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Decision details

Leasehold Buildings Insurance Contract

Decision Maker: Cabinet Member for Neighbourhoods and Community Safety

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


The report seeks authority to procure a contract for Leasehold Buildings Insurance for the period 1st April 2021 to 30 March 2026, to provide Buildings insurance cover for all Sheffield City Council leaseholder flats and maisonettes originally purchased under Right to Buy legislation. In addition, to explore insurance costs for a future estimated 200 Shared Ownership Properties.



That the Cabinet Member approves the procurement of a new contract for Leasehold Buildings Insurance to include Shared Ownership Properties (as required) within the tender, in accordance with the details in the report.


Reasons for the decision:

The Council can demonstrate compliance with UK procurement rules and regulations in the awarding of the contract. The contract will be in place by 1st April 2021. The Council can demonstrate that statutory consultation requirements have been followed. It will obtain a value for money contract based on considerations of both quality of customer service and cost to individual leaseholders. The Council complies with its obligations under the terms of the Lease.


Alternative options considered:

Extend existing contract – The current contract was procured for an initial period of 3 years with the option to extend for a further 2 years. A soft market testing procurement process was undertaken and the contract extended for a further 2 years. The contract cannot be extended beyond 31st March 2021 and must be retendered.


Allow existing contract to expire and allow leaseholders to purchase their own individual buildings insurance – SCC would be in breach of the terms of Lease.


Tender through the Procurement Framework – leaseholders were not consulted on framework when it was originally set up. The Council would be unable to charge leaseholders for Buildings Insurance procured through the Framework.


Publication date: 11/09/2020

Date of decision: 11/09/2020

Effective from: 18/09/2020

Accompanying Documents: