Decision details

This report seeks approval for a variation of the previously agreed procurement strategy (Appendix A) for housing lift modernisation programme to allow for the retendering of the remaining two Lots to complete the modernisation of housing’s passenger lifts.

The reasons for the variation of the original strategy and therefore the retendering of the two ‘Lots’ are:

The initial procurement resulted in both tenderers failing to meet the council’s 10% social value requirement and as a result, no contract was awarded.

Inflationary cost increases are likely to impact the original tendered values and therefore the sum is now likely to be much higher. The initial values for Lots 1 and 2 were £715,000 and £691,200 respectively.

Lot 1 - Lift Modernisation of Lytton Estates (Pelham house, Glenallan house and Mortimer House) at a cost of £900,000.

Lot 2 - Lift Modernisation of Various Fulham Sites (Pearscroft Court, Seagrave Lodge, Wheatsheaf Wharf and Rainville Court) at a cost of £900,000.

The works to the 10 lifts contained within the two lots will complete the modernisation programme of the entirety of H&F housing’s 213 passenger lifts, which commenced in 2010. The works need to be undertaken as major components of the existing equipment are obsolete having reached their economical usable life span of 25 years. This  results in an unacceptable service level for residents with increasingly frequent lift breakdowns. The upgrade will incorporate the latest technical components ensuring a longer life span and reliability for residents within the blocks.

This report has been approved by Contracts Assurance Board on 18 October 2023 and the recommendations have the support of the Departmental Management Team including the Director of Housing and the Assistant Director, Residents and Building Safety.

1.    Approve a variation in the original procurement strategy for ‘house lift modernisation programme’ to allow for the retendering of 2 lots.

2.    Approve the retendering of 2 lots from the initial Procurement Strategy via an Open Tender. The value of the 2 lots is estimated to be £1.8million.

This report seeks approval for a variation of the previously agreed procurement strategy for housing lift modernisation programme to allow for the retendering of 2 Lots via an Open Tender.

The reasons for the variation of the original strategy and therefore the retendering of the two ‘Lots’ are as follows:

The initial procurement resulted in both tenderers failure to meet the council’s 10% social value requirement and as a result, no contract was awarded on Lots 1 and 2.

There has been increase in costs over the years due to inflation. These changes are likely to impact the initial tendered values and therefore the sum approved in the original report is now likely to be much higher. The initial values for Lots 1 and 2 were £715,000 and £691,200 respectively.

As described in the report.