£600m heating services procurement framework promises big energy savings for Scottish social landlords
A new specialist heating services procurement framework specifically designed to meet the needs of the Scottish social housing sector has been launched, offering participating social landlords the opportunity to achieve major improvements in energy efficiency and significant savings on their energy bills.
Expected to generate work with a total value in the region of £600 million over four years across Scotland’s social housing sector, the new framework aims to help registered social landlords meet their obligations under the Energy Efficiency Standard for Social Housing (EESSH). It will be managed by housing sector procurement services provider PfH Scotland, and jointly owned by HouseMark, the National Housing Federation and the Chartered Institute of Housing (CIH).
Introduced in 2014, EESSH aims to improve the energy efficiency of social housing in Scotland while reducing energy consumption, fuel poverty and the emission of greenhouse gases and is expected to make an important contribution towards meeting the requirements set out in the Climate Change (Scotland) Act 2009 to reduce carbon emissions by 42% by 2020 and by 80% by 2050.
PfH Scotland issued a call for tenders in June this year and received tenders from a total of 43 heating services contractors. Following an exhaustive assessment process, 26 companies have been appointed to the framework covering six defined geographic regions across Scotland. The framework was split across these different regions with the specific aim of encouraging smaller local contractors to apply. To further support participation by smaller local contractors, evaluation of tenders was 70% weighted in favour of quality and 30% on price.
Alongside competitive pricing, technical competence and a strong track record in health and safety, bidding contractors were assessed according to their ability to demonstrate high quality service, market expertise, transparency and integrity alongside innovation and the use of new technologies. Contractors able to demonstrate a commitment to sustainability and social value and a capacity to deliver local community benefit were marked particularly highly.
In total, 18 of the 26 contractors now appointed to the framework are defined as SMEs, based on the standard classification of having less than 250 employees, an annual turnover below £50 million and gross assets of less than £12.5 million. This is equivalent to almost 70% of the total.
In each geographic region, the framework has been broken down into 13 individual lots covering services ranging from energy performance certification to domestic and commercial gas servicing and from the installation of renewables to architectural services. An SME contractor topped the shortlist in nine of the 13 lots.
PfH Scotland members using the new framework to procure heating services will benefit from a comprehensive service solution provided by PfH Scotland. This covers everything from initial project engagement through to performance monitoring and contract management.
Commenting on the launch of the new framework, PfH Scotland head of operations, Stephen Herriot, said: “Social landlords face challenging targets to improve the energy efficiency of their housing stock over the next four years. This framework will provide access to a broad range of heating services to help them meet those targets. Our exhaustive selection process has ensured that those contractors appointed to the framework are equipped to meet stringent quality standards at a competitive price. A key innovation has been the regional approach we have taken to provide greater access to those contractors with the flexibility and local knowledge needed to meet the exacting requirements of social landlords with a base in that region.”
Stephen Herriot added: “Whether an existing member of PfH Scotland or not, I would encourage all Scottish social landlords with an interest in improving the energy efficiency of their housing stock to take a closer look at our new heating services procurement framework. By giving them access to a list of consistently reliable and affordable specialist heating service contractors, this framework will enable Scotland’s social landlords to meet their legal obligations to cut emissions while achieving significant savings on energy bills for the benefit of their tenants.
“PfH Scotland provides a full service solution to members, from initial project engagement through to performance monitoring and contract management. This is the first of several new Frameworks which are focused on the needs of our members and I look forward to it making a positive impact across the country.”
The following contractors have been appointed to each of the 13 lots that make up the PfH Scotland EESSH heating services procurement framework:
Lot 1 – EPCs
Lot 2 – Domestic Gas Servicing
Lot 3 – Domestic Off-Gas Servicing
Lot 4 – Domestic Heating Installations
Lot 5 – Commercial Gas Servicing
Lot 6 – Commercial Off-Gas Servicing
Lot 7 – Commercial Heating Installations
Lot 8 – Domestic Renewables Installations
Lot 9 – Commercial Renewables Installations
Lot 10 – High Heat Retention Storage Heater Installations
Lot 11 – Managing Agent
Lot 12 – Land & Environmental Surveys
Lot 13 – Architectural Services