Project Target Event Building Business for Our Region 18 Sep 09 Presentation

8/14/2019 Project Target Event Building Business for Our Region 18 Sep 09 Presentation

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Building Business for our Region

18 th September 2009AMP Technology Centre, Sheffield

P roject Target


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Target SME Event 18/09/09Public Sector Opportunities

Brian Barrett Design Consultancy ManagerEDS Asset Management

Rotherham MBC


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Public Sector Opportunities

Importance of Integrated Approach to procurement Value for money Local opportunities

Predictability Matching skills availability Needs

local economy aspirations


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Rotherham MBC working with SMEsGeneral Importance to Members

Procurement Strategy Procurement Plan Buy-Local website

Meet the Buyer events


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Rotherham MBC working with SMEsConstruction RCP Supply Chain events

RCP Supply Chain management group Forms of contract and fairness KPIs

Local labour Training


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SME access to Public Sector opportunities SCMS procurement website (22 Y&H Councils) Apply to known supply chains

OJEU award notices


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Criteria for gaining work Technical ability and capacity Financial standing

Health and Safety Equality and diversity Sustainability

.


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Opportunities Capital programmes Building Schools for the Future

Primary Capital programme Council Housing bids Developer-led projects Yorbuild

..


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For further information contact Brian Barrett (x 2988, [email protected] )

Buy-Local website www.buy-local.co.uk

Yorbuild website www.yorbuild.com

Any Questions


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Building Business For Our Region

18 th Sept 2009, Rotherham

Wendy Ashton


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ObjectivesTo brief regional businesses about theTarget initiative its aims & objectivesTo highlight potential Public Sector

opportunities for SME involvement


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Todays P resentationSetting the scene.

What is Project Target?

Where are we at?

Next Steps.


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Setting the SceneUK economic growth lower than forecast in Construction sector. Significant fall in GDP (3.6%) Yorkshire & Humber expected to fare slightly below UK average this year

Sharp decline in private sector works being commissioned

significant proportion of businesses which traditionally operate in the private sector now looking at public sector opportunities as a future source of revenue

Recession hit sector requiring intervention to provide support


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Setting the SceneRecognition that support required to strengthen Yorkshire & The Humber businesses to enable them to remain competitive, to find alternative sources of income and to be able to diversify into new markets

Need clearer understanding of buyer requirements what criteria & regulatory requirements?

Acceptance that knowledge and skills needed to bid for contracts

support for skills and standards needed for

SMEs to engage in public sector contracts was not easily accessible Tony Cherry, FSB


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Regional Response = Target

To establish an opportunity driven programme aimed at identifying construction

procurement opportunities in both Public (and Private) Sectors

To influence / better understand buyer requirements

Match supply with demand to maximise the involvement of capable businesses from the Yorkshire and the Humber region


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How will it happen?

Next Steps.


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Delivered by VEN Management

VEN is a procurement and supply chain business support service for both regional SME's and national buyers

VEN assists companies to win more business and works towards developing integrated supply chains


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Targeted SupportAdditional support for suppliers and subcontractors providing construction goods and services in the region during the economic downturn

Improve the visibility, profile and understanding of the YORbuild & other frameworks in the eyes of suppliers and subcontractors providing construction goods and services in the region

Provide a targeted level of support for businesses to improve capacity and competence in dealing effectively with public sector tender opportunities

Engage with other business support agencies to identify how regional support

programmes and

activities

can

further

develop

a high

quality

local

labour

force


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Targeted SupportDrive key supplier objectives through the supply chain including targeted employment and skills training, impact upon the environment and carbon reducing solutions

Learn the lessons of earlier construction frameworks to maximise and improve the

connection between

the

framework

and

the

regional

supply

chain.

Improve the business profile of local construction companies and create an effective supply chain network


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Enhanced marketintelligence

In formation platform

to effectivelycommunicate

Netw ork of Stakeholders,

Clients, Contractorsand SMEs

Opportunity

P roject Target


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Civic / Public Estate

Emergency Services

Education Estate

National Parks

Private Sector and Renewable Projects

P roject Target Scope


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Where are we at?

Next Steps.


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Approach


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Making it HappenOpportunities cascaded directly via industry Partners and Targete newsletter

New website launched:www.constructiontarget.com

Referral process to provide support for businesses to improve capacity and competence in dealing with opportunities effectively

Engagement with industry partners to support & add value for Yorkshire & Humber based businesses.


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Sharing OpportunitiesApproximately 1.2bn per annum is spent on construction services, representing 30% of the regional local authorities external expenditure

Alignment with YORbuild therefore of high importance in relation to supply chain opportunities

Over the longer term, Target will continue to raise awareness of construction sector opportunities of interest to the Yorkshire and Humber supply chain

In the immediate future Project Target will focus upon the YORbuild Framework but will work with other frameworks


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Opportunities (VEN)

PrivatePlanning submitted

100mLogistics & ports facility

Able UK

PublicPre tender10.7mSchoolKingston Upon

Hull City Council

PublicExpression of

Interest4mSchool AlterationDoncaster MBC

PublicContract Awarded1mSheffield Teaching

HospitalsDepartment of

Health

PublicITT650mProCure21 National

Framework

Department of Health

FUNDSTAGEVALUEPROJECTCLIENT


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Opportunity Process

Opportunity identified

Send to SMEs

Direct vianewsletter/website Via Partners

Go towww.constructiontarget.com

Interested in opportunity?

Register details includingability to meet criteria for

contract

VEN refers to partnersany gaps or missing skills

SME get full accessto details on opportunity

Sign up to use VENsservices for bidding

support and collaboration

SME wants further helpwith the opportunity

.


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Where are

we

at?

Next Steps.

..


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Next StepsForthcoming events:

Oct 21 st BridlingtonNov 16 th York Nov 27 th Leeds

Partner EngagementLiaison with Industry partners for business support

Buyer EngagementMeetings with Buyers / Main contractors / SMEs for identification of opportunitiesEngaging with Local Authorities, Emergency Services, Education Estates


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This Presentation

Background

YORbuild

How it works

Benefits


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The Journey So Far

The YORbuild Project has been in development

for last

2

years

and

originates

from

a Regional

Construction Collaboration Project funded by the Yorkshire and Humber Centre of Excellence.

During the Regional Construction Collaboration Project it was clear that the Yorkshire and Humber regions Local Authorities, Public Sector Bodies and Third Sector Organisations did not have open access to regionally focused Construction Frameworks.


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The Opportunity

Local Authorities within Yorkshire and Humber

region spend

approximately

1.2

billion

per

annum on Construction Services.

In Local Government Construction is the largest spend category representing 30% of total spend.

Collectively Local Authorities are the largest single Construction Client Body spending approximately 14 billion per annum on Construction Services.


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Project Development

Following a regional consultation event in

October 2007

a Project

Team

was

formed

to

develop the concept of a Construction Framework aimed at the regions Local Authorities, Public Sector Bodies and Third

Sector Organisations.

The YORbuild Project Team consisted of Officers from 10 of the regions 22 Local Authorities with additional resources provided by the Yorkshire and Humber Centre of Excellence and developed the Project through

its first 2 stages.


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YORbuild Project

Development

Stage 1 PID

development &

Regional

Engagement

Stage 2 Business Plan development &

Stakeholder Communication

Stage 3 Framework Procurement

Stage 4 Framework Launch & Operation

J a n 0 8

D e c 0 7

S e p t 0 8

J u n 0 8

Construction Collaboration Project

Complete

O c t 0 7

Project PhaseO c t 0

8

O c t 0 9

Funding Approval from LGYH


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Project Approval and

Funding The Regional Improvement and Efficiency

Partnership (RIEP)

hosted

by

Local

Government

Yorkshire and Humber recognised the potential of the YORbuild Project in March 2008.

The YORbuild Project forms an integral part of the Regional Improvement and Efficiency Strategy for Yorkshire and Humber.

In September 2008 Funding to take the YORbuild Project through stage 3 (Framework Procurement) was approved by the RIEP.


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This Presentation

Background

YORbuild

How it works

Benefits


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YORbuild Framework

Procurement This YORbuild Framework Procurement

provides Construction Works:

New Build Refurbishment Design and Build

Projects subsequently procured via the YORbuild Framework will be awarded under the NEC3 Form of Contract and its various options.


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YORbuild Framework

Procurement Team The procurement of the YORbuild Framework

is delivered by a collaborative cross Local Authority team.


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YORbuild Framework

StructureNorth Sub

regionEast Sub

regionSouth Sub

regionWest Sub

region

W o r k s V a l u e B a n d s

Lot 1Up to 100k

Lot 2 Above 100k up

to 500k

Lot 6Above 10000k

Lot 4Above 1000k up to 3500k


Lot 3Above 500k up

to 1000k

Lot 1Up to 100k

Lot 2 Above 100k up

to 500k

Lot 6Above 10000k



Lot 3Above 500k up

to 1000k

Lot 1Up to 100k

Lot 2 Above 100k up

to 500k

Lot 6Above 10000k



Lot 3Above 500k up

to 1000k

Lot 1Up to 100k

Lot 2 Above 100k up

to 500k

Lot 6Above 10000k



Lot 3Above 500k up

to 1000k


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This Presentation

Background

YORbuild

How it works

Benefits

b ld k


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YORbuild Framework

Management The YORbuild Framework is managed by a

team of individuals from the four Contracting Local Authorities and other external resources.

The YORbuild Framework Management Team provide a procurement service desk to the regions Local Authorities, Public Sector Bodies and Third Sector Organisations.

Framework Management activities including performance management, initiative development and communications are also

handled by the Framework Management

YORb ild F k


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YORbuild Framework

Management

Framework Board Joint Committee

Special interest Group

Steering Group

Board Member Board Member Board Member

Board Member Chair Founder

Member Local Authority

Board Member



Framework Manager

Framework Management TeamLead Member Local

Authority

Special interest Group

M o n t h l y

W e e k l y

Quarterly

Quarterly

u ramewor


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Management Core Services

Feasibility / compatibility.

Procurement Mini

ITT

@

2

12

weeks.

Facilitation of contract administration. Mobilisation, pre contract meeting.

Initiative and development.

Supply chain management. Standardisation. Performance Measurement and Management

YORb ild F k


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YORbuildFramework

Management Team

Project performance

monitored and fed back into the

framework.

Service Level Agreement

SLA Governs the performance levels

offered to the Authorities and the

terms of engagement.

Service

Charge

Individual Authorities

Requirements

Award Protocol.

YORbuild Framework

Project Procurement

YORb ild F k


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Framework Contracting Authority

Framework Contractor Client Authority

Framework Agreement

Service Agreement

Construction Contract

YORbuild Framework

Project Procurement

YORbuild Framework


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YORbuild Framework

Current Opportunities

The aforementioned projects have potential to be procured via the YORbuild Framework.

City of Bradford Metropolitan District Council YMCA 9,000,000Doncaster Metropolitan Borough Council LSC College, Doncaster 6,000,000East Riding of Yorkshire Council Leisure World, Bridlington 14,000,000East Riding of Yorkshire Council Multiservice Centres, Various 6,000,000East Riding of Yorkshire Council Floral Hall, Hornsea 4,000,000East Riding of Yorkshire Council New Housing, Various 17,000,000East Riding of Yorkshire Council Humberside Police HQ, Hull 25,000,000Harrogate Borough Council Toilets, Knaresborough 150,000North Lincolnshire Council Baths Hall, Scunthorpe 13,000,000North Lincolnshire Council PCP Project # 1 6,500,000North Lincolnshire Council PCP Project # 2 6,500,000Rotherham Metropolitan Borough Council CSC, Rawmarsh 4,000,000Sheffield City Council New Housing, Various 4,000,000


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This Presentation

Background

YORbuild

How it works

Benefits


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Efficiency

The YORbuild Framework offers significant efficiencies on two levels:

Procurement. As the Framework has been procured under the OJEU Process all projects

procured via the framework are called off through a mini competition taking 2 12 weeks.

Cost. Collaborative frameworks are proven to reduce the whole cost of construction projects and as the framework brings together regional

demand Contractor fees are very competitive.


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Performance Improvement

Forming the YORbuild Framework presents a unified intelligent Client approach to construction procurement.

It enables Local Authorities, Public Sector

Bodies and Third Sector organisations to collaborate and share information in a joined up way.

Framework Contractors understand very clearly that performance measurement is key to long term success and the eyes of the regionare on them through the delivery of projects.


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Employment and Skills

The YORbuild Framework has developed a trailblazing approach to the enhancement of employment and skills in partnership with Construction Skills.

Every project procured via the YORbuildFramework will have an employment and skills plan which will bind Contractors to the delivery of employment and skills output i.e. Numbers of apprentices.

The model is seen as an exemplar for other

regions to replicate.


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Sustainability

The YORbuild Framework driven the waste management and carbon efficiency agenda through the procurement process.

Detailed management information has been

obtained to assess the performance of bidding contractors in the reduction of waste to landfill.

The credentials of bidding contractors to reduce carbon impact in the build process together with the selection of solutions to

improve the carbon efficiency of the building

.


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Economic Regeneration

The YORbuild Framework driven the economic regeneration agenda through its procurement and sets out very clearly the challenge to framework contractors.

Targeted local sourcing through the framework for materials and subcontracts will be high on the framework management agenda.

YORbuild is working closely with Yorkshire Forward to promote project opportunities to the supply chain in order to ensure the very

best opportunity to the regional supply chain.

YORbuild Framework ..


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YORbuild Framework

Benefits Access to a first class construction framework

for the regions Local Authorities, Public Sector Bodies and Third Sector Organisations .

Cashable efficiencies. Process efficiencies. Performance improvement. Platform for SME development. Capacity built across the region.

Access to shared resources in the procurement of Construction Services.


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Contact

Lee Parkinson

YORbuild Project Manager

07800 962449www.yorbuild.com

[email protected]


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KIER SHEFFIELD LLP

Target SME Event

18 th September

Dan MaherJed Turner


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Kier Sheffield LLP

Joint Venture between SCC and Kier Over 1,100 directly employed staff Defined geographical boundary Two major contracts with SCC Jobs Compact Agreement Additional SCC and 3 rd party work

Added value and key achievements


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Some Key Partnership Objectives

A partnership that will share the Councils core values, inparticular its commitment to equal opportunities, social

justice and regeneration. Securing employment, making a positive contribution to

training and providing a platform to develop increasedmarket opportunities.

Developing and strengthening the diversity of thebuilding industry in Sheffield and supportingregeneration.


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The Main Contracts

Construction and Building Services to2013

All Council owned homes

Corporate buildings schools, libraries Exclusivity and Jobs Compact

Decent Homes to 2010 and beyond 1 of 5 contractors


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106m Business p/a

3rd Par ty 15m

Shar r ow Industr i es (Manuf acture)16m

Cor por ate Building Repair s andMaintenance 6m

Decent Homes 26.9m

Constuction Projects 12.5m

Housing Repai r s and Maintenance30m


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Added Value

Corporate Social Responsibility

Economic Social Environmental


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Economic

Commitment to keeping the within Sheffield and SouthYorkshire

Commitment to maximising local jobs for local people Commitment to growing the business


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Commitment to education, training and employmentprogrammes, examples of which are:-

Work Experience 10 per dayCity Stewardship 120 at any one timeApprentices 51 on the booksSharrow IndustriesLooked After ChildrenDirect Labour 1,100 staff

Commitment to equality and diversity

Social


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Environmental

Yorkshire and Humber Index(http://www.bitc.org.uk/yorkshire_and_humber/programmes/environment/yh_index.html )


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SME our approach to inclusion

85% of materials procured with organisations withSheffield postcode during the last 12 months, with avalue of circa 29M

Specialist Sub Contractors Balance between national and local purchasing

opportunities

.


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Becoming a supply chain partner of Kier

The following forms are part of our sub- contractor gatewaydocumentation to enable us to add a company to Kier SupportServices approved sub- contractor list:

General Questionnaire (around business activity) Health and Safety Questionnaire Equal Opportunity and Diversity Questionnaire Environmental Questionnaire Financial Questionnaire Insurance Questionnaire Trades List Geographical areas

..


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For further information, please contact:

Angela Johnson Telephone: 0114 2735221

Email: [email protected]


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Questions


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Refreshments

P roject Target


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An Introduction to the NEC Suite of Contracts

Anne ChamberlainPrincipal Quantity Surveyor

East Riding

of

Yorkshire

Council

Introduction


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Introduction

The NEC Engineering and Construction Contract (ECC) was developed as an improvement to the failure of the traditional forms of contract to Deliver certainty of outcome for

all parties Reduce adversarial relationships

Endorsed by

key

figures

in

industry inc OGC and NAO

Used on significant and high

profile projects

Family of contract


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documentsThe NEC family includes

ECC 3rd Edition AF

ECC Subcontract ECC Short Contract ECC Short Subcontract The Professional Services

Contract (PSC) The Adjudicators

Contract The Term Service

Contract (TSC)

The Framework ContractGuidance notes & flowcharts

Why the NEC?


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W y ?

Common approach (both

Engineering &

Construction).

Suite of contracts (for professionals/ short Form for

minor works). Supports partnering.

Supports Project

Management.

Project Management procedures


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now part

of

the

contract!

Contractualised

ProjectManagement

Contract conditions Separate Project Managementprocedures

Key aims of the NEC


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y

The NEC is different from

traditional forms

in

a number

of

ways. Drafted with objectives to make improvements in 3 main

areas:1.Flexibility2.Clarity & simplicity3.Stimulus to good management

Flexibility


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y

Multi disciplinary

Design 100% Employer or 100% by Contractor

or combination

Options

Clarity & simplicity


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y p y

Plain English

Present tense

Simple structure

Short sentences

Procedures are not open ended and

conflicting

No reference to law

Set of common clauses (irrespective of the

main contract chosen)

Stimulus to good management


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Proactive management of projects: Early Warning procedure for

dealing with problems Focus on the programme Defined change control process

(referred to as Compensation Events )

Period for reply

Describes actions to be taken by parties

It is a document of procedures

NEC structure


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Core Clauses (common to ALL main options)1) General2) The Contractors main responsibilities

3) Time4) Testing & Defects5) Payment6) Compensation events7) Title8) Risks & insurance

9) Disputes & termination

Main Options A to F

Secondary Options

Terms not used in the


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ECCExtension of timeVariationsClaimsDelay & disruptionLoss & expenseTraditional roles (Architect/QS/Engineer)Subjective measurementsPrelims (added back!)

Provisional Sums

(added

back!)Prime Cost Sums

Interim valuations

Comparison with other


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Forms of ContractJCT ICE ECC

ArchitectSupervisin g OfficerContract

Administrator

Engineer Project Manager

Quantity Surveyor

Clerk of Works EngineersRepresentative

Supervisor

Adjudicator Engineer (cl.66

decisions) Adjudicator/Conciliator

Adjudicator

Arbitrator Arbitrator Arbitrator / Courts

MAIN OPTIONS


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Option A Priced Contract With Activity Schedule (Plan and Spec)

Option B Priced Contract With Bill of Quantities (Bill of Quantities)

Option C Target Contract With Activity Schedule

(GMP then open book)

Option D Target Contract With Bill of Quantities (Bill of Quantities then open book)

Option E Cost Reimbursable Contract (Cost Plus)

Option F Management Contract

Financial risk


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E m p l o y e r

Contractor

Financial risk ofmain options

AB

CD

EF

CORE CLAUSE


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10.1 The Employer, the Contractor, the Project Manager and the Supervisor shall act as stated in

this contract and in a spirit of mutual trust and co operation.

Early warnings


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Key trigger to good management within the contract

About the management of risk

to the project Not about risk ownership

Early Warning process:PM records


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87

ProjectManager

Joint

ContractorNotifyProject

Manager

NotifyContractor

Question .Could it impact on?:- Time- Quality- Cost

??

Question .Could it impact on?:- Time- Quality- Cost

??

EitherPartyMay

identify

EventOccurs!

If yes

If yes

Late delivery - impact on existing service1 5 Note

Not affordable - re-design, impacting on programme3 5 Manage

Effect on programme 2 4 Be Aware

Temporary strucure - cost & programme2 4 Be Aware

O pe ra ti on al i mp ac t on r es t of s it e 3 5 Manage

Delay in programme 2 5 Be Aware

Delay in programme & cost 2 3 Note

Impact on services 3 5 Manage

outcome in aRisk Register

Meeting to agree:- How to avoid..- Seek solutions- Decide action plan

If reqd.

If reqd.

Early Warning clauses


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Clause Description

16.1 Both parties give an early warning as soon as theybecome aware of any event that could effect: Time Quality Cost Key Date (NEC3)

- Contractor can raise if his cost may increase (NEC3)- PM enters into a Risk Register (NEC3)

16.2 Either party may instruct the other to attend a riskreduction meeting.

Each may instruct other people to attend e.g.

subcontractors, client stakeholders.

Early Warning clauses


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(continued):Clause Description16.3 At the risk reduction (NEC3) meeting those who

attend co-operate in:1. Considering how the matter can be avoided

or reduced2. Seeking solutions that will bring advantage

to all those effected3. Decide upon actions to take

16.4 The PM records the outcome and gives a recordof this to the contractor.

NEC3 requires this record to be in the form of aRisk Register.

Programming under


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NEC3 NEC brought programming to the

forefront

Detailed programme from the outset Regular updates to the programme

which gives clear visibility as to where a programme is going

No more claims programme at the end of the project

Intends to remove the confrontational aspects of other forms of contract.

Programme clauses: 31.2


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Each programme (which requires acceptance by thePM) should include:

starting date, access dates , Key Dates andCompletion Date planned Completion order & timing of operations (includesstatement of how & resource utilised) planned Completion provisions for:

FloatTime risk allowance

other information which the WI requires



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Reasons for not accepting theprogramme include:

the Contractors plans are not practical the programme does not show the

required information It does not represent the Contractors plans realistically or It does not comply with the WI



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The Contractor submits a revisedprogramme for acceptance:

within the period for reply afterinstructed by the PM when the Contractor choosesand, in any case;

at no longer than the intervalstated in the Contract Data



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Each revised programme needs toinclude:

actual progress on each operation effects of implemented CEs

how the Contractor plans to deal withdelays & notified Defects any other changes the Contractor proposes to the Accepted Programme

Compensation events


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Events which if they do not arise from Contractors fault entitle the Contractor to be recompensed for the affect on

Prices, Key

Dates

and

Completion Date.

Under the NEC there are no

prolongation or loss and expanse claims

What are compensation

t ?


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events? It has to be listed as such in the

contract 19 are stated in clause 60.1 3 in options B and D

Also in secondary option clauses Z clauses

Compensation Event

E l


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Examples Clause 60.1

(1) PM gives instruction changing WI

(2) Employer does not allow access to and use part of the site

(12) Contractor encounters certain conditions

(13) A weather measurement is recorded less frequently than once in 10 years

Compensation Events


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Assessment of change is radically different a quick procedure to value change during the period of the contract

Based upon

the

pre

assessment

of

change based on forecast costs not tendered rates and prices

A Contractor should be neither better

nor worse off for an Employer driven change event occurring

Any extension of time & associated costs must be included in each CE

Compensation events


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4 stage process:

1. Notifying

2. Quoting

3. Assessing

4. Implementing

Each step is required to becarried out within definedtimescales

Schedule of cost components


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Compensation events priced in accordance with SCC

Full schedule used for options C,D & E

Shorter schedule for options A&B

SCC sets out what can be included e.g.

People costs Materials Equipment

Contract data


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Similar to appendix entries for JCT

CD part 1 completed by employer

CD part 2 completed by contractor

Example of completed CD within guidance notes (brown book)

NEC3 Caution.


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Not a contract for the bottom drawer

E.g. time barring on CEs..forContractor & PM

Main contractor can be at risk if the dont go back to back with sub contractors

Use of the NEC be prepared for more admin during the project!!


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EFFORT/

EXPENSE

TI ME

T r a d

i t i o n a

lCompletion

1-2 months

NEC

Professional Services contract


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May be used to appoint a supplier to provide design services (mainly

L46) A priced contract with activity

schedule

C target contract E time based contract

G term contract

Term Service Contract


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May be used to appoint a supplier over a period of time to provide a

service A priced contract with price list C target contract with price list E cost reimbursable contract

Adjudicators contract


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May be used to appoint an Adjudicator to decide disputes under the NEC

Framework contract.


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Used to appoint suppliers to carry out works or services on an as

instructed basis over a set term YORbuild ITT documents are based

on this contract & structured

around it. Uses the term supplier, rather than

contractor

Framework is preferred by LAsrather than contracts more flexible/ no commitment

Further information..


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Managing Reality Series of books written by NEC

experts well versed in using the NEC at the coal face

Practical tips e.g. How to calculate people overheads

& working area overheads Examples of hourly rate build up

using SCC vs working rule agreements


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Environmental

Management in the Construction Industry

P roject Target


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Summary

P roject Target

P roject Target


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Thank you for listening!

P roject Target

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Project Target Event Building Business for Our Region 18 Sep 09 Presentation

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