Decision

The Director of
Regeneration and Place has agreed to approve the award of a
contract to Jones Lang LaSalle Limited via the Crown Commercial
Services Framework for Estate Management Services, Lot 1 Total
Estate Management (Ref - RM6168 with a contract value
of  £361,973 for a term of 12
months.

Reasons for the decision

In May 2023 the
Council acquired the Grange and Pyramids Shopping Centres as part
of the Council’s wider regeneration aspirations.  As part of the purchase the Council commissioned
the management company, Jones Lang LaSalle Limited (JLL), which was
used by the previous owner.  This was to
ensure continuation of service and also enabled the Council to meet
the short timeframe for purchase.
 
In September 2023 the
Council took possession of the Mallory and Irvine office blocks and
again, to ensure an expeditious delivery, commissioned JLL to
provide the property and facilities management services.
 
The contracts for
these services expired on 3rd November 2024.  Officers are working on a competitive procurement
process to provide one contract which would cover the Shopping
Centre, the offices, The Europa Centre and potentially any other
properties the Council may acquire which require property and
facilities management support.  This
will take some time to put in place so it is proposed that a direct
award contract via the Crown Commercial Services (CCS) Framework
for Estate Management Services, Lot 1 Total Estate Management (Ref
- RM6168)is put in place with JLL for a period of 12 months from
4th November 2024 to 3rd November 2025 in order that continued
service can be provided in the interim period.
 
JLL have provided a
fee proposal as follows:
 

Mallory and Irvine offices buildings
Fees to include:
· 
Property Management
· 
Rent collection and Non Service Charge
· 
Facilities Management,
· 
SRM, H&S & environmental Management Platform
· 
Third party supply chain procurement and management fee.
 
This is at a total
cost of £123,800 although a large proportion of this is
recoverable from the tenants through the service charge
 

Grange and Pyramids Shopping Centres
Fees to include:
· 
Property Management
· 
Rent collection and Non Service Charge
· 
Car parking
· 
Facilities Management,
· 
SRM, H&S & environmental Management Platform
· 
Third party supply chain procurement and management fee.
 
This is at a total
cost of £238,173 although a large proportion of this is
recoverable from the tenants through the service charge.
 

Alternative options considered

As the
existing contract has expired, the Council needs to continue to
work with JLL until such time as a new contract can be
procured.  A shorter contract could be
considered, but the timescales put forward seem
realistic.