Internal Affairs for Adactus500 Scrutiny Panel Planned Maintenance: Interim Report 28 October 2016
Internal Affairs for Adactus500 Scrutiny Panel
Contents
Page
Project background ....................................................................................................................3 1.
Component replacement ...........................................................................................................4
2.
Quality and cost of components ................................................................................................6
3.
Choices .......................................................................................................................................6
4.
Informing customers ..................................................................................................................8
5.
What are other housing associations doing? .............................................................................8
Appendix: Staff Interviews ........................................................................................................................10 Spot check – CP13 .....................................................................................................................11 Spot check – Updating records ................................................................................................11 Spot check – One offs ......................................................................................................................... 11 Spot check – Exclusions ....................................................................................................................... 12
Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
Scrutiny Review: Planned Maintenance Interim Report The Project How we deliver our planned maintenance programme in order to keep assets in good condition to meet the Decent Homes Standard.
Background Planned Maintenance includes the replacement of certain building components, which includes kitchens, bathrooms, electrical rewiring, roofs and roofline (fascia, soffit and gutter), central heating systems, windows, and internal/external decoration. Prior to 2013 components were replaced when they had reached the end of their life (beyond economic repair) as required by the Decent Homes Standard. In 2013, Adactus changed its approach and since then consideration is given to both the age and the condition of the component. However, there are exceptions; boilers will be still replaced at the end of their life (fifteen years) and Retirement Living schemes (sheltered and supported) are exempt in order to maintain their desirability to customers.
What we wanted to know • • • • •
How is the condition of components assessed? How are properties selected for planned maintenance work? Does Adactus provide quality components? What choices does Adactus offer its customers? Are customers excluded from planned maintenance work?
What we looked at • • • • • • •
Information on the website. Component replacement policy. Internal audit report on planned maintenance. Choices sheets. Number of improvements completed. Rent Arrears Recovery Policy. Customers rent accounts.
Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
What we found 1. Component replacement a. Component Assessment • Component information is held on the Group’s stock database (Integrator), and on the housing management system Qlx. This information will be updated each time a component is replaced. A spot check revealed this was being done. • Each year a survey is carried out on components as part of a property MOT assessment (CP13). If the components are considered to be in good condition then the next assessment date on the database will be changed to the following year. The surveys are completed by Gas Engineers when they access a property to carry out an annual gas service inspection. A scoring system (one to four) is used to determine the condition of a component; one rates the component as being in very poor condition and at the end of its economic life while four rates it as being in a very good ‘as new’ condition. • A spot check revealed most CP13 failures were scored correctly and described the condition of components as ‘poor’ or ‘in poor condition’. Some provided a more detailed description and also advice on remedial action required. • For properties without gas (therefore no annual gas inspection or CP13) the component replacement date on the database will generate an inspection. • The repairs history is also used to determine if a component needs replacing. The history will show the number of times a repair had to be carried out to the same component therefore allowing staff to identify where a replacement would be a better option. If it is identified that a component needs replacing, an Asset Management Inspector will carry out an inspection, take photographic evidence and seek approval from the Operations Director Asset Management for it to be replaced as a ‘one off’. • If a customer causes ‘wilful’ damage to a component then Adactus will carry out a repair and recharge the customer; they will not replace the component. • Since 2013, resources have been targeted at empty properties to install new components where required. This method ensures they are replaced with less disruption to customers and also supports the ‘void re-let standard’ where the aim is to present a desirable product and encourage sustainable tenancies. However, it is still early days therefore there is not enough evidence to suggest that these tenancies will last longer. b. Replacement Work • Most planned maintenance work is carried out by Adactus staff (DLO); kitchens, bathrooms, heating systems and boilers, and internal/external decoration. • Work that requires specialist skills for example, roofs and rooflines (facia and soffit), some external decoration, and replacement of windows is carried out by external contractors. These are considered as ‘high risk’ items as they involve working at heights in all weather conditions therefore Adactus reduces the risk by employing specialist contractors from an approved contractors list.
Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
• A significant number of components are replaced while properties are empty (void); this ensures they are replaced more efficiently and with less disruption to customers. • Components identified as needing a replacement following an inspection, or due to multiple repairs to the same part are replaced as a ‘one off’ and within a six month timescale. A spot check revealed this target was generally being met. • The target is to replace 450 kitchens and bathrooms in a year. For the past two years this target has been exceeded. • Records show the number of replacements completed between 1 April 2016 and 30 September 2016 (within 6 months) are: o 106 kitchens; 49 in void properties, 52 as per programme, and 5 as a ‘one off’. o 100 bathrooms (including 40 adapted bathrooms); 29 in void properties, 56 as per programme, and 15 as a ‘one off’. • The timescale to complete a kitchen or bathroom is five days. • DLO staff work between 8:00 am and 4:30pm. • The Group does not operate a scheme to rewards long standing customers who look after their components, or to encourage new customers. c. Approved contractor • Contractors go through a rigorous evaluation process to become an approved contractor; they are required to complete an application form and supply necessary supporting documents for example, details of management, supervision, labour, insurance, health & safety, DBS clearance, and up to date documents and certificates. This is validated on an annual basis. • Approved contractors are required to adhere to the Group’s Code of Conduct which requires them to observe their obligations under the law when providing their services. The standards set out for contractors are the same as those required of the Group’s own staff. • Customer satisfaction with a contractor is monitored on a monthly basis and if there are any issues, or a low satisfaction rate, then it will be investigated and if needed a different contractor will be appointed. At September 2016, the satisfaction level was high at 94.74%. d. Post work inspections • Not every bathroom/kitchen job is inspected due to time constraints however, random spot checks are done and work is generally followed up with a satisfaction survey telephone call which gives the customer a chance to give feedback on whether or not they are happy with the work. • The defect period (snagging) is twelve months which begins on completion of work. e. Exclusions from planned maintenance work • The Group’s policy prevents customers in rent arrears (except in sheltered and supported accommodation) from kitchen and bathroom planned maintenance work (not responsive repairs). Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
• Properties listed for planned work, (excluding voids, sheltered and supported schemes) are checked against each customer’s rent account to identify those in arrears; they will automatically be omitted from the programme. Customers are required to clear their arrears in full, or enter into a payment agreement and maintain it before any replacement is agreed. • A spot check revealed the policy for omitting tenants in arrears was not applied consistency where components were replaced in a ‘block’ for example, a whole row of houses. • The discretion to allow a customer in arrears a new ‘one off’ component is at Director level and is subject to conditions for example, the customer is vulnerable. 2. Quality and Cost of Components • The planned maintenance budget for 2016/17 is approximately £9.1 million. • Since December 2013, all planned maintenance materials (with the exception of decorating materials) are purchased from Jewson. Purchasing from a single supplier gives buying power which significantly reduces costs and enables quality products to be purchased at a discount price. In 2015, the total value of planned maintenance materials purchased through Jewson was approximately £1.5 million. • The Group installs quality products of an above average specification for example, a kitchen worktop is of 50mm thickness compared to previously 38mm; they come in standard sizes of 28mm, 38mm and 50mm. • Components are of a reputable brand for example, Moores Furniture Group for kitchens, Armitage bathroom suites, and Stelrad radiators. • The components are valued (using a ‘flat rate’ valuation) as; kitchens - £3,785, bathrooms £3,785, heating systems - £2,590, electric fire - £700, roofline - £815, and internal/external decoration - £500. 3. Choices a. Kitchens & Bathrooms • A range of choices was agreed in consultation with residents approximately seven/eight years ago. • All bathroom suites are standard white with an overhead shower, lever taps and a choice of white or cream wall tiles. • Customers are offered a choice of style and colour of door, worktop, floor covering, handles and wall tiles: o Door – pear, oak, apple, walnut. o Worktop – cosmic beige, lima surf, aticos gold surf, antique block walnut. o Floor covering – autumn beige, walnut black, Nordic grey, antique copper. o Handles – a choice of four different styles. o Wall tiles – white or cream. • However, it was noted during talks with the planning team that the style of kitchen tile (square) is dated and in some cases customers have requested for a more modern tile or have supplied their own tiles when their kitchen/ bathroom was replaced. Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
• Existing appliances owned by the customer such as a cooker or fridge will be included in the kitchen design and re-installed upon completion of the works. Customers have the option to supply a new appliance for example, a hob or cooker hood which will be factored into the design but the items must be available in the property before work starts. Integrated appliances such as a fridge or freezer are not permissible as installation is usually more difficult and more expensive and the customer may not wish to leave the appliance on ending their tenancy. • Void properties are completed as quickly as possible to reduce the time the property is empty therefore Adactus is not able to offer a choice or style of kitchen to prospective customers. It is replaced with the most popular choice with customers; natural oak units with a black worktop, white wall tiles, and beige floor. If a customer is allocated a property before work begins then they may be offered a choice of worktop, wall tiles and floor, but will not be offered a choice of kitchen units due to time constraints as the units have to be ordered. • If a customer requires more than the standard number of units provided then additional units may be supplied and fitted at the customer’s expense subject to size of the kitchen. • Customers are not offered an option to contribute towards the cost of an upgraded component of their choice (other than that offered by Adactus). • No requests have been received from customers asking permission to upgrade their components themselves. b. Windows • All single glazed timber windows due for renewal this year are in the process of being replaced with UPVC double glazed windows. • The work has been assigned to a specialist contractor after a tendering process. • The window replacement programme for 2016/17 consists of 104 properties. At 30 September 2016, the programme was above target with 97 completions. • A letter is sent out to all customers at the beginning of the year to notify them of the impending work and provides details of the contractor, their contact details, the company who will carry out an external condition survey of the windows (sub contractor) and also the planned maintenance team. It informs customers that the contractor will contact them directly to complete an external survey of the windows. • Customers are offered a choice of colour, style and opening of windows. • In some cases a door is also included as part of the window replacement programme. Customers are offered a choice of six different style of doors (four front doors choices and two for rear door) and a choice of colour; black, white, red or blue. c. • • •
Electric Heaters Electric heaters are fitted if a gas fire has been condemned by a Gas Engineer. Customers are offered a choice of style and colour of fire and surround where appropriate. The choices of electric fires was reduced from four to two about two years ago (due to popularity); now the two most popular choices of fire are offered.
Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
• A letter and choice sheet is posted to customers asking them to complete and return with their choice of fire and surround. Once the choices are received back at Adactus an appointment is made for the installation. The whole process usually takes about three weeks to complete. 4. Informing customers • The planned maintenance programme is communicated via the website with a breakdown of what work will take place in geographical locations. The works are listed by the type of component replacement; kitchen, bathroom, window, gas central heating system, and decoration followed by the addresses (street names and house numbers) in alphabetical order. However, information of roof or roofline work is not available. • Customers due a component replacement are also communicated to in writing to inform them of the impending work. The timing of letters vary for different types of planned work. • For improvements that require access to the inside of the property (kitchen and bathroom) customers generally receive two letters, one telephone call, and a home visit before work commences. The letters are generally good with an explanation of the survey and work to be carried out: o Letter one (pre-entry survey) gives seven days notice of a survey appointment date and time. o The Site Manager visits the property to carry out a survey to establish the details of the existing layout, offer style/colour choices, and to discuss any queries the customer may have. o Letter two gives two weeks notice and informs customers of the refurbishment date, length of time it will take to complete, daily start and finish times, guidance on how they can prepare for the work, the importance of checking identification badges, and details of whom they can contact to discuss any queries. o Notice for window replacement is slightly different, customers are communicated with by letter at the beginning of the year and informed they will be contacted directly be the contractor. 5. What are other housing associations doing? • Richmond Housing Association upgrades components within their properties before letting and offers cashback at the end of a fixed term tenancy if they have been looked after. • Irwell Valley rewards customers who pay their rent regularly and on time for 26 weeks a ‘diamond service’; they are offered a wider choice of bathroom, kitchen, door, window and fencing and entered into a weekly cash prize draw of £1,000 that is shared between five winners. • Southway Housing Association rewards their customers with a discount card that offers between 5 and 15% off goods in certain stores. Customers are also entered into a monthly cash prize draw and a lucky dip with prizes of a television, decorative room makeover and shopping vouchers to encourage and reward them to pay rent on time.
Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
• Sanctuary Housing Association rewards its customers with a cash prize draw of shopping vouchers for good behaviour and also a reward card that offers discounts in certain stores.
What we liked: • The planned maintenance programme is displayed on the website detailing which addresses will get what component replaced. • Annual property MOT assessments (CP13) to inform improvement programmes. • Photographic evidence of components at inspection. • Flexibility of the planned maintenance programme allows responsive ‘one off’ component replacements. • Timescales have been set for ‘one off’ components to be completed. • Components are generally replaced in date order as per programme. • Components replaced in empty (void) properties means less disruption to customers. • Approved contractors go through a rigorous evaluation process and are required to follow the Group’s Code of Conduct. • Component specifications used are of a high standard therefore value for money. • Customers are offered a range of style and choice of colours where appropriate. • Letters are informative and provide customers with a point of contact.
What concerned us? • The tile choice is dated and has not been reviewed for many years. • Inconsistency with excluding customers in arrears; if work is done as ‘block’ then customers in arrears could potentially get a new component whereas others will be excluded.
What else we can look at • • • • • • •
Contact centre scripts re planned maintenance. How many calls come in enquiring about planned maintenance and how are they handled. Customer satisfaction/dissatisfaction. Number of formal complaints re planned maintenance. How many customers request permission to change their components themselves for example, worktops. Adactus500 survey. Whether all properties with components at the end of their life cycle are getting inspected, or are any slipping through the net?
Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
Appendix Staff Interviews The following interviews were carried out with staff: Name Role Gary Heaton
Date Topics covered interviewed
Operations Director Asset Management
7/9/16
Operations Director Asset Management
6/10/16
Chris Tierney
Site Manager
4/10/16
Kitchens and bathroom replacements Choices Letters Exclusions – rent arrears
Anne Platt
Programme Co-ordinator
4/10/16
Kitchens and bathroom replacements Choices Letters Exclusions – rent arrears
Michelle Nuttall
Programme Co-ordinator
6/10/16
Electric heaters Choices Notification
Susan Rothwell
Planned Administration Manager
11/10/16
Window replacement Planned programme Exclusions
Mathew George
Shehnaz Akhtar
6/10/16
18/10/16
Planned Maintenance Components Choices Sourcing materials Contractors Planned Maintenance Kitchens and bathrooms Specifications Exclusions – rent arrears
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Internal Affairs for Adactus500 Scrutiny Panel
1. Spot check – CP13 Inspections What we wanted to check We wanted to know if the condition of components was being rated correctly on the CP13 following an inspection. What we looked at We ran a report from the database that showed 624 CP13 failures; we filtered it to show only kitchen and bathroom inspections. What we found CP13 failures were those components correctly identified as being in poor condition. Some gave a more detailed description for example, kitchen falling apart, doors hanging off with some missing.
2. Spot check - Updating records What we wanted to check We wanted to know if QL database was updated with the correct completion date following a component replacement. What we looked at From the planned maintenance programme we selected a sample of fifteen kitchen and bathroom components replaced between 1 April and 30 September 2016; each had a unique order number generated by QL. We checked these against QL database to determine if the orders had been updated with the correct completion date. What we found The database had been updated with the correct completion date for all fifteen components sampled.
3. Spot check – ‘One offs’ What we wanted to check We wanted to know if a ‘one off’ kitchen or bathroom was replaced in a timely manner (within a six month timescale) and in the order in which they were approved. What we looked at We requested a copy of the component replacement programme for 2016/17. We filtered data to show ‘one off’ replacement kitchens and bathrooms with a target completion date by 30
Shehnaz Akhtar
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Internal Affairs for Adactus500 Scrutiny Panel
September 2016 (there were eight in total). We accessed the component requests file to determine when the request was approved then cross referenced it with the completion date. What we found Generally one offs were being completed within target and in the order they were approved. However, in two cases the target for kitchen components had passed; one had been missed off the programme and a survey date has now been arranged, and the other was due to no access had already been scheduled for a replacement at the end of October 2016.
4. Spot check – Exclusions What we wanted to check We wanted to know if the policy to exclude customers in arrears (not sheltered or supported customers) was being applied consistently; staff interviewed said customers in arrears would be excluded from kitchen and bathroom replacement unless they had cleared their arrears, or had maintained a payment arrangement before a replacement is agreed. What we looked at We accessed the kitchen and bathroom replacement programme for 2016/17. The addresses of nine customers were highlighted to show they were in arrears; three had received a new component. We checked the corresponding rent accounts to determine if they were up to date at the time work was completed. What we found All three customers received a new component due to work being carried out as a ‘block’ replacement in a row of houses. This means customers in arrears could potentially get a new component.
Shehnaz Akhtar
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