Valued Efficient Collaborative 30th April 2015 SCF Framework launch day for: –Framework Management Team –Contractor Framework Account Managers

Valued Efficient Collaborative Introduction K Heard SCF Framework Manager

Valued Efficient Collaborative Prompting a Positive SCF Culture Edward Currie / Jon Williams

Valued Efficient Collaborative Promoting a Positive SCF Culture Workshop: What type of culture do we wish to promote?

Valued Efficient Collaborative Training & Passport SCF Training of contractors team in a “Train the Trainer Format” (under development) Training then devolved to key staff in SCF Contractors down to at least Site Manager Level initially SCF Principle Contractor Passports to be issued to all staff post training Date of initial training summer 2015

Valued Efficient Collaborative Framework Roles Edward Currie

Valued Efficient Collaborative FAM & SCF Roles Interactive session for 20 minutes 10 x 60 second conversations SCF to Framework Contractors Framework Contractor to Framework Contractor Capture key words on ‘post its’ At the end of the session put them on the wall Jamie will come round and listen to what is being said and summarise at the end.

Valued Efficient Collaborative Framework Roles Syndicate Session Jamie Staples

Valued Efficient Collaborative Market Intelligence Keith Heard

Market Intelligence Background Sub-contract prices pose significant challenges to project budgets Unpredictable prices and significant increases in some lead times driven by the strong resurgence in demand in the construction industry with the housing sector in particular driving higher demand Shortages in critical plant items such as cranes and piling adds further pressure to cost and programme Such volatility emphasises the need for strong project collaborative working, especially during the pre-construction phase

Market Intelligence Background - cont This is a pilot study by the NACF to identify market trends Regional Framework Contractors asked to obtain information from their supply chain on a range of issues compared to the previous year A range of packages selected for interrogation The contractors were also asked to predict market trends on the same packages through the supply chain Each region has carried out an analysis of the returns to prepare a mode / median / mean average of the results

Market Intelligence Results This is the first time we have collated results for discussion at NACF meetings Results intended to show trends only and should not be read as definitive Presentation shows a sample of the results

Valued Efficient Collaborative Coffee

Valued Efficient Collaborative The Mini Competition Process Keith Heard

Valued Efficient Collaborative The Framework Tender Specified Roles Duties Deliverables

Valued Efficient Collaborative The Framework Tender Technical Question areas: QA and performance BIM Design Management & Development Supply Chain Management Handover and Aftercare Sustainability and Environment Social Responsibility Financial Control Framework delivery Programmes of Work

Valued Efficient Collaborative The Mini Competition Process Opportunity pipeline published – M2i Project details published on procurement portal MC 1 run through procurement portal Framework manager / client short list to 3 Client body issues and runs MC2

Valued Efficient Collaborative How Does Mini Competition 1 Work? 1.Client enquiry- Framework Manager support. 2.Outline details added to pipeline information 3.Client decision to proceed – Framework Manager takes details and completes MC project information form. 4.Sets price point from size and type of project 5.Details published on procurement portal 6.MC 1 run via the procurement portal by the framework management team

Valued Efficient Collaborative Principles of Mini Competition 1 Confirmation of ( Questions may be weighted ): Preference for type of project Relevant experience Capacity of contractor and supply chain Ability to add value Self scored responses to pre-set criteria, supported by word limited written evidence. Evaluated by framework manager, who recommends to client.

Valued Efficient Collaborative Outcome of Mini Competition 1 Preferred outcome is for three contractors to proceed to MC2. Sensitive to contractor right to appeal Sensitive to client view on self scoring May be more than three in MC2

Valued Efficient Collaborative Principles of Mini Competition 2 Cost – 20 to 50% OHP % Pre construction fee% Construction fee % Design fee % Preliminary items (if applicable) Rates may not exceed the tender percentages from the price point, but may be less, and will be converted to lump sums

Valued Efficient Collaborative Principles of Mini Competition 2 Technical – 50 to 80% QA and performance BIM Design Management & Development Supply Chain Management Handover and Aftercare Sustainability and Environment Social Responsibility – Mandatory question Financial Control – Mandatory question on cost plan Framework delivery – Project delivery Programmes of Work

Valued Efficient Collaborative The MC 1 template A copy of the template is available on your tables: Title page Guidance notes Project information, completed by Framework Manager with client, and intended to carry through to MC2 Contact sheet for client professional team (if required / available) Self scoring matrix with evaluation criteria Weighting calculation

Valued Efficient Collaborative Mini competition Questions An opportunity for contractors to put questions / comments on the mini competition process to the framework management team.

Valued Efficient Collaborative Mini Competition 1 Syndicate Exercise Jon Williams

Valued Efficient Collaborative Employment and Skills Edward Currie

Valued Efficient Collaborative Apprenticeships and ESS Background Included in support of The Construction 2025 and SCF Strategies. Embodies ethos of CITB and NSAC Employment & Skills Plan (ESP) Response to predicted skills shortages likely to beset the industry Joint responsibility by clients and industry to train the workforce SCF to continue to work with: Shared Apprenticeship Schemes

Valued Efficient Collaborative Overview Places contractual obligations on SCF Suppliers Engage new entrant apprentices as the host employer via SASs Additional obligations: - Extend into your supply chains - Enthusiastically support opportunities to young people under corporate parentage Report and measure relevant KPIs

Valued Efficient Collaborative Minimum Requirements Each supplier to employ additional site assistant apprentices NVQ 3 per lot When? At the Framework Start Date & annually Lot specific requirements are: Lot 1 (SW): 1 no. per annum i.e. 10 p.a. Lot 2 (SE) & Lot 3 (London) 2 no. per annum i.e. 16 p.a. per lot Each supplier to obtain commitments from key trade supply chain members: 2 additional apprentices completion during the 4 year framework Supply chain partner will be the host company employer Apprentice sourced via the appropriate SAS.

Valued Efficient Collaborative ESS - On Appointment Submit ESS Method Statement to SCF Approval Liaise with appropriate SAS and recruit new apprentices to fulfil requirements. Confirm details of the commitments from key trade supply chains. Upload evidence of apprentice name, registration etc., on the SCF web database.

Valued Efficient Collaborative Project Specific Minimum Requirements Tested within Mini Competition selection – ESP and Method Statement Projects > £5m New Entrant Apprentices defined: “currently employed by SASs” E&S outputs agreed on a project specific basis 10 apprentice weeks per £ 1m construction value Deliver 90% of the ESP based on overall outputs and weightings 50% of new entrant and existing apprentice weeks sourced via the SASs. Client PM accountable for agreeing the ESP and Method Statement and ensuring the agreed E&S outputs are delivered. SCF Manager monitors progress of E & S Outputs for each lot Audits carried out at the annual Director 1:1 meeting.

Valued Efficient Collaborative Lunch

Valued Efficient Collaborative SCF Standard Product Mini Competition Keith Heard

Valued Efficient Collaborative A A

Mini Competition 1 Differences 1.Price point set in MC1 form 2.Questions as before remain, plus…… 3.An additional question allowing contractor to enter £/m2 price for the new build school 4.Price may be less than tendered in framework 5.Will apply to the new build elements 6.Evaluation based on framework tender commercial evaluation method, 7.Lowest price / tender price * weighting

Valued Efficient Collaborative Mini Competition 2 Differences 1.The intention to take 3 contractors to MC2 remains as before 2.Quality / Cost balance remains as before 3.Technical question areas remain as before 4.Mandatory cost question to focus on approach to abnormal or excluded costs 5.New mandatory question on project delivery – contractor approach to logistics of the project 6.Mandatory Employment and skills question

Valued Efficient Collaborative Mini Competition 2 Differences (continued) 1.Commercial return for new build elements is different and adjusts framework tender prices 2.Original tender prices include OHP and Preliminaries, so mini competition will not call for these 3.Design and pre-construction fees to be priced as normal to include new build plus the development of the excluded, abnormal, or unknown items 4.The new build costs are then fixed at mini competition and cannot vary during pre- construction 5.The 2SOB process works as normal to work up any excluded, abnormal or unknown items

Valued Efficient Collaborative Standard Product Process panel discussion Opportunity for questions to Keith Heard Jon Williams Edward Currie Jamie Staples

Valued Efficient Collaborative Marketing the SCF Syndicate Session Jamie Staples

Valued Efficient Collaborative Development Workstreams and Hustings Jon Williams

Valued Efficient Collaborative Development Workstreams – Hustings to Select Leads Initial Workstreams Handover & Aftercare Financial Control Pre Construction Support (Design Support / Financial Support) Role Organise & Lead workstream Set Terms of reference & agree outputs Resource & secure buy in Produce Delivery Plan & Facilitate Role Out

Valued Efficient Collaborative SCF Manager Links to Development Workstreams Handover/Aftercare – Jon Williams Financial Control – Edward Currie Pre Construction – Keith Heard

Valued Efficient Collaborative Development Workstreams – Hustings to Select Leads Hustings 01- Handover & Aftercare GT’s, Kier & Mace Hustings 02 - Financial Control Bam, Bouygues & Balfour Beatty Hustings 03 - Pre Construction Bam, Mace & Midas 1 minute each & cannot vote for own organisation

Valued Efficient Collaborative Additional Workstreams Will be agreed with Framework Account Managers periodically Strong desire to extend tenure of H&S Forum and broaden out

Valued Efficient Collaborative Tea

Valued Efficient Collaborative KPI’s Minimum Standards and M2i Edward Currie

Valued Efficient Collaborative KPIs, Minimum Standards and m2i Why do we have them? Demonstrate – successful delivery of Strategy & Objectives - measure People, Process and Product Success - Shared with Clients, Contractors, Governance, Stakeholders & Marketing Outputs- Support/disprove anecdotal data and provide the basis for the continuous improvement activities Benchmarking - A common set being developed with NACF

Valued Efficient Collaborative SCF Approach Core set of KPIs developed to provide early warnings & give confidence of SCF ability to deliver: On time On budget Appropriate Quality Safely. Recognise importance of the wider benefits i.e. apprentices, and SMEs.

Valued Efficient Collaborative Minimum Standards There are 3 zones; green – good, amber – improvement required, red – under performance. Any contractor suspension will apply to underperformance on the SCF lot where it occurred.

Valued Efficient Collaborative Case - Immediate suspension Contractors falling into the red zone: a)Failure to maintain Exor Gold b)Failure to provide updates on any enforcement action to Exor c)Fatality on a single project or any HSE enforcement action. d)Failure to provide mandatory framework apprentices as detailed in the E&SS The suspension will remain in place for items a. to d. until they have been rectified.

Valued Efficient Collaborative Immediate suspension – continued e)Serious malpractice not in the spirit of the framework in respect of supply chain payment timescales. f)Missing or incomplete data on >20% of the following reports: team performance, end user and Cost Time Benefit forms. g)Defects Detrimental Impact at Handover or Defects Liability Period. Action plan required for e. to g. SCF team will review project circumstances and reserve the right to immediately suspend contractors. The suspension will remain in place until a satisfactory action plan has been approved.

Valued Efficient Collaborative Additionally Also a case for immediate suspension if a contractor: Accrues 2 amber warnings for a single core KPI within a rolling 6 month period. Accrues 4 amber warnings for any of the core KPI’s within a rolling 6 month period. In these circumstances an Action Plan required & reviewed by the SCF Team. The suspension will remain in place until a satisfactory action plan has been approved. SCF Management Team decision will be final.

Valued Efficient Collaborative Data collection and m2i Data collection flow chart identifies how & when data is collected and scorecards are generated SCF Contractors responsible for collecting data & obtaining client sign off Standard templates (scorecards with scoring criteria) Ensures consistent scoring Returned by you via a web based system m2i Designed to streamline this process Cost Time Benefit Form in the packs - refreshed to align to NRM & cost benchmarking Please ensure that this is presented for signature by the Client at each Gateway Review meeting. Training on m2i available in Winchester, please let us know

Valued Efficient Collaborative Annual Conference Proposals Keith Heard

Valued Efficient Collaborative Annual Conference A conference for clients and contractors A chance to meet and discuss issues A chance to celebrate success Framework Account Manager of the year Contractor of the year Innovation of the year Top KPI performer

Valued Efficient Collaborative Closing comments Keith Heard