URL: https://democracy.southend.gov.uk/ieDecisionDetails.aspx?ID=1532

Decision Maker: Cabinet Member for Planning and Housing - Deputy Leader

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The Council has secured £3.47m through the Warm Homes: Social Housing Fund Wave 3 to retrofit three tower blocks by replacing their existing electric storage heaters with ground source heat pumps and a shared ground array. We are now in a position to appoint the main contractor for this work.

Content: The Council has secured £3.47m through the Warm Homes: Social Housing Fund Wave 3 to retrofit three tower blocks by replacing their existing electric storage heaters with ground source heat pumps and a shared ground array. We are now in a position to appoint the main contractor for this work. That the Cabinet Member for Planning and Housing:   1. Approves the award of the Warm Homes Wave 3 works contract to the Kensa Group, to deliver the ground source heat pump project to the Balmoral Estate and delegates to the Executive Director for Environment and Place, authority to finalise details of the contract.   To progress the Warm Homes: Social Housing Fund Wave 3 project by appointing a main contractor based upon the result of the related framework direct award process. To facilitate the installation of up to 231 ground source heat pumps in the three Balmoral tower blocks. To reduce energy bills for council tenants and so reduce the prevalence and impacts of fuel poverty in the city. To support the Council’s ongoing work towards achieving its climate objectives by providing significantly more efficient heating systems. Delivery of the grant is on a rigid timeframe, with grant spend being fixed per year and any unspent grant each year having to be handed back to DESNZ. In addition to the need to progress the project in a timely manner, the project requires a Building Safety Act application to be submitted before starting work inside the buildings, with these routinely taking upwards of 6 months to be decided. Tenders typically take a significant amount of time to complete, so with a need to progress the project quickly, it was decided that framework procurement would be the option sought. However, only three providers were present on the chosen framework, with one provider having a significantly lower score, and of the two higher scores, one provider having since entered administration. Therefore, it was decided that a direct award to the remaining contractor would be the best route for the project and would best allow us to meet the grant funding timelines.   Not to make the award. This would leave the council without a contractor to undertake the required works and needing to return grant funding. This would result in reputational damage to the Council and would damage its ability to deliver on this and future retrofit projects. This in turn would put at risk the council’s ability to deliver on the upcoming 2030 Minimum Energy Efficiency Standards for social housing. Additionally, residents in the Balmoral blocks would not benefit from the expected reduction in their fuel bills resulting from this project.

Date of Decision: November 10, 2025