CHIC CHAT




Net Zero Carbon

The current demands on the residential sector have never been tougher.  We are a time where material costs are rising, climate change has become a key issue and Government guidelines are tightening.  The emphasis on low carbon is key to the future survival of the world and with this journey comes a change in thinking and attitude.  The future of housing is to go green, and this entails changing how we build and the products we use.  A combination of acute housing demand and market failures in terms of cost, quantity and quality are forcing the industry and the Government to look at MMC as a solution.

The reason for such faith being placed on MMC can be attributed to three key elements reflecting the principles driving the sector, which are namely: Digitisation, Manufacturing and Performance.

The utilisation of pre manufacturing technologies brings construction into the modern age by transferring production to the factory.  With greater quality control and more efficient use of materials and labour along with more environmentally friendly materials and waste management. New homes can be built quicker, easier and be more energy efficient to meet our current and future carbon reduction targets. This is achieved by building the majority of the product under a factory-controlled environment, which sends no waste to land fill, maximises recycling opportunities and using energy efficient materials which enhance the rating of the product and provides running cost savings for future residents.

Digitisation promotes consumer, investment, insurers, surveyors, manufacturers and builder’s confidence in the product and its performance.

 

BuildSmart, CHIC’s new build service, has teamed up with a number of key MMC providers based nationwide to provide low energy, carbon efficient homes either on a turnkey or supply only basis.  The long-term contracts with these partners ensure that costs are kept competitive and if procured on a turnkey basis, offer Members a “one stop shop” which ensures continuity and quality.

The low carbon drive is a journey not an end product.  It is about future proofing housing stock to reduce fuel poverty for the users and provide more energy efficient housing.  MMC also provides a better build environment for existing residents by reducing time and disruption on site. 

Low carbon can be achieved by increasing insulation, making small changes such as changing a gas boiler for an air source heat pump and by adding PV solar panels, ensuring energy bills are kept low.  At the other end of the spectrum is net zero carbon which is a construction journey from the design of the end product, the materials used and waste minimisation in the manufacturing process, to the end user and their lifestyle changes as a consequence of that journey.

CHIC has had MMC solutions available for a while, but member take up remains very limited.  We hope we can work with members and our MMC partners to support the inevitable change in approach.

For more information, please contact:

Sarah Davey
Head of Development Services

07748 375181

sdavey@chicltd.co.uk

or visit www.chicltd.co.uk

CHIC’s recent webinar Zero Carbon – So What Does It Really Mean, discussed what it will take for registered providers to achieve the UK Governments decarbonisation targets. If you didn’t manage to attend, we have summarised the event here, where you can also find a recording of the webinar.

 



What's Happening at CHIC?

Agency Agreement with ARK Consultancy Ltd

CHIC’s Members all have to comply with PCR 2015, so CHIC as an organisation must obviously also comply with those regulations. As CHIC’s first ten years drew to a close the Board embarked on a new procurement exercise in 2019, to select a new managing agent.

Due to a range of operational issues, the procurement period was extended into 2021, with tenders being sought following placement of an OJEU notice in late 2020. CHIC’s Board, supported by Trowers and Hamlins and Kennedy Cater, managed the procurement process through its normal stages.

ARK Consultancy was CHIC’s original agent, itself investing in the original feasibility study and business plan, now over a decade ago. ARK has provided agency services to CHIC during its first eleven years of operation but understandably could have no involvement in the reprocurement of the service, if it were to bid for a further term.

The procurement process has now completed and ARK Consultancy was the highest scoring bidder and has therefore been appointed to act as CHIC’s managing agent for a further term of 5 years, with effect from the 1st July 2021. The procurement allows for the term to be extended for up to a further 5 years.

CHIC’s Board is very clear that this is the start of a new chapter in the growth and development of CHIC.

As part of the formal procurement process, CHIC’s Board, on behalf of Members, set out clear objectives and expectations of the managing agent which in turn were reflected in the tender proposals and costs. There is now a new agency contract executed by both CHIC and ARK and this sets clear business and service objectives on behalf of the Members, which the agent will be focused on delivering.

John Fisher, long term director of ARK Consultancy but also founding Managing Director and now Chief Executive of CHIC states “Having been a fundamental part of initiating CHIC with a small group of Members and working with them and a progressively increasing membership over the last 10 years, we are delighted to have been successful in CHIC’s recent tender process. This provided the opportunity for the focused and dedicated CHIC team to make a seamless transition to a new and exciting business plan period.”

“We look forward to working closely with CHIC’s Board, Members and extensive supply chain to continue to add value for our Members through the range of service offers now available.”

CHIC will now be focussed on developing its business strategy, that reflects Member needs, for the 5 years 2021-26.

CHIC’s Chair, Maggie Punyer said “ CHIC is entering a new and very exciting period.  The requirements and procurement needs of our Members and the sector will remain our priority, but we hope to be able to meet those needs even more efficiently whilst continuing to offer value for money and quality.  This has been a long process but the outcome begins a new chapter and the Board is looking forward to working with ARK and our established staff team.”

 

 

CHIC Order Management System Update

Great progress has been made with the CHIC Order Management System (COMS) since we reported on its launch.

The development team is working on expanding the capability for new members. Currently the system is used by a single CHIC member, but the new features will allow contractors and suppliers to manage orders across multiple members, as well as allowing CHIC to manage member catalogues.

We have also implemented a new dashboard feature that allows the member to configure a live reporting display which can be accessed through their COMS login at any time.

 

Future developments include a live system integration with our supply chain to automate the order process. We are expecting to welcome more members to start using COMS and to be involved in the next level of testing in the near future.

 

 

CHIC’s Governance -  Recruiting Non-Operational Directors

CHIC is a consortium that is owned in equal part by all of its members. CHIC’s governance is overseen by a Board of Directors; the Boards role it is to set the consortium’s strategic direction, ensure that it provides the contracts, frameworks and services that the members want and to monitor operational delivery of the agreed strategy.

CHIC’s Board is made up of an Independent Chair and up to 10 further Directors, at least 8 of whom must be member representatives. CHIC’s Board reviews it’s mix of skills and experience regularly, to ensure that it has the requisite knowledge and experience to represent members effectively.

The current Directors on CHIC’s Board and their roles in CHIC are as follows:

  • Maggie Punyer, Independent Chair
  • Ian Hancock, Vice Chair & Group Director, The Community Housing Group
  • Leon Storer, Assistant Director of Assets, Stonewater
  • David Wells, Head of Operational Services, Wrekin Housing Trust
  • Sarah Payling, Strategic Partnerships Director, Ocean Media Group (Independent Director)
  • Mark Pinnell, Executive Director of Assets & Development, Solihull Community Housing
  • Jayne Bissell, Group Procurement Manager, Connexus
  • Luke Beard, Assistant Director of Development & Asset Management, Two Rivers Housing
  • Mak Akinyemi, Formerly Director of Property Services, Gateway Housing Association
  • Naeem Nawaz, Head of Finance, Accent Group

In June 2021 the Board said farewell to Andy Howarth.  He was CHIC’s founding Chair and, having stepped down from that role, remained as a co-opted Board member to support the agency procurement process.  CHIC is indebted to Andy for his huge support and stewardship over the last 11 years.

The current long term Vice Chair of CHIC, Ian Hancock, has also advised he will be stepping down from the Board in September.  Again, Ian has been an importance influence over many years and a strong supporter of CHIC’s services and we thank him for his valuable input.

CHIC’s Board is now recruiting for two new Directors.  We are keen to see that the Board is able to represent the interests of our full range of members whilst having an effective blend of skills and expertise.

CHIC’s Board meets four times each year, holds an annual business planning awayday and meetings at our annual conference.

If you are interested in joining the Board, please contact our Chief Executive, John Fisher (M 07702 230489 or E jfisher@chicltd.co.uk) in the first instance to find out more about these roles.

 

 

Launch of new Member Services and Products      

CHIC has been progressing a number of frameworks and DPS solutions over the recent months. All of the new procurements set out below are in the final stages of the procurement process and we expect them to be available to CHIC members from July 2021.

 

Consultancy Services Framework

Open: 17th April 2021

Closed: 12th May 2021

This is a multi-disciplinary consultancy framework comprising Building Surveying services, Contract Administration, Employers Agents, Quantity Surveying services, and Principal Designer and any other roles that may be required to support the delivery of high quality, on time, on budget works. Support can be delivered at any project stage from Inception to Completion, or to monitor completed projects, and may be in relation to

Planned Works Programmes, individual works contracts, or any other projects that may arise during the framework term.

The Framework includes the following Lots:

  • Lot 1 Integrated Consultancy Team
  • Lot 2 Structural Engineer
  • Lot 3 Façade Engineer
  • Lot 4 Fire engineer
  • Lot 6 Housing and Asset Management Services
 
Digital Asset Delivery Framework  

Open: 7th May 2021

Closed: 18th June 2021

This is an 8-year Framework to commission Service Providers for advising, capturing, creating, hosting, and maintaining Digital Assets in respect of the built environment. 

CHIC is seeking to establish a multi-provider framework with partners that can deliver to our members support to enable them to transform their physical asset base into a true Digital Asset. We have sought solutions that will allow members to manage an asset through its lifecycle more effectively (digitally)and to integrate it with existing systems, ensuring capture of the ‘Golden Thread of information’.  In particular, members have expressed interest for Higher Risk Residential Buildings (HRRB), public buildings and larger structures. Our members key deliverables from Digital Asset Delivery focus on Building and People  Safety, Intelligent Asset Management and future emissions reduction.

We expect this Framework to establish access to several providers that will have the in-house capability to complete any or all the following categories that we believe will deliver a comprehensive solution to our Members.

  • Element 1 Digital Advocate
  • Element 2 Digital Capture
  • Element 3 Digital Asset Creation
  • Element 4 Digital Asset Collation
  • Element 5 Digital Twin Platform
  • Element 6 Member Specific System Development

 

Compliance Audit Services Framework

Open: 17th May 2021

Closed: 29th June 2021

A new four-year Framework to commission companies for the provision of asbestos management, commercial gas, domestic gas, electrical safety, fire safety, lifting equipment, mechanical and electrical and water hygiene auditing. These are services required by our members to provide them with third party expert assurance around their Building Safety and Compliance responsibilities. 

The Framework will enable Members to access a range of internal Policy Compliance and Site Portfolio Audits along with Site Contractor Assurance Audits. The audit process is an integral part of regulatory management to ensure that routine servicing and maintenance is completed to a defined scope/specification, in line with the member’s requirements, whilst complying with legislative and company policy requirements.

The lots available will be as follows:

  • Lot 1 Asbestos Management Auditing           
  • Lot 2 Commercial Gas Auditing       
  • Lot 3 Domestic Gas Auditing            
  • Lot 4 Electrical Safety Auditing
  • Lot 5 Fire Safety Auditing 
  • Lot 6 Lifting Equipment Auditing    
  • Lot 7 Mechanical and Electrical Auditing      

 

In case you missed them, we also released our Risk Assessment Framework, Lifts Framework and Asbestos Abatement Framework earlier in the year.

 

If you would like to utilise any of these solutions, please get in touch with your Head of Member Services. 

 

Stephen Sharman

Head of Member Services (Midlands & South East)
07468 697612
ssharman@chicltd.co.uk

 
Victoria Speakman

Head of Member Services (South West & Wales)
07793 071784
vspeakman@chicltd.co.uk
 
Lesley Dixon

Head of Member Services (Cumbria & North West)
07840 537979
ldixon@chicltd.co.uk

 

 

Membership

CHIC has welcomed several new members over the past few months.  CHIC’s members now comprises 148 organisations in total. The latest organisations joining CHIC to access our services include:

  • Bassetlaw District Council
  • Castle Point Borough Council
  • Forest Future Homes Limited
  • Gentoo
  • Hartlepool Borough Council
  • Hendre Housing Association
  • Qualis Group
  • Radian
  • Together Housing
  • Vale of Aylesbury Housing Trust Limited

 

The CHIC Team

We are pleased to welcome Manjit Sanghera, who has recently joined  the CHIC team as Supply Chain Manager, responsible for providing management support to CHIC’s materials and labour supply chain.

Manjit has experience of working for builders’ merchants such as Jewson, Selco and most recently Travis Perkins specialising in Category Management. Manjit’s role includes strategic supplier management and engagement, negotiating annual contracts and cost inflations, reviewing sales and margin figures to build category plans and aiding in generating new opportunities via tender processes.

Prior to joining CHIC, Manjit worked at Travis Perkins as Category Manager for Insulation and Roofing products, where she managed tenders, range reviews and category plans, to secure product volume commitment and key merchant-supplier partnerships. 

 



News From the Sector

The draft Building Safety Bill was published on 20 July 2020, taking forward reforms to the building and fire safety system. Nearly one year later, the full Building Safety Bill has been passed, which entails some important legislation affecting the housing and construction sectors.

A key purpose behind the new reforms is to make homes safer for people and to give a voice to residents, protecting them in terms of their own safety and their rights. Overhauling current regulations, these reforms are here to stay and set out clear-cut guidelines on how residential buildings should be upheld and constructed. Tougher penalties for noncompliant landlords are going to be enforced and developers will need to belong to a New Homes Ombudsman scheme.

The requirement for residents to have more influence in the management of their buildings is an important factor with the new bill and the Building Safety Regulator will play a key part in instances where residents in high-rise buildings feel ignored. Building safety concerns can be raised directly to the owners or managers of buildings and then progressed to the regulator if progress is not being made.

For building owners, transparency and a stringent level of safety procedures for residents is a fundamental part of the bill. They will be required to manage safety risks throughout the entirety of the building’s lifetime, whether this be during the design, construction, completion or occupation of high-rise buildings.  “Building owners will need to demonstrate that they have effective, proportionate measures in place to manage safety risks. Those who don’t meet their obligations may face criminal charges.”

The Bill will create a clear framework for the design, construction and management of safer, high-quality homes. It will strengthen the construction products regulatory regime, with new requirements to make sure more products and particularly that people are safe. A National Regulator for Construction Products will oversee and enforce the rules in the years to come. A new developer tax is also being introduced to ensure that the industry makes a contribution to setting things right.

Read the full report here

CHIC’s new Digital Asset Delivery Framework will support members in being able to create the knowledge digital infrastructure they will need, to meet the requirements of the Bill for existing homes.

 



News from the Supply Chain

Last Month, we mentioned that the Office for National Statistics has projected a rise of 7-8% in material prices this year.

CHIC works collaboratively with the materials supply chain to better understand the potential supply related issues that may arise due to Brexit, as well as the knock-on effect of Covid 19. This close partnership has allowed CHIC to maintain an understanding as to how the supply of materials has been affected in the short term as well as the commercial and operational impact this will have on our members.

This strong relationship has allowed CHIC to continue to bring our Members the highest possible savings in what is an ever changing market.

CHIC has seen applications for price increases across a multitude of product categories as described below. We aim to keep you, our members aware of the market changes and also where possible where we have managed to negotiate a reduction in the proposed increase.       

Many suppliers are experiencing cost pressures caused by increased demand (nationally and internationally), limited supply, import/customs restrictions and particularly new material price increases in their own supply chain.  Pressures are further exacerbated by some shortages of labour, addition to the cost of manufacture.  The ‘noise’ across the construction sector is currently notable, creating real concerns about real cost inflation.  

CHIC’s relationship with our supply chain requires a notice period between notification of price increases and these taking effect.  During that time, the CHIC commercial team works with each supplier to mitigate the level of any increase, to ensure that members still access materials at the best current rates.

Here are a few headlines from recent market activity:

  • Requests for price increases across 17 different product areas
  • Price increase requests ranged from 3% to 20%
  • Increases agreed range from 2% to 16%
  • Some increases proposed were at rates already reflecting CHIC’s members combined ‘purchasing power’ and have been agreed
  • Whilst for others, reduced levels of increase have been agreed
  • Increases have been introduced progressively since April, but some are not due to take effect until August/September

The CHIC team is working hard with our supply chain partners to mitigate any cost increase and with our members to keep them informed of the changes.

The experiences of the last few months bear out the ground level of increases predicted by the ONS and the wider impact on inflation for the next couple of years, now predicted by the Bank of England.

If you would like any more information, please do not hesitate to get in contact with one of our Heads of Membership Services.

 

Stephen Sharman

Head of Member Services (Midlands & South East)
07468 697612
ssharman@chicltd.co.uk

 
Victoria Speakman

Head of Member Services (South West & Wales)
07793 071784
vspeakman@chicltd.co.uk
 
Lesley Dixon

Head of Member Services (Cumbria & North West)
07840 537979
ldixon@chicltd.co.uk