❓ A WA parliamentary question scrutinizes the Minister for Housing regarding a new contracting model for public housing repairs and maintenance, focusing on service levels, performance indicators, cost savings, and employment outcomes. The Minister acknowledges teething problems but defends the model's long-term benefits.
AnsweredQoN 3722Legislative Assembly
QuestionView source ↗
I refer to the Minister’s media statement of 6 June 2010 concerning new contracting model for repairs and maintenance on public housing in Western Australia and the awarding of head contracts to three major groups, and ask:
(a) is the Minister satisfied with the current level of service for repairs and maintenance being offered by the three contractors;
(b) is the Minister aware that Department of Housing staff are referring to the new model as a debacle;
(c) were specific performance indicators included in each of the contracts with the three groups; and
(i) if not, why not;
(ii) if yes, what are these specific performance indicators;
(iii) if yes, are the contractors meeting these performance indicators; and
(A) if not, why not; and
(B) if not, what action has the Minister taken to address any failure to meet these performance indicators;
(d) does the Minister still guarantee that the new model will deliver cost savings of more than $20 million;
(e) is it true that under a new payment schedule, sub-contractors are now being paid a rate per job rather than per hour;
(f) what percentage of work undertaken since the commencement of the new model has provided local employment;
(g) what has been the increase in Indigenous employment outcomes since the commencement of the new model;
(h) what percentage of work undertaken since the commencement of the new model has used goods and materials which are sourced locally;
(i) what percentage of smoke alarms in Department of Housing accommodation remain unchecked as at 1 August 2010; and
(j) what percentage of smoke alarms in Department of Housing accommodation remain un-repaired or un-replaced as at 1 August 2010?
(a) is the Minister satisfied with the current level of service for repairs and maintenance being offered by the three contractors;
(b) is the Minister aware that Department of Housing staff are referring to the new model as a debacle;
(c) were specific performance indicators included in each of the contracts with the three groups; and
(i) if not, why not;
(ii) if yes, what are these specific performance indicators;
(iii) if yes, are the contractors meeting these performance indicators; and
(A) if not, why not; and
(B) if not, what action has the Minister taken to address any failure to meet these performance indicators;
(d) does the Minister still guarantee that the new model will deliver cost savings of more than $20 million;
(e) is it true that under a new payment schedule, sub-contractors are now being paid a rate per job rather than per hour;
(f) what percentage of work undertaken since the commencement of the new model has provided local employment;
(g) what has been the increase in Indigenous employment outcomes since the commencement of the new model;
(h) what percentage of work undertaken since the commencement of the new model has used goods and materials which are sourced locally;
(i) what percentage of smoke alarms in Department of Housing accommodation remain unchecked as at 1 August 2010; and
(j) what percentage of smoke alarms in Department of Housing accommodation remain un-repaired or un-replaced as at 1 August 2010?
AnswerView source ↗
Answered
14 September 2010
Responded by
Minister for Housing
Response time
34 days
The Department of Housing advises:
(a) As the Member is aware, there has been teething problems with the implementation of the new head contractor model. The Minister is aware that once this new model is given time to transition it will save the taxpayers of WA $20million a year.
(b) Department of Housing staff are working hard to overcome challenges as they arise during this transition period. Departmental staff are committed to ensure the impact of the new maintenance contract model to public housing tenants is minimal.
(c) Yes. The Department must ensure efficiency and effectiveness in terms of delivering housing outcomes for State Government, including quality of workmanship, timeliness of work completion and quality of service. The Department has developed a Contract Management Framework (CMF) to aid in the management of contractor performance under the new maintenance model. The CMF is a working document and contains five sections:
1) Governance
2) Contract Administration
3) Contract Management Plan;
4) Contract Templates and Forms; and
5) Department Risk Assessment Framework
The Contract Management Plan section of the CMF contains Key Performance indicators. The Head Contractors are also required to enter into a Service Level Agreement with the Department which will form part of the Contract Management Plan. The purpose of the Service Level agreement is to formalise an arrangement between the Head Contractor and the Department to deliver services, at specific levels of support, and at an agreed-upon cost.
(i) Not applicable
(ii) The specific Key Performance indicators as outlined in the Contract Management Plan are:
1) 100% of job orders completed on time for Emergency works- 3hours
2) 100% of job orders completed on time for Priority works - 48 hours
3) 100% of job orders completed on time for Routine works - 14calendar days
4) 100% of job orders completed on time for Major works - 28 calendar days
5) 100% of agreed completion time for vacant premises to deliver a Corporate Target of 7 days Average for the State
6) 100% Contractor availability and Completion of After Hours Emergency Maintenance necessary works
7) Appointments made with Tenants as agreed in the Service Level Agreement
8) Tenant sign off of works completed as agreed in the Service Level
(iii) As the maintenance system is in a transitional period, Key Performance Indicators are not yet being measured. Once the transitional period is over the Key Performance indicators will be implemented and monitored very closely.
(A) The new Head Contractor Model commenced on 1 July 2010. In recognition of the enormity of the change the Department will start measuring and implementing the Key Performance Indicators in the Service Level Agreements from 1 October 2010. This ensures the Contractors have sufficient time to work with the Contract, establish systems and manage the transition.
The Department in this new model also has the provision to withhold up to 7% of the monthly paid invoices as liquidated damages where the Key Performance Indicators are not being achieved against agreed targets.
(B) Not applicable
(d)The new maintenance procurement model will improve efficiencies and is expected to provide savings to the Department's maintenance function. The objectives of the new maintenance model are:
a) Improved 'value for money' procurement,
b) Improved management of contract obligations; and
c) Improved quality in service delivery.
The tender process for the Head Contractor Model enabled the Department to secure very competitive rates for its responsive maintenance program. This represents significant cost savings over the life of the contracts.
In addition, there will be significant administrative costs savings. The previous model involved the administration and management of over 300 contractors, in 81 separate locations involving 705 individual contracts. This administration is being consolidated into the management of 3 major contractors.
(e) These contracts are based on a schedule of rate (item includes materials and labour) The sub-contractors undertaking housing maintenance for the Department are paid in accordance with the Schedule of Rates for each trade/work category provided to by the Head Contractor. The Department's payment schedule to the Head Contractor is also based on the Schedule of Rate. Under the old maintenance model, the same Schedule of Rate payment arrangement applied.
(f) The level of local employment provided previously has remained unchanged with the change to the Head Contractor model.
(g) In this very early stage of the contract the Department has not yet collated information from the Head contractors. All the three Head Contractors, however, have an Indigenous Employment Strategy which is currently being implemented across the regions.
(h) There has been no change in the percentage of locally sourced goods and materials under the new Head Contractor model. The Head Contractors are not purchasing any goods or materials. The local sub contractors continue to procure goods and materials as before.
(i)-(j) The Department of Housing checks smoke alarms on a daily basis when conducting property visits.
Any faulty equipment identified or reported to the Department is attended to within 48 hrs as per Departmental policy.
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(a) As the Member is aware, there has been teething problems with the implementation of the new head contractor model. The Minister is aware that once this new model is given time to transition it will save the taxpayers of WA $20million a year.
(b) Department of Housing staff are working hard to overcome challenges as they arise during this transition period. Departmental staff are committed to ensure the impact of the new maintenance contract model to public housing tenants is minimal.
(c) Yes. The Department must ensure efficiency and effectiveness in terms of delivering housing outcomes for State Government, including quality of workmanship, timeliness of work completion and quality of service. The Department has developed a Contract Management Framework (CMF) to aid in the management of contractor performance under the new maintenance model. The CMF is a working document and contains five sections:
1) Governance
2) Contract Administration
3) Contract Management Plan;
4) Contract Templates and Forms; and
5) Department Risk Assessment Framework
The Contract Management Plan section of the CMF contains Key Performance indicators. The Head Contractors are also required to enter into a Service Level Agreement with the Department which will form part of the Contract Management Plan. The purpose of the Service Level agreement is to formalise an arrangement between the Head Contractor and the Department to deliver services, at specific levels of support, and at an agreed-upon cost.
(i) Not applicable
(ii) The specific Key Performance indicators as outlined in the Contract Management Plan are:
1) 100% of job orders completed on time for Emergency works- 3hours
2) 100% of job orders completed on time for Priority works - 48 hours
3) 100% of job orders completed on time for Routine works - 14calendar days
4) 100% of job orders completed on time for Major works - 28 calendar days
5) 100% of agreed completion time for vacant premises to deliver a Corporate Target of 7 days Average for the State
6) 100% Contractor availability and Completion of After Hours Emergency Maintenance necessary works
7) Appointments made with Tenants as agreed in the Service Level Agreement
8) Tenant sign off of works completed as agreed in the Service Level
(iii) As the maintenance system is in a transitional period, Key Performance Indicators are not yet being measured. Once the transitional period is over the Key Performance indicators will be implemented and monitored very closely.
(A) The new Head Contractor Model commenced on 1 July 2010. In recognition of the enormity of the change the Department will start measuring and implementing the Key Performance Indicators in the Service Level Agreements from 1 October 2010. This ensures the Contractors have sufficient time to work with the Contract, establish systems and manage the transition.
The Department in this new model also has the provision to withhold up to 7% of the monthly paid invoices as liquidated damages where the Key Performance Indicators are not being achieved against agreed targets.
(B) Not applicable
(d)The new maintenance procurement model will improve efficiencies and is expected to provide savings to the Department's maintenance function. The objectives of the new maintenance model are:
a) Improved 'value for money' procurement,
b) Improved management of contract obligations; and
c) Improved quality in service delivery.
The tender process for the Head Contractor Model enabled the Department to secure very competitive rates for its responsive maintenance program. This represents significant cost savings over the life of the contracts.
In addition, there will be significant administrative costs savings. The previous model involved the administration and management of over 300 contractors, in 81 separate locations involving 705 individual contracts. This administration is being consolidated into the management of 3 major contractors.
(e) These contracts are based on a schedule of rate (item includes materials and labour) The sub-contractors undertaking housing maintenance for the Department are paid in accordance with the Schedule of Rates for each trade/work category provided to by the Head Contractor. The Department's payment schedule to the Head Contractor is also based on the Schedule of Rate. Under the old maintenance model, the same Schedule of Rate payment arrangement applied.
(f) The level of local employment provided previously has remained unchanged with the change to the Head Contractor model.
(g) In this very early stage of the contract the Department has not yet collated information from the Head contractors. All the three Head Contractors, however, have an Indigenous Employment Strategy which is currently being implemented across the regions.
(h) There has been no change in the percentage of locally sourced goods and materials under the new Head Contractor model. The Head Contractors are not purchasing any goods or materials. The local sub contractors continue to procure goods and materials as before.
(i)-(j) The Department of Housing checks smoke alarms on a daily basis when conducting property visits.
Any faulty equipment identified or reported to the Department is attended to within 48 hrs as per Departmental policy.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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