This meeting of the Cabinet Procurement and Insourcing Committee was scheduled to include consideration of a contract variation for work on the façades of schools in Hackney, and approval of a procurement strategy for the Colville Heat Network.

Gayhurst Primary School Façade Contract Variation

The Committee was asked to approve a contract variation to increase the budget for repairs to the façade of Gayhurst Primary School by £1,459,067.78. This is in addition to a previously agreed variation of £941,386.00.

The original contract was for £187,375.00 and was awarded to Quinn Heritage Ltd in April 2022 as part of a larger programme of façade repairs to 22 schools in Hackney.

The increase is to cover the cost of replacing the roof of the school, which was found to be in need of replacement after scaffolding was erected to allow the façade repairs to take place.

Once the scaffolding for the facade project was erected, it was clear that an area of the roof had failed. A subsequent report determined that the majority of the tile roof exhibited defects with the roof nails (nail sickness), and that the tile roof needs to be fully replaced.

The report notes that the increased cost of the contract variation is justified because it is the only viable and cost-effective solution.

Colville Heat Network Procurement Strategy

The Committee was asked to agree a procurement strategy for the Colville Heat Network. This network will supply heat to:

• Over 1,300 homes in the Colville and Britannia developments.
• Britannia Leisure Centre
• City of London Academy Shoreditch Park
• Shoreditch Park Primary School

The report notes that the development of a heat network for these sites was a planning condition attached to the original planning applications.

The report sets out the Council’s preferred approach for procuring the network, which is to use a single contractor responsible for the Design, Build, Operation and Maintenance (DBOM) of the network, and to appoint a separate contractor to deliver the Metering and Billing (M&B) services.

The outcome of this exercise has informed the recommendation to contract with a specialist contractor responsible for Design, Build, Operation and Maintenance (DBOM) of the heat network and to also appoint a contractor to deliver the Metering and Billing (M&B) services for the heat network.

The report asks the committee to approve the use of the Negotiated Procedure with prior call for Competition under Regulation 47 of the Utilities Contracts Regulations 2016 for the DBOM contract, and the Competitive Flexible Procurement under the Procurement Act 2023 for the M&B contract.

It also asks for approval to extend an existing contract with the PSDS contractor by £630,000 to allow them to connect Bridport House to the existing Britannia Heat Network before the Colville Heat Network is operational. This work is intended to allow the council to spend grant funding it has received from the Green Heat Network Fund which would otherwise have to be returned.