Finance & Procurement; Maintenance & Refurbishment
quality to a high emphasis on price. Neither approach has fully delivered to their expectations. Grenfell stands as a salutary lesson of what can happen when value
engineering and lack of quality control goes wrong. Too high an emphasis on price can also deter the quality bidders in the sector from participating. Since people and their homes are involved (rather than transactional
commodities), invitations to tender that are more weighted towards quality will generally produce better value for money and client satisfaction. The race to the bottom on price has no winners, only losers all round.
CLIENTS – HOW TO ATTRACT MORE AND BETTER BIDS There are a number of steps that clients can take to help increase their prospects of attracting quality bidders. These include market engagement, e.g. through meet the buyer days and prior information notices, and providing meaningful information e.g. historic statistics and information on repairs that shares breakdowns of numbers, types and timing of repairs. The more information you can provide, the less the bidders are having to price in risks, which may not happen. Try to get the bidders in almost as good a position with information as if they
were the incumbent. If you want a fair, transparent and inclusive process, why should the client and the incumbent bidder be sitting with all the cards? This brings us to risk sharing – contracts that look to push all of the risks onto the contractor while still expecting a very low price are really in nobody’s long-term best interests. Allowing sufficient time in the bid process itself will also result in attracting more bids – too often we see bids being advertised with a four week response timescale which includes Christmas or Easter holidays – actions which will usually ensure that many bidders decline to participate.
CONTRACTORS – HOW TO DIFFERENTIATE YOUR BIDS (NOT JUST BY BEING THE CHEAPEST) This involves providing a tailored solution to the buyer’s needs. Social housing organisations are not all the same and should not be treated as such. For a start,
Obtaining Your Local Area Information
Information on your local area is now easy to obtain and understand thanks to a new tool by CIA Landlord Insurance. The local area statistics calculator provides up to date information on the average property prices and crime rates in your area. The information provided includes a breakdown of the values of different property types and a list of the most common criminal offences. The calculator can find information for any area of Great Britain. This allows you to search for information on your area, neighbouring areas and locations further afield, that you may be looking to relocate to. The calculator can be found on the CIA website and is free to use for all.
01788 818 670
www.cia-landlords.co.uk/local-property-stats Solutions to help deliver neighbourhoods of the future now
One of the objectives set out in a new white paper on housing for the future can already be achieved, simply by appropriate selection of bathroom fixtures. Neighbourhoods for the Future 2 calls for high quality housing that can be adapted to meet changing needs efficiently, in days, and deliver a home for life, with built-in adaptability. Explains Minister of State for Care Caroline Dinenage, it’s about providing “everyone with the best possible chance to grow old with dignity in their own home”. Says Robin Tuffley, Closomatmarketing manager, “That aim is already achieveable, at least in the bathroom. The bathroom is the most commonly adapted room. The report highlights, that adaptations are often done out of desperation, rather than as a planned inclusive design strategy, yet there should be a proactive approach so people can continue to look after themselves ion their own home. “Certainly in the bathroom, that is already a reality, just by careful selection of the WC. It is the fixture most commonly in need of adjustment to accommodate changing needs. A shower, or wash dry, toilet delivers improved hygiene for all; as someone’s ability to clean themselves reduces, its in-built washing and drying ensures they can still go to the toilet with dignity and independence.”
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www.clos-o-mat.com 36 | HMM April/May 2019 |
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Insurance & Finance Feature
they work in some different geographies across the UK which brings its own differentiation. Their resident and stock profiles can also be quite diverse. The extent of resident/tenant involvement can also vary as can the amount of
social value and added value that they are looking for. How can you demonstrate innovation, especially by using technology to make your services better, faster, cheaper and safer? Evidence that you have really thought through their needs, e.g. stock needs, tenant needs and community needs, and that you have a bespoke (rather than off the shelf) solution that will work best in partnership with them. Use the clarification question process during the bid window to level the playing field i.e. helping ensure that all bidders have access to as much information as possible to inform the delivery model and, importantly, the pricing.
LOOKING AHEAD At the macro level, expect to see more consolidation both within social housing and within the contracting worlds. Social housing organisations are continuing to engage in merger activity as the housing regulatory focus on financial viability and governance helps to mitigate against housing organisation failure or poor service delivery. Similarly, the contracting sector is also seeing some consolidation. Notwithstanding this, there is likely to be a continued move away from over-reliance on large contractors who operate on a sub-contracting model. Government and buyer pressure on ensuring fair payment terms for the
supply chain will likely encourage SME contractors to get more involved in bidding directly for contracts rather than being content with low margin work as part of an extended supply chain. And what about the outsourced versus in-house debate? This is likely to continue for the foreseeable future. It is not a one size fits all approach – both models can operate successfully as can a blended model which combines some in-house delivery with some specialist external assistance.
Andrew Morrison is managing director of AM Bid First class knowledge delivers adaptation
A ‘first class’ adaptation has been achieved for a client with diverse needs by using a contractor with understanding of the objective. As a result, 42 years-old Becky Downie from Exeter says she now feels safe, and has confidence and she is managing to live independently. The achievement is the result of a series of changes to Becky’s bathroom, by First Class Independent Living, a division of First Class Builders Ltd, on behalf of Exeter Council. First Class has converted the bathroom into a wetroom, added grab rails, shower screens and, most recently, a Closomat Palma Vita shower (wash dry) toilet tailored to her individual needs (infill panel, plinth and bariatric seat).
0161 969 1199
www.clos-o-mat.com
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