Question

Granite Housing Association Granite Housing Association (GHA), a charitable organisation, is a Registered Social Landlord (RSL). Its operations are part funded by the Government. GHA is based in the South East of England and manages 30,000 properties. It was created from 7 other RSLs with portfolios ranging from 1,800 to 14,600 properties. Five of the original RSLs had their own maintenance workforce while the other two used external contractors. 30% of the inhouse workforces are also tenants. Each workforce has remained on its own terms and conditions of employment and operates independently of each other. Activities associated with the workforce fell into three main areas: 1. Reactive maintenance 2. Void management and refurbishment 3. Programmed capital works Reactive maintenance requests are initiated by the tenant requesting repairs for damage to property, broken locks, leaking windows, etc. Void management is triggered when a tenant leaves. Typically, the property needs to be made secure, which may involve boarding windows and doors and/or installation of alarms. While the property is vacant prior to a new tenant arriving and dependent upon the condition of the premises, they may need full or partial refurbishment which may include central heating upgrades, kitchen and bathroom replacements. Programmed capital works includes the significant upgrading of a number of properties in a locality which may, for example, include replacement double-glazed windows. Two years remain on the framework agreements for the supply only of plumbing materials and supply only of building supplies, and four years remain on framework contracts for the supply and fitting of alarms, the supply only of kitchen units and the supply only of glazing products. The accountant, James Andrews, has undertaken an analysis of a new government scheme to encourage renewable forms of energy and has proposed that a major capital programme can be undertaken to install solar panels on properties with a south facing roof. For 8,000 properties the scheme is financially viable, for a further 7,000 properties the cases further work would require additional investigation to determine economic viability. The programme will be beneficial both to the tenant and to Granite. However, the in-house workforce does not have the capacity to undertake this activity.

Tasks

You are the Procurement Manager for GSA and you have been asked to consider:

(a) Initiating the procurement of an externally managed programme of installation of solar panels

(b) Outsourcing the three categories of activities undertaken by the in-house workforce.

1. What would you need to consider in relation to both the above initiatives?

2. What contractual matters would need consideration in the relation to the outsourcing initiative and the existing frameworks?

Answer 1

Answer:-

1) We'll need to think about the following factors for the two initiatives

Initiative 1: Procure an externally managed program

Determine the total capital and operational use for the externally managed program

Capital use will include the expense of every single crude material, fixed billing

Operational consumption will include work costs, licenses, transportation costs, and miscellaneous expenses

Ascertain the time taken for the installation on the off chance that we get an externally managed program

Determine the total capital and operational use is this task is handled by our in house workforce or GSA's programmed capital works for staff

Ascertain the time taken for the installation if utilize GSA's programmed capital works for staff

Determine the total capital and operational use is this task is handled by GSA's tenant workforce

Ascertain the time taken for the installation whenever utilized GSA's tenant workforce

Determine the total workforce required for the existing 8000 financially reasonable properties and determine the equivalent if the total number of financially practical properties are 15,000

Lead a money saving advantage analysis to determine which is all the more financially feasible and faster ( Procure an externally managed program versus GSA's programmed capital works staff versus GSA's tenant workforce )

Direct a money saving advantage analysis to determine which is all the more financially feasible and faster ( Having a stand-alone devoted workforce from the three accessible choices recorded above or having a combination of each of the three sorts of the workforce)

Initiative 2: Outsourcing the three categories undertaken by the in house workforce

The three sorts of maintenance activities that need to be completed at these properties are

Receptive Maintenance

Void Management and Refurbishment

Programmed Capital Works

Before outsourcing these three categories undertaken by the in house workforce, we'll need to consider the following factors

Determine the total capital and operational consumption of outsourcing

Compute the extra margins or extra expenses incurred due to outsourcing. (In a perfect world, property management administrations charge a 30 - 35 % premium on hourly work rates for managed programs)

Distinguish the total number of pending undertakings for the following 2 - 4 years in the activity list

2) The contractual matters that would need to be taken into consideration are as follows

​What would the dislodged workforce chip away at, explicitly the tenant workforce which includes very nearly 30 % of workforce.f the tenant workforce are out of occupation this may impact their capacity to pay their lease which will in turn adversy affect GSA's properties.

Which is the reason we'll need to unmistakably survey the tenant workforce's business contract alongside their tenant agreements and check whether or not their leases contain a lock in period or whether or not there's any link or conditions between their month to month rental installments and their work understanding.

​Another contractual issue that would need to be taken into consideration is the subject of work place wellbeing and security, bosses insurance and incident or danger obligation.

Since outsourcing will mean that the ew work power will be on an outsider compensation move, it's important that the company or the business that attempts the outsourcing initiative bears any and all risk that might possibly emerge during the residency of their agreement

The outsourcing accomplice or seller should consent and be willing to be examined for reasonable work, moral sourcing rehearses.

Installment terns should be inked out well before the outsourcing contract starts. We'll need to unmistakably determine expectations, timeline, capital and operational use alongside installment plans.

please like the answer............