A third of efficiency savings by housing associations in 2006-07 came from procurement. However, new research published jointly by the Audit Commission and the Housing Corporation shows that further annual savings of about £100 per home could be made through the better procurement of housing maintenance services.
The report, Better Buys, Improving Housing Association Procurement Practice, calls on housing associations to develop their procurement skills and knowledge if they want to improve the efficiency of their repairs and maintenance operations.
The study also warns against seeing particular procurement methods, such as using consortia or particular types of contracts, as automatically leading to greater efficiency. The key to improvement lies in a successful performance culture that links procurement to an association's wider objectives - such as regeneration, environmental sustainability and the promotion of diversity and equality, as well as high quality services.
Associations that involve residents in decisions about repairs and maintenance contracts can reap the benefit of improved services and better relations between residents and contractors. Despite these advantages, the research found that the approach to involving residents in procurement is haphazard.
Further practical advice and web tools will be launched soon to help housing associations put the report's recommendations into practice.
Case Study
One aspect of supply chain management undertaken by Liverpool Housing Trust (LHT) was to tackle a problem it had with boilers failing and needing to be replaced within three years of installation, as opposed to the manufacturer's recommendation of 15 years.
The boiler manufacturers identified the issue as one of water quality. LHT worked with the manufacturer, its installers and the company supplying the parts that improved water quality and, as a result, has improved the lifecycle of its boilers.
LHT says that it will save £90,000 in 2007/08 in reduced boiler replacements.
Local authority inspection reports issued by the Audit Commission during February included:
Registered social landlord inspection reports issued by the Audit Commission during February included:
Falkirk Council
Falkirk Council was awarded a 'fair C' rating for its housing management and property maintenance and asset management, but a 'poor D' rating for its homelessness services. The Council is the 11th largest council in Scotland by population (around 150,000). Its housing stock is just over 17,000 and its housing service is delivered through seven local One Stop Shops.