Agenda item

[Report of the Director of Environment and Neighbourhoods. To be introduced by the Cabinet Member for Neighbourhoods]

This report seeks the approval to award a Highway Maintenance and Minor Improvement Works Contract for an initial term of five years, with an option for a two year extension period; thereby the maximum term of the contract being seven years.

The Cabinet Member for Neighbourhoods introduced the report which sought approval to award a Highway Maintenance and Minor Improvement Works Contract, in accordance with CSO 9.07.01(d) for an initial term of five years, with an option for a two year extension period; thereby the maximum term of the contract being seven years. The maximum value of the contract was proposed to be £84 million, if the contract remained in existence for the maximum seven-year term.

Cabinet noted that maintaining and improving the road network played a key role in enabling the achievement of wider economic aspirations for the borough. The contract has been drafted in a flexible way which allowed integration of a potential in-house maintenance service or other alternative arrangement arising out of operational changes, throughout the contract period without penalty.

In response to questions from Cllr Ogiehor,

• With regards to quality assurance queries, the Cabinet Member was happy to receive details of perceived issues with contracted works and would raise these through the quality assurance process.
• It was reiterated that this contact was for a maximum price of £84m but this did not mean that the Council would spend up to this amount. This figure was included to deter the need to go back to Cabinet should a maximum price be reached.

Further to considering exempt information at item 41,

RESOLVED

1. To approve pursuant to Contract Standing Order 9.07.01(d) the award of a contract for Highway Maintenance and Minor Improvement Works to Bidder H1 (identified in the exempt part of the report), for an initial five (5) year term, commencing no later than 1^st July 2020 with an option to extend (at the Council’s absolute discretion as contained with the terms and conditions of the Contract) for a further two years.

2. To note that further work is being carried out to ascertain the level of future funding for highways maintenance and footways improvement works.

3. To note the development of a business cases to support the expansion of the maintenance programme and to consider the establishment of a Direct Services Organisation to provide part or all of the maintenance works in order to build resilience and increase responsiveness of the delivery.

Reasons for decision

Officers have undertaken a competitive tendering exercise, in accordance with the Public Contract Regulations 2015, in relation to Highway Maintenance and Minor Improvement Works Contract. Through this process Bidder H1 submitted the Most Economically Advantageous Tender, and therefore, in compliance with the Public Contract Regulations 2015, can be awarded the Highway Maintenance and Minor Improvement Works Contract.

The delivery of Highway Maintenance and Minor Improvement Works, both planned and reactive, contribute to the delivery of a number of Council priorities, as well as supporting the Council in complying with its statutory duties arising out of the Highways Act 1980 and Traffic Management Act 2004.

Alternative options considered

Haringey must continue to carry out its statutory duty to maintain the highway network so that they remain safe for road users whilst this review takes place. The tendered contract has been drafted in a flexible fashion which allows integration of a potential in-house maintenance service or other alternative arrangement arising out of operational changes, throughout the contract period without penalty