Presentation led by Cliff Jones from Department of Health at the APM Conference 2015

1. Department of Health
Dispelling NEC Contract Myths: ProCure21+ Framework
20th March 2015 www.procure21plus.nhs.uk
Cliff Jones MCIPS MRICS
P21+ Senior Financial and Commercial Manager
1

2. What decision have you made or will you make?
Procure21+ - The First Steps?
2

3. ProCure21+ Supply Chains
Like a marriage –
We look for the right
organisations with the right
culture and characteristics
and right people and
supply chains for an
effective long term
relationship to collaborate
with ourselves and NHS
support the delivery of
DH/NHS core business
objectives.
“EVIDENCE” REQUIRED FROM PSCPs
AND SUPPLY CHAIN MEMBERS.
3

4. What is ProCure21+?
• A framework and procurement method– with 6 key Supply Chain Partners and
their Integrated Supply Chains – until September 016;
• Managed by the Department of Health, supported by HM Treasury and Cabinet
Office;
• Not just design and construction:
• Service review/planning;
• Estate Strategy and Care Planning ;
• Estate Rationalisation;
• Business Cases;
• Refurbishment;
• Small/Minor Works.
Supply Chains may
advise not to build
additional facilities
to deliver same
healthcare
outcomes if
engaged early!
4

5. ProCure21+ - Where are we now?
ProCure21 640/£4.1bn – Schemes
Registered
• 532/£2.8bn - Completed
• 74/£782m – On Site
• 35/£571m – In Development
ProCure21+
Commenced - Oct 2010
• 174/£3.7bn Schemes Registered
5

6. Scheme Measure
KPI
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Client Satisfaction - Product Average % out of 100 86% 85% 87% 84% 85% 85% 86% 88% 85% 86%
Client Satisfaction - Service Average % out of 100 80% 81% 83% 79% 78% 81% 82% 83% 83% 84%
Defects Average % out of 100 84% 79% 82% 79% 77% 81% 85% 84% 83% 85%
Safety
% achieving zero
accident incident rate
86% 71% 86% 84% 85% 98% 89% 99% 84% 96%
Predictability Cost (GMP) % to budget or below 100% 97% 94% 93% 97% 98% 97% 95%
100
%
100
%
Predictability Time % on time or early 88% 91% 89% 84% 97% 95% 96% 93% 84% 83%
ProCure21 Performance?
6

7. ProCure21/ProCure21+
NEC2/NEC3 Option C
Used on all Scheme Contracts
ProCure21 ProCure21+

8. ProCure21/ProCure21+
NEC2/NEC3 Option C
Challenge 1 – What key basic information is needed to enable effective
monitoring /management to enable the delivery of a successful outcome
for all on any project?
1. Programme (showing activities/float/time risk);
2. Resource plan (Labour/ Plant/Materials);
3. Cash flow forecast.
Do we think we implement this?
NEC contracts require the 1 & 2 first two,
P21/P21+ requires 3. as well.
8

9. ProCure21/ProCure21+
NEC2/NEC3 Option C
Challenge 2 – What is required to implement proactive problem solving
and prevent disputes arising to enable delivery of a successful outcome for
all on any project?
1. Effective teamwork;
2. Early warning culture/process that enables
anyone involved in a project to identify an
issue at anytime;
3. Problems only escalate the longer they remain
unresolved (“a problem shared is a problem
halved”) – you cannot conceal any problem
forever;
4. Supports effective risk management process
and reduces disputes.
Do we think we implement this?
NEC contracts provide for an Early Warning process
however always remember – “it’s good to talk” first. 9

10. ProCure21/ProCure21+
NEC2/NEC3 Option C
Challenge 3 – How do you avoid extensively amending/re- writing the NEC
Contact conditions to include processes, procedures or other Client
requirements ?
1. Utilise the Works Information as provided for in the
contract to identify processes and procedures or
other requirements;
2. The contractor is required to provide the works in
accordance with the Works Information.
Do we think we implement this?
Avoid changing the contract provisions themselves –
use the Works Information as it is part of the contract.
10

11. ProCure21/ProCure21+
NEC2/NEC3 Option C
Challenge 4 – How do we ensure that the time, cost or other effects of any
changes or other issues that arise during a project are addressed and
agreed at the time they occur and avoid potential disagreements or
disputes later ?
1. Have a proactive change management
process that requires the notification of the
issue and identification and agreement of a
solution and associated time and cost effects
(“quotation”) at the time.
2. Identify timescales for actions to be taken –
includes Client and Project Manager here.
Do we think we work this way?
Need to ensure that all decisions are made within the
timescales - “proactive” project management. 11

12. ProCure21/ProCure21+
NEC2/NEC3 Option C
Challenge 5 – What basic processes and procedures are required to
enable delivery of a successful outcome for all on any project?
1. Payment ;
2. Programming/Time;
3. Early Warning Process;
4. Change Management;
5. Risk allocation/management and Insurance;
6. Testing/Defects ;
7. Termination/Disputes .
Do we think we apply effective processes ?
NEC sets out simple processes that can be
enhanced in the Works Information - those
projects that have problems are those that
fail to apply the processes. 12

13. Achieving success through effective
teamwork and consistent adherence to
process/procedures.
P21+ NEC Contract Administration Pro Formas and Contract Templates
– enable common understanding and awareness as well as
ensuring a consistent approach, application of
processes/procedures by all on all P21+ projects.

14. Thank you
www.procure21plus.nhs.uk 14