1. The NHF Schedule of Rates in modern procurement practice
David Miller
Rand Associates

2. Where We are and Where We Want to Be
Where we are now with the NHF Schedule of Rates - Version 5.1
Background
Existing Content
Inclusive Nature
Rates and Adjustments
Does it cover all the Stock
Use in Procurement
The Future - What do we want for Version 6

3. Background
Developed from the requirements of 8 RSL members of the Hammer SW Group
Now has:
328 Housing Associations
53 Local Authorities
347 in England, 21 in Wales, 6 In Scotland, 7 in Northern Ireland

4. Existing Format Three Levels of Description
Property Record File Description (short) 1 line up to 50 characters
Works Order Description (medium) 4 lines up to 50 characters each line
Tender Purposes Description (long) 12 lines up to 50 characters each line

5. Existing Content 1 ELEMENTS Foundations External Works Fencing & Gates
Drainage
Brickwork
Masonry
Roofing
Scaffolding
Joinery

6. Existing Content 2 ELEMENTS Plasterwork
Floor and Wall Tiling and Sheet Flooring
Painting
Cleaning & Clearance
Glazing
Plumbing
Heating & Gas Appliances
Electrical
Disabled Works
Special Treatments

7. Existing Content 3 FORMAT Elements reflect Trade Preamble sections
Some Sections are repeated in more than one element
Bath panels in Joinery and Plumbing
Bathroom Ancillaries in Joinery and Plumbing
Showers in Plumbing and Electrical
Some solid fuel items both in Brickwork and Heating
Special Treatment Elements incorporates:
Mould Treatment
Timber Treatment
Chemical DPC Treatment
Pest Control
Artex Removal

8. Existing Content 4 PRIORITIES: E Emergency Works U Urgent Works
R Routine Works
X User Defined

9. Inclusive Nature
Each item in SOR is intended to represent the entire work content of the particular repair and or maintenance item ordered and the Contractor’s percentage adjustment is deemed to include for all ancillary items not specifically referred to on the description of the SOR item but which are necessary to achieve the satisfactory repair or renewal.

10. Rates and Adjustments
All Labour, Materials, Plant And Transport. Overheads and Profit
Removal of Contractor’s Debris
Means of Access up to Two Storey ridgeline
First Time Fix- adequate van stocks etc
Empowerment of operatives on variations

11. Does it cover all the Stock? -1
General Needs
Sheltered
Supported Housing
Student/NHS Staff Accommodation
Market Rent Schemes
Leasehold/Shared Owner Liabilities
Estate works
Care and Repair Schemes

12. Does it cover all the Stock? - 2
The need to cover all stock types, the components of 400+ subscribers and cater for:
Responsive Day to Day
Void property/change of tenancy
Package/minor planned works
Decent Homes works
Emergency works
Results in a current library of 2900 items

13. Use in Procurement – Primary Means of Payment
Traditional format with % adjustment
Partnering traditional identifying profit/head office overheads and % adjustment
Partnering identifying profit/head office overheads, preliminary costs and % adjustment

14. Use in Procurement – Secondary Means of Payment
Payment on basis of fixed rate per order, reconciled on a periodic basis back to SOR
Payment on basis of fixed value per dwelling with SOR being used to reimburse works to Voids, High Value works orders, communal clearance, Tenant recharge works etc

15. Use in Procurement – As a Monitoring tool
Open book accounting reconciled back to SOR to establish whether best value is being achieved
Record of what work has been undertaken

16. Use in Procurement – Other Uses?
Before we move on to looking at what the format and content of version 6 should be, have any of you had experience of using the NHF SOR in other methods of procurement?

17. Version 6 - 1 Should we separate Responsive Day to Day and Voids
Should we separate the most frequently incurring items from those less used but still required.
Should we separate repairs from renewals.
Trade or Elemental format e.g all works associated with bathrooms or solid fuel appliances in their own section regardless of trade involvement.

18. Version 6 - 2 How much rationalisation: Any Others ??
have all windows measured in sq metres regardless of numbers of opening and fixed lights, size etc
have all glazing msd in sq metres regardless of pane size
have a standard cost for redecorating rooms with variances in specification applied by % add
assume that all ‘old’ components like metal windows, cast iron gutters etc have been renewed with modern products
One standard void item covering all the prime basic works done on void eg lock change, gas and electric tests, pre-occupation check, condition inspection, change wc seat, overhaul taps, cistern etc.
Any Others ??

19. It’s over to you now Version 6 - 3
What else would you like to see in Version 6
It’s over to you now