Councillor Sarah Williams, Cabinet Member for Housing Services, Private Renters, and Planning, approved a significant increase to the contract value for gas maintenance services. This decision ensures the continued provision of essential gas servicing, maintenance, and boiler replacements for council residents.

Gas Maintenance Contract Variation Approved

Councillor Sarah Williams approved a variation to increase the contract value for the gas maintenance contract (Lot 2) with Purdy Contracts Ltd by £5,504,908.90. This brings the total contract value to £17,454,908.90, covering services until March 2025. The decision was made to ensure the continuation of gas service and maintenance, including boiler replacements, for council residents.

The reasons for the variation include the ongoing need for servicing and maintenance of domestic heating systems in the west of the borough, as well as commercial and communal heating systems across the borough. It will also facilitate the replacement of obsolete and failing communal boiler systems and the renewal of gas supply pipes that no longer comply with current safety regulations. This ensures adherence to Regulation 36 of the Gas Safe Regulations 1998, which mandates landlords' duties to keep residents safe.

This variation was deemed the most economically advantageous route, as a new contract procurement is scheduled for next year, with the current contract expiring in September 2025. While the original procurement resulted in significant savings, unforeseen services became necessary to ensure resident safety and the continued provision of heat and hot water, leading to increased contract costs.

Purdy Contracts Ltd has been delivering social value under the Haringey contract since 2020. This has included benefits to the local community through using local supply chains, attending careers fairs, donating Christmas presents, offering work experience placements, and creating five apprentice roles, two of whom have qualified as engineers. The company is also committed to using local suppliers for materials, contributing to the local economy. For example, spending with local supplier A10 has amounted to £840,000 in Social Impact Value over the past year.

Alternative options considered included undertaking a full procurement exercise, which was deemed not viable due to the time required (nine to twelve months) and the contractor's good performance. The option to do nothing was not feasible as it would prevent the council from meeting its statutory health and safety obligations. An in-house delivery option was also considered, but a review of this would take up to twenty-four months.

The report noted that the original contract value of £11.95 million had been exhausted three and a half years into the five-year contract. The additional costs arose from inflationary increases in the contractor's costs, as permitted by contractual price adjustment clauses, and unforeseen circumstances. These included emergency cover for work that Haringey Repairs Service could not undertake, the installation of additional Carbon Monoxide detectors following regulatory changes in 2021, and unplanned communal boiler failures and domestic boiler replacements.

The additional £5.5 million will be funded from existing budgets, with £1.57 million from revenue for gas servicing and other related works, and £3.93 million from capital for new domestic gas installations and boiler works. The report also highlighted that the contractor's performance has been good, and the variation complies with Public Contracts Regulations 2015, specifically Regulation 72(1)(b)(i)(ii), which permits contract modifications under certain conditions. The decision is expected to have no negative equalities implications, as its purpose is to ensure resident safety.

The meeting was attended by Councillor Sarah Williams, Cabinet Member for Housing Services, Private Renters and Planning, and Scott Kay, Head of Residential Building Safety. Nazyer Choudhury, Principal Committee Co-Ordinator, was also in attendance. There were no apologies for absence, urgent business, declarations of interest, or deputations, petitions, or questions. The meeting also noted the council's policy on filming at meetings.

The decision to approve the variation was made under Contract Standing Order 10.02.1.b. The full details of the financial aspects of the variation were contained within an exempt report, as per Schedule 12A of the Local Government Act 1972, relating to financial and business affairs.

The report contributes to Theme 5 of the Corporate Delivery Plan 2022-2024: A borough where everyone has a safe, sustainable, stable, and affordable home. It also addresses carbon and climate change by ensuring gas safety systems are efficient, reducing emissions from potentially dangerous equipment, and minimising waste from unnecessary appliance replacements.

The meeting was held on Thursday, 16 May 2024, at 1:30 pm. You can find the agenda for this meeting here, the public reports pack here, and the printed minutes here.