Declarations of interest made for this item:
None.
RESOLVED
1. Pursuant to the CSO 0.08, it was recommended that the Cabinet Member of Housing & Planning approve the direct award of the contract to Contractor A for structural remediation works at Chettle Court, Cordell House, and Edgecot Grove for £2,943,866, with a 30-week delivery period.
2. It was further recommended that the Cabinet Member for Housing and Planning approved the professional fees of £155,621 which represented 5.29% of the contract sum. And notes the total project cost of £3,009,487.
3. For Cabinet Member for Housing and Planning to note that an estimated total of £851,890.51 that would be recovered from leaseholders as their contribution to the cost of the works.
Reasons for decision
A key objective of the Housing Asset Management Strategy was to ensure
that Haringey’s housing assets were safe and fully compliant with the latest Building Safety Regulations. In addition, the strategy supported the overarching priorities set out in the Corporate Delivery Plan (2024-2028), specifically: ‘Homes for the Future – Everyone has a home that is safe, sustainable, stable and affordable’ and ‘We will work together to drive up the quality of housing for everyone’
Cabinet Member for Housing & Planning approval was sought to directly award a JCT Standard Building Contract with Approximate Quantities 2016, for the delivery of essential structural remediation works at Chettle Court, Cordell House and Edgecot Grove. This contract would be awarded via a direct appointment under Lot 2.2 of the London Construction Programme Major Works Framework. The procurement process was fully overseen and managed by Haringey Council’s Strategic Procurement team to ensure compliance and transparency. The contract would run for a duration of 30 weeks.
The three blocks included in the project have been identified as requiring structural remediation works following structural surveys, asbestos surveys and a fire safety survey. The project would enable works to commence and contribute to properties being maintained to a safe and compliant standard.
In 2022 the works were tendered and, following evaluation, awarded by a member decision dated 18 March 2022, to Cosmur Construction (London) Limited. However, following the contract award but before commencement on site the contractor began experiencing financial difficulties and in May 2023 a Company Voluntary Arrangement (CVA) was approved. Cosmur’s CVA was then terminated in September 2024, and they formally entered into liquidation. The works were then retendered in 2024.
The Tenderers were asked to provide social value submission, which accounted for 10% of the total Tender score. The London Borough of Haringey was dedicated to a performance and evidence-based approach to Social Value.
Using the National TOMs (Themes, Outcomes, and Measures) System developed by the Social Value Portal, bidders were required to propose credible targets for the following performance areas, which would be monitored:
Employment: Direct FT employees hired for duration of contract.
Employment: Direct FT employees from a NEET background hired for the duration of the contract.
Employment: Work experience placements.
Local Businesses: Expert advice to VCSE and MSE. Page 10
Local Businesses: into work for local jobseekers.
Local Businesses: Local spend targeted areas.
Employment: Percentage of staff paid London living wage.
Supply Chain: Percentage of supply chain paid London living wage.
Training: Access to accredited short course portal
Local education: School engagement and curriculum support activities.
Volunteering: 32 hours of volunteer time to support local initiatives.
Training: Resources to support VCSE.
Environment: Carbon offsetting donation.
Community: Donations to community projects.
Health: Donation to health interventions.
Training: Equality, diversity and inclusion training for staff.
Health: Staff provided access to health and wellbeing programmes.
Health: Access to accredited training portal
The value of the Social Value commitment was detailed in Appendix A – Exempt Report. Following evaluation of bids bidder A was the preferred bidder. The S20 notice issued to leaseholders was however discovered to be incorrect, so an award could not proceed.
Bidder A was however a top-ranking contractor on Lot 2.2 on the LCP framework, a Qualifying Long-Term Agreement covering the works involved. Officers therefore propose a direct award, subject to appropriate S20 consultation to bidder A. The correct S20 notices have now been served (see Leasehold Implications below).
Alternative options considered
An alternative option would be to advertise the contract through the London Construction Programme Major Works framework. However, as the contract had already been competitively tendered, and the successful contractor is also the top ranked provider under Lot 2.2 of the framework a decision was made to proceed with a direct award to this contractor. This approach was endorsed by Haringey Council’s Strategic Procurement team, which considered factors such as the efficiency of accessing pre-approved contractors and the added value of engaging a company with a strong local presence and commitment of resources within the borough.
The option of not proceeding with the proposed work was considered. However, this would prevent the Council from fulfilling a key priority of the Housing Asset Management Strategy 2023-28 – namely ensuring that existing council owned properties are maintained to a safe and compliant standard.