Intelligent Procurement Lessons and pitfalls Making a Difference - Construction - Stewart Heaney Divisional Director Construction, CPD
Making a Difference Construction Procurement Stewart Heaney Divisional Director Construction and Advisory
Investment in Infrastructure Construction industry annual turnover 2.67bn Approximately 50% of investment is Public Sector Construction procurement accounts for significant part of Executive s budget Importance of delivering best value for money projects
Policy Framework for Construction Procurement Northern Ireland Guide to Expenditure Appraisal and Evaluation Procurement through a Centre of Procurement Expertise (CoPE) Gateway Review Process Achieving Excellence in Construction Sustainable Procurement in Construction Policy on Architecture and the Built Environment Procurement Guidance Note 06/10 Procurement of Construction Works and Services
Achieving Excellence in Construction Achieving Excellence in Construction initiative was launched to address shortcomings in client performance Sets out a route map for improvement of the construction client through better - Management - Measurement - Standardisation - Integration
Achieving Excellence Procurement lifecycle
Project Organisation Identify project objectives and agree performance measures Early involvement from CPD/CoPE Identification of stakeholders Fit for purpose governance framework clearly defined routes to escalate issues to senior management Key roles and responsibilities Individuals with available time, skills and track record Access to external sources of expertise where necessary
Roles & Responsibilities Independent Client Advisor Investment Decision Maker Senior Responsible Owner Project Sponsor Project Manager Project Board User Group Integrated Supply Team
Project Organisation Project Programme Risk Management Strategy Integration of Government policy and initiatives Economic Appraisal and budget SRO approval of project brief and execution plan Assurance measures Gateway Review or for low risk projects a Quality/Cost/Time [QCT] Review
Procurement Strategy SRO approval to move to the next stage Appoint Project Manager & Professional Advisors Design and construction should not be considered in isolation - an integrated approach ensures early involvement of all team members Client Team SRO, Project sponsor PM Supply Team Consultants Contractors Specialist subcontractors
Outline Design SRO must address all Gateway Review / QCT issues Regular Project Manager reports Risk Register Change control during design development Review project requirements against business needs Value management Full Business Case
Design Quality Good design takes account of functionality, appropriate build quality and impact Good design will provide whole life value for money It is at the design stage that most can be done to optimise the value of a facility to its users and the public Policy on Architecture and the Built Environment
Health and Safety BUILDSAFE NI Government Construction Client Action Plan 2011 Make health and safety a business priority when commissioning construction projects Select supply teams with demonstrable commitment to health and safety Comply with Buildsafe-NI initiative Set requirements for healthy, safe working conditions and facilities on construction sites
Sustainability Public sector procurement provides an opportunity to deliver wider sustainability requirements Sustainability objectives can be incorporated into contracts Sustainability Social Economic Environment
Procurement Process - industry engagement Government Construction Clients Trade Unions Construction Industry Group
Procurement Process - Visibility of Opportunities Delivery Tracking System Project description, estimated timescales and contact details Sign up for automated updates Zoom and pan capability from region-wide to street level detail. www.isni.gov.uk
Procurement process effective and efficient selection Standard PQQ for Works Contracts - Financial information only required if contractor is not registered with Constructionline proportionate levels - Information on health and safety only required if the contractor has not been assessed as satisfactory within the last 12 months - Each CoPE will accept the health and safety assessment completed by any other CoPE - Encourage smaller firms to come together to bid for larger projects as a consortium
Procurement process- tender stage Effective and efficient tender process Short-list a minimum number of firms Design projects typically to RIBA stage D to reduce tender design costs Best value for money Contracts to be awarded to Most Economically Advantageous Tender (MEAT) not Lowest price Contractors must deliver on the quality submission and sustainability requirements - unemployed, apprentices, etc
Procurement process standard form of contract Modern family of standard contracts Embraces the concept of partnership Encourages employers, designers, contractors and project managers to work together through both a powerful management tool and a legal framework NEC3 complies fully with the AE principles
Procurement Process - supply chain practice Fair payment - Code of Practice for Government Construction Clients and their Supply Chains and a Fair Payment Charter to be signed by the client, contractor and subcontractors - 360 feedback on monthly payment progress - Contractor reports to PM on payments made at each meeting - Contractor to provide PM with contact details for supply chain - PM carries out periodic checks with subcontractors on the payment performance of the contractor
Post Award Contract Management Good preparation The right contract Proactive project management Relationship management Continuous improvement People, skills and continuity Change management
Capital funded - PRONI HQ
Grant funded - Giant s Causeway Visitor Centre
Maintenance contracts
Critical success factors Early involvement of CPD or Centre of Procurement Expertise Client commitment to best value for money, including health and safety, sustainability and design quality Visible support of senior management Adequate resources allocated to deliver the project Commitment throughout the integrated project team to clearly defined objectives Robust project and contract management supported by clear and short reporting lines
Intelligent Procurement Lessons and pitfalls