There is an obvious saving in procurement time and resource when using a framework. A typical OJEU procurement will take anywhere between 6 and 12
months and cost in excess of £50k, whereas a framework call off can be completed in a matter of days at no cost.
However, this should not be where the advantages end as the output from this exercise has to be managed throughout the life of the contract. Reallies partner Procure Plus had worked with Six Town housing for a number of years on a heating and painting contract which had run parallel to their own framework delivering internals and roofing projects.
In 2015 an exercise was carried out to identify the difference in cost of using the framework for all their planned maintenance works and what other added value
elements the framework could provide such as social value, systems and operational support.
Paul Webb, Business Manager – Sustainabilty & Investment at Six Town Housing, said: “Prior to working with Procure Plus we had our own successful framework. We always found this the best way to operate as it enabled us to build relationships with contractors to ensure smooth delivery of works. In 2015 we moved over to the Procure Plus Framework, were able to develop and maintain relationships in the same way but also save 5% on my overall costs on day one and continue to value engineer further savings (3% in 2016/17) using the Reallies supply chain and the transparency Schemes Plus provides”.
6-9 months – initial procurement time. Savings, Day 1 – £50k, Year 1 – £453k, Year 2 – £529k, Year 3 – £294k ongoing value engineering.