The Cabinet Member Signing meeting on Thursday 28 March 2024 approved variations to contracts with three law firms to handle an increasing volume of housing disrepair cases. The meeting also noted the council's ongoing efforts to build in-house capacity to manage these cases and improve the housing stock.

Varying Contracts for Housing Disrepair Casework

The meeting approved variations to contracts awarded to law firms Ashfords LLP, Birketts LLP, and TLT LLP. These variations will increase the maximum value of each contract to allow them to continue handling the significant and rising number of housing disrepair cases. The council is experiencing a surge in these cases, with approximately 49 new claims received each month, leading to around 1000 open cases.

Councillor Peray Ahmet, Leader of the Council, expressed satisfaction with the report, noting that it outlined clear strategies for future prevention and management of these cases. The decision to vary the contracts was made to ensure the council has sufficient legal resources to address the high volume of claims, which can escalate to legal proceedings if disrepair is not rectified.

The council is also taking steps to increase its in-house capacity by building a temporary specialist Legal Disrepair team within the Litigation Team. This team will comprise up to ten additional staff on fixed-term contracts, with recruitment for these positions set to launch in April 2024. The aim is to transition agency workers to fixed-term contracts and potentially bring some outsourced cases back in-house.

The decision to approve the contract variations was made to prevent delays in addressing existing and new housing disrepair cases. The council considered the alternative of doing nothing, but this was deemed not an option due to the potential for tenants and leaseholders to obtain judgments against the council, leading to significant financial and legal repercussions, including the risk of senior officers facing court attendance and potential imprisonment. Insourcing was also considered, and capacity is being developed, but extending the current contracts was deemed necessary in the interim.

The report highlighted that the financial implications of failing to manage disrepair cases are severe, with each breach of an agreed or ordered timescale potentially costing the council a minimum of £4,000 in legal fees and compensation. The council's Housing Authority is also working to reduce the number of disrepair cases reaching the legal stage by improving its repair services and appointing additional contractors.

The approved variations allow for a cumulative contract value of up to £2.4 million to be awarded to the law firms. This decision is subject to the approval of a virement to the Housing Revenue Account (HRA) budget to cover these costs. The council also noted that further procurement exercises may be undertaken in 2024 to award additional contracts if budget remains available.

The report referenced previous decisions, including a virement of £3.6 million approved in September 2023 to cover legal disrepair costs and compensation, with £2.3 million allocated for external lawyers in the 2023/24 financial year. The current £2.3 million awarded to the law firms is nearing exhaustion, necessitating the current request for increased funding.

The decision to vary the contracts is considered a Key Decision and was made by the Leader of the Council in accordance with Contract Standing Order (CSO) 16.02, which allows the Leader to make such decisions between Cabinet meetings. The variations are permissible under Regulation 10 of the Public Contracts Regulations 2015, which exempts certain legal services from standard procurement rules.

The report also noted that the decision does not have any impact on persons sharing protected characteristics under the Equality Act 2010, and therefore the Public Sector Equality Duty is not engaged.

The meeting also noted the council's commitment to improving its housing stock and repairs service, aligning with Theme 5 of the Corporate Delivery Plan 2022-2024, Homes for the Future.

• Ashfords LLP
• Birketts LLP
• TLT LLP
• Councillor Peray Ahmet (Leader of the Council)
• Haringey Repairs Service (HRS)
• Housing Revenue Account (HRA)
• London Boroughs' Legal Alliance (LBLA)
• Corporate Delivery Plan 2022-2024
• Public Contracts Regulations 2015¹
• Contract Standing Order (CSO) 16.02²
• Equality Act 2010³