SOCIAL DEVELOPMENT COMMITTEE MOTION
Covering letter from the Committee Chairperson to all MLAs
Mr David Simpson MP MLA
CHAIRPERSON OF THE COMMITTEE FOR SOCIAL DEVELOPMENT
To All MLAs
Social Development Committee Motion
Egan Contractors and the Decent Homes Standard – 22 June 2009
As you will be aware, the Business Committee has scheduled the following Social Development Committee motion for debate on Monday 22 June 2009:
“That this Assembly calls on the Minister for Social Development, in view of the adverse economic impact suffered by the employees of Egan contractors, to increase the budget allocation for Decent Homes and related programmes and to ensure that future communication with contractors complies with Egan principles.”
The Social Development Committee has made the following information available to all Members in advance of the debate
Annex A is a copy of a paper produced by Egan contractors and considered by the Social Development Committee on 21 May 2009.
Annex B is an Information Pack produced by Assembly Research and Library Services.
Annex C is a copy of a press release produced by the Northern Ireland Housing Executive.
Egan Contracts
In 1998, the Construction Task Force, led by Sir John Egan, produced the 'Rethinking Construction' report. The report recommended that, in order to achieve its full potential, the construction industry needed to replace competitive tendering with long term relationships based on clear measurements of performance and sustained improvements in quality and efficiency. The Egan approach to contracts was intended to give the contractor more security through longer term contracts while providing incentives to get things right the first time by making the contractor responsible for the design and maintenance of improvements.
Further information on the Egan recommendations can be found at the following link:
http://www.constructingexcellence.org.uk/pdf/rethinking%20construction/rethinking_construction_report.pdf
In August 2000, the Housing Executive adopted the principles within the Egan Report for introduction on an incremental basis, with 2 Egan contracts being awarded for major heating installations across Northern Ireland. Since then Egan contracts have been entered into for a range of the Housing Executive’s activities.
Egan contracts were awarded in 2008 for External Cyclical Maintenance (ECM), Kitchen and Bathroom Replacements and other maintenance work. The Department advises that these contracts were designed to be a long term partnership with contractors but included no absolute guarantee of work in any particular year.
Related information can be found at the following links:
http://assist.assemblyni.gov.uk/services/rsrchlib/research/reports/dept/socialdev/2008/betts13008.pdf
http://www.dsdni.gov.uk/index/hsdiv-housing/registered_housing_associations/ha_guide/hag.pt4/hag.pt4.app2/hag.pt4.app2.annexd
Decent Homes Standard
The Kitchen and Bathroom Replacement work in Housing Executive properties is designed to support the achievement of the Decent Homes Standard. In order to meet the Decent Homes Standard, a dwelling must
- Meet the statutory fitness standard – be structurally stable; be free from serious disrepair; be free from serious dampness; have adequate lighting heating and ventilation; have a suitably located kitchen, bathroom, WC etc.;
- Be in a reasonable state of repair;
- Have reasonably modern facilities i.e. some of the following: a kitchen (less than 20 years old); a bathroom (less than 30 years old); adequate insulation again noise etc.; and
- Provide a reasonable degree of thermal comfort.
The Housing Executive estimated in 2006, that, 77% of Housing Executive homes met the Decent Homes Standard.
A report on the condition of the Housing Executive’s housing stock has been produced by Savills and is expected to be published shortly. The Department has indicated that around 11,000 Housing Executive homes will fail to meet the Decent Homes Standard.
Additional information can be found at the following links:
http://www.nihe.gov.uk/index/about-us-home/our_objectives/decent_homes_standard.htm
http://www.nihe.gov.uk/index/about-us-home/our_performance/2008_annual_report/chief_executives_management_commentary/delivering_the_decent_homes_standard.htm
http://www.nihe.gov.uk/index/about-us-home/media_centre/key_issues/housing_conditions/disrepair.htm
Housing Executive Budget
The Minister briefed the Committee for Social Development on the Department’s budget on 26 March 2009. The Minister advised that owing to budget pressures, the Decent Homes element of the Planned Maintenance spend was to be reduced from £49m in 2008-09 to around £16m in 2009-10.
The Department has advised that it will seek further support under upcoming monitoring rounds but that if this is unsuccessful, no further Decent Homes contracts will be awarded until the final quarter of 2009-10.
The Housing Executive’s maintenance budget for 2009-10 is as follows:
| Description |
Budget | Comments |
|---|---|---|
| Reactive Maintenance | £44m |
(includes emergency/urgent/routine/change of tenancy repairs; heating maintenance; voids reinstatement; disabled adaptation; and redecoration grants) |
| Decent Homes | £16m |
|
| Grounds Maintenance | £9.3m |
|
| General Maintenance | £10m |
(includes Heating Servicing) |
| Other Maintenance | £47.7m |
(Contractually committed from the previous year and includes: ECM; disabled adaptations; electrical inspections; asbestos removal; and service contracts etc.) |
| Total | £127m |
It is hoped that the information provided will be of benefit to Members. If further information or clarification is required, please contact the Clerk to the Social Development Committee.
Yours sincerely