Building profits with East Dorset Housing Association

LEFT TO RIGHT David Little, Expense Reduction Analyst consultant and Steve Ankers of EDHA

EDHA has achieved great progress over the past 10 years via a recurring theme of Partnership. The association has entered into several such arrangements, including Financial Partnership Agreements, to keep expenditure down, so as to be well placed to work with the Government’s lower rent regime.

The association has an annual turnover of £10 million, with properties and maintenance arrangements across Dorset and southern Hampshire. An admirable innovation has been to lead a partnership with three local authorities, to pioneer the development of low energy eco-friendly homes using offsite fabrication methods. This scheme became a Housing Forum Demonstration Project with an additional benefit to one family being the significant reduction in allergic reactions – they have been able to resume ‘normal’ lives after years of breathing problems.

Expense Reduction Analysts have successfully completed a number of projects for EDHA, which together have created savings of well over £60,000 in the first year.

These profit improvements will continue to be of benefit in future years. The Association’s Property Maintenance Department maintains over 6,000 homes for six housing providers and recognizes the need to control its overheads and in particular the expenditure of materials. Expense Reduction Analysts Consultant David Little began by reviewing building materials. Gathering data was a long process for David, owing to the high number of invoices – for job control purposes the Depot Manager needs separate invoices for every job – but Expense Reduction Analysts developed a unique method of analysing the range of complex building products and voluminous data. The end result was a series of one-page charts which summarised heaps of dog-eared invoices.

The depot’s stocks were divided into 3 areas:

• Building

• Plumbing

• Electrical

EDHA required simplified, consistent purchasing for the depot – and also for tradesmen on site who needed unexpected items with minimum disruption to their jobs. Thus supply arrangements were needed at several local outlets. Existing and local builders merchants, plumbing and electrical centres were investigated. Expense Reduction Analysts’ recommendations were implemented and detailed audits of subsequent invoices proved the authenticity of savings – and Expense Reduction Analysts’ fees! Steve Ankers, EDHA’s Corporate Services Manager, is very grateful for Expense Reduction Analysts’ achievements – which also assist meeting best value targets. Minimal input was needed from the association’s staff, so avoiding disruption to core business. Steve commented, “We recommend Expense Reduction Analysts’ service, particularly because we could not have invested the extensive resources necessary to create these savings, or to audit them. Expense Reduction Analysts specialise in knowing where to look for savings and what pricing levels are available from suppliers. Yes, Expense Reduction Analysts have proved to be another successful partner!”