Asset Management Webinar Recap with Seddon
On Wednesday 7th December the Northern Housing Consortium held it’s annual Asset Management Webinar in collaboration with Campbell Tickell.
The session was designed to offer an opportunity for reflection on a challenging year and a look ahead to 2023 and the much-discussed ‘perfect storm’ facing housing providers; stock that needs maintained and upgraded, a new Building Safety regime, net zero carbon targets, and persistent pressures to pursue new developments.
Opened by Chair, Jon Slade, Director at Campbell Tickell, the agenda brought together a series of industry stakeholders to explore these intertwining challenges and the weakened operating environment the sector finds itself in.
In this guest blog Nicola Hodkinson, Owner and Director at Seddon, reflects on the themes she discussed as part of her involvement on the day.
Weathering the storm through industry collaboration
Author: Nicola Hodkinson – owner and director at Seddon
The Decent Homes Standard saw the formation of many strong relationships, with expertise shared between contractors, industry leaders, asset mangers and registered providers. With rumblings of a review of the Decent Homes Standard, as the industry tackles issues left over from COVID-19, rent controls and negative public perception of housing standards, as well as pressure to reach sustainability targets, it is critical to re-establish these valuable long-term partnerships.
The journey to decarbonisation
Pressure to meet Net Zero targets is mounting and the whole of the housing sector is feeling it. For asset managers, there is a fear of going in the wrong direction by choosing the incorrect technology to achieve decarbonisation targets or type of planned works. This has a direct impact on contractors, who more often than not come in after the design stage of a project, limiting the approach to decarbonation and heightening the risk of missing targets.
It is in this way that while new technology is certainly assisting plans for decarbonisation, we are also seeing it act as a barrier. Undoubtedly, whatever technology is chosen today most likely won’t be what is used in 10 years’ time or even less. Despite this, we still need to focus on taking steps towards making things better rather than solving everything with one action. The journey to decarbonisation is a continuous process which will take time to achieve. Any step forward for the homes, offices or buildings we deliver will add value and make improvements today.
A trusted contract partner can help bridge some of the decisions asset managers are faced with. Whether advising on a fabric first approach or installing technology such as heat pumps and Solar PV, contractors have the contacts and expertise to make the process easier. If both parties develop trust and commitment, the problems and gaps in the process of decarbonisation can be understood and resolved.
Creating quality by investing people
All too often, contractors are hesitant to employ a larger workforce because they see no pipeline of work, making it an expensive and risky exercise. This creates an over-reliance on agency or labour only employment, resulting in cutting corners when it comes to design and materials and reduced standards of the final build.
The visibility of a work pipeline is desperately missing in our sector, and something that has detrimental impacts to everyone involved. By selecting ad-hoc contractors, based only on cost, you are left with the risk of poor design, poor lead times and poor business practices. It is only asset managers that can change this.
Creating long-term strategic partnerships with contractors will create that all-important on-going pipeline of work, at the same time as mitigating challenges during projects. A partnership arrangement such as this, allows contractors to re-invest in their workforce – delivering high quality labour, design and sequencing. I have seen decades long relationships not only result in real value added to the end build but also improve skills and employment practices in the sector.
Giving contractors and their supply chain certainty in an uncertain market allows them to invest in employment and work towards addressing issues around mental illness that so seriously plague our industry. We are currently losing two construction colleagues a week, indicating the dire need for decisive action to improve this environment. Investment in long-term employment means that there will be less need to use agency or labour only employees, giving everyone far more certainty. Creating a better place to work means that employees can be treated better, and this is crucial to improving in this current climate.
Looking to the future
Ultimately, asset managers and contractors need to collaborate to provide stability our industry so desperately needs, particularly during these uncertain times. This will allow us to invest in people, skills and communities to deliver quality, sustainable homes and buildings that will last for generations. Long-term strategic partnerships are an essential part of the journey to Net Zero, which we all know by now is not a quick process, nor one in which corners can be cut. Industry collaboration has long been an issue in the construction sector, but it is now one that is impossible to ignore. Only by working together with a collective view of how we will reach future aims and expectations, will we have the force, stability and expertise to achieve them.
