Agenda item

To award a contract to undertake the refurbishment of Darley House and the surrounding low-rise blocks of flats at Wallace Close, Oldbury to continue the substantial investment in the Council’s housing stock.

Approval was sought to award a contract for the refurbishment of Darley House and surrounding low rise flats at Wallace Close, Oldbury to Lovell Partnerships Limited, for the sum of £20,531,855, for a period of 34 months, from January 2022 to November 2024.

The contract would be to undertake the Refurbishment of Darley House and the surrounding low-rise blocks of flats at Wallace Close, Oldbury to continue the substantial investment in the Council’s housing stock. The contracted works would deliver an upgrade to the 1 x 19 storey block of flats, 2 x 3 storey blocks of flats, 3 x 2 storey blocks of flats. 3 new units of social housing would also be created by converting the current ground floor of Darley House.

The Cabinet Member for Community Safety commented that inclusion of heat pumps within the refurbishment works was a positive development given discussions around climate change. Another positive was that 100% of the workforce for the refurbishment would come from within 25 miles of Sandwell and 45% from within the Borough of Sandwell itself. The Cabinet Member for Housing responded that the addition of sprinklers was also included within the refurbishment works, which accounted for a significant part of the cost of the works, and  would provide much needed safety for the residents of these blocks .

Reasons for Decision

In accordance with the Council’s Procurement and Contract Procedure Rules (Rule 15) an exemption from any rule for a contract above £250,000 must be approved by Cabinet.

Officers had reviewed the submitted tender document from Lovell Partnerships Limited and had concluded that the majority of the submission was in line with current similar submissions for similar works and coupled with feedback that officers received from the industry with regards to current price rises.

The work would comprise new pitched roof to Darley House, new entrance porches, replacement windows, replacement front doors and balcony doors, fire precaution works, rainscreen cladding, mechanical and electrical service installations including the installation of a district heat pump system, hard and soft landscaping and contractor designed work.

A district heat pump system had been incorporated into the works as part of the Council’s focus on climate change and would contribute to the current built environment action plan contained within the Council’s Climate Change Strategy 2020-2041.

Alternative Options

The alternative was to not invest in our Council Housing Stock which in turn might lead to dissatisfaction from existing and potential new tenants as well as disrepair and additional burden on the Housing Revenue Account.

It was felt that owing to the current uncertainty around material prices within the industry, the tender of Lovell Partnerships Limited provided the best value option and outweighed the cost of re-tendering, which would create the risk of receiving higher bids.

Agreed:-

(1)          that approval be given to authorise the Director of Housing to award a contract for the refurbishment of Darley House and surrounding low rise flats at Wallace Close, Oldbury to Lovell Partnerships Limited, for the sum of £20,531,855, for a period of 34 months, from January 2022 to November 2024;

(2)          that the Director of Law and Governance and Monitoring Officer be authorised to enter into appropriate contract for the Refurbishment of Darley House and surrounding low rise flats at Wallace Close, Oldbury with Lovell Partnerships Limited;

(3)          that any necessary exemptions be made to the Council’s Procurement and Contract Procedure Rules to enable the course of action referred to in (1) above to proceed.