Decision Maker:

Outcome: For Determination

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: April 7, 2025

Purpose:

Content: 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