Agenda item - Overpayments on the housing repairs and improvement contract

Extract from the proceedings of the Housing & New Homes Committee meeting held on the 13^th January 2016, together with a report of the Interim Executive Director for Environment, Development & Housing (copies attached).

81.1.      Councillor Meadows introduced the report which had been referred to the council for information and concerned the results of an internal audit review of overpayments identified by the council in respect of contracted housing repairs.  She noted that action had been taken to recover the funds and that the contractor had amended its procedures to prevent such a situation from occurring in the future.  She also noted that a follow-up report would be made to the Housing & New Homes Committee next year.

81.2.      Councillor A. Norman stated that as Chair of the Audit & Standards Committee the internal review process had highlighted the value of such action and welcomed the action to ensure procedures were improved.  She also stated that should an external review be undertaken then she would not expect the costs of such a review to fall on tenants and that it would have tight specifications.

81.3.      Councillor Robins suggested the main problem was the over-use of sub-contractors and a failure to monitor their work effectively.

81.4.      Councillor Bell welcomed the report and stated that it highlighted the need to monitor work closely and have a person responsible for reporting back to the council on the quality of the work i.e. a Clerk of Works.

81.5.      Councillor Taylor noted that Members had not had sight of the full report on the matter and questioned whether it would be made available so that they could give consideration to the recommendations referred to in the covering report that went to committee.  He welcomed the intention to bring a further report to the Audit & Standards Committee and hoped that it would detail the full recommendations of the audit review.

81.6.      Councillor Druitt stated that he was concerned about the design of the contract and that the company involved had an obligation to monitor its actions.

81.7.      Councillor Gibson stated that it appeared the contractor had no incentive to monitor the work being undertaken on their behalf and felt that an external oversight of such contracts paid for by the contractor would be a useful approach.

81.8.      Councillor Peltzer Dunn noted that whilst the matter had been looked at, the same sub-contractor had also been engaged in 2012 and that period had not been investigated.  He suggested that it was something that the Housing & New Homes Committee should have considered and suggested that the Chair give thought to its inclusion as part of the continued review of the situation with an update to the council in due course.

81.9.      Councillor Mears stated that it was one of the largest contracts awarded by the council and it needed to be assured that it was being managed effectively and operated properly.  She felt that there was a need to reassure tenants that money was being spent appropriately and that an external review would provide some transparency into the matter.

81.10.   Councillor Miller stated that he supported the request for an external review to be undertaken and not by the contractor.  He believed there were a number of lessons to be learnt from this matter and hoped that they would be taken on board for the future.

81.11.   Councillor Meadows noted the comments and stated that the contractor had been responsible for quality checks and had taken action to increase the number of surveyors used to undertake those checks.  She had asked for bi-annual reports on the contract to committee and noted that there were other investigations on-going and that the council was to be reimbursed by the contractor.

81.12.   The Mayor noted that the report had been referred for information and moved that it be noted.

81.13.   RESOLVED: That the report be noted.