What was our brief?
Cyntra (formerly LAPN) is a central purchasing body (buying club). Its members are currently ten London Arms Length Management Organisations, although they are looking to extend this. Cyntra’s purpose is to develop partnering frameworks and contracts for their members with a number of contractors undertaking work in eight different workstreams. They claim that these frameworks have saved their members over £15m. Cyntra subsequently also wished to develop consultancy contracts within the same consortium.
Cyntra initially set up framework agreement with the benefit of funding from the “National Change Agent” (NCA) programme. We were not involved in Cyntra’s initial procurement strategy or leaseholder consultation. However, Cyntra became disillusioned with the proposal to use the PPC/TPC contracts as part of the framework agreements under the NCA initiative. This, together with the recommendation of the New Engineering Contract (NEC) as the preferred contract suite for the public sector by the Office of Government Commerce, led to Cyntra deciding to use the NEC for all its contracts. At that stage we were brought in to draft standard contract documentation for the NEC contracts.
What did we do?
Significant work was required to integrate leaseholder consultation into the process. The Leasehold Valuation Tribunal (LVT) had refused a dispensation from leaseholder consultation that Cyntra’s previous solicitors had applied for. We helped Cyntra analyse the merits of appealing the LVT decision compared with carrying out leaseholder consultation. We recommended ways in which Cyntra could undertake the leaseholder consultation so as to minimise the costs, delays and risks for Cyntra members resulting from the LVT decision.
Our main work was to develop standard template NEC Term Service Contracts and Engineering and Construction Contracts. These were for Cyntra members to use for a variety of work types, including asbestos removal, cyclical decoration, “Decent Homes” and improvements, and gas servicing and installation. The development of these template contracts was done in a particularly collaborative way to secure “buy in” from the Cyntra members. The potential value of these contracts is over £1billion.
We have subsequently set up frameworks for consultants (with a template Professional Services Contract) and for digital TV services.
Recently, we have run a number of practical training sessions on the model contract documentation. We continue to advise on the model contracts ensuring they remain up to date, and also advise on other ongoing work, including drafting improved confidentiality and copyright provisions for Cyntra’s own employment and services contracts.
How did we add value?
Cyntra benefited greatly from the experience of Ross Hayes. Ross is a qualified engineer and Project Manager who wrote the flowcharts for various NEC contracts including the Term Service Contract. He is a Thomas Telford accredited trainer on the NEC.
Our familiarity with the NEC, standard briefing notes and model contract clauses for local authorities, ALMOs and housing associations meant that we were able to carry out this work in a highly efficient and cost-effective way.
Our practical approach to integrating leaseholder consultation into the existing procurement process enabled the clients to continue the procurements, despite the adverse LVT decision.
Our team was led by Ross Hayes, Consultant and Project Manager (non-solicitor) and included Andrew Millross (Partner) and Richard More (Associate), together with Jonathan Cox (Partner) on the service charge issues.
If you would like to discuss this further please contact Andrew Millross on 0121 214 3637 or andrew.millross@anthonycollins.com