From cost to value: Why retrofit procurement needs a reset

In the UK, the urgency of decarbonising housing stock has never been clearer. Government funding streams, from the Social Housing Decarbonisation Fund to ECO4, are placing retrofit firmly on the agenda for housing associations and local authorities. Yet despite the investment, too many projects are still being let on a lowest-price basis, undermining both quality and outcomes.

PAS 2035 sets out a robust framework for whole-dwelling retrofit, with staged improvement pathways and the Retrofit Coordinator role ensuring accountability. But when procurement frameworks and contracts are written to reward the cheapest capital cost, design teams are hamstrung. Essential elements like fabric-first sequencing, resident engagement, and digital data capture are stripped back or lost entirely.

The consequence is all too familiar: works that fail to meet performance targets, residents left frustrated, and housing assets that still face spiralling maintenance costs. What looks like ‘saving money’ at the procurement stage quickly turns into higher costs downstream.

There is a better way. Value in retrofit is not about the invoice figure; it is about lifetime energy savings, improved resident wellbeing, and the long-term resilience of housing assets. By embedding these measures of value into procurement, housing leaders can empower design teams to deliver the outcomes PAS 2035 was written to achieve.

Retrofit by Design exists to make this shift practical. Our role is to help housing associations and local authorities procure retrofit in a way that safeguards quality, ensures PAS 2035 compliance, and delivers measurable long-term impact.

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