The Cabinet has decided to delegate authority for the procurement of contracts for housing maintenance and building safety services in Sandwell.

URL: https://sandwell.moderngov.co.uk/ieDecisionDetails.aspx?ID=1194

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The report seeks cabinet approval to award essential contracts in relation to the repair and maintenance of the council housing stock.

Content: Reasons for Recommendations A strategic review of Housing Revenue Account Asset Management contracts had identified several contracts approaching expiry during 2026/27. The Council was required to ensure that suitable contractual arrangements remained in place to maintain service continuity, deliver statutory compliance obligations and provide value for money in the management of approximately 28,000 homes and associated housing assets.   The review had also identified the need to procure additional contracts to provide specialist support to deliver the requirements of the Building Safety Act and support the Council in meeting its statutory landlord obligations, regulatory requirements and the expectations of the Regulator of Social Housing.   The range of contracts seeking delegated authority to procure would replace existing contracts and, where appropriate, aggregate requirements into larger strategic arrangements designed to improve value for money, strengthen supply chain resilience and reduce contract management complexity. The strategic approach to reducing the number of contracts into higher value, longer term contracts would ensure local supply chain of materials and skills were tied into Sandwell contracts and this in turn would increase the viability of contractor support due to the stable financial commitment.   Given the scale, value and programme of procurement activity required, delegated authority would enable procurement exercises to be completed in a timely manner, avoiding contract expiry risk whilst ensuring compliance with the Procurement Act 2023 and the Council's constitutional governance arrangements.   The proposed contractual arrangements would support delivery of the Council's housing priorities by ensuring homes remain safe, compliant, well maintained and fit for purpose, maintaining regulatory compliance, supporting delivery of building safety obligations and protecting both residents and housing assets.   Alternative Options Considered Option 1 – Not re-procure expiring contracts for the identified works. This would mean that ‘ad hoc’ arrangements would be required to maintain the Councils housing stock to the required Decent Homes Standards, Consumer Standards prescribed and directed by the Regulator for Social Housing including meeting the Consumer Standards, and all regulatory requirements under the Social Housing (Regulation) Act 2023, The Housing and Regeneration Act 2008 and the Homes (Fitness for Human Habitation) Act 2018. This could lead to dissatisfaction amongst tenants, disrepair to housing stock, and potential sanctions or further regulatory downgrading from the Regulator of Social Housing. This option was not progressed.   Option 2 – only use in-house provision. Current in-house provision did not have the capacity to maintain the pace of demand or the specialist technical provision to carry out all the specialist works. Therefore, support from external contractors was required to effectively and compliantly manage all the requirements of the service. Failure to procure the relevant contracts would impact on delivering against the Asset Management and Compliance Strategy potentially leaving housing unsafe, or residents and workers at risk. This option was not progressed.   Option 3 – Spot purchasing outside of a contract agreement. Purchasing outside of contractual agreement would increase costs and add cost uncertainty. Also purchasing the types of works required at the estimated values would not be compliant to the Councils current Contracts and Procurement Procedure Rules and could result in works being purchased that did not comply to stringent controls that were applied during a compliant procurement of works. This option was not progressed.   Resolved:-   (1)  that delegated authority is given to the Executive Director of Place, in consultation with the Executive Director of Finance and Transformation, to prepare tender documentation, conduct a compliant procurement process and award contracts for:   a.    Delivery of repairs and Maintenance Services; and b.    supply of Building Materials; and c.     Delivery of Voids Repairs and Post Tenancy Repairs Services; and d.    Delivery and assurance of Building Safety and Compliance Services, including High Risk Residential Blocks; and e.    Servicing and Repairs to Lifts.   to the most advantageous tender(s) in accordance with the Procurement Act 2023, the Procurement Regulations 2024 and the Council’s Contracts and Procurement Procedure Rules within the approved budget envelope and in accordance with the Council’s capital and revenue governance arrangements in relation to the repairs and maintenance operations within Asset Management.   (2)  that delegated authority is given to the Monitoring Officer, Service Director - Governance to complete, execute, seal and take all actions necessary to give effect to the decisions contained within the report submitted.  

Date of Decision: July 15, 2026