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RIAS criticises housing association tender for unsustainably low bidding
The incorporation commented after a tender process which saw the Glasgow-based housing association award the 12 million affordable housing scheme on Kilmun Street to Oberlanders Architects for a lump sum fee of 132,000 excluding VAT.The project is for 56 high-quality and attractive affordable units on vacant, previously-developed land in Kilmun Street and nearby Shiskine Drive close to Maryhill Locks.A total of 21 teams submitted tenders for the project, which had an anticipated contract sum of 12 million, meaning the winning feewas the equivalent of less than 1.1 per cent.AdvertisementOne rival unsuccessful bidder anonymously questioned whether the collective cost of preparing all these submissions may approximate the fee submitted by the winning team.RIAS chief executive Tamsie Thomson said: The RIAS is aware of this case, which illustrates the crisis in funding for new social housing, and its knock-on effects for architects working across Scotland.We understand at least 20 practices bid for this project and fees across the board were generally well below levels which are sustainable. The Scottish government must promote tendering systems that end this dangerous race to the bottom.Thomson added:The immediate adoption of tools like graduated pricing, which accounts for the danger of abnormally low bidding, is a vital first step. Failure to create a market that sustains professional standards will have significant consequences for architects and clients in the future.A spokesperson for Maryhill Housing Association said the organisation was confident the tender had been carried out fairly and transparently.AdvertisementThe spokesperson said: In line with our tender review process, all bidders for our Kilmun Street project confirmed that they fully understood the brief and that their pricing was accurate.The association is committed to fair work practices, so bidders were also required to answer a question regarding Fair Work First all of whom scored highly in this area.We can also confirm that the winning bidder is a Real Living Wage employer. In addition, our development team works closely with all consultants and contractors to ensure that the services they provide are of a high quality.Oberlanders partner Andrew Wilmot said the companys fee had not been calculated or presented as a percentage of construction cost. He said Oberlanders submitted a lump sum cost in line with best-practice options outlined in RIBA/RIAS guidance.Wilmot said: The project brief from Maryhill HA was extremely well defined, with significant repetition of accommodation and significant RIBA Plan of Work tasks already completed through a previous appointment and detailed masterplan.In that specific context, RIBA/RIAS guidance identifies the lump sum fee as the most appropriate fee proposal, with a clearly defined brief allowing the architect to give an accurate forecast of how much time is required.Wilmot said Oberlanders was a RIBA/RIAS chartered practice which is ISO accredited for its quality management systems and is a Real Living Wage employer. He refuted presumptions the winning fee was abnormally low or unsustainable or based on a percentage fee.We echo RIASs concerns regarding sustainable fee levels in our industry, he said. And, like RIAS, are committed to promoting and maintaining the highest professional standards. However, it is not the case that Oberlanders submitted an abnormally low or unsustainable percentage fee bid for this project.Maryhill HA will receive a quality service, from our highly experienced team and we are looking forward to working with the team to deliver a fantastic development of much-needed affordable housing for the local community.The Kilmun Street project is part of a larger blue-green masterplan to transform the area surrounding Maryhill Locks drawn up by ERZ Landscape Architects. It comes six years after McGinlay Bell completed a new 4 million housing development nearby.Maryhill is a historic north-west suburb of Glasgow, served by both the River Kelvin and the Forth and Clyde Canal. The Maryhill Transformational Regeneration Area was set up to boost the quality of affordable housing in the area and improve its public realm, landscape and sense of place.The Kilmun Street project will deliver 56 affordable homes on vacant land, which formerly contained housing and forms a northern boundary to the area. The development will feature 30 terraced houses, 12 flats for elderly people and 14 mid-market rent homes.It is understood the project brief for the scheme was well defined and included building upon an existing site layout with building footprints and parameters defined through an existing and detailed masterplan already lodged for planning consent outside the scope of the tender.More than 40 per cent of the project brief comprised a single duplicated and repeated unit. The schedule of accommodation, building types and specifications were further defined by pre-existing design codes and guidance, allowing more accurate forecasting of the architectural resources required for delivery.Bids for the commission were evaluated 60 per cent on quality and 40 per cent on price. Applicants were required to hold employers liability insurance of 10 million, public liability insurance of 2 million and professional indemnity insurance of 5 million.Commenting on the wider context of architect fees in Scotland, Jane Briggs, business development manager at Collective Architecture said: We are encouraged to see the RIAS actively engaging with the Scottish government to address these challenges.The introduction of measures such as graduated pricing and protections against abnormally low bids is essential to safeguarding professional standards, ensuring quality outcomes, and sustaining the viability of architectural practices, she said.We look forward to seeing a fairer and more sustainable procurement system.Comment by Andrew Wilmot, partner, Oberlanders ArchitectsThe Maryhill fee was not calculated or presented as a percentage of construction cost.The fee for Maryhill was calculated following RIBA/RIAS guidance, which outlines three ways for architects to calculate fees; percentage of construction cost, lump sum, or time charge.The project brief from Maryhill HA was extremely well defined, with significant repetition of accommodation and significant RIBA Plan of Work tasks already completed through a previous appointment and detailed masterplan.In that specific context, RIBA/RIAS guidance identifies the lump sum fee as the most appropriate fee proposal, with a clearly defined brief allowing the architect to give an accurate forecast of how much time is required.Oberlanders is an RIBA/RIAS Chartered practice. We are ISO accredited for our robust quality management systems, and a Real Living Wage employer.We echo RIASs concerns regarding sustainable fee levels in our industry and like RIAS are committed to promoting and maintaining the highest professional standards. However, it is not the case that Oberlanders submitted an abnormally low or unsustainable percentage fee bid for this project.Maryhill HA will receive a quality service, from our highly experienced team and we are looking forward to working with the team to deliver a fantastic development of much-needed affordable housing for the local community.
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