As a PfA founder member the Muir Group was involved when the first kitchen and bathrooms contract was set up in June 2005. PfA is now on its third round of kitchen and bathroom contracts with 10 RSL’s and six contractors involved. The lessons learned at the outset have been applied to bring tighter specifications, improved performance monitoring, and better incentives and partnership working.
By April 2008 the Muir Group will have commissioned over 200 bathrooms and kitchens under the new contracts. Contract costs have seen a saving of £400 and £200 on each kitchen and bathroom – a cashable saving of around 10%. This has meant an increased output from the resources available with some of the Muir Group’s tenants getting their new kitchen or bathroom a year earlier than planned.
More efficient procurement and an improved specification has meant that in Muir Group kitchens replacing flooring, electrical upgrades, improved ventilation, redecoration and a greater choice for tenants have now become affordable.
There have been organisational cost savings too. Joint procurement and more effective partnership working has led to a staff cost saving of around £30,000 over the life of a contract. As Neville Large, the Muir Group’s Asset Manager, said, “I can now switch some of our management capacity away from procurement and routine contract management to more productive and creative areas of work such as long term investment planning”.
Developing long term contracts – 5 to 10 years – on partnering principles has created a shared interest in getting it right and this is built into a range of contract performance indicators with customer satisfaction playing a big part. PI targets are reviewed annually to secure continuous improvement and make sure customers benefit as the contract matures.
The foundations were laid at the procurement stage with an evaluation process which was more rigorous than most traditional selection methods. All PfA members can participate, and tenants also play a crucial role. The combined expertise and experience brings a thoroughness and intensity not often possible when only one association is procuring work.
Another advantage is that contractors carry out much of the surveying and inspections previously carried out by RSL staff, and for kitchens and bathrooms they also provide tenant liaison staff.
Longer term contracts have led to more investment in training. For the Muir Group this has already resulted in joint training with contractors in equal opportunities and diversity, and future contracts will include targets for apprenticeships.
Contractors have also been willing to invest in new equipment and transport, bringing greater efficiency and an improved image. Developing shared IT facilities is helping to cut paperwork and streamline processes.
For the future, new framework contracts will be open to all participating RSL’s bringing more opportunities to benefit in greater efficiency and reduced bureaucracy across a range of work