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From projects to products

From projects to products. Mike Owen Merthyr Valleys Homes. Merthyr Valleys Homes. One of the largest businesses in Merthyr Turnover of £16m a year Capital spend of about £12m a year Employs about 180 staff Registered housing association regulated by the Welsh Government . New objectives .

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From projects to products

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  1. From projects to products Mike Owen Merthyr Valleys Homes

  2. Merthyr Valleys Homes • One of the largest businesses in Merthyr • Turnover of £16m a year • Capital spend of about £12m a year • Employs about 180 staff • Registered housing association regulated by the Welsh Government

  3. New objectives Live with us • We want our housing service to be part of creating homes where people love to live • We want tenants to be at the heart of our organisation • We will support a fairer community Work with us • We want our staff to be proud to work with us • We will work social enterprises to deliver change • We will support the local council Improve with us • We believe everybody should be in a quality home • We will work to improve our neighbourhoods • We believe in economic equality and we will invest in our community

  4. New strategy on supportingsocial enterprises Background • MVH did not want to be a social enterprise • Wider goal than housing • Existing social enterprise are very strong on our most hard pressed estates • Social enterprises fit with our ethos and values

  5. Challenges • Is the governance strong enough? • Can SE fund legal and technical advice to tender? • Has the sector got the right finance skills? • Are SE over reliant on grant funding? • Will supporting the sector undermine local business? • Are we undermining hard fought terms and conditions in the public sector? • Can the SE effectively deal with health and safety and other risks? • How do we grow the sector without overwhelming it? • How do we stay within EU procurement rules?

  6. The MVH way forward Supporting Social Enterprise In Merthyr • Reviewed non core work programmes looked at areas could externalise to the sector • Agreed new standing orders to allow fast track issue of work to the SE sector • No competitive tenders required on work below £10,000 for designated local SEs • Approval needed for quotations between £10,000 and £50,000 • Developed a method of growing the sector within acceptable risk levels and we have agreed the first phase of ground maintenance contract with the Gellideg Foundation

  7. Gellideg Foundation and MVH • Ground maintenance in Gellideg area worth about £30,000 • MVH have agreed with the Council that work will transfer on 1 July to the Gellideg Foundation • Working with GF to define the contract • We want a contract that GF will have the best chance of winning when we tender it for a bigger area and a larger amount.

  8. The new form of contract • Mobilisation cost included at start • Cash flow management and timing important • No schedule of work till month 3 • VFM to be defined after month 6 and will include added value items • Improvement notices • Joint governance as part of improvement notice

  9. And the bad news What will the benefit reforms mean? • Higher debt for households • Higher costs and higher debt for MVH • More evictions • More private sector squalor and homelessness What we might see? • A radicalisation of class • A movement towards self reliance?

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