Only closer industry links will deliver
01.03.2007
We’re now three years into the Housing Corporation’s new funding regime, and with the new partnering system now delivering 33% more homes for just 15% more grant, the results support the continuation of this approach.
The improvement in quality too has seen more homes than ever built using modern methods of construction, and social landlords now scooping more industry awards for greener, cleaner and more innovative schemes.
But while quantity and quality are being addressed, finding practical ways to achieve real value for money has been harder to come by.
Recently, Sovereign Development Consortium pioneered a framework to appoint four firms to build a quarter of our houses.
Leadbitter Construction, Rok Property Solutions, Pearce Group and EG Carter were appointed for four years after an efficient and thorough selection process. We split the 10 counties where we operate into three ‘lots’ to ensure local focus, and limited the pool size to four to provide them with the volume of work to make it worthwhile.
This means they are guaranteed steady work without tendering for every job, and in the space of a few weeks, the Consortium has already allocated 260 houses – mainly town centre infill sites up to 15 homes – to these firms and progress is good. There are clear roles and responsibilities, and one of the simplest performance monitoring systems in the sector.
There are around 80 other similar partnerships across the country with £4bn of public money of contract work. But while a large proportion will be delivered through the s106 process, therefore limiting opportunities we are now sharing our approach with these other partnerships, so more of these frameworks will follow.
Public spending on social housing is set to rise in next March’s budget, as the government is seeing real improvements through partnerships like ours.
However, if these agreements are to be worth the effort, bear a few points in mind.
This is an ambitious process, so take it one step at a time.
Setting up systems and processes should be a learning opportunity, and will grow with the team.
Aim to be an informed, intelligent and organised client
Provide a clear decision-making process
Is there an independent consultant to oversee the selection process?
How many are you tendering for? The workflow has to be just right.
Are you willing to cut bureaucracy, perhaps by reducing performance indicators?
Funding will dry up in 2008 for alliances that don’t deliver. Don’t back the wrong horse, and if your partnership isn’t delivering, join one that is.
Be prepared to bring ideas to the table on Ecohomes and MMC.
Be prepared to invest time in the sourcing and acquisition of new sites to create a pipeline of future opportunities.
Our focus is now shifting to the supply chain, where this month we are beginning the tender process to appoint manufacturers for kitchens, timber frames, windows, doors and stairs. We’ve drawn up standardised product specifications, and are confident we can deliver steady workload, once again with the aim of speeding up the construction process.
Funding through the Corporation partnering route has increased the buying power for the sector, but only if we know how to use it to generate efficiencies.
Published March 2007
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