Procurement

 

 

Savills were commissioned by Glasgow City Council in 2006 to carry out a study exploring the potential for procurement efficiencies in a potential Glasgow Social Housing Programme of 1500/2000 units over the next 5 years. 

 

The Study results can be accessed below:

 

In March 2008, GCC appointed Turner and Townsend Project Management to carry out a detailed study, building upon the previous high-level study.

 

It is anticipated that the bulk procurement programme will be delivered by lead developer(s), who will subsequently hand over completed units to local RSLs to manage. It will involve approximately one third of the GCC Housing Investment programme, i.e. 500 new build units per year, over a three year period beginning in 2009.

 


Aims:

 

The most obvious aims of a bulk approach are to achieve cost efficiencies through economies of scale, and achieving efficiencies in the process of housing development. The consultants have been given a wide remit to investigate these processes, for example how a bulk approach, and a forward release of sites, could be used to streamline the ground remediation process or assist in negotiating statutory procedures.

 

A key element in achieving cost-savings is a degree of standardisation in the house building process. However, within this standard approach local RSLs will still be able to influence the housing developed- in terms of housing mix, aspects of the internal layout, and external facades.

 


Potential Sites:

 

Turner and Townsend, and their associated architects and engineers, have been given a list of potential sites that may be suitable for this programme. These have been selected largely from the existing residential land supply, and the majority are already in GCC ownership.

 

For each site, desktop preparatory studies have investigated site size and topography, and also constraints such as services, roads and drainage.

           


Consultation:

 

Turner and Townsend will be consulting with a number of RSLs and contractors in the city to ascertain their views regarding Glasgow’s bulk procurement proposals. These views will inform Glasgow’s approach, and once the report is published it is our intention to select RSLs and contractors to be involved in the delivery of the programme in a transparent and rigorous manner.

 


Timescale:

 

We hope to receive the final report in November 2008, and will then circulate it to all interested parties for further comment. The selection of RSLs interested in developing housing as part of this programme, along with the selection of contactors and consultants, will take place over the subsequent months.   

 

It is intended that, if it proves suitable and has the potential to deliver savings, the bulk procurement approach may be introduced as part of our new-build programme from 2009/10.