Rydon meeting would leave TMO open to challenge from other bidders
- Legal advice said certain meetings with contractors would breach procurement rules
- Emails reveal TMO told RBKC housing director to ‘bring pressure to bear’ on planners over cladding

Discussion begun around a meeting that took place between PM, other TMO staff, and Rydon on 18 March. A day before Rydon was officially chosen as the preferred bidder for the Grenfell refurb.

At the time Rydon had put forward a bid of £9.2m for the contract, which was the lowest bid when set against Durkan’s price of £9.9m and Mullaley’s bid of £10.4m. But still well above the TMO’s £8.5m budget.

The meeting was described as an ‘offline meeting’ by PM and was important to establish the processes of Rydon’s bid, including agreeing that they would work together on a value engineered option. PM says there was no negotiation over price.

PM’s notebook was then presented covering the period in question. On the date of the 18 March, there was no mention of the meeting. There was also no minutes or notes taken on it. PM asserts that this was transparent, the board was aware and not a ‘secret meeting’.

An email with advice from lawyers was presented that stated guidance does not permit clients to undertake meetings and negotiations with contractors prior to contract award. PM stressed that this was not a negotiation and it was processes rather than price that was discussed.

PM did accept that the meeting with Rydon did open the TMO up to risk of challenge but said legal advice said that was small, and it was worth it for commercial reasons and to avoid delays, re-tendering and price inflation

PM was asked by Sir Martin Moore-Bick whether he felt he breached procurement regs by talking to the contractor. He said it wasn’t in breach but agreed it didn’t “strictly comply with the letter of the process” and there was risk but thought was commercially the right thing to do

A later document charting TMO executive team meetings mentioned the fact that PM had met with Rydon informally (the meeting on the 19) and discussed whether savings could be made. PM said that this was about pricing clarification of things already in the tender.

The final part of the morning session focussed on the choice of the ACM cladding. PM’s daybook revealed that bidder Leadbitter had originally suggested ‘aluminium cladding’ could be a cheaper option.

An email from Rydon estimator Katie Bachellier sent on 20 March (2 days after the Rydon meeting), and during the standstill period of the contract, was then shown to the inquiry. This outlined the various savings that could be made by using different cladding materials and fixes.

After deciding on ACM, there was still the issue of getting planning approval for ACM over zinc. In an email from project manager Claire Williams, she can be seen calling for pressure to be brought on RBKC director of housing Laura Johnson to get assurances over the cladding.