1. Procuring development services - “make versus buy”
Accord now has a fully insourced construction programme management function. In addition to delivering proven value for
money, this insourced end-to-end solution gives significantly increased control over development delivery outcomes. The Group’s
construction and development function includes the following component teams:
n InDesign: Accord’s in-house architectural practice produces the design concepts for the Group’s entire development and
regeneration programme. InDesign is a well-established internal function of Accord and over its 9 years has delivered substantial
savings when compared to externally procured design and architecture services.
n Accord construction services: The construction services team is an insourced project management function. The construction
services team replaces the role of a typical contract management arrangement with a major developer. Insourcing this process
has enabled Accord to identify increased agility and efficiency in sub-contracting arrangements and has removed the element of
profit and overheads associated with an outsourced project management contract.
n LoCaL Homes: Accord’s low-carbon, timber frame homes have been produced in the Group’s Walsall-based plant for five years.
During this time LoCaL Homes has produced over 500 highly thermally efficient homes. These homes are specifically value
engineered to ensure an efficient housing product which delivers value for money for the Group and its customers.
n Regeneration: Accord’s well-established Regeneration team has a track record of providing development project management
services to the Group and its partners for many years. The Regeneration team delivers value-added service to each development
scheme from the point of land assembly through to completion and handover.
These four component teams have now worked in partnership on five developments in total, delivering efficiency against approved
budgets of around £2.2 million, savings of almost 10% against traditional developments. Against the backdrop of increasing
development costs and a shortage of labour availability in the construction sector this is a significant achievement. The table below
outlines how these successes have been delivered across the five entirely in sourced projects delivered to date.
Scheme
Budget (£m)
Forecast (£m)
Efficiency against budget (£m / %)
Hewell Road
£3.2
£2.9
£0.3
9.4%
Eastern Gateway Phase 3
£3.4
£3.1
£0.3
8.8%
Beechdale Phase 2
£9.5
£8.3
£1.2
12.6%
Beechdale Phase 1
£4.7
£4.5
£0.2
4.3%
Tile Hill apartments
£1.7
£1.5
£0.2
11.8%
Total
£22.5
£20.3
£2.2 9.8%
Financial Statements 2016
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