How can social housing providers get ready for the Procurement Bill?

So, what can social landlords do right now to prepare for procurement reform, manage the risks and take advantage of the opportunities? Here are eight practical ideas:

1. Set up a champions network

One housing association told me it has recruited a group of employees from across the organisation who are responsible for raising awareness of the new procurement rules within their different directorates.

These advocates answer colleagues’ questions and they are the procurement team’s first port of call to spread the word about changes and notifications. They also help to communicate externally with other housing providers, sharing knowledge and learning in their region.

2. Read up on the Procurement Review Unit

In the past, one of the biggest risks facing social housing procurement teams was a challenge from a supplier, but that’s set to change. The Cabinet Office’s Procurement Review Service will now scrutinise whether public bodies are following notices and processes. They might check a particular sector and how construction contracts are being procured or they might drill down on a specific housing organisation and review procurement practices based on stakeholder feedback.

This could have a major impact on the reputation of housing providers; they must be ready.

3. Access resources from legal providers

Many law firms offer free webinars and resources around the bill and its impact. The Housing Associations’ Legal Alliance provides free bespoke training sessions for its members – tap into these.

4. Review internal quality checks

The need for notices, key performance indicators and contracts to be redacted will increase substantially with the new rules. Look at your internal audit and reporting processes, will they still be compliant? Have you got the right skills and systems in place?

The new procurement regime may require you to change the shape of your team and it’s worth starting that recruitment and training process now.

5. Improve contract management

Currently, most social housing contracts are let and then given to service managers. But they don’t always have the skills to monitor supplier performance and have difficult conversations when things don’t go right.

Under the new bill, contracts will have to be managed more vigilantly. Communicate these new requirements to service managers in their own language and offer them training. Contract management won’t often be a primary part of their day job ,so giving them support is key.

6. Make your organisation attractive to suppliers

These new rules will bring a lot more rigour to the tender process and it’s worth taking the time to explain to suppliers how changes will impact them. If you position your housing organisation as a buyer of choice and give your supply base reasons to bid for your contracts, it will pay off in the long term.

7. Get the right skills in place

The majority of extra resources needed in buying teams will be administrative, but negotiation capability will also be vital. Housing can be overlooked as a sector for procurement professionals, but reform will open it up to a wider pool of talent, including private sector candidates. Think about how you can make your organisation as appealing as possible to new employees.

8. Read the bill

It may sound obvious but if you do just one thing now, get to know the new legislation. There are helpful documents on the government’s website, including a summary guide to provisions, a planning and preparation checklist, and range of training ‘knowledge drops’ and learning modules. Find out more here.

Guy Stapleford, head of consultancy services, Procurement for Housing