Construction

The construction category management steering group are looking into a number of initiatives relating to construction procurement.  The current workstreams are:

  • Developing a new national category strategy for construction
  • Market engagement / supply chain management
  • Cost benchmarking.

National Construction Category Strategy

We are now working on a new construction category strategy that outlines how councils can facilitate better value solutions that can be achieved through lower capital costs and more efficient procurement. The focus of the strategy is to establish guidance in key areas and act as a conduit for sharing best practice. To get involved with the new strategy contact tina.holland@local.gov.uk.

National Construction Category Strategy

Market Intelligence

NACF  have now updated their popular market intelligence maps that show data captured annually on projects >£1m.  They have formulated the attached maps that show current market trends and other market factors that are important to budgets and awareness of project delivery.

Efficiency maps June 2015 (PDF)

New models of construction procurement

Government have issued some draft guidance on new models of construction procurement, based on best practice in public sector construction.

The guidance is in three parts and covers:

  • Two Stage Open Book
  • Cost led Procurement and
  • Integrated Project Assurance.

Draft guidance on new models of procurement on the gov.uk website

National School Delivery Cost Benchmarking

The latest annual national school cost benchmarking study has now published a new report.  The study was conducted by Hampshire County Council in conjunction with East Riding of Yorkshire Council and the Education Funding Agency.  This significant study now has a dataset with a capital value of over £3.6billion from 107 local authorities across England.  The study now has good data on the actual costs of primary, secondary and SEN school projects including:

  • cost per place
  • gross costs
  • nett costs

To ensure a high level of consistent participation, Local Authorities are asked to submit data using a common standard form of cost analysis which is available to download. 

A copy of the latest report, published in February 2017 is available to download below along with previous reports from February 2016, January 2015 and June 2014:

National School Delivery Cost Benchmarking – Primary Secondary Schools – February 2017 

National School Delivery Cost Benchmarking - Primary & Secondary Schools - February 2016

National School Delivery Cost Benchmarking – Primary Secondary Schools – January 2015 (PDF, 13 pages, 1MB)

National School Delivery cost benchmarking report June 2014 (PDF, 12 pages, 375KB)

Framework Contracts

For access to construction related framework contracts please visit the NACF website here:
www.nacframework.org.uk

Effective Construction Frameworks compares construction frameworks with traditional forms of procurement (where suppliers are procured for individual projects) and considers the benefits offered by effective construction frameworks. It also sets out the key features of effective framework agreements. The details included are not necessarily exclusive to framework arrangements; the attributes can also be prerequisites in other effective construction procurement mechanisms or routes to market.

Effective Construction Frameworks - January 2016

Construction case studies

Market consultation case study
Employment and skills case study
PAS91: 2013 Case study
Project bank account case study A164 Humber Bridge to Beverley route improvement scheme
Highways design (PDF)
Highway maintenance (PDF)
Mechanical and Electrical (PDF)

Women in Construction: Victoria Brambini from Scape discusses how encouraging women into construction related roles can potentially help with the future supply of skills in the construction industry.

Cluster working: Hampshire, Surrey, West Sussex and Reading councils used a two-stage open book process to trial cluster working on 22 individual projects with a total budget of around £119m.  They hope to aggregate savings of 14% of the total cost by standardising on design approaches, aggregating  and driving efficiency through the supply chain. For more information see the case study here

Using Procurement to tackle poverty:  Birmingham City Council's Employment Action Team set out to use public procurement to address poverty through training and employment.

Use of BIM: Trafford Borough Council were keen to implement the use of BIM on Springfield Primary School, a contract worth some £4.2 million.  The main BIM objective was the early completion of design information to allow early engagement with the supply chain and increase opportunities for further collaboration with specialist subcontractors.  For more information on how the council saved £80,000 through use of BIM with the whole supply chain see here.

The National Skills Academy for Construction

This client-based approach provides a toolkit to deliver employment, apprenticeships and training for public sector clients through their construction projects, planning policy and development control. It provides model documentation, benchmarks, case studies
and practical commentary. Based on successful National Skills Academy for Construction projects, the guidance includes all necessary components to deliver apprenticeships, employment and training opportunities on any type and size of construction project.  See the case studies below:

Summary Document (PDF)
Case Study 1: Heart of the South West LEP (PDF)

Case Study 2: Herefordshire (PDF)
Case Study 3: The Midlands Highways Alliance (PDF)

Case Study 4: Portsmouth (PDF)
Case Study 5: Labour Forecasting Tool (PDF)
Case Study 6: YORfuture Shared Apprenticeship Scheme (PDF)

13 March 2017