St Quintin Park, North Kensington, London Forging new working relationships between client and suppliers is the aim of the partnering agreement between William Sutton Trust and Durkan for the refurbishment of seven apartment blocks. We visited the site to find out how the relationship is working out for both sides.
At first glance the modernisation of the St Quintin Park estate in North Kensington, London, appears unexceptional. Seven near identical blocks of apartments are being refurbished by contractor Durkan, and there's not a groundbreaking building technique in sight.

What is innovative is the relationship between Durkan and its client, housing association the William Sutton Trust. Both were keen to develop a non-adversarial relationship and they decided that the repetitive nature of St Quintin's modernisation provided an opportunity to embark on a long-term partnership.

Durkan, William Sutton Trust and project funder the Royal Borough of Kensington and Chelsea, signed a partnering charter a year ago. In it they each undertook to work together towards mutually beneficial goals including stabilising capital costs, reducing defects and improving customer satisfaction.

The refurbishment of the blocks at St Quintin is extensive. Internal walls are being replaced and apartments reconfigured according to tenants' requirements. Plaster is being taken off external walls and ceilings and new plasterboard fitted.

The floor is being replaced and the damp course checked. Bathrooms and kitchens are being refitted and doors replaced.

The windows, which were replaced around four years ago, are being checked for faults, missing keys and are being lubricated.

The contractor was a natural choice of partner to carry out the work for William Sutton Trust as it had already proved itself during earlier refurbishment on the estate.

"We have worked with Durkan for 13 years and we have had no confrontation with it in that time - everything has been amicable," says Clive Baldwin, head of building and technical at the HA.

One early task was creating a strategic group to oversee the modernisation, made up of three staff from Durkan, three from the Trust, and one from Kensington and Chelsea. An independent quantity surveyor also sits on the panel.

"The QS assures us that we get the best value and they can look through all the books to ensure that the costings are correct," says Baldwin. Contractor and client found that by pooling resources they were able to allocate consultants more efficiently and avoid job duplication.

"In a traditional contract the posts of building surveyor, structural engineer and planning supervisor would work for William Sutton Trust. In the partnership it made sense for them to work for Durkan because they liaised closely with the contractor on design and architecture," says Baldwin.

It was a culture shock at first, says Baldwin, because those affected weren't sure which company they should be reporting problems to. Workshops explaining the partnership helped to overcome such issues.

"You start developing a trust, which means that fewer supervisors are needed. There is no clerk of works and previously we would have put aside 1% of the contract value to employ one. We weren't in it just to make savings but there are lots of benefits that lead to savings." A guaranteed maximum price is set for the contract. If final costs are lower savings will be distributed between contractor and client.

"Originally Durkan suggested we split any savings 70:30 - with them getting the 30. I was concerned that there wasn't enough incentive for them to look at ways of doing things more effectively," says Baldwin. Now the figure is 50:50.

This philosophy carries all the way down the supply line, with an independent observer reimbursing suppliers accordingly for savings made.

A key benefit for the contractor is that there is no retention of payment by the Trust - freeing up between 2% and 5% of the contract value.

"Payment is made and this is passed down to subcontractors and suppliers, which give us discounts for being paid on time. We reckon these discounts will save us 0.5-1% of the contract price," says Baldwin.

As the contractor has been fully involved in the project as a partner from the start, it has been able to commit itself to firm handover dates, which in turn helps the Trust to minimise voids and reduce lost rental income.

"In the past we wouldn't start the letting process until we had the property. It would then take weeks or months to fully let it," says Baldwin. It also suits the council to place tenants early.

"By allocating earlier, tenants will have more of a choice of colour in their homes and could potentially choose their kitchens and tiles," says Baldwin.

The Trust wants to extend its partnership scheme down the supply chain. Baldwin says that with long-term contracts in place suppliers will benefit from bulk buying and the HA will benefit from a better service in terms of getting parts on time and reducing defects. The Trust is so keen on the concept of partnering that its internal auditor is drawing up a general partnering policy.

"We are looking for partnering champions within the Trust in finance, housing management and supply," says Baldwin.

"If suppliers are going to work with us on more than one project then partnering is worth it, because over time partners will learn how to work together to improve products and standards."

Lessons learned

  • Contractors and clients can pool resources...
  • but to make it work, you have to change culture and engender trust; and
  • a financial incentive has to be a real incentive.