9  HANDBACK65

The Authority expects all Dwellings to be passed back in a good state of repair, with a limited need for capital investment in the 5 year period following the Expiry Date.  The Contractor will therefore be expected to meet minimum standards at Handback.

a)  The Contractor shall ensure that Dwellings are handed back to the Authority in a condition sufficient to meet the Output Specification for a further 5 years beyond the Expiry Date with the Authority acting as a competent maintenance Contractor but without requiring significant capital investment (the "Handback Standard").  This will be assessed by ensuring that all individual components to Properties will have no less than 50% of their expected lifecycle at the Expiry Date or 5 years remaining on their expected lifecycle, whichever is the lesser.

b)  The Contractor shall prepare and maintain a life cycle plan that covers the entire concession period plus the following five years following the Expiry Date.  This plan should both:

i.  act as a tool for the Authority in planning an appropriate maintenance service for the Properties in the 5 years proceeding the Expiry Date;

ii.  demonstrate that the overall lifecycle plan has been structured so as to minimise the need for the Authority to undertake capital investment in the Properties during the 5 years post the Expiry Date.

c)  The Authority will be entitled to carry out a handback survey no earlier than 24 months prior to the Expiry Date, having given the Contractor 14 days notice of its intention to do so.  The survey will be used to determine whether the Contractor will meet the Handback Standard having regard to:

i.  Whether the Contractor is meeting all of its obligations under the Output Specification;

ii.  Planned lifecycle replacements in the period between the date of the survey and the Expiry Date; and

iii.  Other planned preventative maintenance activities scheduled by the Contractor in the period between the survey and the Expiry Date.

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65 Whilst a handback standard has been included, this is primarily for HRA schemes, as non-HRA schemes do not see the asset revert to the Authority and any reduction in standards in the final years is likely to impact on the Contractor in terms of residual value.  Care should be taken on non-HRA schemes where the long term use of the sites is not preserved for extra care use, as this may see buildings wound down in final years in preparation of redesignating site usage..