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Retrofit by DesignInsightJ/132 min read

Retrofit procurement: from lowest cost to best value

Retrofit funding is in place, yet many contracts are still let on lowest price. What that strips out of PAS 2035 delivery, and how procuring for value protects outcomes.

Too many retrofit projects are still let on a lowest-price basis, and it is undermining quality and outcomes just as the money has arrived. Funding streams from the Social Housing Decarbonisation Fund to ECO4 have put retrofit firmly on the agenda for housing associations and local authorities, and the need to decarbonise UK housing stock has never been clearer.

What lowest-price contracts strip out

PAS 2035 sets out a sound framework for whole-dwelling retrofit, with staged improvement pathways and a Retrofit Coordinator accountable for the work. When procurement frameworks and contracts reward the cheapest capital cost, design teams cannot apply it properly. The elements most often cut back or lost altogether are:

  • Fabric-first sequencing
  • Resident engagement
  • Digital data capture

The results are familiar. Works miss their performance targets, residents are left frustrated and the homes still face rising maintenance costs. The saving made at procurement turns into higher costs later on.

What looks like a saving at procurement quickly turns into higher costs downstream.

Procuring for value

Value in retrofit is measured over the life of the home: energy saved, residents’ wellbeing and how well the housing holds up over time. The invoice figure is only one part of it. Build these measures into procurement and design teams can deliver the outcomes PAS 2035 was written to achieve.

Retrofit by Design helps housing associations and local authorities procure retrofit in a way that protects quality, meets PAS 2035 and delivers measurable results over the long term.

Retrofit by Design

Design-led retrofit for occupied homes, from assessment to handover.

See Retrofit

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