The new company, called Ring Stones, is a subsidiary of Calico Homes. It is expected to deliver more than £45m of Calico’s planned works over its 10-year lifetime. It is also budgeting to win an additional £40m+ of work for other clients by trading commercially in the open market.
Calico’s existing DLO programme for responsive and void works will be unaffected.
Ring Stones will directly employ its labour force with a recruitment campaign for 30 new staff underway.
Forrest was appointed by Calico following an open procurement contest which was handled by Valueworks. Calico customers were also involved in the process and on the selection panel.
Calico chief executive Michael Birkett said: “Ring Stones will increase our efficiency through significant VAT savings and direct control of labour and supply chain costs.
“Additionally, we anticipate that a more competitive cost base and a potential use of commercial profits will ensure that we are able to continue to develop new housing supply, particularly post-2015 when the availability of grant subsidy may be squeezed again.”
Forrest chief executive Lee McCarren added: “Our joint venture provides Calico with the means to access additional funding to improve the homes of thousands of its tenants.”
Calico owns and manages more than 4500 homes in Pennine Lancashire and provides a range of services to help people live independently.