In a brief meeting, Councillor Sarah Williams, Cabinet Member for Housing and Planning (Deputy Leader), approved a contract for third-party technical audits and support services to ensure regulatory safety inspections and provide support for in-house teams and contractors. The contract, valued at up to £5,000,000 over five years, is subject to a Section 20 consultation¹ with leaseholders.

Third Party Technical Audit & Support Contract Approved

Councillor Sarah Williams approved the award of a contract to Bidder A for the provision of technical audits and quality assurance of regulatory safety inspections, as well as support for in-house teams and contractors working on repairs, maintenance, design, and installation of mechanical and electrical services and safety systems within Haringey's council housing stock. The contract also covers advice, guidance, and expertise on standards and specifications for Haringey's Employer's Requirements for new developments, major works, and corporate buildings where required.

The approval is provisional and subject to the next stage of the Section 20 leasehold consultation process. The Assistant Director for Repairs & Compliance, Scott Kay, is delegated to implement the award upon completion of the Section 20 consultation, provided that all representations are suitably responded to and do not result in significant issues that would cause the award to be withdrawn or significantly amended.

The contract will run for five years, with a break clause allowing Haringey to withdraw due to poor performance or if services can be successfully delivered in-house. It will operate on a call-off basis, with a contract value of up to £5,000,000 plus inflation, starting immediately upon completion of the Section 20 process and any standstill period, using Haringey's standard consultancy agreement. All instructions will be made within available budgets across revenue and capital as appropriate.

The Director of Housing is authorised to provide a letter of intent if required before the formal contract is executed.

Reasons for the decision

The report outlined several reasons for the decision:

• Developments in new technologies require new skill sets.
• The contract will supplement and cover peaks in demand, mitigating the risk of difficulties in recruiting and retaining permanent staff.
• It supports current in-house teams, providing additional expertise and reducing the need for ongoing training.
• The risk of losing key staff with individual expertise and certification is mitigated through external consultants.
• External consultants bring awareness and agility in adopting changes in the regulatory framework and provide training opportunities for staff.
• The contract provides technical assistance, support, and flexibility to in-house managers and technical inspectors.
• It will provide assurance to senior management, the cabinet, internal audit, and regulators that compliance work is independently assessed, validated, and evidenced.

The report also noted that the potential cost of the service is significantly weighted toward capital due to the demanding nature of the work involved in design, specification, and project management.

Alternative options considered

The council considered the following alternative options:

1. Do nothing: This was rejected because it would prevent the council from undertaking significant surveys to determine the condition and forward investment requirements for key building services systems.
2. Extend the current contract: This was not an option as there was no existing contract.
3. Undertake all the work in-house: This option was not currently viable due to the lack of specialist skills available in the market for Haringey to recruit and retain.

Background Information

A compliance health check in December 2022 recommended significant improvements in compliance management and identified key inspection programmes regarding supplies under the Dangerous Substances and Explosive Atmospheres (DSEAR) Regulations 2002². The service will support the Mechanical & Electrical teams, where current in-house technical officers have been under-resourced due to long-term sickness absence.

The service aims to improve data and support the asset management strategy and compliance policies by providing a new facility to undertake condition surveys of key plant and equipment. It will also provide early warning and options appraisal for aging equipment and improve value for money and assurance regarding best value and appropriate investment programmes.

The transfer of responsibility for electrical inspections has also identified the need for additional technical expertise and contract management support.

Following a tender process, supported by Strategic Procurement and Leasehold Management colleagues, two bids were secured for the service provision.

First stage Section 20 consultation was carried out and all representations were appropriately addressed with no significant amendments required. Representatives from the M&E team attended the Residents Voice board on 17 October 2024 to provide a briefing on the procurement of new gas contracts and the Third Party Audit and Support Services contract.

The provision of this service spans both capital and revenue budgets, for which provision has been made. The contract will be managed by the head of M&E and can be terminated with a specified notice period.

Contribution to Corporate Delivery Plan and Carbon & Climate Change

The initiative will help deliver the 'Homes for the future' theme of the Corporate Delivery Plan 2024-2026, aiming to improve the quality of social housing and landlord services. The award will ensure detailed technical assessments are undertaken to improve proactive planned maintenance and timely repair and replacement of equipment, ensuring optimum operating efficiency. The services provided will also ensure new developments comply with the latest standards and regulations for energy efficiency.

Statutory Officer Comments

• Finance: The estimated annual cost is £883,000, with £150,000 attributable to revenue and £733,000 to capital. Budget provision has been made for both revenue and capital elements.
• Procurement: Strategic Procurement noted that the report relates to the appointment of Bidder A for technical audits and quality assurance, subject to the outcome of the Section 20 Consultation with Leaseholders. The outcome has achieved value for money as it was tendered through a Dynamic Purchasing System³.
• Legal: The Director of Legal and Governance (Monitoring Officer) confirmed that the contract was procured via call-off from the London Construction Programme, Dynamic Purchasing System (DPS), which is a compliant route to procure such services.
• Equality: The report noted that black people, disabled people, women, and those from a low socioeconomic background are overrepresented in Haringey's social housing stock. Therefore, taking steps to ensure that this essential work is completed will have a positive impact on those who share protected characteristics.

Exclusion of Press and Public

The press and public were excluded from the remainder of the meeting as item 6 contained exempt information as defined under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972[^5]: Information relating to the financial or business affairs of any particular person (including the authority holding that information).