Question

To ask the hon. Member for Mole Valley representing the House of Commons Commission, how the Commission decides when repairs and renovations to the parliamentary estate are required.

The process by which repair and renovation of the Palace of Westminster is procured – whether for the purpose of the longer-term Restoration and Renewal Programme, the Medium Term Investment Plan, or otherwise:

1. is shaped by objectives specified in an Outline Business Case produced in accordance with the Treasury Green Book Five Case model;
2. is resolved by a contract awarded through an open and competitive tender procedure that is compliant with the Public Contracts Regulations 2015;
3. takes into consideration whether compliant collaborative procurement options, where available, are a viable option according to the scope of the work;
4. includes a specification and range of award criteria which are representative of, and will be capable of realising, the value-for-money objectives determined by the respective Outline Business Case;
5. may be considered within a higher level Gateway Review Assurance process where considered appropriate.

The default position in the Houses’ Procurement Policy is to set evaluation criteria weightings of 70% for price and 30% for quality. We expect these ratios to be applied when procuring repair and renovation works. The House Procurement Policy goes on to provide a waiver process by which a justification and recommendation can be made to vary these weightings according to circumstances and value-for-money considerations specific to a given procurement. A contract that looks to transfer a higher level of responsibility and liability for design to the contractor is a common example of where the balance in weighting may be moved towards quality as a consequence of a waiver application.

The need for repairs is determined with reference to a number of factors: condition surveys of the Estate; an annual exercise to prioritise the portfolio of projects; inspections carried out on a quadrennial basis; advice from the House’s Design Authority; and calls to the PED Helpdesk. In particular:

1. A comprehensive condition survey of the Estate was carried out in 2008/09, the results of which fed into a 25-year plan. This survey identified a significant number of defects, the works for which were all priced and given recommended completion dates. These tasks were then packaged minor or major projects and added to the scope of existing works within the 25-year plan.
2. Following on from this comprehensive survey, there is a rolling programme of condition surveys every two years, which similarly identifies defects and further work.
3. An annual exercise is undertaken by senior managers, including the Director General of Facilities and the Finance Director, to assess and prioritise the portfolio of projects in order to inform the Medium Term Investment Plan for the following four-year period. Projects are prioritised, taking the following factors into account:

• compliance with legislative or contractual requirements;
• business objectives;
• mitigation of the risk of failure to services;
• conservation of the fabric of the buildings.

The Medium Term Investment Plan is then considered by the Finance Committee before being approved by the House of Commons Commission.

1. The Palace of Westminster is a Grade 1 listed building, and PED follows best practice by ensuring that an inspection is carried out every four years by the Conservation and Architectural Team. These inspections identify tasks which should be carried out to ensure the fabric of the building is maintained properly.
2. The PED Design Authority, established in 2011, is committed to “ensure consistent standards, value for money, statutory compliance and user satisfaction”. Practically, it concentrates on the lifecycle of the engineering assets, ensuring that initial and replacement capital costs are balanced with the ongoing operating and maintenance costs, and with identified business needs. It acts as a Central Engineering department, and advises on the requirements for works and systems and services across the Parliamentary Estate.
3. PED has a helpdesk system which receives and handles building faults reported by Members, Members’ staff, and staff of the House. These faults are prioritised according to service level agreements.

The Director General of Facilities would be happy to brief the hon. Member in more detail, should he wish.