'Billions of pounds wasted by housing associations on boiler procurement'

Will Green is news editor of Supply Management
25 November 2014

Billions of pounds are being wasted by social landlords in the procurement of boilers, according to the Association of Gas Safety Managers (AGSM).

A review by the AGSM of the way boilers are bought, installed and serviced has found procurement processes to be “bureaucratic, expensive, a waste of public money, no longer fit for purpose, unsustainable, lacking in innovation and collaboration, leading to fragmented economies”.

Claire Heyes, CEO of the AGSM, said: “All stakeholders in the supply chain have highlighted issues and the public money being wasted on the processes is shocking.

“Money is being wasted by housing organisations and suppliers spending thousands of working hours in the development, submission and assessment of lengthy pre-qualification questionnaires and invitations to tender.

“Procurement frameworks don’t always encourage the best value for money over the lifetime of a boiler. None of this benefits the tenant at a time of welfare reforms and rising fuel prices.”

Lord Redesdale, CEO of the Energy Managers Association, who took part in the review, said: “The first stage of the review into the procurement process shows that there could potentially be billions of pounds of public money being wasted.”

The AGSM recommends wider benchmarking and standardisation, lifecycle costing rather than “cheapest wins”, increased tenant engagement, industry collaboration and a review of legislation.

The organisation said the next step would be to work with stakeholders to implement the findings.



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