New Procurement Consortia

image of newbuild housesAs a part of the 2004 spending review the government commissioned a report to look at ways of creating spending efficiencies within the delivery of the Decent Homes Standard, and sustainable communities.


The declared aim is for Local Authorities and RSLs to make savings of 2.5% or £835 million per annum in the three years to 2007/08 from the construction process. The government is at pains to point out that this is not to be achieved by driving down prices, but is to be achieved by greater efficiency in the delivery of front line services, with more emphasis to be placed on supply chain development and management.

Change Agents

The government recently named Davis Langdon as the National Change Agent to help set up and manage a network of Social Housing Procurement Consortia. Davis Langdon will administer the £33million ODPM Efficiency Challenge Fund for the procurement of capital works by social landlords. The National Change Agent will help social landlords secure efficiency gains in their capital works, mainly through the establishment of procurement consortia. Davis Langdon will work alongside law firm Trowers and Hamlins. The ODPM said that consortia should have the capability of generating early and substantial efficiency gains.
The national change agency will work with nine regional centres of excellence for procurement.
Full details of the plan are in the government consultation paper ‘Social Housing Efficiency – A discussion paper’ and many of the queries raised from it are in the ‘FAQ response
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