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Better Buys In Housing Procurement

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Title: Better Buys In Housing Procurement


1
Better Buys In Housing Procurement The National
Change Agent for Social Housing Davis Langdon
LLP, 71 High Holborn, June 2007 Stephen Edwards
Communities and Local Government
2
  • Background to Principles of NCA Housing
  • Egan Principles Re-thinking Construction
  • Latham Report - More Collaboration in
    Construction
  • Gershon Spending Review - 340million Efficiency
    Target in Capital Works by 07/08.

3
  • Our Role
  • Identify Potential Procurement Consortia
  • Support them to Develop a Business Case
  • Promote and Share Good Practice of Consortias
    Efficiency Gains
  • Engage with Key Industry Stakeholders

4
  • Progress to Date
  • Running since Easter 2005
  • 15 Consortia Established with Funding Approved,
    more in the pipeline
  • ECF Grant Regime Fully Operational 4.7million
    has been awarded to date
  • Panel of Accredited Consultants
  • Practical Support and Advice from NCA Housing
  • Suite of Guidance Notes and Useful Template
    Documentation in place
  • Visit our website www.ncahousing.org.uk

5
  • Progress to Date

Targeted Savings by 2010 590 million
Targeted Spend by 2010 4.8 billion
15 Consortia 122 Social Landlords 1.2
million homes
6
North East Consortium
Cumbrian Housing
Efficiency 4 North
Existing Consortia
IMPACT Manchester
GM Procure
Forming Consortia
Pennine Lancashire
Eastern Procurement
Procurement For All
CEPP
London Area Procurement Network
Orbit, Whitefriars, West Mercia
Herts/ Beds
Buy4London
Westworks
Hackney/ Greenwich
South East Consortium
Advantage South West
7
The Benefits of Consortium Working
  • Economic
  • Projected cost savings broadly in the range 5
    10 of capital spend
  • Whole-Life Costs (e.g. Improved warranties)
  • Reduced transaction costs due to long term
    partnering
  • Improved quality/specifications (more for less!)
  • Increased productivity/reduced work times
  • Work smoothing managing supply and demand
  • Continuous improvement

8
The Benefits of Consortium Working
  • Social
  • Stimulating local employment
  • Improving local skills
  • Small business development
  • Engaging with BME groups
  • Improved services to tenants
  • Pride in the community

9
  • Tenant Engagement
  • Listening to what Tenants want
  • Increasing Tenant Choice
  • Improving Quality of Products
  • Improving Service Standards

10
  • Targeted Apprenticeship Schemes

4 South Yorkshire Training Programme
11
GM Procure Training Programme
12
The Benefits of Consortium Working
  • Environmental
  • Provision of community wide managemen
  • Reduced CO2 emissions (e.g. better insulation,
    efficient heating systems)
  • Use of local labour and materials
  • less travelling distance
  • less congestion and CO2 emissions

13
  • Environmental
  • Whole-Life Cycle Costing
  • Site Waste Management
  • Recyclable Materials

14
  • Further information
  • www.ncahousing.org.uk
  • Contact
  • Email colin.proctor_at_davislangdon.com T 020
    7061 7820

15
Better Buys improving housing association
procurement practice
  • Janet Williams
  • Senior Research Manager
  • 22 April 2008

16
Study aims
  • assess housing associations use of modern
    procurement methods
  • help smaller housing associations to improve
    their approach to effective procurement and
  • assess the residents contribution to housing
    association procurement.
  • Study scope
  • Housing associations gt 250 units
  • Repairs and maintenance, and housing management

17
Housing associations expenditure is significant
18
… and is under pressure to be more efficient.
  • Efficiency agenda
  • Role of the regulators
  • - HC annual efficiency statements
  • - AC emphasis on vfm in inspection
  • Higher expectations of residents better quality
    of services

19
Procurement has a key role …
  • Efficiency gains represented 3.5 of aggregate
    turnover 4 of total expenditure of sector in
    2005/06
  • A third of efficiency savings in a typical HA are
    attributable to procurement
  • HA Chief Executives expect procurement will play
    a bigger role in future

20
And associations can demonstrate success
  • Liverpool Housing Trust used supply chain
    management to cancel out annual inflation
    increases
  • CDS Housing has cut admin staff by 50 using
    electronic invoicing and payments with its
    suppliers
  • Medium sized Housing Association re-tendered
    payment methods from April 2008 and will include
    direct debits savings of 60,000 a year

21
And associations can demonstrate success
  • Swaythling Housing Society plans an annual 215k
    saving through consortia contracts for boiler
    purchase and installation
  • A Southern Housing Association uses a consortia
    to procure its kitchens helped in terms of OJEU
    tendering arrangements
  • Advantage South West Limited Liability
    Partnership consortia who have jointly
    appointed a procurement manager

22
But procurements contribution varies widely.…
Housing association savings from improved
procurement per unit Source AC
23
There are still savings to be made - 100 per
home if all achieved top quartile performance
24
But some associations are not even picking the
low hanging fruit
25
E-procurement under used
Housing association and LA use of e-procurement
tools
Source AC and Inlogov
26
HAs balance efficiency gains with other
considerations …
  • Diversity and equalities
  • Regeneration and local economic development
  • Sustainable development
  • Resident/tenant choice/involvement

And procurement can be a powerful tool in
promoting these wider objectives if HAs want it
to…
27
It is the organisational environment that matters
  • choice of method or contract is not the most
    significant factor in successful procurement
  • no clear correlation between performance in
    repairs performance indicators and delivery
    method
  • no clear correlation between efficiency savings
    and method of delivery.
  • You need
  • strong contract performance management
  • skilled staff
  • open minds / performance culture

28
And its not just a matter of group structures and
shared services …
  • Real opportunities - but limited uptake
  • Process focus losing sight of benefits
  • We are part of a group but it is early days and
    we are keeping our own identities
  • We think we have a really strong partnering
    approach to procurement but this hasnt been
    taken up across the group as yet.
  • It was a requirement of joining the group that
    we bought in to payroll and HR

29
Associations that use procurement effectively
have
Small associations are less likely to have
these features
  • A procurement strategy
  • Procurement training for all staff
  • Explicit use of procurement to achieve policy
    objectives
  • Measurement of procurement performance
  • Resident involvement in commissioning and
    procurement
  • Systems for addressing issues of equalities and
    diversity in procurement
  • Competitive neutrality / a mixed economy of
    provision
  • Critical appraisal of the costs and benefits of
    procurement options
  • Procurement methods and approaches that are
    proportionate and appropriate to their
    requirements.
  • A strong driver business plan, inspection
    report, corporate direction

30
In summary, we found …
  • Danger of partnering/consortia seen as panacea
    more caution, more sophisticated approach needed
    in promotion financial support
  • Method of procurement less important than
    organisational environment
  • Barriers to effective procurement exist in all
    types of housing association but more acute for
    smaller HAs
  • Effective procurement can achieve real benefits
    for housing associations and their residents but
    sector, and residents still not seeing full
    benefit of good procurement practice more needs
    to be done.

31
In summary, key to success…
  • Actively managed contracts supplier performance
  • Supply chain management
  • A performance culture that identifies
    procurements contribution to wider objectives
  • Senior procurement champion, investment in skills
    and expertise

32
What next?
  • The Audit Commission will develop tools to help
    housing associations make more effective use of
    procurement
  • DVD of case studies
  • Briefing for Board members
  • Briefing for Tenants/Residents
  • Model procurement strategy

33
Thanks for listening. Any questions?
  • janet-williams_at_audit-commission.gov.uk

34
  • NCA Housing and Audit Commission
  • Better Buys and Procurement Seminar
  • 22nd April 2008
  • The Orange Studios, Cannon St, Birmingham B2 5EP
  • Measuring Efficiency gains from Consortia
    procurement Activities
  • Hilda Chagula
  • ( Senior Consultant ,Davis Langdon LLP )

35
  • Measuring Efficiencies Contents
  • Context
  • Why measure efficiency gains
  • What to measure
  • How to measure

36
  • Measuring Efficiencies Context
  • NCA Housing Programme focus on collaborative
    procurement.
  • Diversity of new business models
  • Need for consistent Benefit Measurement
    methodology
  • Robust and Auditable
  • Transparency
  • Support Performance Management
  • Benchmarking

37
  • Measuring Efficiencies Why Measure
  • Gershon Targets
  • Annual Efficiency Statements (AES)
  • NCA Housing Programme
  • Government Policies
  • Best Value
  • Decent Homes
  • Sustainable Communities
  • Commercial
  • Demonstrate Benefits to Stakeholders
  • Manage performance
  • Optimise resources
  • RoI

38
  • Measuring Efficiencies Performance Management
  • Strategic
  • Long term organisational outcomes
  • Holistic
  • Operational
  • Short term
  • Quick wins

39
Strategic
Operational
Cashable
Non-Cashable
Value Added
Long term
Performance Management
Short term
40
  • Measuring Efficiencies Performance Management
  • Balanced Scorecard
  • Align operations with Corporate strategy
  • Focus on Corporate performance
  • European Business Excellence Model (EFQM)
  • Systems Thinking

41
  • Measuring Efficiencies Types

42
(No Transcript)
43
(No Transcript)
44
  • Measuring Efficiencies How to measure

45
  • Strategic Measurement

46
  • Measuring Efficiencies Key Principles
  • Calculate Baseline ( Business Plan/ pre
    consortia.)
  • Annual Baseline adjustment for
  • Inflation
  • Quality changes
  • Volume changes
  • Measure inputs (cost) and outputs (product/
    quality)
  • Calculate Efficiencies against own Baseline
    performance

47
(No Transcript)
48
Measuring Efficiencies The Process
49
  • Operational Measurement What to measure
  • Cost
  • Performance / Quality Improvements
  • Community Benefits

50
  • Measuring Efficiencies Cost
  • Year 1 Efficiency Gain ( A x Index 1 ) (B)
  • Year 2 Efficiency Gain ( C x Index 2) (C)

51
  • Measuring Efficiencies Quality

52
(No Transcript)
53
  • Measuring Efficiencies Workshop Discussion
  • Two key Questions
  • Benchmarking Methodology Metrics ?
  • Business Process Gains from process mapping/
    re-engineering ?

54
  • Questions ?

55
The National Change Agent for Social Housing
Housing Seminar, The Orange Studios, Cannon St,
Birmingham B2 5EP 22ND April 2008 Repairs and
Maintenance Russell Poynter-Brown (Partner,
Davis Langdon LLP) and Katie Saunders (Partner,
Trowers Hamlins)
56
  • Contents
  • Background
  • Context
  • Challenges
  • Approach
  • How NCA can help

57
  • Background
  • Historical focus on Capital Works
  • Increasing focus amongst consortia on Repairs
    and Maintenance (RM)
  • Consortia keen to integrate RM as part of asset
    management programmes
  • CLG wish to support this initiative via NCA

58
  • Context
  • Emerging trend towards more integrated and
    comprehensive asset management contracts
  • Procurement/delivery mechanisms are responding
    accordingly
  • Use of Term and Strategic Partnering, Frameworks
    and Devolved Budget contracts
  • Increased scope for provision by NCA of
    proactive advice, guidance and support in the
    broader context of asset management

59
  • Challenges
  • Selection of most appropriate procurement/deliver
    y system
  • Logistics of service delivery
  • Supply chain capability ability to respond
  • Potential need for more sophisticated
    arrangements such as Limited Liability
    Partnerships and other Special Purpose Vehicles
  • Structuring consortia to optimise commercial
    performance (e.g. saving VAT)
  • Process management and improvement

60
  • Approach
  • NCA Housing is shortly to enhance its Body of
    Knowledge by producing a new tranche of best
    (positive) documents
  • Examples include
  • An expanded template Supplier Framework
    Agreement that links capital works to term
    repairs and maintenance
  • Clarifying the template Consortium Agreement to
    cover not only capital works but also term
    repairs and maintenance

61
  • Approach (Contd)
  • Examples include (Contd)
  • An updated additional Guidance Note on EU
    procurement as it relates to term repairs and
    maintenance programmes
  • An additional Guidance Note on alternative
    forms of Term Contracts
  • A Guidance Note regarding the evolution of
    pricing and supply chain arrangements under term
    repairs and maintenance contracts to enhance
    value.

62
  • Approach (Contd)
  • Examples include (Contd)
  • Publishing Case Studies as consortia expand the
    scope of their activity.
  • A Strategic Alliance Agreement to promote
    collaboration between Constructors for capital
    and asset management programmes
  • Focussed advice and support consultancy
    interventions

63
  • How NCA Housing Can Help
  • Best practice guides
  • Authoritative guidance and support
  • Process Management
  • Review and improve processes for effective
    asset management
  • Focus on ICT, Supply Chain Management,
    Employment, Training

64
  • How NCA Housing Can Help (Contd)
  • Overcoming barriers to change
  • Legal barriers associated with TUPE etc
    (integration of capital and term programmes)
  • Operational barriers associated with change
    management and organisational development
  • Advice on organisational design (to minimise VAT
    liability etc)
  • Informal sounding board

65
  • Further information
  • www.ncahousing.org.uk
  • Contact
  • E russell.poynter-brown_at_davislangdon.com T 020
    7061 7557
  • E ksaunders_at_trowers.com
    T 0161 837 2671

66
  • Delivering a Sustainable Decent Homes Programme
  • The triple bottom line and Decent Homes
  • Case study Waste management in Decent Homes

67
  • Sustainable development is not…
  • Using photovoltaics, installing green roofs,
    cycling to work, building wind turbines, etc,
    etc.
  • Sustainable development is…

68
Brundtland definition of sustainable development
is development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs
Economic
Social
Environmental
The Triple Bottom Line
69
  • Sustainability opportunities within Decent Homes
  • Economic opportunities
  • Money saved can be invested elsewhere
  • Reducing expenditure on core components could
    allow more investment in higher quality
  • Social opportunities
  • Tenant benefits (Improved health, comfort,
    safety, security, quality of life)
  • Benefits to those involved in the Works
  • training opportunities (employment / recruitment
    / retention)
  • Security of supply allows long term planning
  • Environmental opportunities
  • Energy efficiency (leading to carbon savings)
  • Material selection sustainable sourcing
  • Material lifecycles and replacement intervals
  • Waste management
  • Design / aesthetic / visual amenity
  • How can the capital investment be used to
    maximise all of these opportunities?

70
  • Consortia opportunities?
  • Working within a Consortium provides a platform
    to pursue cashable savings but
  • what are the opportunities to improve the
    sustainability of the programme and get more from
    the Consortium?
  • Tools at your disposal are
  • Design, specification, procurement, tenant
    engagement, others?

71
  • Case study Waste Management in Social Housing
    Refurbishment Opportunities through Consortia
    Working

Case study based upon research and support
provided by Davis Langdon on behalf of (Waste and
Resources Action Programme)
72
  • Characteristics of Decent Homes work
  • Almost all new works involve some demolition or
    strip-out - (e.g. for every new boiler, an old
    one must be thrown away)
  • working in restricted spaces requires a high
    degree of site cutting.
  • This means that housing refurbishment has one of
    the highest wastage rates per capital expenditure!

73
Not just strip out waste
New unused materials
Strip out materials
Packaging
74
  • Why is waste management important?
  • Financial Waste is a substantial but often
    hidden cost. Effective waste management can
    reduce costs (reduction in quantity of waste
    increased segregation reduced costs)
  • Environmental Reduced pressure on landfill
  • Legislative compliance
  • New regulations make Site Waste Management Plans
    compulsory on all projects over 300k (introduced
    6th April 2008)
  • Duty of Care Regulations.

75
  • More detail on the cost of waste
  • Landfill Tax
  • 32 per tonne for active wastes (plasterboard,
    timber, plastics, cardboard, bio-organic)
    increasing to 48t by 2010/11
  • 2.50 per tonne for inert wastes (glass, brick,
    concrete, soils, aggregates)

Sample costs for waste disposal for a 16yd3 skip
are
76
  • The Three Rs
  • Reduce the generation of waste
  • Reuse materials for the same or a different
    purpose
  • Recycle the materials to recover value
  • Dispose, using the best practical environmental
    option

77
  • Opportunities to tackle waste in Decent Homes
    programmes
  • Better planning improved segregation reduced
    costs
  • Accurate forecasts Existing survey data can
    easily be manipulated to quantify the volumes and
    types of waste to be disposed of
  • High repetition Waste streams will be highly
    regular, generating similar quantities of similar
    types of materials
  • Consortia working amplifies the above scenario
  • Large volumes of waste greater investment
    potential in segregation

78
  • Key Recommendations
  • Client requirements Clients need to lead this
    agenda and make waste management a feature of the
    contract with requirements to reduce waste and
    increase recovery
  • Collaboration Tackling this issue together (or
    at least your neighbouring RSLs) unlocks real
    opportunities
  • Site segregation Explore opportunities for the
    site segregation of materials
  • Site Waste Management Plans Ensure that
    contractors develop and provide robust SWMPs that
    have accurate waste forecasts

79
  • Some areas to think about
  • Waste reduction What happens to unused
    materials when a dwelling is signed off?
  • Packaging Is packaging always necessary, and
    who ends up paying to dispose of it?
  • Logistics How can logistics work harder for
    waste?
  • Reuse Should materials always be disposed of
    (roof tiles?)
  • Segregation How can this be achieved?
    (segregated at site, or at consolidation centre)

80
  • Conclusion
  • This is an area where the client needs to take
    the lead
  • Sustainability does not just mean more cost!
  • Working with others could provide some larger
    opportunities
  • What can you do about it?

81
The National Change Agent for Social Housing
Housing Seminar, Birmingham 22 April
2008 Legal update John Forde, Solicitor,
Trowers Hamlins
82
  • Remit of National Change Agent
  • Facilitate and support procurement consortia
  • Identifying and promoting best practice
  • Advice on best practice in law and procurement
  • Increased scope for provision by NCA of
    pro-active advice, guidance and support in
    broader context of asset management

83
  • NCA Guidance Notes
  • Available to NCA consortia members
  • Covering range of legal issues, including
  • Procurement models
  • Consortium governance structure
  • EU procurement
  • Leaseholder consultation requirements
  • Selecting forms of delivery contract for projects
    and term repairs

84
  • Advice on Procurement Models
  • Consortia are adopting a range of procurement
    models to date
  • No single prescribed approach
  • Develops from members existing procurement
    strategies and business plan objectives
  • Three main models
  • Client-Contractor consortium
  • Client-Contractor consortium with Supply Chain
    integration
  • Client has direct relationship with Supply Chain

85
Consortia are adopting a range of procurement
approaches
Supply Chain
Main Contractor/Package
Main Contractor
86
  • Analysis of procurement models
  • All structures benefit from joint consortium
    procurement
  • Use of Open-book pricing allows identification of
    savings
  • Contractor-led models have benefits of Contractor
    warranty
  • Supply chain integration allows flexibility in
    selection
  • Procuring Suppliers through Contractors avoids
    separate EU advertisement and Section 20
    consultation
  • Client-Supplier model creates savings on
    Contractor costs, but may have increased
    management costs

87
  • Advice on Consortium Governance structures
  • Guidance note on Governance options
  • Consider three main models
  • Corporate vehicle (company)
  • Limited liability partnership
  • Contractual consortium governed by Consortium
    Agreement
  • Template NCA Consortium Agreement available for
    use

88
  • Advice on Consortium Governance structures
  • Other issues include
  • Decision making and control of membership
  • Tiers of membership
  • How membership costs are levied
  • Relationships with third parties
  • Duty of care to other consortium members
  • Tax and vires issues for consortium members
  • Resourcing of consortium
  • Ownership of assets

89
  • Advice on EU Procurement and Section 20
  • Guidance notes available on EU Procurement and
    leaseholder consultation
  • Major procurement issues include
  • Framework Agreements vs term contracts
  • Calling off work under Framework Agreements
  • Provision for future consortium members to access
    frameworks
  • Problems with interface between EU and Section 20
  • New consortium members may have difficulty with
    Section 20 when trying to access framework
    contracts

90
  • EU/Section 20 Case law update
  • Camden Council decision (Lands Tribunal), March
    2008
  • Leaseholder consultation
  • Requirement to provide cost information to
    leaseholders
  • Lianakis AE others v Alexandroupolis et al
    (C-532/06), European Court of Justice, 24 January
    2008
  • EU procurement
  • Can past experience be an award criterion
  • Can new criteria be introduced after Contract
    Notice and tender documents published

91
  • Further information
  • www.ncahousing.org.uk
  • Contact
  • Email jforde_at_trowers.com
  • Tel 0207 423 8353

92
Central England Procurement Partnership
  • Shaun Bennett
  • Director of Investment Regeneration
  • Derby Homes

93
Derby Homes
  • All 14,000 homes now decent
  • Eliminated investment back log of 93m
  • Partnering embedded across 95 maintenance
    activity
  • 280 employees reducing to 250 over the next three
    years
  • Focus on new build, decent estates, new business
    and delivering excellent m m services
  • Developing partnering through the repairs service

94
Derby Homes (last slide)
  • Reducing management fee
  • Pressure on the Repair Account
  • Issue with sufficiency of MRA
  • Continuing to seek out efficiency savings
  • HRA time bomb still ticking!
  • Need to work collaboratively more now than ever

95
CEPP
  • Midland ALMO technical officers group
  • Linking up with an existing group of HAs and
    LAs within the region
  • Desire to work together to strive for efficiency
    savings
  • Some pressure to replicate the London ALMO
    Procurement Network
  • Sharing of expertise, experience and procurement
    resources
  • Opportunities to increase buying power by working
    together

96
CEPP
  • Desire to extend partnership working through the
    supply chain and identify true costs
  • Tender exercise to select organisation to
    facilitate group
  • Established group of 8 organisations
  • Currently working through the final stages of the
    business plan, supported by Gleeds, working
    closely with NCA

97
Current Membership
  • A1 Housing Bassetlaw
  • Ashfield Homes
  • Derby Homes
  • Newark and Sherwood
  • South Kesteven
  • Nottingham City Homes
  • Sandwell Homes
  • Solihull Community Housing

98
Current Membership
  • Identified 22.5m savings across the partnership
    over five years, at only 7.5 on aggregation, 5
    materials, 2.5 on partnering efficiencies. (just
    on MRA activity)
  • Scope for similar savings on repairs, new build
    and other corporate procurement

99
CEPP
  • Interest from other organisations
  • Working together to promote excellent procurement
    practices, sharing best practice, supporting each
    other.
  • Proportion of savings recycled though
    CEPP to ensure sustainability of frameworks,
    partnership

100
CEPP
  • Focus on quality
  • Lower costs
  • Sharing resources
  • Best practice procurement
  • Framework contracts
  • Supply chain integration
  • Target 250m by 2011 saving at least 10

101
Learning so far
  • Engage with the NCA as soon as possible
  • Utilise their support, it will save time and
    money
  • Maintain momentum within the group
  • Agree a committed steering group and engage with
    CEOs
  • Dont over rely on one individual, work as a team
  • Dont underestimate the work required
  • Remember it is an investment in potentially
    massive efficiency savings into the future

102
Learning so far
  • Too many cooks can spoil the broth
  • Agree mission and aims, be consistent.
  • Continue to engage with the NCA
  • Consultants are all becoming experienced
  • Learn from other consortia

103
Collaborative Working
  • Focus on decent home work and repair services
  • Develop best practice in procurement throughout
    the group
  • Engage with Contractors and suppliers
  • Collaborative purchasing through existing groups
    where appropriate
  • Sharing resources across organisations
  • Sharing service delivery in some cases

104
Thank You
  • shaun.bennett_at_derbyhomes.org
  • 01332711033

105
The National Change Agent for Social Housing
Housing Seminar, Birmingham 22 April
2008 Consortium influence over sustainability in
construction David Mosey, Partner, Trowers
Hamlins
106
  • A development that meets the needs of the
    present without compromising the ability of
    future generations to meet their needs
  • Brundtland Commission, led by the former
    Norwegian
  • Prime Minister Gro Harlem Bundtland
  • What good is a house if you havent got a
    decent planet to put it on?
  • Henry David Thoreau (1817-1862)

107
  • Capturing sustainability
  • In an NAO survey of government projects 80
    would not have met sustainability standards for
    construction and refurbishment set by government
  • National Audit Office,
  • Building for the future Sustainable construction
  • and refurbishment on government estate (April
    2007)

108
  • Capturing sustainability requirements at tender
    stage
  • Clarifying client objectives in OJEU
    advertisements and tender documents
  • Setting qualitative evaluation criteria
  • Obtaining specialist bidder sustainability
    proposals

109
  • Measuring achievements against agreed
    targets/incentives
  • Setting clear key performance indicators
  • Setting measurable targets
  • Finalising measures/targets prior to contract
    award
  • Establishing regular reviews and action plans
  • Linking performance to incentives contract
    duration/money

110
  • Encouraging training/employment/community
    involvement
  • EU constraints
  • Links to best value
  • Benefit of joint initiatives among
    contractors/service providers

111
  • Linking capital to whole-life costs
  • Considering operation/maintenance from the very
    start of each capital project
  • Obtaining proposals for operation/ maintenance
    from capital works bidders
  • Using in-house DLO/DSO expertise
  • Merging capital/repairs and maintenance contracts

112
  • Influencing subcontractor/ supplier
    sustainability initiatives
  • To nominate or not to nominate?
  • Parallel EU procurement
  • Joint initiatives of clients/contractors/ service
    providers
  • Subcontractor/supplier framework agreements

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  • Additional benefits of consortium procurement
  • Increased efficiency in terms of economies of
    scale
  • Increased client influence on improved standards
    and encourage greater innnovation
  • Greater opportunities to develop and share data
    as to improvements/techniques

114
  • Consortium supply chain and waste management
  • Large-scale consortium procurement can encourage
    supply chain to adopt new practices
  • Large-scale consortium procurement can develop
    two stage procurement processes to explore
    sustainability proposals in detail
  • Consortium members can establish greater
    efficiency through common practices for dealing
    with supply chain members

115
  • Consortium procurement and training/employment
  • Consortium procurement offers opportunity to
    focus on social aspects of works programmes
  • Consortium procurement structures can draw in
    local suppliers and develop training programmes
  • Potential to use specialist consultants to
    develop sustainability initiatives
  • Platform for exchange of information at all stages

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  • Conclusion
  • Client influence is essential to develop
    sustainability in construction
  • Consortium members working together can greatly
    increase that influence
  • Stepping stones need to be included at all stages
    in the procurement and contracting processes and
    in the measurement of improvements
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