1. Financial Partnerships Unit Obtaining Design Quality in PPP Projects David Fox Turner & Townsend Group abcdefghij Financial Partnerships Unit

2. Turner & Townsend Group Construction & Management Consultants Obtaining Design Quality in PPP Projects Scottish Executive Seminar 30 November 2004

3. making the difference Ensuring Design Quality in the PPP Process What is driving the Design Quality?What is driving the Design Quality? Education and Quality StandardsEducation and Quality Standards Output vs Prescription (Mandatory/Non Mandatory Requirements)Output vs Prescription (Mandatory/Non Mandatory Requirements) Use of Model DocumentationUse of Model Documentation Consultation as a Design Tool in ProcurementConsultation as a Design Tool in Procurement Affordability is KingAffordability is King Exemplar DesignsExemplar Designs

4. making the difference What is Driving Design Quality - Many Conflicting Needs Requirements of the EA and UsersRequirements of the EA and Users Mandatory Design StandardsMandatory Design Standards Competitive TensionCompetitive Tension AffordabilityAffordability Whole Life AssessmentWhole Life Assessment Transferred RiskTransferred Risk Risk of Performance DeductionsRisk of Performance Deductions

5. making the difference Education and Quality Standards - They are not robust enough We have: Building RegsBuilding Regs Planning RegsPlanning Regs SE StandardsSE Standards British StandardsBritish Standards DFESDFES We need: Generic Space Standards Education Environmental Standards Education Accommodation Standards

6. making the difference Output vs Prescription - We need the correct balance We need Clear Accommodation/Service RequirementsWe need Clear Accommodation/Service Requirements Prescription gives certainty but retains the riskPrescription gives certainty but retains the risk Use Mandatory and non Mandatory RequirementsUse Mandatory and non Mandatory Requirements Mandatory - Output standards designed for full periodMandatory - Output standards designed for full period Non Mandatory - Detail sets the Evaluation StandardsNon Mandatory - Detail sets the Evaluation Standards Get the Standard right through Regular Mid Tender MeetingsGet the Standard right through Regular Mid Tender Meetings

7. making the difference Use of Model Documentation Allows Bidders to Major on Project SpecificsAllows Bidders to Major on Project Specifics Familiar Documents let Bidders concentrate on Designs Familiar Documents let Bidders concentrate on Designs Models reflect Government Risk ProfileModels reflect Government Risk Profile Bidder Friendly DocumentationBidder Friendly Documentation Prioritised to Meet Client RequirementsPrioritised to Meet Client Requirements Commercially RealisticCommercially Realistic

8. making the difference Output Specification Structure Designed to reflect Executive Risk ProfileDesigned to reflect Executive Risk Profile Accommodation RequirementsAccommodation Requirements –Accommodation Schedules –FM Requirements Minimising Disruption/ConstraintsMinimising Disruption/Constraints Design StandardsDesign Standards Room Data SheetsRoom Data Sheets More than one way to skin this catMore than one way to skin this cat Designed to focus on Council PrioritiesDesigned to focus on Council Priorities

9. making the difference Exemplar Designs DFES/PfS Designs – Sets standards but unaffordableDFES/PfS Designs – Sets standards but unaffordable Project Reference DesignsProject Reference Designs –Following Consultation confirms Affordable practical solution –Specification ties in with exemplar and OBC - confirms affordability –Users must understand the context and the process –Careful programming : Spec.-design-consultation-affordability –Role of Reference Design in Procurement Process –Not mandatory but standard against which quality evaluated –Good Bidder Consultation ensures understanding and no surprises

10. making the difference Consultation as a Design Tool Regular Bidder Meetings are a MustRegular Bidder Meetings are a Must More Comprehensive Expectations in a non Mandatory FormMore Comprehensive Expectations in a non Mandatory Form Council Standing Orders can be an IssueCouncil Standing Orders can be an Issue Mould Designs to suit RequirementsMould Designs to suit Requirements Ensure All bids meet RequirementsEnsure All bids meet Requirements Detailed Development when Preferred BidderDetailed Development when Preferred Bidder Groups will not all be Correct First TimeGroups will not all be Correct First Time Don’t Corrupt the CompetitionDon’t Corrupt the Competition

11. making the difference Affordability is King Major movement in build costsMajor movement in build costs Robust PSC - Build a Comprehensive PictureRobust PSC - Build a Comprehensive Picture The Use of Sample DesignsThe Use of Sample Designs Ensure Spec. Reflects Award – Benchmark costsEnsure Spec. Reflects Award – Benchmark costs Clearly Set Out Affordability TargetsClearly Set Out Affordability Targets Maintain Competitive PressuresMaintain Competitive Pressures High level of ConsultationHigh level of Consultation Affordability Targets are SacrosanctAffordability Targets are Sacrosanct

12. making the difference Ensuring Design Quality in the PPP Process Influence the Drivers to work on your behalfInfluence the Drivers to work on your behalf Education and Quality Standards - If not available adopt best practiceEducation and Quality Standards - If not available adopt best practice Fundamentals of Project FeasibilityFundamentals of Project Feasibility Output vs Prescription - Get the Balance rightOutput vs Prescription - Get the Balance right Reference Designs or provide reference projectsReference Designs or provide reference projects Use of Model Documentation - Project SpecificsUse of Model Documentation - Project Specifics Consultation is a Design ToolConsultation is a Design Tool Managing AffordabilityManaging Affordability