Agenda item

The Cabinet Member for Housing Services, Private Renters and Planning considered the report which sought approval for a contract variation in the sum of £400,000.00 for SER Contractor Limited for the replacement of kitchens and bathrooms and urgent communal repairs on the Broadwater Farm Estate.

The original contract was awarded by Cabinet to SER Contractor Limited on 21 October 2022. The Contract allowed for the replacement of 39 kitchens and 63 bathrooms to c.75 homes on the Broadwater Farm Estate. Since commencing the works, a further 18 properties were identified and included in the programme, therefore requiring a variation to increase the value of the contract.

The contract would also cover repair works to some of the communal areas and ad hoc repairs to pipework discovered during the refurbishment programme.

The Cabinet Member asked about the type of additional works which are being carried out to pipework. It was confirmed that this is the replacement of corroded leaking waste pipework from kitchen and bathrooms to the main stack.

The Cabinet Member asked whether the work on kitchens and bathrooms will mean that those properties would be brought to the Decent Home Standard and it was confirmed that they would do so.

The Cabinet Member asked whether there would be any additional costs to leaseholders arising from the additional works, and it was confirmed that there would not be, as the kitchen and bathroom programme is being delivered to tenanted properties only, and the internal communal repairs is not chargeable to leaseholders.

The Cabinet Member for Housing Services, Private Renters and Planning RESOLVED to

1.           In line with Contract Standing Order (CSO) 3.01 (c) and 10.02.1 (b) approve the extension of the contract in the sum of £400,000.00. The total spend for the contract would be a maximum of £1.17million.

Reasons for decision

Approval of the contract extension would enable the replacement of 46 kitchens and 84 bathrooms to c.93 homes on the Broadwater Farm Estate. Cabinet Approval on 21 October 2022 allowed for 39 kitchens and 63 bathrooms to c.75 homes on the Broadwater Farm Estate.

The contract extension would add an extra 7 kitchens and 21 bathrooms to the programme - including specially designed units for disabled residents. In total, there would be an additional 18 homes added to the programme.

In terms of the impact on the delivery programme, the additional works would add a further 8-10 weeks to the programme, resulting in a revised completion date May / June 2023.

The contract extension would also allow for urgent communal repairs to be carried out to all blocks on the Estate. The communal repairs were considered urgent due to health and safety concerns. Therefore, to reduce the risks to residents and manage the costs associated with procuring another contractor to carry out the works, the London Housing Consortium (LHC) advised that the contract with SER Contractor Limited, allowed for other essential works to be incorporated into the existing contract.

The sum of £400,000.00 for the additional kitchens and bathrooms and communal repairs had been assessed by Ridge and Partners – Cost Consultants and considered value for money. The revised contract sum would be a maximum of £1.17million.

More information on the additional works could be found in Section 6.4 - 6.7 of the report.

The additional properties have been priced in accordance with the 2019/20 LHC (London Housing Consortium) Lot 2 rates submitted by SER Contractor Limited and approved by Cabinet on 21 October 2022.

The costs for the communal repairs have been priced using NHF V7 Schedule of Rates.

Alternative options considered

The following options have been considered: -

1.          Do nothing - This option was considered; however, the additional properties were in need of the works and therefore should be included in the programme. Aspects of the communal repairs are a matter of health and safety, therefore these need to be carried out to meet the Council’s obligations as Landlord.

2.              HRS Repairs Team – Commission Haringey’s in-house repairs team to carry out the works. HRS did not have the resources to undertake the works in a timely manner – therefore extending the existing contract is considered the best option for completing the works.

3.           Retender the Works – The option of retendering was considered. However, SER Contractor Limited was commissioned under a direct award with the LHC, and their bid was considered the Most Economical and Advantageous Tender (MEAT). Therefore, retendering was unlikely to provide better value for the works. 

The only viable option was for the project team to incorporate the additional   works into the current programme. This would ensure the project met its objectives to upgrade the kitchens and bathrooms to homes on the Broadwater Farm Estate and carry out essential communal repairs to all blocks on the Estate.

CABINET MEMBER: Cllr Dana Carlin

Signed by Cabinet Member ……………………………… 

Date …13 April 2023……………………….