Joint buying scheme saves housing trust £2.5 million

28 July 2010

28 July 2010| Angeline Albert    

Salford-based City West Housing Trust (CWHT) has saved £2.5 million since 2008, thanks to a joint procurement project with another social housing group.

In collaboration with Liverpool Mutual Homes (LMH), CWHT has set up framework agreements for architects’ and consultants’ services, which other UK local authorities and social landlords can use.

The five-year collaboration programme with LMH began when CWHT was formed in 2008 and aims to increase their purchasing power and reduce costs. The two north-west groups have established 4Site Partnership, a national tendering process for housing associations and local authorities that are looking to contract construction consultants and architects for development projects.

CWHT procurement manager Andrew Quick said the joint programme followed OJEU rules. “All contractors went through a rigorous tendering process. We are offering these framework agreements to local authorities and other registered social landlords to save them money. We have reinvested this into our housing programme.”

Out of a £235 million five-year budget to manage 14,500 homes in Salford, CWHT has so far spent £41 million on improving housing in the area.

LMH also saved millions of pounds, although it would not disclose the exact figure. LMH has a £400 million, five-year budget and manages 16,000 homes in Merseyside.

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