Issue details
THH Major Works Contracts Variations
PDF 320 KBFollowing the expiry of the Decent Homes
Framework, THH procured six contracts on an interim basis to ensure
that the capital works programme could continue to be delivered
pending the procurement of the new Better Neighbourhoods Contractor
and Consultants frameworks. These contracts were procured via an
external public sector framework, the London Construction Programme
(managed by Haringey Council) which was identified as the preferred
procurement route at that time.
However, the original scope of works for these six contracts was
not fully specified and coupled with the implications of post
Grenfell fire safety concerns THH recognised the need to increase
the standard of fire safety in its blocks. This led to an increase
in works and costs resulting in the contracts being over
budget.
Decision type: Key
Reason Key: Expenditure or Savings of over £1 Million;
Decision status: Recommendations Approved
Wards affected: (All Wards);
Notice of proposed decision first published: 27/07/2020
This decision will be taken under urgency procedures.
Reason for urgency:
? Urgent need to regularise and authorise capital expenditure to vary the contracts in line with the additional costs.
? The contracts are in place and operating, THH need the revised contract values approved in order to pay the contractors, failure to do so would render the council being in breach of the contract, and therefore bring the council in disrepute.
? As the contracts are being delivered, failure to honour contractual payment will lead to unfinished works and leave the residents with unfinished works. This will adversely affect residents’ expectations/satisfaction and the image of the Council
? The next Cabinet in in September 2020.
Anticipated restriction: Fully exempt (the whole report will be exempt) - View reasons
Explanation of anticipated restriction:
The content of this report presents the Council with the real prospect of receipt of potential procurement claim(s) from the other parties on the LCP framework.
Regulation 72 allows amendments to a contract up to a maximum of 50% of the original contract value. Where there have been a number of variations this assessment is calculated upon the basis of the cumulative value of the variations. The valuations for each contract, in this instance, exceed this level. The variations therefore are not variations for the purposes of procurement law. They constitute new awards which fall below the full competition requirements. The varied terms of the contracts should have been extended to all framework parties who were ultimately denied that opportunity.
Therefore, the public interest in knowing the information in the report is significantly outweighed by the public interest in maintaining the exemption due to the highly anticipated detriment to the public purse in the event the d
Decision due: 29 Jul 20 by Cabinet
Lead member: Cabinet Member for Community Safety
Lead director: Corporate Director, Place
Department: Place
Contact: Rupert Brandon, Interim Head of Housing Supply Email: rupert.brandon@towerhamlets.gov.uk.
Consultation process
The work has been fully consulted with the
residents of the blocks, who have been invited to pre-work
inspections and invited to make comment of the work. During the
scheme many of the blocks have had resident steering groups and
regular updates have been provided during the cause of the scheme.
The Statutory S20 consultation has been completed.
Consultees
Residents, Consultants, the Mayor, LBTH
Client, Legal, Procurement, Lead Member, Corporate Director,
Place
Has an Equality Analysis been carried out and if so the result of this Assessment?: N/A contracts already in place and being delivered.
What supporting documents or other information will be available?: None
Decisions
- 31/07/2020 - THH Major Works Contracts Variations
Agenda items
- 29/07/2020 - Cabinet THH Major Works Contracts Variations 29/07/2020
Documents
- Major Works Contracts Variations