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Capital's housing associations join forces to increase efficiency in the supply chain

NEWS

HOUSING associations in London responsible for nearly £1 billion-worth of work have joined forces to drive a harder bargain with contractors in the social housing market.

Eight arm's length management organisations have combined buying power to form the London ALMO Procurement Network.

The network will establish procurement frameworks for social housing work under the Government's Decent Homes Initiative, aiming to save around £200 million in efficiencies. The organisation is looking to shave 10 per cent from the schedule of rates across the eight housing bodies by June next year.

Consultant Collaborative Working Centre advised the network, which is funded by grants from the ALMOs and the Office of the Deputy Prime Minister.

CWC chief executive Neil Jarrett said: 'Many clients are partnering with contractors but this is not filtering down to the supply chain, which is being brought in on lowest price.

They are not working together to increase efficiencies.

'There are five or six major contractors in London and one or two will be on every list. ' The network is preparing to shortlist firms on a pilot scheme for heating work. The contract is worth £85 million over four years.