Contractors' pay linked to tenant satisfaction
A pair of contractors could be hit with financial penalties if tenants are not satisfied under a new agreement with a housing organisation.
Network Housing Group has picked Rydon and Axis Europe to undertake repairs and maintenance work on its 17,000 homes.
The contracts, worth £28 million over five years, will start on 1 November but have a performance related pricing system written into them which mean if tenant satisfaction drops, so does the contractors’ pay.
The landlord said resident satisfaction would be measured by research company The Leadership Factor.
NHG said it wanted to change the way it issued contracts and judged each bid in terms of 60 per cent quality and 40 per cent price.
When tendering, NHG said it involved tenants throughout the process, holding meetings and consulting tenant and leaseholder representatives about what they considered made a good repairs service.
Residents were also involved in evaluating the bids, site visits and interviews.
Helen Evans, chief executive of NHG, said: ‘We are very proud of our new repairs contract, it signifies an important first in the housing sector.
‘At Network Housing Group we feel the new repair contracts build on our commitment to provide the best possible services for our residents.
‘We hope that this is the start of a new era in meeting residents’ needs and aspirations.’
NHG comprises seven housing associations and with the repairs contract ending at the end of this month up for one of them – Network Stadium – the group decided to procure a new contract across the whole organisation.
Rydon won the contract for the Brent, North and East London areas. The Westminster and Thames area was awarded to Axis Europe.
The new contracts include a new appointment system which offers residents more flexibility including some evening and Saturday morning appointments.
Jeff Henton, managing director of Rydon, said: ‘We are delighted to be working with such a highly respected organisation and we look forward to establishing an excellent relationship with the Network staff and, critically, with their residents.’
John Hayes, chief executive of Axis Europe, said: ‘We focus our repairs and maintenance service on resident, client and wider community needs, it’s what we mean by ‘what’s good for you is good for us’, so we are very much looking forward to working with Network on a contract that clearly puts residents first.’