London landlord seeks up to 10 contractors for improvement works worth £1.4bn

Southern’s strategic objectives include contract rationalisation, flexibility, simplicity and versatility, the “creation of an integrated supply chain and standardised components” and the “maximisation of guarantees/warranties and component lifecycles”.

It has also set key performance indicators to measure delivery, such as resident satisfaction, achieving budget and defects at handover.

In a blog post announcing that the tender process would begin this month, Mij Rahman, director of capital investment at Southern, said the association’s strategy is to renew kitchens every 20 years, and bathrooms, windows and non-fire-rated doors every 30 years.

Mr Rahman said Southern’s merger with Optivo in late 2022 had meant the new entity had to address “inefficiencies” due to “the complexities of managing multiple systems and contractors”.

The new procurement process aims to remove duplication, reduce the number of contractors and align operational regions.

Karin Stockerl, executive director of assets and sustainability at Southern, said: “Our strategic principles for capital investment are designed to ensure that we spend our funding appropriately and proportionately, delivering significant levels of social value through our programmes.

“We’re committed to creating an integrated supply chain that maximises commercial incentives, financial savings, and consistent quality, all while maintaining a focus on resident satisfaction and safety.”

Ms Stockerl said the landlord designed the procurement to encourage more SMEs to get involved.

“By engaging SMEs, we aim to foster a collaborative environment that encourages the sharing of knowledge and the development of innovative solutions. This approach not only supports local economies but also ensures that we can deliver value for money and high-quality outcomes for our residents,” she said.

Ms Stockerl added that Southern also focused on the need for specialist knowledge and skills.

“By leveraging the expertise of specialised service providers, we can ensure that our projects meet the highest standards of quality and safety,” she explained.

“This focus on specialism also allows us to address specific needs and challenges effectively, ensuring that our residents benefit from well-maintained and safe homes.”

Southern’s surplus dropped by £37m in 2023-24 due to delays in the completion of schemes and higher costs.

Paul Hackett, chief executive of Southern, said in a statement at the time that the results were affected by “a difficult contractor market” that delayed the completion of projects.