Joint Residents Meeting with Mears 15 th February 2011

Agenda 1

Introduction – Peter Introduction to Mears, Involving Residents - Mears Explaining the Contract – Peter Mears Contract Manager Role - Discussion Partnering Charter – Discussion/Agreement Discussion on Merger of groups AGENDA

Content of Contract 2

2a Main contents of the TPC (2005) The legal stuff The Brief (THH standards) Mears’ method statements LBTH – Client Mears – Service Provider THH – Client Representative Other parties

Content of Contract 3

3a Major contract characteristics Contract is for 5 years with LBTH option to extend by up to a further 5 years JCT is ‘instruct and check’, TPC parties sign up to common objectives Customer satisfaction is our main KPI TPC makes working together a contract term Can cover work up to £150k Option to include other services – A&A, asbestos

3b Some Specific Terms Envisages continuous improvement over the Term – Partnering Timetable TPC envisages incentives and shared savings (and not just sanctions) for achieving objectives Introduces the term Interested Parties – potential formal role for residents Risks specifically identified in a Risk Register – example continuity of supply Problem solving hierarchy for disputes Recognises ‘value added’ e.g. local employment and training measures

Redress 4

4a Redress (THH and Mears) Work done poorly – THH can pay others after due notice and deduct costs Can charge extra costs of administration around poor performance Interest for late payment Mears can suspend performance until payment received LBTH can terminate at any time on giving six months notice LBTH can terminate for failure to achieve Service Critical KPIs – customer satisfaction

Administration 5

5a How it is administered? TPC has a Core Group structure, Mears and THH represented Mostly managed through the Area Housing Offices Early warning notices and improvement plans Incentives are based on delivery of customer satisfaction targets provided these are delivered within THH budgets Individual repairs are ordered as Tasks (as at present)

Payment 6

6a Payment to Mears Profit, central office overheads and site overheads pre-tendered and paid monthly Tasks via Schedule of Rates (SoR’s) or other cost model included in the Price Framework also paid monthly (but will be for work values only) Option to move to other methods at sole discretion of THH and revert back to tendered methods if these are not providing value

How Partnership Works 7

7a How we envisage our partnership working Maximise delivery from neighbourhoods One Mears manager in each neighbourhood office (later discussion on this). Orders placed from call centre as at present (at least initially) Operational teams in each neighbourhood Assessment of what sits best where – local versus central before partnership starts

Functions 8

8a Functions - Neighbourhoods Hold repairs budgets for works (excl fixed payment) Manage all Quality Assurance and complaints Manage all reactive day to day and communal repairs Manage gas access and complaints Manage voids with contractor specifying Aids and Adaptations (optional inclusion) Issue brief and manage small projects up to £150k Manage cyclical decorations programme Systems review to develop appointment slots and one visit working etc

8b Functions - Neighbourhood/Central? Develop leasehold and resident paid services provision Move payment mechanism from tendered models if agreed Advance plans for localisation of labour Driving savings from site overheads and other areas Disrepair

8c Operational functions Central Payments – overheads and works (Finance Team) Specialist contracts (not subject to this contract – lifts, door entry, central boiler plant) Assess viability and future of drainage team Customer satisfaction surveys Performance measurement (critical and other measures) Calculation of risk/reward share Business case for transferring calls to Mears (emergency and others)

What do residents want 9

“fix my problem, do it right, at a time that suits me and protects the fabric of my home for the future” 9a

Repair Hierarchy 1.Quality of repair 2.‘Right first time’ 3.Done when said it will be 4.Kept informed 5.Behaviour on site 9b

Drivers of satisfaction and Performance 9c

Repair Business Critical Indicators  Satisfaction with repair.  Repair ‘Right first time’.  Gas servicing  Average re-let time Appointments made & kept not included Repairs in target to be dropped 9d

Measures 10

. Measures - Percentage satisfied with repair Just one!  Current target - 83%  Current performance - 82%  Contract (Yr1) 83% with incentives above this & penalties below 80%.  New contract will take time to embed but targets should be aspirational.  Could be initial bedding in period for 1 st 6 or 12 months 10a

Partnering Charter 11

Draft for Partnering Charter Tower Hamlets Homes and Mears will work in partnership based on openness and trust to: 1.Deliver the best services for Tower Hamlets Homes residents we can within budget 2.Engage with residents and use their feedback to improve the services we provide for the life of the partnership 3.Focus on ‘getting the basics right’ consistently 4.Embed continuous improvement, value for money and innovation in service delivery within the partnership 5.Provide local employment opportunities 6.Contribute to the development of local businesses 7.Maximise education and training links within the partnership and local community 8.Deliver fair returns for Mears in return for excellence in service delivery 9.Deliver Tower Hamlets Homes ’for residents’ agenda 10.Enhance our reputations through delivery of excellent services 11a

MEARS’ CONTRACT MANAGER 12

Mears’ Contract Manager Role Discussion 12a