Price Per Property

1. Price Per Property Lessons Learned Mathew Baxter – echelon Consultancy Bob Watts – Origin Housing GroupTerry Gilmartin - Gilmartins

2. About the project Introduction • 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 • •

3. About the project Procurement 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 • •

4. PPP Model Definition of Origin Model

5. PPP Model Operation 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… • •

6. PPP Model KPIs (Repairs)

7. PPP Model Inclusions/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 • •

8. PPP Model Inclusions/Exclusions

9. PPP Model Communal 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 • •

10. PPP Model Annual 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) • •

11. PPP Model Current 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% • •

12. Lessons Learned Origin 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 • •

13. Lessons Learned Origin 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? • •

14. Lessons Learned Origin 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

15. Lessons Learned Gilmartins 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

16. Lessons Learned Gilmartins 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

17. Questions? Case Study

18. Thank you for your attention