Joint Housing Association and Local Authority Retrofit: Delivering £20m Contractor Procurement
Joint Housing Association and Local Authority Retrofit: Delivering £20m Contractor Procurement.
In 2022, Cyd Innovation was appointed to lead a landmark local Housing Association & Local Authority retrofit and social value joint procurement exercise. The brief was to undertake compliant procurement of a principal contractor to deliver whole house energy efficiency retrofit works across North Wales.
The contract, valued at £20million, represented a strategic collaboration to accelerate decarbonisation across a combined housing stock of over 13,000 homes. Including the full range of fabric insulation and renewable energy efficiency upgrades. All required to get each property to the highest possible EPC rating and therefore, energy efficiency.
The procurement was structured to reflect the urgency of the Welsh Government’s net zero ambitions for social housing. The scoring matrix balanced quality (40%), price (40%), and social value (20%). This approach ensured that the appointed contractor not only demonstrated technical competence and cost efficiency but a robust commitment to community impact.
Cyd Innovation’s role encompassed the full lifecycle of the procurement process. This included writing the full set of tender documents including tender specification that was aligned with PAS2035 standards, coordinating stakeholder engagement, and managing the evaluation process. The specification led by Founder and Director, Steven Reynolds set out rigorous standards for design. In addition to installation and maintenance of retrofit measures. Results had a strong emphasis on safety, resident engagement, customer service, and performance management.
The team embedded social value throughout the process. The contractor demonstrated how they would deliver tangible benefits to the local economy and community, including employment opportunities, training placements, and circular economy initiatives. Cyd Innovation developed a detailed social value specification that outlined expectations for local supply chain engagement, waste reduction, and community investment.
Social Value Delivery: Delivering Last Impact
Following the successful appointment of the contractor, Cyd Innovation transitioned into a monitoring role, providing independent social value audits to ensure delivery against commitments. This included validating evidence of local employment, training outcomes, and supply chain spend. The audits were designed to reduce duplication and reporting burdens for the contractor. This ensured transparency and accountability for both client organisations. The social value plan became a contractual document at contract award. The contractor was subject to monthly reporting alongside all other project KPIs. The client also conducted a quarterly audit to stay on top of social value performance throughout the project. Thereby maximising impact. Over £5million in social value return on investment was achieved.
The client retained responsibility for contract management, while Cyd Innovation’s ongoing involvement ensured that social value remained a central pillar of the delivery phase. This collaborative model allowed each organisation to maintain its governance standards while benefiting from shared expertise and streamlined oversight.
The project has since been recognised as a best-practice example of joint procurement in the retrofit sector. It demonstrated how strategic collaboration, clear specification, and robust auditing can deliver high-quality retrofit outcomes while maximising community benefit. Cyd Innovation’s approach has since been replicated in other schemes. Such include those funded by the Welsh Government and SHDF, reinforcing its reputation as a leader in local authority retrofit, alongside retrofit procurement and social value management
Lessons Learned From Join Procurement and Housing Association & Local Authority Retrofit.
- Joint procurement enhances value
Coordinating procurement between a housing association and local authority enabled economies of scale, reduced duplication, and increased market interest. It also fostered shared learning and alignment on strategic goals
- Balanced scoring drives holistic outcomes
The 40/40/20 split between quality, price, and social value ensured that the winning bid was not only cost-effective but also capable of delivering long-term community benefits and high technical standards. Retrofit can be technical and expensive. The bidders completed detailed schedules of rates, which provided sufficient granularity to help the client’s project team understand the makeup of each bidder’s pricing. This clarity enabled the team to accurately forecast the total project cost before awarding contracts. The client held the winning bidder to the pricing they submitted.
It was easy to match valuations and invoices back to the submitted pricing schedule. The specification provided sufficient expectations on the contractor for how to engage with residents, how to operate open sites, and how to ensure efficient customer orientated handover processes that were defect free. The overall process considered the various needs of each project stakeholder and effectively managed them in process that was as simple as possible. From launch of the tender process to contract award was within three months.
- Early social value integration is critical
Embedding social value requirements within the procurement process and making it a formal contractual requirement and key performance indicator massively increases the likelihood of delivery success. Setting clear expectations allows bidders to plan meaningful and costed actions and ensured accountability throughout delivery.
- Independent auditing strengthens outcomes
Cyd Innovation’s role in auditing social value delivery provided an impartial mechanism for tracking progress, reducing the burden on client teams and enhancing transparency. (Examples of what was measured, any reinforcing stats??)
- Playing on all parties’ strengths.
Separating contract management (client-led) from social value monitoring (Cyd Innovation-led) allowed each party to focus on their strengths. This encouraged efficiency and reduced risk. Optimising successful delivery of each stage across the project lifecycle.
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