Firm was chasing ISG Pearce for £4m to carry out repair work
A Bristol-based housing association has announced it is demolishing a 21-home block after being unable to recover £4m to fix defects from the collapsed contractor that built it.
Elim Housing Association has told residents of Bouverie Court they must move out of their homes within a year.
The scheme was a former pub that was turned into 14 flats and seven houses for affordable rent in 2011. It was built for Elim by ISG Pearce which went into voluntary liquidation following the collapse of the wider ISG group last September.
Elim carried out an external wall fire safety survey in 2021 and found an “extensive” number of issues with the structure and build quality.
It implemented interim safety measures while pursuing a legal claim against ISG Pearce for around £4m to carry out remediation work.
A spokesperson for the 900-home landlord said that as a smaller housing association with limited funds, Elim’s board has decided it was not financially viable to undertake the remedial works.
Paul Smith, chief executive of Elim, said: “The decision to demolish our Bouverie Court homes was extremely difficult, and our primary concern is the welfare of our residents.
“Unfortunately, the inherited repairs, poor efficiency and structural issues identified at the scheme, along with the unviable potential long-term disruption for residents means we have taken the hard decision to demolish the properties after exhausting all other possible solutions.”
Smith added Elim is working closely with local authorities and other housing providers to help its residents find new homes.
ISG Pearce’s administrator Azets declined to comment.
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