Decision

New contracts for the Servicing of Domestic Gas Boilers

Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 8, 2026

Purpose: To award the interim contract.

Content: Decision: 1.     To approve the award of the Domestic Gas Boiler Servicing (East) contract to T.S.G Building Services PLC for a period of 12 months from 16 January 2026 at a total contract value of £461,816. 2.     To approve the award of the Domestic Gas Boiler Servicing (West) contract to Sureserve Energy Services UK Ltd for a period of 12  months from 16 January 2026 at a total contract value of £461,816.   Reasons: 1.     The previous contract for the East expired on 7 November 2025 and the contract for the West expired on 5 December 2025. At present, we are currently meeting demand for this service on a reactive basis. It is not advisable to maintain this approach, given the peak period for this service is approaching and there is a need to put a formal compliant contract in place to ensure that we meet our statutory duty. 2.     If we do not enter into these contracts, the Council will fail in providing its statutory Gas and Boiler Servicing requirements. 3.     The Council is preparing a tender for a longer-term contract for each area, which is envisaged to be awarded within the 12 months period. It is imperative that whilst the council is procuring a new long-term contract, that we continue to service all domestic boilers in our properties. 4.     A waiver has been put in place for each of the expired contracts to cover the period following expiry until commencement of the interim solutions. 5.     Additionally, the costs for demobilisation of current contractors and cost of system integration and mobilisation of new contract for a short period would outweigh any benefit from bringing in any potential new supplier. 6.     Value for money is demonstrated by continuity of the service via the incumbent suppliers under a compliant call off contract against Fusion 21 Framework Heating, Renewables, and Electrical Framework Lot 1.   Other options considered and rejected by the Executive: 1.     Do nothing – This option was dismissed because continuing with the expired contracts presents a breach against the Council’s Contract Procedure Rules. Furthermore, if the supplier walked away from the contract, this would prevent the Council from meeting its statutory duties under GSIUR, HHSRS, and the Decent Homes Standard. It would place tenants at risk due to unsafe or unmaintained gas installations, increase asset risk across the housing stock, and expose the Council to potential financial and reputational harm. 2.     Extend Previous Contracts – This option was dismissed because the existing contracts have now expired and cannot legally be extended. Under the Public Contracts Regulations 2015 (PCR 2015), extending an expired contract would constitute a direct award without competition, which is a breach of procurement law. Proceeding in this way would expose the Council to significant legal, financial, and reputational risks, including potential challenge from the market. As such, this option is neither lawful nor appropriate.   Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted: None.  

Supporting Documents

Exec Report GBC Domestic Gas Testing Contracts.pdf

Related Meeting

Executive - Thursday, 8th January, 2026 6.00 pm on January 8, 2026