Landlord's £1.2bn repairs deal 'one of the biggest in the sector'

Published by 24publishing for 24dash.com in Housing and also in Communities, Local Government

One of the UK's largest providers of affordable housing has announced four preferred bidders for a £1.2bn repairs contract lasting up to 10 years.

Circle, which manages 65,000 homes, says it has carried out an "intensive and rigorous" procurement process to transform its repairs and maintenance service. Aimed at improving quality and consistency across the group, the new contracts will also allow for more rigorous measurement of performance.

The preferred bidders are Morrison Facilities, Kier Services, United House and Apollo Property Services. See table below.

Mark Rogers (pictured), Group Chief Executive at Circle, said: “As one of the UK’s largest housing groups, we are using our size not only to create a better service for our 200,000 residents, but also to deliver better value for money, saving up to £100 million in ten years. This will enable us to invest more back into our communities, so that our customers will benefit even more on a local level from being part of Circle.

“It has been really important to us to involve customers in this procurement from the start, and more than 400 customers have helped to shape the new service and select our contractors.”  
“We have been really impressed by the high standards of the final bids presented to us. All of our shortlisted contractors put in a phenomenal effort, really taking the time to understand our organisation and what our customers want from us.  They also share our passion for putting more back into the communities we work in. We would like to thank all involved for their support in this, and congratulate the preferred bidders who received the highest scores against a very strong field.”

Circle plans to enter into an initial term of five years with any final selected bidders, subject to contract, with an option to extend for a further five years.

It is now running a full customer consultation with leaseholders and service charge payers on the preferred bidders.

Contracts will be awarded once this process has been completed and any feedback from customers or shortlisted bidders has been taken into account.

Implementation across the group is expected to take place over a period of six to nine months.

Rob Leitch, regional managing director at Kier Services, said: “Kier are delighted to have been selected to work with Circle.  We are totally committed to enhancing the life chances of Circle’s customers and we are very much looking forward to working together in partnership over the next 10 years.”

Morrison Chief Executive Guy Wakeley said: “We are thrilled to have been announced as the preferred bidder for lots one and two of Circle’s new responsive repairs service. Morrison’s market leading combination of great customer service, value for money and footprint, means we will not only be able to deliver a better service to its customers in terms of performance and quality but also to the communities in which they live.”

Jeffrey Adams, United House Group CEO, said: "United House are really pleased to continue our long term relationship with Circle Housing Group improving homes for their residents. We are committed to making this new project a success delivering further efficiencies, creating employment and improving the life chances of the communities in which we will be working."

The preferred bidders are:*