Southwark Council's Cabinet has approved the awarding of contracts worth an estimated £256 million for heating and water repairs, maintenance, refurbishment, and replacement works across the borough.
The decision, made at a Cabinet meeting on Monday, March 16, 2026, will see eight contracts issued for an initial period of five years, commencing April 5, 2027. These contracts also include an option to extend for a further five years.
Additionally, a multi-supplier, borough-wide Communal Heating Major Works Framework was approved for an initial period of four years, with a potential one-year extension, estimated at a total of £40 million.
The eight contracts cover a range of specific systems, including individual and communal heating and water repairs, maintenance, refurbishment, and replacements. Lot 1 and 2 focus on individual heating and water repairs and maintenance, while Lots 3 and 4 address communal systems. Lot 5 and 6 are dedicated to communal water maintenance, refurbishment, and replacements. Furthermore, Lot 7 will cover repairs and upgrades to Building Energy Management Systems, and Lot 8 will provide temporary boilers. The Communal Heating Major Works Framework will specifically encompass the refurbishment and replacement of heat networks, in part and in full, and will also include individual heating upgrades and replacements.
The estimated combined total value for the eight heating and water contracts is £256 million. This is broken down annually by lot: Lot 1 (Individual Heating and Water Repairs and Maintenance - North) at £4.7m; Lot 2 (Individual Heating and Water Repairs and Maintenance - South) at £4.3m; Lot 3 (Communal Heating and Water Repairs and Maintenance - North) at £3.8m; Lot 4 (Communal Heating and Water Repairs and Maintenance - South) at £4.7m; Lot 5 (Communal Water Maintenance Refurbishment and Replacements - North) at £0.99m; Lot 6 (Communal Water Maintenance Refurbishment and Replacements - South) at £1m; Lot 7 (Building Energy Management Systems Repairs and Upgrades - borough-wide) at £254k; and Lot 8 (Temporary Boilers - borough-wide) at £0.6m.
The rationale behind the geographical division of contract areas for the heating and water repairs, maintenance, refurbishment, and replacement work contracts is to ensure efficient and effective service delivery. The borough has been divided into two areas: the north of the borough
(Bermondsey, Rotherhithe, Walworth and Borough & Bankside) and the south of the borough
(Camberwell Dulwich, Peckham and Nunhead).
The council has also issued a Notice of Intention to leaseholders regarding this procurement, as required by Section 20 of the Landlord and Tenant Act 1985. Leaseholders can provide feedback or raise concerns regarding this notice and the upcoming works.
These contracts are part of the council's commitment to maintaining essential services for its residents and ensuring the safety and efficiency of heating and water systems across its housing stock. For further details on the procurement strategy, refer to the report GW1 Heating Water Procurement Strategy.