Councillor Sarah Williams, Cabinet Member for Housing and Planning (Deputy Leader), approved the extension of current gas maintenance contracts with Purdy Contracts Limited and Sureserve Compliance South Ltd. This decision was made to ensure the continued servicing and maintenance of domestic and commercial heating systems, adhering to statutory health and safety obligations.

Extension of Current Gas Maintenance Contracts

Councillor Sarah Williams approved a six-month extension to the existing gas servicing contracts with Purdy Contracts Limited and Sureserve Compliance South Ltd. The extension, effective from 1 October 2025 to 31 March 2026, will incur an additional cost of £1,305,000 for Purdy Contracts Limited, bringing their total contract value to £18,759,908.90. Sureserve Compliance South Ltd will see an additional cost of £1,220,000, with their total contract value remaining at £11,800,000.

This decision was retaken following clarification of contractor names and additional information regarding contract values. The primary reasons for the extension are to ensure the continuity of servicing and maintenance for domestic and commercial heating systems, minimising disruption to residents and upholding the Council's statutory duty under Regulation 36 of the Gas Safe Regulations 1998 to keep residents safe.

The Council considered several alternative options. Doing nothing was not viable due to statutory health and safety obligations. Undertaking a full procurement exercise to re-tender the contract was underway but would not be completed before the current contracts expired, leading to a gap in service provision. An in-house delivery option was investigated but deemed not viable due to a lack of necessary skill sets within the housing repair service and the significant time, planning, and investment required to establish such a team in a competitive market.

The extension is considered the most economically advantageous route, as a new interim provider would likely inflate contract sums, which would be challenging in the current financial climate. The extension also allows sufficient time for the procurement of new, long-term domestic and commercial heating contracts, aligning their mobilisation with the new financial year starting 1 April 2026. This also facilitates easier budgeting and financial forecasting. The report notes that further extensions to the Purdy contract may be required to accommodate the procurement of a separate communal heating contract.

The new contracts are more complex due to the need for three separate agreements, including a new commercial/communal heating contract that addresses newer technologies like renewable energy sources (ground and air source heat pumps), district energy networks, and complex heating systems. This contract must also align with new Heat Network Regulations coming into force in 2025, which will be heavily regulated under a Heat Network Technical Assurance Scheme (HNTAS) to ensure fairer pricing, clearer billing, and improved service standards for residents.

The funding for this six-month extension will be drawn from the 2025-2026 Capital and Revenue budgets already allocated for gas servicing, repairs, and replacements. This variation will not impact current budgets or the Medium-Term Financial Strategy. The works contribute to the Council's Corporate Delivery Plan 2024-2026, specifically the 'Homes for the Future' theme, aiming to improve the quality of social housing and landlord services. There is no anticipated impact on Carbon & Climate Change from this contract extension.

The decision aligns with Contract Standing Order 18.03.3 and CSO 2.01(d), which permit variations to contracts under specific circumstances, including unforeseen events and where the variation does not alter the overall nature of the contract and the price increase does not exceed 50% of the original contract value, as per Regulation 72(1)(b) of the Public Contracts Regulations 2015. The Director of Legal and Governance confirmed no legal reasons prevent the Cabinet Member from approving the recommendation. The Council's commitment to equality is also noted, with the workforce strategy aiming to advance equality, diversity, and inclusion.

The original decision to award these contracts was made on 15 September 2025. ¹