DWF seminar – September 06 Housing Inspectorate 1 Improving efficiency in repairs & maintenance Alison Brown – Lead Housing Inspector (North East)

DWF seminar – September 06

Housing Inspectorate

1

Improving efficiency in repairs &

maintenance

Alison Brown – Lead Housing Inspector

(North East)



2

What this session will coverWhat this session will cover

• Why bother?

• Your existing Procurement strategy & activity

• A mixed bag approach?

• The partnering option???

• Starting a fresh?

• What are you doing?

• What are we seeing?

• Further work



3

Why Bother?

• Who aspires to be inefficient?

• Push to look at more efficient/effective ways of working – Gershon agenda, VFM, national procurement strategy

• AES – R&M identified as key area for cashable efficiency gains

• Annual efficiency statements submitted in April 2005 LA’s identified 49 % of the £71m from procurement & partnering.

• £94m LA projected efficiency gains for forward look 2006/7– Total of £26m from capital of which £24m cashable

– Total of £30m from ALMOs of which £14m from capital



4

Your procurement strategy & activity• Do you have one?• If so how is it being used to guide decisions for procurement of

good & services?• How are you making decisions in terms of cost & quality? • Do your standing orders place any restrictions on what you can

do?• Analysis of current procurement activity in terms of key goods &

services & their costs, quality, performance.• Are you using this to identify further improvements?• Do you have details of current contracts with renewal/

replacement dates?• How are future procurement opportunities advertised eg on your

web site?



5

Your procurement strategy & activity

• Where does your procurement function fit• Who takes an interest & when• Aware of training & development needs• Internal v external knowledge skills• Sharing what you know



6

A mixed bag approach• What is a modern from of procurement?

• Consortia?- commodities, materials mainly capital

– 64% of HA’s now buy commodities from a national purchasing

organisation

– National change agent for capital works- 7 consortia of social

landlords covering 600,000 dwellings to procure jointly £2.5bn

of works by 2010 – projecting net savings of 10%

• E procurement

• Partnering – internal v external



7

The partnering approach?

• Constructing Excellence – identification housing capital works partnering savings

• Significant growth not replicated in responsive & planned repairs- missed opportunity

• Tends to concentrate on external relationships• Many definitions of partnerships & peoples

understanding- impact on outcomes



8

Partnering formats• ‘Rosette’ Partnering• ‘Lawyer’ Partnering• ‘Carrot’ Partnering• ‘Any old project’ Partnering• ‘Your on your own’ Partnering• ‘You will save money’ Partnering• ‘Innovation’ Partnering• ‘Big Bang’ Partnering• ‘It has to be Big’ Partnering• ‘Default’ Partnering’ EPS presentation



9

The Partnering approach

• Externalised partnering is right for everyone?

• Why it is being used?

• Organisations not always able to quantify the benefits or gains

• Level of commitment to the process of collaborative working.

• Significant time, energy & resources is required to:– Challenge existing working practices,

– Get all levels & parties to embrace new working methods

– Develop trusting non adversarial relationships.

• How do you maintain the momentum?



10

Starting a fresh?

• Working together??• Size – who is an attractive option• Legal complexity• Risk Aversion • Restricted supply side • Lack of client side capacity • Narrow approach • Existing arrangements coming to an end• Change being suggested?• Organisational culture?



11

Starting a fresh?

• Trench Warfare?• Exploring the options• Having an understanding of what

you already have• Working with what you have?• Define the product, understand your

costs, demand & quality• Understanding the market• Sharing market knowledge• It is not all about externalisation!



12

What are you doing?

• Labour?• Materials?• Costs?• General?



13

Labour

• Addressing HR issues eg long term sickness, training • Use of dedicated teams for different work; formalised multi-

skilling • Improved autonomy but linked to accountability• Improved IT support eg Shared IT systems for appointments,

handhelds, stock information, performance management• More jobs completed first visit• Removal of a operative bonus scheme,• Flexible working patterns • Shared staff, office location• Investment in apprentices and intermediate labour market



14

Materials

• Impress stock on vans • Use of purchase cards, delivery of materials to site,

no internal stores• Part of procurement consortia• Identification of savings from supply chain

management• Extended warranty• Sharing of product information• Integrated databases



15

Cost• Understanding key costs an area

of weakness across all sectors

• But growing awareness

• Difficulties in who & what to compare

• Growing numbers undertaking some form of benchmarking

• Some areas more info than others

• What happens next once compared costs?



16

Cost

• No annual inflationary increase on contract price• Sharing of information on overhead costs• Greater challenge & understanding on cost from both

sides• Reduction in number of invoices eg 1/month• No cost uplifts applied to urgent or emergencies jobs; • Sharing of risk & profit? • Reinvestment back into service not eg the general

fund if LA• How this is being linked to quality of service?



17

General

• Variable involvement of customers in procurement & delivery?

• The linking of contracts

• The package - contract length, ability to vary eg extend, price & quality.

• Variety of contracts being used

• Limited joint commissioning

• Links to sustainable communities

• Limited risk analysis of an improved service

• Improving performance management

• Reviewing working practices



18

Further Advice

• It is an area of lots of change

• National studies consultation – procurement through partnerships

• Beacon in procurement

• To find out more :http://www.audit-commission.gov.uk/housingefficiency

• Or contact Alison Brown: 07876 217698

Documents

DWF seminar – September 06 Housing Inspectorate 1 Improving efficiency in repairs & maintenance Alison Brown – Lead Housing Inspector (North East)