Housing co-ops have to procure a variety of goods and services – and getting the right process for this can play a key role in helping them reduce costs.
Housing co-ops receiving funding from government agency Homes England also need to show they have a procurement process in place to get the best service.
During a workshop session at the Confederation of Co-operative Housing conference in Kenilworth last week, delegates received advice on how to do this.
Nimisha Patel and Guy Sanderson from Pinnacle Group, a service provider for housing associations and local authorities, shared their step-by-step guide for procuring goods and services.
Co-ops operating in the same area could also club together for procurement to get better prises, added Ms Patel.
Pinnacle’s steps are:
- Identify the business need and look at the performance of current contractors
- Gather information about the tender
- Develop contract terms, which could also ask the provider to check and present a report to your board
- Source the market and choose a tender list
- Launch the tender, including background information and key performance indicators so that contractors know what is expected of them
- Analyse and evaluate the tender, selecting a panel to do the evaluation, marking them on quality and price; evaluations should involve a mix of questions, through this process a successful bidder becomes apparent
- Chair of the board approves the selection
- Appoint contractor and award contract while agreeing a mobilisation period before they start
- Review performance on a regular basis
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