construction & property consultants A Journey through EXTRA CARE Breakout Session – Procurement – Best Practice and Innovations Chris Bovis, Douglas BeckwithApril

Introductions Chris Bovis –Professor of Law, Hull University Doug Beckwith –Senior Associate, Henry Riley LLP

Objectives Entertain, educate and enthuse Debate current issues Provide updates –Within context of Development Be controversial ? (well, food for thought)

Today’s Context General Election called Funding is going to be tight ‘Usual’ difficulties –Land availability –The shifting sands of regulation –Renewable technologies Uncertainty – whatever the result!

Recent Headlines (courtesy Inside Housing) Do your research before introducing new initiatives Norwich rocked by procurement row Good procurement can create jobs Housing receives £2bn Budget blow CLG told to cut costs by £200m a year Briefing: The Roanne judgment We all benefit from greener homes

Key Issue to explore What is being purchased? –Building contracts –Service contracts How are these purchased? –Through frameworks –Through s106 agreements –Through approved lists –In accordance with procurement policies

What has changed? Nothing!Everything!

Straight Ahead or Turn Back? Keep on Collaborating? –Preserve relationships? –Keep teams together? –Reduce costs without reducing margin? Revert to the Old Ways? –Short term effect? –Get more competitive bids? –Push risk down the line as suppliers get desperate?

Eliminate the dumb stuff! Know what you are buying Be aware of the costs of tendering Use the correct procedures Use appropriate award criteria Simplify pre- qualification Get the time scales sorted out Frameworks are not the only answer Beware challenge

7 Point Plan for Better Business Focus on yourselves –What do you do as a business? –What are your objectives? –Who are your stakeholders Responses:

7 Point Plan for Better Business Focus on your contractors –What service do they provide? –What are their objectives? –Who are their stakeholders? Responses :

7 Point Plan for Better Business Focus on shared values –What are they? –How do you know that? Responses :

7 Point Plan for Better Business Focus on the business case –What is the project intended to do? –Who are the project stakeholders? Responses :

7 Point Plan for Better Business Identify the benefit to the Client? –What’s in it for the Client? –Who will you know when that has been achieved? Responses :

7 Point Plan for Better Business Identify the benefits for the Contractor –What’s in it for the Contractor? –How will you know when that has been achieved? Responses:

7 Point Plan for Better Business Focus on the Project –What are the project deliverables? –How exactly will you know when they have been achieved? Responses :

Procurement Strategy It’s not about choosing a form of contract It is a process You need a template for creating one Procurement Strategy Template: –Summarise requirements –Identify Client Manager –Estimated Contract Value and Budget –Current Market Capability –Procurement Policies –Risk –Procurement Process –Pricing Strategy –Tender Evaluation Team –Timetable