constructing west midlands martin merrix divisional manager, urban design
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Constructing West Midlands
Martin Merrix
Divisional Manager, Urban Design
Current arrangements Term contracts for non-housing repair and
maintenance works < £100k• five year duration commenced 2006• development of previous term contracts
Framework for Capital Works > £100k• Seven year duration commenced 2004• Innovative ‘partnership’ with three principal contractors
– the Birmingham Construction Partnership
Partnership benefits Approx £6-8 million tendering costs saved
per annum Better risk allocation and management Early contractor and supply chain involvement 62 strategic supply chain partners 221 jobs created / 200+ training opportunities Supports 1000+ jobs in direct supply chain
Partnership benefits Reduced pre-construction time Significantly improved time and cost certainty Collaborative procurement – joint purchasing Total joint working – client, end-users, designers,
contractors, supply chain
Early settlement of final accounts – no retention
Partnership benefits
Better design, WLC and sustainability Continuous improvement across BCP/client Safe sites with good welfare facilities Improved quality of construction Changed attitudes
What are the benefits?BCP COMPARISON TO NATIONAL KPI'S JUNE 2010
61%
46%
77%
84%
53%
59%
63%
92%
98%
86%88%
100%
95%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Cost Predictability(Design)
Cost Predictability(Construction)
Quality (Impact atHandover)
Client satisfaction Time Predictability(Design)
Time Predictability(Construction)
Safety
National Comparator
BCP - Whole Partnership
Initiatives: Achieving Excellence in Construction The partnering and integrated team approach: avoiding fragmentation
and adversarialism Development of long-term relationships: one off lowest cost is OUT Improved skills development and empowerment: effective Project
Sponsorship, collaboration, tools and ‘infrastructure’ Adoption of performance measurement indicators: if you are not
counting you are only practising; Public Sector Construction Database Use of tools for value and risk management and whole-life costing:
Gateway, AE4, Green Book Supplement, Fair Payment in Construction, Demand Management and market analysis
NAO expects this initiative to save £2.6 billion per annum
Performance reports produced from PSCD
ORGANISATION X AEC SpecificProject Performance and resulting benefits Your contribution to the overall savings of
£823m is £2.0m, which is calculated using the Org X average project performance figure of 6.7%.
Please consult your spending team or the HMT VfM team if you intend to include this as part of your Departments VfM savings and have any queries about its qualification.
Birmingham Construction Partnership 09/10 saving: £13.1m on £130m p.a.
Future Arrangement:Constructing West Midlands
What are we proposing?
Framework available to all public sector bodies in the West Midlands region
Covering all types and values of work Duration 4 + 2 + 2 years To build on the successes of the Birmingham
Construction Partnership
‘Constructing West Midlands’ Region
Framework Category Proposal
Category 2
Major Public Construction Projects
Major Programmes of Work
£0 – 500 k £500k upwards
Category 1
Repair and Maintenance works
Planned / Reactive
Minor Building works
Quality / Price split 50/50 Quality / Price split 60/40
Constructing West Midlands
Framework Lots
£0 – 500 k £500k upwards
Quality / Price split 50/50 Quality / Price split 60/40
Category 1Lot 1 - Legionella – North
Lot 2 - Legionella – South
Lot 3 - Elec. and Mech. - North
Lot 4 - Elec. and Mech. - South
Lot 5 - Building - North
Lot 6 - Building – South
One contractor per Lot and only North or South per discipline
Category 2Lot 7 – Capital Projects or
Programmes of work
Up to four contractors
Constructing West Midlands
Timeframe Industry feedback 8 September 2010 Issue OJEU contract notice 8 November 2010 PQQ issue 15 November 2010 PQQ returns 22 December 2010 Issue tender documentation 18 February 2011 Tender submissions - close 31 March 2011 Contract award 29 July 2011
Operational start 1 October 2011
Constructing West Midlands
Key Drivers
Collaborative and integrated approach / working between clients, contractors, SMEs, supply chains, suppliers, end users and so on
Delivery of responsive, efficient and cost effective building / construction services to participating public bodies – demonstrating measurable value for money
Key Drivers Continuous improvement, innovation and cost
reduction (process and delivery) year on year Delivering excellence in supply chain management Creation and maximisation of opportunities for
supply chain / SMEs local to the points of delivery
Creation of local jobs and training (direct and indirect) through ‘Targeted Recruitment and Training’ – delivering measurable outcomes (for example, 60 person weeks of new entrant training per £million spend to achieve NVQs)
Reduction of environmental impact, carbon and waste
Delivery of whole life value and whole life carbon throughout design and construction
Key Drivers
Supply Chains
First tier contractors to help develop supply chain Creation of opportunities for SMEs local to the point
of delivery including, for example, use of Find it in Birmingham
Early engagement of supply chain on projects Collaborative procurement for and by suppliers To support targeted training and recruitment
objectives