Decision Maker: Executive, Council

Outcome: Recommmend Forward to Council

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: July 17, 2025

Purpose: To consider the existing Shellen Fire Door contract expenditure and agree future provision.

Content: Decision: 1.   Note the overspend of £1.6m against the approved original contract estimate of £2.5m. 2.   Note an additional committed spend of £0.8m within the original contract, which will take the total spend on the contract to £4.9m. 3.   Note the budget allocation was £3.6m and therefore an overspend on the existing fire door programme budget of £0.5m has occurred. 4.   Subject to full Council approving the additional budget of £2.4m to approve the award of a new contract to Shellen through the Pretium Framework agreement delivered through Hyde in order to complete the remaining programme of fire door installation.  This will cover the £1.6m remaining programme and the £0.8m works committed under the old contract but not yet complete. 5.   Note the intention of the Strategic Director for Housing, Communities & Environment to agree to provide doors, at the Council’s expense, to the 50 leasehold properties in the Council’s four high rise blocks, with an estimated cost of £125,000 in line with para 3.6 below; and 6.   That the Executiverecommend that full Council (meeting on 29 July 2025) resolve to: (i)   Note the overspend of £0.5m against the approved budget and authorise the Chief Financial Officer to make any necessary changes to the HRA capital programme budget; and (ii)  Approve a capital budget of £2.4m to complete the fire door programme over the next two years. Reason(s): 1.       Failure to complete the installation of fire doors will leave the residents and Council potentially at risk. The doors and frames being replaced are certified fire doors which will protect residents in the event of a fire. The current doors are not fire certified and cannot be confirmed as compliant with current fire regulations. Appendix 1 sets out the duties and potential breaches the Council as the accountable body, could face if the doors are not replaced. 2.       A direct award to Shellen would prevent further delays in completing the programme. Completing the door programme with a single provider will allow standardisation of doors, which will provide continuity of service and doors across the housing portfolio.   3.       In addition, the recommendation to direct award would provide value for money. The contractor priced the original tender in early 2022 and prices have increased by 16% through annual inflation and demand. This would equate to £256k saving on the £1.6m remainder of the programme vs a new contract. Shellen have confirmed if awarded the direct contract for the remainder of the door programme they will stand by the original pricing.   4.       Pretium have confirmed a direct award can be made to Shellen through the Pretium framework managed by Hyde.  The Procurement team have also confirmed they approve this route.   5.       Members are asked to note the overspend of the approved budget and that this, and the contractual overspend, will be referred to the Audit & Risk Committee for their consideration.   6.       The provision of doors on leasehold properties in high rise buildings will provide assurance that all doors are compliant, to protect the integrity of the building, safety of all residents and to prevent further delays in installation.  Under the lease agreement the individual front doors form part of the leaseholders’ property and the Council has no right to require the installation of fire doors.  The installation of fire doors on all the properties within the high-rise buildings provides an additional protection to the Council’s property and all tenants in accordance with health and safety requirements for high-rise buildings.  In recognition of these risks, it is considered that the Council bearing these costs amounts to best value and is a pragmatic approach. Other options considered and rejected by the Executive: Options 1, 2, 3, and 5. Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted: None.