Content

 RESOLVED:
 

To
approve the award of Contract 2A for General Building Works - DLO
Support Contractor, to Bidder A for an initial term of two (2)
years  with
the option to extend for one (1) years.

 

To
approve the award of Contract 2B for General Building Works - DLO
Support Contractor, to Bidder B for an initial term of two (2)
years with the option to extend for one (1) years.

 
Reason(s) For
Decision
 

This report
outlines the process that has been followed to identify preferred
contractors for the General Building Contract 2. 

 

The approach
taken is to appoint 4 different contractors; two contractors on
General Building Contract 1 and two contractors on General Building
Contract 2. This award report is for General Building Contract 2
only. This will provide the contingency of having more than one
contractor in the case of one failing. Also, with more than one
contractor servicing the contract, it allowed for increased
competition during the tendering process, therefore ensuring good
value for money in relation to cost, quality of work, delivery and
sustainability.

 

The principle
works which fall under this commission include but are not limited
to:

 

· 
Reactive Repairs

· 
Voids

· 
Legal Disrepair

· 
Electrical works & scaffolding in association with above.
 

The contract
duration is two years, with the option to extend by one year,
totalling three years. The combined contract value per year is
approximately £0.83M, totalling £2.5M over the
3
year duration.

 

This contract is
split into two, Contract 2A and Contract 2B. Contract 2A comprises
approximately £0.5M per year with 60% of the works
allocation. Contract 1B comprises approximately £0.33M per
year with  40% of the works allocation. The
allocation corresponds to a borough wide split between North and
South of Hackney.

 

A separate tender
exercise has been conducted for the general building contractor 1
to undertake works for the Area Surveying Managers.

 

It is proposed
that the Council will enter into a JCT Measured Term Contract 2016
with Hackney Council amendments utilising the National Housing
Federation (NHF) v7.2 Schedule of Rates. Supporting documents will
include the Council requirements, preliminaries 
and specification. This is proposed for Bidder
A and Bidder B.

 

Core requirements
in accordance with the Council's goals in relation to
sustainability and social value have been included in depth within
the quality section of the procurement. This is to support the
Council's target of reaching net zero, ensuring all the bidders
offer the London living wage to all employees and provide
opportunities for individuals within the borough. More information
is available in Section 8.

 
Alternative Options
(Considered and Rejected)
 

Extend Current Arrangements: (Rejected)

Continue with the current arrangement
of using a specialist contractor engaged through other contract
mechanisms such as a Single Tender Award.
 
This would delay repairs due to the
complexity of the arrangements and would result in the
Council’s client team having to coordinate the management of
multiple contractors, increasing administration time and costs.
 
In addition there have
been service issues with these types of arrangements and It will
not resolve the quality of the repair service currently being
experienced by this arrangement.
 

Do
nothing: (Rejected)

Doing nothing will result in the
Council declining those works requiring external contractor
support. This would compromise the Council’s position as a
Public Sector landlord and therefore its duties as defined under
section 96 of the Housing Act 1985. The aim of the Council is to
provide accommodation which the residents are proud of. Doing
nothing will negatively impact the quality of the facilities
throughout homes across the borough.
 
3. 
Insourcing (Rejected)
The DLO is currently not resourced to
deliver the quantum and sophistication of works that would be
allocated to the General Building Contractors - scope of services
and works. Developing the required capacity would take a
considerable amount of time and effort and is not the subject of
this proposal.
 
External contracts are required to
support the in-house service to deliver effective housing repairs.
This is in line with the insourcing strategy already
implemented.
 
This procurement will enable us to
appoint 4 contractors against the two packages; 2 contractors for
the Area Surveyor Managers (already awarded via CPIC) and 2
contractors for the Direct Labour Organisation to ensure that there
is sufficient capacity and capability whilst the in house service
continues to grow. Failure to have the contracts in place would
result in poor services for residents.