Tuesday, 03 March 2015

Landlord and contractor agree to end repairs deal

A contractor’s 10-year deal to provide responsive repairs to a major landlord has been stopped just two years into the agreement.

Osborne has been delivering responsive repairs to Peabody since May 2010 but the parties have agreed to end the contract early, saying it is not meeting their requirements.

Osborne will continue to provide the service until the autumn of this year, when Peabody hopes to have a new contractor in place.

Sandra Skeete, Peabody executive director, customer services, said: ‘We know this is disappointing news for everyone who has worked hard to deliver this service over the past two years.

‘At Peabody, our next step is to select another responsive repairs contractor who can build on the improvements that have been achieved, while also ensuring our customers continue to receive a high quality service.’

Nick Sterling, managing director of Osborne’s property services team, said: ‘This decision was made by mutual consent as it became clear that the current arrangements were not serving either party’s requirements.

‘We will continue to deliver Peabody’s responsive repairs service until autumn, minimising the impact to residents.’

Readers' comments (8)

  • Shame Metropolitan are not able to do the same.

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  • Rick Campbell

    A bit of the 'old snake-speak' in the article?

    I would have thought that a decent contractor would know the standards required and rendered accordingly. I would also have thought that a decent landlord would make sure the standards were met.

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  • What is the value for money rationale in awarding 10 year contracts- isnt it overdue for IH & other media to evaluate the whole sector's procurement systems ?

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  • The current approach to procurement is crazy. Lowest price, dysfunctional IT specifications, diseconomies of scale foisted upon organisations by 'snake-oil' procurement consultants. False best practice procurement nonsense causes this.

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  • F451

    Hi John - was it the snake-oil consultants or the regulatory framework building on the original compulsory tendering, all aimed at doing away with direct labour and forcing trade into the private sector, where cheapest was considered best, and local knowledge had no value?

    At least the partnering approach behind these longer term deals allowed landlords to get away from schedule of rates and build in improvement and escalating value for money clauses, linked to rising satisfaction, all for realistic real terms costs - affordable to the rent account yet still profitable to the contractor.

    If this is to set the trend then we may be heading back to the days when cheapest, short term, low quality and unsatisfactory repairs return to be the norm - and no doubt we will all celebrate by driving around in Ford Cortinas!

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  • This should happen with Camden Council and Lakehouse contractors, a long term contract agreement which favours contractors charging what they like to the council who in turn take a 10% management fee then recharge leaseholders (and tenants) with the overpriced and shoddy repairs with no penalties on the contractors (there are at least 4 sub-contractors each on 10% along the line with low paid eastern European workers who could care less about the quality of work) I have paint peeling of the window after just one year of capital works being done!

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  • sorry about the workmen it should read COULD NOT CARE LESS about the quality of the work!!!!!!

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  • Clem

    How right you are they call themselves professional at Housing Association they would know how to get a good deal if it bit them on the bottom!

    I sure in your area a number of retired people whom worked in the industry and retired. Whom could got and ensured that best Contractor got the job and better rates and ensured with Clauses to hold them accountable. More Tenants should be involved in these tenor's.

    I find Housing Association and most Council staff have not got a clue or they on what a perk from the Contractor they have employed

    We all know in the real world what going on. But we cannot get near these papers to Scrunity

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