Families in exclusive Kensington apartment block cry foul after management company’s boiler replacement project bill swells from £360,000 to £2.9MILLION
Residents at an exclusive apartment block in Kensington have accused their building’s management of overseeing a ‘ludicrously overpriced’ boiler replacement project – with costs ballooning from an estimated £360,000 to £2.9 million.
The eye-watering 250 percent increase on the original estimate, they claim, is not just unjustified – it’s unexplained and unaccountable.
The work, taking place at North End House, a handsome 1930s red-brick development near West Kensington, will cost almost £50,000 per flat and has left leaseholders reeling, with one saying: ‘We’ve essentially paid the price of a small house per flat – just to get hot water.’
The original plan was straightforward: replace old, defunct boilers with a more efficient system, moving the units from roof level to an existing basement boiler room – a shift that should have reduced the cost.
Instead, it triggered what residents are calling a ‘financial black hole’.
One resident, who wished to remain anonymous, told MailOnline: ‘We were quoted £360,000 in 2022. Then suddenly the new board presented a figure of £1.3 million.
‘That was already insane. But now we’re facing a total of £2.9 million. The maths doesn’t add up – it’s completely mad.’
The work, taking place at North End House (above), a handsome 1930s red-brick development near West Kensington, will cost almost £50,000 per flat
The original plan was straightforward: replace old, defunct boilers (above) with a more efficient system
The core boiler equipment – comprising the boilers and water cylinders – was confirmed by manufacturers to cost around £60,000 plus VAT
And they’ve done the maths.
The core boiler equipment – comprising the boilers and water cylinders – was confirmed by manufacturers to cost around £60,000 plus VAT, even with a slightly altered configuration. That begs the question: where is the other £2.8 million going?
Worse still, residents know that no formal building contract was signed before the work began.
‘They just gave it to a contractor on a gentleman’s agreement,’ one resident said. ‘They had money in the bank and pressed go – without proper oversight.
‘The contractor was being paid roughly £10,000 a day for 93 days. That’s public money. Leaseholders’ money. And there’s no documentation.’
Some residents are being charged £8,000 to £10,000 a year in surcharges alone, on top of existing service charges.
The winning contractor, Priory Gas Heating, is a tiny firm of two people according to Companies House filings, but is now managing a multi-million-pound project.
Problems with this contractor culminated last month when all hot and cold water was cut off in 60 flats for a week, after the ‘wrong pipe was cut’ leading to the flooding of a top floor flat.
The firm is working with JCF Building Management, the managing agents at North End House.
Residents say the lowest tenderer was disqualified for ‘non-compliance,’ allowing Priory to swoop in.
Residents also claim they have been repeatedly denied detailed breakdowns of what’s actually being installed.
Howard Nicholson the building manager from JCF Management said: ‘Howard Nicholson, the Head of Property Management at JCF Management, said: ‘Under RICS regulations, it is essential that sufficient funds are in place before entering into a formal building contract’
Residents say the lowest tenderer was disqualified for ‘non-compliance,’ allowing Priory to swoop in. Pictured the new boiler
Pictured: The new boiler that has cost the block £2.9million to be installed
Some residents are being charged £8,000 to £10,000 a year in surcharges alone, on top of existing service charges
‘We’ve asked for invoices, lists of equipment, anything. All we get are vague references to ‘specifications’ – performance specs, not itemised purchases. That’s not accountability.’
The board members who signed off on the boiler project are Rajiv Chakradaran, Kishore Reddy and Bassam Zaku.
Their approval of the scheme has drawn sharp criticism from residents, who say there was little transparency or consultation.
One leaseholder pointed to a similar project at Barons Keep, another West London estate, where 122 flats had a new boiler system installed for £352,000 plus VAT – about £420,000 in total.
‘That’s less than one-seventh of our cost – for twice the number of flats,’ the resident fumed. It makes no sense.’
With no clear explanation, residents are now exploring legal avenues, alleging possible mismanagement or worse by the board and managing agents, who have so far dismissed concerns with vague references to ‘national and global economic factors.’
‘Even if you allow for inflation,’ one former director said, ‘prices haven’t risen by 250% in just over a year.’
In response Howard Nicholson the Head of Property Management at JCF Management, said: ‘Under RICS regulations, it is essential that sufficient funds are in place before entering into a formal building contract.
‘At the time, around 25% of leaseholders had not made payment, meaning the project was at risk of indefinite delay.
‘To avoid prolonged disruption and increased costs, the Board of Directors of North End House Ltd decided to instruct Priory Gas Heating to proceed, with the understanding that additional funding would be secured through further collections and the planned sale of a freehold-owned flat.
‘A retrospective JCT Minor Works contract has now been executed, ensuring all contractual safeguards are in place.’
In regard to a detailed breakdown of costs not being provided to the residents, he said: ‘Leaseholders were provided with a detailed specification of works, which outlined all major components of the system.
‘The project team held meetings to explain that the replacement was not limited to boilers but involved extensive and essential infrastructure.
‘Some residents suggested cost savings through cheaper materials or omitting key components. These suggestions were assessed by our qualified designer and contractor but were found incompatible with the technical requirements of the system.
‘As the project is still ongoing it has not been possible to provide a full final account with complete breakdowns but this will be made available to leaseholders once all works are completed.’
North End House’s Board of Directors has not responded for comment.
