Agenda item

In line with Contract Standing Order 0.08, the Cabinet Member for Housing and Planning (Deputy Leader) approved the award of a £1,514,644 contract to Contractor A for external major works on the Turner Avenue Estate. This ensured all homes received Decent Homes Standard improvements consistent with borough-wide programmes.

Following the termination of the original contractor due to non-performance, a waiver of CSOs 12.01 and 12.02 was also approved to allow a direct award to Contractor A. This enabled completion of partially started works and full delivery across the estate.

The Cabinet Member acknowledged industry-wide increases in construction and labour costs since the original tender, agreeing that these additional costs would not be passed on to leaseholders. Professional fees of £81,456 (5.377% of the contract sum) were approved, bringing the total project cost to £1,596,100.

The Cabinet Member RESOLVED:

2.1 The Cabinet Member for Housing and Planning (Deputy Leader) approved the award of contract to Contractor A in the sum of £1,514,644. Contractor details identified in Appendix A - Exempt Report for the installation of flat roof covering, windows, curtain walling to stairwells, external brickwork and concrete repairs, communal internal and external decorations.

2.2 The Cabinet Member for Housing and planning (Deputy Leader) approved the total professional fees of £81,456 which represents 5.377% of the contract sum. And notes the total project cost of £1,596,100

2.3 The Cabinet Member, for Housing and Planning (Deputy Leader) in line with CSO 0.08 and CSO 16.04 approved the issue of a Letter of Intent in the sum of £151,464.00. The value of the Letter of Intent represents 10% of the contract sum.

2.4 The Cabinet Member for Housing and Planning (Deputy Leader) approved the issue of a waiver by waiving off CSO 12.03 to direct award of contract to the preferred contractor. The basis for seeking a direct award is that contractor A is not on an applicable framework through which a direct award can be made. It will overcome the logistics of having two contractors on the same site and enable incomplete and outstanding works to be delivered.

2.5 The Cabinet Member for Housing and Planning (Deputy Leader) approved that any increased costs associated with completing the outstanding works under this tender will not be passed on to leaseholders. The original contract pricing will remain in effect, except where the scope of work in the new contract is reduced.

Reasons for decision

3.1 Haringey Council requires the Cabinet Member for Housing and Planning (Deputy Leader) approval to award the contract for incomplete and outstanding works for flat roof covering, windows, external brickwork and concrete repairs, curtain walling and communal internal and external decorations to the Turner Avenue Estate. This will ensure all properties on the estate are brought up to Decent Homes Standard

3.2 The original contract was awarded under the JCT Intermediate Building Contract with Contractor’s Design 2016. Following the termination of that contract due to non-performance, a direct award is now proposed to Contractor A to ensure continuity and timely completion of the external works across the estate. Although Contractor A is not listed on a framework that permits direct call-off, a direct award is considered the most practical and cost-effective approach in this instance. Contractor A is already mobilised on-site, delivering the Brunel Walk dwellings, with established site setup and logistical arrangements in place. This presents a significant opportunity to reduce additional mobilisation costs and avoid the inefficiencies and potential disruption associated with introducing a second contractor to the estate.

3.3 The proposed award via a waiver will benefit both the Council and the project by delivering cost efficiencies through the consolidation of site setup and mobilisation under a single contractor. This approach will enable the seamless sequencing of works alongside those currently being delivered by the Housing Delivery team. Contractor A, who is already appointed to deliver the Brunel Walk new housing development and associated communal garden spaces— including play and amenity features such as seating areas—within the Turner Avenue estate, is well positioned to undertake the additional works. The Council’s Procurement team has reviewed and supports this approach, recognising the cost savings and logistical advantages it offers within the constraints of the site.

3.4 Haringey Council has a statutory duty under the Housing Acts to maintain the structural integrity and overall condition of its housing stock. Failure to carry out the proposed works would result in part of the Turner Avenue estate falling below the Decent Homes Standard.

Alternative options considered

4.1 The option of not proceeding with the works was considered but ultimately rejected. As the landlord, Haringey Council has a statutory responsibility to ensure that the property complies with Decent Homes standards and current Health and Safety regulations. A competitive tendering process was deemed unsuitable for this project due to the associated time and cost implications, as well as the potential disruption that introducing a new contractor could cause to ongoing works. Issuing a direct award to Contractor A is considered both cost[1]effective and operationally efficient. Contractor A is already appointed to deliver new Council housing on an adjacent development, which includes landscaping works that will integrate with the Turner Avenue estate, thereby minimising disruption to residents and ensuring continuity in delivery.