URL: https://democracy.southend.gov.uk/ieDecisionDetails.aspx?ID=1535

Decision Maker: Cabinet Member for Finance, Assets and Public Transport

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: The approval of the commencement of a compliant procurement process to procure a 36-month contract, for the provision of property buildings insurance for leasehold properties managed by South Essex Homes; and   To delegate authority to the Director of Financial Services, to award the contract in accordance with the outcome of the procurement exercise and take all necessary steps to facilitate the implementation of that contract.  

Content: The approval of the commencement of a compliant procurement process to procure a 36-month contract, for the provision of property buildings insurance for leasehold properties managed by South Essex Homes; and   To delegate authority to the Director of Financial Services, to award the contract in accordance with the outcome of the procurement exercise and take all necessary steps to facilitate the implementation of that contract.   1. That the commencement of a compliant procurement process to procure a 36-month contract, for the provision of property buildings insurance for leasehold properties managed by South Essex Homes be approved.   2. That authority be delegated to the Director of Financial Services, to award the contract in accordance with the outcome of the procurement exercise and take all necessary steps to facilitate the implementation of that contract. 1. The insurance is required to create a financial risk control mechanism to protect the value and integrity of the buildings owned by Southend on Sea City Council and leased back to various leaseholders.   2. This contract provides property insurance to the leaseholders of South Essex Homes.  If this was not procured then the Council and South Essex Homes would have to fund any damage sustained to the buildings. The market of insurers has reduced in recent years. Homes. Only one insurer will be appointed.    3. The procurement process is required to identify, and award a contract to, a preferred bidder to provide the required Property Buildings Insurance.   4. The procurement process will be run on behalf of the Council by through a Dynamic Purchasing System, with additional guidance from the Council’s own Corporate Procurement Team if required.    5. Additional time is required after the potential award of the resulting contract to allow SEH to consult and notify their leaseholders on the policy details and costs of the related insurance. The Cabinet member could decide not to approach the insurance market for a new property housing leasehold insurance.  However, this would mean that after the current years’ insurance policy expires, the Council would be financially responsible to meet any and all losses arising from unforeseen events. This would include but not be limited to fires, floods and other events outside the council’s control to cover and protect leaseholders by paying for the associated claims. This option is accordingly not recommended.

Date of Decision: December 5, 2025