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City council contracts go to tender
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| Sunday 3rd October 2010 |
Temporary contracts for housing repairs and maintenance and other services previously provided by Connaught are to be put out to tender to ensure the authority does not face a legal challenge.
These will run for between nine and 12 months and we expect the contracts to be up and running by the end of November. In the meantime, services will continue to be provided through the emergency contracts already in place.
Last week a contractor reached an agreement in principle with the council to have the housing repairs and maintenance contract transferred to it. This could only be done at the same base price and contractual terms and conditions.
This deal would have got the vast majority of former Connaught workers back to work and ensured a long-term solution for the provision of these services for tenants and residents.
The company concerned had agreed to 'ring-fence' the jobs to give those made redundant the first opportunity to apply and it would have taken on the contract for the remainder of its life (about four-and-a-half-years) with the option of it being extended for a further five years, assuming good performance.
However, we have today received final legal advice from a QC, who is an expert in the field, which warns of the significant risk of a legal challenge if we were to transfer the housing repairs and maintenance contract without going to tender.
The council is also aware of at least two contractors which may have challenged the process - risking expensive legal costs and possible disruption to vital services.
We are very disappointed that legal constraints have prevented our preferred option going ahead and are extremely grateful to the unions for their support during these lengthy negotiations.
At a council-organised advice forum at Blackfriars' Hall, the names and contact details of 250 former Connaught workers were taken so they can be passed on to any future contractors with their agreement. The council will continue to do everything it can to see as many of these workers re-employed through the letting of temporary contracts.
Councillor Alan Waters, cabinet member for corporate resources and governance and chair of the contracts working party, said: "This is hugely frustrating for us because the money is there to improve tenants' homes, the work is there and the workforce is ready to do it, but we cannot go ahead with a common sense solution. We simply want to let these important contracts and get as many of the ex-Connaught workers back into work as soon as possible.
"We always knew we would need to be cautious, but the risk has now escalated and we are aware of at least two companies that may have launched a legal challenge had this transfer gone ahead. Top-level legal advice received today makes it clear that we must invite the market to bid for these contracts or face substantial risk and cost.
"This casts doubt over contracts transferred outside Connaught by other councils working with the administrator and demonstrates just how much public bodies are restricted by existing procurement regulations. We will be calling on our MPs to help the city and lobby the government for changes to this law."
Councillor Brenda Arthur, cabinet member for housing and adult services, said: "There has been virtually no disruption to the service, no increase in calls to our customer contact centre, and tenants have been giving us the support and space to get on with this work.
"A local firm has been contracted to continue the window programme and is on track to deliver and the gas serving programme is going ahead well. We have also had 1,171 repairs undertaken, with 97 per cent of them on time, between the temporary contracts being let and Monday this week."
Geoff Lowe, chair of Norwich Tenants' CityWide Board, said: "This deal would have saved a lot of time and money and got people back to work. Unfortunately, because of local government procurement regulations this is the only way to do it.
"We can't risk legal action and the most important things are carrying on with the services and getting people back to work."
Nigel Browne, vice-chair of Norwich Tenants' CityWide Board and Catton Grove Tenants' and Residents' Association, said: "From a CityWide Board point of view, we have been kept informed about what is going on at all times and we can't fault the process.
"On the ground we are seeing Lovell out doing the emergency work and we know City Hall staff are looking at the jobs that need doing so that people aren't let down." |
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