Price Per PropertyLessons LearnedMathew Baxter – echelon ConsultancyBob Watts – Origin Housing GroupTerry Gilmartin - Gilmartins

About the projectIntroduction

• Scope – Reactive Repairs and Voids to 6,000 Origin owned and managed properties

• Stock Profile - social housing; supported & retirement housing schemes; market and intermediate rent; key worker homes; shared ownership; commercial; leasehold

• Drivers – simplify processes, reduce administration, focus on ‘real’ costs,

deliver improved level of service

• Presentation – Introduction, Procurement, PPP Model, Reviews & Lessons Learned

• Case Study – detailed case study on project

•

About the projectProcurement Process

• ‘Lean’ Competitive Dialogue – used to enable constructive dialogue

• Development of model through CD – initially used hybrid SOR

• Scoped – detailed scoping ahead of procurement & Resident Engagement

• WOS – also looked at WOS option and can convert if both parties desire

• Contract – TPC2005 contract develop through CD

• Award Winning – 2013 Innovation in Procurement Award

•

PPP ModelDefinition of Origin Model

Element of Cost

Percentage of Cost

Labour _____%

Materials _____%

Site Overhead _____%

Head Office Overhead & Profit (Fixed) _____%

Variable Profit _____%

Risk _____%

Total PPP 100%

PPP ModelOperation of Model

• Inclusions – all inclusions raised as zero value orders

• Exclusions – priced using SOR

• Pots – monthly review of exclusions, communal and risk Pots

• Invoicing – single monthly invoice – PPP/12, Voids, Exclusions, Communals

& Variable Profit

• Monthly Core Group – all data reviewed at monthly core group

• KPIs – scored monthly and paid as follows…

•

PPP ModelKPIs (Repairs)

No. KPI MLAP Target Profit

R1R1a

Tenant/Origin Satisfaction with Service Provider’s performance

85% 90% 15%15%

R3 Percentage of Repairs complete on first visit 80% 85% 20%R4

R4a

Repairs completions within timescales-Emergency

96% 100% 10%

- Average time to complete routine (non emergency) repairs

12 days

10 days

20%

R6 Repairs Appointments Kept 90% 95% 10%

R10

Task Orders Issued and Overdue 10% 5% 10%

Total

100%

PPP ModelInclusions/Exclusions

• Comprehensive – detailed list of what’s ‘in’ and ‘out’

• Development – initially developed in workshop then evolved through CD process

• Alignment – ensure alignment with Repairs and Voids standards

• Caps – value caps on high risk/cost items (e.g. Asbestos Works (£20k))

• Default – default position is that works are included

• Roll-out – joint training sessions

• Review– at Core Group and annually – amend accordingly

•

PPP ModelInclusions/Exclusions

PPP ModelCommunal Repairs/Voids

• Identification of communal budget – separate out from unit PPP

• Leaseholders – issues around fixed PPP

• SOR – communal repairs delivered via SOR

• Voids – fixed PPV for general rented voids

• Internal & Market Rent/Keyworker – due to range of works delivered via SOR

•

PPP ModelAnnual Review

• Full Audit – although fixed cost model is open book

• Labour – review output costs/mix & use of sub-contractors

• Materials – focus on high volume/high cost (recently re-procured)

• Overheads – review overhead required to deliver contract

• Delivery Model – review service delivery model and KPIs/Targets

• Value Engineering – joint challenge ways of working/delivery

• Examples – Scaffolding, Appointment Slots, Handyman approach, Call Centre moving to Gilmartins (co-located in Origin’s Office)

•

PPP ModelCurrent Performance (October 13)

• Satisfaction – Tenant 95%, Origin 90%

• Appointments Kept – 96.9%

• Right First Time – 89%

• Recalls – 0%

• Average end to end – 9.5 days

• Emergency Completions – 98.6%

• Void Completions – 6.4 Days Average (£15/day)

• Defect Free Voids – 100%

•

Lessons LearnedOrigin Perspective

• Clarity on exclusions and inclusions – this is the key to successful PPP

• Staff briefing/training – this is a new way of working – consult!

• Systemised ordering – ensure clear process in place

• Care on mixed tenures – how will this impact model?

• How do you want your contractor to behave? – quality of service on site,

Doing the right thing, reduce dependency on surveyors, flexibility

• KPIs & Pain gain mechanisms – ensure drives right behaviours

• IT limitations – how client/contractor systems interact with each other

•

Lessons LearnedOrigin Perspective

• Regular budget & cost reviews – allow extra time at beginning & review monthly

• Caps – ensure correct level of cap set and appropriate use (e.g. jetting)

• The 'extra over' or 'all in' debate – e.g. where individual jobs are capped is the amount paid extra over – need clarity

• Budget for exclusions – ensure adequate allowance (use 1st year)

• How accurate do you want front end diagnosis to be? – fully prescriptive or ‘attend defect’

• Properties coming out of defects – how does model handle this?

•

Lessons LearnedOrigin Perspective• How good are your repair records? – 3 years ideally and check

and check again!

• Leaseholders – cannot be charged through PPP

• Separate budget for communal repairs – make sure you have accurate cost data

• When does a responsive repair become major? – clear process/definition

• Holding your nerve – resist temptation to revert to trad. SOR

• Keep talking – work together to challenge & evolve

Lessons LearnedGilmartins Perspective• Inclusions/Exclusions list - in-depth workshops during

mobilisation and continuing afterwards

• Historical repairs data needs to be precise - number of repairs by trade, etc.

• Contact centre staff diagnosing repair have the correct skill set - correct information at first contact enhance the service

• Residence expectations/involvement - have residents on all panels so they can help develop the service

• Transparency and honesty between both Client and Contractor - essential for development of model

Lessons LearnedGilmartins Perspective• IT issues - regular meetings and close monitoring of issues

• Commercial meetings - monitoring expenditure on budgets for Client and Contractor

• Risk register - identify areas of concern to reduce liability

• Longer period of mobilisation - to take into account the new model & ways of working

Questions?Case Study

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