Agenda item

B Report of Director of Housing (Copy herewith)

Cabinet awarded contract A for the North and Central areas to the Lovell Partnership Limited and that Contract B for the South and East areas was awarded to Frank Haslam Milan and Co Ltd. each contract to be worth £11 million over the next three years, covering 3,600 properties.

Councillor Hawkins referred to paragraph 3.8 of the report and the statement that Eastfield and Thorplands were not included. She commented that as PFI was now no longer available the residents of Eastfield and Thorplands would expect something to be done about their homes. She expressed the hope that Ward Councillors would be involved. If Eastfield and Thorplands were not to be included, an indication of where they fitted into the wider scheme of things would be appreciated.

Councillor Mildren commented that the Council had to act with due probity in mind and referred to Norman Adams address and the list of companies that had attracted the attention of the OFT. In probity terms the Council needed to be assured of the highest standards.

Councillor Clarke commented that his constituents in Spring Boroughs would ask about replacement windows and damp: were they to be placated by comments that others were getting new kitchens and bathrooms? Fundamental issues were not being addressed. The Council was proposing to award part of the contract to a company caught out by the OFT for price fixing. A number of Councils had said that they would not deal with the companies exposed by the OFT, however, the recommendation to the Cabinet was to award part of the contract to a company named by the OFT. Cabinet needed to make a moral judgement.

Councillor Malpas noted that there were very few Council houses in Billing and Little Billing that were included on the list in the report but that the many Council houses in Bellinge were not included. He also noted the many Council houses built on rafts in Standens Barn that now required remedial works that were also not included and enquired when these two areas would be dealt with.

Councillor Beardsworth, as the relevant Portfolio Holder, submitted a report that sought the approval to the appointment of two contractors for Phase II of Decent Homes the total value of the works being £22m over three years. The process had followed the Housing Asset Strategy and had included tenant volunteers who had been trained and given up their own time to be involved. Phase I which had improved 640 homes was nearing completion. Phase II would improve 3,600 homes. Combined this would deal with 25% of the homes needing to be brought up to the Decent Homes standard. Tenants had visited the prospective contractors and spoken to tenants elsewhere who had experience of them and had reached the same conclusions as the Council in respect of whom the contracts should be awarded to. There may be flexibility within the contracts to allow some homes from Bellinge, Blackthorn, Eastfield and Thorplands to be included. It was noted that the contractors would be encouraged to use local labour but this could not be made a requirement.

The Chief Executive noted that Frank Haslam Milan and Co Limited and their parent company, Keepmoat Limited had been investigated by the OFT, but had not been fined. He referred to advice from the OFT and the Government Office for Commerce that the 103 companies investigated by the OFT should not be automatically excluded from the award of contracts and that Councils should consider the award of contracts to them in the context of the works to be undertaken. The advice pointed out that where appropriate companies had been fined and punished by the OFT and that many had co-operated with the OFT investigation and were likely to be more compliant in future. They did expect Councils to evaluate every tender and assess that contractor’s ability to fulfil the contract in question. Cabinet had to have regard to this advice.

Councillor B. Markham commented that the proposal to spend £22m should be welcomed. PFI had been a parallel process originally for Bellinge, Blackthorn, Eastfield and Thorplands. They may be included in Phase II. The points raised about contractors had originated in 2009 and advice had been given as to who should be included. To imply that this project should be delayed, perhaps by up to a year was not sensible.

The Chair commented that he was satisfied that the Council had followed due process  since the first report in February 2009. This decision would not solve all of the Council’s problems but it was a significant step in the right direction. He noted that the problems at Eastfield would not have been solved by PFI alone. 

RESOLVED:   That contract A for the North and Central areas be awarded to the Lovell Partnership Limited and that Contract B for the South and East areas be awarded to Frank Haslam Milan and Co Ltd; each contract to be worth £11 million over the next three years, covering 3,600 properties.