Concerns there may be delays to reprocurement process
Southwark council has extended its housing major works framework by two years because of the coronavirus pandemic.
According to a notice published to the Official Journal, the borough has decided to extend the framework – increasing its value by £180m to £930m – in case there are issues with procuring replacements.
The council has reappointed three of the original five contractors to the framework
It said: "Due to the ongoing impacts of covid-19, in the event that there are delays to the new procurement exercise, there is flexibility built in to this modification to enable the existing contractors to assist potential new contractors while they mobilise, particularly if there are different contractors who are new to these areas.
"Should the new contracts be in place sooner than June 2022, these contracts can be terminated in accordance with the termination provision in the contracts unless the need arises that the council needs to issue urgent orders to these contractors to ensure works are delivered across the borough."
Three of the five firms originally appointed to the framework, which covers the refurbishment to both internal and external parts of the buildings and internal communal areas including corridors and staircases, have had their deals extended. They are A&E Elkins, Engie and Saltash Enterprises. Wates and Breyer Group were the other firms originally handed places on the framework in 2010.
Southwark said: "The council has worked with these contractors for 10 years resulting in the contractors understanding the requirements of the council’s extensive and varied stock, health and safety and other requirements, particularly during covid-19 which has had a strain on the construction industry.
"This effective working relationship provides a strong degree of resilience to the council given the uncertainty on how long covid-19 impact will last, a potential second wave of covid-19, the likelihood of the construction industry being under even more strain during the winter period and any delays that could occur in the procurement of the new contracts."
It said the contractors were working with suppliers and subcontractors to prepare them for dealing with covid-19 and that the contract modification is for a period of two years to allow both the council and market capability time to stabilise and recover from the crisis.
The deal covers properties in Borough, Bankside and Walworth, Bermondsey and Rotherhithe, Peckham and Camberwell, Dulwich, Nunhead and Peckham Rye.
Housing major works framework
Apollo Property Services Group
Engie Regeneration (formerly Apollo Property Services)