Agenda item

The report requested Cabinet Member approval for the award of a contract to Contractor ‘D’ to carry out internal modernisation works to circa 300 dwellings throughout the borough subject to validation surveys, with further addresses being added in the second year of the contract. This was a two-year Measured Term Contract (MTC) which would be for the maximum sum of £4.8m.

The report requested the Cabinet Member for Housing and Planning (Deputy Leader) approval for the issue of a letter of intent to the preferred contractor. This would be for an amount up to £480,000 which represents 10% of the contract sum.

It was further recommended that the Cabinet Member approves the professional fees of £443,302 which represents 9.23545% of the contract sum, for the design and contract administration.

The Cabinet Member RESOLVED

1. Pursuant to the Council’s contract Standing Order (CSO) 16.02, to approve the award of a Measured Term Contract to the preferred contractor identified in exempt Appendix A for the renewal of kitchens, bathrooms and associated works to borough wide dwellings. This would be for the maximum sum of £4.8m for the period of 2 years, with the option of a time and value extension of one year.
2. To approve the issue of a letter of intent for an amount up to £480,000 that represents 10% of the contract sum.
3. To approve the professional fees of £443,302 that represents 9.23545% of the contract sum.
4. To note the total project costs set out in the exempt part of the report.

Reasons for decision

One of the key objectives of the Housing Asset Management Strategy was to bring all of the Council’s Housing stock up to the Decent Homes Standard by 2028. The Decent Homes Standard is a minimum standard regulatory requirement for all social housing landlords and was established to ‘bring health benefits to tenants and reduce health inequalities’ (Decent Homes Guidance 2006). This work was key in helping the Council maintain a principal strategy, by providing modern facilities with the modernisation of kitchens and bathrooms for our residents.

Cabinet Member approval was required to award a Measured Term Contract (MTC) for internal modernisation works to circa 300 dwellings borough wide over a period of two years, with further addresses being added in the second year of the contract. The contract would enable essential internal works such as the renewal of kitchens, bathrooms and associated works to progress. This was following a tendering exercise via the Adam Procure Dynamic Purchasing System (DPS) under the Minor Work Category. The procurement process was fully overseen and managed by Haringey Council’s Procurement team. The contract would be carried out over two years with an option to extend for one further year.

The evaluation process was carried out in accordance with the Invitation to Tender requirements and was based on 60% price and 30% quality and 10% social value.

Based on the tender evaluation it was recommended that the tender was awarded to Contractor ‘D’. The details of the tender evaluation are outlined in appendix A, the exempt part of the report.

Properties within the scheme would include homes that had been identified as requiring modernisation of facilities due to old age, inadequate space or layout and, were subject to a detailed validation survey. The project would enable works to commence and contribute to properties being brought up to the Decent Homes Standard whilst also alleviating the pressure on repairs maintenance and servicing costs.

Alternative options considered

An alternative option would be the use on the London Construction Programme Major Works framework. However, Haringey Council’s Strategic Procurement advised that the DPS Framework would offer greater competition and would be the optimum route to market. This considered aspects such as the speed of access to pre-approved contractors and focus on companies that concentrate their resources in the local area.

The option of not undertaking the work was also considered. However, it would result in Haringey not achieving the agreed objectives within the Asset Management Strategy 2023-28 of achieving 100% homes meeting the Decent Homes Standard by 2028. It would also result in increased repairs costs and potential resident dissatisfaction, due to under investment in the homes of our residents.