Hackney Council is amending its procurement strategy for the Colville Heat Network project to maintain the project's commercial viability and ensure low heat costs for consumers. The decision was fast-tracked to avoid delays that could negatively impact those commercial requirements.

The Hackney Council's Cabinet Procurement Insourcing Committee convened on Monday 7 July 2025 to discuss a General Exception Notice regarding the Colville Heat Network project. According to the Public reports pack, the meeting agenda included discussion of an Amendment to Procurement Strategy following receipt of bids within the DBOM procurement.

Hackney Town Hall, where the Cabinet Procurement Insourcing Committee meeting took place.
Hackney Town HallSource: General Exception Notices papers, 7 July 2025

The need for this amendment arose after the receipt of bids for the Design Build Operate Maintain (DBOM) Contract. Analysis of these bids indicated that a change to the procurement strategy was necessary to achieve the best value for money and to align with the commercial parameters outlined in the Outline Business Case approved by the Cabinet in June 2024. The potential risks associated with not amending the procurement strategy could jeopardise the project's commercial requirements, specifically maintaining low heat costs for customers.

The Public reports pack states that the bids were received too late to provide the standard 28 days' notice before the committee meeting. However, delaying the decision until the next meeting was deemed unfeasible due to the potential impact on the project's commercial requirements, including maintaining low heat costs for customers. The General Exception Notice - Colville Heat Network Procurement Update explains the reason for the General Exception as follows:

Analysis of the bids for the Design Build Operate Maintain (DBOM) Contract for the Colville Heat Network has shown that a change to the procurement strategy is needed to achieve the best value for money in the project and to deliver within the commercial parameters set out in the Outline Business Case approved at Cabinet in June 2024. The bids were received too late for 28 days notice to be given before the Cabinet Procurement and Insourcing Committee on 7 July 2025 but waiting until the next meeting is not possible if the commercial requirements of the project which include maintaining low heat costs for customers are to be met.

The lead member for this matter was listed as Councillor Young, and the author of the report was named as Jeremy Martin.