North West Construction Hub

1. North West Construction Hub Comprehensive Spending Review Expectation �More for Less� John Finlay Procurement Manager, Capital Programme Division Manchester City Council Neville Hodson - Laing O�Rourke Phil Chadwick - ISG Wesley Allmark - Wates

3. Efficiency and reform For central government, the target is: Deliver centrally co-ordinated actions to reduce construction costs by 10-20% by the end of the 5 year life of the current Parliament

4. Linking policy with procurement Fair payment Support for SMEs Apprenticeships / Youth Employment Low Carbon Shared services

5. NIEP for the Built Environment Government Priorities Reduce the Budget Deficit - SAVINGS Localism But also to, Decentralise Encourage Social Enterprise Real choice and power in people�s hands

6. North West Construction Hub To support �More for Less� we are: Moving away from lowest price tendering Replacing it with long term collaborative relationships between clients, professionals and contractors Developing, promoting and assisting others to understand the impact and contribution these solutions can make to a local economy Being a driver for business process changes in the capital works departments of each local authority to achieve maximum benefit from the construction hub

7. Role of the Construction Hub Lead organisation on behalf of North West Public Bodies. Fully embracing best value principles � process and partnership working. Responsible for establishing frameworks, Letting procurement agreements, playing a key role in the management, benchmarking and performance measurement of those agreements and management model for a partnering arrangement available across the North West. Opportunities to apply lessons learned and share benefits across the North West region. The results are less waste, less duplication, local engagement and greater efficiencies which gives better value for money

8. The Construction Frameworks High Value � (over �10m) Regional (Operational from May 2010) Medium Value � (�500k to �10m plus) Sub-regional (Operational from August 2010) Low Value � (�0 to �500k) Sub-regional (Forecast operational from January 2011)

9. Framework Partners

10. Framework Clients Any Public organisation from within the following sub-regions: Cumbria Lancashire Greater Manchester Merseyside Cheshire 200+ public organisations named in the OJEU notice

11. Framework Benefits

12. Traditional versus Collaborative The difference in the cost of procurement and construction using the Collaborative, Managed Frameworks such as NWCH as opposed to Traditional

13. The Benefits � More for Less Fully OJEU compliant Streamlined project procurement Added Value Early contractor / supply chain involvement Innovation �Lean� design �Lean� costs Robust risk allocation and management Programme time reduction According to the OGC IEP Framework projects cost 9% less compared to industry comparators

14. The Benefits � More for Less Cost and Programme certainty Quality projects � design and construction Total joint working (client, end users, designers, contractors, supply chain, other stakeholders) Collaboration between Framework constructor partners Focus on sustainability: Environmental, Social and Economic with regard to the locality of each project Performance Management / KPIs / Continuous Improvement

15. How Local Benefits are Achieved �Meet the buyer� days Positive engagement of partners with local supply chain Providing long term apprenticeships Work opportunities for long term unemployed Performance management / KPI relating to local benefit

16. 3 Representing 15 Framework by Design Efficiencies Certainty Sustainability Professionalism

17. Challenge to Change Team Working Special Interest Groups (SIG�s) Sharing the Workload Inter-company Training Localising the Supply Chain Delivering Beyond the Building

18. NWCH in Action Client : Cheshire East Council Project : Macclesfield Town Hall Form of Contract : NEC Option 3 Contract Value : �900k Fixed OHP and Consultants costs : Hub submission Project Risk register agreed with Client Project Charter agreed with Client

19. NWCH in Action Tender Download : Monday 16 August 2010 Site Visit : 18 August 2010 Tender Submission : 27 August 2010 Post Tender Queries : 01 September 2010 Appointment : 03 September 2010 Commence Pre-construction on site : 06 September 2010 Construction Commence : 04 October 2010

20. The Hub in Action "�Cheshire East Borough Council are committed to partnering and industry best practice�.. there is a clear view of what was needed to be achieved at the Macclesfield Town Hall project. By using the NWCH as our preferred method of constructor partner selection, the procurement process allowed contractor selection and a start on site within one month. We are on target to complete on programme, within budget and to exceed our Client's expectations. Procurement through the NWCH has played an important part in helping us to meet our objectives." Steve CottlePoject Development Manager Cheshire East Council

21. North West Construction Hub �The Framework has given us a significant level of savings � on time and money saved by not going through the standard procurement route and on the added value we have gained from the additional benefits offered by the partners on the framework� Phil Seddon, Head of Finance and Property Services Rossendale Borough Council

22. QUESTIONS ????? I CONTACT DETAILS f you want �more for less� contact����.. Framework Manager ( High and Medium Value ) Karen Harland Tel : 0161 245 7232 k.harland@manchester.gov.uk Assistant Framework Manager Rob.Renshaw Tel: 0161 219 6525 r.renshaw@manchester.gov.uk Advice on Framework Delivery / Benefits John Finlay Tel: 0161 219 6530 j.finlay@manchester.gov.uk