Decision

 RESOLVED:

1. To approve the award of Contract 2A for General Building Works - DLO Support Contractor, to Bidder A for an initial term of two (2) years with the option to extend for one (1) years.

1. To approve the award of Contract 2B for General Building Works - DLO Support Contractor, to Bidder B for an initial term of two (2) years with the option to extend for one (1) years.

Reason(s) For Decision

1. This report outlines the process that has been followed to identify preferred contractors for the General Building Contract 2.

1. The approach taken is to appoint 4 different contractors; two contractors on General Building Contract 1 and two contractors on General Building Contract 2. This award report is for General Building Contract 2 only. This will provide the contingency of having more than one contractor in the case of one failing. Also, with more than one contractor servicing the contract, it allowed for increased competition during the tendering process, therefore ensuring good value for money in relation to cost, quality of work, delivery and sustainability.

1. The principle works which fall under this commission include but are not limited to:

·  Reactive Repairs

·  Voids

·  Legal Disrepair

·  Electrical works & scaffolding in association with above.

1. The contract duration is two years, with the option to extend by one year, totalling three years. The combined contract value per year is approximately £0.83M, totalling £2.5M over the 3 year duration.

1. This contract is split into two, Contract 2A and Contract 2B. Contract 2A comprises approximately £0.5M per year with 60% of the works allocation. Contract 1B comprises approximately £0.33M per year with 40% of the works allocation. The allocation corresponds to a borough wide split between North and South of Hackney.

1. A separate tender exercise has been conducted for the general building contractor 1 to undertake works for the Area Surveying Managers.

1. It is proposed that the Council will enter into a JCT Measured Term Contract 2016 with Hackney Council amendments utilising the National Housing Federation (NHF) v7.2 Schedule of Rates. Supporting documents will include the Council requirements, preliminaries and specification. This is proposed for Bidder A and Bidder B.

1. Core requirements in accordance with the Council's goals in relation to sustainability and social value have been included in depth within the quality section of the procurement. This is to support the Council's target of reaching net zero, ensuring all the bidders offer the London living wage to all employees and provide opportunities for individuals within the borough. More information is available in Section 8.

Alternative Options (Considered and Rejected)

1. Extend Current Arrangements: (Rejected)

Continue with the current arrangement of using a specialist contractor engaged through other contract mechanisms such as a Single Tender Award.

This would delay repairs due to the complexity of the arrangements and would result in the Council’s client team having to coordinate the management of multiple contractors, increasing administration time and costs.

In addition there have been service issues with these types of arrangements and It will not resolve the quality of the repair service currently being experienced by this arrangement.

1. Do nothing: (Rejected)

Doing nothing will result in the Council declining those works requiring external contractor support. This would compromise the Council’s position as a Public Sector landlord and therefore its duties as defined under section 96 of the Housing Act 1985. The aim of the Council is to provide accommodation which the residents are proud of. Doing nothing will negatively impact the quality of the facilities throughout homes across the borough.

1. 3.  Insourcing (Rejected)

The DLO is currently not resourced to deliver the quantum and sophistication of works that would be allocated to the General Building Contractors - scope of services and works. Developing the required capacity would take a considerable amount of time and effort and is not the subject of this proposal.

External contracts are required to support the in-house service to deliver effective housing repairs. This is in line with the insourcing strategy already implemented.

This procurement will enable us to appoint 4 contractors against the two packages; 2 contractors for the Area Surveyor Managers (already awarded via CPIC) and 2 contractors for the Direct Labour Organisation to ensure that there is sufficient capacity and capability whilst the in house service continues to grow. Failure to have the contracts in place would result in poor services for residents.