Report Combined Services Committee 16 August 2005 4- ARCHITECTURAL AND ENGINEERING DESIGN SERVICES - AIDS AND ADAPTIONS AND THE PROVISION OF MEASURED TERM CONTRACT

1. Reason for Report To update Members on the progress being made to improve delivery times and costs for the provision of aids for the regions Care and Repair Service.

2. Background 2.1 The February 2005 Adult Services Committee agreed to recommend to Planning and Environment Services Committee a change in the procurement and management arrangements to deliver the adaptations element of the local care and repair service Appendix 1.

2.2 recommendations to change the procurement arrangements to a Measured Term Contract together with increasing the staffing levels within Care and Repair. Appendix 2.

The April 2005 Planning and Environment Services Committee approved the

3. Measured Term Contract 3.1 procurement arrangement was time consuming, expensive and slow due to the fact that each project, some 250 per year, had to be tendered separately. Also, in the current commercial climate Contractors were frequently unable to tender as they were fully committed elsewhere.

As reported to the February 2005 Adult Services Committee the previous

3.2 the Aids and Adaptation work on a multi-trade measured Term Contract and a Secondary Contractor will be appointed as a back up if the Primary Contractor is unable to deliver on particular projects.

The new procurement process ensures that a Primary Contractor will carry out

3.3 The Measured Term Contract for Aids and Adaptations stipulates that the Contractor must abide by the Customer Care Policy of Dumfries and Galloway Council Aids and Adaptation Service and stipulates detailed service standards and timescales expected of the contractor. Failure to adhere to such standards and timescales will incur specified penalties to the Contractor.

3.4 The works for Aids and Adaptations up to 3Ist March 2006 were competitively tendered and the successful tenderer was Combined Services. 3 other tenders were received from private sector contractors..

3.5 Although the term of this contract is only until 3Ist March 2006 there is a mechanism within the contract whereby an extension of a further two years can be negotiated subject to the successful delivery of the projects up until 3Ist March 2006 and the award of funding for future financial years.

Report Combined Services Committee 16 August 2005

4. Consultation The Corporate Directors for Corporate Services, Education and Community Services and Planning and Environment have been consulted in the preparation of this report.

- 4

5. Recommendations Members are asked to:-

5.1. note the progress made with respect to the delivery of Aids and Adaptations within Dumfries and Galloway; and

5.2 note the successful tender submitted by Combined Services in competition with the private sector.

Bill Harrow Harry Thomson Operations Manager Architectural & Engineering Design Services Head Office

Tel: 01 387 259934

Date of Report: 14 July 2005

Group Manager - Business Combined Services

Marchmount House Marchmount Avenue D u mfries DGI 1PY

Tel: 01387 259934 File Ref:

Appendices I - 3

12th July, 2005

RDR/KT/05/22

Architectural Services Dumfries & Galloway Council Marchmount House Marchmount Avenue Dumfries DG1 1PY

For the attention of Alan Hewitt

Dear Sirs,

Measured Term Contract for Aids & Adaptations For Work Orders to 31" March 2006 Tender Report

Introduction and Contract Basis of Tenders

The tenders submitted for the Several Works at the above and the names of the Contractors invited to tender are listed on the attached Tender Analysis along with the amounts of their tender percentages and labour rates.

The tenders are based on The Conditions of the Scottish Measured Term Contract (January 2004 Revision).

The tenders are on a Fixed Price Basis, are exclusive of VAT and remain open for acceptance until 6th October, 2005. The date of commencement is to be mutually agreed and the date of completion is stated as 'works orders up to 3 lSt March 2006'. The time limits for typical works orders and associated liquidate and ascertained damages are as stated in Section 1 Clause 6 of the tender document (copy attached).

- 2 -

Comparison of Tenders and Budget

Tenders were sought on the basis of a single percentage adjustment of the National Schedule of Rates 2004 - 2005. Additional percentages were tendered for profit and overhead on materials, plant, sub contractors and non productive overtime, and all in rates for daywork for main trades. These rates and percentages were applied to the overall annual spend budget of 2527,000 which was broken down into NSR remeasurement, daywork hours and price costs of materials etc in order to convert each tenderer’s rates and prices to an equivalent lump sum value. The results of this exercise are shown on the attached tender analysis and show that the tender order is:

Prime Contract:

1. Combined Services Group 2. Atlas Maintenance (Scotland) Ltd 3. PPM 4. Thomson Construction Ltd

No Prime Contract tenders were submitted by:

Border Construction Mowlem Technical Services

Secondary Contract:

1. Combined Services Group 2. Atlas Maintenance (Scotland) Ltd 3. Thomson Construction Ltd

No Secondary Contract tenders were submitted by:

Border Construction Mowlem Technical Services PPM

Comments on Tenders Received

A sensitivity analysis shows that variations to weighting given to the elements of the budget do not alter the order of the tenders.

Atlas submitted as alternative tender providing a stepped percentage for different order values ranging from +lo% for orders under 2500 to 0% adjustment for orders over E1 0,000 (1 2% and 4% respectively on the Secondary tender). The adoption of this pricing structure would be administratively difficult and would not alter the order of the tenders.

4 - 3 -

Recommendation

Prime Contract: The tender submitted by Combined Services Group is the lowest and, subject to the conditions stated below, is considered to be fair and reasonable and fit for acceptance.

Secondary Contract: The lowest tender for the secondary contract was submitted by Combined Services Group and is not available for consideration if they are the successful Prime Contract Tenderer. The lowest tender available for consideration is that submitted by Atlas. Their alternative tender is likely to prove the most cost competitive but the anticipated level of orders to the secondary contractor and the administrative difficulties which need to be overcome will, in our opinion, make their compliant tender the more suitable for the purpose and we recommend it as fair and reasonable and fit for acceptance subject to the same conditions stated below.

Suggested Conditions for Acceptance

1. Approved List: That the records submitted by the recommended contractors from the Council’s approved list are checked. In particular that Health & Safety records, levels of insurances and financial soundness meet the Council’s requirements.

2. Time LimitdLiquidate & Ascertained Damages: That the recommended contractors confirm that they have adequate resources to meet the requirements of the contract. A review of the level of initial orders and the rate of flow of orders should be carried out with the lowest prime contractor in particular.

3. Management Resources: The management resources to be deployed should be reviewed. The recommended contractors should be able to satisfy the Contract Administrator that the management understand the requirements of the contract and that recruitment, retention and training strategies are sufficiently robust to meet the service delivery requirements.

4. Measurement/Payment Procedures: The recommended contractors should demonstrate to the Contract Administrator that they fully understand their obligation to measure the works using the NSR accurately and timeously. The level of substantiation of charges and checking procedures should be understood as well as procedures for monitoring that service delivery standards are being met.

5. Contract Extension: The procedures for review of contract performance and the programme for preparation of the negotiated renewal of the contract after 3 lSt March 2006.

- 4 -

6. Any other matters that the CA would wish to ensure were understood by the recommended contractor to ensure the smooth running of the contract.

Report on Tenders ProformdCopy of Priced Bills

The Pro-forma “REPORT ON TENDERS” is attached and has been completed at Section A where possible (items 7, 8 and 9 will require to be completed).

A copy of the form of tenders submitted by the lowest Prime and lowest Secondary tenderer documents are enclosed. The original tender documents have been retained meantime pending your further instructions.

Should you require any further information please do not hesitate to contact us.

Yours faithfully,

List of Enclosures:

Copy of tender analysis

Dumfries & Galloway Council “Report on Tenders” (plus copy by email) Original copy of Legal Services tender opening memoranda dated 26th January, 2005

Copy of Section 1 Clause 6, time limits & L&A Damages Copy of Form of Tender submitted by the lowest Prime Contractor Copy of Form of Tender submitted by the lowest Secondary Contractor

1.

2.

3 .

4.

5.

6.

7.

8.

9.

10

CONTRACTOWADDRESS

Recommended for acceptance:

See Attached Tender Analysis

REPORT ON PRIMARY & SECONDARY TENDERS SECTION A : TO BE COMPLETED BY CONSULTANT CALLING FOR TENDERS

TENDER AS TENDER AFTER TENDER LODGED CHECKING DATE

Client Ref No. Consultant Ref No. 05/22 ............................................................................................

Contract Aids & Adaptations ................................................................................................................................................................................................................................................................��

Property Measured Term Contract Estimated Cost &530,000

Tenders: Tenders were invited based on:-

a) Scottish Minor Works Contract 1986 Edition Tick

b) JCT Standard Form of Building Contract 1980 Edition Tick

c) Other : please describe

incorporating all amendments current at the date of tenders and the results are as follows;

JCT Measured Term Contract 1998 Ed. with Scottish Supplement (Jan 2004 Rev.) ..................................................................................................................................................................................................

Tenders will remain open for acceptance until ................. 6th October " ........................ 2005 .....

Start Date To be mutually Completion Date Works orders to No of Weeks .................................................... - - agreed 3 lst March 2006

Tenders have been checked by (Consultant) . .,M.R .R9.dE..& partners ............................................................................................... in accordance with the current Code of Procedure for Single Stage Selective Tendering.

A Performance Bond is not Required

Insurance Clauses Not Applicable shall apply. .......................................................................................................................................

Has Building Warrant been received? Date N/A Ref. No.

Has Planning Approval been received? Date N/A Ref. No.

The Contractor to is not to be appointed Principal Contractor under CDM Regulations

1 1. Name of Consultant reporting tenders

Signed Date

M R Rodger & Partners .................................................................................................................................................................................................

........................................................................................................................................................... .........................................................................................................

SECTION B : TO BE COMPLETED BY CLIENT SERVICES DIVISION (SEE OVER) SECTION C: TO BE COMPLETED FOR HOUSING PROJECTS (SEE OVER)

4 SECTION B : TO BE COMPLETED BY CLIENT SERVICES DIVISION

1. Tender costs recommended for acceptance .f

2. Enabling works cost .f

3 Temporary accommodation costs .f

4. Allowance for furniture and equipment .f

5 . Total design and supervision costs ( %) s Total outturn cost .f

6. Allowance in capitalhevenue programme .f

7 Undedover expenditure (+/-) .f

SECTION C: TO BE COMPLETED FOR HOUSING PROJECTS

CORE COSTS

Preliminaries

Core Works

NON CORE COSTS

Provisional Items

DayworksKontingencies

Tenant Reimbursement

TOTAL COST

.f

.f .

.f ........................................ " .....................

s

.f

" ............................................... .............................. ............................................. .f

0522 Tender Analysis tenders

Maintenance (Scotland) Ltd, Unit 5B, Siemens , Blochairn, Industrial Estate, Glasgow, G21

Ayrshire, KA8 9ST ......................................................................................................................

Mowlem Technical Services, Unit 2, Oakbank Parkway, Oakbank Business Park, Livingston, EH53

Border Construction Ltd, Marconi Road, Burgh Road

.....................................................................

M R Rodger & Partners 1 O f 4 05/08/2005 P

P

Percentage A Daywork labour Percentage B ............................. .............................................. .......................................................................................................................

0522 Tender Analysis tenders

Percentage C ...................................... Percentages in tender ........................................................................................................................

value for tender comparison

Secondary Tenders

........................................................................................................................

.....................................................................................................................

ICombined Services Group, Dumfries & Galloway Council, Lincluden, Depot, College Street, Dumfries ........................................................................................................................

......................................................................................................................... Atlas Maintenance (Scotland) Ltd, Unit 5B, Siemens Place, Blochairn, Industrial Estate, Glasgow, G21 2BN

......................................................................................................................... Thomson Construction Ltd, 3 Old Farm Road, Ayr, Avrshire. KA8 9ST

........................................................................................................................ PPM, Unit D, Kings Drive, Kingmoor Park South, Carlisle. CA6 4RD

......................................................................................................................... Mowlem Technical Services, Unit 2, Oakbank Parkway, Oakbank Business Park, Livingston, EH53 OTH

......................................................................................................................... Isorder Construction Ltd, Marconi Road, Burgh Road (Industrial Estate, Carlisle, CA2 7NA .........................................................................................................................

contract value order sub Plumber 1 work I z:Gd I Electrica' 1 Builder I I contractors 1 pro$!tive 1 for tender I tendei

........................................................................................................................ ,500.00 fl,500.00 f5,000.00 f200.00 f527,000.00 ........................................................................................................................ I I t t t

........................................................... ......................................................................

0.00% f16.50 f18.98 f18.98 50% ............................................... ............................................................................... f313,475.00 f4,950 ,375.00 f300.00 f513.386.00 .................................................................................... ...............................................................................

......................................................................................................................................................................................................................................... 1 1 1 1 l i l t t 20% 20% 15% 20% ....................................... .................................................................................

f190,200.00 f1,800.00 f5,750.00 f240.00 f566,212.50 .................................................................................................................................................... .................................................................................................................................

...........................................................................................................................................

50% f25.50 f27.50 15% 15% 12.5% 15% ............................................... ................................................................................................................................................................. 70,212.50 f7,650. 0 €5,500.00 f182,275.00 f1,725.00 f5,625.00 f230.00 f686.967.50 .....................................................................................................................................................................

no secondary tender returned

................................................

................................................ I t

05/08/2005 M R Rodger & Partners 2 0 f 4

4

Percentages in tender Percentage A Daywork labour Percentage B

Plumber work and Electrical materials plant

rate heating

value Of work value of Builder work paid on schedule daywork

- 59% rate 20 25 25 15.00% 15.00%

hours 300 500 200 allowance 158500 1500

527000 31 3475 21 3525 6000 12500 5000 182275 1725

08 July 2005 06 October 2005

90

Percentage C sub Non

contractor Productive S OT

12.50% 100.00%

5000 200 5625 400

total

527000 0

3 February 2005 4 Report Adult Services Sub Committee

REPORT WITHDRAWN BY GROUP MANAGER CORPORATE AND GOVERNANCE

CARE AND REPAIR SERVICE REVIEW

I. Purpose of the Report To seek Members’ endorsement of the proposed recommendations to the Planning and Environment Committee to change the current procurement and management arrangements that deliver the Adaptations element of the region’s Care and Repair Service.

2. Background 2, l Council’s Local Housing Strategy (LHS). Strategic Objective 9 of the LHS considers the delivery of the Care and Repair service in Dumfries and Galloway and states that a service review will be undertaken. The anticipated outcome of this review is to develop a ‘‘forward action plan covering the period of the LHS which sets out how the Care and Repair project will secure best value and strategic fit from grants investment.”

The March 2004 Education and Community Services Committee agreed the

2.2 Loreburn Housing Association (LHA) delivers the Care and Repair service in Dumfries and Galloway. The basic aims of this service are to help people living in the private housing sector repair, improve or adapt their home so that they can live independently, in comfort and safety in their own community.

2.3 The funding and service delivery mechanisms are currently very complex. This is because grants for improvements and repairs are given by local Councils under a framework set by law. Care and Repair is funded by Communities Scotland, Private Sector Housing Grant and an allocation from the Council’s Equipment and Adaptations budget. So far this year approximately f 1.2 m has been spent or committed. Of this approximately f0.6 m relates to the provision of 169 Adaptations. Communities Scotland have provided an additional f0.5 m for 2005 / 2006 because of the clear demand for this service. In addition to these funding streams LHA have been very successful in accessing charitable donations. In past years they have almost matched public expenditure with funding from charitable sources on a pound for pound basis.

2.4 A multi agency group was established to take forward the service review. It has now met 4 times with the last meeting having taken place on 14 January 2005. This meeting had a particular focus on delays in completing repairs and installing adaptations reflecting a general concern among Elected Members that the work of the group had lost focus and that progress was slow. At this meeting, a clear set of recommendations was identified for the improvement of customer service.

..

3. 3.1 and grab rails, requires to be individually tendered. There are approximately 250 .

Sarriers to Effective Service Delivery Under current arrangements much of the work, with the exception of handrails

Report Adult Services Sub Committee 3 February 2005

projects per year tendered resulting in a very time consuming and bureaucratic process,

3.2 present “over heated” building market. There is a well documented shortage of local contractors able to carry forward these works timeously. When they do carry out this work there are some variances in contractor performance in terms of quality and reliability. A recent further development has been that several unpriced tenders have been returned due to heavy workload.

It is difficult to obtain truly competitive prices for Care and Repair jobs in the

3.3 There is an inefficient use of staff time within the process due to the number of stages involved. Staff also spend much of their time “firefighting” and dealing with complaints resulting from delays in progressing the work. This time could be much better used to the benefit of clients. The Occupational Therapy Service also has a number of staff vacancies which means there are not enough people to adequately resource this labour intensive work.

4, Improving the Care and Repair Service 4.1 The procurement process that delivers the Care and Repair Service was examined in some detail at the last meeting of the review group. It is proposed to move from individual Tenders to a Measured Term Contract for disabled adaptation grants only. The review group has proposed a target date of June 2005 for the introduction of this contract. This will allow time to go through a competitive tendering process which is central to achieving Best Value. At the time of writing this report current levels of funding are only guaranteed up to April 2006. This will be reflected in the tender documentation though there is no reason to expect that funding will not continue beyond this date.

4.2 will carry out all the Adaptations work with the contractor operating on a multi trade basis. Secondary and tertiary contractors will also be invited to tender for this work. The secondary and tertiary contractors will carry out the works if the primary contractor fails or is unable to deliver under the contract terms. In essence they provide a safety net if difficulties are encountered. It is proposed to tender the contract on a region wide basis so that uniform levels of service delivery are achieved across the region. Customers that require building works operate under different administrative arrangements and are entitled to find their own contractor.to carry out works. These customers will be given the option of works being carried out by the contractor who is awarded the Measured Term Contract.

A Measured Term Contract means that one successful Primary Contractor

4.3 Benefits of a Measured Term Contract The benefits of this type of contract are listed below:

0

The process of carrying out adaptations to clients‘ homes become simplified, Greater value for money will be achieved because the contractor will be expected to provide more competitive prices for individual components as a result of the work being guaranteed for a fixed period.

2

Report Adult Services Sub Committee 3 February 2005 4

0

A robust service specification at the tender stage, monitored through a single contract, will result in improved quality of materials and workmanship. Budget control will improve because contract rates will be pre determined and there is only one contract to monitor. The contractor will also be obliged to provide regular monitoring information resulting in an improved ability to audit and identify problems. Creating a long term relationship with a contractor could result in reduced conflict with a greater emphasis on partnership commitment and loyalty.

5. Care and Repair Management Issues 5.1 The Review group have also agreed the principle that Loreburn Housing Association can recruit an additional 2.5 members of staff and bring the grades of all Care and Repair staff into line with LHAs existing salary structure. This would mean 1 additional Care and Repair Officer in Dumfries and Stranraer as well as a part time clerical post in Dumfries. This decision will also be included in the report to the Planning and Environment Committee because Communities Scotland have advised the revenue funding for the Care and Repair service will be allocated from Private Sector Housing Grant to the Council from April 2005. These staffing decisions will also need to be ratified by the Care and Repair Steering Group before being presented to Committee. Additional staff are required because the funding of this service has increased significantly in the last year. Care and Repair officers now have a case load that is well in excess of the national average with the workload issues exacerbated because Dumfries and Galloway is a rural area.

5.2 At present a range of Architectural Services Staff are involved in service provision. This is a response to the cumbersome administrative arrangements and the high level of technical support currently required. If the procurement process moves to a Measured Term Contract it is proposed that Architectural Services correspondingly re-organise staff workloads to ensure that instead of the work being spread amongst a large number of technical staff working on a variety of projects, a small dedicated team will specialise in this type of work. This will provide continuity, increase levels of technical expertise and help establish clear lines of com m u ni cat i on between partner o rg ani sat i ons .

5.3 The involvement of Occupational Therapists in this process will be rationalised. This will be achieved by streamlining service delivery and reducing the' number of client visits. The introduction of a Measured Term Contract will also mean these staff spend less time dealing with complaints and more time delivering services.

6 Consultation The Corporate Director for Combined Services, Director for Finance, Joint Head of Strategic Planning & Commissioning and the Care and Repair Review Group have been consulted and concur with the contents of this report.

3

4 Report Adult Services Sub Committee 3 February 2005

7. Recommendations Members are asked to:

7.1 Care and Repair Service as agreed in the Council’s Local Housing Strategy;

note the process followed, and progress made, in reviewing the region’s

7.2 note that following the January 2005 meeting of the Care and Repair Review Group, recommendations will be made to the Planning and Environment Committee to change current procurement and management arrangements; and

7.3 endorse the recommendations to the Planning and Environment Committee to change current procurement and management arrangements to achieve greater efficiency in service delivery.

Report written by Jim O’Neill, Strategy and Development Manager

Rosemary Flexney Fraser Sanderson Group Manager Adult Services

Tel: 01387 260901

Date of report: 25 January 2005

Corporate Director of Education and Community Services Woodbank, 30 Edinburgh Road, DUMFRIES, DGI 1NW

File Ref: AD2_FebO5_Care&Repair

Report Planning and Environment Services Committee 12 April 2005 4

CARE AND REPAIR AND THE PROVISION OF MEASURED TERM CONTRACT ARRANGEMENTS

1. Reason for Report To seek Members endorsement to change the current procurement and management arrangements that deliver the adaptations element of the region’s Care and Repair service to that of a measured term contract.

2. Background The February 2005 Adult Services Committee agreed to recommend to Planning and Environment Services Committee a change in the current procurement and management arrangements to deliver the adaptations element of the local Care and Repair service. It was proposed to move from individual tenders to a measured term contract. A copy of the Adult Services sub committee report is attached (Appendix 1).

3 Current Service Delivery At the moment there are approximately 250 projects per year individually tendered which is both very time consuming and a lengthy bureaucratic process. In addition there is a recognised shortage of contractors and some differences in the overall quality of their performance. All of this leads to delays and frustration on the part of the applicants and staff when trying to progress works.

4 Benefits of a Measured Term Contract 4.1 A measured term contractor would operate on a multi trade, region wide basis so that standard levels of service delivery are achieved throughout Dumfries and Galloway.

4.2 Further benefits would include a simplified project process and greater value for money with a more competitive pricing scheme in place. There would also be better project specifications,, better budget control, as there would only be one contractor to deal with and a more effective long term working relationship between contractor and the council.

4.3 It is expected that the successful contractor would carry out most of the adaptations however the grant applicant would retain the right to employ their own contractor. Clients of Care and Repair who are not carrying out adaptations to their home but who may be carrying out building repair works would also be given the opportunity to use the measured term contractor. Clients who choose a contractor who is more expensive than the measured term contractor do so on the understanding they would fund the difference in price themselves.

4 Report Planning and Environment Services Committee 12 April 2005

5. Care and Repair Staffing Levels 5.1 The Care and Repair Service Review group, set up further to Strategic Objective 9 of our Local Housing Strategy, have agreed that additional Care and Repair staff are necessary. This would mean 1 more Care and Repair officer in both the Stranraer and Dumfries offices as well as a part time clerical post in Dumfries. Additional staff are required because the current Care and Repair officers have a case load well in excess of the national average with the work load issues made worse because Dumfries and Galloway is a rural area and the funding of this service has increased significantly in the last year.

5.2 If a Measured Term Contractor is appointed it is also proposed to re organise the workloads of Architectural Services and Occupational Therapy staff to ensure that a better, streamlined service is presented to the public.

6. Financiaf Implications There are financial implications for the Council in so far as part funding of the Care and Repair project comes from Adult Services budget.

7. Consultation. The Director of Combined Services, Director of Finance, Head of Strategic Planning and Commissioning and the Care and Repair Review Group have been consulted and concur with the contents of the report.

8. Recommendations Members are asked to approve the recommendations to change the current procurement arrangements to a Measured Term Contract and to increase staffing levels within Care and Repair to achieve greater efficiency in service del iverv.

Hillard Anderson Peter N Bulmer Group Manager Development and Environment Environment Services

Scott Kerr - Report Author Private Sector Housing Manager Tel: 01387 260000 Ext 63415

Corporate Director of Planning and

Militia House English Street Du mf ries DGI 2HR

Date of Report: 29 March 2005

File Ref: skra14rk

APPENDICES - 1

z

APPENDIX 7

Report Adult Services Sub Committee 3 February 2005

4 CARE AND REPAIR SERVICE REVIEW

1. Purpose of the Report To seek Members’ endorsement of the proposed recommendations to the Planning and Environment Committee to change the current procurement and management arrangements that deliver the Adaptations element of the region’s Care and Repair Service.

2. Background 2.1 Council’s Local Housing Strategy (LHS). Strategic Objective 9 of the LHS considers the delivery of the Care and Repair service in Dumfries and Galloway and states that a service review will be undertaken. The anticipated outcome of this review is to develop a “forward action plan covering the period of the LHS which sets out how the Care and Repair project will secure best value and strategic fit from g rants i nves t me n t. I’

The March 2004 Education and Community Services Committee agreed the

2.2 Loreburn Housing Association (LHA) delivers the Care and Repair service in Dumfries and Galloway. The basic aims of this service are to help people living in the private housing sector repair, improve or adapt their home so that they can live independently, in comfort and safety in their own community.

2.3 The funding and service delivery mechanisms are currently very complex. This is because grants for improvements and repairs are given by local Councils under a framework set by law. Care and Repair is funded by Communities Scotland, Private Sector Housing Grant and an allocation from the Council’s Equipment and Adaptations budget. So far this year approximately f 1.2 m has been spent or committed. Of this approximately f0.6 m relates to the provision of 169 Adaptations. Communities Scotland have provided an additional f0.5 m for 2005 / 2006 because of the clear demand for this service. In addition to these funding streams LHA have been very successful in accessing charitable donations. In past years they have almost matched public expenditure with funding from charitable sources on a pound for pound basis.

2.4 A multi agency group was established to take forward the service review. It has now met 4 times with the last meeting having taken place on 14 January 2005. This meeting had a particular focus on delays in completing repairs and installing adaptations reflecting a general concern among Elected Members that the work of the group had lost focus and that progress was slow. At this meeting, a clear set of recommendations was identified for the improvement of customer service.

3. 3.1 and grab rails, requires to be individually tendered. There are approximately 250 projects per year tendered resulting in a very time consuming and bureaucratic pro cess.

Barriers to Effective Service Delivery Under current arrangements much of the work, with the exception of handrails

Report Adult Services Sub Committee 3 February 2005

4 3.2 present “over heated” building market. There is a well documented shortage of local contractors able to carry forward these works timeously. When they do carry out this work there are some variances in contractor performance in terms of quality and reliability. A recent further development has been that several unpriced tenders have been returned due to heavy workload.

It is difficult to obtain truly competitive prices for Care and Repair jobs in the

3.3 There is an inefficient use of staff time within the process due to the number of stages involved. Staff also spend much of their time “firefighting” and dealing with complaints resulting from delays in progressing the work. This time could be much better used to the benefit of clients. The Occupational Therapy Service also has a number of staff vacancies which means there are not enough people to adequately resource this labour intensive work.

4. Improving the Care and Repair Service 4.1 The procurement process that delivers the Care and Repair Service was examined in some detail at the last meeting of the review group. It is proposed to move from individual Tenders to a Measured Term Contract for disabled adaptation grants only. The review group has proposed a target date of June 2005 for the introduction of this contract. This will allow time to go through a competitive tendering process which is central to.achieving Best Value. At the time of writing this report current levels of funding are only guaranteed up to April 2006. This will be reflected in the tender documentation though there is no reason to expect that funding will not continue beyond this date.

4.2 A Measured Term Contract means that the successful Primary Contractor will carry most of the Adaptations work with the contractor operating on a multi trade basis. Secondary and tertiary contractors will also be invited to tender for this work. The secondary and tertiary contractors will carry out the works if the primary contractor fails or is unable to deliver under the contract terms. In essence they provide a safety net if difficulties are encountered. It is proposed to tender the contract on a region wide basis so that uniform levels of service delivery are achieved across the region. When developing the detail of the contract it is likely to have the scope for individual clients to appoint their own contractor should they wish to do so. It is not envisaged that many clients will appoint their own contractor because the issues being tackled via the introduction of the Measured Term Contract are those of contractor availability, increasing costs and time taken to arrange and undertake work. Customers that require building are also entitled to find their own contractor to carry out works. These customers will be given the option of works being carried out by the contractor who is awarded the Measured Term Contract.

4.3 Benefits of a Measured Term Contract The benefits of this type of contract are listed below:

e

The process of carrying out adaptations to clients’ homes become simplified. Greater value for money will be achieved because the contractor will be expected to provide more competitive prices for individual components as a result of the work being guaranteed for a fixed period.

Report Adult Services Sub Committee 3 February2005 4 A robust service specification at the tender stage, monitored through a single contract, will result in improved quality of materials and workmanship. Budget control will improve because contract rates will be pre determined and there is only one contract to monitor. The contractor will also be obliged to provide regular monitoring information resulting in an improved ability to audit and identify problems. Creating a long term relationship with a contractor could result in reduced conflict with a greater emphasis on partnership commitment and loyalty.

e

e

5. Care and Repair Management Issues 5.1 The Review group have also agreed the principle that Loreburn Housing Association can recruit an additional 2.5 members of staff and bring the grades of all Care and Repair staff into line with LHA's existing salary structure. This would mean 1 additional Care and Repair Officer in Dumfries and Stranraer as well as a part time clerical post in Dumfries. This decision will also be included in the report to the Planning and Environment Committee because Communities Scotland have advised the revenue funding for the Care and Repair service will be allocated from Private Sector Housing Grant to the Council from April 2005. These staffing decisions will also need to be ratified by the Care and Repair Steering Group before being presented to Committee. Additional staff are required because the funding of this service has increased significantly in the last year. Care and Repair officers now have a case load that is well in excess of the national average with the workload issues exacerbated because Dumfries and Galloway is a rural area.

5.2 At present a range of Architectural Services Staff are involved in service provision. This is a response to the cumbersome administrative arrangements and the high level of technical support currently required. If the procurement process moves to a Measured Term Contract it is proposed that Architectural Services correspondingly re-organise staff workloads to ensure that instead of the work being spread amongst a large number of technical staff working on a variety of projects, a small dedicated team will specialise in this type of work. This will provide continuity, increase levels of technical expertise and help establish clear lines of communication between partner organisations.

5.3 rationalised. This will be achieved by streamlining service delivery and reducing the number of client visits. The introduction of a Measured Term Contract will also mean these staff spend less time dealing with complaints and more time delivering services .

The involvement of Occupational Therapists in this process will be

6 Consultation The Corporate Director for Combined Services, Director for Finance, Joint Head of Strategic Planning & Commissioning and the Care and Repair Review Group have been consulted and concur with the contents of this report.

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Report Adult Services Sub Committee 3 February 2005

4 7. Members are asked to:

7.1 note the process followed, and progress made, in reviewing the region’s Care and Repair Service as agreed in the Council’s Local Housing Strategy;

7.2 note that following the January 2005 meeting of the Care and Repair Review Group, recommendations will be made to the Planning and Environment Committee to change current procurement and management arrangements; and

7.3 endorse the recommendations to the Planning and Environment Committee to change current procurement and management arrangements to achieve greater efficiency in service delivery.

Recom men dat ion s

Report written by Jim O’Neill, Strategy and Development Manager

Rosemary Flexney Fraser Sanderson Group Manager Adult Services

Tel: 01387 260901

Date of report: 25 January 2005

Corporate Director of Education and Corn mu nity Services Woodbank, 30 Edinburgh Road, DUMFRIES, DGI INW

File Ref: AD2_FebOS_Care&Repair

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