Purpose

The contract for painting and decorating of housing and commercial properties expired in November 2024.  The works undertaken are more than simply painting and decorating, involving all aspects of remedial works to both council and privately owned properties.

Insurance works are often very reactive, requiring an urgent response, and collaboration between the contractor, the council and the resident. The contractors used are small local firms, who with no notice will support and respond to urgent cases.

In the main the insurance service uses 2 specific contractors, estimates are provided for approval, estimates provided by the 2 suppliers are rarely challenged by insurers. Recently estimates received from a larger contractor were challenged by insurers, their quote was rejected as costs were deemed to be too high, a further quote was obtained from a smaller local contractor, which was accepted by insurers.

Decision

The contract for painting and decorating of housing and commercial properties expired in November 2024.  The works undertaken are more than simply painting and decorating, involving all aspects of remedial works to both council and privately owned properties.

Insurance works are often very reactive, requiring an urgent response, and collaboration between the contractor, the council and the resident. The contractors used are small local firms, who with no notice will support and respond to urgent cases.

In the main the insurance service uses 2 specific contractors, estimates are provided for approval, estimates provided by the 2 suppliers are rarely challenged by insurers. Recently estimates received from a larger contractor were challenged by insurers, their quote was rejected as costs were deemed to be too high, a further quote was obtained from a smaller local contractor, which was accepted by insurers.

Reasons for the decision

That the extension to the contracts relating to insurance works be extended until 1 April 2028. This proposal provides the best option for the Council, allowing continuity of service in the run up to LGR.

Alternative options considered

Options considered and reasons for rejection:

Option 1 - Direct award /extend existing contract with existing contractorsthrough to the creation of the new unitary authority.  It is expected that the process around insurance works and claims could change under the new authority along with any potential contracts moving forward.  This approach will allow us to continue to deliver responsive works and support residents and businesses for the remaining life of Dacorum.  Approval obtained from Commercial Board for this option

Option 2  Below threshold  tender Exercise - Undertake a below threshold tender process to test the insurance market to award a contract for insurance works to 31 March 2028.  Option rejected due to VFM and timeframes with LGR

Option 3 Utilise existing Contracts -Linking the works to the existing housing contract with Cardo has been considered.  The costs in relation to works will increase to take into account overheads – these would not be recoverable from insurers.  Insurers will reject any estimates where costs exceed expected range for works undertaken.  In addition, due to the processes it is unlikely that the Council will receive the immediate response and communications required in managing the cases being undertaken.

Option rejected – an added layer of bureaucracy would be added, leading to potential time delays and increased costs, which may not be met by insurers