contracts getting the right fit and making it work pdfs/repairs and... · getting the right fit and...

Contracts – Getting the Right

Fit and making it work

CIH repairs and Maintenance

Conference - May 2015

http://www.cih.org/

Repairs and Maintenance

“Housing Repairs and Maintenance is a multi-billion pound industry and is consistently rated by tenants and residents as the most important indicator of their landlord’s commitment to them and their neighbourhood.”

CIH Working Together….Feb 2015

CIH Repairs and Maintenance Conference May

2015

http://www.cih.org/

Getting the Right Fit and making it work


2015

Repairs and Maintenance • Major cost to business

• Very important to residents

• Asset protection

• Do we leave partner selection

to chance?

http://www.cih.org/


• Southern Housing Group

• Repairs

• Procurement

• Contract Model

• Management

• Measures

• Nurture

• Benefits


2015

http://www.cih.org/


2015

Samuel Lewis 1837 - 1901

£400,000

£30m

http://www.cih.org/

Southern Housing Group


2015

• One of southern England's largest housing associations

• Own and manage almost 28,000 homes

• 67,000 residents across London and the south east

http://www.cih.org/



2015

• Operations divided across five regions in the south east of the UK

• Includes around 70 local authorities and 150 parliamentary constituencies

• “A business with Social Objectives”

http://www.cih.org/



2015

http://www.cih.org/


• Samuel Lewis


2015

Samuel Lewis 1837 - 1901

£400,000

£30m

http://www.cih.org/



2015

1910 Liverpool Road E10

http://www.cih.org/



2015

2013 The Vega Building, Hove

http://www.cih.org/

Repairs

“Day to day repairs and maintenance”


2015

http://www.cih.org/



2015

Repairs

• “Repairs and maintenance are easy!”

http://www.cih.org/



2015

Repairs

• High Volume

• Low Value

• Tight profit margins

http://www.cih.org/



2015

Call Deploy Repair

Repairs

http://www.cih.org/



2015

Repairs – The Perfect Flow • The quickest, most efficient

route from request to completion

• But what about • Recalls? • Non first time fix?

http://www.cih.org/



2015

Call Deploy Repair

Repairs – The Perfect Flow

http://www.cih.org/



2015

Repairs – The Perfect Flow

Diagnosis Materials Movement

Tools Skills

Access Language Quality

Vulnerability Diversity

Health & Safety Scheduling Urgency

Productivity Training etc….

http://www.cih.org/



2015

Repairs

• Expectations

• Few ‘Delighters’

• Customer Service is key

• Service comparisons

http://www.cih.org/



2015

Repairs

http://www.cih.org/



2015

Repairs – is it easy?

• Expensive

• Low margins

• Complex

• High expectations

http://www.cih.org/

Procurement

“Contractor Selection Process”


2015

http://www.cih.org/



2015

Procurement - SHG

• Traditional implementation

• Standard PQQ

• Include strategies in ITT • Calls Direct • Process improvement • Measures

http://www.cih.org/



2015

Procurement

• 60/40 - Quality/Price

• Clarity on weighting

• Don’t restrict shortlist

http://www.cih.org/



2015

Procurement

• ‘Suicide bid’ clause

• Authorities will be required to

seek explanations from

suppliers that submit a tender

which ‘appears’ to be

abnormally low

http://www.cih.org/



2015

Procurement – final stage

• Detailed interviews – on site

• Simple presentations (no score)

• Open questions

• Operational representatives

http://www.cih.org/



2015

Procurement – final stage

• Full day site visit

• Cross disciplinary panel • Include specialists visit

• Minimum 1 day review and

appointment process

http://www.cih.org/



2015

Procurement – resident participation

• Part of initiation team

• Procurement briefing

• No review of scoring

• Part of selection team

http://www.cih.org/

Contract Model

“How we tie things together”


2015

http://www.cih.org/



2015

Contract Model

• Agreed maximum price (AMP)

• Based on repair history

• No SOR

• Define works In/Out of scope

http://www.cih.org/



2015

Contract Model - AMP

• Budget certainty

• Fluctuation clause

• Quarterly reconciliation

• Predictable cash flow

http://www.cih.org/



2015

Contract Model – Calls Direct

• Contractor takes calls 24/7

• Critical interaction – 1st Call

• Manage expectations

• Guarantee appointment

http://www.cih.org/



2015

Contract Model – Calls Direct

• QC Check by SHG

• Quarterly review

• Clear SLA

• Contractually binding

http://www.cih.org/



2015

Contract Model – IT integration

• Data swapping protocol

• Bespoke interface

• Maintain property lists

• Data visibility in both systems

http://www.cih.org/



2015

Contract Model – IT integration

• Remove duplication

• Improved reporting capabilities

• Repair history updated

http://www.cih.org/

Management

“Getting the best from our contracts”


2015

http://www.cih.org/



2015

Management – Pre-contract

• Clarity on scope

• Efficient lead-in period

• Shared goals

• Mutual appreciation of needs

http://www.cih.org/



2015

Management

• Process improvement focus

• Limited and relevant KPI’s

• Efficient contract review

• Co-location

http://www.cih.org/



2015

Management

• Ensure solid contract principles are applied and understood

• Not a soft option

http://www.cih.org/

Measures

“How are we doing?”


2015

http://www.cih.org/



2015

Measures

• Systems thinking

• Process improvement team

• One inch wide one mile deep

• Relevant measures only

http://www.cih.org/



2015

Measures – what don’t we do

• No targets

• No traffic lights

• No command and control

• No ‘urgent’ work category

http://www.cih.org/



2015

Measures – ‘Traditional’

• Fix first time

• End to end times

• Emergencies

• Direction of travel

http://www.cih.org/



2015

Measures

• Output measures as indicators only

• Complaints

• Customer satisfaction

http://www.cih.org/



2015

Measures

• Failure demand

• Measure value/non-value

• Pure resident experience

• Direct feedback

http://www.cih.org/



2015

Measures

• Failure demand

• Wrap-up codes

• Analyse waste

• Basis for improvement

http://www.cih.org/



2015

Measures

• Yield Data

• Inbound contacts • Calls/Orders

• Appointments • Made/missed

http://www.cih.org/



2015

Measures

• Yield Data

• Fixed first time • FFT/Orders complete

• Quality • Pass/fail

http://www.cih.org/



2015

Measures – yield data

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

YIE

LD

http://www.cih.org/



2015

Measures

• Relevant

• Timely

• Valid

• Be flexible

http://www.cih.org/

Nurture

“Getting the best out of your partners, using supportive methods”


2015

http://www.cih.org/



2015

Nurture

“…two or more organisations working together to improve performance through agreeing mutual objectives, devising a way of resolving disputes and committing to continuous improvement, measuring progress and sharing the gains”

Sir John Egan, July 1998

http://www.cih.org/



2015

Nurture

“…teamwork and long term trust

based relationships with suppliers

are far better than adversarial

relationships”

Dr W. Edwards Deming

Japan 1950

http://www.cih.org/



2015

Nurture

• Collaborative solutions

• Using specialist skills appropriately

• Play the long game

• Realistic objectives

http://www.cih.org/



2015

Nurture

“Aggregation of marginal gains”

“The 1 percent margin for improvement in

everything you do”

Sir Dave Brailsford, Performance Director, Team Sky Cycling

http://www.cih.org/



2015

Nurture

• Coaching

• Share training

• Emphasise one team working

• Push where appropriate

http://www.cih.org/



2015

Nurture

• How far do you go?

• Risky strategy

• Contract underwrites everything

http://www.cih.org/

Benefits

“What are the positive outcomes?”


2015

http://www.cih.org/



2015

Benefits

• Drive best value

• Continuous improvement

• Improved working relations

• Happy customers!

http://www.cih.org/

Summary


2015

http://www.cih.org/



2015

Summary

• Getting the right fit

• Use the procurement process to your advantage

• Invest time and resources early to select the right partner

http://www.cih.org/



2015

Summary

• Making it work

• Use your skills and specialisms to support your partners attributes

• Invest for the long term

http://www.cih.org/

Contracts – Getting the Right

Fit and making it work

Any questions?

CIH repairs and Maintenance

Conference - May 2015

http://www.cih.org/

contracts getting the right fit and making it work pdfs/repairs and... · getting the right fit and...

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