A new suite of construction frameworks Keith Heard

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 SE 7 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

SE SUB REGIONAL FRAMEWORKS Tier 3 (LCF) 3 Lots (18 contractors) £ 1 to £ 1. 5 m Tier 2 £ 750 k to £ 6. 5 m (11 contractors) Tier 3 £ 1 to £ 750 k (11 contractors) Tier 2 (ICF) 1 Lot (10 contractors) £ 0. 5 m to £ 4 m Tier 3 (Minor Works) Work in progress Tier 2 £ 750 k to £ 5 m (8 contractors) Tier 3 £ 50 k to £ 750 k (8 contractors) Tier 4 £ 1 to £ 50 k (6 contractors)

Complementary frameworks for capacity • Issues with SEa. L framework with interest in smaller projects (especially D&B) • Analysis showed problem most acute for projects £ 1 m to £ 4 m • Hence two complementary frameworks Ø SCF (SE) for projects > £ 4 m v 8 contractors Ø ICF (Hampshire) for projects £ 0. 5 m to £ 4 m v 10 contractors • Exactly the same operating model

Principles – 2 stage approach Design 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 Construction Construct to agreed lump sum 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 Ø Framework Director Ø 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 Ø 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 SCF ICF 1. 2. 3. 4. 5. 6. 7. 8. 1. Amiri 2. Beard 3. Interserve 4. Kier 5. Lakehouse 6. Longcross 7. Midas 8. Osborne 9. Raymond Brown 10. Stirland BAM Galliford Try Kier Mace Midas Morgan Sindall Wates Willmott Dixon

The Mini Competition Process Opportunity pipeline published – M 2 i 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 MC 2

Principles of Mini Competition 1 Confirmation of (Questions may be weighted): • Preference for type of project • Ability to deliver (capability) • Capacity of contractor and supply chain • Ability to add value Self scored responses to pre-set criteria, supported by word limited written evidence. Evaluated by framework manager, who agrees outcome with project officer.

Outcome of Mini Competition 1 Preferred outcome is for three contractors to proceed to MC 2. • Sensitive to contractor right to appeal • Sensitive to officer view on self scoring • May be more than three in MC 2 Framework Manager to feed back to unsuccessful contractors

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 Sub categories not weighted – single commercial score Principles of Mini Competition 2

Principles of Mini Competition 2 Technical – SCF 50 to 80% ICF 70% TBA • 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 SCF ICF

Award and feed back • Project Officer to award ØAgreed costs ØAgreed programme ØPre construction agreement • Project Officer to feed back to unsuccessful contractors

Key gateways

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

Who we are Keith Heard Senior Programme Manager Edward Currie Regional Programme Manager L. Howell M. Thomas N. Midmer C. Henderson Vacancy Regional Programme Manager Vacancy T. Moss K Larrive Framework Team Programme Management Team