Procurement – making the difference
Sandy Murray, Chief Executive, Tenants First Housing Co-operative
Bill Banks, Development and Property Services Director, Kingdom Housing Association
Purchasing goods and services that are value for money is a sound business aim that organisations funded by the public purse must achieve. This session focused on the latest developments in procurement and the delivery of housing services.
Sandy Murray considered the drivers for improvement in procurement processes. Highlighting the skills gap in the construction and labour market and the government's efficiency agenda, Sandy also pointed to other fundamental reasons for change. A cultural shift in the way organisations operate and smarter business working methods were all essential if organisations are to achieve balanced communities and quality in construction.
Discussing his experience with the Devannah project, Sandy provided an overview of the resource implications in establishing the partnership between RSLs in the Grampian area, including time spent by senior staff. Keen to identify how the partnership could improve, Devannah commissioned research on phase 1 of the programme. Conclusions from the research identified that the partnership needed to create a sense of trust and develop formal structures and processes.
Following the research, the Devannah partnership has gone from strength to strength, achieving collaborative working. The partnership now recognises that their work is less about bulk procurement and more about smarter working. The partnership moved to an open book approach, but Sandy offered a word of caution that anyone seeking to use this approach would require a great deal of external support to make it work.
Bill Banks provided an overview of how housing associations can work together to achieve better value in procurement. Considering the approach taken by the Larach initiative and the Fife Housing Association Alliance model, Bill discussed how effective procurement processes can benefit all parties to the development process. Overcoming the reluctance to change, VAT and Stamp Duty requirements and pressures to deliver were all key barriers and constraints.
He did say that there were a number of positive outcomes from the partnership as the Fife project has achieved all targets set, with most schemes meeting HAG subsidy targets.
The key message was to build on existing relationships, set clear objectives, have incentives, share risks and keep the process simple!