guy sanderson & nimisha patel · will include any kpi’s i.e. 100% inspections on time;...

1CCH Conference: 11th May 2019

Guy Sanderson & Nimisha Patel

2

The act of obtaining or buying good and services (The Business Dictionary)

It is the process of finding and agreeing to terms, and acquiring good, services or works from an external source, often via a tendering or competitive bidding process (Wikipedia)

Why?

The process is often used to ensure the buyer receives goods or services at the best possible price when aspects such as quality, quantity, time, and location are compared.

3

Goods

Works

Services

4

A gas contractor

Windows

Customer survey

Roofing works

Grounds maintenance servicesHousing services

5

Business Benefits of Procurement

• Reduced Costs - through elimination of waste and increased efficiency

• Fulfilment of Value for Money objectives

• Increased revenues

• Increased customer satisfaction, as result of improved performance and product quality

• Staying current – enabling the organisation to capture the best the market has to offer

• Increased capacity, capability or flexibility – through developing supplier and supply chains

• Improved reputational equity – through consistent quality performance, ethical sourcing and trading, environmental Sustainability etc.

6

The main stages of the procurement process is depicted as a cycle, all steps should be regularly reviewed and maintained within procurement

Identify the Business need

Gather information

Develop Contract Terms i.e. length

Source the Market, Identifying the

suppliers

Invite quotations or tenders

Analyse quotations and select most promising

supplier

Approve selection, normally by board

Award the contract

Contract/Supplier management: monitor,

review and maintain performance

7

1. Identify business need‣ Performance of contractor is poor

‣ Service is expensive

‣ Gas contract never tendered, hard to demonstrate value for money

2. Gather information for the tender‣ List of properties and what type of boilers are installed

‣ Current position on gas safety inspections (i.e. are they up to date? Are there any outstanding?)

‣ Dates when inspections are due

3. Develop contract terms‣ Decide on type of contract. For gas it is usual for a price per property per year for servicing,

gas certificate and maintenance.

‣ Decide contract length

8

4. Source the market, choose a tender list‣ This would normally include more than is required, as a number of tenders often withdraw,

don’t bid.

‣ Tenderers can be selected from a framework, from recommendations or from responses to an advertisement

5. The Tender‣ The tender will include all the background information

‣ Will include any KPI’s i.e. 100% inspections on time; maintenance response times

6. Analyse and evaluate the tender‣ It is normal for coops to select a panel to do the evaluation

‣ Evaluations normally have a mix of questions, scoring on price and quality to determine best value.

‣ Through the scoring process a successful bidder will become apparent.

9

7. Approve selection‣ Panel recommend awarding contract to successful bidder

‣ Chair or board approve decision

8. Appoint contractor‣ Contract is awarded

‣ Mobilisation period is normally agreed before they start, to ensure systems and processes are set up

9. Contract/Supplier management‣ Performance should be reviewed regularly

10

11

Good procurement will help to:

• Control spend

• Increase income by reducing cost, negotiating prices and decreasing waste

• Discourages complacency by keeping it competitive

12

Guy SandersonHead of PRS and New Contracts

M: 07808 790713guy.sanderson@pinnaclepsg.co.uk

Nimisha PatelGroup Head of Housing

M: 07850 607816nimisha.patel@pinnaclepsg.co.uk

Pratik PopatCoop Contract Manger

T: 0333 600 2500M: 07834 726869pratik.popat@pinnaclepsg.co.uk