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Headlines: Procurement

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Glasgow HA specified 10% trainees in their 200m p.a. refurbishment contracts; 12.6% achieved after 30 months:13000 wks. Raploch URC: 1.3 m roads contract ... – PowerPoint PPT presentation

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Title: Headlines: Procurement


1
Headlines Procurement
  • Glasgow HA specified 10 trainees in their 200m
    p.a. refurbishment contracts
  • 12.6 achieved after 30 months13000 wks.
  • Raploch URC 1.3 m roads contract
  • - 7 trainees obtained training employment
  • Inverclyde Schools PPP
  • 2840 p/wks employment for new trainees
  • Secured by deposit of 65 per trainee-week

2
Headlines S.106 Agreement
  • Kings Cross Central Argent / LB Camden
  • 7.5 of construction workforce to be local new
    entrant trainees
  • Provision of an on-site construction training
    centre co-coordinator support plan
  • 15 -30 local employment in end-use
  • Skills Recruitment Centre staff funding to
    achieve this
  • Support for community enterprise and SMEs

3
Headlines - Development Ag.
  • Rochdale Town Centre Redevelopment
  • Construction requirements
  • 52 weeks employment for new trainee per 1m in
    construction spend
  • all construction vacancies notified to named
    agencies
  • returnable deposit of 100 per trainee-week
  • Quarterly performance information
  • End-user requirements
  • 30 new jobs filled by new entrants
  • 30 of subsequent vacancies filled by new
    entrants
  • Engagement of liaison worker

4
Headlines BSF PFI
  • Leicester BSF
  • LEP Prosperity Employability Targets
  • No alteration of PfS model agreement
  • Trainees make up 10 of works labour
  • Curriculum, learning careers advice in schools
  • Protocol for delivery for each project
  • Cost-neutrality has to be demonstrated.

5
Why Use Contractual Requirements?
  • Policy requirements should be specified.
  • You set the requirements not the contractor.
  • - this creates a level playing field
  • - it shows that you are serious
  • You cant demand compliance with a voluntary
    agreement.
  • Better outcomes are achieved.

6
Why use formal leverage? Third Parties
  • The timetable is often uncertain need to retain
    commitment despite changing staff etc.
  • Need to cascade commitment on to subsequent
    owners and developers.

7
The Legal Framework - Procurement
  • Purchasers decide what to buy core requirements
    - based on their powers policies
  • Targeted recruitment training can be part of
    these core requirements.
  • Core requirements can be used in all stages of
    award of the contract.
  • Other requirements can be contract conditions,
    but not used in award

8
EU Legal Framework
  • Requirements must not disadvantage non-local
    bidders
  • This is a drafting issue
  • - dont refer to locality e.g.. local labour
  • - use targets that can be met from anywhere
  • e.g. trainees, LTU
  • Target opportunities through supply-side
    action.
  • Follow set procedures in the normal way

9
Other legal Issues
  • LAs in England need a best value justification
  • e.g. based on their Community Strategy
  • Concern about indirect discrimination if local
    targets
  • - avoid using geographic targets
  • - name a recruitment source that targets its
    pre-recruitment work.

10
Legal/Policy Issues S.106
  • Sustainable development PPS1 references to
    sharing benefits reducing commuting
  • Local Plans may include relevant policies
  • Can seek S.106 outcomes where
  • necessary to meet Planning policies
  • linked to the site
  • Reasonable and appropriate

11
Legal Arrangements development agreements
  • Development Agreements are contracts
  • Sale of property and/or acquisition of works?
  • Contract Notices and information refer to a
    requirement to enter into a covenant to deliver
    TRT
  • Covenant signed at the same time as the
    development agreement.

12
Positive Covenant
  • A positive covenant is roughly one that will cost
    money to deliver
  • Positive covenants do not bind subsequent parties
    e.g.. if the development is sold or mortgaged
  • TRT covenants likely to be positive

13
Binding Subsequent Parties
  • Method 1 lease the property to the developer
    until the TRT requirements are met.
  • Method 2 no new title to be registered without a
    new covenant
  • Method 3 obtain a financial bond that is repaid
    when the TRT requirements are delivered

14
Conclusions
  • There is not a legal barrier to including
    training employment requirements in
    contracts/agreements
  • Get the policy underpinning in place
  • Care must be taken with the process and drafting.
  • The main barriers are affordability commitment.

15
Support Options
  • Introductory workshop
  • Quick-start programme
  • Feasibility and business planning
  • Retro-fit
  • Evaluations
  • Legal advice - Anthony Collins Solicitors
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