Technical Services Best Value Review - Summary

Background

A Best Value Review of the Council’s Technical Services Division was completed in October 2002. The objectives of the review were to:

1. To carry out and complete the review thoroughly in accordance with the Council's Best Value framework. 
2. To challenge how the service is provided. 
3. To consult with stakeholders on the use, operation and funding of the service, and to take these views into account in the review of such consultation. 
4. To compare the service by benchmarking against other providers.
5. To assess whether the service can be provided in competition with others 
6. To consider options for provision of the service.
7. To produce an Implementation Plan which would secure continuous improvement in the service over a reasonable period of time.

The Review was been undertaken in three distinct categories:

• ‘Consultancy’ Services
• Procurement of Construction Contracts 
• Maintenance of the Council’s Administrative Buildings

Each of these categories has been subjected to the 4 C’s i.e. Challenge, Consult, Compare and Compete, all in accordance with the Council’s Guidance Manual for Best Value Reviews.

In addition the Review has considered the integration of the Council’s Housing Repairs Team, which were transferred to Technical Services as a result of the Tenant Services BV Review. It has also incorporated, where relevant, the outcomes of the BV Review on Interaction with the Public.

Challenge

A substantial amount of work was undertaken in order to challenge each element of the service as it is currently provided, in accordance with the Council’s BV review methodology. This included the involvement of Members, senior management and other staff throughout the authority.

It produced a series of actions that could be taken to improve the overall delivery of the service.

Consultation

Has been extensive for all elements of the review. The consultees were:

• Internal clients
• External clients
• Council tenants
• Heads of Service
• Staff
• Users of our corporate buildings

Consultations provided a good level of response in all cases. The outcome of the process has indicated that the service provided by Technical Services is of good quality and valued by our clients and our stakeholders.

Comparing the Service

• The National Best Value Benchmarking Club
• The Building Cost Information Service (funded by the ODPM)
• The University of Manchester Institute of Science & Technology Pre-Qualification Survey (2001)
• Building Maintenance Expenditure by Local Authorities (published by Society of Chief Architects in Local Authorities)

The overall outcome clearly shows that in terms of expenditure, quick delivery and customer satisfaction we are providing a good service to our Housing division (and onward to our housing tenants) and also to our other clients, whether internal or external.

The results indicate that our fees levels are lower than the market rate in many of our key programmes and on individual projects of a varying nature i.e. the service is very competitive in terms of fees charged when compared with other providers. It also indicates a few work categories that need review in order to reduce the fees charged.

Competition

In terms of the ‘consultancy’ service there are no areas where the service is failing, and it is competitive in the market. It should therefore be retained, particularly when this review has identified areas where the service can be improved further.

In terms of contract procurement there are opportunities to join the Government’s Construction line’ initiative.

There are opportunities to market test the cleaning of the Corks Lane HQ

Staffing Implications

The overall effect is:

• A new assistant surveyor for tenancy changes (voids)
• An increase in the technical administrative support of 12 hours
• The change of the ‘principal’ layer across the teams to ‘senior’
• The change of an administrative assistant to a technical assistant
• One temporary repairs assistant made permanent, albeit on a part time arrangement of 17.5 hours per. week
• A restructuring of the Division to ensure that the changing strategic needs of the authority in relation to construction-related issues are dealt with effectively

Financial Implications

The review has the following financial implications:

• The additional staffing requirements will result in a cost of £41,000 in a full year. However the new structure will cost less in the longer term as savings from the removal of salary protection arrangements for existing staff who leave the Council will arise in future years. This should result in the long term cost of the new structure being only £11,000 more than the existing cost
• The increase in costs will be met from the Housing Revenue Account
• There will also be a saving to the Council of approximately £3,000 a year from the disposal of the capital works vehicle

Conclusions

The Best Value Review of Technical Services has been a worthwhile exercise. Every element of the service has been fully examined, processes questioned, and areas for improvement identified

• The challenge and consultation work has indicated that the Technical Services delivers a good service in all three categories with a high level of satisfaction from its users, and our tenants where applicable
• The comparison process has indicated that the performance of the service is high, and that the cost of the service is very competitive in comparison to other providers
• Because of the quality and cost of the service there are only limited opportunities for introducing competition, but these will be pursued
• The review has generated an Implementation Plan that will see the quality of service provided being increased above its current high level
• Various options have been considered for delivering elements of the service and the Implementation Plan includes the options selected. These include:
  • Separate improved 3-year contracts for reactive repairs and tenancy changes undertaken by single contracts
  • An improved 3-year Standing List of Approved Contractors
  • A pilot ‘partnering’ project
  • Improved management arrangements and post project evaluation
  • Condition Surveys on a 5-year cycle
• The need for additional staffing resources has been identified, together with the restructuring of the division to meet the future needs of our clients. The financial implications of the additional staff resource will be met from the Housing Revenue Account
• The review will ensure that the in-house Technical Service currently provided will be improved beyond its current high standards.
  

Recommendations

The following recommendations were agreed:

1. That the contents of this review be noted
2. That the Implementation Plan for delivering improvement to the service be approved
3. That the increase in staff resources be approved
4. That the revised staffing structure for Technical Services be approved