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The NHF Schedule of Rates in modern procurement practice

This article highlights the current version (5.1) of the NHF Schedule of Rates (SOR) in modern procurement practice and discusses the background, existing content, inclusive nature, rates and adjustments, and its use in procurement. It also explores the desired improvements for version 6 and gathers feedback on potential changes.

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The NHF Schedule of Rates in modern procurement practice

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  1. The NHF Schedule of Rates in modern procurement practice David Miller Rand Associates

  2. Where We are and Where We Want to Be • Where we are now with the NHF Schedule of Rates - Version 5.1 • Background • Existing Content • Inclusive Nature • Rates and Adjustments • Does it cover all the Stock • Use in Procurement • The Future - What do we want for Version 6

  3. Background • Developed from the requirements of 8 RSL members of the Hammer SW Group • Now has: • 328 Housing Associations • 53 Local Authorities • 347 in England, 21 in Wales, 6 In Scotland, 7 in Northern Ireland

  4. Existing Format • Three Levels of Description • Property Record File Description (short) 1 line up to 50 characters • Works Order Description (medium) 4 lines up to 50 characters each line • Tender Purposes Description (long) 12 lines up to 50 characters each line

  5. Existing Content 1 • ELEMENTS • Foundations • External Works • Fencing & Gates • Drainage • Brickwork • Masonry • Roofing • Scaffolding • Joinery

  6. Existing Content 2 • ELEMENTS • Plasterwork • Floor and Wall Tiling and Sheet Flooring • Painting • Cleaning & Clearance • Glazing • Plumbing • Heating & Gas Appliances • Electrical • Disabled Works • Special Treatments

  7. Existing Content 3 • FORMAT • Elements reflect Trade Preamble sections • Some Sections are repeated in more than one element • Bath panels in Joinery and Plumbing • Bathroom Ancillaries in Joinery and Plumbing • Showers in Plumbing and Electrical • Some solid fuel items both in Brickwork and Heating • Special Treatment Elements incorporates: • Mould Treatment • Timber Treatment • Chemical DPC Treatment • Pest Control • Artex Removal

  8. Existing Content 4 PRIORITIES: • E Emergency Works • U Urgent Works • R Routine Works • X User Defined

  9. Inclusive Nature • Each item in SOR is intended to represent the entire work content of the particular repair and or maintenance item ordered and the Contractor’s percentage adjustment is deemed to include for all ancillary items not specifically referred to on the description of the SOR item but which are necessary to achieve the satisfactory repair or renewal.

  10. Rates and Adjustments • All Labour, Materials, Plant And Transport. Overheads and Profit • Removal of Contractor’s Debris • Means of Access up to Two Storey ridgeline • First Time Fix- adequate van stocks etc • Empowerment of operatives on variations

  11. Does it cover all the Stock? -1 • General Needs • Sheltered • Supported Housing • Student/NHS Staff Accommodation • Market Rent Schemes • Leasehold/Shared Owner Liabilities • Estate works • Care and Repair Schemes

  12. Does it cover all the Stock? - 2 The need to cover all stock types, the components of 400+ subscribers and cater for: • Responsive Day to Day • Void property/change of tenancy • Package/minor planned works • Decent Homes works • Emergency works Results in a current library of 2900 items

  13. Use in Procurement – Primary Means of Payment • Traditional format with % adjustment • Partnering traditional identifying profit/head office overheads and % adjustment • Partnering identifying profit/head office overheads, preliminary costs and % adjustment

  14. Use in Procurement – Secondary Means of Payment • Payment on basis of fixed rate per order, reconciled on a periodic basis back to SOR • Payment on basis of fixed value per dwelling with SOR being used to reimburse works to Voids, High Value works orders, communal clearance, Tenant recharge works etc

  15. Use in Procurement – As aMonitoring tool • Open book accounting reconciled back to SOR to establish whether best value is being achieved • Record of what work has been undertaken

  16. Use in Procurement – Other Uses? • Before we move on to looking at what the format and content of version 6 should be, have any of you had experience of using the NHF SOR in other methods of procurement?

  17. Version 6 - 1 • Should we separate Responsive Day to Day and Voids • Should we separate the most frequently incurring items from those less used but still required. • Should we separate repairs from renewals. • Trade or Elemental format e.g all works associated with bathrooms or solid fuel appliances in their own section regardless of trade involvement.

  18. Version 6 - 2 How much rationalisation: • have all windows measured in sq metres regardless of numbers of opening and fixed lights, size etc • have all glazing msd in sq metres regardless of pane size • have a standard cost for redecorating rooms with variances in specification applied by % add • assume that all ‘old’ components like metal windows, cast iron gutters etc have been renewed with modern products • One standard void item covering all the prime basic works done on void eg lock change, gas and electric tests, pre-occupation check, condition inspection, change wc seat, overhaul taps, cistern etc. • Any Others ??

  19. Version 6 - 3 • What else would you like to see in Version 6 • It’s over to you now

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