DDP047 - Provision of Development and Management Agent for Council Housebuilding Programme

Contracts

• Provision of Development and Management Agent for Council Housebuilding Programme · Nottingham Community Housing Association

  Signed

  30 Nov 2020

  Value

  £1,581,343

  Status

  active

  • Change Since contract award, the Council's housing programme has expanded beyond the assumptions that informed the original contract. Additional properties have been acquired and developed through various delivery routes, including acquisitions, Section 106 opportunities, Local Authority Housing Fund schemes and land-led developments. As a result, the volume of properties requiring development and management services has increased and is expected to continue to increase during the remaining contract term. NCHA is already responsible for providing development and housing management services across the Council's housing portfolio and has established the operational systems, processes, tenant management arrangements and reporting mechanisms necessary to deliver these services. Appointing an alternative provider for the additional requirements would create significant operational complexity, require duplication of systems and management arrangements, and increase costs to the Council. It may also adversely affect service continuity for tenants and the efficient delivery of the housing programme. The proposed modifications include: • Revised contract value of £1,581,342.66 (excluding VAT and indexation) which represents an increase of 49.999% against the original contract value of £1,054,228.44 (excluding VAT and indexation). • Increasing the maximum number of properties covered by the arrangement from 52 to 65. • Revising management and development fee arrangements to reflect the increased scope of services and future growth of the housing programme. • Introducing clearer provisions in relation to fee reviews, notification periods, rental income calculations and performance reporting. • Updating the schedule of properties and related contractual provisions to reflect the current and anticipated housing stock managed under the arrangement. The principal legal basis for the modification is Regulation 72(1)(b), being additional services that have become necessary and where a change of contractor would cause significant inconvenience and substantial duplication of costs. To the extent that certain proposed amendments relate solely to performance reporting, payment mechanisms, drafting clarification and administrative processes, these are additionally considered non-substantial modifications for the purposes of Regulation 72(1)(e). The proposed increase in contract value is assessed as being permissible under Regulation 72(1)(b) of the Public Contracts Regulations 2015. The additional services have become necessary during the contract term and are closely connected to the services already being delivered by NCHA. A change of contractor would result in significant inconvenience and substantial duplication of costs for the Council. NCHA has established management systems, tenancy arrangements, compliance records, financial reporting mechanisms and property management processes specific to the Council's housing portfolio. Appointing an alternative provider would require migration of operational data, re-establishment of tenant management arrangements and duplication of mobilisation costs, resulting in significant inconvenience and substantial additional cost to the Council. The increase in value does not exceed 50% of the value of the original contract and therefore falls within the scope of the permitted modification provisions. The modifications do not alter the fundamental nature of the contract. The services remain development and housing management services for Council-owned affordable housing. The proposed changes are intended to ensure that the contractual arrangements remain fit for purpose, provide greater clarity for both parties and support the effective delivery and management of the Council's expanding housing stock., Need for additional works, services or supplies by the original contractor/concessionaire: NCHA is already responsible for providing development and housing management services across the Council's housing portfolio and has established the operational systems, processes, tenant management arrangements and reporting mechanisms necessary to deliver these services. Appointing an alternative provider for the additional requirements would create significant operational complexity, require duplication of systems and management arrangements, and increase costs to the Council. It may also adversely affect service continuity for tenants and the efficient delivery of the housing programme. The Council is currently progressing through the Local Government Reorganisation process. During this period of organisational transition, it is essential that the Council maintains robust contractual arrangements for the management and delivery of its housing programme. The proposed modification provides certainty and continuity in respect of housing management, development and performance monitoring arrangements, ensuring that services continue to operate effectively while future governance arrangements and delivery model are determined. The modification also provides a clear contractual framework which can be inherited and managed by any successor authority should reorganisation proceed.

Dispute resolution & review bodies

• Derbyshire County CouncilReview contact point MatlockContact emailShow contact details