Hyde to slash contractors from 60 to 12 firms
Published: 10 August, 2012
LONDON: Housing association Hyde Group is planning to cut the number of preferred repair and maintenance contractors on its frameworks in a bid to make major savings.
Hyde plans to cut the specialists it uses from 60 to just a dozen on a new £500m programme of works. The move to pare down firms will save £50m over 10 years on its 48,000 home estate in London, the South East and East Midlands.
It is the second housing association to decide to work with fewer contrators on frameworks. In March, housing association Circle said that it would re-procure work worth £1.2bn and cut its contractors from 200 to 5 in a bid to save £120m.
The trend is a blow to local specialist firms who thought the tide was turning in their favour following the high profile collapses of Connaught and Rok, which exposed the dangers of relying too heavily on one firm.
Hyde Group is due to issue a formal invitation to tender for its £500m work programme next Wednesday in the Official Journal of the European Union.
Bidders will be invited to an open day on 12 September with contracts expected to be awarded by the middle of 2013.