Partners win prizes

Companies working in the social housing sector are finding that partnerships with contractors are offering lucrative work. This practice has been encouraged by councils and local authorities that want a complete package of refurbishment for the best price.

A complete package can include roofs, doors, windows and bathrooms. Such deals are attractive for the social housing sector because they are more cost effective. The competition ensures, in theory, that they get the best deal.

High standards and transparent working practices are still required, although competitive costing counts for 60 per cent of the tender decision. Other criteria include quality, the range of products offered, and the ability to deliver the project on time.

There is a caveat for this kind of work that requires an open book, so that the local authority can check the supply chain at any time.

Plan together

When working together to such standards, and to enable the most competitve quote, fabricators and contractors need good communication to safeguard their profit margins.

Unplanned expenses can accrue if jobs are delayed and parts of the schedule need to be replanned, wasting staff hours and requiring stock to be put in temporary storage. However, this can be avoided by early communication of problems.

It is worth considering that local authorities do have some specifications in common, for example they all need handles and locks. So ordering certain stock in bulk could save money. However, particular products are often specified.

A more efficient method worth considering is a Just In Time warehouse system. This means stock is ordered as it is needed and prevents finance being tied up in stock.

Large contracts worth more

than £1 million require finances to be available. So large amounts of money tied up in stock could be a problem.

Horizons change for KEB

Social sector fabricator KEB has had to evolve with the changing requirements of the sector as well as incorporating the changes following a management buyout in January 2003 and the acquisition of JAG, in Kidderminster, in June 2005.

These changes have helped to increase turnover by 30 per cent even though the company has faced new challenges. The customer base has changed, so KEB now deals with main contractors more often than working directly for registered social landlords and councils.

Today there is increased focus on health and safety, especially onsite. There has also been a push towards achieving more BSI standards. This included being one of the first companies to achieve the new BSI Kitemark certification for the survey and installation of windows and doors, which is specific to PVC-U windows.

This standard allows the company to self-certify that the window and door installations it works on meet current Building Regulations. It also means that all jobs are completed to an audited standard. This was chosen in preference to other self-certification schemes.

It can be difficult for a window company to work direct because they don’t offer the whole package, so working in partnerships provides more opportunities

KEB recruits its own installers as it has to take into account recruiting locally, the diversity of the workforce, the sustainability of the community and environmental issues, which can all affect the decision to award the project to a particular company.

Rewarding relationship

KEB works in partnership with construction companies such as Lovell, Wates Construction and Frank Haslam Milan, to name a few.

Lawrence Breakspear, Managing Director KEB, says, ‘90% of its projects are now with main contractors’. It can be difficult for a window company to work direct because they don’t offer the whole package of roofing, kitchens and bathrooms. So working in partnerships provides more opportunities.

The company still works directly in some situations. For example it recently worked with Aldwick Housing Association on a job worth more than £1 million.

A welcome change to how the company hears of certain jobs has come about through the partnerships. Contractors that have worked successfully with KEB on previous jobs notify them of possible tenders, that they could work in partnership on in future. Of course the company still needs to promote itself and find new tender leads as well.

KEB has medium term contracts with Sunderland Housing Group and Gateshead Council, which means it does refurbishments for them in a partnering deal over a minimum five year period.

The company are currently working on four tower blocks, at Civic Close, for Birmingham City Council. This job is in partnership with Wates Construction, who are recladding the building.

The blocks are in the shadow of the Symphony Opera House and the project has a value of approximately £1 million. This job was scheduled to take five months and should be finished by the end of 2006.

Special requirements

Civic Close has certain specific requirements, and to help meet them a KEB site manager is providing full site supervision. This position adds value by ensuring all requirements are met, which includes the build programme, the environmental specifications and that high health and safety standards are kept up on site. The overall site infrastructure maintenance is managed by Wates.

The contract specified that occupants had to be able to clean their windows from the inside. This was to avoid the use of window cleaner hoists. So, the windows had to be full frame pivot windows. Security and ventilation were also major concerns, as was strong hardware to withstand high winds at the top of the 17 floors.

Method fit for purpose

All installations had to be done with mast climbers, which were fitted to the building. This method was chosen because it was less intrusive for the residents, it offers better security than scaffolding, while the work is being completed and it is less expensive than scaffolding.

The contract required the company to complete two floors a week and work in conjunction with other trades, for example the masonry refurbishment by Wates. As such a large part of KEB’s business depends on making partnerships work, it is no surprise that the company works hard to maintain good relations with its partners. This is the key to getting the most out of these sort of deals.