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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Tower Hamlets has approved Lovell Partnerships Ltd to investigate and plan the completion of its partly built Arnold Road housing scheme in Bow. The approval is for a pre-construction services agreement (PCSA), not the main construction contract: the council will decide whether to appoint Lovell for the remaining works after reviewing the PCSA findings.
What Tower Hamlets has approved
At its meeting on 23 September 2026, Tower Hamlets Cabinet approved a PCSA for Lovell through a compliant public-sector framework. The agreement is intended to let the council and contractor assess the incomplete development at 3–5 Arnold Road, Bow, and develop a sound plan for finishing it. The council’s Cabinet decision record makes clear that no main works contract has yet been awarded.
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The scheme was interrupted when its original contractor, Jerram Falkus Construction Ltd, became insolvent. Work was left partially complete, and the council says it needs further technical, regulatory and commercial due diligence before it can settle the work required, the delivery programme or the cost.
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The council describes Arnold Road as a strategically important development of 62 affordable homes and commercial space. Its June 2025 project announcement set out the planned mix as council homes at social rent or Tower Hamlets Living Rent, with one- to four-bedroom layouts, including six wheelchair-adaptable homes across two blocks. Five commercial units are planned at ground level.
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Those figures describe the intended scheme, not proof that the homes or commercial units have been completed. The council’s 2025 announcement marked a topping-out milestone; the subsequent insolvency and current recovery process mean that the remaining work and its programme still need to be assessed.
What Lovell must establish during the PCSA
The PCSA is a planning and investigation stage. The council expects surveys, specialist investigations, reviews by consultants and statutory approvals to inform a completion strategy. That work includes examining the reinforced concrete frame and reviewing existing construction. The precise remedial scope is not yet settled.
The PCSA is intended to validate the construction risks and give the council a defensible basis for deciding what to build, how to procure it, how long it will take and what it will cost. In particular, it must assess:
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- the remaining scope of work and any remedial measures required;
- a realistic construction programme;
- the cost to complete;
- delivery and construction risks; and
- value for money under the proposed delivery approach.
Why the delivery model is not final
Lovell’s current preference is management contracting. Under that approach, construction work is organised through separate trade packages managed by a contractor, rather than being delivered as one traditional design-and-build package. Tower Hamlets has not yet adopted Lovell’s preference as the final model: the PCSA must examine its cost, programme, risk and value-for-money implications before the council decides how to proceed.
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The council’s decision record also says it considered a new procurement for a replacement PCSA provider but did not recommend it, citing the delay and duplication of investigations that it expected a fresh process to cause. That is the council’s stated rationale; it is not a published comparison of the alternatives’ eventual costs or performance.
What the £25m figure does—and does not—tell you
Construction Enquirer described Arnold Road as a £25m job in its 12 October 2026 report. The public Cabinet record confirms that the council approved a budget uplift for completion, but detailed budget figures are in an exempt appendix. The £25m headline should therefore not be treated as a newly validated final cost, the amount of the uplift or a confirmed contract sum. The cost to complete remains subject to the PCSA.
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Timeline and next decision
The council’s anticipated milestones, recorded in the Cabinet agenda and minutes for 23 September 2026, are forecasts rather than guaranteed dates.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitches| Milestone | Status |
|---|---|
| Final PCSA report in April 2027 | Council’s anticipated date; investigation findings and approvals will inform the report. |
| Main works appointment | Not yet decided. After reviewing the PCSA, the council may proceed with Lovell or seek an alternative contractor. |
| Practical completion in June 2028 | Council’s current target, subject to the PCSA findings and later procurement decision. |
The practical completion target depends on resolving the technical scope and cost and then making a decision on the main works. It should be read as a programme expectation, not a guaranteed handover date.
Why the recovery matters for Bow
Arnold Road is intended to provide affordable council housing alongside ground-floor commercial space. The council’s June 2025 description emphasised the planned social rent and Tower Hamlets Living Rent homes, including family-sized and accessible layouts. Mayor Lutfur Rahman made that statement at the topping-out milestone in 2025; it was not a comment on the later recovery decision.
For now, the key change is that Lovell has been approved to help determine how the stalled development can be completed. Whether it also carries out the main works, what those works will involve and what they will cost remain decisions for after the PCSA.
Quick Recap
Sources
- Tower Hamlets Cabinet decision: Arnold Road Development (3–5 Arnold Road) – rationale and delivery, 23 September 2026.
- Tower Hamlets Cabinet agenda and minutes, 23 September 2026.
- Tower Hamlets: Milestone reached on housing exclusively for social rent in Bow, June 2025.
- Construction Enquirer: Lovell lined up to rescue £25m east London housing job, 12 October 2026.
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