Decision Maker: Cabinet Procurement and Insourcing Committee

Outcome: Implemented

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: July 7, 2025

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.