5 February 2013
The Institute of Education (IoE) has seen costs on its cleaning services contract reduced by 13% - even after workers received pay at the new London Living Wage (LLW).
IoE's new contract, awarded following a further competition under LUPC's new framework agreement for Cleaning and Security Services, uses the new productivity technique developed for LUPC Members by IoE's Head of Estates and Facilities Anthony Tyrell.
"We decided to take an innovative, zero-based costing approach to the Cleaning agreement by not disclosing staffing or TUPE information to bidders” said Anthony. “So, unlike the original framework, this one was productivity-led and got bidders to think about their overheads and fixed costs for the duration of the framework.
“At the Institute, we’ve committed to London Living Wage for staff within our new contract, yet are still able to make savings of 13% on labour charges. Members would have the same opportunities at mini-competition stage to squeeze this sort of value from suppliers.”
Birkbeck has also awarded a new contract under the LUPC framework. A collaborative contract involving the Royal College of Music, Royal College of Art and Heythrop College, and another contract for London School of Hygiene and Tropical Medicine, are currently out to tender.
“For the sector, this agreement could have profound benefits for increasing efficiency, encouraging collaboration and challenging performance” said Anthony. “It’s quite exciting!”
Last year our Members spent £10 million under the previous LUPC framework agreement.
For full information, visit GeM or contact Clemmie Smith, LUPC Senior Contracts Manager, 020 7863 1697.