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Croydon council goes bust

2

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  • aliwibble said:
    Posted for information/interest.
    No political comments please.


    Where's that from?

    It's from @wheresmeticket on Charlton Life.
  • My company was turned down for a project at a London council this month for being 'too cheap'. We demonstrated that the rate was fair, that we weren't 'buying' the work and that we were doing similar work elsewhere for the private sector at the same rate. But, no, we were told that we were too cheap. 

    I'm an ex councillor and fan of local government but at times the sector doesn't help itself...
    Dare I say it, you never had a chance as they'd already decided who was getting the work.
  • Addickted said:
    Croydon Council started a construction company called Brick by Brick in 2015. So far they've borrowed just the £260m to support its operation.

    To date they've built 283 'homes', which includes plenty of 1 bedroom flats.

    https://insidecroydon.com/2020/10/16/last-council-appointed-director-resigns-from-brick-by-brick/

    This is on top of the Westfield shopping centre fiasco which is set to cost £1.4bn and is already one year behind schedule with no signs of even getting close to completion.

    https://insidecroydon.com/2020/08/17/ex-councillor-admits-he-was-wrong-over-westfield-scheme/

    Why don't some Councillors just stick to serving the people rather than themselves and their egos?
    The Westfield "incident" in Bradford was an absolute disaster.  The city center was only just getting back on its feet before Covid. 
  • Rob7Lee said:

    Dare I say it, you never had a chance as they'd already decided who was getting the work.
    Oh, I know, but at least say that we weren't good enough or something. 
  • Rob7Lee said:

    Dare I say it, you never had a chance as they'd already decided who was getting the work.
    Oh, I know, but at least say that we weren't good enough or something. 
    I don't know the council, but it's quite possible the contract was decided before you submitted your bid, on the basis it was they had to have a 'reason' as to why you didn't win of course so probably just made up something semi believeable.
  • My company was turned down for a project at a London council this month for being 'too cheap'. We demonstrated that the rate was fair, that we weren't 'buying' the work and that we were doing similar work elsewhere for the private sector at the same rate. But, no, we were told that we were too cheap. 

    I'm an ex councillor and fan of local government but at times the sector doesn't help itself...
    The last servicing contract I procured was a five year partnering agreement.

    The bottom line price for the work at almost £9m counted for 30% towards who actually who won the contract. The rest was based on delivery & performance along with customer involvement (99.9% of whom really couldn't give a damn), service improvement and achieving the set KPIs.
  • Rob7Lee said:
    Rob7Lee said:

    Dare I say it, you never had a chance as they'd already decided who was getting the work.
    Oh, I know, but at least say that we weren't good enough or something. 
    I don't know the council, but it's quite possible the contract was decided before you submitted your bid, on the basis it was they had to have a 'reason' as to why you didn't win of course so probably just made up something semi believeable.
    The tendering process for Local Authorities is pretty transparent.

    Mind you, that doesn't prevent post tender negotiations - like those that happened with Rydon's for the the Grenfell refurb project.
  • edited November 2020
    Will they put Dido Harding in charge of Croydon?
    These days conversations about local authority spending should be seen in the light of the Grenfell Tower tragedy.
    My observation is that if motorways cost £10 million a mile to build, for £5million you get half a mile of motorway.
  • The standard of some of the building work done on council properties is shocking and I'm not clear who signs it off.

    I'm also amazed at some of the developments that get planning permission - there have to be backhanders involved.
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  • Having worked for 3 inner London councils in recent years, I can, without doubt, confirm that they all waste tonnes of money whether it be procurement, salaries and ridiculous purchases. The amount of staff nicking a living/deadwood etc is staggering.
    Even though they aren't a council i reckon you can add tfl to that description of staff on high salaries and nicking a living
  • So if a council goes bust, what then?
    Bin collections?
    Road repairs?
    Sewers?
    Libraries, swimming pools etc?
    How will these and more be funded?
  • So if a council goes bust, what then?
    Bin collections?
    Road repairs?
    Sewers?
    Libraries, swimming pools etc?
    How will these and more be funded?
    Hope the Government helps out? I can't wait for Spelthorne to sort out its property portfolio.

    So many examples at present of public money being wasted or misused?
  • There was a West London council a few years ago who were dabbling in the financial markets, maybe options or futures.

    They stood to make a huge loss and sued the bank saying that they shouldn't have let them trade in these instruments.

    Council won and all the trades were undone.
  • iaitch said:
    There was a West London council a few years ago who were dabbling in the financial markets, maybe options or futures.

    They stood to make a huge loss and sued the bank saying that they shouldn't have let them trade in these instruments.

    Council won and all the trades were undone.
    Yep they're classified as "retail clients" now in terms of regulated investment. Same criteria as average Joe customers.
  • My company was turned down for a project at a London council this month for being 'too cheap'. We demonstrated that the rate was fair, that we weren't 'buying' the work and that we were doing similar work elsewhere for the private sector at the same rate. But, no, we were told that we were too cheap. 

    I'm an ex councillor and fan of local government but at times the sector doesn't help itself...
    This sort of thing happens everywhere. 
    Whenever any work needs doing at a London fire station the contractors who are given the job can pretty much charge whatever they like. 
    This is because they are on a small list of approved company's. 
    I am not exaggerating when I say millions of pounds could be saved every year by allowing local firms to put in a price for the work.this happens throughout the public sector and is an absolute disgrace. 
  • Addickted said:
    Croydon Council started a construction company called Brick by Brick in 2015. So far they've borrowed just the £260m to support its operation.

    To date they've built 283 'homes', which includes plenty of 1 bedroom flats.

    https://insidecroydon.com/2020/10/16/last-council-appointed-director-resigns-from-brick-by-brick/

    This is on top of the Westfield shopping centre fiasco which is set to cost £1.4bn and is already one year behind schedule with no signs of even getting close to completion.

    https://insidecroydon.com/2020/08/17/ex-councillor-admits-he-was-wrong-over-westfield-scheme/

    Why don't some Councillors just stick to serving the people rather than themselves and their egos?
    Private Eye (yeah, I know...) have been following this scandal for months. 
    Some of the stuff they have revealed, including payoffs, is disgraceful ... and they are not the only councils. 
  • How much are Capita, Group 4, Serco and firms like them getting from the government for various services.
  • Sorry I should say how much are the bosses of the above firms getting and most pay minimum wage.
  • iaitch said:
    How much are Capita, Group 4, Serco and firms like them getting from the government for various services.
    Enormous amounts ... again, Private Eye have been on top of this 
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  • My company was turned down for a project at a London council this month for being 'too cheap'. We demonstrated that the rate was fair, that we weren't 'buying' the work and that we were doing similar work elsewhere for the private sector at the same rate. But, no, we were told that we were too cheap. 

    I'm an ex councillor and fan of local government but at times the sector doesn't help itself...
    This sort of thing happens everywhere. 
    Whenever any work needs doing at a London fire station the contractors who are given the job can pretty much charge whatever they like. 
    This is because they are on a small list of approved company's. 
    I am not exaggerating when I say millions of pounds could be saved every year by allowing local firms to put in a price for the work.this happens throughout the public sector and is an absolute disgrace.  
    If you're making a major purchase for yourself, like a car etc, you tend to compare a number of options before making a final decision.  
    When it's not your personal money it's easy to throw it about.  
  • My company was turned down for a project at a London council this month for being 'too cheap'. We demonstrated that the rate was fair, that we weren't 'buying' the work and that we were doing similar work elsewhere for the private sector at the same rate. But, no, we were told that we were too cheap. 

    I'm an ex councillor and fan of local government but at times the sector doesn't help itself...
    If jury service taught me anything you werent too cheap, you just werent giving those at the top of that council any nice watches, cars or holidays
  • My company was turned down for a project at a London council this month for being 'too cheap'. We demonstrated that the rate was fair, that we weren't 'buying' the work and that we were doing similar work elsewhere for the private sector at the same rate. But, no, we were told that we were too cheap. 

    I'm an ex councillor and fan of local government but at times the sector doesn't help itself...
    This sort of thing happens everywhere. 
    Whenever any work needs doing at a London fire station the contractors who are given the job can pretty much charge whatever they like. 
    This is because they are on a small list of approved company's. 
    I am not exaggerating when I say millions of pounds could be saved every year by allowing local firms to put in a price for the work.this happens throughout the public sector and is an absolute disgrace.  
    If you're making a major purchase for yourself, like a car etc, you tend to compare a number of options before making a final decision.  
    When it's not your personal money it's easy to throw it about.  
    Oh absolutely I agree.
    It still doesn't make it right though 
  • My company was turned down for a project at a London council this month for being 'too cheap'. We demonstrated that the rate was fair, that we weren't 'buying' the work and that we were doing similar work elsewhere for the private sector at the same rate. But, no, we were told that we were too cheap. 

    I'm an ex councillor and fan of local government but at times the sector doesn't help itself...
    This sort of thing happens everywhere. 
    Whenever any work needs doing at a London fire station the contractors who are given the job can pretty much charge whatever they like. 
    This is because they are on a small list of approved company's. 
    I am not exaggerating when I say millions of pounds could be saved every year by allowing local firms to put in a price for the work.this happens throughout the public sector and is an absolute disgrace.  
    If you're making a major purchase for yourself, like a car etc, you tend to compare a number of options before making a final decision.  
    When it's not your personal money it's easy to throw it about.  
    Oh absolutely I agree.
    It still doesn't make it right though 
    That's what I meant it's easy to spend money when it's not yours.
  • It is not in any government's interest to clampdown on such wastage and expenditure as the more money spent the more tax, VAT indirect and direct they'll receive and it must add up significantly.

    Probably also the ludicrous and self-perpetuating culture of having to justify increased annual budget requests so spend over the odds to demonstrate the need for next year's budget.

    Really piss poor but unless the media and public get a hold of it like with the MP's expenses then it'll likely continue.

    Given the fact that we've arrived at a point of effectively, and collectively shrugging off 50,000 Covid deaths (many of which may have been avoidable), failed test and trace, garden bridges, contracts for mates etc then I won't hold my breath for any reform.

    We've become resigned to accepting piss poor governance and lack of accountability and distracted by having a pop at each other over very trivial things.   Also many are so entrenched in allegiance to left or right/ red or blue that they will not condemn shithousery behaviour from their side regardless of how blatant it may be.

    Silly

    Hence all the holes that mysteriously appear in our roads come February/March with Conway/Cadant/Thames water sat next to them watching the world go by.
  • It is not in any government's interest to clampdown on such wastage and expenditure as the more money spent the more tax, VAT indirect and direct they'll receive and it must add up significantly.

    Probably also the ludicrous and self-perpetuating culture of having to justify increased annual budget requests so spend over the odds to demonstrate the need for next year's budget.

    Really piss poor but unless the media and public get a hold of it like with the MP's expenses then it'll likely continue.

    Given the fact that we've arrived at a point of effectively, and collectively shrugging off 50,000 Covid deaths (many of which may have been avoidable), failed test and trace, garden bridges, contracts for mates etc then I won't hold my breath for any reform.

    We've become resigned to accepting piss poor governance and lack of accountability and distracted by having a pop at each other over very trivial things.   Also many are so entrenched in allegiance to left or right/ red or blue that they will not condemn shithousery behaviour from their side regardless of how blatant it may be.

    Silly

    There is poor financial management across the political spectrum as you say - public money too easily spent.
  • It is not in any government's interest to clampdown on such wastage and expenditure as the more money spent the more tax, VAT indirect and direct they'll receive and it must add up significantly.

    Probably also the ludicrous and self-perpetuating culture of having to justify increased annual budget requests so spend over the odds to demonstrate the need for next year's budget.

    Really piss poor but unless the media and public get a hold of it like with the MP's expenses then it'll likely continue.

    Given the fact that we've arrived at a point of effectively, and collectively shrugging off 50,000 Covid deaths (many of which may have been avoidable), failed test and trace, garden bridges, contracts for mates etc then I won't hold my breath for any reform.

    We've become resigned to accepting piss poor governance and lack of accountability and distracted by having a pop at each other over very trivial things.   Also many are so entrenched in allegiance to left or right/ red or blue that they will not condemn shithousery behaviour from their side regardless of how blatant it may be.

    Silly

    Say that to my face, you Toby!
  • It is not in any government's interest to clampdown on such wastage and expenditure as the more money spent the more tax, VAT indirect and direct they'll receive and it must add up significantly.

    Probably also the ludicrous and self-perpetuating culture of having to justify increased annual budget requests so spend over the odds to demonstrate the need for next year's budget.

    Really piss poor but unless the media and public get a hold of it like with the MP's expenses then it'll likely continue.

    Given the fact that we've arrived at a point of effectively, and collectively shrugging off 50,000 Covid deaths (many of which may have been avoidable), failed test and trace, garden bridges, contracts for mates etc then I won't hold my breath for any reform.

    We've become resigned to accepting piss poor governance and lack of accountability and distracted by having a pop at each other over very trivial things.   Also many are so entrenched in allegiance to left or right/ red or blue that they will not condemn shithousery behaviour from their side regardless of how blatant it may be.

    Silly

    Unfortunately that’s endemic in many industries. 
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