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					          NEWHAM HOMES DELIVERY PLAN 2005-6

CONTENTS

      Item                                      Page
      Objectives                                2
      Performance Management                    4
      Best Value/Service Improvement Reviews    7
      Financial Management                      8
      Stock Condition                           10
      Resources                                 15
      Resident Involvement and Participation    20
      Governance                                21
      Appendix 1 Delivery Plan 2006/7           23
      Appendix 2 Roles and responsibilities     24
      Appendix 3 Draft Procurement Strategy     32
      Appendix 4 Performance Indicators
      Appendix 5 Staffing structures
      Appendix 6 Indicative Capital Programme
                        2004-6




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Delivery Plan 2005/6
INTRODUCTION

This is Newham Homes first Delivery Plan and it covers the period December
2005 to March 2006. It also includes a timetable showing how we will review
and develop next year’s Delivery Plan (Appendix 1).


OBJECTIVES

Newham Homes is committed to delivering quality services.



Newham Homes aims to provide:

        Homes people want to live in
        Estates that are clean and safe
        A staff team that treat customers fairly, efficiently and appropriately
        Information that is clear and easy for everyone to understand
        Residents with top quality services that suit them, at a reasonable cost

Newham Homes will work in partnership with organisations, residents and
staff to meet its aims.

London Borough of Newham’s vision is that by 2010, Newham will be a
place where people choose to live and work. When the Vision has
been achieved, Newham will be a place:

         Which is attractive, clean and well maintained
         Which is safer and where people feel safe
         Where young people are healthy, educated, safe, have high
          aspirations for employment and good self esteem
         Where the diversity of its people is celebrated, where people live
          harmoniously, respect each other and play a full part in the life of
          their community
         Which is thriving economically and socially and where all people
          share in the growing prosperity
         Where health and well being and the quality of housing continues
          to improve, where people are active, have greater independence
          and where the most vulnerable are supported.



The diagram below sets out how the Council’s Vision is linked to Newham’s
Delivery Plan right through to the staff appraisal scheme. Newham Homes
will support and help deliver the aims of the Council as set out in the Council’s
corporate plan.


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                       Newham’s Vision




                            Mayor’s
                            priorities                  Consultation

                                                        Staff
Linked housing                                          Customers
plans including                                         Stakeholders
HRA Business           Housing Strategy                 Partners
Plan


 Equality
                       Newham Homes
 Standard
                       Delivery Plan


 Tenant &
 Leaseholder                                          Reviews & Inspections
                             Newham Homes /
 Participation                                         Service Improvement Reviews
                             Service
 Compact                                               AC Inspections
                             Improvement Plan
                             and Financial Plan        Quality Inspections
                                                       Best Value Reviews




                           Individual Plans/Targets
                           (Appraisals)




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    PERFORMANCE MANAGEMENT


Performance Management Principles

    Newham Homes and the Council will work together in partnership. Newham
     Homes will be responsible for managing the services set out in the
     Management Agreement and the Council will be responsible for the
     strategic monitoring of the Delivery Plan.

    Newham Homes Board and Management Team will be responsible for
     delivering and achieving Newham Homes aims, and for developing
     appropriate performance measures to achieve these.


    Newham Homes will be responsible for gathering information and reporting
     regularly to the Council on performance and key success measures.

    Monitoring by the Council will be undertaken in the spirit of partnership.


    Newham Homes’ performance management framework will build on the
     Council’s current performance management framework.



    Performance Monitoring

    Performance monitoring is essential in order to ensure that Newham Homes
    is focused on its key priorities and continues to improve services

    Performance monitoring contributes to this in the following ways:

     What gets measured gets done – but we must ensure we use the right
      measures
     If we don’t measure results, we can’t tell success from failure
     If we can’t see success, we can’t reward it
     If we can’t recognise failure, we can’t correct it
     If we can’t recognise success or failure, we can’t learn from it

    Performance Measures will be used to:

     Show how well Newham Homes is performing against key targets/meeting
      Council priorities/achieving Decent Homes.
     Identify the priority areas that need to improve further
     Show whether or not Newham Homes is improving services

    Newham Homes will have 4 types of performance measures, called
    Performance Indicators (PIs):


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 Best Value Performance Indicators (BVPI) - set by the Audit Commission
  & reviewed annually.
 Local Performance Indicators - these will be set by the Board on an
  annual basis and reported to the Audit Commission.
 Management Performance Indicators - these will be set annually by
  service managers for local management use
 Financial Indicators

The first year’s Performance Indicators and targets will be those already
developed by the Council. Thereafter, these will be reviewed each year jointly
with the Council to ensure that they are appropriate and challenging, and
clearly reflect delivery against Newham Homes key aims.

Performance Measure             Target      Links to Newham Homes aims
                               2005/6
Best Value Performance
Indicators
Average time take to re-let    55 days      Top quality services
property
% of planned repairs and       New          Top quality services
maintenance expenditure        2005/6
compared to responsive
repairs and maintenance
% expenditure on               New          Top quality services
emergency and urgent           2005/6
repairs compared to non-
urgent repairs
% of homes non-decent at       53.62%       Homes people want to live in
1st April 2006
% change in number of          14%          Homes people want to live in
non-decent homes
Average SAP rating             61           Homes people want to live in
 % of total rent collected     96.25%       Top quality services
% of rent arrears of current   Not          Not applicable
tenants                        applicable
% of tenants owing more        New          Top quality services
than 7 weeks rent              2005/6
Number of notices served       New          Top quality services
as a % of number of            2005/6
tenants in arrears
Number and % of tenants        New          Top quality services
evicted as a result of rent    2005/6
arrears

Overall satisfaction of        82%          Homes people want to live in
service provided by landlord   2006/7       Estates that are clean and safe
                               survey       Staff
                                            Information
                                            Top quality services

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Overall satisfaction of        79%          Homes people want to live in;
service provided by the        2006/7       Estates that are clean and safe;
landlord – BME tenants         survey       Staff; Information; Top quality
                                            services
Overall satisfaction of        85%          Homes people want to live in;
service provided by the        2006/7       Estates that are clean and safe;
landlord – non BME tenants     survey       Staff; Information; Top quality
                                            services
Overall satisfaction with      57%          Staff
opportunities to be involved   2006/7       Information
in management and              survey       Top quality services
decision making
Overall satisfaction with      57%          Staff
opportunities to be involved   2006/7       Information
in management and              survey       Top quality services
decision making – BME
tenants
Overall satisfaction with      57%          Staff
opportunities to be involved   2006/7       Information
in management and                           Top quality services
decision making – non BME
tenants
Invoices paid within 30 days                 Top Quality Services
                               yes           Homes people want to live in
Compliance with CRE code                     Estates that are clean and safe
of practice in rented                        Staff
housing                                      Information
The full suite of Performance Indicators is attached (Appendix 4)

Improving Services

From April 2006 onwards Newham Homes will have an annual Service
Improvement Plan (SIP) which will show how we will achieve improvements to
services. The Plan will make use of evidence from performance monitoring,
bench marking, customer satisfaction, inspection reports as well as learning
gathered throughout the previous year. Improvements will aim not just to
improve the quality of services, but also to increase efficiency and value for
money. In addition, Plans will incorporate service improvement measures
agreed with residents, and included in the review of the Tenants Compact. It
will also use good practice from inspection reports of other similar
organisations, and use the Audit Commission’s Key Lines of Enquiry to assist
with service planning.

Resources will be targeted where necessary to those areas where:

 Our performance compared to similar organisations is weak; and
 Customer satisfaction is low

In addition, we will seek feedback from residents and front line staff on areas
for improvement, through an annual planning process.

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BEST VALUE /SERVICE IMPROVEMENTS REVIEWS
The Council has evolved its approach to Best Value, dating back to its
involvement as a Best Value pilot Council. The Council has a track record of
undertaking best value reviews.

The re-structure of the Housing Service in 2000 arose from a whole service
Housing Management Best Value Review undertaken in 1998. Since that
time, the annual service planning process, together with the Housing
Management Inspection Improvement plan, has focused on delivering
continuous improvement across the housing management and repairs
services.

We have acted on the recommendations of the Best Value Reviews and the
recommendations arising from previous Audit Commission inspections.

A Best Value Review of Right to Buy and Leasehold management was
undertaken in 2002-03, leading to creation of the Home Ownership and
Leasehold Services team, and satisfaction with the service has increased
substantially (source, Satisfaction Survey 2005).

Reviews of services relating to council priorities in 2004 led to the formation of
the Public Realm service and the Crime and Anti-Social Behaviour Service.

The Options Appraisal process and establishing the ALMO have led to a
review of how housing management services are delivered and structured

A thorough review of the entire asset management function is being
undertaken. This covers all aspects of the service but focuses particularly on
fundamental improvements in procurement, ranging from major partnering
contracts for major works to furthering best value in planned and responsive
repairs. Newham Homes will be responsible for implementing the
recommendations arising from the review.

Newham Homes will carry out reviews of services provided by the Council,
using best value principles. These reviews will focus on quality, efficiency,
and value for money and customer satisfaction.

Newham Homes will participate in any Council led Best Value reviews that
have an implication for the delivery of housing services or where it can
contribute its expertise.




FINANCIAL MANAGEMENT

A finance team based in the Resources and Service Improvement Directorate
will manage the accountancy functions for Newham Homes.


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The Council has delegated budget management to cost centre managers for
many years, and as a result, Cost Centre managers are experienced in
managing their budgets.

Newham Homes Management Team will receive regular financial monitoring
information. Each month, out-turn will be scrutinised, with a full quarterly
review, presented to the Board and to the Council.


Newham Homes will use the council’s established financial systems;
however, protocols and controls have been put in place in the financial
systems to ensure Newham Homes has independent financial management
and control.


Financial Management Principles

-       There should be sufficient resources within Newham Homes to make
        sure that it has adequate financial and accountancy skills to manage
        the business in a professional manner.

-       Newham Homes will fully co-operate with the Council to develop
        appropriate financial controls, through an audit programme and
        financial performance indicators.

-       Newham Homes will provide financial management information to the
        Council each quarter.

-       Newham Homes Management Team will receive monthly financial
        performance management information

-       Newham Homes Board will receive quarterly financial reports
-       Newham Homes Board will establish a finance sub-group, which will
        receive in-depth financial reports and will be responsible for financial
        forward planning.

-       Newham Homes will ensure that all managers are fully aware of their
        fiduciary responsibilities and are supported through training and
        support from the finance team.

-       Newham Homes Service Improvement Plan will include specific
        measures to improve value for money throughout the organisation

-       Newham Homes will fully co-operate with the Council to contribute to
        its efficiency agenda




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    Budgets

    Newham Homes will have three main budget areas to manage:
        an operational services budget,
        a managed service budget
        a capital budget.
    The operational budget will be for the internal management of Newham
    Homes (eg salaries, office accommodation). The managed services
    budget will relate to the direct costs of service delivery (repairs, utilities).
    The capital budget will be for expenditure on the Decent Homes
    programme, estate improvements and major works.

    Funding for operational services will be from the Council’s Management
    Fee. For managed services and the capital budget, the Council will
    delegate responsibility for managing budgets to Newham Homes. Only
    Newham Homes staff will be able to approve expenditure for these
    budgets.

    Newham Homes will have freedom to vary budgets in line with its scheme
    of delegation but it will not be able to transfer budgets between the
    operational and managed services without the agreement of the Council’s
    Director of Housing and Public Protection.


    Nominated officers from the Council and Newham Homes will liase each
    year to agree budget preparation arrangements for both the Housing
    Revenue Account and Newham Homes’ budgets. Budgets will be agreed
    in November prior to the beginning of the financial year

     The council has a well-established approach to financial planning,
     incorporating fundamental reviews of spending to identify efficiencies and
     unnecessary spending. The approach has allowed the Council to redirect
     resources to priority services in a controlled way, maintaining financial
     stability. Newham Homes will adopt this financial management approach.

    During the year, the budgets can be amended by agreement between the
    Council and Newham Homes for any of the following reasons:

     additional services requested by the Council
     unforeseen extra costs and variations outside the control of Newham
      Homes
     efficiency improvements in the delivery of agreed services

    Management Fees

    The operational budget will be paid by the council as a Management Fee.




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    Treasury Management

    The complexities of the existing financial management system prevents
    the separation of cash control in time for Newham Homes start date.
    Therefore a common Bank Account will be used for the interim, with
    periodic Newham Homes cash balance statements being produced.
    Newham Homes will have its own deposit account to hold the balance of
    the Management Fee. Longer term banking arrangements will be deferred
    until after Newham Homes is established.


    Payment for services provided by the Council

     Where services continue to be provided by the Council, the Council will
    account for the services provided and payment transfer will be authorised
    by Newham Homes from the operational or managed service budget as
    appropriate.

STOCK CONDITION
Newham has a flexible housing stock condition database, based on a
comprehensive whole stock survey undertaken by Hunters surveyors, with a
baseline date of April 2000. The survey gives information on the condition of
the Council’s homes. The survey also provides information on the Decent
Homes Standard, and on the work required in maintaining and improving the
stock.

The survey data has been regularly updated and in 2003 an additional 1000
surveys of the inside of properties were undertaken to validate and update the
original surveys. The stock condition survey provides Newham Homes with a
reliable and up to date basis for estimating the cost of meeting the Decent
Homes standard and other investment needs.

Newham Homes will continue to improve upon that knowledge by updating
the stock condition survey regularly with information gathered from other
inspections, and following improvement works to properties.

Using the stock condition information, our estimated investment needs from
2006 to 2010 are:
 £235 million to meet the Decent Homes Standard
 £156 million to deal with work falling outside Decent Homes definitions,
   including essential maintenance items (e.g. lifts) and resident priorities
   such as environmental and security improvements; and to provide key
   funding to support major housing regeneration initiatives

Decent Homes

The Council has made some progress to date in reducing the numbers of
non-Decent homes, but the increase over 2004-5 illustrates how the Council’s


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investment programmes are unable to cope with the numbers of properties
becoming non-decent as they age.

            Year                   Number non-Decent
            April 2001             11,720
            April 2003             10,565
            April 2004              9,812
            April 2005             10,068



Using the resources that we anticipate being made available as a result of our
successful bid, Newham Homes plan is to reduce the number of non-Decent
homes is as follows:

            As at                     Non-Decent
            April 2006                8,600
            April 2007                7,500
            April 2008                6,000
            April 2009                4,000
            April 2010                1,800
            December 2010             0


Capital Investment Programme

A capital investment programme is being developed to meet the Decent
Homes standard, achieve priorities for tenants’ aspirations and support the
Council’s objectives.

This fits closely with the Council’s overall investment strategy, which relies on
other initiatives to deliver the Decent Homes standard and current investment
objectives in particular geographical areas. These include PFI contracts in
Forest Gate and in part of Canning Town, and several major housing
regeneration projects involving demolition and redevelopment, prominently in
Canning Town and on the Brooks and Carpenters estates.

The capital investment priorities for Newham Homes are to:

      Repair, maintain and improve the Council’s housing stock effectively,
      economically, and efficiently, in a way that integrates with revenue-
      funded planned maintenance and responsive repairs programmes

      Meet the Decent Homes Standard by 2010

      Meet the property needs of elderly and disabled people

      Upgrade sheltered schemes



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       Expand the Alarm Service

       Improve energy efficiency

        Improve the estate environment and community safety

       Upgrade community centres on Council estates

       Meet Health and Safety requirements

                           -------------------------------------



To address these objectives we are formulating 7 main programmes of major
works, which will all be delivered through partnering contracts. We have a
needs-based approach to repairs and improvement to make sure that we
maintain the value of our properties, prevent the need for costly emergency
repairs and improve living conditions for residents. It is based on the principal
that, to maximise efficiency and minimise inconvenience to residents, any
property will be treated externally once over the period, and visited no more
than once for any internal work required.

 1. Tall Blocks Enveloping- refurbishing the outside of all of our tall blocks
    (including renewal of windows, cladding or roofs where required) and in
    internal common areas, bringing them all up to Decent Homes standards
    and laying the basis for a conventional cyclical maintenance programme
    at the end of the period.

 2. Low-rise Windows and Roofs Plus- refurbishing our low-rise purpose-built
    properties where needed, including repair and redecoration externally and
    in internal common areas, bringing them all up to Decent Homes
    standards

 3. Cyclical Preventative Planned Maintenance- for all our low-rise purpose-
    built properties where there is no need for works to achieve the Decent
    Homes standard. This programme provides repair and redecoration
    externally and in internal common areas on the basis of a 5-year cycle to
    maintain the integrity of the building and to prevent deterioration.

 4. Street Property Programme- refurbishing all acquired ‘street’ properties to
    full Decent Homes standards internally and externally.

 5. Heating Plus- providing new central heating systems or new boilers where
    this is required for Decent Homes standards. Included with central
    heating installation are new bathrooms, new kitchens where necessitated
    by the disruption, and re-wiring where this is required.

 6. Kitchens Plus- providing new kitchens in the remaining purpose-built
    properties where the Heating Plus programme has not resulted in the

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    home meeting Decent Homes standards. Kitchen installation will include
    full rewiring where necessary.

7. Environmental and Security Improvements- customer built schemes of
   landscaping and/or electronic or physical security improvements,
   enhancing the environment and community safety. These follow resident
   participation and are tailored to specific local needs.




              Programme                           2006-11
              Tall blocks enveloping              £35 m
              Low-rise windows and roofs plus     £45 m
              Cyclical Preventative Planned       £13m
              Maintenance
              Street Property Programme           £20m
              Heating Plus                        £30m
              Kitchens plus                       £63m
              Environmental and Security          £30m
              Improvements

In addition to the 7 main programmes, there is a need for on-going works
programmes as follows:


Gas Servicing: All gas installations are serviced annually by a Corgi
Registered Contractor.

Day-to-day repairs: Appointments are made for non-urgent matters.

Empty properties: These properties are inspected, checked for safety and
repairs are undertaken so the property can be let again, as quickly as
possible, to meet the needs of the new tenant. A review of the void process
is currently underway and Newham Homes will implement the
recommendations.



Delivering the capital investment programme

Newham Homes’ Procurement strategy (Draft Appendix 4) sets out how
services will be procured. It is our intention to deliver the programme through
a number of long term partnering arrangements with contractors.

        Newham Homes will have an approved “Consultant & Contractor” list
that will be subject to Board approval on a regular basis, not less than every
two years. This Approved list, whilst separate to that held by Newham
Council, should reflect any concerns known to the Council.


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This list will not be used to obstruct the European competition legislative
process that must be followed in much of the procurement Newham Homes
undertakes.

Working from the an approved bank of Consultants and Contractors, due
regard will be given to the following criteria and needs:

         Supply Chain Management – ensuring that manufacturers work
           with Newham Homes to deliver the most advantageous packages
           to meet the aspirations of both residents and officers.
         Contractors and sub-contractors, including specialist contractors
          are engaged in accordance with proper procurement procedures,
          including European competition requirements.
         Local Labour in construction
        Equal Opportunity considerations

Resident Participation in the investment programme

Residents will be involved in every project, from the start right through its
various stages, until the projects ends.


 Training will be given to ensure residents understand their role in
procurement of services. Training of residents is key to meaningful
participation and empowerment.

Given the amount of procurement over the next five years, this means that a
number of residents will be able to participate, giving opportunities for a range
of people to become involved.

The income that can be recovered from leaseholders is likely to be over £8
million. It is essential that the requirements for leaseholder consultation
under S151 of the Commonhold and Leasehold Reform Act 2002 and S20,
Landlord and Tenant Act 1985 (as amended 1987) are not compromised by
the drive to complete the programme.


The indicative capital resources that have been used to construct this
 programme are set out in the table below:


Year                   SCE (£,000)       MRA (£,000)          ALMO (£,000)
2005/6                 16,410            14,691               24,000
2006/7                 16,410            13,861               54,000
2007/8                 16,410            13,819               54,000
2008/9                 16,410            13,433               54,000
2009/10                16,410            13,069               54,000
2010/11                16,410            12,809               54,000



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      RESOURCES

      Staffing

      The senior management structure is set out below.



                                          Chief Executive




Director, Housing          Director, Resources       Director, Property     Director, Repairs and
    Services                   and Service               and Asset              Maintenance
                              Improvement              Management



      A brief description of each service area is set out below.

          The Housing Service Directorate is responsible for delivering the core
          landlord services to the tenants and leaseholders of Newham Homes. The
          services provided include:

             Direct provision of housing services to tenants and leaseholders
             Responsibility for ensuring that the council delivers top quality services to
              tenants and leaseholders
             Maximising value for money and increasing customer satisfaction
             Improving resident participation
             Involving customers in decision making processes

          Resources and Service Improvement Directorate is responsible for making
          sure that resources are available and used effectively to support the delivery
          of Newham Homes objectives. This includes:

             Prudent financial management
             Communications
             Service Improvement
             Optimising value for money and increasing customer satisfaction
             Involving customers in our decision-making process
             Support services that are responsive and meet the needs of Newham
              Homes




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Property and Asset Management Directorate is responsible for delivering
the asset management, maintenance and improvement of Newham Homes’
housing stock which includes:
 managing property, financial and human resources with economy,
   efficiency and effectiveness
 optimising value for money and increasing customer satisfaction
 Involving customers in our decision-making process

Repairs and Maintenance Directorate is responsible for providing statutory
and other services in the areas of repairs and property maintenance, this
includes

   Ensuring that the Council’s housing, buildings and other facilities are
    sustained and improved to the benefit of residents and other users
   optimising value for money and increasing customer satisfaction
    Involving customers in our decision-making process

Detailed staffing structures are attached (Appendix 5)




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Newham Homes will provide its services from the following locations:

Service                Location
NH Headquarters        236 Romford Road
                       Forest Gate
                       London E7 9RF
Home Ownership         Home Ownership & Leasehold Services Unit
and Leasehold          Bridge House
Service                320 High Street
                       Stratford
                       E15 1EP
Rents Service          25 Moorey Close
                       Stratford
                       E15 3JP
Elders Service         Holden Point
                       Waddington Road
                       Stratford
                       London E15 1QW.

Repairs and            Bridge Road Depot
Maintenance            Abbey Road
Property and           Stratford
Asset                  London E15 3LX
Management


Housing Service      236 Romford Road
from 6 local offices Forest Gate
                     London E7 9RF

                       Local Service Centre Docklands
                       4 Pier Parade
                       London E16 2LJ

                       Local Service Centre Stratford
                       112-118 The Grove
                       London E15 1NS

                       20 Freemasons Road
                       London E16 3NA

                       Local Service Centre Green Street
                       403-405 Green Street
                       London E13 9AU

                       Local Service Centre Canning Town North
                       3 Beckton Road
                       London E16 4DT

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Initial customer enquiries will primarily be dealt with in person at the Council’s
Local Service Centres, via the phone by the Contact Centre or via the web
site. Newham Homes will have a separate telephone number and its own
website. All Local Service Centres meet the requirements of the DDA.
Repairs are reported through the dedicated Repairs Operation Centre, with
direct access to specialist staff where applicable. Estate cleanliness, fly-
tipping, dumped vehicles etc are reported through the dedicated
Environmental Hotline, and dealt with by specialist staff in the Public Realm
Service.

Access to interpreting facilities is integrated into all service delivery areas,
which can draw upon the Council’s Language shop where required.

ICT

Newham Homes will use the following computer systems and hardware:

                Integrated housing management system (isys) for Rent and
                Arrears Management, Service Charge Management, Repairs
                Ordering, and Property Purchase
        -              Customer Tracking; FLARE (ASB); Housing Benefit
        -              Asset Management System
        -              Masterpiece Financial Management System Payments
                system

Newham Homes will continue to use the Council’s ICT support service centre
to maintain the computers, and computer programmes.

Newham Homes will act in accordance with the Data Protection Act, Freedom
of Information Act and will ensure that the integrity and security of the
Council’s data is not compromised in any way.

Support Services

Newham Homes will continue to purchase support services from the Council.
The most significant services are:

        -              IT
        -              Legal
        -              Insurance
        -              Human Resources
        -              Payroll
        -              Property and Design

Service Level agreements will set out service standards and costs. Newham
Homes will be responsible for monitoring the agreements and approving
expenditure. All support services will be subject to a formal review in the first
12 months of Newham Homes operation


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The council will continue to provide a number of services directly to residents.

These services are
      Concierge services
      Estate cleaning including caretaking and horticultural works through
      the Public Realm Division
      Dealing with severe cases of harassment and anti-social behaviour
      through the Crime and Anti-Social Behaviour Division
      Access for customers through Local Service Centre, Contact Centre,
      and web.
      Allocations which will be carried out by the East London Lettings
      Company in accordance with the Council’s Choice-based Lettings
      scheme

Newham Homes will also provide services to the Council or its agents,
including
       Rent arrears recovery for TMO
             Municipal Building contract

        Newham Network which will work closely with Social Services to
        provide a service to a range of vulnerable elders

        Tenancy Audit for TMOs and PFI

Partnership Agreements for directly provided services will set out service
standards, costs, and customer satisfaction and improvement plans.
Newham Homes will be responsible for monitoring and reviewing the
agreements.

Protocols for reviewing Service Level Agreements and Partnership
Agreements have been agreed.


Quality Standards

Newham Homes is committed to delivering quality services and in the first
year will adopt the Council’s policies in relation to customer care, equal
opportunities, and Equalities Standards.

Newham Homes will adopt a quality assurance approach, which will include a
quality management system. External accreditation for its quality
management system will be obtained; currently this is through the
requirements of ISO 9002.
The Council’s housing management service has a current Investors in
People accreditation. This will be extended to the whole organisation.

Newham Homes will adopt the Equality Standard framework and will carry out
Equality Impact Assessments when introducing new policy initiatives.




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Newham Homes will adopt the Council’s Customer Care Strategy and will
review existing systems and processes to ensure continuous improvement.

Newham Homes will operate a complaint process and will integrate feedback
from complaints in the service planning process.

Newham Homes will comply with any protocols that are currently in place for
partnership working on matters that affect tenants and leaseholders, and will
assist the council in developing new protocols and working practices for
successful partnership working.



RESIDENT INVOLVEMENT AND PARTICIPATION

Newham Homes is committed to increasing opportunities for residents to
influence service delivery. Newham Homes will

        -              Regularly review the Tenant and Leaseholder
                       Participation Compact
        -              involve tenants and leaseholders at an early stage in the
                       service planning process
        -              use focus groups and surveys to involve residents
        -              provide empowerment training to residents to help them
                       fully contribute and participate
        -              continue to invest resources to support the formal tenant
                       and resident participation structures
        -              provide information on a regular basis through its own
                       Newsletters and other media that residents prefer

Newham Homes will support and develop the existing Area Tenant Liaison
structure. The ATLC will act as a key forum for involving its residents in
monitoring services, improving services and consulting on new initiatives,
policies and capital investment programmes.



GOVERNANCE

Newham Homes is a company limited by guarantee, which is wholly owned
by the Council. It is governed by a Board made up of:

        5 members nominated by the Council
        5 independent members appointed by the Board
        5 residents, selected by residents

The aims of the Company and the governance arrangements are set out in
the Memorandum and Articles of Association.



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                                                                             st
The Company will manage the Council’s remaining housing stock from 1
December 2005. (Excluding properties managed by Canning Town PFI and
Carpenters and CTR Toms). It will continue to manage properties in the
Forest Gate PFI area until the PFI contract is operational.

The relationship between the Council and Newham homes will be governed
by the Management Agreement. The Agreement sets out the following:

        The services NH will provide on behalf of the Council
        The service standards that Newham Homes is required to meet
        The action that the council will take if services are not provided to the
        council’s satisfaction
        The financial management framework and the fee which the council
        will pay for the service.

Monitoring arrangements

Newham Homes will provide the Council with the information necessary to
meet its statutory obligations in relation to current, or future, services. This
includes information required by:

        The Council’s Monitoring Officer
        The Council’s Chief Finance Officer
        The Mayor, Scrutiny panels, Cabinet and full Council
        District Auditor
        Local Government Ombudsman and any similar persons or bodies

Newham homes will meet with the Council monthly to discuss:

 Performance
 Financial issues
 Any other relevant issues

Newham Homes Board will nominate Board Directors to attend quarterly
meetings with the Mayor of Newham to review progress against Delivery Plan
targets.

Newham Homes will provide information and contribute as and when
necessary to help the Council to update and develop strategies and policies,
including the HRA Business Plan, Housing Strategy and the Council’s
corporate plan.

At the request of the Council, Newham homes will provide information on the
following:

 Contract documentation for any contracts entered into on behalf of the
  Council
 Data compliance documentation
 Documents in relation to formal complaints


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 Co-operation and access to personnel and other records to assist the
  council in carrying out investigations already underway at the start of the
  Agreement and any investigations which are carried out after the
  termination or expiry of the agreement.




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APPENDIX 1

Project Plan – Delivery Plan 2006/7


Action                            timescales for completion
Service Planning Event for        September 2005
residents and staff
Review and feasibility study of   December 2005
tenant and staff aspirations
Board formal Review of            January 2006
performance against aims
Draft Delivery Plan for           February 2006
consultation
Board and Council approve         March 2006
Delivery Plan




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APPENDIX 2 ROLES AND RESPONSIBILITIES




HOUSING SERVICES DIRECTORATE

Strategic Purpose:
The strategic purpose of the Housing Services Directorate is to deliver the
core landlord services to the tenants and leaseholders of Newham Homes.
The services provided include:

   Providing direct housing services to tenants and leaseholders
   Responsibility for ensuring the effective delivery of services provided by
    the council to tenants and leaseholders
   Optimising value for money
   Increasing customer satisfaction
   Involving customers in decision-making processes

The Housing Services Directorate is divided into 4 main staff Groupings,
within which there are a number of Teams. The four Groups are:

        1.   The Home Ownership & Leasehold Services Group
        2.   The Rents & Tenancy Services Group
        3.   The Housing Services Group
        4.   The Elders Services Group

The main functions and responsibilities of the Groups and Teams are as set
out below.


1.) The Home Ownership & Leasehold Group is responsible for:

   Ensuring that secure tenants enjoy the statutory right to buy their homes
    under the Right To Buy
   Ensuring that all aspects of services provided to Leaseholders are of high
    quality

The Group is divided into four teams of staff:

    The Home Ownership Team is responsible for ensuring that tenants who
    wish to become leaseholders or freeholders are assisted in so doing,
    making fully informed decisions

    The Services Charges Team is responsible for ensuring that the
    administration of service charges in conducted in an efficient and effective
    manner



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    The Consultation Team is responsible for ensuring that Leaseholders are
    fully consulted, in line with all legislation, about any impending works that
    they will subsequently be charged for

    The Quality and Service Development Team supports the work of the
    other teams, ensuring that the Home Ownership and Leasehold Group is
    in full compliance with all legislation, and demonstrates an ongoing
    commitment to continuous improvement


2.) The Rents & Tenancy Services Group is responsible for:

   Signing up new tenants and explaining their responsibilities in full,
    especially in relation to the payment of rent
   Providing rent collection and debt management services to tenants, with
    emphasis on debt reduction and income maximisation. This includes the
    management of current and former tenants accounts, ensuring that the
    needs of vulnerable and low-income tenants are identified and managed,
    and partnership working with the Council’s Housing Benefits, Supporting
    People, Local Service Centres and Social Services staff
   Tenancy Audit to ensure Newham Homes properties are only occupied by
    bona fide occupants

The Group is divided into five teams:

The Lettings Team is responsible for liaison with the Choice Based Lettings
Team, and with the Repairs Team, to ensure the sign up of new tenants is
done in a timely fashion.

The Rents Service Team is responsible for the management of Current
tenants rent accounts and providing welfare and debt advice to tenants

The Rent Service Support Team is responsible for Former Tenant Arrears,
providing a service to the HPU and manages rents systems and payments

The Tenancy Audit Team is responsible for gathering information from the
Lettings team taken from tenants at sign-up and then on-going monitoring to
ensure authorised occupancy of Newham Homes properties

The Admin & Resources Team supports the work of the other teams,
ensuring that the Tenancy Management Group is in full compliance with all
legislation, and demonstrates an ongoing commitment to continuous
improvement




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3.) The Housing Services Group is responsible for:

   providing tenancy and leasehold management and estate services
    through a network of local offices
   Providing tenancy support to help maintain tenancies
   Dealing with issues relating to harassment, anti-social behaviour, and
    repairs
   Maintaining key local partnerships, with resident groups, councillors and
    other community based service providers, for example community police
    teams, community mental health and social services teams.
   Supporting and developing Tenants and Residents Associations,
    including building capacity by training and empowerment programmes

The Group is divided into two teams:

The Community Housing Teams are locally based, and are the teams who
are the first point of call for tenants and leaseholders. The team also
undertakes liaison with other service providers to ensure high-quality and
seamless services to tenants and leaseholders

The Resident Empowerment & Consultation Team works with the tenants
and leaseholders of Newham Homes, to maximise their involvement in
service delivery and the configuration of services


4.) The Elders Services Group is responsible for:

   Management of Sheltered Housing Schemes

   Providing a Community Alarm and Mobile Response Service

The Group is divided into two teams, who work closely together and in
addition work closely with the Social Services department, and Primary Care
Trusts.

The Sheltered Housing Team manages Newham Homes sheltered Housing
schemes situated in Newham.

The Newham Network Team provides a Community Alarm and Mobile
Response service to residents of Newham Homes residents, residents of
other landlords in Newham, and also to other landlords outside of Newham




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REPAIRS AND MAINTENANCE SERVICE




Strategic Purpose
The strategic purpose of Repairs and Maintenance Service is to provide
statutory and other services in the areas of repairs and property maintenance,
this includes

   Ensuring that the Council’s housing, buildings and other facilities are
    sustained and improved to the benefit of residents and other users
   optimising value for money and increasing customer satisfaction
    Involving customers in our decision-making process


Repairs Operatives Group

   completing urgent, emergency, responsive and planned repairs and
    installations for the borough’s tenants, leaseholders and residents
   maintaining tenant homes , dwellings, public buildings and those with
    requirements for special adaptations
   ensuring that empty properties are available for swift re-letting to new
    tenants.
   Specialist works such as asbestos, electrical, carpentry and plumbing are
    part of the every day service provision.

                             The Stores Group

   responsible for the cost effective purchasing and storage of materials for
    the Borough and its external clients.




RESOURCES AND SERVICE IMPROVEMENT


Strategic Purpose
Resources and Service Improvement is responsible for making sure that
resources are available and used effectively to support the delivery of
Newham Homes objectives. This includes:

   Prudent financial management
   Communications
   Service Improvement
   Optimising value for money and increasing customer satisfaction

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    Involving customers in our decision-making process
   Support services that are responsive and meet the needs of customers
    (internal and Board)


Financial Management

-       manage the accountancy function
-       deliver an efficient payments system and ensure invoices are
        processed speedily
-       working with Service managers to monitor budgets
-       preparation of a revenue budget
-       treasury management
-       preparation of Limited Company annual Accounts and Returns
-

Governance and Secretariat

-       support to Newham Homes Board
-        Company Secretary functions
-       support to Newham Homes Directors


Service Improvement and Performance

-       manage and implement Newham Homes communication strategy,
        including external and internal communications activities
-       co-ordinate events across Newham Homes to maximise opportunities
        for tenant and resident involvement
-       collecting and collating information and evidence to support service
        development and service improvement
-       implement and develop Newham Homes performance management
        framework and quality management system, including complaints
        handling
-       develop strategies for continuous service improvement including
        equalities development and new business initiatives
-       monitoring support services SLA, eg HR, ICT
-       co-ordinating service reviews , both within Newham Homes and by
        other service providers
-       co-ordinating activities relating to the Equality Standard
-       co-ordinating strategic data management




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PROPERTY AND ASSET MANAGEMENT SERVICE


Strategic Purpose
The strategic purpose of the Property and Asset Management is to deliver the
asset management, maintenance and improvement of Newham Homes’
housing stock, which includes:
 managing property, financial and human resources with economy,
   efficiency and effectiveness
 optimising value for money and increasing customer satisfaction
 Involving customers in our decision-making process


Asset Management

The Asset Management Group:
 prepares and implements a maintenance and improvement strategy for all
   of Newham Homes’ housing stock, securing the achievement of our
   objectives, and in accordance with that strategy it:
 provides an asset management service for both housing stock and non-
   residential assets
 assesses stock condition and identifies the need for investment
 plans and manages the capital investment programme
 manages procurement arrangements
 commissions and manages major works projects from in-house or external
   technical staff

The Programme Team uses Newham Homes’ stock condition database and
other sources of data to assess the need for investment (including work
required to meet the Decent Homes Standard), and plans maintenance and
improvement programmes to meet that need. Those programmes are then
commissioned and their progress monitored and controlled to ensure financial
resources are utilised most effectively. This includes developing a
comprehensive maintenance and improvement strategy, and ensuring our
programmes meet best practice in the areas of community and environmental
sustainability. This involves close liaison with Newham Council, relating to
Housing and Public Protection’s role in major regeneration projects and
Financial Support’s role in funding and financial monitoring.

The Project Management Team commissions design and contract
administration services from technical staff in Newham Homes or in Newham
Council or from private consultants, and then briefs and manages major
works projects and sub-programmes, ensuring that the work undertaken
keeps to budget and to timescale and meets the required quality. This
involves careful co-ordination of technical and other staff so as to ensure full
liaison and consultation with residents, housing management staff and other
stakeholders, and to secure the achievement of our strategic objectives.


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The Property Officer provides an asset management service for our non-
residential assets, including office premises, community centres and our
substantial commercial portfolio of shops and other properties.


Technical Services

The Technical Services Group:
 provides design services and contract administration for a range of major
   works programmes, including Low-rise Enveloping, Kitchen Renewal,
   Low-rise Cyclical Maintenance and Street Property Renovation.
 procures and manages the arrangements for responsive repairs and
   planned maintenance (other than for mechanical and electrical), securing
   a best value service that meets our objectives including an effective
   customer interface
 deals with the client-side of both routine and exceptional repairs

The Major Works Team provides design services and contract administration
for a range of major works programmes, including Low-rise Enveloping,
Kitchen Renewal, Low-rise Cyclical Maintenance and Street Property
Renovation, and other significant repair contracts which require tendering
(e.g. roof renewal to individual houses). Enquiries about leasehold
maintenance issues are also dealt with.

The General Maintenance Team provides a range of services for complex
(non-M&E) maintenance issues. This includes:
- managing contracts with the responsive repairs contractors
- diagnosis and specification of complex repairs
- complaints investigation
- dealing with claims of statutory disrepair
- dealing with the repair and insurance consequences of fire damage
- assessment and payment of work invoices from responsive repairs
   contractors
- post-inspection of repairs to ensure quality
- dealing with exceptional service requests, e.g. resident requests for
   consent to carry out work, wayleaves, etc.
The resulting works are routinely contained within the schedules of rates on
the responsive repair contracts.

The Repairs Operations Centre provides a call centre for residents to report
repairs. If the Repairs Agents are not able to determine the work required as
a result of discussion with the resident, Repairs Inspectors visit to enable the
repair to be accurately specified. The Repairs Inspectors, organised into two
geographically based sections, also survey voids and ensure the required
works meet our lettable standard.


Mechanical and Electrical Services

The Mechanical and Electrical Services Group:

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   provides specialist stock condition and investment assessment data on
    mechanical and electrical services, asbestos including the asbestos
    register
   provides specialist advice on mechanical and electrical maintenance
    issues
   procures and manages specialist maintenance contracts for mechanical
    and electrical services
   complaints resolution for M&E services

The Gas Services Team procures and manages the gas appliance servicing
contract and boiler replacement, as well as managing the process for
identifying where and how asbestos is located and carrying out the actions
required.

The Mechanical and Electrical Liaison Team procures and manages contracts
for maintaining lifts, communal digital TV services and TV aerials,
CCTV/concierge equipment and door entry systems, lightning conductors,
automatic car park gates, dry risers and communal water tanks.




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APPENDIX 3




                       NEWHAM HOMES

             PROCUREMENT STRATEGY

                         2005 - 2010




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                                                                  Tony R S Ashford
                                       Head of Property & Asset Management Services
                                                                       August 2005


                                      PREFACE


In preparation to the separation of services between the L B Newham and Newham
Homes, consideration needs to be given to procurement of services especially within
Property & Asset Management Services.

There are many challenges facing Newham Homes over the next five years, which
will have a direct impact on its ability to procure services in what is considered an
already overheated market:

       The ability to deliver the “Decent Homes” strategy and meet the targets set by
        the ODPM’s office, together with the expectations of both the Board and the
        residents served by Newham Homes.

       Competing ALMO’s and RSL’s to deliver their programmes especially Decent
        Homes

       Competition from the Olympic developments within the London area,
        especially to the east of London.

       To embrace the Egan principles of “Rethinking Construction” in a Partnering
        procurement ethos, and following recommendations detailed in the EGAN
        Compliance Report prepared by HACAS Chapman Hendy for L B Newham in
        2004.

       The need to obtain Best Value, and demonstrate a robust process in ensuring
        we are delivering “Continuous Improvement”.

       The size of programme we are looking to deliver will allow us to look more
        innovatively at our procurement process to maximise on our purchasing
        ability, not only on costs, but also on “added value”.

       Taking steps to minimise as far as possible the rise in costs often associated
        with an overheated market.

       Reducing costs and using existing resources, especially staff, better to deliver
        the programme.

       Increased opportunities for resident participation and choice.




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The strategy for discussion within this draft document is aimed at focusing and
developing this process for the benefit of all stakeholders, whilst reducing the risk for
competing demands especially those centred on the Olympic developments.




1. Procurement Strategy

A new team is proposed as part of “Asset Management Group” within Property &
Asset Management Services (PAMS).

In its submission “EGAN Compliance Report” to L B Newham in 2004, HACAS
Chapman Hendy outlined five options for procurement, with a risk assessment
attached to each. This has been considered in formulating a strategy for Newham
Homes. Section 7 and 8 of the report details this clearly.

It is proposed that a mix of Options 1, 2 and 3 be considered, as the most robust but
with less risk attached, to deliver the Capital and Review programmes. This will allow
a regular review of market trends whilst leaving Newham Homes some freedom of
movement to seek the best available options given the volatile market anticipated in
competing for resources developing the Olympic Games projects.

At the same time, legislation is constantly moving and more demands are being made
to improve in several areas, such as energy efficient buildings, including residential
buildings, reduction in emissions, and sustainable products. Efficiencies in
All areas of activities are required through Continuous Improvement, where
innovative ideas need to be considered and where appropriate, incorporated within
existing contracts. The best collaborative way of incorporating these changes is
through the Partnering agenda rather than more traditional forms of contracts that
have less flexibility and a more adversarial approach.

To achieve this a lot more work has to be commissioned at the front end of projects,
which has a cost implication. This, by its very nature, demands a review and overhaul
on the method s we use for procurement, and economies of scale are key factors for
consideration.

Procurement costs can increase by some 1-2% at least, when compared with more
traditional methods on a like for like basis. However, by reviewing the method of
procurement, and combining works into a more comprehensive programme based on
either a geographical or work need definition, substantial savings in excess of 10%
can be achieved.


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The client function has three distinctive strategic roles in delivering its Reinvestment
and Repairs programmes including Decent Homes –
    Financial – securing funding; budget projection and setting; incorporating
       out-turn costs within budget projections
    Programme – Develop, set and delivers programmes in a timely manner,
       within budget, and to standards. Maintain up to date stock asset register
    Technical –Set standards of quality and sustainability, reduce on-going
       maintenance costs, incorporate feedback into future programmes and
       financial appraisals

The creation of a dedicated Procurement Team that is focused and able to drive
change forward is seen as the most viable alternative to current systems of
procurement for Newham Homes to meet these objectives. HACAS Chapman Hendy
eludes to such an option within its report referred to above.



2. Aims

    The aims of the Procurement Strategy are four-fold:
    1. To support initiatives within the local communities by ensuring that when
        procuring services or employing labour, this is targeted at the Borough.
        Newham is an area of high deprivation, being 11th out of 354 Boroughs in
        Britain. Therefore sustaining communities by directing employment and
        training is essential if these communities are to experience a better quality of
        life in the future. L B Newham is a major investor and employer in the area,
        and any reduction in the level of investment would only result in further
        decline.
                      See appendix 1 – map of areas of deprivation within L B Newham

    2. To actively develop energy efficient systems for residents that has a real effect
         on reducing running costs. Affordable heating and hot water is considered a
         basic human right, and with ever increasing running costs there has to be a
         concerted effort to maintain affordability to the end user.

    3. To encourage officers to work and invest with its suppliers to develop new
         more sustainable products that are manufactured, and disposed of in an
         environmentally friendly environment. These initiatives are to include
         sustainable alternatives to PVCu windows and doors, solar power for hot
         water, and eventually heating. There will be many more initiatives that will be
         identified during procurement that officers should be encouraged to challenge
         manufacturers and suppliers.

    4. To reduce the risk to Newham Homes over the next decade on problems of
         supply and demand that could prevent it meeting its core objectives in stock
         re-investment, Decent Homes and an on-going effective maintenance service.

3. Purpose


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The Procurement Team shall be charged with the responsibility to deliver a
comprehensive procurement programme to:
      I. Regularise services for Newham Homes
     II. Drive the EGAN agenda at a pace and level applicable to Newham Homes
    III. Reduce staff and associated costs within PAMS by using freeing existing
         resources to concentrate on quality at the operational level
   IV. Maximise collective purchasing powers
     V. Ensue OJEU and other legal/procedural requirements are complied with
   VI. Reduce the risks associated with an over-heated market pertaining to both
         labour and materials
   VII. Ensure Best Value to Newham Homes, and its stakeholders, including the
         Board and the residents


4. Material Selection

In identifying and selecting suitable materials, especially major components (gas
boilers, electrical equipment, paint etc) care will be taken to ensure Best Value is
achieved reflecting:
             Cost
             Suitability and fit for purpose
             Extended and “lifetime” Warranties
             Manufacturer support in both supply and on-going parts replacement
             Ongoing availability
             Standardisation whilst retaining choices
             Product improvement
             Environmental issues

Materials specified will be required to meet the on-going maintenance aims of
reducing costs, and ensuring availability of parts when required.

All material manufacturers must support a sustainability ethos identifying wherever
possible a recycling option as the preferred method of disposal. In the absence of a
recycling option, an environmentally friendly alternative disposable procedure is to be
supplied by the manufacturer.


5. Programme Support

The Procurement Team will work closely with all teams within PAMS to ensure it is
best placed to procure projects that will allow Newham Homes to meet its deliverable
programmes to its residents, and within allocated budgets.

This will include all of the following:
        Decent Homes Programme
        Estates Improvements and Enveloping works to multi-occupancy buildings
        Service and Maintenance contracts
        Term contracts for responsive repairs, and void works

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            Cyclical and Preventative Planned Maintenance contracts
            M&E Contracts

The Procurement Team will be the lead team working with technical input from the
service teams within PAMS (M&E; AMT; TG).

It will look at the best advantages in the way packages are developed to ensure
Newham Homes maximise it purchasing powers whilst delivering its programme of
works on time, within costs, and aiming for zero defects.


6. Consultant & Contractor Selection

The Procurement Team, working across the whole client base, will develop a
Newham Homes approved “Consultant & Contractor” list that will be subject to
Board approval on a regular basis not less than two years. This Approved list, whilst
separate to that held by L B Newham, should reflect any concerns known to the
Council.

In maintaining such a list, this must not be used as impedance to the OJEU process
that must be followed in much of the procurement undertaken.

      I. PDC as an Approved Consultant
         It is recognised that PDC has been used for many years as the main
         consultant for the Housing Service, and as such as developed many skills
         paramount to delivering the capital-funded programmes, which will now
         form part of Newham Homes’ portfolio.

            PDC will be an important consultant supporting Newham Homes especially
            in its early years. Therefore it is paramount the Service Level Agreements
            are established that reflect not only Best Value, but also the ability to deliver
            in those areas, and to a level, that can assist in driving the programme
            forward.

            Future commissions will require PDC to work to the client Project Manager,
            and to a defined brief for specific projects. PDC must demonstrate its ability
            to encompass Newham Homes as an external client, and not an in-house
            service.

            The Service Level Agreement should identify the volume and areas of work
            that PDC will be best placed to serve Newham Homes in the short to
            medium term at a level pre-determined in order it does not over-commit and
            not deliver.

            In selecting PDC as a Partner Consultant, PDC must demonstrate Best Value
            through it’s ability to deliver on time, and a high standard, projects that are
            EGAN compliant, and in a Partnering ethos, unless other directed.

     II. NEWCO as an Approved Supplier

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          It is recognised that NEWCO, as a separate manufacturing supply company
          brings many advantages to Newham Homes, which must be reflected within
          the procurement process, namely:
                The manufacturing base is adjacent to Newham Homes Bridge Road
                   offices
                A long-term relationship that has evolved where production has been
                   geared to meet the demand of the former Housing Service within L B
                   Newham
                Supporting employment of local labour
                Major employer of disabled people
                Major training facilitator through apprenticeships and other local
                   initiatives
                A willingness and ability to work to meet our on-going requirements
                   in a market area that is overheated, and getting worse, namely kitchen
                   and window manufacture, areas essential to the delivery of the
                   Decent Homes programme
           Therefore, subject to ongoing and regular reviews centred on both costs and
           product improvement, NEWCO should be given first option to partner on
           those projects involving their expertise. This will substantially reduce
           supply chain risks over the next five years, whilst allowing Newham Homes
           to support community interests through local employment and
           apprenticeships.

     III. DIRECT LABOUR SERVICE as the Major Maintenance Service Provider
          The DLS has traditionally been the major maintenance service provider, and
          has earned a reputation with residents and client alike in delivering a quality
          service, whilst always striving to seek improvement.
          Quite rightly the DLS is proud of its traditions being the second oldest DLS
          in Britain.
          However in the last year it has not been viable and returned a financial loss
          of approx. £1m to year-end 31st March 2005.
          This loss questions its future service in delivering the prime maintenance
          function as part of Newham Homes, as a continuous loss year-on would be
          unacceptable.
          In order to refocus the DLS and return it to viability an external consultant,
          SPRUNT has been commissioned jointly by the client – PAMS and the DLS
          to look at the reasons for the recent losses, and how, working in a Partnering
          ethos, the DLS can return to a viable operation by September 2007.
          It is recognised that there may be need to change the areas and scope of
          works in order to achieve this.
          However, the DLS has been a major employer of local labour, with some
          250 plus operatives and staff. Likewise it has been a major trainer with some
          10 new apprentices started each year, which again are recruited from the
          local community, in an area of skills shortages, and high deprivation. It is
          therefore essential the DLS be retained, as failure would cause further
          deprivation and un-employment in an already depressed community.
          Following the joint review, the future direction of the DLS will be
          incorporated within this strategy.


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        Working from the “Approved List” of Consultants and Contractors, that is
        regularly reviewed and approved by the Newham Homes Board, due regard
        will be given to the following criteria and needs:
             Supply Chain Management – ensuring that manufacturers work with
                Newham Homes to deliver the most advantageous packages to meet
                the aspirations of both Officers and residents and the Board
             Constructors and sub-contractors, including specialist contractors are
                engaged in accordance with proper procurement procedures, including
                OJEU requirements


7. Resident Participation

    Through the Procurement Team, and the Project Manager, Resident Participation
    will be deemed part of every project, from the inception of the project, through its
    various stages, until such times as the project reaches practical completion.

    Resident Participation will be in various forms including focus groups to lead on
    residents’ choices and programming. Contractor Selection is a new initiative
    where residents are to be encouraged to be actively involved.

    A minimum of two residents (preferably one tenant and one leaseholder [where
    appropriate]), to a maximum three, will be co-opted on and form part of the Core
    Procurement Team for that project. Training will be made available to ensure
    those co-opted residents are fully conversant with and recognise their role, in
    procurement of services. Training of residents in this role is key to meaningful
    participation and empowerment.

    Given the amount of procurement over the next five years, it is envisaged that
    several residents will have an opportunity to participate, allowing all ethnicities to
    be involved over that period.



8. Leaseholder Consultation

    The recoverable income from the capital programme is liable to be in excess of £8
    million pounds. It is therefore essential that driving the programme does not
    compromise the requirements for consultation under s151/s20.

    A key role of the procurement team will be to bring officers from Leasehold
    management to the procurement table at an early stage to work with and include a
    proper process within the programme for consultation. It will be a target for
    recovery to achieve not less than 90% recovery in the first two years.


9. EGAN Agenda and Strategic Partnering


MACR v9                                                                              - 39 -
Delivery Plan 2005/6
    The procurement team will be seen to champion wherever appropriate, the EGAN
    agenda, and the Strategic Partnering approach to procurement.

    This will directly reflect the EGAN COMPLIANCE report drafted by HACAS
    Chapman Hendy and considered by the L B Newham in 2004, whereby the
    recommendation is to develop the procurement process along the strategic
    partnering route.

    In selecting Consultants and Constructors for projects the selection panel
    (comprising officers, consultant and residents’ representatives) will use a module
    of 60/40 service delivery and cost, based on Treasury Document 12 as a guide.
    Some questions may have a rating, as the criteria may be more significant in the
    aims and success of the project.


10. Forms of Contract

    These will need to be considered carefully for each project, as no form of contract
    should be viewed as the one-all fix to successful procurement.

    PPC2000, and more recently TPC 2005, as the successor to TPC 2001, have
    proved popular forms of contracts over recent years, and have a lot to offer.

    However, new JCT 2005 and NEC forms of contracts are now offering more
    specific alternatives to PPC 2000 and TPC 2005.

    Constructors and the supply chain are now conversant with PPC 2000 and TPC
    2005, and these options may prove beneficial to the core team once the project
    progresses, as it can give all stakeholders an important “comfort zone” that they
    are happy to work within based on their experience.

    It will be the procurement team’s responsibility to consider all aspects on deciding
    the most appropriate form of contract to use.

11. e-Commerce

    It will be a procurement requirement that all consultants and contractors will look
    to provide all documentation in a suitable electronic format.

    This is to include electronic CP4 and CP12 documents, H&S and CDM files,
    Asbestos survey documents, electrical test reports etc.

    Gas heating design and layouts will be supplied in a suitable format to populate
    the Stock Asset Management Register (SAMS).


Associated and Related Documents

    I. Residents Participation Protocol

MACR v9                                                                            - 40 -
Delivery Plan 2005/6
    II. HACAS Chapman Hendy report – Feb 2004
   III. Resident Lead Improvement Strategy
   IV. DLS Health Check – Messrs Sprunt (to follow)




MACR v9                                               - 41 -
Delivery Plan 2005/6
V6 16 September 2005
MACR                   - 42 -

				
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