Content

RESOLVED:
 
1. 
To approve the proposed procurement strategy to procure
capital work contracts for planned capital works via a
mini-competition off an external framework, Fusion 21 (Lot 1
– Refurbishment, Construction, New Build & Modular
Buildings framework or Lot 9 - Building Improvements framework),
and appoint up to 4 contractors for the contract term as set out
below in Table 1.
2. 
Delegate the sign-off of the contract award for the
successful contractors' call-off from the Framework to the Group
Director of Climate Homes and Economy.
3. 
Delegate the subsequent approval for the individual
works packages ‘Commencement Agreements’ to the Chair
of the Housing Investment Board.
4. 
Note that the contract award report for these works
will be submitted to the Cabinet Procurement and Insourcing
Committee (CPIC).

 
Table 1: Framework
contracts duration and estimate value
 
 

Contract
Duration

Preferred
Contractor

Works type

Estimated Value

4 Year
(2 years with an
option to extend for up to two 12 months periods)

Up to 4 main
contractors

Planned Internal and
External Works

£45m/ annum

 
 
Reasons For Decision
 
1. 
The reasons for proposing this capital work procurement option are
set out to include consideration of:
· 
The need for the Council to fulfil its legal obligations as a
landlord for the maintenance of its homes and estates;
· 
The opportunity for capital investment works to contribute to
broader Council ambitions of creating a fairer, safer and more
sustainable Hackney;
· 
The ambition is to ensure our homes and estates are places
residents are proud of.
 
2. 
The key deliverables for this procurement are:
 
· 
Procuring construction services to ensure the Council can invest in
homes to fulfil its legal obligations as a landlord;
· 
Procuring these contracts in line with the provisions of the new
Housing Asset Management Strategy 2019-2027;
· 
Provision of cost-efficient, quality-driven related works across
the entire housing stock, which are focussed on the greatest
investment need, and meet all relevant technical standards;
· 
Appointing contractors who are suitably flexible in their scope to
respond effectively to resident consultation suggestions for works
to homes and estates;
· 
Maximising the indirect social value from these contracts through
local employment, community investment and resident satisfaction
with the quality of their homes and local area;
· 
Ensuring that capital works can support the Council’s broader
sustainability objectives, such as the air quality action plan, as
well as improving the energy efficiency of homes to reduce fuel
poverty;
· 
Ensuring compliance with the Council's Standing Orders, Regulatory
Procedures, and the Council’s Corporate Policy.
 
 
Alternatives
Considered and Rejected
 
Option 1 - Consider moving to
a Long-term Capital Work Partnering Contracts
 
1. 
Contract 1 ended in August 2019; the lockdown and limited internal
resources contributed to the delay in re-procuring the new capital
work framework contracts.
2. 
The team reviewed procurement time for an Open or Restricted
procurement exercise. This option would take over 12 - 18 months to
achieve, whereas the external framework route could be completed in
4 to 6 months. At this point in time, the framework route is
preferred because of the urgent need to mobilise new contractual
arrangements.
3. 
The Council must continue the capital investment programme to
prevent delays in major repairs and ensure that essential safety
projects are carried out promptly. Delays in capital projects could
also lead to extra strain on repair budgets. Certain capital
projects are being carried out using external framework contracts,
mostly with no recharge for leaseholders. Therefore, not proceeding
with the proposed Planned Capital Works - Term Contracts for
Property and Asset Management would significantly reduce capital
investment over the next two years.
4. 
While this option may, in the long term, provide a better route to
delivering our capital work programmes, it was rejected at this
point due to the length of time it would take to get contractors on
the ground and the risks associated with the need to deliver
much-needed capital improvement work and essential fire safety
work.
 
Option 2 –  Procure a Stand Alone Contract for each
Project
 
5. 
The option of carrying out individual procurement exercises for
each project was rejected as this would involve significant work in
carrying out public procurement exercises, which require additional
staff time. This option involves an individual tender process to
let any capital work. Furthermore, this would include the two-stage
leasehold consultation, where work is subject to recharge, which
means extended contract mobilisation onsite.
6. 
Generally, this option requires more resources than the preferred
option to use an external framework and would take much longer to
procure resulting in extended wait time for tenants for much needed
capital improvement work .
7. 
For the reasons above, this option was rejected as the main course
of action, though the Council may elect to pursue it if conditions
arise.
 
Option 3 – Insourcing
the Works to the DLO
 
8. 
The option of in-sourcing the planned capital works is not viable.
The scale of the work and risks associated with it makes it neither
desirable nor possible to restructure the DLO in time to carry out
this work. This option was rejected.