Procurement consortium launches £250 million materials framework

7 April 2015

A procurement consortium of social landlords has launched a materials framework worth up to £250 million over four years.

Procurement for Housing (PfH) has appointed 17 suppliers to deliver the framework which consists of 10 lots, allowing landlords to buy building, heating, electrical and renewable products for repairs and maintenance and new build developments.

PfH said the framework enables landlords to have more control over materials prices. Prices are set either quarterly or annually and if suppliers increase prices, PfH said it would help landlords to obtain justification and manage the impact. All prices are checked monthly to ensure they are in line with the tendered price list.

The consortium added it was working directly with manufacturers to ensure they support supply chain prices and keep landlords up to date on market innovations that could create further savings.

The new deal will also guarantee stock supply, meaning that landlords are not exposed to the regional shortages and price increases, PfH said. Member housing organisations will be prioritised by merchants and stock sourced from across the UK to meet deadlines and demand.

Steve Malone, managing director of PfH said materials procurement accounts for more than 50 per cent of overall spend for a large proportion of social landlords.

“Nearly one third of our 916 members used our previous materials framework, spending £100 million over two years,” he said. “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.”

PfH was set up by the Chartered Institute of Housing, National Housing Federation and HouseMark in 2004. 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 which is made up of procurement and materials professionals from 11 member housing organisations.

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