Roundtable: Future of commercial models

The Echelon Group welcomed 18 contractors for a virtual roundtable on commercial models on Monday 13 May.

The session started with an exploration of the good, the bad and the ugly of current practice, building on the responses of a Slido poll which was issued in advance of the session to gauge the views of participants on current commercial models and behaviours.

It covered questions around preferred models for repairs, voids and planned maintenance as well as asking “Would you change the rankings of your preferred model for repairs if the risk on volume of repairs was capped within the commercial model?” and “In your opinion, who should carry the commercial risk on repairs demand – clients, contractors or both?”

Attendees discussed the changes that have happened within the operating environment and landscape in recent years and the subsequent change in the use of commercial models. It was clear from the survey and discussions that there is a very mixed approach to commercial models being adopted by clients at the present time.

The Slido results placed the NHF’s Schedule of Rates as the current highest ranked model favoured for repairs and voids contracts, compared to a preference for a Price Per Property model pre-Covid.

There was also much discussion around the pros and cons of various models, the associated risks and a lack of meaningful data often being provided with tenders.

But attendees were mindful of the challenges and pressures faced by clients in the current regulatory environment.

The virtual event will be followed by a face-to-face roundtable taking place in June, and Echelon will be issuing a report on the outcomes later in the year.