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 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