Haringey Council is extending contracts with four suppliers to tackle a backlog of disrepair cases in its social housing stock and mitigate potential financial risks. The decision, made at a Cabinet Member Signing meeting on Thursday, aims to maintain the current rate of repairs, reduce legal costs, and ensure continuity of service while longer-term contracts are procured.
The council will extend contracts with DCK Construction Limited, ICB General Build and Civil Eng Ltd, Foster Property Maintenance Ltd and Milestone South East Ltd. The extensions, approved by Councillor Sarah Williams, will allow the council to continue addressing disrepair claims while it procures longer-term contracts, expected to be completed by Q4, according to the Disrepair Contract - Extension Report.
The contracts commenced on 4 November 2024 and are set to expire on 4 November 2025, with an option to extend for one year until 4 November 2026. The original contracts, each worth up to £499,999, were set to expire on 4 November 2025, according to the Public Reports Pack. The extensions will allow the service to put in place suitable medium to long term contracts, following a procurement exercise expected to be completed by Q4, to prevent service delivery and financial risks associated with failure to complete work at an adequate scale and frequency. The contracts address a backlog of disrepair cases within the borough, where the council maintains a social housing stock subject to legal claims for disrepair.
The council considered several alternative options, including allowing the contracts to expire, utilising the Direct Labour Organisation (DLO), and procuring new contracts immediately. However, these were rejected due to concerns about disrupting ongoing legal cases, the DLO's existing workload, and the time required for new contractors to become familiar with the council's procedures.
The Disrepair Contract - Extension Report included in the Public Reports Pack stated that maintaining a high rate of repair completion in disrepair cases is essential to reducing legal costs. The report also notes that failure to extend the contracts would prevent service delivery and create financial risks associated with failure to complete work at an adequate scale and frequency, potentially leading to mounting legal costs and stalled case closures.
The council also agreed to exclude the press and public from a portion of the meeting to discuss exempt information related to the financial and business affairs of the contractors, as well as information subject to legal professional privilege.