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Publish Date : 15-Apr-2015

A procurement consortium of social landlords has introduced a materials framework worth around Ł250 million over four years. Total 17 suppliers have been appointed by Procurement for Housing (PfH) to deliver the framework comprising of 10 lots, that allows landlords to buy building, heating, electrical and renewable products for repairs and maintenance and new build developments.

According to PfH, with the help of this framework, landlords will be able to have more control over materials prices, which are either set quarterly or annually and in case if suppliers increase prices, PfH would help landlords to obtain justification and manage the impact. In order to ensure that the prices are in accordance with the tendered price list, checking of all prices are done on monthly basis.

The consortium was working directly with manufacturers for ensuring that they support supply chain prices and keep landlords up to date on market innovations that could create further savings. PfH said, additionally, this new deal will guarantee stock supply, ensuring that landlords are not exposed to the regional shortages and price increases.

According to Steve Malone, managing director of PfH, materials procurement accounts for about 50 per cent of overall spend for a large proportion of social landlords. He added, “Nearly one third of our 916 members used our previous materials framework, spending Ł100 million over two years. We’ve tried to provide more choice and competition in this new materials deal, doubling the volume of lots, increasing the number of suppliers, improving prices and introducing rigorous price control, something that’s essential with the new build targets and mounting financial pressures facing landlords.”

In 2004, PfH was established by the Chartered Institute of Housing, National Housing Federation and HouseMark, and it has 916 members that collectively manage over 75 per cent of the UK’s social housing stock. The framework was developed by PfH’s materials product group consisting of procurement and materials professionals from 11 member housing organisations.

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