Report Title: Award of Heating Maintenance and Replacement Contract

Presented by: Councillor Paul McGeary, Cabinet Member for Housing & Property

Cabinet:

Approved, the award of a contract to K & T Heating Services Limited for a period of ten years’ subject to continued good performance, with an option to extend for a further six years to deliver the heating repairs, maintenance and replacements, including low carbon technologies in respect of HRA properties.

Report Title: Award of Heating Maintenance and Replacement Contract

Presented by: Councillor Paul McGeary, Cabinet Member for Housing & Property

Summary:

As part of the Council’s responsibility as a landlord, the Council has a duty to undertake repairs and maintenance works to its HRA housing stock. This report presents to Cabinet details of the tender process undertaken to re-procure this service and seeks approval to award of contract.

The current HRA annual revenue budget for heating works is approximately £1.5m/annum, with a further £2.2m in capital budgets.  The primary purpose of this contract is to allow the necessary statutory compliance works to be carried out, whilst ensuring the Councils Decent Homes standards are met. 

In addition to this, the Council has set a target of 2040 to achieve net zero carbon and for Council homes the replacement of existing gas heating systems will be critical in meeting that target. In order to achieve this, it will be critical for the Council to have the agility to change or adapt its approach, if necessary, and this will only be possible with a long-term strategic partner in place.  Therefore, it has been decided to include initiatives such as low carbon heating systems, photovoltaics and BMS systems within this procurement exercise, to provide maximum flexibility going forward. 

Although there is no contractual commitment to procure these items under this contract, this approach does provide the Council with a degree of flexibility going forward, which will be key as both technology and future carbon reduction policies evolve over the lifetime of the contract.

Monies have been identified within the HRA 30-year business plan and contract spend will be aligned with business priorities and approved budgets on an annual basis

Cabinet:

Approved, the award of a contract to K & T Heating Services Limited for a period of ten years’ subject to continued good performance, with an option to extend for a further six years to deliver the heating repairs, maintenance and replacements, including low carbon technologies in respect of HRA properties.