How Sustainable Procurement Policies Deliver Better Facilities and Benefit the Local Community - Professor John Lorimer


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How Sustainable Procurement Policies Deliver Better Facilities and Benefit the Local Community - Professor John Lorimer

  1. 1. visiting professor lecture series John Lorimer Manchester City Council 23 February 2011
  2. 2. <ul><li>Background - The drivers </li></ul><ul><li>Key challenges </li></ul><ul><li>The way we work </li></ul><ul><li>Benefits realised </li></ul><ul><li>The role of research </li></ul><ul><li>North West Construction Hub </li></ul><ul><li>Future Challenges </li></ul>
  3. 3. Emotional Health <ul><li>In a typical high school of 1000 pupils </li></ul><ul><li>50 are seriously depressed </li></ul><ul><li>100 suffer significant distress </li></ul><ul><li>5-10 girls have an eating disorder </li></ul><ul><li>10-20 pupils have obsessive compulsive disorder </li></ul>The Drivers
  4. 4. Terrorists Crime Bullying Global Warming Education & Employment Sustainable? Identity The Drivers
  5. 5. Am I too old Who can open the doors Blow this for a game of soldiers I have no identity Apprentices & Skills Where do I belong I see no future Can anyone help How do I get off benefits This is depressing
  6. 6. Key Challenges <ul><li>Current economic climate </li></ul><ul><li>Maintain training / local economic benefit </li></ul><ul><li>Position Manchester / North West, Worldwide </li></ul><ul><li>Conservative industry </li></ul><ul><li>Outside UK competition </li></ul><ul><li>Best value products </li></ul>
  7. 7. Supplier £42 Contractor £33 Client £18 Designer £7 Where does £100 go? Key challenges
  8. 8. 80 Carbon Stairway Key challenges Kg Co ² / m² 0 10 20 60 50 40 30 70 2003 Final 20% G2D2 renewable target 10 2002 Regulated 60% Reduction. DCSF. 16.8 2006 Regulated 25% Reduction G2D2 22.5 2006 Regulated 30 2002 Regulated 42 2003 Final DfES benchmark figures 52 2006 Final 5 London Academies 72
  9. 9. Ten Core Design Values <ul><li>Education vision </li></ul><ul><li>E-learning </li></ul><ul><li>Flexibility </li></ul><ul><li>Cost </li></ul><ul><li>Comfort </li></ul><ul><li>Area </li></ul><ul><li>Accessibility </li></ul><ul><li>Sustainability </li></ul><ul><li>Inclusion </li></ul><ul><li>Identity / ethos </li></ul>Key challenges
  10. 10. Apprentices and Skills – What’s the need? <ul><li>Decrease Unemployment </li></ul><ul><li>Opportunities for Up-Skilling </li></ul><ul><li>Carbon Reduction </li></ul><ul><li>Supporting SME’s </li></ul><ul><li>Local Economic Benefit </li></ul>Key challenges
  11. 11. The way we work- Collaboration <ul><ul><li>act of working jointly; ‘they worked either in collaboration or independently. </li></ul></ul><ul><ul><li>act of co-operating traitorously with an enemy that is occupying your country. </li></ul></ul><ul><li>Latin roots: from labour, toil together </li></ul>
  12. 12. Sustainable Procurement <ul><li>MCC bring together suppliers </li></ul><ul><li>Transparent programme of work </li></ul><ul><li>Managed roll-out through pilot studies </li></ul><ul><li>Greater emphasis on quality & efficiency </li></ul><ul><li>Agreed terms and conditions </li></ul>The way we work
  13. 13. The way we work <ul><li>Collaborative Framework arrangements </li></ul><ul><li>Culture v Contract </li></ul><ul><li>Measureable benefits/ continuous improvement </li></ul><ul><li>Fit for purpose </li></ul><ul><li>Green agenda </li></ul>The way we work
  14. 14. MCC Framework kit of parts <ul><li>Achieve consistency of quality and image </li></ul><ul><li>Achieve VFM through buying power </li></ul><ul><li>Improve industry standards and help the marketplace understand customer needs </li></ul><ul><li>Make FM easier across MCC estate </li></ul><ul><li>Ensure the professionals’ ‘design’ expertise is not watered down </li></ul>The way we work
  15. 15. MCC Framework kit of parts <ul><li>Drive up workmanship quality </li></ul><ul><li>Develop and improve details through user / construction feedback </li></ul><ul><li>Benefit from supply chain input and backup pre and post construction </li></ul><ul><li>Develop and prove the VFM process to Members and extend it across the whole estate </li></ul>The way we work
  16. 16. The way we work
  17. 17. Benefits - ‘Provide More for Less’ Traditional versus Collaborative 7% Construction Cost Saving 85% saving on overspend 9-13% saving on fees Potential claim varies typically 5% The difference in the cost of procurement and construction using the Collaborative, Managed Frameworks such as NWCH as opposed to Traditional 3 4 2 5 £/m Construction Cost Construction Cost Overspend Overspend Fees Fees Contractual Claim Collaborative Traditional
  18. 18. ‘ Provide More for Less’ Local Spend – Case Study Benefits 88-89% 11-12% Spend outside of AGMA It has been demonstrated that by procuring construction work through collaborative arrangements, such as NWCH frameworks, it is possible for the vast majority of the project spend to remain within the sub region Case Study West Gorton New Build Housing, £23m with Framework Partners GB Building Solutions and Bramall Construction Spend within Greater Manchester Sub Region (AGMA) 38% Spend within Manchester City boundary
  19. 19. ‘ Provide More for Less’ Training Opportunities benefits ? <ul><li>Working collaboratively enables work across a number of projects, greater flexibility and variety of apprentice and training opportunities </li></ul><ul><li>An aggregated programme secures opportunity for structured 3 year training programme </li></ul><ul><li>Traditional procurement methods do not </li></ul>Recognised trade / academic qualification
  20. 20. Framework benefits Benefits 9% Saving on project costs 10-15% Time savings 1-2% Capital cost savings – result of not tendering
  21. 21. What we get <ul><li>Avoid costs and delay of running full OJEU Tender </li></ul><ul><li>Reassurance on contractor performance </li></ul><ul><li>More predictability </li></ul><ul><li>Added value savings </li></ul><ul><li>Sharing of knowledge </li></ul><ul><li>Managed framework </li></ul>Benefits
  22. 22. MCC savings <ul><li>Project delivery </li></ul><ul><ul><li>BSF Secondary Schools 10% better than PfS benchmark </li></ul></ul><ul><ul><li>7% new build Primary Schools </li></ul></ul><ul><li>Procurement Savings </li></ul><ul><ul><li>1% higher value projects </li></ul></ul><ul><ul><li>2% lower value projects </li></ul></ul><ul><li>Better quality of product output </li></ul><ul><li>Other Benefits - sustainable agenda </li></ul><ul><ul><li>Young People into Construction </li></ul></ul><ul><ul><li>Fair Payment </li></ul></ul>Benefits
  23. 23. Benefits Evidencing Benefits
  24. 24. Headline News “ Of £357m procurement spend across the top 300 MCC suppliers 86.5% is spent in Greater Manchester. Furthermore, 25p in every £1 is re-spent by our suppliers on employees, products or services within the city region.” Benefits
  25. 25. How Local Benefits are Achieved <ul><li>‘ Meet the buyer’ days </li></ul><ul><li>Positive engagement of partners with local supply chain </li></ul><ul><li>Providing long term apprenticeships </li></ul><ul><li>Work opportunities for long term unemployed </li></ul><ul><li>Performance management / KPI relating to local benefit </li></ul>Benefits
  26. 26. Research – Schools for learning / spaces for people <ul><li>Sense, brain and space </li></ul><ul><li>Optimal learning spaces for schools </li></ul><ul><li>Evidence-base research </li></ul><ul><li>Joint venture between MCC and SCRI </li></ul>
  27. 27. Complexity / interactions <ul><li>Smells </li></ul><ul><ul><li>subjectivity, decay curves, natural v synthetic </li></ul></ul><ul><li>Colour – contrast / stim </li></ul><ul><li>Light – location / No. </li></ul><ul><li>Iso-annoyance </li></ul>Lars Gunnarsen, Kjeld Johnsen, SBi Research
  28. 29. North West Construction Hub - North West England <ul><li>Five sub regions </li></ul><ul><li>47 local authorities </li></ul><ul><li>Four-fifths of the region is rural, most of the population live in urban areas </li></ul><ul><li>60% of people live in conurbations of Merseyside and Greater Manchester </li></ul>
  29. 30. A franchise Sub regional lots Promote sub regional engagement & ownership Encourage participation from sub regional contractors Generic model for framework management
  30. 31. NWCH Frameworks <ul><li>NWCH mandated by the sub regions to deliver 3 Frameworks </li></ul><ul><ul><li>Low Value (up to £500k) Awarded to 17 partners January 2011 </li></ul></ul><ul><ul><li>Medium Value (£500 - £10m) Awarded to 14 partners August 2010 </li></ul></ul><ul><ul><li>High Value (£10m+) Awarded to five partners April 2010 </li></ul></ul>NWCH
  31. 32. Public Bodies able to use the Framework: <ul><li>County Councils </li></ul><ul><li>City Councils </li></ul><ul><li>Unitary Authorities </li></ul><ul><li>District Councils </li></ul><ul><li>Universities </li></ul><ul><li>Further Education establishments </li></ul><ul><li>National Park Authorities </li></ul><ul><li>Housing Associations </li></ul><ul><li>Police Authorities </li></ul><ul><li>Fire and Rescue Services and other Emergency Service organisations </li></ul><ul><li>Health Services including Primary Care Trusts. </li></ul>NWCH
  32. 33. NWCH - Collaboration NWCH
  33. 34. Future Challenges <ul><li>Current economic climate </li></ul><ul><li>Maintain training / local economic benefit </li></ul><ul><li>Position Manchester / North West, Worldwide </li></ul><ul><li>Conservative industry </li></ul><ul><li>Outside UK competition </li></ul><ul><li>Best value products </li></ul>
  34. 35. Thank You