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RESOLVED:
 
1. 
To approve Lot 1 - two specialist roofing and
scaffolding contractors to work directly for Building Maintenance,
with a contract value of approximately £1.7m per year, and a
value of approximately £6.8m over the maximum contract
term.
2. 
To defer approval of Lot 2 - one specialist contractor to
perform scaffolding inspections of a value of approximately
£250K per year, and a value of approximately £1m, over
the maximum contract term.  A revised
report relating to Lot 2 to be submitted at the next Committee
meeting following a review of the insourcing element of the
scaffolding inspections.
3. 
To not agree to delegate authority to the Group Director,
Climate Homes and Economy to award and enter into the contracts
referenced in paragraphs 1 and 2 above. An update is to be provided
to the Committee before the contract expires to allow the Committee
to reconsider this decision.
 
 
Reason(s) For
Decision
 
Background
 
LOT 1
Previously, the DLO had a contract with Pride
and Griffin Scaffolding to provide a specialist scaffolding
contractor to work on planned and reactive maintenance work. The
contract was procured in 2018 with the start date in 2019. The
maximum contract term was 4 years, with an initial 2 year contract with extensions of 1 + 1 years. This
contract was supported by the STA arrangements put in place with
Herts Heritage to provide roofing repairs. This is now proposed to
be procured as one contract providing both specialisms.
 
This procurement is to continue the delivery
by the specialist contractor to support the DLO in completing works
which require scaffolding and roofing repairs ie. flute installations, roof repairs, wiring
installations, facade repairs etc.
 
The DLO does not have the required specialist
skill set, resources or storage capacity within the depot for
scaffolding and complex roofing jobs.
 
Continuing this relationship with a specialist
scaffolding and roofing contractor would ensure that the DLO has a
direct contract with a specialist provider and not an indirect
relationship with a main contractor who then coordinates with the
subcontractor. Going through the main contractor would result in
difficulties in managing the specialist subcontractors, an increase
in administrative tasks, delays in the completion of the works and
will adversely impact on the customer satisfaction which Hackney is
constantly trying to improve. The quality of the repair service is
crucial in the running of the council and its improvement of the
key performance indicators.
 
The DLO and the council commercial team wish
to continue with a specialist scaffolding and roofing contractor to
support works performed by the DLO.
 
LOT 2
 
Previously, the contract with Pride and
Griffin scaffolding did not include scaffolding inspections. This
was identified as a health and safety risk in 2022 and it was
proposed to the contractor to complete these inspections. It is not
known whether this was performed before 2022 externally or
internally as there are no records. However, due to the high costs
which could not be absorbed into the contract value as it was not
intended for that purpose, it was identified that it should be
taken on inhouse within the DLO. The
DLO are performing the scaffolding inspections however the risk and
liabilities which can occur by a scaffold failing would have a
negative reputational and financial  impact on London Borough of Hackney. To
eliminate this risk from the client it is recommended that it is
procured through a competitive flexible tender on Pro Contract.
 
The proposed procurement strategy for LOT 1
and LOT 2 is an above Procurement Act 2023 threshold competitive
flexible tender procedure. The two highest scoring bids would be
awarded the contracts on LOT 1 and the highest scoring bidder will
be awarded LOT 2 to cover the Council. Successful suppliers will
only be awarded one lot each, meaning if supplier A is awarded Lot
1 then they cannot be awarded Lot 2.
 
Previously, LBH has used a custom schedule of
rates (Prices) called MATCO which was produced and maintained
within Hackney over the past 40 years. The recommended pricing
model will be based on the MATCO custom schedule. The National
Housing Federation Schedule of Rates, which we use in other general
building contracts, do not have individual rates for scaffolding,
as it is deemed inclusive within the repair codes. 
 
The tenders will be evaluated based on 60%
price and 30% quality 10% social value. In LOT 1:
Scaffolding and Roofing, the volume of work across the Borough
will be allocated to the two highest ranked bidders. The highest
ranked bidder would be allocated  60% Borough coverage and the next highest
scoring bidder would be awarded 40% Borough coverage. The borough
split has been calculated with the number of dwellings as per the
area split. North, South, East and West of Hackney. The West and
South are Circa 60% - 17648 dwellings, and the North and East are
Circa 40% - 12362 dwellings. The figures stated are from Property
Data Source used in conjunction with the allocated postcodes for
Area Surveyor Managers.
 
 

Area

Postcode

Nr
of Dwellings

Percentage
 

North

N16 6**
N16 7**
E5 8**
E5 9**
 

4666

15.55%

West

N4 1**
N4 2**
N5 1**
N5 2**
N15 6**
N16 5**
N16 0**
N16 8**
N16 9**
 

5597

18.65%

South

E8 2**
E8 3**
E8 4**
E2 8**
E2 7**
E1 6**
EC1V1
EC1V9
EC2A3
EC2A4
EC2A2
EC2A4
N1 3**
N1 4**
N1 5**
N1 6**
N1 7**
 

12051

40.16%

East

E 10 7**
E10 5**
E5 2**
E5 0**
E9 5**
E9 6**
E9 7**
E8 1**
 

7696

25.64%

 
As for Lot 2: Scaffolding
Inspections, the tender will be carried out at 60% price and
30% quality 10% social value. The highest ranking bidder will be
awarded the contract. 100% of the volume of scaffolding inspections
will be given to the single supplier. With the use of historical
data, the peak of the number of inspections can rise up to 130 per
week. Using this data, an average of 100 inspections per week were
used to calculate the budget for this contract. There is no
requirement within the JCT to use all the available contract value,
it is just an estimated value and London Borough of Hackney has no
commitment to spend the full contract value.
 
For LOT 1: Scaffolding and
Roofing, the recommended approach would allow SME bids and the
award of contracts to 2 contractors will provide security and
confidence within the business.
 
For LOT 2: Scaffolding
Inspections, the recommended approach would allow a competitive
method which enables; SME bids, competitive rates within the
market, provides a resource which is required to support housing
repairs and ensures we meet regulations and legislations for health
and safety.
 
This approach to market will provide but is
not limited to:
 
· 
A secondary contractor to assist in works to balance the
workload.
· 
Provide backup when quality may become an issue with either
contractor.
· 
Additional resource capacity if needed to support the housing
emergency plan.
· 
Provide an opportunity for SME Contractors within the local area
and surrounding areas.
· 
Reduce the risk factor if a contractor were to become liquidated
due to the current financial market.
· 
Provide competitive rates within the market.
 
Works will be funded by the existing client
budgets to ensure value for money.
 
The methodology for raising jobs will be to
onboard the contractor to the repairs
hub, and then pass on the jobs via the council linked repairs hub.
This will be used to manage the contractor and to measure KPIs
where possible.
 
Alternative Options
Considered and Rejected
 
Option 2 - Using
Framework
 
LHC, Procurement for Housing and various other
Frameworks were approached to explore using a Framework agreement
for Scaffolding & roofing but the specific nature of the
contract required means that a suitable framework was not found
that could be used by Public Sector organisations.
 
Option 3 -
Insourcing by using DLO
 
The idea of using the DLO to perform this is
an option which is currently not possible. The DLO does not have
the qualified personnel to perform scaffolding from small to large
scale. Although the DLO does have roofing operatives, the complex
roofing jobs are not undertaken with the in-house DLO.
 
There is willingness within the workforce to
train for roofing works however the current workforce is not as
receptive to training in scaffolding and complex roofing works.
 
Although taking this route would create more
control within the workforce and ensure the jobs are coordinated
effectively, the expertise and skills within the workforce are
unavailable. Also, it would require capital investment to purchase
scaffolding equipment and space within the depot which is currently
very limited.
 
This option is currently not feasible.
 
Option 4 - DLO
Decline Works Scaffolding & Roofing
 
An option could be to decline works requiring
scaffolding & roofing for the DLO, it would be a limiting
factor on the scope of works packages for the DLO. If the work is
not facilitated by the DLO, these work orders will reallocate to
the area surveying managers who carry out larger project works.
This will also overload the General Building Contractors affecting
contractor performance, budgets and KPIs. This will affect the
council and the performance of the contractors.
 
Option 5 - Purchase
scaffolding & roofing when required on a project basis
 
The option is not seen as feasible due to the
risk of delaying project starts. Pre agreed rates from tenders
would be ideal but not achievable with this option. Currently, the
risk of the RFQ project may delay emergency and urgent works. This
will dissatisfy the residents of Hackney. This option does not
demonstrate value for money d therefore has been rejected