Thursday, 02 September 2010

Inspace questions fairness of investigation into partnership agreement

Row delays Colchester decent homes plan

An arm’s-length management organisation has had to push back the completion date on its decent homes programme after its relationship with a contractor broke down.

Colchester Borough Homes had initially been due to complete work to make all of its tenants’ homes decent by 2007 but that has now been pushed back to 2010.

The problem, discussed in a meeting with councillors last month, arose following a partnership agreement the council signed with contractor Inspace, which saw it bill the ALMO for work after it was completed, rather than agreeing a price beforehand.

This ‘fully reimbursable’ approach lasted for nearly three years of the decent homes programme, which began in 2003. To date 75 per cent of the ALMO’s homes have been made decent. But the programme has been delayed after it was put on hold by the council in March last year. Two months later it decided to end the contract with Inspace. The authority has predicted the delays will be partly responsible for the 14 per cent swell in its £45.4 million decent homes budget.

But Inspace has questioned the fairness of an audit of the contract, commissioned by the council, saying that it was not asked to contribute.
‘Throughout the contract Inspace provided regular, transparent data on costs and completions to inform the investment and programme decisions to be taken by CBH,’ a spokesperson for Inspace said.

‘The report as presented can only represent one side of events; and particularly so as its author appears to have been employed by CBH in a management capacity during the period that the report relates to.’

The ALMO’s chief executive, Greg Falvey, said: ‘Inspace left by mutual consent last year.

‘We are now engaged in the direct provision of repairs and maintenance using our own operatives.’

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