Resolved

1.         That it be agreed that the contracts for General Build Housing Repair and Gas Servicing and Repair proceed to Award stage; and

2.         That the Corporate Director of Development and Renewal be authorised to award the contract or contracts, and after consultation with the Assistant Chief Executive (Legal Services) to execute all necessary contract documents.

Action by:

CORPORATE DIRECTOR – DEVELOPMENT & RENEWAL (A. DALVI)

Service Head - Strategy, Innovation & Sustainability, Development and Renewal (J. Odunoye)

Strategic Housing Manager, Development and Renewal (J. Coker)

Ms Odunoye, Service Head Strategy, Regeneration and Sustainability Development and Renewal, at the request of the Chair, in introducing the report:

·                    Summarised the key points contained therein, highlighting in particular:

o                   The current repair contract (voids, reactive repairs, minor planned works) and the gas servicing and repair contract were let for 5 years in April 2005 with an option to extend for 2 years. They were both extended for 1 year to end of March 2011, so new contracts would be required in April 2011.

o                   This procurement represented approximately 80 per cent by value of the Council’s expenditure on repairs and maintenance for housing stock.

o                   Tower Hamlets Homes had been responsible for the delivery of the repairs since July 2008; and in conjunction with a resident group had reviewed the contracts, with a view to improving service delivery for tenants and residents. Telephone surveys and call centre data had also been examined. Feedback from statutory consultation with leaseholders [December 2009] was also reflected in the proposals.

o                   Term Partnering contracts were proposed. A modern form of contract, taking account of both the client/ contractor relationship and stakeholders such as residents, allowing a more collaborative/ flexible approach focused on outcomes: problem solving and continuous improvement.

o                   The new contracts were customer focused with; emphasis on neighbourhood delivery of services. Senior managers on the contractor side were required to work with both THH Officers, TRAs and other residents and were consequently located in the 3 Area Housing Offices.

o                   Access to the service was primarily via the Call Centre and no change was proposed to the call receipt/ diagnostic process. However there was scope for improved call management: co- location of contractor staff in the call centre improved diagnostic accuracy, chase up calls could also be reduced through contractor ownership.

o                   Planned repairs would be optimised within the new service for example gas servicing. THH would also plan for reactive repairs, with sufficient staff employed to meet probable demand with down time used for preventative maintenance for example gas servicing alongside call out or gutter clearance.

o                   Completion of repairs on time and within budget would also be part of the focus on outcomes.

o                   Following expressions of interest 8 contractors had been shortlisted to tender for the two contracts.

·                    Addressed the matters raised by the Overview and Scrutiny Committee, held on 7^th September 2010, in relation to the report; as set out in the tabled sheet of questions and comments presented by the Chair of the Overview and Scrutiny Committee earlier in the proceedings:

A discussion followed, during which the proposals in the report were broadly welcomed, and which focused on the following points:-

·                    Welcomed the objective of improving the level of service received by tenants and the quality of repairs undertaken. However, clarification/ assurance was sought and given, in referring to Section 6 of the report, as to whether the proposed new format of contract had been used by other local authorities to improve their service, to what extent this had proven successful, and were officers confident that the improved outcomes/ relationships detailed could be delivered.

·                    Clarification/ assurance was sought and given, in the context of the reported likelihood of the Connaught entering administration, as to the financial procedures for checking/ ensuring the financial stability of contractors working for the Authority.

The Chair Moved the recommendations as set out in the report; and it was: -

Resolved

1.         That it be agreed that the contracts for General Build Housing Repair and Gas Servicing and Repair proceed to Award stage; and

2.         That the Corporate Director of Development and Renewal be authorised to award the contract or contracts, and after consultation with the Assistant Chief Executive (Legal Services) to execute all necessary contract documents.