Price Per Property Lessons Learned Mathew Baxter – echelon Consultancy Bob Watts – Origin Housing Group Terry Gilmartin - Gilmartins

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

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

PPP Model Definition 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 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…

PPP Model KPIs (Repairs) No.KPIMLAPTargetProfit R1 R1a Tenant/Origin Satisfaction with Service Provider’s performance 85%90%15% R3Percentage of Repairs complete on first visit80%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% R6Repairs Appointments Kept90%95%10% R10 Task Orders Issued and Overdue10%5%10% Total 100%

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

PPP Model Inclusions/Exclusions

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

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)

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%

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

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 1 st 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 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

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

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

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