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Council report finds ‘dishonourable culture’ among housing contractors
A report into £246m of housing contracts with Hackney Council has found that aggressive pricing, excessive claims for works and “dishonourable culture” were “common” among contractors.
It found that while large, long-term partnering contracts had helped facilitate significant investment in the council’s housing stock, “the vision of [these] contracts achieving true partnership working [has] been misguided”.
Instead, it suggested that “stark examples of poor behaviour” had become apparent, particularly where contractors were engaging in “aggressive pricing… in the form of underpricing at tendering stage, followed up by overpricing during the contract’s life cycle”.
No individual contractor was identified in the report as carrying out the actions described.
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The report looked into contracts for the delivery of the council’s improved kitchens, bathrooms, roofs and windows investment programme; major works on communal and structural parts of buildings; and services including the maintenance of lifts and door entry systems.
In response, Hackney Council said it had recently moved a number of contracts for housing back in-house and now uses external consultants to carry out checks on the information put forward by potential contractors.
It has also brought the clerk of works inspection post back in-house.
Clayeon McKenzie, cabinet member for housing services at Hackney Council, said: “The report is based on information gathered during non-formal interviews with council officers two years ago, and includes ways of working that have been superseded by new and improved methods and scrutiny.
“Nevertheless, the council acknowledges that there can be significant challenges in managing complex contracts. Therefore, we are undertaking a major review of old contracts to inform a new procurement strategy.”
