Agenda item

This report sought approval from the Cabinet Member for a second variation of the two existing contract values, for the current provision of Electrical Inspection

Reports programme to the Council, by two contractors, for the remaining contract term, to April 2024, subject to Cabinet Approval to virement of capital budget, as set out in section 6.16 of this report.

The Officer reiterated to the Cabinet Member that there would be internal quality assurance. Sample inspections would allow for work to be reviewed, thus would ensure work would be done to the required standard.

RESOLVED

The Cabinet Member for Housing Services, Private Renters, and Planning is asked:

1.    To approve a second variation of the two existing contracts with Contractor N and Contractor A, for the provision of Electrical Inspection Services to the Council by increasing the maximum contract values by an additional £1,474,825.00 for  Contractor N and £1,413,050.00 for Contractor A (£2,887,875.00 in total) taking the total maximum value for both contracts, to £11,551,500 over the maximum contracts period of 18 months (of which 8 months currently remain), subject to budget virement approval by Cabinet.

Reasons for decision

·         In order to deliver the Electrical Inspection programmes, which includes completing urgent and high-risk actions and upgrading of smoke and heat alarms within properties, Haringey Council requires the support of specialist electrical contractors.

·         The existing arrangements for this work have been in place since October 2022and were procured as a direct award under the South East Consortium’s (SEC) Electrical Renewal’s Framework. Working with our Strategic Procurement business partners and the SEC, we were able to identify that Contractors N and A, were able to take on and support our service requirements.

·         The contractors are and have since been successfully delivering the programmes of inspections and associated works, critical to the safety of residents. This service is currently relied upon whilst we recruit to existing vacancies within our in-house electrical team, who will, in the longer term deliver the core elements of this work. However, due to current priorities around damp and mould, voids and focus on improving the repairs service as well as market pressures and a shortage of suitably competent persons this is taking longer than originally anticipated and we will need to implement a further contract prior to fully in-souring the service in future.

·         Even when the team is fully resourced, there will always be a need to rely upon additional contracting services to support the in-house team through peaks in workload and gaps in resources. The procurement of a longer-term support arrangement is the subject of a separate and new procurement project will be progressed, to take over this provision once this further extension is exhausted.

·         As we continue delivering electrical safety programmes, the variation of these contracts offers continuity and the necessary resources to deliver on this key commitment to the Regulator and essential life-safety programmes, whilst we procure a longer-term solution.

·         The second variation supports the ongoing delivery of the electrical safety inspection and works programmes to comply with the Electrical Safety Regulations and the Fire Safety Act.

·         The existing fire safety budget is insufficient to cover the expenditure of all the work. However, there is provision within the capital budget for Mechanical and Electrical works. Approval for virement of this budget can only be given by Cabinet. The request for this will be made to Cabinet in September 2023 within the Budget Report submitted by Finance.

Alternative options considered.

·         Do nothing. This would mean that the current contract would not be sufficient to complete the programme. It would also mean that we cannot meet our commitment to the Regulator to complete the EICR programme by the December 2023. Furthermore, it would leave the residents subject to living in buildings where there could be electrical safety issues that go unrecorded and unremedied if we do not undertake electrical inspections and improvement works. In addition, the Council would not be compliant with the Electrical Regulations.

·         Undertake all the work in-house. This option is not viable due to the current lack of specialist skills available in the market for Haringey to recruit. However, this is the intention in the longer-term.

·         Procure a new contract. This is in progress but will not be in place in time to deliver the current requirements.