URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2632

Decision Maker: Corporate Director of Housing

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The purpose of the decision / report for consideration is to advise the members of CCB/Cabinet of the detail around the `recommendation to extend the Council’s existing Lift Maintenance and refurbishment PMI contract with Guideline Lift Services Ltd for a second term of three years up to 31st March 2028.   The proposed extension will enable service planning and delivery while the service develops and deliver a revised operating model.    The extension will:   -           Ensure that buildings remain operational and safe meeting the requirements of the Building Safety Act (2022) and the Decent Homes Standard,   -           Avoid the need for a protracted tendering exercise which may prolong and delay critical building projects unnecessarily and   -           Mitigate any construction market price uncertainty as a result of the current cost of living pressure  

Content: The purpose of the decision / report for consideration is to advise the members of CCB/Cabinet of the detail around the `recommendation to extend the Council’s existing Lift Maintenance and refurbishment PMI contract with Guideline Lift Services Ltd for a second term of three years up to 31st March 2028.   The proposed extension will enable service planning and delivery while the service develops and deliver a revised operating model.    The extension will:   -           Ensure that buildings remain operational and safe meeting the requirements of the Building Safety Act (2022) and the Decent Homes Standard,   -           Avoid the need for a protracted tendering exercise which may prolong and delay critical building projects unnecessarily and   -           Mitigate any construction market price uncertainty as a result of the current cost of living pressure     For the reasons as detailed in the report the Corporate Director for Housing AGREED to:    approve the contract extension for the delivery of Lift Refurbishment and Servicing Planned Maintenance and Improvement Works with Guideline Lift Services Ltd at an annual value of £1m, up to 31st March 2028 and a total value for the extension period of £3m.     Note that the value of the extension is calculated from 1st April 2025 – 31st April 2028     The Council, as a social landlord, has statutory obligations, and requires the use of the Lift Refurbishment and Servicing term contract, to continue to deliver essential lift refurbishment, servicing and call-out works across the Council’s housing stock. These comprise works to:              ensure property and asset electrical safety and fitness for purpose,                                                        maintain health and safety,                                                                                       maximise viable life expectancy, and                                                                    ensure statutory compliance.                                                                              The recommendation for extension is in line with terms of the original contract award which included extension clauses, as detailed in the award report approved on 19th September 2016, for delivery of the Council’s planned maintenance and improvement works by way of a lead provider contract for an initial term of five years, and then for further extension periods, up to a maximum of 14 years  (5+3+3+1+1+1) at a maximum value of £10.9m.    The proposed extension will enable service planning and delivery while the service develops and deliver a revised operating model.    The extension will:     Ensure that buildings remain operational and safe meeting the requirements of the Building Safety Act (2022) and the Decent Homes Standard,   Avoid the need for a protracted tendering exercise which may prolong and delay critical building projects unnecessarily and  Mitigate any construction market price uncertainty as a result of the current cost of living pressure    The following options were considered with regard to the contract extension:     Do nothing.     Should the Council not enable provision of housing maintenance and repair arrangements, it would be in breach of the Housing Act 2004. Significant risk would be borne by the Council due to lack of strategic supply arrangements available to support the Council’s legal obligations to tenants and leaseholders within the borough. This option has not been recommended.    Bring the service in-house.    The Council does not have the requisite specialist services to deliver lift refurbishment and servicing in-house. In addition, the cost of setup and maintaining an in-house provision would take too long to arrange and have in place within the Council compared to an established outsourced provider who specialise in this service. This option has not been recommended.    Procure a new contract to provide this service.      A new procurement is inevitable, as the contract is limited in duration though spend over the next 3 years would have a balance of £0.323m, which will be insufficient to support a further extension, therefore a sustainable contracting approach must be developed. It is not recommended that a new contract is procured immediately, because there is not enough or sufficient clarity on the integrated long-term strategy for shaping the programme planning assumptions, contract strategy, procurement approach and delivery approach of the major works function. This option has not been recommended.    Extension to the existing contract:     Extension option will offer the council opportunity to engage the market, incorporate identified current gaps into a new specification that meets the changing demand of housing maintenance contracts.  There is ongoing consideration for a future delivery model for the Housing and Improvement Services, that supports investment planning and a signed off Asset strategy, an extension will support continuity of delivery while adequate plan is developed for the future state of delivery. However, in the event the future model comes to be within this extension period, there is opportunity to invoke the 12 months’ notice no-fault termination exit clause, which can be taken up once future delivery model starts to take shape.     This option is recommended.   

Date of Decision: December 17, 2025