Thirteen small businesses in Paddington will no longer receive shop-front makeovers after Westminster City Council abandoned a planned high street improvement scheme. Over £400,000 has already been spent on the project, which will not go ahead due to rising costs.
Scheme scaled back after contractor failure
The scheme was expected to give 19 businesses in North Paddington and Paddington Bayswater shopfront makeovers, although now only six will be completed. Planned works included the re-painting of shop fronts, new signage and repairs to facades.
Westminster City Council has decided to abandon Phase Two of the project, leaving 13 businesses without the promised revamps. The first part of the scheme, covering six businesses in Paddington Bayswater, will still be completed by a new contractor.
Contractor collapse adds £200,000 in costs
The decision comes as the council’s original contractor Cuttle Construction ceased trading while in the middle of delivering Phase One. This is estimated to have cost the council an extra £200,000 to cover legal fees and remedial works. There is also an estimated budget shortfall of £80,000 to complete Phase Two of the scheme at Paddington Bayswater.
A council report reads: “The decision not to progress the remaining Phase 2 Schemes reflects the increased cost and delivery risk following the original contractor ceasing to operate, the need for further procurement to be undertaken and the need for further capital commitment to demonstrate proportionate value for money, alongside balancing the expected place and business benefits against the cumulative visual and operational impact of further shopfront interventions.”
Refunds and next steps for businesses
Businesses who have made contributions to the project will be issued refunds, along with an extra 10 percent as a gesture of goodwill. The completed designs for the abandoned schemes will remain available should businesses wish to go ahead with these independently.
