Cabinet Member Report
Date: 16 December 2009
Subject: Q102 Revised Scheme & Estimate for Repairs and
Cyclical Maintenance to Rossetti, Ruskin, Stubbs and
Turner Houses for MEMO
This report sets out the details of a Scheme and Estimate for External Repair Works
and the Cyclical Decoration of Rossetti, Ruskin, Stubbs and Turner Houses, London
The total cost of the works is estimated to be £1,830,336, inclusive of professional
fees, excluding VAT.
The works are to be funded from Revenue and Capital. The Capital element is
estimated as £1,519,492 and the Revenue element, which will be partly met from the
MEMO Cyclical Decorations Account, is £310,844.
Millbank EMO has the revenue element necessary to enable these works; the works
can therefore start in this financial year. The capital funds necessary is sought from the
2010-11 financial year which will enable the anticipated spend in the forthcoming
financial year. The financial breakdowns are attached at Appendix 1.
1) That for the purposes of Financial Regulation B.8 the Cabinet Member for
Housing approves the expenditure totalling £1,830,336, inclusive of professional
fees for the works detailed in this report.
City of Westminster Report
Cabinet Member: Cabinet Member for Housing
Date: 16 December 2009
Classification: General Release
Title of Report: Q102 Revised Scheme & Estimate for Repairs
and Cyclical Maintenance to Rossetti, Ruskin,
Stubbs and Turner Houses for MEMO
Report of: Chief Executive, CityWest Homes
Wards involved: Vincent Square Ward
Policy context: Housing Service Aim 2 – To provide excellent
housing management services’.
To maintain and improve the stock based on
stock condition and residents views.
Financial summary: The cost of the proposed work is £1,830,336
inclusive of works, professional fees and
contingencies. £1,519,492 funded from the
Capital Programme and £310,844 from Revenue.
Report Author: Annelie Sernevall
Contact details Tel: 020 7976 5788
1. Background Information
1.1 The Millbank Estate Management Organisation is a Tenant Management
Organisation (TMO), a managing agent for Westminster City Council. The TMO
is provided with funds to undertake the works and employment of consultants
and contractors to obtain best possible quality of work at the most competitive
price to ensure that the housing stock on Millbank Estate is managed and
maintained as necessary. This undertaking of responsibility is outlined in the
Modular Management Agreement Chapter 2.
1.2 The Modular Management Agreement outlines the responsibilities of the TMO
and the responsibilities of the Council. Chapter 2 schedule 6.2 outlines the
procedure in case the allowance made available does not meet the required
1.3 Rossetti, Ruskin, Stubbs and Turner House are purpose-built blocks of 30, 55,
30 and 60 properties respectively, each comprising a mix of studios, one, two
and three bedroom flats. The blocks are four storeys high with solid brick
external walls and timber windows and concrete floors. They have tiled pitched
roofs with dormers, asphalt gutters and parapet walls.
1.4 The exterior painted elements of both blocks require redecoration. The pitched
roofs are in satisfactory condition whilst the parapet walls, dormers and gutters
require significant repair, particularly to Ruskin House. Other repairs include
timber repairs, renewal of isolated sashes and sills to the windows.
1.5 The asphalt covered parapet gutters are beginning to fail and dampness is
penetrating a number of high level flats. All painted surfaces require renewal
and the timber windows are rotten in areas and need repair.
1.6 The external decorations to these blocks are overdue. They were last decorated
over 10 years ago. The Council has an obligation to ensure that funds are made
available to ensure that these blocks are maintained accordingly to ensure that
the structure of tenants and lessees properties are kept in a decent state of
2.1 The objectives are to maintain the building effectively and to comply with
The works will include the following:
Remedial works to water ingress affected properties.
Flat entrance door renewals
Joinery overhauling including renewal of draught proofing, installation of window
Replacement floor coverings
Repairs to timber windows
Repair of parapet walls, gutters and roof pitches
Repairs to render surfaces
Repairs to brick surfaces
Redecoration of all external painted surfaces
Redecoration of previously painted surfaces to internal common areas
2.2 The cost estimates have been provided by consultants.
2.3 The contract period is estimated to 26 weeks.
2.4 Professional fees of 5.75% inclusive of CDM coordinator, 1.5% Frame work fee
as well as MEMOs fees of 1% are incorporated in the cost estimate in section 9.
2.5 Works were tendered as part of a larger scheme in November 2007.
These were not progressed due to a lack of adequate funds at that time.
2.6 The decision of not proceeding with the works in 2007 is documented and
signed on the 14 November 2007 by the contractor who was awarded the
2.7 The programme of works is outlined in the table below.
Scheme & Estimate Report Approval 15th October 2009
First Stage Section 20 issued May 2009
Scheme & Estimate Approval Cabinet November 2009
Tender Project November 2009
Tender Acceptance Report Approval December 2009
Second Stage Section 20 issued December 2009
Start on Site January 2010
Practical Completion June 2011
Final Account July 2011
End of Defects June 2012
3. Financial Implications
3.1 The budget for this scheme comes from both Revenue (2009/10) and Capital
(2010/11 – 2011/12).
3.2 MEMO would like to undertake this work as a single contract with the work
proposed to Turner and Stubbs House, funding permitting, proposed to take
advantage of economies of scale. The works to Ruskin and Rossetti House will
be completed first with the work to Stubbs and Turner following. This will result
in value for money with regards to scaffolding in particular.
3.3 There is no budget allocation for the scheme in 2009/10, however the £25k will
be funded from savings identified in Contract no M130 Churchill Gardens
3.4 The total cost of the scheme inclusive of the works and professional fees is
estimated to be £1,830,336, excluding VAT. The works are to be funded from
Revenue and Capital. The Capital element is estimated as £1,519,492 and the
Revenue element, which will be partly met from the MEMO Cyclical Decorations
Account, is £310,844.
3.5 These blocks need to be incorporated in the 7 year cyclical cycle for external
3.6 The works will be competitively tendered.
3.7 Works will be procured through either the CWH or the Cyntra (LAPN)
Frameworks or through the CompeteFor tender process as agreed with the
CWH Procurement Manager.
3.8 Combining the contract for the 4 blocks will enable savings due to economies of
3.9 The appointed consultant has estimated that there would be a saving of £20,000
if the scheme is carried out in one phase rather than phasing it over two years.
3.10 In order to carry out the contract in two phases it would be necessary to remove
and re-establish the site based accommodation, additional management
charges for sub contract procedures plus potential additional scaffolding cost to
remove from site then bring back to site; this is estimated to cost £20,000.
4. Legal Implications
4.1 There are no legal implications arising from this report.
5. Outstanding Issues
5.1 There are no outstanding issues arising from this report.
6. Lessee Implications
6.1 The table below indicates the estimated cost of works per block
Millbank Estate Nos. of Flats
30 (26 L/H)
30 (14 L/H)
6.2 There are lessee implications arising from this report.
6.3 The Notice of Intention under schedule 4 part 2 as defined by Section 20 ZA of
the Landlord and Tenant Act 1985 (as amended by the Common-hold and
Leasehold Reform Act, 2002) was issued on 8 May 2009.
6.4 On the basis of the total estimated costs of £1,830,336 inclusive of fees, but
excluding non-contract specific administrative on-costs, the estimated costs
recoverable from lessees are £1,006,718.
6.5 Details of lessee breakdowns can be found in Appendix 2
6.6 LESSEE PAYMENT OPTIONS
The City Council is able to offer a range of options for paying major works bills.
Lessees can pay an estimated bill by regular instalments over 1 or 2 years with
no interest or administration costs. Owner-occupiers (i.e. excluding landlords)
with bills over £5,000 can be repaid over 5 years with interest at 1% over the
base rate in years’ 3 to 5. Lessees who are unable to pay their account in full
from their income or savings can apply for a loan from the Council if they are
unable to obtain a loan privately. Lessees who can demonstrate financial
hardship can apply to defer payment of a Council loan. Interest may be waived
on the loan where the charge is over £10,000 and the lessee meets certain
7.1 The works will be procured and managed by the TMO with the assistance of
Consultants that provides the technical expertise as well as necessary CDM
coordination. This provides an excellent example of resident empowerment with
residents at the heart of key decision making. Residents will be consulted
throughout the development of this project.
7.2 The Section 20 Lessee Consultation process will be applicable to the works
under the Landlord and Tenant Act 1985 and will commence on Contracts
Board approval of this scheme and estimate report.
7.3 Resident Consultation is outlined in the table below:
(Consultation on this project commenced in March 2009 when the scheme was
first proposed. This has continued in newsletters since. Further consultation is
to be undertaken as outlined below)
Date Type Issues Actions
Update & invite to
March 09 General letter Estate Director
Open meeting – Estate Director &
Discuss works to
July 09 6.00 pm in Consultant
be carried out
community hall Surveyor
Advising of Bid &
December 09 General letter Estate Director
and invite to meet
General Details of work,
December 09 Surveyor,
meeting schedule etc
7.4 All the ward members for the area have been advised of the proposed
scheme and have been invited to comment. They have been provided with
information on the consultation being undertaken and been invited to attend the
public meetings and the working group meetings. No comments have been
received to date.
8. Health and Safety Issues
8.1 The Construction (Design and Management) Regulations 2007 will apply to this
contract. The appointed CDM Coordinator will prepare the Pre Construction
Information. The main contractor will develop detailed method statements that
will be reviewed.
8.2 The Contractor will complete the City of Westminster Working with Residents in
Occupation Charter to include all possible scenarios, which will affect the
progress of the works when working with residents in their own homes
9. Risk Appraisals & Management
9.1 The TMOs database and local knowledge will provide the basis of the
information of any category of potentially vulnerable residents provided to the
contractor prior to work starting on site.
9.2 In addition the Open Housing Management System (OHMS) will be interrogated
to identify any additional potentially violent residents as well as residents with
special needs such as language or disability, before works start on site.
9.3 Close liaison will be kept with the TMO office during the course of the contract
and the TMO office will carry out all programme management and customer
liaison duties necessary for this project.
9.4 Contractors will be required to demonstrate suitable experience of working with
10. Crime and Disorder Act 1998 Implications
10.1 There are no Crime and Disorder implications arising from this report.
11. Disability Discrimination Act (DDA) 2005 Considerations
11.1 There are no DDA considerations arising from this report.
12. Environmental Matters
12.1 Consideration will be given to alternative sustainable solutions/products at the
appropriate time. However, as the works will primarily be repairs there will be
little scope for anything other than traditional materials to match existing.
12.2 Where timber elements are replaced they will be specified from sustainable
12.3 The works will affect energy saving.
13. Reasons for Decision
13.1 The scheme is identified in the five-year capital programme as requiring works.
13.2 The works are required for Westminster Council to comply with repairing
responsibilities under the leases.
If you have any queries about this report or wish to inspect any of the
background papers, please contact Annelie Sernevall annelie@millbank-
emo.co.uk telephone 020 7976 5788 Estate Director Millbank Estate
Modular Management Agreement
Appendix 1 – Breakdown of costs
Appendix 2 – Lessee implications
Appendix 1 – Breakdown of costs
Cost Estimate Capital Revenue Total
Access 335,475 335,475
Roof Repairs 120,480 120,480
Rain Water Goods 8,460 8,460
Elevational Repairs 33,300 33,300
Joinery Repairs 220,020 220,020
Joinery Overhauling 177,223 177,223
External Decorations 139,047 139,047
Internal Decorations 114,338 114,338
Provisional Window and
Door Renewals 135,045 135,045
Flooring Works 33,443 33,443
Miscellaneous Repairs 6,169 6,169
Provisional Sums inc
Structural repairs 78,000 78,000
15% 210,150 210,150
Approx 5% 80,550 80,550
Total Estimated Cost of
Work Element 1,398,703 292,997 1,691,700
MEMO Fee 1%
including CDM 5.75% 80,426 16,847 97,273
Frame Work Fee 1.5% 25,376 25,376
CWH Fees including
audit 1,000 1,000 2,000
Total Scheme and
Estimate 1,519,492 310,844 1,830,336
Year 09/10 10/11 11/12 TOTAL
Capital Revenue Capital Revenue Capital Revenue
£1,000 £1,000 £2,000
fee £25,376 £25,376
£25,000 £16,847 £38,909 £16,517 £97,273
£292,997 £648,947 £669,206 £1,611,150
£25,000 £309,844 £808,769 £1000 £685,723
Appendix 2 - Lessee Implications
MAJOR WORKS BILLING
SCHEME AND ESTIMATE REPORT INFORMATION
Repair works and cyclical maintenance /
CONTRACT:- Q102 TOTAL £1,006,718. HTX
CHARGEABLE = 20
ESTATE OFFICE :- 80 Start 05-Oct-09 Finish Date 25-Jun-10
Works % Works with ALL
Repairs and £284,000.00 20.27% £366,481.58
Repairs and £403,500.00 28.80% £520,687.73
Repairs and £297,000.00 21.20% £383,257.14
Repairs and £416,500.00 29.73% £537,463.30
£1,401,000.0 100.00% £1,807,889.75
For completion by the Cabinet Member for Housing.
Declaration of Interest
I have no interest to declare in respect of this report
Signed ……………………………. Date ………………………………
NAME: Cllr Philippa Roe, Cabinet Member for Housing
I have to declare an interest
State nature of interest ……..……………………………………………
Signed ……………………………. Date …………………………………
NAME: Cllr Philippa Roe, Cabinet Member for Housing
(N.B: If you have an interest you should seek advice as to whether it is appropriate to
make a decision in relation to this matter.)
For the reasons set out above, I agree the recommendations in the report entitled
Q102 Revised Scheme & Estimate for Repairs and Cyclical Maintenance to
Rossetti, Ruskin, Stubbs and Turner Houses for MEMO and reject any alternative
options which are referred to but not recommended.
Cabinet Member for Housing
For Ward Specific Reports Only (Delete if report affects more than one
In reaching this decision I have given due regard to any representations made
by relevant Ward Members.
Cabinet Member for Housing
If you have any additional comment which you would want actioned in connection with
your decision you should discuss this with the report author and then set out your
comment below before the report and this pro-forma is returned to the Secretariat for
Additional comment: …………………………………………………………………
NOTE: If you do not wish to approve the recommendations, or wish to make an
alternative decision, it is important that you consult the report author, the Head of Legal
Services, the Director of Finance and, if there are staffing implications, the Director of
Human Resources (or their representatives) so that (1) you can be made aware of any
further relevant considerations that you should take into account before making the
decision and (2) your reasons for the decision can be properly identified and recorded,
as required by law.
Note to Cabinet Member: Your decision will now be published and copied to the
Members of the relevant Policy & Scrutiny Committee. If the decision falls within
the criteria for call-in, it will not be implemented until five working days have
elapsed for any call-in request to be received.