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.