Agenda item

Award of Contract for Internal Major works. (Tull)

Minutes:

The Cabinet Member for Planning, Licensing and Housing Services considered the report which sought approval for the award of a contract to contractor C (identified in the exempt part of the report) for the sum of £5,606,833.33. The project would conduct internal improvement works to bring 947 dwellings up to the Decent Homes Standard.  The report also sought approval for the issue of a letter of intent to the preferred contractor up to the value of, but not exceeding, £560,683.33 which represents 10% of the contract sum.  This will enable design work and specialist surveys to be completed, whilst the contract is finalised.  An additional contingency sum is also requested in the exempt part of the report.

   

RESOLVED

 

1.         To approve the award of a contract to the preferred contractor C, identified in the exempt appendix A. This will be for the renewal of kitchen, bathroom and internal electrics including smoke alarms where required.

 

2.         To note the total sum of works will be £5,606,833.33 excluding fees.

 

3.         To approve the issue of a letter of intent for an amount up to, but not exceeding £560,683.33 that represents 10% of the contract sum.

 

4.         To approve the total project cost, including fees of £224,595 and client contingency sum as set out in the exempt report.

 

5.         To note that £45,000 of the total sum has already been spent on consultant design fee as part of the feasibility works.

 

Reasons for decision

 

A competitive tender was undertaken in conjunction with Haringey Council’s Procurement team via the London Construction Programme Major Works Framework (LCP Framework) and processes.  This will enable the essential internal works such as the renewal of kitchens, bathrooms, and internal electrics to progress.

 

The tender process was carried out in accordance with the framework requirements that was based on 40% price and 60% quality.

 

Based on the tender evaluation it is recommended that the tender is awarded to contractor C. The details of the tender evaluation  are  outlined in appendix A, the exempt part of this report. 

 

Properties within this project include homes that have been non decent since 2015-16. The project will enable works to commence for properties to be brought up to the Decent Homes Standard.

 

Alternative options considered

 

Alternative routes for tender were considered.  This included the option to either use third party industry frameworks or undertake a standalone compliant tender process to deliver the works. Homes for Haringey sought support and advice from Haringey Council’s Strategic Procurement team and determined the LCP Framework as being the optimum route to the market. This was because it enabled the tender process to be completely quickly, with assured standards and would meet the social investment requirements of the Council as set out in LCP procurements.

 

The option of not undertaking this work was also considered.  However, it would result in Homes for Haringey not achieving  the agreed objectives within  the Asset Management Strategy 2020-25 of achieving 100% of homes meeting the Decent Homes Standard by 2025. It would also result in increased repairs costs and potential resident dissatisfaction, due to under investment in their homes.

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