Scottish Government
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Procurement savings

Housing associations can make savings by clubbing together to buy in bulk, according to an Investment Working Group.

The group was drawn from local authorities, housing associations, Royal Bank of Scotland, Homes for Scotland and the Scottish Government.

The report found good examples of collaborative working across Scotland from the Borders to the Highlands and from Renfrewshire to Fife.

  • River Clyde Homes saved 15 per cent on maintenance materials through bulk buying.
  • Fife Housing Association Alliance has saved five per cent on build costs whilst improving quality.

The Scottish Government has now commissioned a more detailed study of collaborative procurement by Scotland's social landlords.

Housing Minister Alex Neil said:

"Scotland's housing associations have a strong record of working together in the interests of their communities, and this report identifies new ways in which they can build on this.

"The Scottish Government expects all organisations that receive millions from the public purse to demonstrate a practical and focused approach to collaboration.

"In a period of financial restraint, it is vital that we identify ways to improve the efficiency of affordable housing provision."

Bill Banks, Depute Chief Executive with Kingdom Housing Association said

"We act as the lead developer for the Fife Alliance and collaborative working has delivered benefits in respect of streamlined processes and efficiencies.

"The future will present fresh challenges for all affordable housing providers and we hope the collaborative approach, adopted by the Alliance members, will allow us to address many of these challenges"

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