london borough of barking & dagenham’s shape-up for homes programme in partnership with schal...

London Borough of London Borough of Barking & Dagenham’sBarking & Dagenham’s

Shape-Up for Homes ProgrammeShape-Up for Homes Programme

in partnership within partnership with

Schal InternationalSchal International

A Fresh Start to A Fresh Start to Shape-UpShape-Up

Presented By:Presented By:

Richard BerryRichard Berry - - Head of Building Head of Building ServicesServices

Mike DickinsMike Dickins - - Associate Director, SchalAssociate Director, Schal

..and Capital Works Manager, SUFH..and Capital Works Manager, SUFH


The Innovation:The Innovation:

The creation of aThe creation of a

Management PartnershipManagement Partnership

(a true Public/ Private Partnership)(a true Public/ Private Partnership)


Prime Objectives:Prime Objectives:• to ensure that the Council’s to ensure that the Council’s

houses and low-rise flats remain houses and low-rise flats remain available as good quality homes available as good quality homes for social letting for 30 years.for social letting for 30 years.

• Complete the programme within a Complete the programme within a set budget, and to original set budget, and to original timescaletimescale


The Work …..The Work …..

• External fabric of the social housing External fabric of the social housing stock stock (roofs, windows/ glazing, doors, external wks.)(roofs, windows/ glazing, doors, external wks.)

– 14,500 to do in Phase 2; (7,000 done in 14,500 to do in Phase 2; (7,000 done in Phase 1) Phase 1)

• New Gas Central Heating New Gas Central Heating (& loft insulation)(& loft insulation)

– 3,200 to do in Phase 2 (6,800 done in Phase 3,200 to do in Phase 2 (6,800 done in Phase 1)1)

• Houses and Low - Medium-Rise flats onlyHouses and Low - Medium-Rise flats only


……and the parameters and tasks:and the parameters and tasks:• £65m spent already in Phase 1£65m spent already in Phase 1• Forecast of another £103m for Phase 2Forecast of another £103m for Phase 2• Limit of £72mLimit of £72m available in the budget available in the budget• 3 years of work done in Phase 13 years of work done in Phase 1• 4 years left4 years left of original programme, but CH of original programme, but CH

required in required in 2 years2 years• Tenant Participation & SatisfactionTenant Participation & Satisfaction• Enhance Local Employment opportunitiesEnhance Local Employment opportunities• Safe Working Environment, and protection Safe Working Environment, and protection

of the general public (but no decant)of the general public (but no decant)


Key performance targetsKey performance targets

1.1.**A saving of £31m on the forecast costA saving of £31m on the forecast cost2. Almost a doubling of production to meet 2. Almost a doubling of production to meet

the programmethe programme3.3.**A reduction from approx. 2 complaints A reduction from approx. 2 complaints

per property to 1 complaint in every 2per property to 1 complaint in every 24.4.**A structured approach to Safety, with a A structured approach to Safety, with a

target of below the industry norm target of below the industry norm (RIDDOR)(RIDDOR)

5. A skills-transfer over the 4 years, with 5. A skills-transfer over the 4 years, with corresponding reduction in Schal staffcorresponding reduction in Schal staff

* M4i Targets


How?How?• Fundamental Fundamental ReviewReview of all critical of all critical

success factors, arriving at a success factors, arriving at a strategy and a detailed strategy and a detailed Project Project Execution PlanExecution Plan

• Delivery of Phase 2 of the Shape-Up Delivery of Phase 2 of the Shape-Up programme by programme by combining the best combining the best skillsskills in both private and public in both private and public sector, all down the supply chainsector, all down the supply chain


Essential elements of the Management Essential elements of the Management PartnershipPartnership

• Multi-functional, co-located, and integrated Multi-functional, co-located, and integrated Client teamClient team

• Core Schal staff to compliment existing skillsCore Schal staff to compliment existing skills• Use of CM procurement route (a 1Use of CM procurement route (a 1stst for Planned for Planned

Maintenance in Housing)Maintenance in Housing)• Framework Partnerships down the supply chainFramework Partnerships down the supply chain• Robust systems, procedures and controlsRobust systems, procedures and controls• Medium & Long-term transfer of Management Medium & Long-term transfer of Management

SkillsSkills


Financial Financial Accounting & Accounting & AuditAudit

Community LiaisonCommunity Liaison

DesignDesign and Specificationand Specification

SurveyingSurveying

Works InspectionWorks Inspection

Skills Matrix – and where are the Skills Matrix – and where are the strengths?strengths?Borough Schal Project ManagementProject Management

Commercial & Cost Commercial & Cost ManagementManagement

Procurement & Risk Procurement & Risk ManagementManagement

Planning ManagementPlanning Management

IT Systems/ IT Systems/ ProceduresProcedures

H & S/ EM SystemsH & S/ EM Systems

Site Management

Contract Administration

Supply Chain


Drivers & team achievements…Drivers & team achievements…• Integrated Management TeamIntegrated Management Team

– All wear the same hat, share the same objectives, culture of All wear the same hat, share the same objectives, culture of learning & improvement, 7 Schal staff, 35 Borough stafflearning & improvement, 7 Schal staff, 35 Borough staff

– Performs all necessary functions – management & technicalPerforms all necessary functions – management & technical

• Novel CM procurement route for housing refurb sectorNovel CM procurement route for housing refurb sector– Vigorous selection procedureVigorous selection procedure– Minimises and shares risk, encourages local employmentMinimises and shares risk, encourages local employment– Promotes quality, less snagging, structured process and lump Promotes quality, less snagging, structured process and lump

sum promotes productivitysum promotes productivity– Competitive bids initially, Costs optimised & controlledCompetitive bids initially, Costs optimised & controlled– Specialist contractors, Repeat business through negotiation, Specialist contractors, Repeat business through negotiation,

next round based on previous performance/ forecastsnext round based on previous performance/ forecasts


Drivers & team achievements…contDrivers & team achievements…cont• Tenant Participation & SatisfactionTenant Participation & Satisfaction

– Community forums – Members, Leaseholders, Tenants, Community forums – Members, Leaseholders, Tenants, StaffStaff

– Community buy-in; Tenant choice – styles, coloursCommunity buy-in; Tenant choice – styles, colours– Rapid resolution - complaints & Enquiries (IT-based Rapid resolution - complaints & Enquiries (IT-based

Helpdesk)Helpdesk)

• Safety ManagementSafety Management– Vigorous assessment procedure, Interviews, Safety cultureVigorous assessment procedure, Interviews, Safety culture– Induction, Workshops, Tool-box Talks, Staff trainingInduction, Workshops, Tool-box Talks, Staff training– Contractor League Tables, Operative rewards (PPE)Contractor League Tables, Operative rewards (PPE)– Community newsletters – public awarenessCommunity newsletters – public awareness– Performance review; continuous monitoring, tighter Performance review; continuous monitoring, tighter

targetstargets

• Skills TransferSkills Transfer– New Strategy using shadows, training and reviewsNew Strategy using shadows, training and reviews


The scores:The scores:• Savings of 18 – 30% in Round 1 Savings of 18 – 30% in Round 1

– against target of 20%against target of 20%

• Savings average 22% in Round 2Savings average 22% in Round 2– against target of 24%against target of 24%

• Forecasts of additional 4% savings in Round Forecasts of additional 4% savings in Round 3 – but inflation higher than expected3 – but inflation higher than expected

• Total saving (as benchmark) still expected Total saving (as benchmark) still expected at £31m, despite additional work and at £31m, despite additional work and inflationinflation


The scores:The scores:• Project back on target programme after Project back on target programme after

slower start than planned (but CH beat target)slower start than planned (but CH beat target)– Recruitment of staff, IT development, SurveyingRecruitment of staff, IT development, Surveying

• Average complaints below original targetsAverage complaints below original targets– stiffer targets now being devised!stiffer targets now being devised!– to measure defects on site, not just reportedto measure defects on site, not just reported

• Safety below Norm, and improving – target?Safety below Norm, and improving – target?• Schal staff reduced through new MRA projectSchal staff reduced through new MRA project

– But shadowing process delayed (for full But shadowing process delayed (for full replacement of key Schal staff)replacement of key Schal staff)


S HA P E U P -K E Y P E R F OR MA N C E IND IC A T OR -F INA NC IA L -

B E NC HMA R K v s V A L U E OF WOR K S v s R E V IS E D WOR K S v s

A C T U A L / C OR R E C T IV E V A L U E OF WOR K

0

5 ,000,000

1 0,000,000

1 5 ,000,000

2 0,000,000

2 5 ,000,000

3 0,000,000

3 5 ,000,000

A p r-02 Ma y-02 Ju n -02 Ju l-02 A u g -02 S e p -02 O c t-02 N o v -02 D e c -02 Ja n -03 F e b -03 Ma r-03 S u n d ry

C r.

B e n c h ma rk (P h 1 a )

2 002 /03 B u d g e t-v a lu e o f w o rk

A c tu a l Wo rk P la n A c h ie v e d

C o rre c tiv e Wo rk P la n to a c h ie v e ta rg e t tu rn o v e r

Actual Spend 2001/2


SHAPE UP-KEY PERFORMANCE INDICATOR- BUDGET CASHFLOW vs REVISED vs

ACTUAL / CORRECTIVE

0

5,000,000

1 0,000,000

1 5,000,000

20,000,000

25,000,000

Apr -02 May-02 J un-02 J ul -02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 J an-03 Feb-03 Mar -03 Apr -03

Or iginal Budget pr ofi le Actual Cashfl ow Or acle Cor r ective Cashfl ow to achieve tar get tur nover

Actual

Actual/ Forecast Spend 2002/3


SHAPE UP - KEY PERFORFORMANCE INDICATOR HEALTH & SAFETY INCIDENTS (RIDDOR)

(REPORTING OF INJURIES, DISEASES AND DANGEROUS OCCURANCES REGULATIONS)

0

0.5

1

1.5

2

2.5

Apr-01

May-01

Jun-01

Jul-01

Aug-01

Sep-01

Oct-01

Nov-01

Dec-01

Jan-02

Feb-02

Mar-02

Apr-02

May-02

Jun-02

Jul-02

Aug-02

Sep-02

per

100,

000

man

hou

rs

ActualFrequencyInd Norm

frequency rate

Note: The Industry norm is based on the HSE 1999/2000 figure of 1.96 per 100,000 man

hours worked

Industry Norm for period 1999 to 2000


What has the Partnership delivered?What has the Partnership delivered?

• Budget CertaintyBudget Certainty– We are still predicting a final cost of £72m at We are still predicting a final cost of £72m at

April 2004April 2004

• Speed of DeliverySpeed of Delivery– Over 100 homes being improved each weekOver 100 homes being improved each week– Central heating completed 3 mths earlyCentral heating completed 3 mths early– 11,400 refurbished in 21 months (4,600 to go)11,400 refurbished in 21 months (4,600 to go)

• Additional WorksAdditional Works– an extra 962 homes added – still within an extra 962 homes added – still within

original budgetoriginal budget


Where’s the Proof?Where’s the Proof?• Audit Commission Case Study Audit Commission Case Study

– March 2002March 2002• ……confirms £8m saved to date confirms £8m saved to date

against benchmarkagainst benchmark• Savings subject to Council auditSavings subject to Council audit• Monthly reporting to Members and Monthly reporting to Members and

senior management senior management – compiled by Borough accountantcompiled by Borough accountant


The wider service benefitsThe wider service benefits• Ready-made partnership to Ready-made partnership to

address Decency Standardaddress Decency Standard• Better correlation with responsive Better correlation with responsive

repairs and maintenancerepairs and maintenance• Contributes to Best Value ratingContributes to Best Value rating• Potential CPA impact Potential CPA impact • Regeneration of the local economyRegeneration of the local economy


Continuous partnership improvementContinuous partnership improvement• Improving customer serviceImproving customer service

– Complaints targetsComplaints targets– Enhanced customer service teamEnhanced customer service team

• Enhancing resident involvementEnhancing resident involvement• Skills transfer for long-term benefitSkills transfer for long-term benefit• Exit strategyExit strategy


Our learning outcomesOur learning outcomes• public and private services can co-existpublic and private services can co-exist• you can get more for the moneyyou can get more for the money• innovation must deliver a better productinnovation must deliver a better product• need for enhanced customer need for enhanced customer

involvementinvolvement• need to be more open with customers need to be more open with customers

about what we want to achieveabout what we want to achieve


End of Presentation By:End of Presentation By:

Richard BerryRichard Berry - - [email protected]@lbbd.gov.uk

Mike DickinsMike Dickins - [email protected] [email protected]….. [email protected]….. [email protected]

london borough of barking & dagenham’s shape-up for homes programme in partnership with schal...

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