Boiler Precurement Review

A Report has been launched which summaries the key findings of a comprehensive Review that has been carried out with key stakeholders into the Procurement of boilers and their installation, service and maintenance in Social Housing.

The Review was organised by the Association of Gas Safety Managers (AGSM) with a meeting held in July 2014 at the House of Lords under the Chairmanship of Lord Redesdale, CEO of the Energy Managers Association. Stakeholders who attended the Review included Housing Organisations (primarily gas and asset managers and directors) Procurement Frameworks, Boiler Manufacturers, Contractors, Merchants, Members of the AGSM and CORGI Technical Services.

Each year, many thousands of organisations in Social Housing across the UK spend millions of pounds going through the Procurement process for the installation, service and maintenance of boilers. Most have fairly standard requirements to supply heat in the most efficient, cost effective, sustainable manner.

But the Review found that many of the current processes are:-

  • bureaucratic (largely due to current EU Regulations)
  • expensive
  • a waste of public money
  • no longer fit for purpose
  • unsustainable
  • lacking in innovation and collaboration leading to fragmented economies
  • leading to an increase in the supply chain costs and are showing a lack of industry knowledge and Gas Manager input.

The key recommendations for Stage II of the Review concluded that there need to be:

1. Benchmarking and Standardisation need to be more widely used and brought up to date

2. Streamlined procurement processes – it is time to cut the red tape and think out of the box!

3. Review of legislation to enable the sector to cut waste and drive long term efficiencies

4. Changes to current legislation for Landlord to carry out annual gas safety checks

5. Tenant engagement and accountability in line with the Right to Manage philosophy

6. Lifecycle costings initiatives for boilers moving from the race-to-the-bottom on price, to addressing the lifetime costs and value for money

7. Built in energy efficiency providing affordable warmth as a standard requirement

8. Industry collaboration with an integrated approach at all levels and stages of the supply chain including contractor training accreditation

9. Greater reliability of modern boilers and a review of parts and labour warranties