Decision Maker: Cabinet Procurement and Insourcing Committee

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: October 6, 2025

Purpose: Seeking approval of the procurement of communal works and repairs & maintenance provision.

Content: RESOLVED:   1. To approve the procurement of communal works and repairs & maintenance provision as follows: a)  Two Contractors for Lot 1, Playground - Repairs, Hard Landscaping, Boundary Fencing (Metal Works), Drainage and Water Mains of a combined value of approximately £2.17m per year (Excl VAT),   and a combined value of approximately £17.35m (Excl VAT) over the maximum contract term. b)  One Contractor for Lot 2, Playgrounds Inspection of a value of approximately £61k per year and, a value of approximately £0.47m (Excl VAT) over the maximum contract term.   Reasons For Decision     Options Appraisal  The recommendation is to undertake a competitive flexible procedure under the Procurement Act 2023 to procure specialist contractors for Communal works under Lot 1 and Lot 2. A long term contract arrangement to undertake the Communal works brought about by expiration of the previous contract. There has been a rise in demand for communal repairs & maintenance works, the procurement of this contract will support the in-house service to deliver this provision and provide continuity for delivery of works in the service area.   This procurement aims to continue the delivery of works by specialist contractors, with support provided to the DLO in completing the tasks. These works are completed by both the in-house repairs team and external contractors. The DLO undertakes some of the less specialised works. This mixed economy of repairs resource has worked well achieving good value, maintaining a competitive tension, a flexible resource to meet varying workloads and occasional need for more specialist expertise not included in the in-house capacity.   The quality of repair services is crucial to the operations of council services and our resident’s lived experience and the improvement of the key performance indicators. Therefore, the council's commercial team wishes to continue working with a specialist contractor to support the works and the DLO.   Due to significant financial constraints and a lack of infrastructure for future expansion, there are no plans to further increase the DLO's scope or operational numbers. Although a previous expansion aimed to handle legal disrepair and voids, the DLO also had to address mould, damp, fire and safety regulations, and increased reactive repairs to support capital work. Also, the LBH needs time to stabilise and regain financial health before any in-house hiring commitments are made. Restructuring contractors is a more flexible option at this time and will be benchmarked against Building Maintenance existing contractors to ensure best value for money.   Alternative Options Considered and Rejected    Option 2 – Continuity   The current arrangement was the use of a single main contractor who subcontracts the works. The use of the principal contractor may result in increased costs due to profits and overheads, repassing of costs and added communication layers. This option is not viable for the re-procurement as this will not enable small and medium sized enterprises to bid for the contract due to financial compliance with the contract value. The breaking up of the contract to lot sizes will also mitigate risk to the Council by allowing more than 1 contractor to support the service delivery of this contract. Lastly, the splitting of the contract into lots will expand the pool of potential bidders, which may provide more competitive pricing and innovative proposals.    Option 3 - Framework Route   This option was considered but rejected as all works carried out under the contract will be communal works, which are subject to statutory consultation requirements under Section 20 of the Landlord and Tenant Act 1985. When communal works are undertaken, leaseholders must be formally consulted through the Section 20 consultation process, which involves specific notice periods and procedural requirements that would significantly impact project timescales.   Furthermore, the Procurement team has advised that where Section 20 leaseholder consultation procedures apply, the established framework route cannot be utilised as the procurement method for accessing the market. Resulting in potential revenue loss for the Council. This is due to the specific legal requirements governing leaseholder consultations, which mandate alternative procurement processes that ensure transparency and compliance with statutory obligations.