Agenda item

This report sought the Cabinet Member for Housing and Planning’s approval for awarding a contract to Contractor ‘L’ to carry out internal modernisation works on approximately 300 dwellings across the borough, subject to validation surveys. Additional addresses were expected to be added in the contract’s second year. The agreement was structured as a two-year Measured Term Contract (MTC) with a maximum value of £4.8 million.

The contract had initially been awarded to Contractor ‘D’ and received Cabinet Member Signing on 25 July 2024. However, Contractor ‘D’ issued a Termination of Contract notice on 10 March 2025, in accordance with Contract Clause 7.1, with the termination effective from 9 June 2025. As a result, the report proposed awarding the contract to the second-placed bidder, Contractor ‘L’, to maintain continuity of the modernisation programme and prevent further delays.

In addition, the report requested the Cabinet Member’s approval for issuing a Letter of Intent to the approved contractor, for an amount up to £480,000—representing 10% of the contract value. This would allow the contractor to secure their supply chain and support timely mobilisation of the programme.

2.1 Pursuant to the council’s contract Standing Order (CSO) 2.01. c and in

accordance with Statement of Principles CSO 0.08., for the Cabinet Member

for Housing and Planning 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

will 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.

2.2 For Cabinet Member for Housing and Planning to approve the

issue of a letter of intent for approval for the issue of a letter of intent to the

approved contractor. This will be for an amount up to £480,000 which

represents 10% of the contract sum.

2.3 For Cabinet Member for Housing and Planning to approve the professional

fees of £443,302 that represents 9.24% of the contract sum.

2.4 For Cabinet Member Housing and Planning to note and approve the total

project costs set out in the exempt part of the report.

Reasons for decision

3.1 One of the key objectives of the Housing Asset Management Strategy is 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 is key in helping the Council maintain a principal

strategy, by providing modern facilities with the modernisation of kitchens

and bathrooms for our residents.

3.2 Cabinet Member approval is required to award a Measured Term Contract

(MTC) for internal modernisation works to circa 300 dwellings boroughwide

over a period of two years, with further addresses being added in the second

year of the contract. The contract will enable essential internal works such

as the renewal of kitchens, bathrooms and associated works to progress.

This is 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 will be carried out over two years with an

option to extend for one further year.

3.3 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.

3.4 Based on the tender evaluation the original recommendation was that the

tender was awarded to Contractor ‘D’. Due to the termination of the contract

by the first placed bidder, the recommendation of this report is that the

contract is awarded to the second placed bidder Contractor ‘L’. The details of

the tender evaluation are outlined in appendix A, the exempt part of this

report.

3.5 Properties within this scheme will include homes that have been identified as requiring modernisation of facilities due to old age, inadequate space or

layout and, are subject to a detailed validation survey. The project will 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

4.1 An alternative option would be to re-tender this project on the DPS framework. However, this may result in a less favourable financial outcome for the Council and further delays to the completion of Decent Homes work.

4.2 The option of not undertaking this 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.