Todays Agenda Time Agenda item Presenter
9:30 Welcome and Introductions Jon Williams
9:45 How did we get here Keith Heard
10:00 The National Picture on frameworks Keith Heard
10:15 The New SCF Framework Chris Cook
11:00 Refreshment Break
11:30 The SW Lot Jon Williams
11:45 The SE Lot Keith Heard
12:00 The London Lot Dave Mulford
12:15 Summary and Recap Jon Williams
12:30 Questions
13:00 Close
Todays presenters
Chris Cook SCF Project Manager
Keith Heard Programme Manager (Hants CC)
Jon Williams Procurement Manager (Devon CC)
David Mulford Procurement Manager (Haringey )
Alex Iles EXOR/ Santia
2005 – 2014
Before
• Lowest quoted price
• Wasteful bid process
• Late appointment
• Adversarial
• No integration of the
team
After
• Total cost
• Visible supply chain
• Early contractor input
• Partnership and
collaboration
• Outcome focus
• Predictability
The history
• 2006 – SECE / iESE Generation 1 (grant funding)
• 2009 – CFSW Generation 1 (grant funding)
• 2009 – NIEP (CLG funded)
• 2011 – Government Construction Strategy
• 2011 – iESE Generation 2 (self funding)
• 2012 – LCP strategy launched
• 2013 – CFSW Generation 2 (self funding)
• 2014 – Government New Models of procurement
• 2015 – Convergence
Why a Framework
• OJEU compliance
• Join up projects into programmes of work
• Long term relationship
• Shared learning
• Efficiency and productivity
• Predictability
Operating Model
• Efficient value based appointment
• Minimises non-productive effort
• Brings skill early to projects
• Outcomes measured
Dev
elo
pm
en
t w
ork
stre
ams
Act
ive
man
agem
ent
Use of frameworks
iESE Generation 1 51 users 220 projects £1.6bn
iESE Generation 2 45 users 160 projects £1bn
CFSW Generations
1 and 2
31 users 99 projects £380m
Why engage early?
£0.00
£100,000.00
£200,000.00
£300,000.00
£400,000.00
£500,000.00
£600,000.00
£700,000.00
£800,000.00
£900,000.00
£1,000,000.00
A/B C D E
Sa
vin
gs
Ge
ne
rate
d
RIBA Stage
Contractor Added Value
SAVE Commercial
SAVE Added Value throughearly engagement
Procurement Saving
Regional Frameworks are delivering
2,000 projects
£4bn
250 public authorities
Police Fire and
Prison
Sports and Leisure
Regional Frameworks deliver……… • Sustainable efficiency savings;
• Reduction in consultancy and construction costs;
• Projects closer to target cost and time;
• Reduction of disputes, claims and litigation;
• High client satisfaction rates;
• High proportion of value of work undertaken by SMEs
• High proportion of local labour and sub-contractors;
• High take-up of government initiatives e.g. Fair Payment, Apprenticeships, Localism etc;
• High proportion of construction, demolition and excavation waste diverted from landfill;
• Good Health and Safety performance against national average;
• Integration of the supply team.
NACF Supports Government Construction Strategy
Government Construction Strategy NACF Publication Construction Pipeline & Cost Benchmarks
Trial New Procurement Models
Building Information Modelling (BIM) / Gov Soft Landings
Fair Payment Charter / Project Bank Accounts / SME’s
Effectiveness of Frameworks
Pre-Qualification: PAS 91
Performance Management
What does the NACF do? • Advocacy Who is doing what, where and when
Sharing of knowledge and best practice
Central point of contact for central government
Management and Measurement Contractor workload and performance
Visibility of future pipeline of work
Benefits, efficiencies, local economy
Innovation and development Benchmarking
Best in class design, procurement and delivery
Government Construction Change Programme
UNCLASSIFIED
Government
Construction Strategy
Industrial Strategy for
Construction
Joint vision to 2025
setting out aspirations
Infrastructure Cost
Review
Green Construction
Board
Government Construction Strategy: Objective
Overarching target:
• Achieve a sustainable 15-20% reduction in the
cost of construction by the end of this parliament
(“Sustainable”: without adversely impacting either whole life value or
the long term financial health of the construction industry)
Already delivering across Central Government:
• FY 2011/12: £72m; FY 2012/13: £447m
• First Half of FY 2013/14: £293m
• Some already achieving 15-20% vs FY 2009/10
UNCLASSIFIED
To achieve 15-20% savings….
…leading public & private practitioners do the following:
• Leverage data – identify opportunities / inform decisions
• Standardise requirement
• Aggregate demand
• Engage with lower tiers
• Commit spend – promote supply chain investment in efficient delivery
• Create integrated client and supplier teams – minimise process
waste
Frameworks have the potential to deliver against all of these initiatives
remove waste / maximise
buying power }
UNCLASSIFIED
Task Group 1 Procurement Lean Client Report recommended.....
UNCLASSIFIED
• The Task Group report, which covered a number of aspects of Construction Procurement,
can be found at the hyperlink below
•https://www.gov.uk/government/publications/government-construction-task-groups
•It showed at Appendix 1 a range of NIEP frameworks that were currently available at that
time.
• It also showed at Appendix 2 the Framework characteristics that could deliver the 15-20%
savings that the government construction strategy was seeking;
• And finally, at Appendix 3 page 114, it evidenced Performance criteria from the NIEP
frameworks.
• It is clear from the report that the Government Construction strategy supports, a well
planned and executed framework, and if continuous improvement is delivered from
‘Lessons Learnt’ on the existing framework then the replacement will succeed in delivering
a cost effective service which will deliver significant savings.
Click on Icon to review report
Summary of Objective 3 of Task Group Report
Objective 3 – Effectiveness of frameworks
• Framework agreements allow clients to select a number of companies, entering into an
agreement with them to deliver a series of projects over a set period of time.
• The Government Construction Strategy recognizes that such arrangements can be highly
effective, yet also highlights the fact that experience of some public sector framework
agreements is less positive. In particular there are concerns that such agreements can act as a
barrier to the market for SME and local suppliers, while some public clients do not benefit from
effective performance management of suppliers within their frameworks.
The Strategy Action Plan calls for the government to:
• Work with representatives from local government (through the National Improvement and
Efficiency Partnership for the Built Environment) to investigate the effective use of frameworks,.
It is in this regard that the Construction team continue to work with IESE to identify continuous
improvement with Frameworks going forward.
Framework Team Resourcing – efficiencies in framework
management
Customer Status - Increased status as a customer in the market with
greater buying power.
Breadth of Resources - Greater breadth of team and technical resources
Performance - increased volume of performance information to compare
and enhance performance monitoring across a wider region.
Government Strategy – Government dislike of disparate frameworks.
Buy In – Will attract more public bodies – opportunities for public estate.
Economic Benefit – A significantly sized framework in the UK landscape
and over 4 years would likely turnover £2 billion ensuring contractors put forward
very competitive rates to engage with the framework.
Standardisation – of procurement and contract documentation.
CONVERGENCE BENEFITS
Regional and Central Management
Regional Lead Team
• Exeter, Winchester, Wood
Green
– Good Governance
– Business development
– Client support
– Process support
– Regional programmes
– Project specific advice
– National liaison
Central Management Team
• Winchester, existing iESE
teamf
– Good Governance
– Guidance and leadership
– Framework management
– Performance management
– Continuous improvement
– Reporting
– Advocacy
Funding mechanism
• £15k Subscription
• 0.15% Project levy included in tendered OHP
– Variable over life of framework
• Paid annually
• ¼ paid on appointment to pre-construction
• Balance paid on acceptance of tender
Predictable
delivery - quality,
cost & on time
Feasibility
Tendered
Packages
Construction
Design
Development
Early
Contractor
Selection
Principles – 2 stage approach
Contractor Adds Value and Complements Design Team
Agreed packages
of works leading
to capital works
contract
Early
supplier
involvement
Pre-Construction phase (fee based)
Scope • Framework of Principal Building Contractors • Three “lots”, SW, SE, London • Can bid for any or all lots • Varying project value requirements, but no
maximum limit • Available to all public authorities in the South • Any new build, refurbishment or remodelling
building works • 48 month framework • Facilitates main forms of contract
Framework Value
Lot Lower value
forecast 4 year
throughput
Higher value
forecast 4 year
throughput
CFSW £400,000,000 £800,000,000
SE £800,000,000 £1,500,000,000
London £900,000,000 £1,600,000,000
Accreditation
• EXOR management services: Gold accreditation
• Competitively procured / risk assessment service
• Qualification stage + ongoing monitoring
&exception reporting
• Criteria: H&S and workforce accreditations,
incidents, financial and insurance exception
reporting, + other: www.exorms.co.uk
Exor Framework
• Health & Safety
• Equality
• Environmental Management
• Business Check (incorporating): Financial Stability & Viability;
Annual Requirements; Professional Conduct; Experience of
Business; Insurances; Registrations
Constant Monitoring
• Constant financial monitoring – Experian
• Accounts – Companies House
• H&S – HSE database
• Equalities – IDS Brief
• Insurances, certificates, licenses at expiry
• Other – clients, press
• Annual review
• Suspensions/terminations – notified by e-mail and visible in
the client portal
What we expect of contractors
• £30m Minimum turnover requirement
• Expect active participation, behaviours
• Continuous improvement and knowledge transfer
• Gather required KPI and project information on every project
• Signed off gateway reviews at all stages of every project
• Sufficient capacity to undertake multiple schemes / programmes
What we expect of contractors
• Real continuous improvement contributions
• Strategic relationships
• Support for apprenticeships and other local community benefits initiatives
• Active contribution to framework charters
• Pro-active benchmarking contributions
Excellence in 2 Stage Open Book
• Defined Pre Construction Services Duties
• De risking of design and programme
• Rigorous transparent open book
• Cost control through the process
• Cost certainty
• Clean handover
• Aftercare
Our clients
• Schools, Colleges, Universities, Councils
• Many are not professional clients
• Which is why we are here!!!
• To offer highest professional standards
• It’s YOUR money being spent!!
• On facilities YOUR families will use!!
Join Us!!
• We aspire to be the Gold Standard of frameworks
• One team
• Leading industry best practice and innovation
• Demonstrating the success of 2 Stage OB
• The better we are… the busier we are
• Put dinosaurs into retirement
Performance management
• Contractors will have to maintain minimum performance standards across a range of KPI’s and company standing
• Performance data to be collected for:
– Project performance
– Contractor, designer and client teams
– Localism, sustainability, H&S
ITT likely composition
• Technical questions:
– Theme or scenario questions based on key
success criteria for the framework
• Commercial
– Not to exceed fees for OHP, Design, staff
preliminaries, plus staff rates
– Standard template design(s) to be priced as
£/m2 under RICS NRM for new build.
Timings (indicative)
Event Date
PIN Published 19th March 2014
Contract Notice 22 May 2014
Return of PQQs 24th June 2014
Issue of ITT Documents 19th Sept 2014
Return of Tenders 29th Oct 2014
Contract Award 2nd March 2015
Contract Start 22nd April 2015
Be prepared
• Register your company details on the In-tend, e-
tendering system.
• No charge is made for registration or access to this
system.
• Full details and user guides on how to register and
operate the system are available via the link
• https://in-tendhost.co.uk/hampshire/.
Construction Framework South West Presentation for:
Supplier Briefing Day
at
Swindon 23rd April 2014
Jon Williams
CFSW Framework Manager
Projected spend estimates for SCF 1 in SW
0
25
50
75
100
125
150
175
200
225
2015/16 2016/17 2017/18 2018/19
110 120 130 140
75 75
75 75
£m
Projected spend estimates for SCF 1 in South West
Anticipated Spend - £500m Potential Spend £300m
SE7 Pipeline
£0
£50
£100
£150
£200
£250
£300
£350
£400
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2022/23 FY 2025/26
£378.5m
£151.4m
£344m
£287.3m
£74.9m £59.2m
£2.4m £20m
Mill
ion
s
Breakdown By Bandwidth
£0
£50
£100
£150
£200
£250
£300
FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2022/23 FY 2025/26
£3m £1m £2m £0m £0m £0m £0m £0m
£263.4m
£54.2m
£117.3m
£68.7m
£0m £3.5m
£2.4m £0m
£112m £97m
£225m £219m
£75m £56m
£0m £20m
Mill
ion
s
<£1m £1-5m >£5m
The over £5m bandwidth
represents 61% of the total
spend for the SE7.
Tier 3 3 Lots (18 contractors)
£1 to £1.5m
Tier 2 1 Lot (TBD)
£0.5m to £4m Tier 2 £750k to £5m (8 contractors)
Tier 3 £50k to £750k (8 contractors)
Tier 4 £1 to £50k (6 contractors)
Tier 2 £750k to £6.5m (11 contractors)
Tier 3 £1 to £750k (11 contractors)
SE SUB REGIONAL FRAMEWORKS
SE Lot Requirements
• Building works >£4m
• Whole of the SE
• Commitment from SE7
• Contractor numbers - 8 to 10
• Will be expected to form local forum groups around SE7 programmes of work
LCP Strategy
• Capital Ambition/London Councils sponsored a review of Construction across London Local Government
• Develop a pan-London strategy to
improve construction procurement.
• Summary report identified a need for improvements, effective collaboration and better alignment to the National Strategy
LCP Strategy (cont’d)
• LCP aims to cut the cost and risk of localised procurement and achieve better value for money outcomes from construction projects through collaboration.
• co-ordinating the overall strategy for London’s public sector in order to maximise outcomes and benefits and avoid duplication of effort
• leveraging the combined buying power of London’s public sector and associated buying organisations
LCP Strategy Contd
• The London Construction Programme (LCP) - initiated by Haringey, Barnet and Enfield launched with the first Pan London framework for Consultants
LCP Strategy (cont’d)
• A virtual organisation of partners Haringey, CCS, LHC, IESE, SCMG, set up as project board.
• Established for the benefit of all public sector in London (excl Central Govt departments)
• Work-programmes are jointly agreed and monitored.
• To align area procurement eventually and cycle key frameworks during the term.
LCP Strategy (cont’d)
• LCP are seeking to appoint up to 8 contractors for the London lots
• Pan London.
• London input into the development of the Southern Construction Framework.
LCP Strategy (cont’d)
To draw the London public sector “together” through:
• Embedding Consultants framework (CRCS2012)
• To develop the Contractors frameworks.
• To develop other Specialist frameworks
• Broader agenda of best practice, common specifications, standardisation, efficiency, KPI’s, templates etc.
• Linking to national agenda
• Advisory Panel of interested authorities.
LCP Major Works Contractor Frameworks - LCP W1 - MW14
So
uth
ern
Co
nst
ruct
ion
Fr
amew
ork
fro
m 2
01
5
LCP
Maj
or
Wo
rks
Value Band 2 - £1,000,000 to £4,999,999
Value Band 1 - £100,000 to £999,999
Work Lots – a) Housing b) education & Others
Value Band 3 - £5,000,000 to £10,000,000 +
> £10,000,000
IESE
av
aila
ble
un
til 2
01
5
FIV
E LO
ND
ON
C
LUST
ERS
FIV
E
LON
DO
N
CLU
STER
S
FIV
E
LON
DO
N
CLU
STER
S
LCP Major Works Contractors Frameworks The London Sub Regions
Hillingdon
Harrow
Ealing
Brent
Hounslow
Barnet
Enfield
Haringey Waltham
Forest
Richmond
Kingston
Wandsworth
Merton
Sutton Croydon
Bromley
Lewisham
Greenwich
Bexley
Redbridge
Havering Barking & Dagenham Newham Tower
Hamlets
Camden
City
LFB
Metropolitan Police
London-wide organisations
West
North East
South East
South West
LCP Strategy (cont’d)
• Extract from LCP Major Works 2014 (LCP W1 - MW14) Framework Agreement, Memorandum of information paragraph 3a.
“The new SCF for London will be advertised for works over £5 million but the intention is that the SCF will primarily be used for works over £10 million. There will therefore be an overlap with the LCP W1 MW14 framework, thus allowing Commissioning Organisations undertaking works between £5 million and £10 million to choose between using the LCP W1 MW14 framework and the SCF.
There is an efficiency to be gained by procuring and running regional frameworks together in the future, so that there is one team providing much of the management activity, but to have a local “front door” ownership and branding”.
Summary
LCP’s strategy is : • for London’s public sector authorities and
buying organisations to work collectively to achieve higher benchmarks using their respective strengths and combined resources, minimising duplication of effort and maximising value for money.
• make available a suite of pan-London construction-related Framework Agreements
• enable access to knowledge and experience within LCP participating organisations.
• Linked to National Agenda
Summary / Recap Key contractor traits:
• Contribution to SCF
• Champion added value
• Underpin successful legacy of iESE / CFSW
• Stimulate customer satisfaction
• Embrace new initiatives and ways of working
• Never stop collaborating
• ‘Wow’ framework users!
Summary
• Evidence benefits of SCF
• Steward & manage – cost / time / quality
• Drive innovation
• Provide projects with intelligent support
• Appreciate / value your supply chain
• Excellent KPI’s with Min Stds
Next Steps
• Exor Microsite – Ring Helpline
• Exor Helpline – 02920 266 242
• Hants CC Procurement Portal
https://in-tendhost.co.uk/hampshire/
Presentation – see iESE Website
WARNING
• PQQ & ITT Guidance/Content will supercede any guidance in this presentation
• Therefore rely on what is in PQQ & ITT