01 February 2008
Housing associations are missing out on potential savings worth more than £100m per year because they pay too much for maintenance services, the Audit Commission claimed this week.
Although RSLs saved about £98m last year through better procurement, the commission says this could be increased to £229m if all associations were as efficient as the best performers.
About one-third of total efficiency gains by RSLs stem from how they purchase repairs and maintenance services. But Better buys: improving housing association procurement practice, published on February 1, claims that many landlords could save even more by developing better procurement skills and knowledge.
The report calls on associations to review contracts and the performance of their suppliers, and urges the government to give landlords more incentives to improve procurement.
Steve Bundred, the commission's chief executive, said: 'All housing associations need to look beyond unit costs, adopt a more strategic approach to procurement and apply the private sector's approach to supply chain management.'
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