Agenda item

This report outlines the procurement of the Public Realm Works Contract with a focus on Climate Change requirements that will form part of the new contract.

Ian Hawthorn (Assistant Director – Highways and Parks) introduced the report which outlined the procurement of the Public Realm Works Contract with a focus on Climate Change requirements that will form part of the new contract. Jamie Orme (Norman Rouke Pryme) presented slides which included new Key Performance Indicators (KPIs) that we be required as part of any Public Realm procurement, these included carbon reduction, waste reused and recycled, waste diverted from landfill and hard to recycle waste diverted. There would also be innovation requirements built into the contract, such as trialling new low carbon technology and sharing best practice. Non-compliance would be dealt with through financial penalties or termination of the contract if it wasn’t corrected within 28 days.

The Chair raised a query regarding the option for contractors, asking what would happen if a variety of contractors didn’t meet the minimum standards. Jamie Orme responded that there was a set of required standards that all contractors were obliged to comply with. He explained that the tender process included a negotiation period, during which bidders who did not initially meet the standards could engage in discussions to improve their standards.

The Chair further asked whether, in light of supply chain issues, there was scope to negotiate upwards and support contractors in reaching the required standards. Jamie Orme noted that in recent years there had been a significant push from contractors to decarbonise, driven in part by local authorities, particularly London Borough of Hammersmith and Fulham (LBHF), which had been instrumental in raising the standards expected of contractors.

The Chair expressed concern about competition with other boroughs, suggesting that LBHF could be undercut. Jamie Orme reassured that LBHF was at the forefront of contractor requirements and had benefited from years of investment by contracting organisations aiming to meet these standards. He stated that LBHF was now in an ideal position to leverage this investment and maintain higher standards than other local authorities.

Councillor Callum Nimmo questioned whether there were mechanisms within contracts to support ongoing improvements towards Net Zero 2030. Jamie Orme explained that contracts included KPIs, monthly monitoring, and procedures for addressing non-compliance. Ian Hawthorn added that contractors were required to report monthly against KPIs and that the industry had progressed significantly in its response to climate change. He noted that all contractors now had climate plans and that the widespread use of asphalt had contributed to flood risk mitigation.

Councillor Callum Nimmo queried how stringent requirements could be balanced with encouraging innovation, given there could be a low appetite for risk as contractors didn’t want to underperform. Jamie Orme responded that contractors were expected to incorporate a degree of risk. He emphasised the willingness of contracting organisations to improve efficiency and innovate. He also noted that LBHF retained control over technical specifications and could, for example, ban certain items if necessary.

Councillor Liam Downer-Sanderson raised concerns that scope 3 emissions had doubled since the climate emergency was declared and asked whether Jamie Orme had been appointed to address this, and what targets were in place to reduce emissions. Jamie Orme replied that contractors were expected to present plans to reduce scope 3 emissions and that reporting requirements would allow the Council to establish baselines and assess bidders’ approaches. Bram Kainth (Executive Director – Place) clarified that Jamie Orme’s role was specifically related to Public Realm procurement. Councillor Liam Downer-Sanderson asked whether a cost analysis had been conducted to determine whether LBHF would need to spend more to achieve higher standards. Bram Kainth responded that decisions regarding materials were made by the local authority.

Councillor Florian Chevoppe-Verdier (Cabinet Member for Public Realm) shared that LBHF had ranked second in the climate emergency scorecard, which assessed how effectively local authorities were acting on climate change and had committed to achieving 25 green flags by 2025, reflecting the biodiversity of its green spaces.

Councillor Liam Downer-Sanderson pointed out that while total emissions had decreased without procurement, emissions associated with procurement had increased, jeopardising the Net Zero 2030 target. Councillor Florian Chevoppe-Verdier added that many existing contracts had been inherited from the previous administration and were not conducive to climate goals. Councillor Liam Downer-Sanderson stressed that the rate of emissions reduction was insufficient and did not account for procurement-related emissions.

The Chair summarised Jamie Orme’s earlier point that new procurement contracts included KPIs, requiring contractors to meet elevated standards. He acknowledged that carbon was embedded in all aspects of procurement but noted efforts to mitigate this as much as possible. He also emphasised that scope 3 emissions were difficult to control and required behavioural change. Jamie Orme acknowledged the potential for increased costs but stated that, having supported several boroughs, he had not observed significant cost increases following tender exercises. He explained that price adjustments were based on industry data.

A resident asked about KPIs for transport and how they aligned with the new transport strategy, and when the strategy consultation would open. Hinesh Mehta (Assistant Director – Climate Change) clarified that the KPIs were separate from the transport strategy and related to operational work. He stated that the strategy was still being drafted, with no confirmed timeline, but that it would align with the Mayor’s transport strategy.

Another resident asked how the public could contribute ideas to the procurement strategy. Bram Kainth explained that new ideas could be discussed during monthly meetings with contractors, who were responsible for delivering the Council’s plan. He noted that price negotiations might be necessary and that no contract was entirely fixed. Councillor Florian Chevoppe-Verdier welcomed public input and encouraged the sharing of ideas.

RESOLVED:

That the Committee noted the report.