constructing west midlands

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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 - PowerPoint PPT Presentation

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  • Constructing West MidlandsMartin MerrixDivisional Manager, Urban Design

  • Current arrangementsTerm contracts for non-housing repair and maintenance works < 100kfive year duration commenced 2006development of previous term contractsFramework for Capital Works > 100kSeven year duration commenced 2004Innovative partnership with three principal contractors the Birmingham Construction Partnership

  • Partnership benefitsApprox 6-8 million tendering costs saved per annumBetter risk allocation and managementEarly contractor and supply chain involvement62 strategic supply chain partners221 jobs created / 200+ training opportunitiesSupports 1000+ jobs in direct supply chain

  • Partnership benefitsReduced pre-construction timeSignificantly improved time and cost certaintyCollaborative procurement joint purchasingTotal joint working client, end-users, designers, contractors, supply chainEarly settlement of final accounts no retention

  • Partnership benefitsBetter design, WLC and sustainabilityContinuous improvement across BCP/clientSafe sites with good welfare facilitiesImproved quality of constructionChanged attitudes

  • What are the benefits?

    OVERALL BCP COMPARISON

    0.610.92

    0.460.98

    0.770.86

    0.840.88

    0.531

    0.590.95

    0.631

    National Comparator

    BCP - Whole Partnership

    BCP COMPARISON TO NATIONAL KPI'S JUNE 2010

  • Initiatives: Achieving Excellence in Construction The partnering and integrated team approach: avoiding fragmentation and adversarialismDevelopment of long-term relationships: one off lowest cost is OUTImproved skills development and empowerment: effective Project Sponsorship, collaboration, tools and infrastructureAdoption of performance measurement indicators: if you are not counting you are only practising; Public Sector Construction DatabaseUse of tools for value and risk management and whole-life costing: Gateway, AE4, Green Book Supplement, Fair Payment in Construction, Demand Management and market analysisNAO expects this initiative to save 2.6 billion per annum

  • Performance reports produced from PSCDORGANISATION X AEC SpecificProject Performance and resulting benefitsYour 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 regionCovering all types and values of workDuration 4 + 2 + 2 yearsTo build on the successes of the Birmingham Construction Partnership

  • Constructing West Midlands Region

  • Framework Category Proposal

    Category 2Major Public Construction ProjectsMajor Programmes of Work

    0 500 k500k upwardsCategory 1Repair and Maintenance worksPlanned / ReactiveMinor Building worksQuality / Price split 50/50Quality / Price split 60/40Constructing West Midlands

  • Framework Lots

    0 500 k500k upwardsQuality / Price split 50/50Quality / Price split 60/40Category 1Lot 1 - Legionella NorthLot 2 - Legionella SouthLot 3 - Elec. and Mech. - NorthLot 4 - Elec. and Mech. - SouthLot 5 - Building - NorthLot 6 - Building South

    One contractor per Lot and only North or South per disciplineCategory 2Lot 7 Capital Projects or Programmes of work

    Up to four contractorsConstructing West Midlands

  • Timeframe Industry feedback8 September 2010Issue OJEU contract notice8 November 2010PQQ issue 15 November 2010PQQ returns22 December 2010Issue tender documentation18 February 2011Tender submissions- close31 March 2011Contract award29 July 2011Operational start1 October 2011Constructing West Midlands

  • Key DriversCollaborative and integrated approach / working between clients, contractors, SMEs, supply chains, suppliers, end users and so onDelivery of responsive, efficient and cost effective building / construction services to participating public bodies demonstrating measurable value for money

  • Key DriversContinuous improvement, innovation and cost reduction (process and delivery) year on yearDelivering excellence in supply chain managementCreation 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 wasteDelivery of whole life value and whole life carbon throughout design and constructionKey Drivers

  • Supply ChainsFirst tier contractors to help develop supply chainCreation of opportunities for SMEs local to the point of delivery including, for example, use of Find it in BirminghamEarly engagement of supply chain on projectsCollaborative procurement for and by suppliersTo support targeted training and recruitment objectives