APPENDIX A
PROPOSED ARRANGEMENTS FOR THE DELIVERY OF HOUSING
PLANNED MAINTENANCE SERVICES AND CAPITAL WORKS BY
LAMPTON 360 LTD.
Commencement and duration
The London Borough of Hounslow (the Council and the Client) is the “Local Housing Authority” for
its area, pursuant to Sections 1 & 2 of the Housing Act 1985. Lampton 360 Ltd (the Service
Provider) is the Council’s wholly owned Local Authority trading company. The parties agree to
enter into an agreement for the delivery of Housing planned maintenance services and capital
works.
This service agreement and obligations shall take full effect from the commencement date 1 April
2017 and shall continue for a period of five (5) years. Subject to a satisfactory completion of a full
review of service and delivery performance and compliance requirements, which shall be carried
out in the first quarter of the fifth year, the agreement should be extended for a further five (5)
years.
Transition to a fully standalone and operational service provider
The commencement date of this Agreement will be preceded by a transitional period designed to
facilitate the smooth transfer of functions from Hounslow Housing to Lampton 360 Ltd. The details
of the transitional arrangements are set out in Appendix B. The transition period and arrangements
will take effect from [1 September 2016] and will cease on 31 March 2017 at which point this
Agreement will take effect. The overriding principles underpinning this transitional arrangements
are to:
retain flexibility to ensure the smooth transfer between both parties whilst providing continuity and quality of service and minimising disruption to tenants and leaseholders;
maintain the involvement, commitment and motivation of staff as this is vital for achieving the smooth and seamless transfer;
enable the Council and Lampton 360 to develop/embed the infra-structure overarching arrangements (eg ICT) as well as enable its housing subsidiary to become fully standalone and operational; and
enable the Council and Lampton 360 to agree and establish client-provider relationship ensuring a thorough understanding of the council’s landlord statutory obligations towards tenants and leaseholders.
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Scope of works and services:
Scope:
Lampton 360 shall deliver cyclical, planned and capital maintenance works and other services as
specified by the Council. The list of assets where works and services will be carried are set out as
follows;
Housing Revenue Account (HRA) Asset Asset no. (approximate)
HRA Housing Stock 13,500 tenanted properties and 2,500 leaseholders
Garages 2,614
Community Centres 27
Playgrounds 60
Hostels 29
The scope of Services and Planned Works that LBH is commissioning L360 to undertake on its behalf
are listed in the summary below. The full service specification is attached in Appendix C. Given that
the service specification in the main is delivered jointly through the DLO and its subcontractors and
generally understood as follows;
Core Works - currently delivered by DLO
Core Services - currently substantially delivered via contracts with third parties
The service specification is divided into three distinct tasks generally on the following
understanding;
Works and Services (core) – these are defined as Planned maintenance tasks that are fully
defined in priority order and in advance of the year, as described in service specification to
be delivered by L360 during each year.
Works and Services (non-core) – these are defined as major planned projects, eg; one-off
capital projects, major/minor voids works which may be included in the annual scope of
works. These projects will have a distinct design and planning phase which may also often
require consultation with tenants and leaseholders.
Core works and demand led - these are defined as maintenance activities which are
generally required to comply with LBH standards and its landlord statutory duties. These
may also require repair and maintenance (demand led) in response to inspection or
unforeseen events which generally are required to comply with LBH landlord statutory duty
and each task will be subject to a further instruction issued by LBH and subject to a specific
response and rectification period.
Summary of Services and Planned Works are as follows:
The tables below summary the type of work to be undertaken within each of the above categories
and whether the works are currently delivered by the DLO or an external contractor (or both
depending on the nature of the work and capacity within the DLO
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Works - core Description Internal or External (DLO/ Contractors)
Adaptations Completion of works to adapt properties for disabled or vulnerable residents.
Internal and External
Asbestos Removal of asbestos External
Central heating Renewal
Replacement of central heating systems e.g. radiators, boilers
Internal
Cold water Replacement of cold water systems, e.g. storage tanks External
Painting and cyclical works
Painting and decorations, etc. Internal and External
Emergency and communal lighting
Replacement of light fixtures, etc. Internal
Health and safety improvements
Upgrade and replacement of items found in breach of Health and Safety compliance
Internal and External
Kitchens and Bathrooms
Replacement of kitchens and bathrooms, all fixtures and units, etc.
Internal and External
Planned repairs Routine and more complex works, also includes Graffiti removal
Internal
Rewiring Re-wiring of electrical circuits and sockets Internal and External
Void works Repairs to void properties as part of the re-letting process, covered by void specification;
Internal
Services - core Description Internal or External (DLO/ Contractors)
Street lighting Upkeep and maintenance of street lighting on estates Internal
Gas Upkeep and maintenance and repair of boilers and central heating systems in council tenanted stock
External
Booster sets Upkeep and maintenance of booster sets to raise water pressure e.g. in high rise
External
Water quality Ensuring compliance with Legionella testing etc. External
Ventilation Upkeep and maintenance of ventilation shafts and ducts etc.
External
Dry risers Upkeep and maintenance of dry risers, which may be used to raise water to height during a fire
External
Air Conditioning Upkeep and maintenance of air conditioning systems External
Lifts Upkeep and maintenance of lifts External
Fire Alarms Upkeep and maintenance of fire alarms External
Emergency lighting
Upkeep and maintenance of emergency lighting External
CCTV Upkeep and maintenance of CCTV External
Car park barriers Upkeep and maintenance of car park barriers External
Works – non core Description Internal or External (DLO/ Contractors)
CCTV Expanding of network External
District Heating Replacement of ailing boilers External
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Door Entry Replacement of systems to provide more modern features, greater security and ease of use.
External
Energy Improvements
Fitting of external cladding to provide improved insulation
External
Extensions Extension of existing properties to provide additional bedroom capacity
Internal and External
Lifts Replacement of existing lifts External
Property Refurbishment and Major Voids
Major capital works to repair damaged properties Internal
Roofing Replacement of building roofs, cyclical or due to damage and disrepair
External
Sheltered Various projects to refurbish, redevelop and replace existing sheltered accommodation
External
Structural repairs Major capital works to repair properties that are no longer structurally sound – e.g. subsidence issues
External
Water mains Replacement of water mains due to damage or disrepair
External
Windows and doors
Replacement of windows and doors External
The delivery of Services and Planned Works (Core and non-core) will be subject to:
An annual review of service specification carried out in October of each year – this will seek
to take into account any changes and variations to the Service specification and
commissioning accordingly. The annual review process is identified in Appendix [x]
Delivering the works and services – standards and compliance :
In carrying out the delivery of Services and Planned Works to LBH, L360 at all times shall adopt the
following;
Standards
Workforce – L360 will ensure that any personnel employed in and about the provision of
the services and works will ensure they are properly and sufficiently qualified, competent,
skilled, honest and experienced and shall at all times exercise care in the execution of their
duties. Lampton 360 will also ensure that such persons are properly and sufficiently
instructed and supervised with regard to the provision of Services and Planned Works
Decent Homes – LBH will be guided by the decent home standard in the strategic
development and commissioning of services to Lampton 360. Lampton 360 will therefore
seek to ensure that all Works and Services as specified in the service specification meet this
quality standard of service for tenants and leaseholders across the borough
Voids - Lampton 360 will apply the voids standard specified and attached in Appendix [xx]
in the delivery of Services and Works for major and minor void properties
Quality Management System
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The Council expects Lampton 360 to be able to demonstrate that it has robust quality
management systems in place, for example that it has attained or is working towards ISO
9001:2008, which requires that internal procedures are documented and that quality
assurance procedures can be evidenced.
Environmental Management System
The Council expects Lampton 360 to be able to demonstrate that it has proper regard for the
environment and has in place effective procedures for minimising and handling waste, for
example that it has attained or is working towards ISO 14001 and has documented and
evidenced its environmental procedures.
Compliance
L360 or any sub-contractor arrangement or in connection with the provision of services to
LBH and the council’s role as landlord shall comply at all times with relevant good industry
practice, health and safety legislation, British Standards and European legislation. At the
very minimum these will comply with statutory legislation around ;
I. Health and Safety – ensuring all appropriate safety levels, regular routine and
maintenance inspections are carried out systematically throughout the year. This
will include legislative requirements, risk assessments are embedded to ensure
Health & Safety policy and procedures are integral to service delivery
II. Gas – risk assessments, inspection schedules and certificates are fully completed to
ensure all legal obligations are appropriately maintained
III. Fire - risk assessments, inspection schedules and certificates are fully completed to
ensure all legal obligations are appropriately maintained
IV. Asbestos - fully support legal asbestos management obligations
Providing and managing people, assets, materials and any other resources including
suppliers to match the levels of services required by LBH
Assist LBH in the management of, and communication with, service users on the activities
being undertaken in the delivery of Services and Planned Works
Emergency and Critical Incidents
A critical incident is an event that causes severe impact, such as significant disruption or threat to
the welfare and/or safety of council housing tenants or relevant groups which may occur during the
period within which the Services are delivered.
In the event of a critical incident involving tenants or relevant groups L360 will recognise the
importance of the health and safety, and well being of tenants and relevant groups and will action as
follows ;
Immediately notify LBH client liaison / Chief Officer and keep him/her informed of
developments on a regular basis
LBH will have the ultimate responsibility for managing any critical incident involving HRA
land and will act as the Council’s overall lead incident officer
LBH will have responsibility for informing the Lead Cabinet Member for Housing and keeping
him/her informed on regular basis
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L360 will arrange for any immediate remedial action and maintain an end to end log of
events
Changes/variations to service delivery;
The parties acknowledge that LBH in its landlord role and status is subject to changes from time to
time - including those resulting from:-
Regulatory or statutory requirements.
Tenant and/or Leaseholder expectations.
Council policy objectives
Any unforeseen events outside the control of the parties.
and accordingly this Contract will need to be varied or otherwise incorporate such changes
In addition, LBH may evaluate and make variations to the Services and Planned Works (Core and
Non-core) service specification to take into account revisions to HRA and Asset Management plans
which may impact on L360 such as :-
Changing standards (such as energy efficiency)
Future stock condition surveys
Legal and regulatory requirements (relating to fire safety and other matters)
The impact of charges for works and services on Leaseholders
Any unforeseen events outside the control of the parties
Any changes/variations that need to be included in the service specification arising from these
changes will be in discussion with L360 and will take into account of fees and any impact on agreed
efficiency targets.
Exclusions:
The following services will have an element of interface between the client functions and those
services provided by Responsive Repairs which are located within the Resident Service. The list
below aims to identify the separation of functions and are excluded from the service specification
as these will be delivered by LBH under separate arrangements. However, whenever such planning
and review activities are to be undertaken this will be in conjunction with the delivery of works,
ensuring the interfaces remain clear and separate and enable Lampton 360 to undertake and
ensure the effective delivery of all programmes set out herewith.
Out of scope :
Asset management strategic planning
Strategic planning of planned maintenance
Consultation of planned works and services with tenants and leaseholders
Responsive Repairs
Fees, payment and efficiencies
Payment [the following is subject to further discussion and negotiation with Lampton 360 as these
are in part dependent on the arrangements made between the Council and L360 to provide L360 with
sufficient cash flow to manage their business].
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Fees and payment during transitional period [1 Sept through to 31 March 2017] this will be
negotiated and agreed with Lampton 360.
Formalised Fees, payment, efficiencies processes will become effective from 1 April 2017
The service specification sets out the Council’s current indicative spend for the works and planned
services as listed in [schedule xx]
Expenditure on core - the activities listed as core Works and Services is similar year on year although
there will be some variations as elements of core work are demand led.
Expenditure on non core - works can vary significantly year on year depending on the resources
available within the Housing Revenue Account (HRA) and decisions by the Council as to where to
invest.
The arrangements for payment of Lampton 360 fall into x categories:
Core Works - most of the core works are programmed so payments can be made (potentially in
advance if needed for cash flow management) in line with the agreed budget for the programme
with adjustments made later in the year to reflect actual delivery/ non delivery
Where Core Works are demand led (eg void repairs, planned responsive and adaptations) these will
need to be ordered as required and L360 will need to be paid on completion of the works based on
an agreed ‘Schedule of Rates’.
Core Services are currently substantially delivered via contracts with third parties. These contracts
have agreed rates and there a known historic payment profile. The Council will need to pay L360 for
managing these contracts at a rate to be agreed. Once this ‘management fee’ is agreed it can be
paid in instalments in addition to reimbursement of L360’s payments to the external contractor.
Non Core activities will vary year on year. Currently most of these are delivered by external
contractors so it should be possible to programme these activities and develop a payment profile
which the Council would pay against along similar lines to the proposals for Core Services. Where
these activities are to be delivered directly by L360 it should be possible to programme these
activities and pay for them based on an agreed ‘Schedule of Rates’ or ‘Valuation’.
Efficiencies
In delivering the Works and Services L360 will work with economy and efficiency in mind. It is
therefore desirable that L360 generates efficiencies within its first year but it is recognised that
during its mobilisation period this may not realise. However, L360 will be required to deliver
efficiency saving targets as agreed at the point of transfer of services and for the following years the
approach will be as follows ;
during the first annual review and in collaboration with Lampton 360 – LBH will focus on
setting a target date by which Lampton 360 will be delivering services to LBH in line with the
NHF rates.
the following years will then focus on potentially delivering some services at below these
rates in line with the external market
Financial controls In delivering the service specification of works and services L360 is responsible for ensuring timely completion of services and maintaining a system of internal control that ensures that:
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expenditure is logged against jobs in a manner that enables the costs of repairs and works to be identified and monitored against budget
stores are managed and controlled so that materials are used in accordance with the agreed specification of works and services and is appropriately certified
third party invoices that are payable by L360 directly or via a recharge from LBH are certified to confirm that services have been provided in accordance with the specification.
where works are not necessary but are proposed to be undertaken on the grounds of efficiency eg works that can be done in a cost effective manner are subject to agreement and approval from LBH
Performance Monitoring, monitoring and review arrangements
An effective Performance management framework is vital in the effective delivery of this
arrangement and the requirements within it. To ensure that LBH objectives are met. The
performance management framework and review of this arrangement are underpinned through the
following arrangements ;
Client / Provider - Terms of engagement procedure – [schedule xx] this procedure sets out
the client/provider relationship and obligations to be followed by both parties – in
particular this covers;
I. Client / provider arrangements - meetings
II. Annual reviews and business planning
Performance management (KPIs) – [schedule xx] - service key performance indicators
intended to improve Tenant and Leaseholder satisfaction and demonstrate the efficiency in
delivering cost effective services
Service Specification Indicators – [schedule xx] –outcome measures as identified in the
Service specification by work stream, to ensure effective and timely delivery of required
units of planned work; plus qualitative measures of performance based on customer
satisfaction ratings and sample-based post-inspection of work
The key outcomes of the combined performance management framework set out above ;
The effective co-ordination and delivery of the Service specification, including effectively co-
ordination of service delivery undertaken by sub-contractors – [ schedule xx]
The effective management of contract arrangements and smooth transitional arrangements
and process as set out in Appendix xx
Effective and efficient use of resources to minimise the costs of delivering the works and
services programme where possible
Effective management of changes/variations to the contract arrangements including service
specifications and early identification of potential changes
Accurate forecasting of costs and budget profiling
Effective management of progress against targets and tenants and leaseholders
expectations
Effective management of contract and risks
Timely and accurate reportingit &
Risk management, audit and scrutiny
Risk Management
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In delivering the Services and Planned Works, Lampton 360 shall ;
maintain at all times an annual and up to date Risk Management register and made available
to LBH as requested
the risk register shall highlight any major risks to delivery and mitigation measures, which
shall be reviewed regularly by Lampton 360
manage all on-site health and safety risks, all sub-contractor risks, all materials and logistics
risks and the actions and inactions of its workforce and any sub-contractors used to deliver
the Services and Planned works
Audit
Lampton 360 shall provide LBH (or its representative) access to information for any audit purpose
in connection to this contract including ;
provide access at reasonable times to premises or land used in the provision of its services
provide or have access to any information and explanation as deemed appropriate concerning
any matter under consideration
provides full cooperation, including accountability for funds, properties under Lampton 360
control and provide access for inspection if required
give full assistance and high priority in the investigation of fraud, bribery and corruption or
any other irregularity
Lampton 360 shall respond positively and implement any recommendations necessary to
secure continuous improvement and effective internal control in the operation and delivery of
services to Hounslow Housing
Scrutiny
L360 will recognise and support LBH in responding to ;
scrutiny and performance requirements from Council’s sub committee’s including but not
limited to ;
I. The Council’s Housing and Environmental Scrutiny Panel
II. Affordable Housing Committee (sub- Cabinet Committee)
III. Tenant, Leaseholders and Sheltered Tenants Committee (sub- Cabinet Committee)
The Parties will share information and experience from scrutiny and performance
monitoring systems and regularly review and revise these as may be necessary to ensure
clarity and accountability
Term and Termination
Term
This Service Contract and the rights and obligations of the parties shall take effect on the
commencement date and shall continue for a period of five years and reviewed annually in
accordance with its terms.
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Termination
LBH shall be entitled to terminate this contract if ;
Lampton 360 fails to comply with the terms here of or if in LBH’s opinion there is a serious
and substantiated risk that Lampton360 will shortly fail so to comply. This will include non
compliance with agreed performance measures over a continuous period.
Unless in the Council’s opinion L360’s actual or anticipated failure which would entitle LBH
to terminate this agreement shall be afforded the opportunity (including where appropriate
a remedial plan) to comply or demonstrate that it will comply with the terms hereof within a
timescale that is satisfactory to LBH
Any failure by L360 to comply with a remedial plan as set out above provided under or
where in LBH opinion L360s’ actual or anticipated failure cannot be remedied, LBH will be
entitled to terminate this contract
Before the termination of this Agreement LBH shall consult with and formally take into
account the views of all affected Tenants, Leaseholders and staff.
If LBH becomes entitled to terminate this agreement it may decide to terminate the whole
or any part hereof and either provide the Services and Planned Works itself or procure that
any third party do so and Lampton 360 will take such steps as may reasonably be required to
give effect to LBH decision
Where LBH is entitled to terminate this agreement it shall give Lampton 360 [xx months]
notice unless the reasons for termination are so significant and serious so as to warrant an
earlier termination
On termination, Lampton 360 shall where so requested by LBH assign or novate to LBH or
whom they may elect with effect from the date of termination, any sub-contract (and
Lampton 360 shall take all necessary steps and execute such documents as are necessary to
give effect to such assignment or novation
For the avoidance of doubt, termination of this contract shall not in itself give rise to
termination of any of the service contracts
L360 shall where so requested by LBH transfer its rights, title and interest in and to the
assets to LBH, or to such other person as LBH may elect, with effect from the date of
termination
Termination for corrupt gifts and fraud
L360 warrants that in entering into this Contract it has not committed any prohibited act.
If a prohibited Act is committed by an employee of L360 or associated person acting
independently of L360, then LBH may give notice to L360 and this contract will terminate,
unless
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within [xx business] days of receipt of such notice Lampton 360 terminates the employee’s
or associated person’s employment and demonstrates to the reasonable satisfaction of LBH
that the employee or associated person was acting independently of Lampton 360 and (if
necessary)
procures the performance of such part of the employee’s or associated person’s duties by
another person
Dispute resolution
In the event of any dispute between the parties arising out of or in connection with this contract the
parties shall in the first instance use their reasonable endeavours to resolve it amicably between
them in accordance with the procedure set out below:-
Stage 1: Representatives of the parties (being the officers having day to day responsibility for or
knowledge of the area which is the subject of the dispute) shall meet within 3 working days. If they
are unable to agree a resolution at such meeting or if there shall be no appropriate officers of each
of the parties available to attend such meeting then move to Stage 2.
Stage 2: The relevant Representatives or their nominated deputies who must be of a more senior
position than those dealing with the dispute at Stage 1 shall meet within 3 working days. If they are
unable to agree a resolution at such meeting or if there shall be no appropriate officers of each of
the parties available to attend such meeting then move to Stage 3.
Stage 3: The Housing Director of the Council and the Director of Lampton 360 or their nominated
deputies shall meet within 3 working days.
In seeking to resolve any dispute considered under Stage 1, Stage 2 or Stage 3 the parties shall apply
the following principles:-
o A spirit of mutual trust and co-operation.
o Both parties shall bear their own costs.
o Any unanimous decision shall be implemented.
Disputes remaining unresolved after following the procedure set out above and referred to an
expert unless LBH through a Representative makes a decision on the matter or matters in dispute
within 20 working days of the Stage meeting.
Any decision made by LBH under the dispute procedure set out above shall be final and
binding on the parties (save in the event of fraud or a mistake in law or material fact)
The Expert’s decision be final and binding on the parties (save in the event of fraud or a
mistake in law or material fact)
The result of any dispute resolution procedure under this Clause shall where and to the
extent necessary and appropriate be reflected in a variation to the provisions of this contract
Until such time as a dispute between the parties is resolved the parties shall continue to
comply with their respective obligations under this contract
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General Provisions
Rights and Ownership
LBH retains all rights, titles and ownership of any shared or transferred assets. In delivering the
Services and Planned Works agreement - Lampton 360 will not dispose of such assets without
written consent (which consent may be given or refused at LBH absolute discretion) even where
ownership has transferred to Lampton 360
Annual reviews of this agreement
Each year in October, an annual review of the operation of this agreement will be led by LBH. The
review will follow the procedure set out in [schedule xx]
Reserved Decisions
In undertaking its obligations under this agreement, L360 will obtain the prior written approval from
LBH in relation to the following Reserved Decisions ;
Passing any resolution for ending or presenting any petition for the dissolution of this
contract
Amending the agreement content including its appendices
Declaring, authorising or distributing assets of any kind to a shareholder or any other party
Insurance
L360 shall ensure it has all appropriate insurances in place as required by law and shall
inform and update LBH regularly in pursuant to the delivery of its services.
Liability
L360 shall indemnify LBH against all liabilities, costs, expenses, damages and losses suffered
by LBH in pursuant to the delivery of its services
No assignment
No party shall be entitled to assign this agreement or any of the rights hereunder to any
other party
Notices
Any notice or other communication under this agreement shall be sufficiently served if ;
served personally on the other party or
sent by prepaid first class post to the addresses given at the head of this Contract or
by electronic mail to the central email addresses given in the parties' websites and subject to
proof to the contrary,
shall be deemed to have been received on the second working day after the day of posting
or on successful transmission, as the case may be.
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Definitions and interpretations
The definitions used are as follows:
Service Delivery Business Plan means the delivery plan submitted by L360 for approval by
Hounslow Housing
Hounslow Housing representative means Hounslow Housing Chief Officer or such other person
with a similar role who may be nominated from time to time by Hounslow Housing
Lampton 360 Representative - means L360 Managing Director of Operations or such other person
with a similar role who may be nominated from time to time by L360
Council’s Policies – means the policies (as revised or amended) of the Council or central
government or any additional policies of the council notified to L360
Representatives means collectively the Council's Representative and L360 Representatives.
HRA means the Housing Revenue Account.
Shared Services – means the services that L360 may require and that LBH will need to enable for
the delivery of services by L360
HRA 30 Year Business Plan describes LBH strategic vision and how it intends to make the best use
of resources in the HRA.
Performance Management Framework means a selection of performance measures from which
LBH will assess the quality of the services performed hereunder by L360
Agreement – means the arrangements agreed with L360 and LBH as outlined within this document
Works and Services means the services and any other services which from time to time are agreed
and to be provided by L360
Services Fee means the Fee payable to Lampton 360 for the provision of the Services in accordance
with [Schedule x].
Works Fee means the fee payable to L360 for the delivery of Works
Fees means together the Services and Works Fee
Value for money means the amount of benefit provided to Hounslow Housing, as well as the
council’s Tenants and Leaseholders in proportion to the amount of resources available
Sub-contracts means contracts tendered, procured and project managed by L360
Standard means a standard imposed by the Regulator on registered providers of social housing and
LBH as the local housing authority. This incorporates local standards and the level of service
Tenants and Leaseholders can expect from LBH
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Stock Maintenance Programme means the programme contained in the HRA Business Plan 20xx/xx
Tenant means a tenant of the Council occupying a Council dwelling under a tenancy as his/her
principal home.
Data Protection Legislation means the Data Protection Act 1998 and all applicable laws and
regulations relating to the processing of personal data and privacy, including where applicable the
guidance and codes of practice issued by the Information Commissioner.
Personal Data: has the meaning set out in the Data Protection Act 1998.