Agenda item

To consider a report by the Wales Audit Office (copy enclosed) on the external audit Procurement Review of School Building Maintenance Works.

A report by the Wales Audit Office (WAO), on the procurement review of school Buildings Maintenance Works, had been circulated previously.

The WAO representative (WAOR) introduced the report, Appendix 1, which requested consideration of the recommendations and the Council’s responses.  Members attention was invited to the summary report, page 22, which detailed the purpose of the work undertaken following the receipt of correspondence from a contractor regarding specific issues in relation to procurement arrangements in respect of schools’ building maintenance works, and wider elements of procurement specifically relating to construction contracts.  The conclusions contained in the report were summarised by the WAOR for the Committee.

During the ensuing discussion the following questions and issues were raised and responses provided:-

-                  The Property Manager (PM) provided details pertaining to the number of Contractors on the Approved List (AP), the criteria and process for the inclusion of Contractors on the AP, the requirements of the pre-qualification questionnaire and the process for the removal and reinstatement of Contractors to the AP.

-                  Reference was made to the importance of the receipt of feedback from schools on the standard of work undertaken by contractors, and the possibility of undertaking spot checks to examine work carried out.

-                  The HLDS provided details of the legal implications in respect of public liabilities, and sanctions which could be imposed, if external Contractors or Council employees contravened or ignored statutory rules and regulations when undertaken work.  The need to have procedures in place and to manage them adequately was emphasised.  The PM stressed the importance of reporting any breach of rules and regulations, such as Health and Safety Regulations, to ensure that the appropriate sanctions could be imposed and risks eliminated.

-                  An assurance was provided by the PM that the framework for advertising for Contractors to be included on the Approved List would be reviewed once the disciplines to be covered had been determined.

-                  The WAOR referred to observations made regarding the need for improvements in quality control procedures, with regard to pricing, and to communication and the assignment, allocation and monitoring of jobs within the process.  Councillor J. Butterfield emphasised the importance of providing support for local communities in Denbighshire when forming the accredited list.

-                  There having been no evidence of the current use of aggregation was raised by Mr P. Whitham, and the WAOR confirmed that this could present a potential risk to the Council but had not been considered as part of the very specific scope review.  Mr Whitham felt that the provision of a time frame for the introduction of a framework would be critical to the respective Contractors. 

-                  Mr Whitham referred to paragraph 25 on page 26 and suggested that reference to “arrangements at a local level for officers to declare, manage and monitor relationships between Council officers and contractors” should also include gifts and hospitality.

-                  The PM responded to a question from Mr Whitham and confirmed that “with regard to client expectations to have service delivery restored ASAP”, page 26, each request received was treated as reactive works and not as an emergency. 

-                  Confirmation was provided by the PM that preferred contractors requested by respective schools could be utilised if they were on the Approved List.

-                  Councillor P.C. Duffy expressed concern that estimates and quotations were not required for works under specified sums.  The PM explained that the amounts had been specified within the procurement rules.

-                  The WAOR provided confirmation that the Procurement Review – School Building Maintenance Works Report would be available in Welsh.

-                  It was explained that the pricing of contracts with a view to securing the services of local contractors would primarily depend on price and quality, best value through volume and the demonstration of sound value for money.

-                  The HIA and WAOR agreed to liaise and present a joint follow up progress report to the 3^rd September, 2014 meeting of the Committee, to include details of the Council’s response to the recommendations and details of the implementation dates.

Following further discussion, it was:-

RESOLVED – that Corporate Governance Committee:-

(a)            receives the report and notes the recommendations and Council’s responses, and

(b)            agrees that the Head of Internal Audit and Wales Audit Office present a joint report to the 3^rd September, 2014 meeting of the Committee, to include details of the Council’s response to the recommendations and details of the implementation dates.