Purpose

This procurement paper seeks approval
to initiate the procurement of specialist external wall consultants
to carry out PAS 9980:2022 assessments, alongside the procurement
of Principal Contractors to undertake any necessary remedial works
to external wall systems identified through these assessments.

Content

RESOLVED to:
 
1. 
Approve the use of an external framework to award a 48
month contract to appoint up to two external wall consultants. The
consultants will carry out PAS 9980 fire risk assessments across
the Council’s residential blocks, in accordance with
statutory duties under the Fire Safety Act 2021 and the Fire Safety
(England) Regulations 2022. This may also include Fire Strategy
Reports. Also the consultants will prepare and manage the grant
application and then administration process with the MHC&LG and
act as the client’s representative in managing the release of
payments to the contractors. The consultants will also support with
expert opinion the procurement and award of the contractor
including input to the specification and contract KPIs.
 

A. 2 x specialist Fire Consultants £5.6m (£6.75m
inc VAT) 4 years, competition from a
public Framework
 
2. 
Approve use of an external framework to award a 12
month contract to appoint one principal Contractor. The contractor
will carry out external fire risk remedial works across the
Council’s residential blocks, in accordance with statutory
duties under the Fire Safety Act 2021 and the Fire Safety (England)
Regulations 2022.  As there are
currently surveys being undertaken to identify remedial works
needed, this will provide resources while the second stage is
procured, that being Hackney’s own framework. The contractor
will be appointed on a SOR [Schedule of Rates] contract.

 

A.2.1. Immediate short term Contractor: up to 2 years, Direct
Award

from a public Framework
 
3. 
The Cabinet Procurement & Insourcing Committee
approve the procurement of a 4 + 2 year Framework Agreement of up
to three Principal Contractors to undertake any remedial works
identified as necessary following completion of the PAS 9980
assessments.

 

A.2.2.. 3 x Contractors: 4+2 years. From a Hackney competition to
create our own Framework panel

 
Combined sum of A.2.1 and A.2.1. being £80m
(£96m inc VAT)
 
4. 
Approve the procurement of a Principal Designer through
establishment of a Framework, with the intention of insourcing
these roles over time.

 

B. Principal Designers, Construction [Design and Management]
Regulations [CDM Regulations 2016] £2m (£2.6m in VAT)
and Building Safety Act Principal Designer [2022] (£6.0m
including VAT) 4 years, advertised competition until / if in-source
cannot be recruited
5. 
Approve the use of government funding, available until
September 2029, to deliver the full scope of assessments and
remedial works, ensuring full utilisation of the grant within the
funding timeframe.
 
6. 
Approve delegated authority to the Group Director of
Climate, Homes and Economy to approve the award of contracts
arising from these procurements, provided they are within the
approved budget and comply with the procurement strategy set out in
this report.

 
7. 
Total approval is sought to be spent, on this Fire
Safety Programme, from the MHC&LG grants once secured of up to
£87.6m (£105.12m in VAT).

 
8. 
It is noted that the limit of £300,000 of
potential risk spend exposure is approved in the event of the
MHC&LG grants not being secured.
 
Reasons For
Decision
 
There is currently no contractual provision or
in-house resources to deliver the essential requirements of an
External Fire Safety Consultancy or a Principal Contractor capable
of delivering the remedial works. This has meant that Hackney has
been unable to progress the essential works to date and now needs
to go out externally. The nature of the consultancy work is very
specialised and is not a skill that can be built in-house in a
short timeframe, even through
interims.
 
Also the Council does not have Contractor
capability or competence to build-out the work.
 
The Government through the MHC&LG has made
100% grant funding available for the scope of this Business Case
external fire safety works, and provision of these will ensure the
Council can access and fully utilise government funding that has
been made available to support fire safety remediation works. This
funding, which is time-limited and must be spent by September 2029,
provides a critical opportunity to deliver these essential works
without placing additional pressure on the Council’s Housing
Revenue Account (HRA). Without this funding, the cost of compliance
would fall entirely to the Council.
 
As there is no current budget for this work
this would place its housing budget under extreme and unsustainable
financial strain. Hackney needs to grasp the opportunity of grant
funding.
 
There is an urgent need to commence
procurement activity to ensure that both the assessments and any
resulting remedial works are completed in time, not only to meet
the funding deadline, but also to ensure this critical safety work
is complete as soon as possible for residents safety.  Any delay in procurement may result in the Council
missing the opportunity to draw down this government support,
increasing the financial burden and risk of non-compliance, and
prolonging completion of critical safety work in high rise
homes.
 
In addition to the financial imperative, the
Council has a statutory duty under the Fire Safety Act 2021 and the
Fire Safety (England) Regulations 2022 to assess and mitigate fire
risks associated with external wall systems. The PAS 9980
methodology provides the recognised framework for undertaking these
assessments. Where risks are identified, the Council has a legal
obligation to carry out remedial works to ensure the safety of
residents and compliance with the law.
 
In addition to the PAS 9980, the fire safety
consultancy scope will also include provision of  Fire Strategy Reports and Building Regulation
Principal Designer. This will provide capacity and resources to
support internal teams to deliver essential reports and
responsibilities particularly for high rise buildings that are
essential for delivery of works across Hackney high rise
residences. This scope of work will enable much needed capital work
that can not be processed without these
enabling services.
 
Alternative Options
Considered and Rejected
 
1. Continue with Ad
Hoc Procurement and Internal Delivery
 
Maintain the current approach of commissioning
PAS 9980 assessments and remedial works on an ad hoc basis, using a
mix of internal resource and one-off procurements.
 
Reasons for Rejection:
 
Inefficiency and inconsistency: The lack of a
structured delivery model limits the Council’s ability to
plan resources, standardise reporting, and monitor progress
effectively.
 
Risk of non-compliance: This approach is
reactive and does not guarantee timely delivery of assessments or
works, placing the Council at risk of breaching statutory
obligations.
 
Funding risk: Government funding must be spent
by September 2029. An unstructured approach would significantly
hinder the Council’s ability to fully utilise this
time-limited grant.
 
Higher costs over time: One-off procurements
tend to result in less competitive pricing and reduced economies of
scale.
 
Similarly for the remediation Construction
works no compliant or competent contractor has been procured at
present.
 
2. Fully Insourced
Delivery Model from the Outset
 
Recruit and train an in-house team to deliver
all PAS 9980 assessments and manage remedial works directly,
without external consultants or contractors.
 
Reasons for Rejection:
 
Lack of internal capacity and expertise: The
Council currently does not have the in-house technical expertise or
resources to deliver complex fire safety assessments at the
required scale and pace.
 
Time constraints: Building the necessary
internal capability would take significant time, potentially
delaying delivery and risking loss of government funding.
 
Market maturity: External specialists have
established experience in PAS 9980 assessments and remediation,
which is critical for statutory compliance and quality
assurance.
 
Similarly for delivery of the construction,
there is no compliant contractor in place to deliver the necessary
complaint works.
 
3. Wait for
Additional Government Guidance or Funding Extensions
 
Defer procurement activity in anticipation of
further clarification from the central government or potential
extensions to funding deadlines beyond 2029.
 
Reasons for Rejection:
 
Uncertainty and risk: There is no guarantee
that funding will be extended or that future guidance will change
statutory obligations.
 
Missed opportunity: Delaying procurement would
reduce the time available to complete assessments and works,
jeopardising the Council’s ability to spend the grant within
the current funding window.
 
Increased exposure: Postponement of works
would extend the period during which buildings remain at potential
fire safety risk, contravening the Council’s duty of care to
residents.
 
As the relevant grants have been made
available - with the proviso that the work is completed by
September 2029 - there is a very low likelihood of an improved
grant, above the 100% currently on offer.
 
These alternatives were assessed as either
very high risk, financially inefficient, or operationally unviable.
As such, they have not been taken forward. The recommended
procurement approach provides the most effective, lawful, and
financially responsible route to delivering the required outcomes.
Hackney’s position may become untenable with our insurers
unless the in-scope works of the business case are commenced.