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 Seven year duration commenced 2004 Innovative ‘partnership’ with three principal contractors – the Birmingham Construction Partnership

Partnership benefits  Approx £6-8 million tendering costs saved per annum  Better risk allocation and management  Early contractor and supply chain involvement  62 strategic supply chain partners  221 jobs created / 200+ training opportunities  Supports jobs in direct supply chain

Partnership benefits  Reduced pre-construction time  Significantly improved time and cost certainty  Collaborative procurement – joint purchasing  Total joint working – client, end-users, designers, contractors, supply chain  Early settlement of final accounts – no retention

Partnership benefits  Better design, WLC and sustainability  Continuous improvement across BCP/client  Safe sites with good welfare facilities  Improved quality of construction  Changed attitudes

What are the benefits?

Initiatives: Achieving Excellence in Construction  The partnering and integrated team approach: avoiding fragmentation and adversarialism  Development of long-term relationships: one off lowest cost is OUT  Improved skills development and empowerment: effective Project Sponsorship, collaboration, tools and ‘infrastructure’  Adoption of performance measurement indicators: if you are not counting you are only practising; Public Sector Construction Database  Use of tools for value and risk management and whole-life costing: Gateway, AE4, Green Book Supplement, Fair Payment in Construction, Demand Management and market analysis NAO expects this initiative to save £2.6 billion per annum

Performance reports produced from PSCD ORGANISATION X AEC Specific Project Performance and resulting benefits  Your 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 region  Covering all types and values of work  Duration years  To build on the successes of the Birmingham Construction Partnership

‘Constructing West Midlands’ Region

Framework Category Proposal Category 2 Major Public Construction Projects Major Programmes of Work £0 – 500 k £500k upwards Category 1 Repair and Maintenance works Planned / Reactive Minor Building works Quality / Price split 50/50Quality / Price split 60/40 Constructing West Midlands

Framework Lots £0 – 500 k £500k upwards Quality / Price split 50/50Quality / Price split 60/40 Category 1 Lot 1 - Legionella – North Lot 2 - Legionella – South Lot 3 - Elec. and Mech. - North Lot 4 - Elec. and Mech. - South Lot 5 - Building - North Lot 6 - Building – South One contractor per Lot and only North or South per discipline Category 2 Lot 7 – Capital Projects or Programmes of work Up to four contractors Constructing West Midlands

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

Key Drivers  Collaborative and integrated approach / working between clients, contractors, SMEs, supply chains, suppliers, end users and so on  Delivery of responsive, efficient and cost effective building / construction services to participating public bodies – demonstrating measurable value for money

Key Drivers  Continuous improvement, innovation and cost reduction (process and delivery) year on year  Delivering excellence in supply chain management  Creation 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 waste  Delivery of whole life value and whole life carbon throughout design and construction Key Drivers

Supply Chains  First tier contractors to help develop supply chain  Creation of opportunities for SMEs local to the point of delivery including, for example, use of Find it in Birmingham  Early engagement of supply chain on projects  Collaborative procurement for and by suppliers  To support targeted training and recruitment objectives