Purpose

To consider the existing
Shellen Fire Door contract expenditure and agree future
provision.

Content

Decision:

1.   Note the
overspend of £1.6m against the approved original contract
estimate of £2.5m.

2.   Note an additional committed spend of
£0.8m within the original contract, which will take the total
spend on the contract to £4.9m.

3.   Note the budget allocation was £3.6m
and therefore an overspend on the existing fire door programme
budget of £0.5m has occurred.

4.   Subject to full Council approving the
additional budget of £2.4m to approve the award of a new
contract to Shellen through the Pretium
Framework agreement delivered through Hyde in order to complete the
remaining programme of fire door installation.  This will cover the £1.6m remaining
programme and the £0.8m works committed under the old
contract but not yet complete.

5.   Note the intention of the Strategic Director
for Housing, Communities & Environment to agree to provide
doors, at the Council’s expense, to the 50 leasehold
properties in the Council’s four high rise blocks, with an
estimated cost of £125,000 in line with para 3.6 below;
and

6.   That the
Executiverecommend that full Council (meeting on 29 July 2025)
resolve to:

(i)   Note the
overspend of £0.5m against the approved budget and authorise
the Chief Financial Officer to make any necessary changes to the
HRA capital programme budget; and

(ii)  Approve a capital budget of £2.4m to
complete the fire door programme over the next two
years.
Reason(s):

1.      
Failure to
complete the installation of fire doors will leave the residents
and Council potentially at risk. The doors and frames being
replaced are certified fire doors which will protect residents in
the event of a fire. The current doors are not fire certified and
cannot be confirmed as compliant with current fire regulations.
Appendix 1 sets out the duties and potential breaches the Council
as the accountable body, could face if the doors are not
replaced.

2.      
A direct
award to Shellen would prevent further
delays in completing the programme. Completing the door programme
with a single provider will allow standardisation of doors, which
will provide continuity of service and doors across the housing
portfolio.

 

3.      
In
addition, the recommendation to direct award would provide value
for money. The contractor priced the original tender in early 2022
and prices have increased by 16% through annual inflation and
demand. This would equate to £256k saving on the £1.6m
remainder of the programme vs a new contract. Shellen have confirmed if awarded the direct
contract for the remainder of the door programme they will stand by
the original pricing.

 

4.      
Pretium
have confirmed a direct award can be made to Shellen through the Pretium framework managed by
Hyde.  The Procurement team have also
confirmed they approve this route.

 

5.      
Members
are asked to note the overspend of the approved budget and that
this, and the contractual overspend, will be referred to the Audit
& Risk Committee for their consideration.

 

6.      
The
provision of doors on leasehold properties in high rise buildings
will provide assurance that all doors are compliant, to protect the
integrity of the building, safety of all residents and to prevent
further delays in installation.  Under
the lease agreement the individual front doors form part of the
leaseholders’ property and the Council has no right to
require the installation of fire doors. 
The installation of fire doors on all the properties within the
high-rise buildings provides an additional protection to the
Council’s property and all tenants in accordance with health
and safety requirements for high-rise buildings.  In recognition of these risks, it is considered
that the Council bearing these costs amounts to best value and is a
pragmatic approach.
Other options considered and rejected by the
Executive:
Options 1, 2, 3, and 5.
Details of any conflict of interest declared by the Leader or
lead councillors and any dispensation granted:
None.