OJEU and decorating services. Your guide to specifying effectively and compliantly

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1 OJEU and decorating services Your guide to specifying effectively and compliantly

2 02 03 What is OJEU? Decorating services contracts over a certain size need to comply with EU Procurement Directives and be published in the Official Journal of the European Union (OJEU). These procurement directives were implemented into UK national law via a set of regulations which came into effect on 31st January Does complying with these directives compel you to specify vaguely and risk the wrong result? This document aims to help you avoid the potential pitfalls of OJEU and achieve the end result you want. It is split into 3 sections: Section 1 Information about OJEU Section 2 What to consider when putting together an OJEU compliant tender Section 3 How AkzoNobel can help 1. Why OJEU? The purpose of the EU Procurement Directives is to open up public procurement to fair competition, enabling all suitable suppliers and contractors within the EU to tender for any given contract in a transparent way. When does OJEU apply? The Regulations apply to bodies that are contracting authorities. The definition of contracting authorities is wide and is intended to include those bodies that spend public money. It includes: 1. Certain public bodies expressly listed in the Regulations (including Government departments, Local Authorities, NHS Trusts and the MOD); and 2. A catch all category of other bodies governed by public law (including registered social landlords and housing associations). A contracting authority needs to comply with the Regulations when issuing a tender for: a proposed public supply contract (supply of goods) a proposed public works contract (works = construction work) a proposed public services contract The Regulations only apply when the estimated value of the contract equals or exceeds the relevant threshold. The current thresholds are set out in the table below. Supplies & Services Works What OJEU prohibits When writing the technical specification for a painting project that has to comply with the Regulations, requirements must be specified avoiding brand names or any reference that favours or rules out particular providers, products or services. What OJEU allows The good news from a product perspective is that the Regulations do allow performance specifications. They do also allow you to specify clearly the criteria you want the tendering contractors to fulfil. This document will give you guidelines on how to get the best results for both product and contracting services whilst still complying with the Regulations. 1. Public Bodies listed in the Regulations (government departments, local authorities, NHS Trusts, the MOD etc.) 113,057 4,348,350 The OJEU process Initially the public authority or organisation issuing the tender publishes an OJEU notice briefly describing the proposed contract If you look ahead, you should be able to procure intelligently, but still within the regulations Andrew Vickery, Trowers & Hamlins LLP 2. Other public sector contracting authorities (registered social landlords, Housing Associations etc.) 173,934 4,348,350 NB. For more detailed information relating to the Regulations criteria, go to The thresholds are amended every two years, so the current thresholds will be revised with effect on 1 January If a contract is caught by the Regulations the contracting authority must follow certain rules relating to advertising, tendering and awarding the contract. Potential suppliers respond to the notice with an expression of interest The tendering authority send out a pre-qualification questionnaire (PQQ) Potential suppliers complete and return the PQQ Applicants whose PQQ is judged suitable are invited to tender for the contract

3 Creating a tender that achieves a quality result There are a number of important elements of the tender that can influence the project outcome including scope, maintenance cycle, community engagement, product quality and the services from both your painting contractor and paint supplier partner. Initially agreeing what is and isn t included and what maintenance cycle is required beforehand will help ensure that the appointed contractors and their supply chain can deliver. Choosing the right painting contractor Establishing the capability of the tendering painting contractors is crucial. Some potential criteria could be: Relevant experience Technical expertise and specialised skills Educational and professional qualifications Number of staff and resources to deliver the contract Quality control and workmanship standards Waste management practices Sustainability and diversity credentials References, endorsements and accreditations One route for ensuring a contractor s technical ability at invitation to tender or PQQ stage is to ask: Are you a member of an approval scheme in which members are independently audited for business processes, sustainable practices, and for workmanship on-site on an annual basis? Securing the right paint supplier Similarly it is important to establish the criteria of the paint supplier, especially in terms of product quality and service. Product Quality and Whole Life Cost Paints differ greatly in quality and cost. When considering cost, the whole product life should be considered, not just the initial application cost. For example, extending a project s maintenance cycle by two years can dramatically lower the overall expenditure on maintenance. In pursuit of a low whole life cost, specifiers can insist on a precise interval between maintenance cycles. The surest way to specify the right paint is to insist upon specific performance criteria taking whole life cost into account. Here are two examples of performance criteria for exteriors a critical area to get right: An exterior gloss system with a flexible vapour permeable 2 coat paint system providing controlled uptake and release of moisture to the substrate, inhibiting external mould growth and carrying an 8 year BBA certification. An exterior acrylic masonry paint containing a mouldinhibiting fungicide, shower resistant in 30 minutes after application and carrying a 15 year BBA certification. NB. For more examples of performance criteria, go to Insist on exceptional service It is important to state very precisely which services and support levels you require from the proposed paint supplier and contractor. This will ensure that you get suppliers that can deliver what you need. Turn to page 7 for more details of the support AkzoNobel can provide. Direct Supply If you currently purchase a significant quantity of paint (or would like to do so) for directly employed labour or for your contractors, you could also consider putting together an OJEU compliant contract for direct supply (a public supply contract). The quality of the product and allied services are critical it s important that the supplier is included as a vital supply chain partner Years Standard Gloss Specialist Exterior Gloss This chart shows how specifying a product with a maintenance cycle of up to 8 years, or even 6 years, can significantly lower a project s whole life cost in comparison with products offering a 4 year maintenance cycle. Lee Maskell, Partner, Faithorn Farrell Timms

4 How we at AkzoNobel can help Work in partnership with us and make the most of AkzoNobel resources starting at the earliest possible stage. That s the simplest, surest way to create an OJEU compliant tender that will assure all stakeholders of the right result. Our experience, expertise and resources can make a significant contribution to the success of a project, and it s great when our customers involve us at every stage Andy Brewin, National Business Manager, Social Housing, Health & Education Product Quality and Performance Specifications For many years we have been recognised as a manufacturer of high quality paints that provide assurance and confidence and hit exacting performance standards. Your local AkzoNobel Specifier Account Manager can provide precisely worded performance specifications. Whole Life Cost and Value Engineering Repairs and frequent redecoration add significantly to the cost of the maintenance of a building. We can provide data to help you secure the longest possible maintenance cycle, and effectively specify the products that will achieve the objective. Similarly we can help you maximize what can be achieved on a limited budget through a variety of value engineering techniques. Specification Services We offer a comprehensive range of support services to meet the needs of the professional specifier that can be agreed with your local AkzoNobel Specifier Account Manager: Bespoke or generic performance specifications with detailed information on preparation and finishing Attendance at pre-contract, progress, and project sign off meetings On-site quality inspections backed by written technical reports Project sign off Benchmarked quality standards with clearly stated KPIs Substrate testing to determine fire risk and establish required standards Training of contractors and clients staff Quality Assured Painting Contractors As mentioned previously, at invitation to tender stage it could be useful to ask whether a contractor is a member of a quality-focussed approval scheme. The Dulux Trade Contract Partnership is a network of independently assessed, quality assured painting contractors. The on-going assessment programme and Code of Practice demonstrate how Dulux Trade Contract Partners are working to a consistently contract high standard of workmanship and professionalism. Colour Expertise We provide expert colour advice and colour scheming services that conform to the Equalities Act where required. Our colour schemes are presented in an inspiring way to help you create that wow-factor for your clients and/or tenants. Managing Waste Effective waste management during the decorating process is a key aspect of sustainability. In partnership with AkzoNobel, contractors can offer a number of initiatives including: Paint can recycling with nothing going to landfill On-site systems for washing water-based paints from decorating equipment with no paint washings entering the drainage system Procurement Frameworks For smaller organisations, resource limitations may make it difficult to put together a compliant contract. Why not link into to a procurement framework agreement where OJEU compliance criteria have already been met? We can create introductions to key individuals.

5 Making a positive impact in local communities Specifiers are increasingly incorporating criteria into their tender processes driven by the recent Public Services (Social Value) Act (2012) probing how the successful contractors and supply chain partners plan to positively impact on the local communities they operate in. AkzoNobel can enable your project to enhance its social engagement profile by associating with initiatives such as: Community Repaint using left over paints to help local good causes Supporting charities including Outward Bound Trust and Alzheimers Society Encouraging decorators of the future via the Dulux Decorator Centres Apprentice of the Year competition Promoting science for young people via the Young Scientist of the Year competition Supporting community projects via the Dulux Let s Colour campaign T _ Meet the experts in Social Housing and Public Sector paint solutions This small and dedicated team has years of experience and a deep understanding of the needs of the various departments within public sector and they are backed up by the largest team of local technical paint specification experts in the country. Andy Brewin National Business Manager, Social Housing, Health & Education Joe Baxter National Account Manager, Education John Benjamin National Account Manager, Social Housing Ian Norburn National Account Manager, Healthcare To get in touch please call the Dulux Trade Technical Advice Centre on or duluxtrade.advice@akzonobel.com and they will be happy to put you in contact with the right person in our team. All information concerning these products and/or all suggestions for handling and use contained herein are offered in good faith and believed to be reliable. AkzoNobel Functional Chemicals and its affiliates, however, make no warranty as to the accuracy and/or sufficiency of such information and/or suggestions, as to the products merchantability or fitness for any particular purpose, or that any suggested use will not infringe any patent. Nothing contained herein shall be construed as granting or extending any license under any patent. Buyer must determine for himself, by preliminary tests or otherwise, the suitability of these products for his purposes. The information contained herein supersedes all previously issued bulletins on the subject matter covered. The user may forward, distribute and/or photocopy this document only if unaltered and complete, including all of its headers and footers, and should refrain from any unauthorised use. You may not copy this document to a website. Dulux, Dulux Trade, Trade & Trusted, Dulux Decorator Centres, Dulux Let s Colour, Glidden Trade, Cuprinol, Hammerite, Sikkens, Polycell Trade, Contract Partnership, AkzoNobel and the AkzoNobel logo are trade marks of the AkzoNobel group AkzoNobel Further Information Sources Key EU Directive is 2004/18/EC Relevant UK legislation bringing EU directive into force in the UK Public Contracts Regulations 2006 (with amendments 2009 and 2011). Public Contracts Regulations 2006 and the Public Procurement (Miscellaneous Amendments) Regulations The relevant regulation dealing with Technical Specifications is Regulation AkzoNobel Functional Chemicals, all rights reserved Tomorrow s Answers Today is a trademark of AkzoNobel N.V.