1. A new era for Major Projects
David Haimes
Director – Regional Investment Programme
November 2018

2. A new era for
Major Projects - why?

3. The relationships we have with suppliers are critical to success
Highways England has ambitious objectives set to modernise, maintain and operate the SRN.
We want to attract and work with the best in supply chain – especially in such a competitive market.
So, what are the opportunities for the suppliers and what are we doing do attract the best from the industry?

4. The journey together RIS 4 (2031-2035) RIS 3 (2026-2030)
A systematic and structure approach to managing the future.
RIS 1 ( )
RIS 2 ( )
RIS 3 ( )
RIS 4 ( )
Simple Collaboration
Integrated Functions
High Performing Enterprise
Enterprise Management
Portfolio Management
Project
Management
Capability & Maturity
efficient delivery predictable delivery benefits focus value driven
Simple Collaboration…..
Laying the foundations for a sustainable and successful future.
Introducing our Strategic Roadmap
A cultural shift from output to outcome focus needs a sustained organisation wide approach. In doing this we will shift the balance from tradition construction delivery to truly customer focused outcomes.
Delivering truly best value from our investment requires attention from the top to bottom of our organisations, across our supply chains and in all our ways of working.
Moving from a project to programme to enterprise focus will drive efficiency, predictability through
Key messages
This wont happen overnight to be sustainable and we know that. There is a lot of change and we want this to stick
3 phases taking us through the 3 maturity levels RIS 1-4
We can do this alone and we rely on MP & HE maturity to grow as well
We have a Simple Collaboration plan maturing to get us to early RIS 2
4 outcome themes for change which underpin all the activities we have planned – initially we will focus on efficiency & predictability while focusing on benefit & value for our future
5.5 Both the RIP RDP and SMP Alliance model align to this vision.

5. Ambition themes Four key interrelated themes to drive our ambition.
Targeted initiative linked with a common goal, vision and timeline
Efficiency
Predictability
Outcome & Benefit Focus
Value Driven Decisions
Strategic
themes for Delivery
EFFICIENCY
- Efficiency through consistency, Lean process review principles, New RIP leadership structure and reporting lines, Corridor development and delivery, Programme and Portfolio focus
PREDICTABILITY
- Regional procurement and supply chain relationship, Collaborative partnering, Standardised design, Streamline escalation routes, Governance and Structure standardisation
OUTCOME & BENEFIT FOCUS
- Focused in house benefit and value capability and capacity, Benefit focus reporting and decision making, Outcome focused procurement, Benefit based corridor development for RIS2+
VALUE DRIVEN DECISIONS
Industry best practice Value VM, Whole Life cost enables decisions, Enabling value based decision making throughout the team, Enterprise collaborative value based decision making

6. Highways England’s routes to market
Complex Investment Programme (CIP)
Asset Delivery- Operations
Regional Delivery Partnership (RIP)
Smart Motorways Alliance (SMP)
Regional lots
Six year contract
Initial packages awarded at initial competition
Future allocation based on performance
Large scale projects over £1bn
Stakeholder complexity, multi-party relationships require collaborative working
National alliance [in development]
Integrating client & supply chain into one organisation, aligning delivery behind a common goal
Modularised and standardised to deliver increased efficiency
New Asset Delivery (AD) Model
Expected to deliver the majority of the maintenance/ renewal programmes
Contracts & Framework
To achieve our ambition over the next decade we must deliver a large number of major road improvements, ensuring that we deliver these in a manner that:
increases safety for all that use and work on our network
maximises value for the public purse;
improves customers’ experience of the network; and
drives innovations and efficiencies.
The relationships we have with our suppliers are critical to the success of achieving this. We want to attract and work with the best suppliers in a busy and competitive infrastructure market.
We want to work with the best suppliers to work together to meet these aims.
RDP
National six year contract with regional lots
£9bn value
- £8.7bn Delivery Integration Partners
- £300m Technical advisor
Design & Build
Initial programme packages (not individual schemes) are awarded at initial competition
Future programme packages are allocated based on performance
Removes secondary competition
All parties are incentivised to collaborate through rewards based on end-to-end scheme performance
Highways England is only three years old – but we have already reflected and developed the procurement routes with have with the supply chain.
I will talk about our “Routes to Market” programme in more detail shortly, but has an overview we have four main routes to procure with us…
RIP Delivery Partner
David will go into detail on the next couple of slides… but this procurement and delivery model is to delivery his Regional Investment Programme. Next month we will be annoucing who has been awarded the contracts for the Delivery Integration Partners and launching the RDP.
SMP Alliance
Still being developed and going through our governance process but expected to be launched at the end of September 2018.
We are looking to create a national alliance – 10 year contract
Again, we will provide more detail about this later this morning.
Operations
Operations has recently changed to an Asset Delivery (AD) Model. The model is expected to deliver the majority of the maintenance and renewal programmes.
It will work closely with RDP and the Alliance in carrying forward the long term maintenance of the new initiatives made by the programmes.
CIP
CIP will continue to be procured via Project specific OJEU’s. Work like A303 Stonehenge solution and Lower Thames Crossing.
Common items with RIP and SMP will be procured through productised solutions i.e. category management for pavements, gantries, technology
Next slide: Going into more detail about the Routes to Market Programme

7. So what is different?
Our approach goes beyond simply new procurement models, but is a full transformation in the way we approach delivery road investment
We are building client based capability and capacity to becoming a mature infrastructure owner ready for the future. We see this as key to unlocking sustainable change

8. “Improving links between Highways England’s outcomes and supplier rewards, drives better value for money.”
Highways England is leading a generational shift, with its £9bn Regional Delivery Partnerships and alliance model , in how highways and infrastructure schemes are developed and deliver success to enhance customer value.
This forward looking model leads to safer and more predictable schemes. Designed as an efficient environment where people and businesses thrive by keeping savings they make while delivering what’s important to Highways England and it’s customers

9. You said,
we listened.
Back in January 2018, we released details of a new type of contract – the Regional Delivery Partnership – for future major projects for England’s motorways and major A-roads. In total £9bn of work to deliver the Road Investment Programme was launched for the supply chain to bid for. The new model will help us modernise, maintain and operate the strategic road network, having been developed as part of the wider Routes to Market Programme, which is creating new procurement vehicles to help Highways England deliver its ambitious work programme.
The new procurement model builds on the success of its predecessor, the collaborative delivery framework (CDF), which reaches its headline value in 2018; it takes on board supply chain feedback and will support the allocation of work as Highways England transitions from the first Road Investment Strategy into the second from 2020.
Key Features of the Model:
Continuity of work by awarding £4BN of schemes in 2018 as part of Regional Packages based on programmes of work, rather than individual scheme awards, provides increased long term certainty to the market providing a foundation for investment & productivity improvement.
Regional Delivery teams composed of Technical Advisors, Delivery Integration Partners and the Client (Network Owner) each Region will be focused on delivering integrated project solutions.
Centres of Excellence (National; regional; Sustainable Improvement) will be established so that all partners (Network Owner, Delivery Integration Partners & Technical Advisors) work together to drive regional efficiencies and performance through, Supply Chain integration; harnessing Innovation, long term Skills Strategies all integrated together to drive national, local economic growth and project delivery.
Performance Framework – The measurement of performance will be devised to reflect the desire for objective data driven performance scoring. Future packages of schemes will be allocated by applying the process set out in the procurement documents.
Commercial Framework linked to performance – RDP is designed to reward suppliers aligned to Highways England’s objectives and improving benefits against the investment baseline.
Streamlined Procurement Procedure – we have reduced the acquisition cost burden to the market by introducing a three stage selection process that focuses on the key areas of importance to Highways England.
Initial programme packages (not individual schemes) are awarded at initial competition
Future programme packages are allocated based on performance
Removes secondary competition
All parties are incentivised to collaborate through rewards based on end-to-end scheme performance
Establish and empower RtM as a strategic HE procurement programme to leverage maximum value through the procurement process  
RtM to produce a Statement of Requirements for SMP and RIP/OD including a defined delivery solution to outperform HE RIS 1 and 2 outcomes  
Structured and focused engagement with the supply chain to align them to the SoR and solution to outperform HE RIS 1 and 2 outcomes  
Analyse the supply chain spend to develop a clear supplier segmentation model which identifies opportunities, vulnerabilities and risk within the HE supply chain  
Design a robust and flexible work packaging strategy which enables the supply chain to leverage greater value to meet HE outcomes  
Create incentive mechanism to drive programme outperformance which necessitates supply chain collaboration  
HE intelligent client model must have Technical Authority to drive design efficiency and control spend on design  
Undertake appropriate surveys and inspections, including geotechnical investigations, to understand asset condition early in planning/design phase (PCF stage2/3) to optimise scheme delivery and maximise benefits  
Build on excellent unit cost information to develop Compatible Unit Model to benchmark scheme target price (between PCF stage 3 and 5)  
Procure programmes of work to provide the supply chain with the confidence to invest and to innovate within the programme envelope  
Produce an intelligent client delivery model to develop capability and capacity for HE aligned to programme delivery requirements  
Drive innovation and continuous improvement through HE procurement activities, with aligned benefits measurement and tracking and effective lesson learning  
Next Slide: How this fits in to the future of our work to upgrade/modernise the network…

10. Partnerships to delivery success
HIGHWAYS ENGLAND AS A CAPABLE OWNER
SPONSORSHIP
CLIENT PROJECT TEAM .
‘A successful project will be one that realises at least the benefits expected when the investment decision was made’
DELIVERY TEAM
SUPPLY CHAIN PARTNERS AS TRUSTED DELIVERERS

11. Complementary and shared focus
BENEFITS & VFM
CUSTOMER FOCUS
OUTCOMES
OUTPUTS
CLIENT
PROJECT
TEAM
TIME
COST
QUALITY
PROGRAMME EFFICIENCY
CHANGE
H&S
STAKEHOLDER MANAGEMENT
PROJECT SCOPE
PROJECT DIRECTION
SPONSORSHIP
DELIVERY PROJECT MANAGER
INNOVATION
Sponsorship
Define the CSR, business need and desired outcomes
SGAR Sign off
DfT Change Control
Business Case Development
Strategic Stakeholder Management
Governance & Assurance
Client Project Team
Gaining investment approvals
Internal reporting & escalation
Establishing and manages the delivery contracts.
Holds suppliers to account
Internal knowledge share
Project Stakeholder Management
Delivery Project Manager
Deliver the services of the contract
Sub-contractor Management
Reporting progress to the client PM
Site Supervision & Logistics

12. “Changing road scheme delivery using long term integration, improves benefits and eliminates waste.”
Highways England’s RDP approach is an innovative way to join up scheme design, construction and maintenance regionally and nationally.
Client, contractors and designers will be able to deliver tangible customer benefits in terms of safety, journey time reliability and satisfaction by planning and implementing a predictable, integrated programme of schemes.
By working progressively towards a mature enterprise way of working, we will drive out non-value-adding activities and achieve real efficiency savings

13. How is this going to be different?

14. Highways England imperatives linked to performance
We knew to deliver a step change needed to drive efficiencies and improve safety for users and our workforce, plus customer’s experience we needed to remove the barriers and incentivise against our imperatives.
So the partners joining us across the regions know that along with the future alloaction of work, we will also incentivise them to focus on performance – linked to Safety, Customer, Delivery
Gain
Make a saving
Start on time
Finish on time
Keep journey times predictable
Pain
Overspend against budget
We have worked with the industry and colleagues across HE developing this. We believe this will enable us to deliver real benefits to the public purse, our customers and the safety of those using and working on our network..
Next Slide: How this fits in to the future of our work to upgrade/modernise the network…

15. Highways England is leading a step-change in the industry
Highways England is leading a step-change in the industry. We are responding to market and customers demands:
We are challenging our suppliers to buy better and buy local, and we are rewarding them for this.
We are encouraging innovation and best practice from across suppliers where they regularly come together, share knowledge and support each other through our Centre's of Excellence.
We place emphasis on social impact and supporting government employment strategy by providing regeneration development opportunities as well as opening opportunities for local and regional commercial entities.
We are doing this through rewarding suppliers who employ, upskill those from within communities and through encouraging them to do business and buy within their regions
North
West
East
2 or more Delivery Integration Partners responsible for,
design from option selection to consents and into construction.
Incentives aligned with our outcomes.
Future schemes allocated based upon demonstrable performance
Delivery Integration Partners work transparently with their supply chain, designers and our category management specialists
Midlands
East
South
West
South
East

16. IMPROVE PERFORMANCE & OUTCOMES
Our Ambition for Collaboration
Common Goal
& Our Behaviours
Governance
& Processes
Capability & Expertise
Working truly collaboratively as a fully integrated team and with key stakeholders we will meet the challenge of delivering RIS and improving customer experience and staff wellbeing whilst achieving industry recognition for excellence.
By capitalising on the diversity and strengths of the amazing people in our different organisations; enabling them to thrive; challenging the ‘norm’ and deliver optimal solutions; to the delight of our customers.
IMPROVE PERFORMANCE & OUTCOMES
SAFETY
DELIVERY
CUSTOMERS
You’ll have heard this morning that we believe working closely with the supply chain will be central to delivering our objectives.
The strong message to take from our work from Routes to Market, and the wider work conducted under Project 13 is the need for greater collaboration and alignmnent of objectives. Our supply chain management approach has this at its heart.
The majority of Highways England’s work to maintain and modernise our strategic road network is delivered through our network of suppliers. So, it is critically important that as we step up to the challenge for implementing the investment programme to support the government’s Road Investment Strategy (RIS) that we ensure performance expectations are continually monitored, managed and enhanced.
We deliver the RIS through a focus on three key imperatives; health & safety, customer service and delivery; reflected in the suite of metrics against which Highways England suppliers are evaluated in terms of performance.
Our ambition is to harness optimum performance levels of our collective supply chain partners through a healthy balance of incentivisation and process improvement. This will satisfy the challenges set out in the Highways England Delivery Plan and move the industry forward; continually enhancing the services provided to road users.
Our vision of Supplier Performance.

17. Highways England have people and capacity development at heart
Recognise the power of collaboration and long term relationships to unlock innovation and keep pace with market
Create a stimulating delivery environment and create industry leaders
Aspire to create a place where people can thrive and push infrastructure forward
• Delivering truly best value from our investment requires attention from top to bottom across our organization and supply chains in all our ways of working
We will shift the balance from tradition construction delivery to truly customer focused outcomes – and building client based capability and capacity is key to unlocking sustainable change.
We see this as the key to unlocking a truly high performing team. We will invest in their future and they will invest in ours

18. The capacity and capability challenge
Commercial and procurement arrangements
Proposed HE role
Develop and deliver arrangements to influence market investment in skills and capability
Example
Consistent Employment and skills requirements in MP/OD procurement and contracts.
Mobilising
Proposed HE role
Steer and facilitate traction across the SC of new employment and skills priorities
Examples
1. Shared Apprenticeship Schemes
2. Roads Academy
3. Social Value/ Diversity and Inclusion
Delivery
Proposed HE role
Monitor and report performance data to inform each Regional Delivery Partner’s practice
Example
Employment and skills metric within balanced scorecard. 13
Until 2021, the occupations with the most acute infrastructure shortfalls over the period include several occupations that are highly relevant for Highways England. To identify which of these occupational shortfalls most affect Highways England, ORI scores (HE demand x infrastructure shortfall) were calculated at a national level over the period. Top 3 critical shortfall areas identified as plant operatives, labourers and civil engineers.
The total infrastructure workforce is forecast to increase by approximately 7% up until 2021 whilst output will grow by 43% creating a significant occupational shortfall.
IFT asks for future performance – Describe how you plan to collaborate with other Delivery integrated Partners (suppliers and partners) over the term of the contract to:
Develop regional workforce planning and development data
Develop a regional Employment and Skills Plan
Manage, review and continually improve the Employment and Skills Plan.
T&Cs outline requirements - suppliers to prepare and submit an employment and skills plan at framework level that incorporates actions at scheme level.

19. Wrap up

20. Our ambition of becoming ‘Client of Choice’
We have considered the ‘voice of the suppliers’ and the needs of the regions we serve.
The new way of engaging suppliers and procuring products and services is a ‘win-win’ for regional economies, the environment, us, and our suppliers alike.
Ultimately, together we will help Highways England achieve its customer imperatives by improving: customer satisfaction, safety and delivery of road improvements.
Typically 2 Technical Advisors, responsible for
route option selection and providing assurance over the design and construction.
Incentives aligned with our outcomes.
North
West
East
2 or more Delivery Integration Partners responsible for,
design from option selection to consents and into construction.
Incentives aligned with our outcomes.
Future schemes allocated based upon demonstrable performance
Delivery Integration Partners work transparently with their supply chain, designers and our category management specialists
Midlands
East
South
West
South
East
“A leading, intelligent, commercially astute major projects client organisation. Responsible for the initiation and delivery of national and regional road infrastructure asset investments, that safely deliver important outcomes for our customer and stakeholders”

21. Questions?