Improvement and Efficiency South East

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Improvement and Efficiency South East

• Introduction to IESE

Keith Heard IESE Programme Manager
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Agenda

• The IESE Frameworks
• Establishing the Tier 1 framework
• Appointing a Framework Contractor
• Framework Governance
• Quality Assurance
• The Benefits
• Questions

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Improvement and Efficiency South East

• The IESE Frameworks

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Why does IESE exist?
Regional Improvement Efficiency Partnerships
were established in England by CLG in 2003 to
support Local Government efficiency www.rcoe.gov.u
k 10 Themes, incl. Social Care, Waste
Sustainable Communities, and Construction Asset
Management Hampshire County Council is the lead
Authority for the CAM Theme in the South East
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The IESE Region
IESE region contains 7 counties 12 unitaries
74 authorities 55 districts Plus 5
police authorities, 8 Fire Authorities, FE
Colleges, Universities
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IESE Goals
1 Client Improved community outcomes through an efficient and sustainable built estate.
2 Product A quality and sustainable produce, operating efficiently to the full satisfaction of the user without adversely increasing life costs.
3 Process Processes that are streamlined, easy to use, low cost and encourage appropriate behaviours.
4 Contractor Better value contracting arrangements to achieve mutual benefits and improved performance.
5 Design Drive improvements to the design process through robust challenge. Standardise the design approach to increase certainty and reduce waste
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IESE Targets
Performance Measure Definition Target
Savings generated Savings on build costs bench marked against industry standard using BCIS data 5
Cost predictability The percentage by which the project has gone over budget. This is expressed as a percentage of the total project budget. lt5
Delivering to the programme Was the project delivered on time and to the programme? Time predictability calculation is used to calculate the variance from the master programme. This is expressed as a percentage. Delivered on the day
Customer satisfaction Taken from the End User / Occupier appraisal form gt75
Team performance Taken from the Team Performance appraisal form gt75
Sustainability Energy Performance Certificate Rating New Build Energy Performance Certificate Rating Refurbishment 26 50 (B) 85 100 (D)
Sustainability New Build -BREEAM rating achieved Refurbishment project - BREEAM rating achieved Very Good Good
Waste The percentage of construction and demolition waste diverted from landfill by being re-used, recycled or otherwise recovered. gt70
Health and safety Accident Incident Rate 710
Apprenticeships Number of additional apprentices (full time equivalent) per annum across all work streams (Tiers 1, 2, 3 and Consultancy) gt30
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Our Work

• Regional consultancy framework
• Multi-disciplinary for major projects in the
  South East with the OGC
• Regional contractor framework
• Major projects and programmes of work, usually gt
  1 million
• Sub-regional contractor framework
• Projects up to 3 million
• Based on Clusters of authorities Hampshire,
  Sussex, Berkshire, Surrey
• Highways
• Shared Services Asset Management

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The Cluster initiative

• Specific arrangements for
• Berkshire
• Hampshire
• Sussex

• New initiative for
• Surrey

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Hampshire Workload
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What the Regional Construction Framework is doing?

• Current Tier 1 stats
• 1.2bn workload
• 79 Projects currently or have been procured
• 39 now at construction
• 11 complete

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Framework Turnover Growth
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Improvement and Efficiency South East

• Establishing the Tier 1 Framework

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The tender document

• Six template projects at outline design
• Special Needs School
• Adult Day Care Centre
• Primary School Extension
• Nursing Care Home
• Primary School
• Secondary School
• Optional large Civic Office Project at inception

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Tender challenge

• Pick four projects and answer questions on
• Management structure and cost
• Preliminaries, overhead and profit
• Risk
• Cost planning
• Programme and planning
• Procurement
• Collaborative working
• KPIs / Performance management
• Health, Safety and Environment
• Project Controls
• Framework Management

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The Framework
Overarching Framework Contract

• 10 principal contractors
• Balfour Beatty / Mansell
• BAM
• Costain
• Kier
• Mace Plus
• Morgan Ashurst
• VolkerFitzpatrick
• Warings
• Wates
• Willmott Dixon

Club Agreement
Ethos Collaborative Partnering
Underlying Construction Contract
Client Authority
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The traditional route
Feasibility
Design
Construction
Tender
Design problems and risks realised Time and cost
overrun Conflict
Tender and appoint contractor
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The IESE approach
Construct
Feasibility
Design
Pre-Construction phase (fee based)
Buildability, Cost, De-risk Programme
More predictable delivery - on time, cost
quality
Select Contractor A.S.A.P.
Agreed packages of work, contract sum, risk and
programme - Leading to the Capital Works Contract
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Non Negotiables

• Early contractor involvement / Integrated project
  team
• Quality assurance process
• Value based tender process
• KPI performance approach
• Cost-Time-Benefit tracker

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Improvement and Efficiency South East

• Appointing a Framework Contractor

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Mechanism for contractor access - High Level
Process
1 week
3 Weeks
Client Authority
Critical friend Role
Shortlist
Mini Comp
Appoint
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Contractor selection process
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Improvement and Efficiency South East

• Framework Governance

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Governance Arrangements
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Improvement and Efficiency South East

• Quality Assurance

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How is quality assured?
People Team Performance KPIs
Product Product KPIs
Gateway Review - Process
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The Quality Processes
Feasibility A/B
Scheme Design C/D
Design/Procurement H
Construction J - L
1. IESE Framework Gateways
1
2
3
3.5
2. RACI Exercise 3. Heads start 4. Opportunities
Workshop
5. Team Performance KPIs
6. Product KPIs
Risk / Opportunity / Collaboration
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Example Dashboard Report - People
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Example Dashboard Report - People
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Example Dashboard Report - People
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Benefits - People

• Key Performance Indicators (KPI)

• Contractors performance on completed IESE
  projects
• The average score for IESE projects identifies a
  28 improvement over scores received for
  completed Hampshire County Council projects which
  were procured through a traditional competitive
  tender

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Benefits - Process

• Cost Predictability

Time Predictability

• Data based upon completed IESE projects
• No projects have been completed over 8 above the
  contract sum
• No projects have been completed over 5 above the
  contract programme
• Critically, the above data includes the effect of
  all project / client change orders.

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OSP projects Benchmarking - Product
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Benefits to users Regional Framework

• 1. Added value savings
• 7m identified savings through early contractor
  involvement
• 2. Projects become part of larger Programmes of
  work
• Aggregated supply chain purchasing efficiencies
• Standardisation of design components
• 3.5m of potential purchasing efficiencies
  identified on One School Pathfinder programme
• 3. Sharing of Knowledge
• Become part of a wider club to share knowledge
• 4. Managed Framework
• Benefit from consistency of approach
• Managed contractors, performance reviews, work
  group approach
• Written guidelines, QA processes
• 5. Independent support from HCC Property Dept.
• A local government arrangement supporting local
  government
• A Critical Friend

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Benefits to users Sub Regional Frameworks

• 6. Officer time
• 18 less HCC officer time spent on tier 3
  framework projects than traditionally tendered
  projects

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Questions