Financial Partnerships Unit

Obtaining Design Quality

in PPP Projects

David Fox

Turner & Townsend Group

Financial Partnerships Unit

Turner & TownsendGroupConstruction & Management Consultants

Obtaining Design Obtaining Design Quality in PPP Quality in PPP

ProjectsProjects

Scottish Executive Scottish Executive SeminarSeminar

30 November 200430 November 2004

making the difference

Ensuring Design Quality in the PPP Ensuring Design Quality in the PPP Process Process • What is driving the Design Quality?What is driving the Design Quality?

• Education and Quality StandardsEducation and Quality Standards

• Output vs Prescription (Mandatory/Non Output vs Prescription (Mandatory/Non Mandatory Requirements)Mandatory Requirements)

• Use of Model DocumentationUse of Model Documentation

• Consultation as a Design Tool in ProcurementConsultation as a Design Tool in Procurement

• Affordability is King Affordability is King

• Exemplar DesignsExemplar Designs

making the difference

What is Driving Design Quality - Many What is Driving Design Quality - Many Conflicting NeedsConflicting Needs

• Requirements of the EA and UsersRequirements of the EA and Users

• Mandatory Design Standards Mandatory Design Standards

• Competitive TensionCompetitive Tension

• Affordability Affordability

• Whole Life AssessmentWhole Life Assessment

• Transferred RiskTransferred Risk

• Risk of Performance DeductionsRisk of Performance Deductions

making the difference

Education and Quality Education and Quality StandardsStandards- They are not robust enough- They are not robust enough

We have:We have:

• Building RegsBuilding Regs

• Planning RegsPlanning Regs

• SE StandardsSE Standards

• British British StandardsStandards

• DFESDFES

We need:We need:

• Generic Space StandardsGeneric Space Standards

• Education Environmental Education Environmental StandardsStandards

• Education Education Accommodation Accommodation StandardsStandards

making the difference

Output vs Prescription - Output vs Prescription - We need the correct We need the correct balancebalance• We need Clear Accommodation/Service We need Clear Accommodation/Service

RequirementsRequirements

• Prescription gives certainty but retains the riskPrescription gives certainty but retains the risk

• Use Mandatory and non Mandatory RequirementsUse Mandatory and non Mandatory Requirements

• Mandatory - Output standards designed for full Mandatory - Output standards designed for full periodperiod

• Non Mandatory - Detail sets the Evaluation Non Mandatory - Detail sets the Evaluation StandardsStandards

• Get the Standard right through Regular Mid Tender Get the Standard right through Regular Mid Tender

MeetingsMeetings

making the difference

Use of Model DocumentationUse of Model Documentation

• Allows Bidders to Major on Project Allows Bidders to Major on Project SpecificsSpecifics

• Familiar Documents let Bidders Familiar Documents let Bidders concentrate on Designsconcentrate on Designs

• Models reflect Government Risk ProfileModels reflect Government Risk Profile

• Bidder Friendly DocumentationBidder Friendly Documentation

• Prioritised to Meet Client RequirementsPrioritised to Meet Client Requirements

• Commercially RealisticCommercially Realistic

making the difference

Output Specification StructureOutput Specification Structure

• Designed to reflect Executive Risk ProfileDesigned to reflect Executive Risk Profile

• Accommodation RequirementsAccommodation Requirements

– Accommodation SchedulesAccommodation Schedules

– FM RequirementsFM Requirements

• Minimising Disruption/ConstraintsMinimising Disruption/Constraints

• Design StandardsDesign Standards

• Room Data SheetsRoom Data Sheets

• More than one way to skin this catMore than one way to skin this cat

• Designed to focus on Council PrioritiesDesigned to focus on Council Priorities

making the difference

Exemplar DesignsExemplar Designs

• DFES/PfS Designs – Sets standards but DFES/PfS Designs – Sets standards but unaffordableunaffordable

• Project Reference DesignsProject Reference Designs– Following Consultation confirms Affordable practical solutionFollowing Consultation confirms Affordable practical solution

– Specification ties in with exemplar and OBC - confirms affordabilitySpecification ties in with exemplar and OBC - confirms affordability

– Users must understand the context and the processUsers must understand the context and the process

– Careful programming : Spec.-design-consultation-affordability Careful programming : Spec.-design-consultation-affordability

– Role of Reference Design in Procurement ProcessRole of Reference Design in Procurement Process

– Not mandatory but standard against which quality evaluatedNot mandatory but standard against which quality evaluated

– Good Bidder Consultation ensures understanding and no surprisesGood Bidder Consultation ensures understanding and no surprises

making the difference

Consultation as a Design Consultation as a Design ToolTool

• Regular Bidder Meetings are a MustRegular Bidder Meetings are a Must

• More Comprehensive Expectations in a non More Comprehensive Expectations in a non Mandatory FormMandatory Form

• Council Standing Orders can be an IssueCouncil Standing Orders can be an Issue

• Mould Designs to suit RequirementsMould Designs to suit Requirements

• Ensure All bids meet RequirementsEnsure All bids meet Requirements

• Detailed Development when Preferred BidderDetailed Development when Preferred Bidder

• Groups will not all be Correct First TimeGroups will not all be Correct First Time

• Don’t Corrupt the CompetitionDon’t Corrupt the Competition

making the difference

Affordability is KingAffordability is King

• Major movement in build costsMajor movement in build costs

• Robust PSC - Build a Comprehensive PictureRobust PSC - Build a Comprehensive Picture

• The Use of Sample DesignsThe Use of Sample Designs

• Ensure Spec. Reflects Award – Benchmark Ensure Spec. Reflects Award – Benchmark costscosts

• Clearly Set Out Affordability TargetsClearly Set Out Affordability Targets

• Maintain Competitive Pressures Maintain Competitive Pressures

• High level of ConsultationHigh level of Consultation

• Affordability Targets are SacrosanctAffordability Targets are Sacrosanct

making the difference

Ensuring Design Quality in the PPP Ensuring Design Quality in the PPP Process Process • Influence the Drivers to work on your behalfInfluence the Drivers to work on your behalf

• Education and Quality Standards - If not Education and Quality Standards - If not available adopt best practiceavailable adopt best practice

• Fundamentals of Project FeasibilityFundamentals of Project Feasibility

• Output vs Prescription - Get the Balance rightOutput vs Prescription - Get the Balance right

• Reference Designs or provide reference projectsReference Designs or provide reference projects

• Use of Model Documentation - Project SpecificsUse of Model Documentation - Project Specifics

• Consultation is a Design Tool Consultation is a Design Tool

• Managing AffordabilityManaging Affordability