The newYORcivil & YORbuild

Major Works Frameworks

YORhub Conference2019

IntroductionsMark Ives Chris Jackson

East Riding of Yorkshire CouncilConstruction Framework Manager

YORcivil2 Programme Manager

Telephone: 01482 395668 Email: mark.ives@eastriding.gov.uk

Sheffield City CouncilPrincipal Quantity Surveyor

YORcivil2 Framework ManagerSouth and West Regions

YORconsult2 Programme Manager

Telephone: 0114 273 6230Email: Chris.jackson@sheffield.gov.uk

Today’s Programme

Activity

• Welcome & Introduction

• Background - YORhub

• Framework strategy

• YORcivil Major Works

• YORbuild Major Works

• Q&A

BackgroundYORhub

Mark Ives

YORhub Structure

YORhub sits on various national steering groups including ones with:• Cabinet Office• Local Government Association• Constructing Excellence• NACF

Frameworks – National Picture

YORhub has over 50 Users

1st Generation: avoid OJEUs, long term partnering/ workload continuity; collaborative contracts; less disputes/ better relationships; reduce project overruns in time and cost

+ 2nd Generation: have improved project delivery: some framework user support; KPIs to show continual improvements for time, costs and innovation

+ 3rd Generation: guarantee improved project delivery and social benefits: managed user service; more collaboration; Fair Payments/ PBAs; Employment and Skills Plans; Supply Chain Engagement and innovation; sustainability strategy; community benefits; Lots by Value

+ 4th Generation: BIM; PAS91; choice of contracts e.g. NEC and JCT; range of selection methods; Social Value Act compliant; New Procurement Methods; “new housing” Lots; supplier min turnover reduced

YORbuild2

YORbuild

More benefits added with each new framework generation

Framework Evolution

YORcivil2

YORcivil

www.yorhub.com

Original website dates from 2012 and so was relaunched in June together with rebranding and

will continue to be developed

Framework Strategy

Mark Ives

Framework Strategy

Quality questions are partially linked to the above strategy

• Employment & Skills built-in• Linked to project delivery & award

• Supply Chain Management• Efficient Sourcing & Transparent Approach

• Economic Regeneration• Operation of YOR4Good Fund

• Sustainability• Zero Waste to Landfill & Carbon Reduction

• Outputs achieved to date include: Apprenticeships (16,000 weeks) School visits and workshops (29,000 pupils) Progression into employment (2000 people)

Employment & Skills

Supply Chain Engagement Programme

• Developed to ensure that small and local business can find opportunities via the framework

• Identifies subcontract packages and promotes them to subcontractors via a web portal.

• In the last 9 months over 700 small and local businesses have attended engagement events

• YOR4Good Fund established in 2011 Supports local community projects Funded by contributions from YORbuild & YORcivil

contractors CSR budgets.

• Community organisations are able to bid for cash or resources

• Over 130 projects supported

• Total cash equivalent over £900k

Economic Regeneration

• Mixture of contractual and optional measures

• Sustainability Initiatives Waste reduction Wildlife protection Carbon reduction

Sustainability

• Waste data reported on all projects Targets reducing waste to Landfill 2 Tonnes per £100k (target) Achievement - 97% diverted from Landfill

• Carbon reduction KPI being introduced into YORbuild2 & Major Works Framework

YORcivil Overview

Mark Ives

YORcivil2• A collaborative Construction Framework predominantly

for the procurement of civil contractors to carry out civil engineering projects

• Accessible by other regionally based Public Sector Bodies.• Advertised Values:

– North & East - £324m over 6 Lots– South & West - £720m over 7 Lots

• Award Dates:– For both areas – 9th August 2017

• Duration : 4 years with an option to extend up to a maximum of 6 years at the Council’s discretion.

Number of schemes = 135 (Incl. pipeline)

N&E Advertised Total = £324 S&W Advertised Total = £720m

YORcivil2 Update

£196,479,991.92

£433,758,771.21

Total including pipeline

N&E S&W

£149,922,365.45

£90,086,356.21

Value of projects awarded

N&E S&W

Current Engagement

YORcivil Major Works Framework

• Size and nature of access has changed

• Significant funding for major projects has increased

• Creates the opportunity for larger packages of work under a single contract

• Will exceed current advertised value for YORcivil2 major lots for over £10m

YORcivil2 Lotting StructureNorth and East £324m South and West £720m

Lot Estimated potential volume (£m)

Number of firms appointed Lot

Estimated potential volume (£m) Number of firms

appointed

Lot 1 : Civil Engineering works £0 - £500k

7.2 8

Lot 1: South Area Civil Engineering Works £0 - £500k 28.8 8

Lot 2 : Civil Engineering Works over £500k - £4m

43.2 8

Lot 2: West Area Civil Engineering Works £0 - £500k 28.8 8

Lot 3 : Civil Engineering Works over £4m - £10m

67.2 8

Lot 3: South Area Civil Engineering Works over £500k -£4m

96.0 8

Lot 4 : Civil Engineering Works over £10m

76.8 8

Lot 4: West Area Civil Engineering Works over £500k -£4m

96.0 8

Lot 5 : Surfacing Works 48.0 6Lot 5: Civil Engineering Works over £4m - £10m 144.0 8

Lot 6 : Coastal Works 81.6 6Lot 6: Civil Engineering Works over £10m 201.6 8

Lot 7: Surfacing Works 124.8 8

• Single lot for all works over £10m

• 8 Contractors to be appointed

• Advertised estimated value is £2bn as identified pipeline

• Will cover all Yorkshire and Humber region + Sheffield LEP

• Pricing for NEC3 and NEC4 options

• Procurement timescales minimised

Major Works Framework Structure

YORcivil - Call off options

Price

Qua

lity

1. Quality Initiated call off

4. Price/Quality Mini

Competition Two Stage

3. Price/Quality Mini Competition

Single Stage

2. Price only Mini Competition Single Stage

Traditional option

For well defined, low risk projects

Significant options for ECI

• Covers Yorkshire and Humber region

• Plus Sheffield LEP region

• As both YORcivil2 regions

• All NEC black book options A to F plus:

• Short Contract

• Term Service Contract

• Professional Services contract

• Choice of NEC3 or NEC4

Flexible NEC options

Performance & Engagement

• Firms appointed to the framework are expected to engage and appoint a framework manager, although it is accepted that this will be dependent on the number of opportunities

• Firms are also expected to have the capability and capacity to tender for all opportunities. Clients won’t return if they don’t get sufficient tenders etc.

• The framework is not an approved list where firms sit and wait for work to arrive and when it does they can cherry pick

• The YORcivil FMT will meet with Contractors regularly to discuss issues/ share best practise. These meetings may involve clients and suppliers appointed to the YORconsult and YORbuild frameworks.

• OJEU published18 April 2019

• Tender briefing event2 May 2019

• Latest date for raising of clarifications24 May 2019

• Tender return date3 June 2019

• Tender assessment periodJune/July/Aug 2019

• Approvals and AwardSept 2019 to date

YORcivil Major Works – Key Dates

YORbuild Major Works

Chris Jackson

• Commenced in February 2016 and will expire in February 2022.

• Advertised value for Lot 5 for projects over £10m has almost been reached well ahead of expectations. Lot 5 East area was advertised as £160m Lot 5 West area was advertised as £352m

• This is why new major works framework is being advertised

• YORbuild2 will run in parallel with the major works framework but will mainly deliver projects up to £10m and new housing

YORbuild2

Lot North (sub-region areas

A-D)East South West

Lot 1 : £0 - £250,000 Split into 4 lots

Lot 2 : over £250,000 - £1,000,000 Split into 4 lots

Lot 3 : over £1,000,000 - £4,000,000 Split into 4 lots

Lot 4 : over £4,000,000 - £10,000,000 Included in East Lot 4

Lot 5 : over £10,000,000 Included in East Lot 5 Included in

West Lot 5

Lot 6 : New housing up to 10 units Split into 4 lots

Lot 7 : New housing over 10 units Included in East Lot 7

Included in West Lot 7

YORbuild2

• Number of completed/ current/ imminent schemes = 21

• Total value = c.£516m

• advertised value = £512m

• Highest value project £70m retail & office development

• Nr of projects over £30m = 4, overall value £191m

• Nr of projects over £10m-£30m = 17, overall value £325m

YORbuild2 – Lot 5

YORbuild2 – Lot 5

YORbuild Major Works Framework

• Pre-market engagement identified £300m+ of potential projects

• Strong commitment from University sector Informal partnering agreement with NEUPC NEUPC consulted during procurement

• Potential for WYCA build projects

• Default for 5 lead authorities

• Two Lots Lot1 over £10m-£30m Lot2 over £30m

• 8 & 6 Contractors to be appointed

• Advertised estimated value £1.5bn Lot 1 £600m Lot 2 £900m

• Will cover all Yorkshire and Humber region, North East England, Lincolnshire, Nottinghamshire & Derbyshire

YORbuild Major Works Framework

• Coverage is similar to YORbuild2

• Expanded into Leicestershire to cover NEUPC members

YORbuild Major Works Framework

Price

Qua

lity

1. Direct Selection

4. Price/ Quality Mini Competition

Two Stage

3. Price/Quality Mini

Competition Single Stage

2. Price only Mini

Competition Single Stage

Traditional option

For well defined, low risk projects

Significant opportunities for ECI

VITAL THAT APPOINTED FIRMS ARE PREPARED TO BID FOR ALL FOUR METHODS

YORbuild Major Works Framework

• NEC OptionsOnly NEC black book options A & C plus:Short Contract (enabling works)Term Service Contract (option A only)Professional Services contract

• Choice of NEC3 or NEC4

YORbuild Major Works Framework

YORbuild Major Works Framework

• JCT 2016 options JCT Major Project Construction Contract JCT Standard Building Contract without Quantities JCT Minor Work Building Contract JCT Design & Build Contract JCT Constructing Excellence Contract

• OJEU published23 July 2019

• Tender briefing event8 August 2019

• Latest date for raising of clarifications30 August 2019

• Tender return date9 September 2019

• Tender assessment periodSept-Nov 2019

• Approvals and AwardDecember 2019

YORbuild Major Works Framework

Performance & Engagement• Firms appointed to the framework are required to engage and

appoint a framework manager, although it is accepted that this will be dependent on the number of opportunities

• Firms are also expected to have the capability and capacity to tender for all opportunities. Clients won’t return if they don’t get sufficient tenders etc.

• The framework is not an approved list where firms sit and wait for work to arrive and when it does they can cherry pick

• The YORbuild FMT will meet with Contractors regularly to discuss issues/ share best practise. These meetings may involve clients and suppliers appointed to the YORconsult and YORcivil frameworks.

Thank you for attendingAny Questions?