LAMBETH TO SPEND £11 MILLION EXTRA ON HOUSING CONSULTANTS (but they’ve no money for libraries)
Lambeth council – which continues to plead poverty and blame the Tory government for a lack of funding – is set to spend more than £11 million extra on revising and renewing housing consultants contracts.
Two separate reports seen by News From Crystal Palace show that in the first, three contracts are extended and varied by the following amounts:
Frankhams LLP: £2,936,489 (up to August 31st this year)
Arcadis LLP (formerly E C Harris): £1,465,693 (up to August 31st this year)
Hunters PLC £876,700 (up to March 31st 20127)
The second report says contract sums for the current financial year to March 31st 2017 should be varied by the following amounts to three other consultants:
John Rowan & Partners: £1,736,350
Baily Garner: £450,000
The report also agrees estimated provisional fees for each supplier – John Rowan & Partner; Pellings; and Baily Garner: £1,000,000 for the 2017/18 financial year. TOTAL: £3 million.
The first report requests that the contracts with Arcadis LLP (formerly EC Harris), Frankhams and Hunters Plc are extended and varied to enable outstanding invoices to be fully processed.
“These consultancies had been procured via the council’s own project management consultancy related frameworks, which had since expired and a waiver was approved for their continued use up to 31 March 2015.
“The value and range of projects commissioned with the consultants had been based on indicative packages and estimated values. “During 2015, it became evident that these values were heavily under-estimated and the values requested in the waiver report was insufficient. “Exemptions were requested mainly for Frankhams and Arcadis in order to deal with the actual costs (as at that time).
“The final account/stage values for consultants: Arcadis, Frankhams and Hunters have now been concluded. No further work has been commissioned since 31 March 2015.
“The reasons for requesting this extension are numerous and can be summarised as:The LHS (Lambeth Housing Standard) projected programme was based on a sample stock condition survey, with projects and spend projected. “The process for estimating value of works has often been under-estimated and that has meant that the requested and approved contract values was insufficient.
“This latest request is to enable the council to meet its obligations of payment for services rendered by these consultants, up to the transition period and handover to the newly procured Lewisham Framework consultants.
“Hunters have one live scheme to complete (Streets Borough-wide) and would need to continue until 31st of March 2017.
“The services proposed to be provided in this report are going to be financed from the LBL (London borough of Lambeth) Lambeth Housing Standard (LHS) capital programme scheduled for 2015/16 and 2016/17.
“A process of transition and handover to the incumbent (Lewisham Framework consultants) has been taking place. “We now need to conclude their services and process payment for all outstanding services completed up to their end dates.
“The Capital Delivery team has since managed a thorough transition of handovers effectively from these consultants to the Lewisham Framework consultants: John Rowan & Partners, Pellings, and Baily Garner. “Whilst consultants procured prior to the Lewisham framework will not be used for further work, we do need to pay for work carried out to date.”
The second report seeks a variation of the contracts with John Rowan & Partners, Pellings and Baily Garner, who were procured via the Lewisham Framework. “These consultants provide a range of multi-disciplinary specialist consultancy and project management, cost/quantity surveying experts who assist with the delivery of the Lambeth Housing Standard (LHS).
“The LHS projected programme was based on a sample stock condition survey which then estimated project costs, spend projections and consultancy fees. “These values were then used to estimate the value of works budgets which has now proven to be under-estimated.
“Varying the contracts is essential, because packages have been agreed and some preparation work has already commenced.
“The services proposed to be provided in this report are going to be financed from the LBL Lambeth Housing Standard (LHS) capital programme scheduled for 2015/16 and 2016/17.
“The proposal is a necessity to allow delivery of LHS capital programme to honour the council’s commitment to investment in its social housing stock.
“Finance (department) recommend that to mitigate risk in relation to future procurement in this area, it is advised that works are clearly programmed and procured accordingly.
“The values for outstanding fees being requested in this report emanate from a range of meetings internally and with consultants across each project in order to understand full project costs.
“Residents have been consulted on some projects already in the form of meetings and having their input in selecting particular items for their homes. “This report should enable those works to proceed.”
Lambeth Housing Standard: Described by Lambeth council as: “a £450 million programme to improve the physical quality of residents’ homes and also help improve residents’ quality of life. “The LHS will make sure all council homes in Lambeth are warm, dry and safe.”