Understanding Quality Assurance
At Clear Safety, we understand Quality Assurance (QA) regimes are an additional cost that social landlords often struggle to demonstrate as measurable value for money.
Anecdotally, most agree on the general principle that overseeing a contractor or a Direct Labour Organisation (DLO) is a good idea. There is broad agreement it can raise standards, offer reassurance that the level of compliance being reported can be trusted, and confirm that the resources being deployed are sufficient.
These are all useful tools for a property management or compliance team to have, but with budgets under extreme pressure and increasing pressures from diversifying into energy consumption and the changing legislative environment, which is placing more responsibility on landlords, where do QA regimes sit in terms of importance?
Our Approach
At Clear Safety we have always tried to understand all the pressures on departmental heads, including those of budgeting and financial accountability. So, how have we tried to help in this area?
With some of our key clients, we provide a works approval service that sits alongside our QA inspection regimes. The basic proposal is that where works are identified as being required to maintain either compliance or functionality, we assess the necessity for the works to go ahead from an entirely financially neutral point of view, and furthermore, if those works are chargeable or should be completed under existing contractual obligations. Where they are agreed as extra to contract, financial controls are in place to ensure any works are either quoted reasonably or completed accurately to pre-existing cost codes, often known as SOR codes.
The effect this has is that many works claimed as requiring to go ahead can be minimised—perhaps repaired instead of replaced. Where works do go ahead, there is a concise audit trail of exactly why the works were required and confirmation they were completed to standard.
This provides demonstrative savings to clients, often in excess of the cost of the QA regime, and further delivers a process to financial controllers that satisfies even the highest financial audit standards. Thus, providing documented evidence to present to financial controllers for budget setting and justification.
Examples of Savings
Working collaboratively with clients and contractors, Clear Safety uses a mixture of technical expertise, Quality Assurance programmes, and our management system for tracking/evidencing works additional to contract tasks, providing an evidenced audit trail for each monthly valuation, which we approve before requesting release of payment. Clients therefore benefit from immediate, correct technical advice to control contractors.
Case studies below relate to our services for Notting Hill Genesis (NHG). It should be noted, all figures presented here are extracted from our live reporting system, which all NHG managers have access to and can interrogate at any time. Everything noted below is fully evidenced for financial audit and does not contain any management filtering, manipulation, or estimating.
Management of EICR Programme
An EICR programme that covers 60,000 properties, high, medium, and low-rise blocks, estates, and street properties, spread across Greater London and the Southeast. We provide advice/support around application of legislation and contractual obligations of contractors. We support the landlord with issues requiring a technical opinion, including challenging contractors who claim certain chargeable tasks should be completed, also ensuring all activities are proportionate/reasonable to risks they represent.
Savings
Clear Safety provides the administration for approvals process, which saves the client having dedicated members of staff to administer this.
In total, we estimate the savings in employment to be: one electrical surveyor and an additional member of administration staff.
Over and above the service cost, the contractors identify additional works for which they require additional payment. Clear Safety audited the 196 extra contract works applications, with a value of £207,147.10, resulting in savings of £43,031.72 (21%).
To date, we have saved a total of £43,031.72 against our own chargeable fees of £157,300 over the period (11 months of our standard fee). Therefore, an aggregated cost of our inspection regime, technical advice and management of contractors could be described as £114,268.28 (excluding NHG labour savings).
Uniquely to the EICR programme we can also demonstrate ongoing future savings. Prior to our involvement in the regime, we could evidence that the average cost of completing the certification process to each property was £160.00. During 2021 this cost reduced to £139.00. From April 2022 this has further reduced to £133.00. These savings were achieved from advice given to the client by Clear Safety around basic costs and contractor use of SOR codes. This advice successfully reduced the client’s overall average cost per property.
Cost Reduction Table
Providing this oversight is producing an annual saving of £270k above and beyond the £43,031.72.
Beyond EICRs
Clear Safety leads on the development of policies and procedures governing door & gate entry, powered gate access, and CCTV.
Over and above the service cost, the contractors identify additional works for which they require additional payment. Clear Safety audited the 759 extra contract works applications, with a value of £1,024,049.09, resulting in savings of £167,335.47 (16%).
To date, we have saved a total of £167,335.47 against our own chargeable fees of £13,500.00 over the period. Therefore, the aggregated cost of our inspection regime, technical advice and management of contractors could be described as a saving of £153,835.47.
Overall Benefit
Our involvement in the M&E Quality Assurance process ensured:
- More accurate compliance and asset data
- Better contractor and client relationships
- Accurate and speedy monthly valuations and payments process
- An entirely open, evidenced and integrable financial record
- Overall significant savings
Partnering with Clear Safety means achieving compliance, controlling costs, and building confidence in every decision.
