Agenda item

Award of Contract for Internal Major works. (Clarke)

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) to carry out internal improvement works to 929 dwellings to bring them up to the Decent Homes Standard. The contract award value will be for the sum£5,448,076.81.  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, £544,807.68 which represented 10% of the contract sum to enable design work and specialist surveys to be completed, whilst the contract is finalised.

 

RESOLVED

 

1.          That pursuant to the Council’s Contract Standing Order (CSO) 9.07.1(d), for the Cabinet Member to approve the award of a contract to the preferred contractor identified in the exempt appendix A for the renewal of kitchen, bathroom and internal electrics including smoke alarms, rewires etc.

 

2.         To note that works programmed will be conducted in Bruce Grove, Crouch End, Haringey, Seven Sisters, St Ann’s, Stroud Green, and Tottenham Green areas. The total sum of works will be £5,448,076.81.

 

3.         To approve the issue of a letter of intent for an amount up to, but not exceeding £544,807.68, that represents 10% of the contract sum.

 

4.         To approve the total project costs, including fees of £218,236 and client contingency sum as set out in the exempt part of the 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

 

Homes for Haringey requires Cabinet approval to award the contract for internal works to 927 dwellings in the Bruce Grove, Crouch End, Haringey, Seven Sisters, St Ann’s, Stroud Green, and Tottenham Green areas. This will enable the essential internal works such asthe renewal of kitchens, bathrooms, and internal electrics to progress. This is following a competitive mini competition in conjunction with Haringey Council’s Procurement team via the London Construction Programme Major Works framework (LCP Framework) and processes.

 

The tender process was carried out in accordance with the LCP 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

 

An alternative option would be for Homes for Haringey to either use third party industry frameworks or a stand-alone OJEU compliant tender process to deliver the works. Homes for Haringey sought support and advice from Haringey Council’s Strategic Procurement and determined the LCP Framework as being the optimum route to the market. This considered aspects such as the speed of access to quality-checked contractors and focus on companies that concentrate their resources in the local area.

 

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.

Supporting documents: