£1 MILLION CASHBACK FOR LHC
CONSORTIUM MEMBERS
23rd October 2012

Members of procurement consortium LHC have received rebates as part of the not-for-profit organisation’s annual revenue sharing scheme, following a top year which saw LHC save the public sector more than £19m.
 
The consortium, which provides independent technical advice and construction procurement framework arrangements for public sector buildings, has worked with local authorities, social landlords and schools and other public sector bodies across the UK to launch 414 separate projects - saving an estimated £19million in man hours.
 
More than £1million will be distributed to LHC framework arrangement users who have chosen to become members of the consortium, in proportion to the value of their projects with LHC throughout the year, with organisations receiving up to £300,000. This rebate is on top of the other savings achieved through using framework arrangements.
 
John Skivington, Director of LHC, said: “LHC generates an income through a levy collected from LHC appointed companies as a percentage of all work undertaken on LHC framework projects. As we are not-for-profit, any surplus that remains after LHC’s operational costs have been deducted, is distributed to LHC members each year. It is a great way to say ‘thank you’ to members for using our procurement frameworks by giving them a small windfall to reinvest in their areas.”
 
Members due to benefit this year include:
 
• Buckinghamshire County Council is set to receive a rebate of around £150,000. Projects undertaken with LHC during the year have included replacing aluminium windows and roofs at a number of schools across Buckinghamshire, helping to deliver energy savings as well as improving the working environment and the appearance of schools.

• Lambeth Living, which manages 34,000 properties on behalf of the London Borough of Lambeth , will take home a rebate of more than £300,000 following a number of projects undertaken with LHC, including window, roof and door renewals to properties in the borough.

• Metropolitan will receive just under £200,000 as it continues to work with LHC to complete its Decent Homes programme.
 
Skivington added: “Many public sector organisations use our procurement framework arrangements for their refurbishment, maintenance and construction works for schools, social housing and other community buildings. Not all chose to become members, but as membership is free, these organisations could be missing out on sharing any LHC surplus.
 
“Our frameworks are designed with the aim of improving efficiency and simplifying the tender process to result in contracts that comply with UK and EU procurement rules and regulations.  In the last year, our frameworks were used to secure 414 separate projects for public sector bodies around the UK, saving an estimated 331,420 man hours by avoiding duplicated work efforts. The equivalent cost of the saved man hours for our public sector clients is more than £19m.”
 
LHC offers dedicated framework arrangements for key building refurbishment products and services, including windows and doors, roofing, building insulation and other energy efficiency measures, kitchen and bathroom replacements as well as frameworks for whole house refurbishment and school maintenance and extensions.
 
www.lhc.gov.uk