A new suite of construction frameworks

Keith Heard

Regional Programme Management

A Joined up plan

• Join up with the SW and London to create a framework for major projects across the South of England – SCF

• Create a joined up plan with SE7 colleagues for a network of regional and local frameworks

• Protect capacity for Hampshire with local framework for intermediate projects – ICF

• Create new capacity in Hampshire for local projects – Minor Works Framework

Tier 3 (LCF)3 Lots (18 contractors)

£1 to £1.5m

Tier 2 (ICF)1 Lot (10 contractors)

£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

Tier 3 (Minor Works)Work in progress

Complementary frameworks for capacity

• Issues with SEaL framework with interest in smaller projects (especially D&B)

• Analysis showed problem most acute for projects £1m to £4m

• Hence two complementary frameworks SCF (SE) for projects > £4m

8 contractors

ICF (Hampshire) for projects £0.5m to £4m 10 contractors

• Exactly the same operating model

Principles – 2 stage approach

Design Construction

Construct to agreed lump sum

Contractor selected from framework on

OHP, PC fee, construction staff

cost, design & ability to meet client brief and project budget

Integrated team develop designs and

costs, maximise efficiency within

budget whilst finalising package procurement with

tier 2 and 3

The HCC approach has been tried and tested since HCC’s first framework in 2004 for the Nursing Care Programme

Learning - The HCC Feedback

• Frustration with the template approach to the Framework Tender

• Complications with Preliminary pricing tied to templates

• Preconstruction time based, not output based

• Lack of transparency in preconstruction

• No market intelligence

• Contractor performance variable

• Lack of enforcement of framework requirements

New Framework Features• Specified Contractor duties

Framework Director Framework Account Manager

• Not to exceed rates for OHP, Preconstruction, construction and design

• Faster contractor selection process • Primary school extension & secondary school solutions priced

by all contractors Competitive pricing to meet or beat EFA, Scape

• Minimum standards of contractor performance across a range of project, performance and social value KPI’s

• Designed to help authorities implement key initiatives such as BIM and Project Bank Accounts through signed charters

The Framework Tender

Specified•Roles•Duties•Deliverables

The Contractors

SCF1. BAM

2. Galliford Try

3. Kier

4. Mace

5. Midas

6. Morgan Sindall

7. Wates

8. Willmott Dixon

ICF1. Amiri

2. Beard

3. Interserve

4. Kier

5. Lakehouse

6. Longcross

7. Midas

8. Osborne

9. Raymond Brown

10. Stirland

The Mini Competition Process

Opportunity pipeline published – M2i

Project details published on procurement portal (sets not to exceed price)

MC 1 run through procurement portal

Framework manager / project officer short list to 3

Project Officer issues and runs MC2

Confirmation of (Questions may be weighted):•Preference for type of project•Ability to deliver (capability)•Capacity of contractor and supply chain•Ability to add valueSelf scored responses to pre-set criteria, supported by word limited written evidence. Evaluated by framework manager, who agrees outcome with project officer.

Principles of Mini Competition 1

Preferred outcome is for three contractors to proceed to MC2.•Sensitive to contractor right to appeal•Sensitive to officer view on self scoring•May be more than three in MC2

Framework Manager to feed back to unsuccessful contractors

Outcome of Mini Competition 1

Cost – SCF 20 to 50% ICF 30% TBA•OHP %•Pre construction fee%•Construction fee %•Design fee %•If applicable and appropriate, may include Preliminary items Rates may not exceed the tender percentages from the price point, but may be less, and will be converted to lump sums based on the construction value

Principles of Mini Competition 2

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Technical – SCF 50 to 80% ICF 70% TBA SCF ICF•QA and performance (CI) •BIM •Design Management & Development •Supply Chain Management •Handover and Aftercare •Sustainability and Environment •Social Responsibility – Mandatory question •Financial Control – Mandatory question on cost plan •Framework delivery – Project delivery •Programmes of Work Questions may be weighted

Principles of Mini Competition 2

Award and feed back

• Project Officer to award Agreed costsAgreed programmePre construction agreement

• Project Officer to feed back to unsuccessful contractors

Key gateways

Managing performance

• Minimum standards of performance Exor Gold (Maintain PQQ Status) SCF ICF× Provision of KPI data SCF ICF× Cost predictability SCF ICF Time predictability SCF ICF Team performance scores SCF ICF Defects at handover SCF ICF SME spend SCF ICF Apprenticeships created SCF ICF× Health and safety SCF ICF Fair payment SCF ICF×

Who we are

Keith HeardSenior Programme Manager

Edward CurrieRegional Programme Manager

L. Howell

N. Midmer C. Henderson

Vacancy

T. Moss K Larrive

VacancyRegional Programme Manager

Framework Team Programme Management Team

M. Thomas