Procurement Choices For Net Zero Carbon Retrofit Will Magnify Both Efficiencies And Inefficiencies

Friday, July 23, 2021

Net zero carbon retrofitting of social housing is a complex and multifaceted programme. This means that it carries significant risks – many of which are wrapped up in supply chains and procurement.

The supply chains that will deliver this vast programme still have to be formed and expanded to deliver skills, materials and equipment on the scale needed. Multiple organisations will be engaged during each phase of every retrofit programme.

The challenges for procurement include how to nurture these complex supply chains and give partners the confidence to invest in technology, recruitment and training at scale. There’s also a significant risk management task to ensure that net zero carbon retrofit programmes proceed without hitches and interruptions, and to enforce standards of sustainability and ethical working at every level.

Partnership or Micro-Management?

Owners and operators of social housing won’t have the resources to micro-manage every project and supplier. In this respect, finding a delivery partner with solid experience of ethical and efficient supply chain management could be one of the most important decisions you make.

Engaging specialist supply chain partners from the earliest stages of the programme will help to eliminate project risks and identify opportunities for efficiencies. Managing compliance and monitoring real-world energy performance are, in themselves, significant issues for the procurement process. This is a strong argument against piecemeal contracting or purchasing services in isolation – so there’s a single point of contact and accountability.

It seems inevitable that successful net zero carbon retrofit programmes will be delivered through partnerships, rather than through contractors acting in isolation. The approach to procurement must, therefore, be based on partnership development and long-term relationships.

Magnified Gains and Losses

A well-organised supply chain can map out a detailed programme for achieving net zero carbon performance. It will also ensure that plans are financially sustainable. In a programme involving hundreds or thousands of homes, significant multipliers come into play. The effects of each efficiency or inefficiency in the procurement process will be magnified accordingly.

There are multiple options for funding renewable energy technologies including, for example, outright ownership, leasing and shared ownership. A stable long-term partnership is the ideal base from which to address funding issues (such as who benefits from FiTs and RHIs) and apply for grants and third-party investment. It’s also the best way to ensure a successful outcome.

For more information on Osborne’s partnership approach visit our net zero carbon retrofit resource centre or contact Nick Davidge ([email protected]).