Transcript Slide 1

Improvement and Efficiency South East
Introduction to IESE
Keith Heard – IESE Programme Manager
Agenda
1. The IESE Frameworks
2. Establishing the Tier 1 framework
3. Appointing a Framework Contractor
4. Framework Governance
5. Quality Assurance
6. The Benefits
7. Questions
Improvement and Efficiency South East
The IESE Frameworks
Why does IESE exist?
Regional Improvement & Efficiency
Partnerships were established in
England by CLG in 2003 to support
Local Government efficiency
www.rcoe.gov.uk
10 Themes, incl. Social Care, Waste
Sustainable Communities, and
Construction & Asset Management
Hampshire County Council is the lead
Authority for the CAM Theme in the
South East
The IESE Region
IESE region contains;
7 counties
12 unitaries
= 74 authorities
55 districts
Plus; 5 police authorities, 8 Fire Authorities,
FE Colleges, Universities…
IESE Goals
1
Client
Improved community outcomes through an
efficient and sustainable built estate.
2
Product
A quality and sustainable produce, operating
efficiently to the full satisfaction of the
user; without adversely increasing life
costs.
3
Process
Processes that are streamlined, easy to use,
low cost and encourage appropriate
behaviours.
4
Contractor Better value contracting arrangements to
achieve mutual benefits and improved
performance.
5
Design
Drive improvements to the design process
through robust challenge. Standardise the
design approach to increase certainty and
reduce waste
IESE Targets
Performance Measure
Definition
Target
Savings generated
Savings on build costs bench marked against industry standard using
BCIS data
5%
Cost predictability
The percentage by which the project has gone over budget. This is
expressed as a percentage of the total project budget.
<5%
Delivering to the
programme
Was the project delivered on time and to the programme? Time
predictability calculation is used to calculate the variance from the
master programme. This is expressed as a percentage.
Delivered on the
day
Customer satisfaction
Taken from the End User / Occupier appraisal form
>75%
Team performance
Taken from the Team Performance appraisal form
>75%
Sustainability
Energy Performance Certificate Rating New Build
Energy Performance Certificate Rating Refurbishment
26 – 50 (B)
85 – 100 (D)
Sustainability
New Build -BREEAM rating achieved
Refurbishment project - BREEAM rating achieved
Very Good
Good
Waste
The percentage of construction and demolition waste diverted from
landfill by being re-used, recycled or otherwise recovered.
>70
Health and safety
Accident Incident Rate
710
Apprenticeships
Number of additional apprentices (full time equivalent) per annum
across all work streams (Tiers 1, 2, 3 and Consultancy)
>30
Our Work
• Regional consultancy framework
– Multi-disciplinary for major projects in the South East with the
OGC
• Regional contractor framework
– Major projects and programmes of work, usually > £1 million
• Sub-regional contractor framework
– Projects up to £3 million
– Based on Clusters of authorities – Hampshire, Sussex, Berkshire,
Surrey
• Highways
• Shared Services – Asset Management
The ‘Cluster’ initiative
Specific arrangements for:
•Berkshire
•Hampshire
•Sussex
New initiative for:
•Surrey
Hampshire Workload
£25,000,000
40
35
£20,000,000
SME Smaller projects and packages framework £20m
30
SME larger project framework £28m
Specialist Contractors £7m
£15,000,000
3
25
Number of contractors used
8
20
£10,000,000
15
10
£5,000,000
13
2
23
5
6
3
5
7
2
6
1
2
5
3
Windows
Lifts
Fire alarms
Ext Decorations
M&E
Ext. works
Roofing
Build £1m - £2.5m
Build £0.5m - £1m
Toilet / Changing
Offices / Admin
SCOLA
Class rooms
0
Laboratories
£0
What the Regional Construction Framework is doing?
General (65m)
Sports &
Leisure (30m)
Civic Office
(115m)
Education
General (66m)
Fire, Police &
NHS, 270m
Further
Education
(114m)
Education
Primary (63m)
Current Tier 1 stats:
 £1.2bn workload
 79 Projects currently or have been procured
 39 now at construction
 11 complete
Education
Major /
Secondary
(392m)
Benefit / turnover
Framework Turnover Growth
£450,000,000
£30,000,000
£400,000,000
£25,000,000
£350,000,000
£20,000,000
£250,000,000
£15,000,000
£200,000,000
£150,000,000
£10,000,000
£100,000,000
£5,000,000
£50,000,000
£0
£0
2005 / 2006
2006 / 2007
2007 / 2008
2008 / 2009
2009 / 2010
Benefit
Turnover
£300,000,000
Regional
Regional
Improvement and Efficiency South East
Establishing the Tier 1
Framework
The tender document
 Six template projects at outline design:
1.Special Needs School
2.Adult Day Care Centre
3.Primary School Extension
4.Nursing Care Home
5.Primary School
6.Secondary School
 Optional large Civic Office Project at inception
Tender challenge
Pick four projects and answer questions on:
 Management structure and cost
 Preliminaries, overhead and profit
 Risk
 Cost planning
 Programme and planning
 Procurement
 Collaborative working
 KPI’s / Performance management
 Health, Safety and Environment
 Project Controls
 Framework Management
The Framework
10 principal contractors
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Balfour Beatty / Mansell
BAM
Costain
Kier
Mace Plus
Morgan Ashurst
VolkerFitzpatrick
Warings
Wates
Willmott Dixon
Overarching
Framework
Contract
Ethos =
Collaborative
Partnering
Underlying
Construction
Contract
Club
Agreement
Client Authority
The traditional route
Feasibility
Design
Tender
Construction
Design problems and
risks realised
Tender and
appoint
contractor
Time and cost overrun
Conflict
The IESE approach
Feasibility
Design
Construct
Pre-Construction phase (fee based)
Buildability,
Cost, De-risk &
Programme
Select Contractor
A.S.A.P.
More predictable
delivery - on time,
cost & quality
Agreed packages of
work, contract sum, risk
and programme
- Leading to the Capital
Works Contract
Non Negotiables
• Early contractor involvement / Integrated project
team
• Quality assurance process
• Value based tender process
• KPI performance approach
• Cost-Time-Benefit tracker
Improvement and Efficiency South East
Appointing a Framework Contractor
Mechanism for contractor access - High Level Process
1 week
3 Weeks
Client Authority
Critical friend Role
Shortlist
Mini Comp
Appoint
Contractor selection process
IESE REGIONAL FRAMEWORK CONTRACTOR SELECTION PROCESS
Shortlist or single contractor selection
ContractingAuthority
Authority
Contracting
IESE
IESE
A. Shortlist Contractors /
B. Single Contractor
recommendation
AUDIT
Define the Project
Local
Preferences
Suitability
Performance
Agreed Shortlist /
Contractor selection
Project information
Drawings
Programme
Cost
Mini competition and appointment
Common
approach
Framework
Tender
information
Mini Competition
AUDIT
Database of tender
recommendations
Recommendation
and Appoint
Improvement and Efficiency South East
Framework Governance
Governance Arrangements
Projects
Strategic Forum
IESE
Collaborative working
IESE
10 Contractors
Client authority
Capacity
Performance
Consultant
Development
Contractor
Steering Group
IESE
11 Authorities
To provide scrutiny
and support
Combined Forum
Develop arrangements
Contractors/Authorities
Performance review
Improvement and Efficiency South East
Quality Assurance
How is quality assured?
People –
Team Performance KPIs
Gateway Review - Process
Product – Product KPIs
The Quality Processes
Feasibility
A/B
1. IESE Framework
Gateways
Scheme Design
C/D
1
Design/Procurement
H
2
2. RACI Exercise
3. Heads start
4. Opportunities
Workshop
5. Team
Performance KPIs
6. Product KPIs
Risk / Opportunity / Collaboration
Construction J - L
3
3.5
Example Dashboard Report - People
Pre-Contract Average KPI Scores
Co ntracto r 9 -8 P ro jects
Co ntracto r 8 -2 P ro jects
Co ntracto r 7 -4 P ro jects
Co ntracto r 6 -1P ro jects
Co ntracto r 5 -6 P ro jects
Co ntracto r 4 -2 P ro jects
Co ntracto r 3 -12 P ro jects
Co ntracto r 2 -3 P ro jects
Co ntracto r 1-5 P ro jects
0%
20%
Contractors
40%
60%
Project Team
80%
100%
Example Dashboard Report - People
Authority Pre-Construction KPI
NHS Trust
LONDON BOROUGH
Performance Score
DISTRICT COUNCIL
UNITARY COUNCIL 3
UNITARY COUNCIL 2
UNITARY COUNCIL 1
COUNTY COUNCIL 2
COUNTY COUNCIL 1
HCC
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
Authority
60.00%
70.00%
80.00%
90.00%
100.00%
Example Dashboard Report - People
Post-Contract Average KPI Scores
Contractor 9 -2 Projects
Contractor 8 -1 Projects
Contractor 5 -6 Projects
Contractor 3 -3 Projects
Contractor 1 -1 Projects
0%
20%
40%
Contractors
60%
Project Team
80%
100%
Benefits - People
Key Performance Indicators (KPI)
•
•
Contractors’ performance on completed IESE projects
The average score for IESE projects identifies a 28%
improvement over scores received for completed Hampshire
County Council projects which were procured through a
traditional competitive tender
Benefits - Process
Cost Predictability
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•
•
•
Time Predictability
Data based upon completed IESE projects
No projects have been completed over 8% above the contract sum
No projects have been completed over 5% above the contract programme
Critically, the above data includes the effect of all project / client change orders.
OSP projects Benchmarking - Product
Benefits to users – Regional Framework
1. Added value savings
 £7m identified savings through early contractor involvement
2. Projects become part of larger Programmes of work
 Aggregated supply chain purchasing efficiencies
 Standardisation of design components
 £3.5m of potential purchasing efficiencies identified on One School Pathfinder
programme
3. Sharing of Knowledge
 Become part of a wider “club” to share knowledge
4. Managed Framework
 Benefit from consistency of approach
 Managed contractors, performance reviews, work group approach
 Written guidelines, QA processes
5. Independent support from HCC Property Dept.
 A local government arrangement supporting local government
 A “Critical Friend”
Benefits to users – Sub Regional Frameworks
6. Officer time
 18% less HCC officer time spent on tier 3 framework projects than
traditionally tendered projects
Questions