Agenda item

Simon Kwong, the Director of Property Services presented the Scrutiny Initiation Document (SID) on the review into Major Works carried out in Council Housing. The following points were noted:

·         Members were advised that the review will examine who determines what major works are required, the robustness of construction contracts and schedules of rates; options available to deliver major work projects and the relationship between major and small contractors.

·         The Director of Property Services advised that the review would provide members an opportunity to consider the benefits and disadvantages of the different major works delivery models; how the construction industry operates and the supervision of major contractors.

·         Members will receive a presentation about the Council’s major works programme and oral evidence from possibly two other London boroughs and a construction expert will be giving evidence.

·         A suggestion to include an additional objective was agreed, that the review will focus on achieving quality and value for money was noted.

·         In response to concerns of inviting local contractors and housing associations to participate in the review, Members were reminded that for the Committee to produce a balanced report, views of all stakeholders should be taken on board.  The meeting was informed that considering a housing association is invited to committee to present their performances and work programme,  members will have an opportunity to enquire about how their major works programme is managed.

·         The Chair outlined key principles which should be incorporated into the scrutiny of the Council’s major works. These include,  that the primary focus should be on desired outputs and results; the need to balance quality and cost; transactions to be carried out in an efficient manner; all options in determining the most appropriate solution to be considered; the use of competition to obtain best value; that the procurement processes follow the organisation’s polices and priorities; essential to comply with legislation and regulatory requirements and the need for decisions to be transparent and accountable.

·         The Chair reminded the Director of Property Services of the documentary evidence such as a sample of the contracts and the department’s organisational chart from his officers as it was essential for the review exercise.

·         With regards to promoting an inclusive economy, it was suggested that the committee should consider the Preston as a model local authority which has been cited as ensuring that money is kept within its local economy. The meeting was informed of a similar experience possibly in Sheffield and hoped that lessons could be shared. Members agreed that the issue of apprentices should be taken on board while carrying out the review.

·         Members agreed that although the council does carry out due diligence on most of the major works that are carried out by contractors, it is essential that robust monitoring should be in place and continuous throughout all the stages of the major works and possible penalties to be introduced.

·         The Chair requested that the document titled ‘ Procurement and Project Management be circulated to members and officers for information purposes.

·         The Director of Property advised that in terms of inviting other organisations different from Islington he was not aware at present of any insourcing organisations, however officers would look into this option.

·         On the issue of cost and pricing of contracts, meeting was advised that members will have an opportunity to learn more as a quantity surveyor, an expert will be invited to a meeting of the committee.

RESOLVED:
That the Scrutiny Initiation Document be agreed subject to including the additional objective as noted above.