Forming consortia

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Forming Consortia for Construction SME's

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Forming consortia

  1. 1. <ul><li>Together we are strong </li></ul>Consortia <ul><ul><ul><li>Low Carbon </li></ul></ul></ul>t: @fairsnape martin brown e: fairsnape@gmail.com advocate for improvement and innovation in the built environment iBE Partnership SLIDES available here http://slidesha.re/eJaMVs
  2. 2. Today’s Client <ul><li>Biggest Budget Deficit - £167b </li></ul><ul><li>Collaborative Procurement Hubs </li></ul><ul><li>Opportunity to make significant savings that don’t cut into front line services </li></ul><ul><li>Local and Low Carbon agendas </li></ul><ul><li>Regional Procurement Frameworks </li></ul><ul><ul><li>Financial Threshold </li></ul></ul><ul><ul><li>Large Geographical Area </li></ul></ul><ul><ul><li>Variety of Public Sector Clients & Projects </li></ul></ul>
  3. 3. Today’s Frameworks <ul><li>Increased Customer/Stakeholder Satisfaction </li></ul><ul><li>Long Term Supply Chain </li></ul><ul><li>Savings in Capital & Whole Life Costs </li></ul><ul><li>Procurement Efficiencies </li></ul><ul><li>Client Flexibility in Selecting Constructors </li></ul>
  4. 4. Tomorrow’s Frameworks <ul><li>What next after frameworks? </li></ul><ul><li>More frameworks done better </li></ul><ul><li>Construction Hubs </li></ul>
  5. 5. Routes to Frameworks <ul><li>Route 1 – Go Direct </li></ul><ul><ul><li>Threshold Turnover too high </li></ul></ul><ul><ul><li>Geographical Area </li></ul></ul><ul><ul><li>Diversity of Services </li></ul></ul><ul><li>Route 2 – Join the Supply Chain of a Major </li></ul><ul><ul><li>Competing on Lowest Costs / Squeezed Profit Margin </li></ul></ul><ul><ul><li>Delayed Payments </li></ul></ul><ul><ul><li>Lack of Contact with the Client </li></ul></ul><ul><li>Route 3 – Form a Consortium </li></ul><ul><ul><li>Additional Procurement Route to Frameworks </li></ul></ul><ul><ul><li>Overcome Financial Threshold </li></ul></ul><ul><ul><li>Diversity of Scope </li></ul></ul><ul><ul><li>Control of your Own Destiny </li></ul></ul><ul><ul><li>Retain YOUR Identity </li></ul></ul>
  6. 6. Consortium attractive to Client <ul><li>Lower Overhead and Management Costs </li></ul><ul><li>Personal Service </li></ul><ul><li>Adapt Quickly to: </li></ul><ul><ul><li>Client Needs </li></ul></ul><ul><ul><li>Technologies </li></ul></ul><ul><ul><li>Techniques </li></ul></ul><ul><li>Local Direct Labour </li></ul><ul><li>Lower Carbon Footprint </li></ul><ul><li>Keeping the £ Local </li></ul>
  7. 7. Types of Consortia <ul><li>Supply Chain </li></ul><ul><li>Horizontal </li></ul><ul><li>3 Dimensional </li></ul><ul><li>Adaptable for </li></ul><ul><ul><li>Any Size of Opportunity </li></ul></ul><ul><ul><li>Capital & Revenue </li></ul></ul><ul><ul><li>No Constructor too small or too large </li></ul></ul>
  8. 8. Supply Chain Consortia
  9. 9. Horizontal Consortia
  10. 10. Forming a Consortia <ul><li>Chemistry </li></ul><ul><li>Leadership & Values </li></ul><ul><li>Geography </li></ul><ul><li>Complimentary Expertise & Experience </li></ul><ul><li>Lead Organisation </li></ul><ul><li>Creating a Brand </li></ul>
  11. 11. <ul><li>Contractual collaborations </li></ul><ul><li>Joint ventures (limited companies) </li></ul><ul><li>Legal partnerships </li></ul><ul><ul><li>Partnerships </li></ul></ul><ul><ul><li>Limited liability partnerships (‘LLPs’) </li></ul></ul>Forming a Consortia
  12. 12. Bidding for Work <ul><li>Coherent Submission </li></ul><ul><ul><li>From each of the Members </li></ul></ul><ul><ul><li>Combined Experience & Expertise </li></ul></ul><ul><ul><li>Sharing the “Burden of Tendering” </li></ul></ul><ul><li>Demonstration </li></ul><ul><ul><li>Not Just coming together to hit Financial Threshold </li></ul></ul><ul><ul><li>Unity, Values & Culture </li></ul></ul><ul><ul><li>Opportunity to Raise Standards </li></ul></ul>
  13. 13. Being a Consortia <ul><li>From League Two to the Premiership </li></ul><ul><li>Training and Development of New Skills </li></ul><ul><li>Integration </li></ul><ul><ul><li>Common Systems & Processes </li></ul></ul><ul><ul><li>Synergy </li></ul></ul><ul><ul><li>Learn from One Another & Sharing Best Practice </li></ul></ul>
  14. 14. Martin Brown fairsnape 07776 234702 [email_address] @fairsnape Vassos Chrysostomou iBE Partnership 07776 234702 [email_address]

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