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Construction Collaboration in the South East
Events:
News itemsCase Study: Canterbury College Block 17 - Page 4
Autumn 2014
Regional framework achieves combined project value of £1.5 billion
The iESE Combined Forum 2014 - Page 11
Having just passed the third year anniversary of the second generation framework for large building projects and programmes of work. The iESE SEal Regional framework continues to be a popular public sector procurement route.
The second generation framework has been used by 55 clients delivering 206 projects with a combined value of £1.5b.
Cost benefits of £52m have been achieved, consisting of £37m in project savings and £15m in procurement administration savings. Clients are on average benefitting from a 3.5% saving overall.
£52m cost benefitshave beenachieved
Collaborative working is at the heart of a successful project and project delivery teams (client and
contractor) are averaging performance scores at pre and post construction of 80% and above.
Final user satisfaction scores are averaging 90% plus, a very strong endorsement
from our end users.
90% end user satisfaction
News in Brief: Transition into the Southern Construction framework (SCF) - Page 6
News in Brief: NACF plays a unique role in leading best practice - Page 9
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(Continued from front cover). By setting KPIs for localism, iESE has cemented an ethos to support local communities. Continually increasing figures confirms the framework contractors commitment to supporting local industry with:
Regional framework achieves combined project value of £1.5 billion
79%
of the total
spend by
clients with
SMEs
59% of
labour use
is local
70% of
the spend
on SMEs is
with local
businesses
80 young
people
employed
on full-time
apprenticeship
schemes
94% of
sub contract
packages
employing
SMEs
The framework continues to realise its ambition to encourage public sector clients to group projects into programmes of work and offer even greater value for money.
By adopting the CITB client based approach to apprenticeships, the iESE framework has further committed to supporting training opportunities for young people. The success of the system is shown by 3654 trainee weeks being delivered to date. This is achieved through the iESE Shared Apprenticeship scheme and the contractors own training schemes.
Market update -
adapting the framework to a challenging market
iESE Retail price index (RPI) advised
Hampshire County Council issued commercial bulletin no.3 advising of a 2.6% RPI increase for the period 1st August 2014 - 31st July 2015 for mini-competition staff and preliminary costs. This follows 3.3% for 2013/14 and 2.8% for 2012/13.
Construction framework South-West (CFSW)
Our Southern Construction framework Partner CFSW has now procured over £450m worth of projects in the south-west. On the 12th November 2014 CFSW will be staging a major Health and Safety Exibition for contractors, sub-contractors and clients.
Sub-contract market volatility
Prices and lead times in the sub-contract market remain very volatile. Jumps in market prices and significant increases in some lead times are being driven in general by the strong resurgence in demand in the construction industry with the housing sector in particular driving higher demand. Some sub-contract packages have seen as much as 60% increase year on year with brickwork recently experiencing an increase from c £25m2 to c £40m2.
Shortages in critical plant items such as cranes and piling adds further pressure to costs and programmes. Such volatility emphasises the need for strong project collaborative working, especially during the pre-construction phase, to ensure client and contractor Quantity Surveyors have an agreed and realistic cost plan and programme prior to package procurement.
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Case Study: Canterbury College Block 17
Project value:£6.6m
Client: Canterbury College
Procurement type: 2 stage Design and Build
Contract period: 62 weeks including demolition
Project manager:AECOM
Contractor: Morgan Sindall
Form of contractJCT 2011
Size:3300sqm
Apprentices Employed7
BREEAM RatingVery good
Canterbury College in Kent, asked for a vibrant heart for their new ‘Block 17’ campus building. Replacing their outdated Herring building, the design introduced an atrium space through the building. Upper floor accommodation is dedicated for training space, independent living and skills.
The ground floor reception area and café is separated from the above to maintain privacy and security, this space also acts as an exhibition and social space for the students. To allow easy access, a pedestrian link connects the adjacent St Nicholas special needs accommodation. The construction standardised the building of other blocks at the college using the same windows, lock suiting and swegon air handling units.
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Contacts:
Morgan Sindall: David [email protected]
Neil [email protected]
Key Challenges
• Logistics related to a land-locked site within the centre of the campus
• Coordination and integration with existing M&E systems
• Achieving practical completion to allow the college’s FFE fit-out prior to the term start in September 2013
• Delivery of the project within budget
How these were delivered
• Procurement via iESE framework in 5 weeks
• Utilising lessons learnt from previous schemes provided a good foundation as a benchmark and saved time giving a heads-up on previous issues
• Early engagement and constant liaison with the college including weekly meetings and careful planning of all vehicle and staff movements
• Implementation of specific subcontractors at an early stage enabled design development within tight time scales and best value
• Collaborative approach to agreeing contract sum and required VE which continued throughout the project
• Second stage achieved in just 16 weeks from tender receipt to starting on site
• Fibre reinforced concrete floors were used rather than steel mesh, which allowed the floors to be poured quicker reducing the programme time
• The installation of PV cells and connection to existing combined heat and power (CHP) plant offering a more sustainable solution and lower running costs
• Community engagement and having learning experience on site was used to the College’s advantage as a real live project to visit – the College delivers construction courses
• Introduction of BIM/3D modelling providing virtual walkthrough of the building and earlier identification of the few services clashes encountered
• £60k value added savings achieved from collaborative working and through the early supply chain engagement
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News in brief
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Transition into the Southern Construction framework (SCF)
The current South East and London (SEaL) iESE Construction framework expires in July 2015 and will be succeeded by the Southern Construction framework (SCF) consisting of South East, South West and London. The uniting of SEaL, Construction framework South West (CFSW) and London Construction Programme (LCP) will:
Drive efficiencies of design and construction resources
Improve the effectiveness of design development
Improve construction and supply chain processes
Benefit from collective framework governance
Maximise environmental performance and sustainability
Promote a strong and competitive local economy
Drive competition and cost savings
The SCF is currently being procured with the invitation to tender (ITT) being completed during the Autumn 2014. ITT evaluation, report,
issue of notification letters and stand still period will take place mid November to mid March 2015 leading to publication of contract award in April 2015. There then follows a month mobilisation period for contractors with the framework ready for going live late April / early May 2015.
Changes to SEaL procurements
During the SCF ITT tender period of Autumn 2014 framework capacity for new SEaL procurements will be reduced. Between August 2014 and the end of March 2015 there are two key windows for clients to procure pre-construction agreements via SEaL, i) 17th November - 17th December 2014 ii) 5th January – end March 2015. Clients wishing to use SEaL need to provide the SEaL framework management team at least 4 weeks notice of their intent, and plan to run procurements between the above dates. The deadline for the last issue of SEaL project notifications is mid March 2015. Procurement of pre-construction agreements, via the SEaL framework, must then be completed (signed pre-construction agreement) by 19th June 2015. The SEaL framework will continue to be proactively managed by the Framework Management team with all projects being monitored until successful completion of the final Gateway 4.
New framework specifications
• The SCF – SE7 will cover the existing SEaL region, excluding London, and procure projects of £4m and above with no upper limit.
• The SCF - LCP will cover all London Boroughs for projects of £5m and with no upper limit.
• SCF - CFSW will cover the existing CFSW region and procure projects of £1m and above with no upper limit.
• Clients will be advised of the new SCF framework when it goes live.
• The Framework Management teams will ensure a seamless transition from the second generation iESE frameworks to the new framework. SCF will have revised output based KPIs.
• The framework access agreement and framework agreement is being updated to reflect the strategies and objectives of the SCF. As this is a new framework agreement all clients of SCF will be required to sign up to the revised framework access agreement prior to accessing SCF.
News in brief
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SAVE Scheme – Continued growth in a competitive market
The SAVE Scheme (Strategic Alliance for Value and Efficiency) will shortly enter its fourth year as part of the Generation 2 SEaL framework. Renewal invitations are being issued to each subcontractor in the supply chain, demonstrating a healthy appetite to continue the strong performance of the Scheme.
Performance data shows a doubling of opportunities since our March report, with package tender invitations to SAVE suppliers reaching 48% won in open competition, this compares to an industry average win rate of 20%.
Performance data:• 324 tender opportunities issued to SAVE suppliers• c. 50% won by the SAVE supply chain
The above performance compares well in the increasingly competitive market place, which is seeing significant material and labour price rises and lead-in times.
The majority of added value benefits seen by our clients are derived from early contractor and supply chain engagement, our data collation shows there is double the benefit being gained when contractors are engaged at RIBA stages A-B, rather than later at stages C-D.
Nomination for client of the year - Cluster Programme office
The Cluster Programme Office has been recognised as a top client after receiving a nomination for “Client of the year” in the Constructing Excellence 2014 Awards, the award was won by the Ministry of Justice.
In addition to this the Cluster Office has also been recognised as a case study by the Cabinet Office, as part of their Government Construction Strategy. The Government Construction Strategy aims to change the relationship between clients and industry.
The trial projects perform a central role in delivering the strategy’s sustainable 15 to 20% reduction in costs. You can access the case study at; www.gov.uk/government/publications/procurement-trial-case-study-property-services-cluster-iese.
Watch this space for an updated Benefits Report from the Cluster Programme Office. Due to be released in September, it will provide significant information on the benefits reported to date across the 54 current projects delivered through the Cluster Programme Office.
NACF plays a unique role in leading best practice
Public Authority Regional Construction frameworks are currently delivering around £4 billion of construction work for over 250 local and public authorities throughout England and Wales.
Framework managers representing eleven regional construction frameworks have come together in the National Association of Construction frameworks (NACF) to play a unique role in leading the ongoing adoption of best practice in local government. Building on the successes to date of the Improvement and Efficiency Partnerships (IEPs), the NACF is working together with the Local Government Association (LGA) to help shape the future of the national procurement strategy - construction workstream.
The regional frameworks represented by the NACF have actively supported implementation of the Government Construction Strategy by:
• Contributing to the Construction Cost Benchmarking publication
• Carrying out trial projects for Two Stage Open Book model of procurement
• Providing support to the implementation of “BIM” and “Soft Landings”
• Driving Fair Payment in the supply chain
• Co-authored the “Effectiveness of frameworks” publication
• Contributed to the development of PAS 91
The primary aims of the NACF going forward are to:
1. Be an advocate for the professional arrangements for construction procurement that exist in local government, and to provide a point of focus for central government
2. Provide a vehicle for the continuous improvement of construction in the public sector ensuring we are always seen as best in class for design, procurement and delivery.
3. Ensure that we continue to measure and monitor what we do to demonstrate we are achieving our key aims, and are delivering best value to the public sector
For more information, please visit the website www.nacframework.org.uk
Events 2014
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For more information about future events please visit: www.iese.gov.uk
News in brief
Regional framework terminology
Here is a quick guide to some of the various acronyms and values associated with South East construction frameworks.
Main frameworks
SEaL: South East and London. This is the main framework currently in use and is available to various authorities within the region (See image below). It’s designed for projects with a value of £1 million+.
CFSW: Construction framework South West. This is comparable to SEaL but open to South West authorities.
SCF: Southern Construction framework. When the SEaL and CFSW frameworks expire, they will merge to form this new framework mid-2015. This is to cater for larger value projects.
Smaller Value frameworks
ICF: Intermediate Construction framework. This framework is due to be procured imminently. It will cover schemes with values from £1 million - £4 million. It will be available for use in Hampshire, Berkshire and Surrey.
LCF: Local Construction framework: This framework is in place for smaller value schemes up to a value of £1.5 million. It is available for use in Hampshire, Berkshire and Surrey.
W: www.iese.gov.uk E: [email protected] T: 01962 845942
iESE Combined Forum 2014
iESE will be hosting the combined forum scheduled for November 2014.
It will be an opportunity to review the framework, discuss current issues with clients and contractors. Learnings from the forum will continue to provide improvement and build on the framework successes.
It will also highlight the collaborative approach and the opportunities in a variety of business sectors:• Civic / Community• Education• Police / Fire and Health Services• Housing / Supported Housing• Sports / Leisure
Look out for details of the next forum’s date on our website.
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Contact us:For more information about how iESE could help you with your construction plans, please contact the team.
Please also contact us if you would like a copy of this newsletter in an alternative format such as large print or braille.
01962 845942
www.iese.gov.uk
