Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: March 10, 2025

Purpose:

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.