Changing how we carry out planned maintenance on your estate

Transcription

1 Changing how we carry out planned maintenance on your estate A guide to the proposals and how you can comment on them. This guide is also available in alternative formats. The back page gives details on how you can get in touch with us to request a copy. The information inside is meant as a guide only. You may wish to speak with an independent organisation, such as your local Citizens Advice. You can also visit the website of the Leasehold Advisory Service ( for a fuller explanation of the relevant legislation. Page 1 of 30

2 Introduction We are always looking at how we can provide the best value for you. This means more than just saving money. It s about making sure we consistently provide you with the best service, in the most sensible and cost-effective way. Over the next three years, we are looking to make changes to the way we carry out planned maintenance across the homes and estates we are responsible for looking after. We expect the changes to bring about a number of benefits when planned maintenance is delivered in the future. These include improved standards, greater accountability and better use of our buying power. Ultimately, that means they will deliver better value for both you and Hanover. This booklet provides more information on what we are proposing. It is split into two parts, covering: A.Why the changes are needed and what they will cover. B.The circumstances in which you can comment on the changes under Section 20 of the Landlord and Tenant Act Page 2 of 30

3 If you still have questions, there are details of how you can contact us on the back page of this booklet. Chris Munday Executive Director of Operations What is planned maintenance? Planned maintenance is the work Hanover carries out to ensure the upkeep of your estate. For example, this might include decorating, electrical work and installing fire safety measures. If you rent your property, it can also include work we are responsible for inside your home. Planned maintenance doesn t cover: Fixing things that need repairing urgently (known as day-to-day reactive repairs). Maintenance of the inside of homeowners properties, where it is the homeowner s responsibility Page 3 of 30

4 Part A: Why changes are needed At the moment when we carry out planned maintenance we use lots of different companies, and get them to quote for lots of individual work. This doesn t work well because: The standard work is completed to can vary. It can be hard to hold those responsible to account when things don t go to plan. It s difficult for us to control health and safety. Different suppliers working on an estate at the same time may not coordinate their work. It s costly for us to manage. We can t always use our buying power as a large, national housing provider. It can take a long time to get quotes, which may delay the onset of work. Page 4 of 30

5 Delivering works efficiently: Larger maintenance programmes can involve up to five or six different contractors working on an estate at the same time. This could include plumbers, electricians, carpenters and decorators. Coordinating them all is a challenge, and if one contractor overruns it can have a significant impact on the overall timetable. Under the new proposals, one contractor would be responsible for delivering all these services. This would be less disruptive for residents and more efficient for Hanover, ultimately offering better value. The improvements we are looking to make To make sure we are continuing to provide you with the best value, we want to move to long-term contracts to deliver planned maintenance work. These contracts will use a smaller number of national or regional suppliers and be between five to ten years long. The companies we use will have already been assessed and will have agreed set standards and prices beforehand. Page 5 of 30

6 The changes will benefit both residents and Hanover by: Giving greater control over the standards maintenance work is completed to. Providing clear accountability when this doesn t go to plan. Improving how we control health and safety. Bringing about better coordination between different suppliers working on an estate. Being less costly for us to manage. Helping make sure we always get the best price. Allowing scheduling of future planned maintenance to begin earlier. We already use this model for some other services, such as lift and fire alarm maintenance. This has been shown to work well. Will it cost me more? For nearly all residents, we expect these improvements will cost either the same or less than you currently pay for like-for-like work. Most other housing associations now buy planned works through this model of long-term agreements. They have shown that combining buying power across estates improves the quality and consistency of work, and provides savings for both residents and landlords. Page 6 of 30

7 What is included? There are lots of different services and works that we have a responsibility to deliver across our estates. We have grouped them together into 19 categories, or packages of work. These describe the different types of services and works that make up planned maintenance. Some of those works will be paid via rental income from tenants. Some will be paid for via homeowner and tenant service charges. Because of this, only some packages, or services contained within them, may apply to you. This could depend on: The type of property you live in. The services provided on your estate. The services you pay towards through your service charge. The amount you pay towards those services through your service charge. Page 7 of 30

8 List of packages These examples are given as an illustration only and are not a complete list of all the services contained in each package. No. Package name Example of what this could cover 1 Planned works Replacement of kitchens, bathrooms, windows, doors, fire lighting and decorating 2a Domestic heating installations Installing a new boiler or heating system inside your home (if Hanover has a responsibility to maintain it) 2b Domestic heating servicing and repair Carrying out a regular service of the boiler (if Hanover has a responsibility to maintain it) Page 8 of 30

9 3a Communal heating installations Replacement of a shared heating system providing heating and hot water to an entire estate 3b Communal heating servicing and repair Carrying out a regular service and repairs of heating systems that supply heat and hot water to an entire estate 4 Electrical testing services Testing and safety checking to make sure that any electrical equipment and wiring Hanover has a responsibility to maintain is safe 5 Warden control Installation, servicing and repair of shared alarm call systems that link with Hanover s on Call team to assist residents in distress Page 9 of 30

10 6 Building security Installation of a range of physical building security measures, such as CCTV, car park barriers and security gates 7 Fire safety servicing and remedials Carrying out regular checks, servicing and repairs on fire safety systems on Hanover estates, such as automatic smoke vents and emergency lighting 8a Passenger lift installation Installing a new lift or refurbishment of an existing passenger lift 8b 8c Passenger lift servicing and repairs Stairlift servicing, repairs and installation Carrying out regular servicing and repairs of a passenger lift Installing a new stairlift and regular servicing and repairs of existing stairlifts Page 10 of 30

11 9a Asbestos sampling and testing Ahead of any planned works being undertaken, carrying out tests for areas with known or suspected asbestos. 9b Asbestos removal Professional removal of asbestos 10 Consultancy Framework Specialist advice from professionals who are experts in a particular field 11 Assisted bath servicing and install Installing and servicing specialist baths that are adapted to be safer and more accessible 12 Catering equipment servicing Servicing the kitchen appliances at estates where food is prepared by Hanover or another supplier 13 Lightning protection and fall arrest Servicing and maintenance of lightning strike protection systems installed on Hanover estates Page 11 of 30

12 14 15 Waste and cold water pump servicing Energy performance certification Carrying out regular servicing and repairs of water and waste pumps Certification services and provision of a database for the energy ratings of our buildings 16 Gas safety audits Regular checks by qualified professionals to make sure our gas servicing and repairs contractors are carrying out their servicing safely and to the standards required 17a Water risk assessments Regular checks by qualified professionals to make sure our water testing contractors are carrying out their services safely and to the standards required 17b Water safety testing Carrying out regular tests to make sure water supplies are safe and free from any legionella risk Page 12 of 30

13 18 Materials contracts Providing a standard set of materials and supplies that are used across Hanover estates 19 Catering kitchen installations Installing new kitchens on estates where Hanover prepares residents meals Page 13 of 30

14 What happens next Over the next three years, we will invite companies to be part of these new arrangements through a formal tender process. Before that can happen, we need to talk to you about the changes that you will pay for through your service charge. We must do this through a process known as Section 20 of the Landlord and Tenant Act Page 14 of 30

15 Part B: Section 20 Section 20 of the Landlord and Tenant Act 1985 sets out how we must consult with you about works, services or long-term agreements that: Are paid for through your service charge. Will cost any one service charge payer more than 100 in any year. The Act explains how you can make observations on the changes we are proposing which relate to service charges, and how we must respond to you. There are different stages we must go through when we issue you with a Section 20 notice: 1. Notice of Intention Hanover will send this to you at the start of the consultation. The notice sets out what we are looking to do, and explains how you can make observations. The consultation will be open for at least 30 days. Page 15 of 30

16 2. Public procurement Because of the value of the long-term agreements, the law states that we must advertise them publicly in the Official Journal of the European Union (OJEU). Hanover will assess the companies that bid and draw up a shortlist of who it proposes to award the contract to. Because of the stages we must legally go through, this can take around eight or nine months. 3. Notice of Proposals Hanover will send you the list of companies who tendered and to whom it is proposing to award the contract. You will be invited to make any further observations. This notice will also contain a summary of the observations received from the Notice of Intention, along with Hanover s response to them. The consultation will be open for at least 30 days. 4. Responding to observations Hanover must respond to your observations from the Notice of Proposals within 21 days. Page 16 of 30

17 The Section 20 timetable We must issue you a Section 20 notice for all the longterm agreements that apply to you. We are looking to send you two Section 20 notices that will allow you to do this: 1 st Section 20 Notice of Intention: January 2018, covering packages 1 and 5. 2 nd Section 20 Notice of Intention: April 2018, covering all remaining packages. Other section 20 notices You may still receive other Section 20 notices during this time. For example, for individual works needed on your estate, or other services we provide that aren t covered by planned maintenance, such as insurance. Page 17 of 30

18 Based on this, we expect to write to you at the following times: Packages 1 and 5 January 2018 February to September 2018 October 2018 December 2018 April 2019 Notice of Intention Public procurement Notice of Proposals Contract Awarded Contract commences After sending the Notice of Intention in January, we expect to write to you about Packages 1 and 5 again in the Autumn of 2018, when we will send the Notice of Proposals. All other packages The remaining packages will follow a similar timetable, starting with the Notice of Intention in April We will then go through the public procurement process. Once we have shortlisted suppliers, we will write to you with a Notice of Proposals. Page 18 of 30

19 Although we will issue you with one Notice of Intention to cover all the remaining packages, we must invite companies to bid separately for each one. This means you may receive a separate Notice of Proposals for each of the remaining packages, once we have a shortlist of suppliers for each one. Based on the current timetable, we expect to have all the new long-term agreements in place by the end of These dates are based on our current timetable, but may change. What you need to do Each Notice of Intention and Notice of Proposals will explain how you can make any observations. You must make your observations as set out in the notice in order for them to be valid. We will then respond to you within 21 days. If you do not have any observations, then you do not need to do anything. We will send you a summary of all the observations from the Notice of Intention with the Notice of Proposals. Page 19 of 30

20 Getting further information Hanover staff can help answer any questions you might have, or explain what to do when you receive a notice. Information on how to contact us is given at the back of this booklet. Nominating contractors If work has taken place on your estate before, you may have received a Section 20 notice that allowed you to nominate contractors. Because of the value of the long-term agreements we are looking to set up, the law states that we must advertise the contracts publicly. This means you cannot nominate contractors as part of this Section 20 consultation. However, if you know of a contractor who might wish to bid for the new long-term agreements, you can direct them to the advert in the Official Journal of the European Union once it is published. Page 20 of 30

21 We have also setup a process so you can suggest local contractors who may want to work as a sub-contractor under the new arrangements. We will pass the details of any firms you suggest onto the company that we award the long-term agreement to. However, we can only do this as a recommendation: we cannot guarantee that they will be used for future planned work. Our staff can provide you with details of how to do this. Please see the back page of this booklet for information on how to contact us. Involving residents in selecting suppliers It s important the suppliers we shortlist reflect your needs and the types of contractors you would want to work with. We also want to give you confidence that those we shortlist have been through a robust and fair selection process. For package 1 (Planned works) we are working with our existing resident engagement group to agree how residents will be involved in selecting and shortlisting potential suppliers. Page 21 of 30

22 We will also be surveying Hanover s In-Touch panel of residents to help us understand what is important to them when choosing to work with a contractor. This will inform how we evaluate the information potential suppliers send us. The back page gives details on how you can get in touch with us if you would like to become part of the In- Touch panel or register your interest to take part in future resident engagement groups. Delivering work under the new long-term agreements When we are ready to carry out work or provide a service that is covered by the new long-term agreements, we must consult you again if it: Is paid for through your service charge. Will cost any one service charge payer more than 250 in any year. This is covered under Schedule 3 of the Section 20 legislation. If this happens, you will be sent a single Notice that will: Give a description of the planned work, or tell you how you can get a copy of it. Explain why we need to do the work. Page 22 of 30

23 Give the total estimated cost both to you as an individual and for the estate as a whole. You will be invited to make observations on the work that is planned, but you will not be able to nominate a contractor, as one will already have been chosen by Hanover. The consultation will be open for at least 30 days. We must consider any comments and respond to them within 21 days. Saving time Although a second Section 20 notice may still be required under the new long-term agreements, we will only need to issue one notice. This will take less time than the current arrangements, meaning that planned maintenance on your estate can start sooner. Page 23 of 30

24 Frequently asked questions 1. How do I know if this applies to me? The Section 20 consultation applies to any works or services that you pay more than 100 towards through your service charge in any year. It also applies if we then deliver any major works under that long-term agreement which will cost any resident more than 250 in service charge. If you re unsure which services you pay towards, speak with your local member of Hanover staff who will be able to get this information for you. 2. Will it cost me more? For nearly all residents, these improvements will cost the same, or less, than you currently pay for like-forlike work. In a small number of cases, the changes may mean that some planned maintenance costs more than you have paid previously. This is likely to be the result of Hanover implementing: Higher standards for the completion of work. Better warranties. More rigorous compliance requirements. Page 24 of 30

25 A consistent type of product, with a longer lifespan or lower long-term maintenance costs than others available on the market. In these cases, it is likely that work or products would last longer, thereby offering better long-term value. 3. How do you know these improvements will work? We already have long-term contracts in place for some other services, such as lift and fire alarm maintenance. These have been shown to work well. Most other housing associations now also buy planned works through similar agreements and have achieved savings for their residents. 4. How will you support local businesses? Hanover will work with main contractors to use local suppliers as sub-contractors where possible, including those existing suppliers who have successfully worked for us in the past. Page 25 of 30

26 5. How will Hanover maintain accountability if contractors are sub-contracting? The main contractor will be accountable to Hanover for all the work they deliver, including the services and deliverables of any work that they sub-contract. 6. What if I don t want to take part in the new arrangements? The new arrangements are being put in place to increase compliance and provide better value for money for residents and Hanover. We are currently consulting with all residents about the proposals on the basis that all Hanover estates will be part of the new arrangements. However we will of course take into account any observations residents make regarding the proposals. Page 26 of 30

27 7. Ten years is a long time. What will happen if a contractor is not performing? Long-term contracts are about working in partnership with suppliers, to make sure we get continuous improvement over the lifetime of the contract. In the event of a contractor not meeting the standards we expect, there will be clear service levels built into the contracts. We will measure suppliers against these service levels. If they fail to perform, there will be measures available to us that are written into the contract, including the option to end the contract early. Contracting with a smaller number of suppliers will mean Hanover has more time to develop closer supplier relationships, and manage the contracts effectively. Having a closer working relationship with suppliers should help us to identify any potential problems sooner, so we can take action early. Should a Contractor go into liquidation, we will work with other regional Contractors providing the same services to cover the immediate maintenance programme. With the immediate issue under control Hanover would then consider the next steps which may involve a retender to replace the liquidated Contractor. Page 27 of 30

28 8. How do I have a say in changes? The Section 20 Notice will outline how you can make observations about the proposals relating to the works you pay for through your service charge. You can get involved in how Hanover develops other services in the future by signing up to be part of our In-Touch residents panel, or registering your interest to take part in future resident engagement groups. Speak to a local member of Hanover staff for more details. Page 28 of 30

29 Getting more information There are a number of ways you can get in touch with us if you have further questions: Speak with your local member of Hanover staff response@hanover.org.uk Write to us at: Response Team Hanover Housing Association Nelson House Alington Road Little Barford St Neots PE19 6RE Call us on (8:30 am to 3:30 pm, Monday to Friday). This number is free from landlines and mobiles. You may be asked to leave your telephone number so that someone with full knowledge of the proposals can ring you back. More information is also available on our website at This includes different formats of this guide, such as large print. If you don t have access to the internet, speak to your estate manager, , call or write to us to request a copy. Page 29 of 30

30 You may also wish to speak with an independent organisation, such as your local Citizens Advice. You can also visit the website of the Leasehold Advisory Service ( for a fuller explanation of the relevant legislation. Any observations you want to make with regard to the Section 20 consultation must still be made in writing, as set out in the Notice of Intention. Hanover Housing Association, Exempt Charity, Registered Society No R, Homes and Communities Agency No. L0071; Hanover Housing Limited, Registered Society No R; Hanover Housing Developments Limited, Company No Registered Office: Nelson House, Alington Road, Little Barford, St Neots, PE19 6RE. Member Housing Ombudsman Service. Page 30 of 30