Posted 10.05.14
A trio of North East housing associations are leading the way in delivering savings for their residents, after implementing an innovative approach to jointly procuring maintenance services.
Four Housing, North Star Housing Group and Two Castles Housing Association have joined forces to procure day-to-day and void maintenance repairs worth more than £13 million over a four-year partnership.
Believed to be the first of its kind to be set up in the North East, the arrangement to jointly procure maintenance contractors will see repair prices for each association fixed for four years. It is expected to deliver an 18% reduction in overall responsive repair costs, helping each housing association to deliver greater efficiency and value for money for their residents elsewhere within their organisations.
Managing more than 11,000 properties in rural and urban communities between them, Four Housing, North Star Housing Group and Two Castles will now work with three dedicated contractors in the North East, including PF Burridge & Sons from Newcastle, Sunter Limited in Houghton-le-Spring and the Esh Group with bases in Cramlington and Durham.
The outcome of the joint procurement exercise, managed by asset management consultancy Elliot Johnson, will not only limit price increases for each association going forwards, but will also help them to monitor the performance of the services being provided more effectively.
The contractual arrangement between the three housing associations, reflects a similar partnership undertaken by Two Castles with another housing provider in the North West. The successful joint exercise in Cumbria meant that repair costs were 10% cheaper for Two Castles, than if it were to procure maintenance services independently.
