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Frameworks Scotland Three Years In
Jacqueline KilcoyneCapital Projects ManagerHealth Facilities Scotland
Frameworks Scotland is a strategic partnering approach to the procurement of capital schemes across NHSScotland with a value in excess of £1m.
PSCP Framework
BAM
Laing O’Rourke
Interserve
Morrison Healthcare
Robertson Dawn Health
Professional Services Frameworks:-
Project Manager Cost Advisor Supervisor CDM Co-ordinator Healthcare Planner
NHS Partnering Workshop –
April 2007Difficulties Expressed and Discussed included:• Increased construction costs and cost uncertainty• Construction market saturation• Difficulty attracting bidders/collating tender lists• Programme delays• Drive to improve quality of capital schemes• Paying more for their project than they had been led to
believe would be the case when they accepted the contractor’s tender
• Receiving their project late• Taking ownership of buildings which fail to meet the
functional requirements of the users, and• Ending, all too often, with an adversarial and litigious
relationship with the chosen contractors
Aims and Objectives of the Proposed Framework
Improvements in design Improved quality Improved client satisfaction Improved Health and Safety performance Sustainability Retain, recruit and train a skilled workforce Reduce procurement and lead in times by at least 3 months Cost efficiencies A Framework for professional services Appointment of a minimum of 3 (maximum of 5) ‘One stop shop’ PSCPs
▪
41 Projects
18 Complete15 On site8 In development
▪
£386 million
▪
12 Boards
Frameworks Scotland – A National Framework
Frameworks Cash Flow
Frameworks Scotland Projected Spend October 2011
0
65,932,643
144,114,071
47,401,141
2,115,00013,577,654
135,513,487
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
2009 / 2010 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016Year
Valu
e £m
Frameworks Scotland Audits –
PSCP
Carried out by PriceWaterhouseCoopers
PSCP Head Office audit and project audit
Financial systems and procedures are effective
Costs allocated correctly
Overall positive and successful audits
Frameworks Scotland Audits -
PSC
Carried out by PriceWaterhouseCoopers
PSC Head Office audit
Hours charged related to underlying records.
Rates charged were contract rates.
Overall positive and successful audits
Cost Analysis of Frameworks Projects
10 completed projectsTarget price £1.5 - £4.5m
3 projects in constructionTarget price £21m, £35m, £81m
Initial Report
Key Trends and Value for Money
Analysis of Frameworks Projects Key Trends and Value for Money
BREEAM
Limitations of data- 3 projects achieving ‘Excellent’ rating - 2 projects achieving ‘Very Good’ rating
Recognised percentage increases (BRE)- Excellent 3.3% - 7.0% increase in Capital Cost- Very Good 0.1% - 5.7% increase in Capital Cost
Framework Projects - BREEAM Excellent 1-4% - BREEAM Very Good <1%
Analysis of Frameworks Projects Key Trends and Value for Money
Programme
Traditional (Completed Projects)- Less than 50% of projects analysed
finished on programme
Framework- 8 out of 10 projects finished on time- 3 further currently on programme
Analysis of Frameworks Projects Key Trends and Value for Money
Refurbishment (within live hospital environment)
Average cost per m2 £1,500 for Framework projects compared with £1,900 for traditionally procured projects
Influencing Factors
1. Risk – Effective risk management and ownership.
2. Recognition of market conditions 3. PSCP/Supply Chain involvement
Analysis of Frameworks Projects Key Trends and Value for Money
New Build
1. Health Centres Centres -- like for likelike for like
2.2. Dental Centres Dental Centres –– VariedVaried
Contributing factors include:-
- Remote location - Size of project- Abnormals - extensive car parking
- foundation design
3. Mental Health - Comparable
4. Care of the Elderly - Marginally less than average - equates to
£1.1m saving
Analysis of Frameworks Projects Key Trends and Value for Money
Pain Gain Share
£172,871 £654 £59,106 £242,637 £210,531
£118,597 £9,469 (£156,781) £152,111 £60,476
£1,1
78,5
75
£667
,718
£27,
515
Objectives Improved Quality
Feedback from recent Users event indicated improved quality.
- end product & project management - minimal / no defects- end users aspirations - maintain ongoing healthcare delivery needs.
Objectives
Client satisfaction
Very positive feedback at Users event for both the process and end product.
- team solution - working relationships - Risk management and allocation
Average KPI score of 78% for most recent quarter
Objectives
Reduced Procurement Times
- PSCP appointment in 4 weeks has reduced appointment timescales.
- Early constructor involvement has reduced risk and assisted project planning.
Objectives
Cost Efficiencies
- Initial Cost Analysis Report has demonstrated efficiencies.
- Cost certainty through the programme noted by users as being a priority.
Objectives
- Feedback that NHSScotland Boards consider Health & Safety performance has improved.
- Most recent KPI result average score of 83% for satisfaction for Health & Safety on site management and commitment.
Objectives
Improvements in design
- Most recent KPI for results for overall NHS satisfaction with design is 82%.
Going Forward
• End of Year 3 of 4 year Framework (with option to extend for 2 years).
• Consultation with Key Frameworks Scotland Users.
• Consultation with Welsh Health Estates.• Consultation with NHSScotland Boards. • Ongoing consultation with Legal Advisors
around maximising the use of the Framework.
Going Forward
Improve - Not stand still - Share best practice
Across the Framework - Collaboration and team approach- Deliver efficiencies
Scottish Spending Review 2011 & Draft Budget 2012
Managing Pressures and Cuts in Public Expenditure
“….there will require to be an ongoing focus on delivering efficiency savings and increasing productivity building on past success. The Scottish Government is delivering a number of initiatives to ensure that available resources are utilised as effectively as possible. The Frameworks Scotland national construction framework will ensure efficient delivery of new and refurbished projects”.