Content

Salford City Council – Record of
Decision
 
I Paul Dennett, City
Mayor, in exercise of the powers contained within the Council
Constitution do hereby:
 
·     
approve the contract  to
enable  the building of 18 SHAP units
and 7 affordable homes at Bridgewater and
Tully Street, as detailed in the table below:
 

Detail required

Answers

Title/Description of Contracted
Service/Supply/Project

Construction of 18 Move on units and 7 affordable
homes.

Name of Successful
Contractor

              
PLP Construction Ltd.

Supplier Registration Number

(to be supplied by Corporate
Procurement)

                           
03244506

Type of organisation

(to be supplied by Corporate
Procurement)

Private Limited Company

Status of Organisation

(to be supplied by Corporate
Procurement)

SME

Contract Value (£)

£5,052,132

Contract Duration

16 months

Contract Start Date

31/03/2025

Contract End Date

29/05/2026

Optional Extension Period 1

months

Optional Extension Period 2

months

Who will approve each Extension
Period?

Procurement Board (extension >
£150k)

Contact Officer (Name &
number)

       
KONRAD MAGDINSKI 793 2197

Lead Service Group

Place

How the contract was procured?

(to be supplied by
procurement)

ICN Framework

Framework Details (where
applicable)

(procurement body, framework reference
& title, start/ end date

Innovation Chain
North (ICN) is a framework for construction and associated
professional services procured under the Public Contracts
Regulations 2015 and is OJEU compliant. It has been designed to
support the delivery of new homes and associated social
infrastructure across the North of England. The framework includes
lots for contractors, associated professional services as well as a
Dynamic Purchasing System (DPS) for the supply of Modular
Homes.
 

Funding Source

Grant

Ethical Contractor (EC): Mayor’s
Employment Charter

?

EC: Committed to sign Charter

?
 

EC: Accredited Living Wage
Employer

?

 
The purpose of this
report is award the contract for Single Homelessness Accommodation
Programme (SHAP) accommodation and Affordable Homes.
 
The
scheme has significant benefits including:

·     
Reducing the use of Temporary Accommodation (TA)
without adequate support, particularly when it reduces the need to
place homeless young people out of the city and/or in Bed and
Breakfast style accommodation. Placing vulnerable residents in
accommodation that will be available to them for up to 2 years is
shown to have a positive impact on health, wellbeing and a
person’s ability to engage in education or
employment.

·     
SHAP provision will provide valuable “stepping
stone” accommodation with high levels of support for people
who have experienced multiple disadvantage and who would be at risk
of tenancy failure in general needs accommodation. This prevents
homelessness of the future at a time when homelessness pressures
are financially debilitating for local authorities.

·     
SHAP will provide valuable, affordable
“stepping stone” accommodation for those who are
seeking to address issues within their life such as parental
estrangement, mental health challenges, substance misuse, domestic
abuse.

·     
SHAP accommodation acts as a “trial
tenancy”. The length of stay is expected to be up to 2 years
which allows the occupant to prove their tenancy readiness to other
landlords. Many may be bypassed on the register without this
positive tenancy evidence, sometimes leaving them in costly
temporary accommodation for significant periods of time.

·     
Low cost supported accommodation is rare. It allows
people to access employment without the burden of high cost
supported accommodation that is the norm within other supported
exempt accommodation schemes. SHAP currently ensures that the cost
to deliver is met through central government grants rather than
seeing the rent levels charged to the occupant being very high to
cover it.

·     
SHAP units have been designed to be day to day cost
effective for the occupant - leading to financial viability for the
occupant and increasing the sustainability of the
tenancy.

·     
Loss of housing benefit subsidy in temporary
accommodation is, on a conservative modelling, in excess of
£13.27 per night for single person accommodation. Based on 18
units this loss, should the SHAP occupants be housed elsewhere, be
£87,183 per annum. Although options to deliver supported
accommodation are available in a way that minimises subsidy loss,
the high rents involved will generally poverty trap individuals and
often necessitate a reliance on welfare benefit payments. This
restricts the person’s ability to improve their lives through
employment. The reduced rents of the SHAP scheme ensures that
people can access education or employment without there being a
negative impact on the affordability of their home.
 
Assessment of Risk: High
The
SHAP funding requires the council to agree a construction contract
and confirm a start on site before the end of March 2025 to meet
grant funding deadlines. The council will need to enter contracts
to enable this to happen.
 
Future construction risks will be monitored, and mitigated,
through the monthly design team meetings.
 
The source of funding
is: Homes England SHAP and
Affordable Housing Programme funding and Capital Programme –
Invest to Save and USB capital grant.
 
Legal Advice obtained: The Shared Legal Service –
Tony Hatton.
 
Financial Advice
obtained: Grace Rogerson
– Senior Accountant.
 
Procurement Advice obtained:
Daniel Cunliffe – Category Manager.
 
Contact Officer: Konrad Magdzinski
Telephone number: 0161 793 2197
 
·     
This matter is not subject to consideration by
another Lead Member.
 
·     
The appropriate Scrutiny Committee to call-in the
decision is the Growth and Prosperity Scrutiny Panel.
 
 

Signed:   Paul Dennett
       Dated:
  10 March 2025.
           
    City Mayor
 

FOR DEMOCRATIC SERVICES USE
ONLY:
 

This decision was published on 11
March 2025
This decision will come in force
at 4pm on 18 March 2025 unless
it is called-in in accordance with the Decision Making Process
Rules.