Item 16 - Building Services Update
West Dunbartonshire Council · 20 November 2024
Back to Housing & Communities Committee — 20 November 2024 and its agenda
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ITEM 16 WEST DUNBARTONSHIRE COUNCIL Report by the Chief officer Housing and Employability Housing and Communities Committee: 20 November 2024 Subject: Building Services Update 1. Purpose 1.1 The Purpose of this report is to advise Committee of changes to Building Services establishment and delivery model and seek approval to continue with procurement and tender processes. 2. Recommendations 2.1 It is recommended that Members: i. note the contents of this report. ii. approve the procurement processes to tender the requirements listed within the table in section 4.6 of this report; and iii. delegate authority to the Chief Officer of Regulatory and Regeneration to award contracts to successful bidders 3. Background 3.1 Changes to the structure and delivery model of Building Services have been implemented over the last two years and we are now in a position to implement further improvements. 3.2 A report was presented to the Strategic Review and Renewal Group on 17 October 2024 seeking approval to implement the phase 3 of the Review of Building Services. This included the externalisation of the reroofing programme and the resizing of the painter establishment resource both of which were approved. 3.3 Good progress continues to be made in contracting to ensure full compliance with Council Standing Orders, Council Financial Regulations and all Procurement Regulation. 4. Main Issues 4.1 Over the last two years, significant and unprecedented pressure on the HRA budget has emerged, and HRA costs in both revenue and capital budgets must be reviewed for Best Value.
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4.2 Building Services has delivered the Council’s capital funded reroofing programme for over 15 years. Despite improvements in efficiencies and productivity, continuing to deliver the programme in-house is not economically viable when compared to costs of external contractors, which are substantially cheaper. 4.3 Very few tenants only blocks requiring new roofs remain and owners in mixed tenure blocks seek the cheapest option possible. Obtaining owner buy-in is proving difficult given these cost issues, which in turn delays improvements in living conditions for our tenants in these blocks. 4.4 Officers are progressing with arrangements to externalise the Housing Capital funded reroofing programme. 4.5 Changes in the way empty homes are repaired to the Council’s relet standard have also resulted in a significant reduction in the amount of painter work which is carried out in void properties. This has resulted in having more painters than there is work for, and consequently there is a requirement to reduce the size of the painter establishment by 6. 4.6 For Supply and Delivery of Building Materials, the following contracts will be required to deliver a comprehensive repairs and maintenance service for a period of up to four years from the date of let. They will be of sufficient size, scope and duration to cover the estimated volume of work for the period in question and will be awarded to suitably qualified and competent suppliers and contractors. A review of the historic spend on the previous versions of these contracts and estimated volumes of known and expected works has taken place, costs identified are expected to have increased over the intervening period and projected costs are set out in the table below Requirement Total Estimated Annual Value Funded By HRA Revenue / Capital and CRA Priority Supply and delivery of Building materials and building sundries including: • Timber • Paint • Plumbing and heating Materials • Electrical Materials • Trade Materials • Building and roofing • Ironmongery • Tools £4.5m Revenue / Capital High
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4.7 All procurement activity carried out by the Council in excess of £50,000 is subject to a contract strategy. The strategy for the contracts as listed in the table at 4.2 will include but may not be limited to; contract scope, service forward plan, the market, procurement model and routes – including existing delivery vehicles, roles and responsibilities, risks, issues and opportunities and on-going contract management. 4.8 This procurement exercise will be conducted in accordance with the Corporate Procurement Unit in close consultation with Building Services officers and the provisions of Contract Standing Orders, the Financial Regulations and relevant Public Procurement Regulations. 4.9 The route to market will be to conduct a number of tenders calling off from the Scotland Excel Construction Materials (1422) The use of an e- Auction maximises commercial advantages and increases the opportunities for savings. The use of E-Auctions will provide transparency to all parties and allows the suppliers multiple opportunities to bid. 5. People Implications 5.1 18 craft team members work on the reroofing programme and at this stage we are estimating a transfer of 10 with the remainder accommodated within other workstreams in the service. 5.2 As noted in 4.5, we are estimating a reduction of 6 posts from the painter establishment of 20. 5.2 The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) implications are applicable in terms of the externalisation of the Councils’ capital funded reroofing programme. 5.3 Further communication and consultation will be carried out with Building Services workforce and Trade Unions. 5.4 Progressing these changes to Building Services establishment and delivery models and procurement processes will require significant Officer time resource from Building Services, Consultancy Services, Housing Operations, Legal and Corporate Procurement teams. 6. Financial Implications 6.1 It is too early to provide exact financial information as a result of changes to the structure and delivery model of Building Services at this stage. However, these will result in lower staff costs, lower reroofing programme costs and less housing capital expenditure resulting in marginally lower interest payments in future. 6.2 Costs of the support contracts will be funded by both Capital and Revenue budgets through the Housing Revenue Account, Central
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Repairs Account and Housing Maintenance Trading Account. 6.2 Costs of contracts listed under 4.6 are included within existing budgets. 7. Risk Analysis 7.1 There are significant financial, operational and reputational risks facing Housing and Building Services, and to the HRA in the coming period if changes to Building Services establishment and delivery model are not implemented. 7.2 These changes will form part of actions in addressing the financial challenges in the HRA budget in future years. 7.3 On-going investment, in-line with business plans, will allow the Council to meet its landlord duties, health and safety obligations and quality standards, whilst providing appropriate asset management. 7.2 Procurement related risks and mitigation/management measures will be identified as part of the development of tendering strategies for the individual requirements. 8. Equalities Impact Assessment (EIA) 8.1 An Equalities Impact Assessment or screening as appropriate will be carried out. 9. Strategic Assessment 9.1 This report forms part of the financial governance of the HRA and contributes to the Council’s Strategic Priorities and in particular towards: i. improving local housing and environmentally sustainable infrastructure; and ii. improving the wellbeing of communities. 10. Consultation 10.1 Finance and Legal and Chiel Legal Officer have been consulted regarding the changes to Building Services establishment and delivery model and the setup of the contracts referred to in this report. 10.2 The Corporate Procurement team have been consulted in the development of this report. They will provide assistance and professional guidance with the administration Pofettheer Bteanrdreyr exercises. Chief Officer Housing & Employability Date: 30 October 2024 Page
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Persons to Contact: Martin Feeney – Building Services Manager, Cochno Street, Clydebank, Telephone: 01389 738200, e-mail: mfeeney@west-dunbarton.gov.uk Appendices: Nil Background Papers: Nil Wards Affected: All