Procurement Strategy - Town and Community Hub Programme
North Lanarkshire Council · 29 September 2022
Back to Policy and Strategy Committee — 29 September 2022 and its agenda
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North Lanarkshire Council Report Policy and Strategy Committee Does this report require to be approved? ☒ Yes ☐ No Ref JMcK/MMcB Date 29/09/22 Procurement Strategy – Town & Community Hub Programme From James McKinstry, Head of Asset and Procurement Solutions E-mail McBrideMark@northlan.gov.uk Telephone Mark McBride, Property Manager (Estate Development) 07583 094 928 Executive Summary In February 2019, the Policy and Strategy Committee approved an interim Procurement Strategy for Phase 3 of the Schools and Centres 21 Investment Programme (now called the Town & Community Hub Delivery Programme) which recommended that Hub South West Scotland partnership (HubSW) was utilised for procurement of six projects noted within the report which had approval at that time. During a recent audit, a recommendation was made to update the Procurement Strategy to reflect recent developments with the Enterprise Contract. This report seeks approval of an updated Procurement Strategy for the remaining projects within Phase 3 of the Town & Community Hub Delivery Programme. The updated Procurement Strategy recommends that a robust options appraisal is undertaken for two remaining projects which have not yet been procured via HubSW to determine the most appropriate route to market. Recommendations It is recommended that the Policy and Strategy Committee, as detailed in the report: 1. Approve the updated Procurement Strategy for the Town & Community Hub Delivery Programme to provide a route for the Council to procure the remaining projects in the programme. 2. Acknowledge that all projects procured using this updated Procurement Strategy, will be subject to a report to committee (once the statutory consents, construction price and negotiated set of commercial risks are finalised) seeking approval to enter into each agreement for construction. The Plan for North Lanarkshire Priority All priorities Ambition statement All ambition statements
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1. Background 1.1 In February 2019, the Council’s Policy and Strategy Committee approved the use of HubSW as the preferred procurement route for the then Schools Investment Programme (now the Town & Community Hub Programme). Since then, the Council has utilised the HubSW procurement route to deliver projects within the Town & Community Hub Delivery Programme (the “Programme”). 1.2 This updated Procurement Strategy (the “Strategy”) provides an overview of the work to date and future undertakings for how the Council will: • Deliver new Town and Community Hubs; • Achieve this within the highly regulated area of public procurement; • Maximise the social, economic and environmental benefits which could be obtained; and • Enable best value and continuous improvement to be delivered through the Programme. 1.3 The Programme is part of the Council’s wider “The Place-The Vision” strategy which outlines the aspirations of the Council to deliver the ambition outlined within the Plan for North Lanarkshire. The Programme now consists of eight major infrastructure and construction works to construct educational and community facilities within a capital budget of approximately £240m. Of these eight projects, six have already been committed to HubSW as per below: • Newmains Community Hub; • Chryston Community Hub; • Carnboe/Sikeside Community Hub (now known as Riverbank); • Orbiston Community Hub; • St Kevin’s Community Hub; and • Gartcosh Community Hub. The next project to be taken forward is St Stephen’s Community Hub subject to a Contract Strategy which was presented to the Town and Community Hub Programme Board week commencing the 29th August 2022. 1.4 The updated Strategy reviews: the current procurement route for these projects; current market conditions alternative routes to market including collaborative frameworks; lessons learned and best practice; programme risks; and the potential impact of the Councils Enterprise Project contract. It acknowledges that the construction industry is going through a turbulent period because of ongoing market conditions primarily due to Brexit, the Covid-19 pandemic and more recently the conflict in Ukraine; and assesses the impact that these conditions have on the ability to determine a “one size fits all” approach to this programme of works. 1.5 The updated Procurement Strategy is appended to this report. 2. Report 2.1 The requirements of the Town & Community Hub Delivery Programme include: • Design, build and construction of new community hub facilities in various locations; • Procurement of Council advisors e.g. Cost Consultants/Quantity Surveying Services and Independent Tester; and • Procurement of multi-disciplinary design teams via Intelligent Briefs to undertake Concept Designs (up to RIBA Stage 2); high level feasibility costs
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and budget setting; site investigations; and workshops / engagement with key stakeholders. 2.2 The Programme can also involve other key stakeholders including (but not limited to) the National Health Service (NHS) and Police Scotland. Current Projects 2.3 The initial projects within the programme, a brief overview of scope, procurement route (if already determined) and value are contained in the Procurement Strategy contained within Appendix 1. Note that the budgets are subject to ongoing review considering current market fluctuations. 2.4 All the projects noted in the Procurement Strategy to date have had their procurement routes determined by the previous Procurement Strategy presented to the Policy and Strategy Committee in February 2019. 2.5 Given the ambition of the Programme, there is a significant technical, strategic and procurement workload for which experienced resources are required to deliver the above Programme on time and on budget. 2.6 HubSW was chosen as the ‘preferred’ route to market for the delivery of the Programme as it provides the Council with:- Flexibility, Beneficial Efficiency, Cost Certainty, Robust Performance and Added Value. It also provides access to a diverse range of technical and quantity surveying project resource, all of which are subject to transparent fee caps procurement and quotations. Current Market Conditions 2.7 In early 2022, the construction industry showed signs of recovery from the material shortages and increased demand which were experienced in 2021, however, despite early signs of optimism continued global economic issues have reversed this progress and the inflation rate has surged at the fastest rate for 30 years. 2.8 The current period of construction market instability contributes to the inability for a one size fits all approach to be established for this programme of works. Proposed Procurement Approach 2.9 The Council has reviewed it’s procurement approach for future projects to ensure the most appropriate procurement route. The approach to procurement for each future project within the Programme must be carefully considered and balanced in the context of the route to market; availability of internal resources; required external resources; opportunities for Social, Environmental and Economic benefits, time pressures and sensitivities and co-ordination of the works in populated residential environments whilst continuing to ensure the Council achieves best value. 2.10 In delivering other significant areas of investment, the Council has utilised a variety of delivery methods and built-up internal expertise of delivering similar contracting arrangements which will aid the delivery of the Programme. 2.11 There are numerous routes to market which have been explored including Scottish Procurement Alliance (SPA), Scotland Excel, SCAPE and the development of a bespoke Council framework agreement.
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2.12 The Procurement Strategy recommends that all futures projects within the Programme are appraised using a bespoke Contract Strategy developed and approved by the Senior Responsible Officer and the Project Sponsor. 2.13 When preparing the Contract Strategy for future projects, the Hub Delivery Team will: • Review historical, existing and similar contracts procured within the Council and externally to identify lessons learned and best practice which could be applied to the project; • Identify whether forthcoming projects and their timetables allow for a contractual structure to encompass multiple projects; • Undertake appropriate market analysis and option appraisals to establish and justify the available route to market that will enable best value to the Council; • Identify the most appropriate route to market for the specific project(s); • Appraise and identify appropriate terms and conditions to be applied within the contractual arrangement; • Enable appropriate cost control measures to be implemented and to explore potential price mechanisms that will allow the Council to continue to obtain overall best value; • Maximise wider social, environmental and economic benefits within the project; • Ensure compliance with the “Sustainable Procurement Duty”; • Identify the resources i.e. technical, procurement, legal, finance etc required both internally and externally to support any alternative procurement route required; • Identify potential risks associated with each project and enable sufficient mediation/remedial action to be taken; • Create a suite of appropriate contract mobilisation and contract and supplier management protocols to ensure that successful consultants/contractors perform to the desire levels set by the Council; and • Consider potential links to the future Enterprise Project. 2.14 As the construction market continues to evolve, review and revision of the updated Procurement Strategy will be subject to ongoing review. By doing so, it is hoped that future projects within the Programme are procured in accordance with: • The latest high level strategic guidance and any updates to the Procurement Regulations; • The latest market conditions and trends;
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• Identification and appraisal of future routes to market; • Determination of whether a “one size fits all” approach is available and demonstrates best value; • Cognisance of lessons learned and best practice of previous contracts awarded within the Programme; and • Further awareness of the risks identified at Programme level. 2.17 The Property Manager (Estate Development) will continue to act in the capacity as the Authority’s representative under each of the existing HubSW design and build contracts in all commercial and contractual undertakings. 3. Measures of success 3.1 The Procurement Strategy is based upon procurement routes that demonstrate Bext Value is capable of being achieved. 3.2 The procurement routes chosen for each of the remaining projects are specific to the design and build of public infrastructure for schools and community facilities. 3.3 The Procurement Strategy supports We Aspire, specifically, the priority of The Plan for North Lanarkshire to support all children and young people to realise their full potential. 3.4 The procurement routes for each project will deliver added value through Social, Environmental and Economic Benefits and a wide range of additional community benefits. These benefits will support other We Aspire ambition statements of the Plan for North Lanarkshire. 4. Supporting documentation 4.1 Appendix 1 - Procurement Strategy for the Future Town and Community Hub Delivery Programme. JAMES MCKINSTRY Head of Asset & Procurement Solutions
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? All projects procured are reported to the Town and Community Hub Programme Board. The Head of Finance sits on the Programme Board and has oversight of all financial decisions. All contract awards are subject to committee approval being sought. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Programme Team is in regular contact with the Council’s Legal Services to review potential legal implications. Further overview of this is detailed within the Procurement Strategy. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐
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If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? All projects that are taken forward align to the ambitions of the Digital NL programme of work. Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? All projects taken forward align with Council’s ambitions for Net Carbon Zero by 2030. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Risks associated with the Programme are contained within the Procurement Strategy. The update to the Procurement Strategy is recorded on Figtree and is regularly monitored and reviewed in accordance with the agreed Council approach. In addition, the key risks from the Town and Community Hub Programme Risk Register are regularly reviewed by the Programme Board.
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North Lanarkshire Council Procurement Strategy for the Future Town and Community Hub Delivery Programme 2021 / 22 – 2025 / 26
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Contents Page 1. Executive Summary 1 2. Programme Overview 1 3. Programme Projects and Timeline 2 4. Programme Resources 4 5. Procurement Regulation and Governance 4 6. Summary of Supply Market Conditions 4 7. Programme Procurement Approach 10 8. Projects to Date 10 9. Future Projects – Routes to Market 12 10. Future Council Developments - Enterprise Project 15 11. Social, Environmental and Economic Benefits 15 12. Procurement Lessons Learned and Best Practice 17 13. Programme Risks 17 14. Conclusion and Recommendations 17 Appendix 1: Project Contract Strategy and Options Appraisal Template 19
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1 1. Executive Summary 1.1 In February 2019, North Lanarkshire Council’s (the “Council”) Policy and Strategy Committee approved the use of Hub South West Scotland (hubSW) partnership agreement as the ‘preferred’ procurement route for the then Schools Investment Programme (now the Town & Community Hub Delivery Programme). Since then, the Council has utilised the HubSW procurement route to deliver some projects within the Town & Community Hub Delivery Programme (the “Programme”). 1.2 This Procurement Strategy (the “Strategy”) aims to provide an overview of the work to date and future undertakings for how the Council will: • deliver new Town and Community Hubs up to April 2026; • achieve this within the highly regulated area of public procurement; • maximise the social, economic and environmental benefits which could be obtained; and • enable best value and continuous improvement to be delivered through the Programme. 1.3 The Programme is part of the Council’s wider “The Place – The Vision” strategy which outlines the aspirations of the Council to deliver the ambition outlined within the Plan for North Lanarkshire. The Programme currently consists of eight major infrastructure and construction works to construct educational and community facilities within a capital budget of approximately £240m as detailed in section 3.1 below. Of these eight projects, six have already been committed to HubSW and two (St Stephen’s Community Hub and Abronhill Community Hub) have not yet had their route to market determined. 1.4 The Strategy reviews: the current procurement route for these projects; current market conditions; alternative routes to market including other collaborative frameworks; lessons learned and best practice; programme risks; and the potential impact of the Councils Enterprise Project contract. It acknowledges that the construction industry is going through a turbulent period as a result of ongoing market conditions primarily due to Brexit, Covid-19 and global economic factors and assesses the impact that these conditions have on the ability to determine a “one size fits all” approach to this programme of works. 1.5 The Strategy recommends the following: • The Strategy is kept under review until the end of Financial Year 2025/2026 when the impact of the “Enterprise Project” contract is likely to be more apparent; and • A Contract Strategy which includes a robust options appraisal is undertaken for the two remaining projects which have not been procured via HubSW to determine the most appropriate route to market taking into account lessons learned; best practice and a review of the programme risks. 1.6 Further detail in regard to the content of this Executive Summary is detailed within the remaining sections of this Strategy. 2. Programme Overview 2.1 The Programme is part of the Council’s wider “The Place – The Vision” strategy which, along with the development of town centre visions, and investment in country parks and
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2 greenspaces, outlines the aspirations of the Council to deliver the ambition outlined within The Plan for North Lanarkshire. 2.2 Through time, the Programme has an aspiration to replace all pre-1996 learning and teaching establishments. This amounts to over 100 establishments across the Council area. However, the Programme is not about replacing schools, it’s about creating facilities for the wider community – with education at the core. The Programme team has created three short videos which provide further information on the Programme: i) the Programme overview video provides an understanding of the Programme and what it looks to achieve, including how the Programme will be funded; ii) the guiding principles video outlines the principles which will be used to inform and assess that the Programme is delivering as per the aspiration; and iii) the prioritisation matrix video provides an overview of how projects will be prioritised. 2.3 Requirements of the Programme include: • design, build and construction of new community hub facilities in various locations across the Council area; • procurement of Council advisors e.g. Cost Consultants / Quantity Surveying Services and Independent Tester; and • procurement of multi-disciplinary design teams via Intelligent Briefs appointments to undertake Concept Designs (up to Royal Institute of British Architects (RIBA) Stage 2); high level feasibility costs and budget setting; site investigation surveys; and workshops / engagement with key stakeholders. 2.4 In addition to the Council, the Programme can involve other key stakeholders including (but not limited to) the National Health Service (NHS) and Police Scotland. 2.5 The Programme will be funded via the Community Investment Fund, which has been created to deliver against ‘The Place – The Vision’ and will bring forward projects in five- year cycles, in line with the Council’s capital programme. 2.6 To enable suitable governance of the Programme, a programme board has been created consisting of representatives from the Councils legal, finance, procurement etc. teams as well as representation from senior stakeholders. The “Hub Programme Board” meets on a regular basis to discuss progress of the Programme and to appraise and approve key strategic related decisions of the Programme. 3. Programme Projects and Timeline 3.1 The Programme consists of major infrastructure and construction works (including associated “Intelligent Briefs” and other consultancy appointments) to construct educational and community facilities throughout North Lanarkshire. The initial projects identified within the Programme are listed below: • Newmains Community Hub, Wishaw; • Chryston Community Hub, Northern Corridor; • Carnbroe / Sikeside Community Hub, Coatbridge; • Orbiston Community Hub, Bellshill; • St Kevin’s Community Hub, Coatbridge; • Gartcosh Community Hub, Northern Corridor;
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3 • St Stephen’s Community Hub, Coatbridge; and • Abronhill Community Hub, Cumbernauld. 3.2 Whilst one of the main purposes of the Programme is for projects to create modern and vibrant educational facilities for daily use via the creation of “School Zones” (i.e. areas associated with learning and teaching during the traditional school day), all projects are to be designed to be accessible to the wider community as outlined in the video links at section 2.2 above. This may be through: • ‘Community Zones’ built to serve the community both during the school day and outwith the traditional school day. Alternatively, in other projects, it may be the case that the ‘School Zones’ during the day offer high quality community spaces outwith the school day; This is a key element that must be considered in the design of spaces within any given hub; • ‘Staff Zones’ provide touchdown spaces for Council and partnership staff working within the local area, along with school and other staff who are based at the hub.; • ‘Sports Zones’ facilitate use of both the school community during the school day, and the wider community outwith the school day; and • ‘Partnership Zones’ may be included where other public sector partners (such as NHS or Police Scotland) wish to co-locate to serve the surrounding communities. 3.3 A brief overview of each project is detailed below: 3.3.1 Newmains Community Hub - Wishaw The vision is for a joint campus within Newmains which includes: Newmains Primary School; St Brigid’s Primary School; a Family Learning Centre; a ‘Staff Zone’, a “Community Zone” and an ‘External Sports Zone (11-a-side all weather synthetic pitch). 3.3.2 Chryston Community Hub – Northern Corridor The vision is for a campus within Chryston which includes Chryston Primary School; ‘Partnership Zone’ (Community Health Clinic); ‘Staff Zone’, and an ‘External Sports Zone’ (Multi-Use Games Areas). 3.3.3 Carnbroe / Sikeside Community Hub - Coatbridge The vision is for a joint campus within Coatbridge which includes: A newly merged Primary School, Early Years provision, a ‘Community Zone’, a ‘Staff Zone’ and an ‘External Sports Zone’ (11-a-side all weather synthetic pitch). 3.3.4 Orbiston Community Hub - Bellshill The vision is for a joint campus within Orbiston, Bellshill which includes: Sacred Heart Primary School; Lawmuir Primary School; a Family Learning Centre; a “Community Zone”; a ‘Staff Zone’, an ‘External Sports Zone’ (11-a-side all weather synthetic pitch), and a ‘Partnership Zone’ (Community police station). 3.3.5 St Kevin’s Community Hub - Coatbridge The vision is for a new build within Bargeddie, Coatbridge to accommodate St Kevin’s Primary School. Other facilities will be subject to scoping and feasibility.
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4 3.3.6 Gartcosh Community Hub – Northern Corridor The vision is for a new build Gartcosh Primary School within the “Northern Corridor”. Other facilities will be subject to scoping and feasibility. 3.3.7 St Stephen’s Community Hub - Coatbridge The vision is for a new build community hub which will incorporate a new build for St Stephen’s Primary School in Sikeside, Coatbridge. Other facilities will be subject to scoping and feasibility. 3.3.8 Abronhill Community Hub - Cumbernauld The vision is for a community hub will be brought forward which will house multiple primary schools, early years facilities, community facilities, partnership facilities. Facilities are still subject to scoping and feasibility. 4. Programme Resources 4.1 Given the ambition of the Programme, there is a significant technical, strategic and procurement workload for which experienced resources are required to deliver the Programme on time and on budget. 4.2 The Councils’ Corporate Procurement Team does not on its own have sufficient resources to fully absorb the additional workload and some additional specialist support would be necessary. In particular, the procurement approach for each project may require specialist input from individuals throughout the Council and appointed external partners. 4.3 Consideration may need to be given to the availability of skillsets, experience and resources as the Programme develops and becomes clearer as this could impact how the Town and Community Hub team deliver all requirements of the Programme. 5. Procurement Regulation and Governance 5.1 The Council is subject to the requirements of the Procurement Reform (Scotland) Act 2014, and the relevant provisions as set out in the Council’s Procurement Strategy and General Contract Standing Orders. 5.2 All contractual arrangements awarded by or on behalf of the Council are subject to an obligation to demonstrate best value for the Council and must be able to demonstrate fairness, non-discrimination, equal treatment, and transparency to all parties having an interest or bidding for projects within the Programme. 6. Summary of Supply Market Conditions 6.1 The market analysis set out in parts 6.2 and 6.3 was obtained from the supply market analysis platform IBISWorld.com in March 2022. 6.2 Commercial Building Construction (IbisWorld Report F41.201 – September 2021) The Commercial Building Construction industry's performance is contingent on various external factors, particularly cyclical economic fluctuations, investor sentiment and government funding for social infrastructure. Following the EU referendum, market uncertainties ensued, with private investors and business reluctant to dedicate significant spending towards capital ventures which command a high upfront cost. While government capital procurement frameworks and
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5 private investors with an appetite for risk provided some respite, contracts emerging from such markets failed to offset a devaluation in industry output amid a lull in big-ticket business investment. Over the five years through 2021-22, revenue is forecast to decline at a compound annual rate of 5.8%. In 2020-21, revenue is estimated to have plummeted by 28.5%. Revenue is expected to grow by 9.3% to reach £15.2 billion in 2021-22. The COVID-19 (coronavirus) pandemic and resultant economic shock caused widespread operating difficulties and severe supply chain disruption. Contractors reported a reduction in business activity, reflecting temporary site closures as firms reviewed their operating procedures to assess the feasibility of continuing developments already in motion, or starting new ventures during the pandemic. Operators also noted scaled back, frozen, delayed or cancelled plans by clients. Disruption to workflow presented many contractors with insolvency pressures, as cash balances and profitability were hit by reduced output. While lingering supply chain issues and money worries are expected to continue for the near term, contractors are expected to recoup preceding losses to a certain extent, as the reopening of the economy sparked a new investment cycle, while deferred revenue is realised. Conditional on whether indicative economic recovery continues, and the nature of the UK market's adjustment to terms of the EU-UK Trade and Cooperation Agreement, a revival in commercial construction market activity may continue in earnest if the correct mechanisms are in place to support capital investment, and if development of social infrastructure remains at the forefront of policy objectives going forward. Over the five years through 2026- 27, revenue is forecast to increase at a compound annual rate of 5.6% to reach £20 billion. Nevertheless, contractors remain cautious with regards to near-term operations, particularly as temporary government stimulus support is being phased out. “Key Trends” within the market include: • industry revenue fell by more than one-quarter in 2020-21 due to disruptions caused by the pandemic; • industry operators have found valuable contract opportunities in key growth markets; • firms will likely initiate redundancy programmes amid market downturn; • the commercial construction market's growth will be contingent on government support for building developments; • demand for office space could be limited if business processes are altered following the pandemic; and • demand for lucrative office construction solutions is likely to narrow over the next five years 6.3 Construction Supplies and Materials (IbisWorld Report G46.730 – March 2022) Operators in the Construction Supplies Wholesaling industry wholesale building materials and products ranging from structural timber to finishing paints and varnishes. The industry sells materials that are required by the downstream housing, non-residential building and infrastructure construction markets, which means that its performance is largely dependent on activity in the construction sector. Demand for industry products is generated by hardware retailers, construction contractors and tradesmen.
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6 Over the five years through 2021-22, industry revenue is anticipated to have grown at a compound annual rate of 0.6%, generating £35.8 billion. The easing of COVID-19 (coronavirus) restrictions on businesses as well as government support for the construction industry is expected to support revenue growth of 26.4% in 2021-22. This is a sharp recovery after the coronavirus outbreak drove a steep in demand over 2020-21. Supply issues have resulted due to the pandemic and to a lesser extent the UK's departure from the European Union. This has resulted in longer lead times and severe price inflation. Over the year through June 2021, producer price input rose by 9.1%, while producer price output rose by 4.3%, according to the Office for National Statistics. Price inflation will support stronger revenue growth but may also deter new construction projects from starting. Revenue is forecast to increase at a compound annual rate of 4.1% over the five years through 2026-27 to reach £43.6 billion. Industry revenue is expected to expand as confidence continues to rise following the successful rollout of the UK vaccination programme and the implementation of the EU-UK TCA, offering more certainty on trade prospects with Europe. The re-introduction of the Help to Buy Scheme between April 2021 and March 2023 is expected to drive property transactions and support industry revenue within the period. Furthermore, the National Infrastructure and Construction Pipeline will lead to over £200 billion worth of investment by 2024-25, supporting industry revenue. Profit margins are anticipated to narrow over the period, as wholesale bypass increases. Enterprises are expected to find opportunities serving niche markets, supporting growth in enterprise numbers over the five years through 2026-27. Key Trends of this market include: • in the current year, the construction market has provided robust demand for construction supplies wholesalers; • a series of government schemes have driven downstream demand for the industry throughout the past five-year period; • over the past five years, profit margins are expected to narrow due to increasing wholesale bypass; • residential construction is expected to continue to drive industry growth over the next five-year period; • extensive downstream assistance is expected to significantly boost demand for the industry's products over the next five years; and • over the next five years, competitive pressure is expected to remain intense in the construction materials wholesaling market. 6.4 Supply Market Tools and Supply Market Impact on the Programme 6.4.1 PESTLEE Analysis Area Developments Significance to the Programme (H / M / L) Political • Construction Industry is well represented with industry bodies at Government level; • Construction identified by Governments as an area that will help shape the High
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7 economic recovery plan from Covid-19; and • Due to the prestige, vision, and total estimated expenditure of the Programme, it has the potential for additional scrutiny and interest from elected members. Economic • Volatility of Construction Industry – current market conditions are buoyant, and contracts are widely available; • Availability of suitable contractors may be more limited as the Programme progresses than at time of writing; • Construction supplies demand, pricing and availability expected to remain volatile until late 2022 and potentially beyond; • Following Russia’s invasion of Ukraine in February 2022, a number of economic sanctions were applied to Russia that could further affect the provision and pricing of raw materials, fuel etc. and; • Brexit implications anticipated to impact importing raw materials, labour costs, and oil / fuel to the UK still to be fully visualised. High Social • Aging population may impact on the skills available in the construction industry therefore a focus on recruitment and training is required; and • There is a need for modern education and community facilities in Scotland to suit varying demands and geographic areas. High Technological • Technology advancements are continually evolving which may result in the need to renew and update existing technology and future proof as applicable such as offsite modular construction. Medium Legal / Regulatory • Scottish and UK Procurement Legislation; • Building Standards Regulations; • Health and Safety / CDM Regulations; and • The “Cole Report” – Following the collapse of a wall at a school in Edinburgh and subsequent closure of 17 schools in 2016, an independent inquiry was commissioned. The resulting “Cole Report” is far reaching in terms of how the design & construction of buildings in High
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8 Scotland operates with 40 recommendations being made across 10 subject headings. Environmental • Building standards – Compliance to standards in specifications; • Sustainability / BIM – Specifications to assist in compliance with sustainability. BIM will be used in the design stages; and • The Council’s declaration of a climate emergency and introduction of its Climate Plan setting out actions to move to net zero greenhouse gas emissions by 2030. High Ethical • The Council has a duty of care to ensure its moral obligations, minimise social and public pressures, cultural imperialism, and embrace / promote diversity. • Additional non-financial advantages considered to be beneficial to the North Lanarkshire community (i.e. Community Benefits) should be iobtained for procurement processes within the Programme; and • Due to the level of labour expected to be required, fair working practices including the payment of the Scottish Living Wage, removing “Zero Hours Contacts” etc. within contractor’s organisational structure, sub-contractors, and supply chain. Medium – High 6.4.2 Porter’s Five Forces Area Impact / Position (H / M / L) Justification Power of the Council Medium • Construction works regularly procured by both the public and private sectors in Scotland; and • Large number of construction / regeneration projects being undertaken throughout Scotland and the wider UK providing sufficient competition to be conducted. Power of the Market High • The Programme requirements lend itself more to the larger contractors within the supply market. This is detrimental for small to medium enterprises (“SME”) being awarded a main contract, however sub-
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9 contracting opportunities may be available. • Costs driven by labour rates and materials; • Brexit Implications – Imports and Exports; and • Large number of construction / regeneration projects being undertaken throughout Scotland and the wider UK allowing contractors to pick and choose what projects to tender for. Market Competitiveness Medium • Various contractors within the market that know each other well and compete against each other regularly. However, individual workload commitments and changing personnel has the potential reduce competition. Threat of New Entrants Low • Low barriers to entry into marketplace; and • Main source of expenditure is labour therefore there is not a high turnover of new contractors in the market. Threat of Substitutes Low • Robust specification will limit volume of substitute products available therefore low threat. 6.4.3 Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis Strengths Weaknesses ● Clearly defined requirements and vision; ● Local Government attractive client; ● No significant impact in terms of size of the Programme with contractors and other local authorities; ● Availability of central Government funding; and ● Contractor availability from third party framework agreements and procurement partners who have demonstrated interest in the Programme ● Tight timescales; ● High public and political interest; ● Meeting key milestones for the Council objectives; ● Lack of policy / direction to obtain net zero carbon within the supply market; and ● Council bureaucracy to progress and obtain adequate approvals etc. Opportunities Threats ● tailored approach in terms of feasibility, engagement, design, and build; ● ability to react to market feedback, best practice etc. and implement continuous improvement where possible; and ● Pricing strategies to be benchmarked against historic projects and devised ● Impact from other stakeholder’s timescales and works completion i.e. planning consents; ● Construction supplies demand, pricing and availability expected to be volatile until late 2022 and potentially beyond; and
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10 accordingly for the Programme / future projects. ● Other public and private sector regeneration strategy / plans potentially impacting on the market availability and their ability to manage all commitments. 7. Programme Procurement Approach 7.1 To deliver the Programme, an exciting and ambitious approach to undertake procurements will be required. 7.2 These procurements will cover a broad range of commodities covering supply of specialist construction and design services and undertaking of highly complex construction works projects. 7.3 The approach for each project within the Programme must be carefully considered and balanced in the context of the route to market, construction delivery models available to the Council, availability of internal resources, required external resources, time pressures and sensitivities and coordination of the works within potentially densely populated residential environments. 7.4 This Strategy sets out a high-level delivery model for the Programme. It includes high-level analysis of existing procurement arrangements which the Council could utilise to secure delivery capacity at the earliest opportunity and where there are gaps which will require new procurement procedures to be undertaken. 7.5 Where any new procurement routes are required, the Strategy considers where these could be procured early through framework arrangements to provide timely access to resources as required during the Programme. 7.6 The Programme represents a significant investment for the Council. The Council has undertaken, and is currently undertaking, significant construction related programmes in other areas in recent years including: • City Deal; • the Councils ongoing Capital Programme; • Early Years 1140 Provision; and • New Supply / New Build Housing. 7.7 In delivering the programmes above, the Council has utilised a range of delivery models and built-up internal expertise of delivering similar contracting arrangements which should aid the delivery of the Programme. In November 2021, the Council arranged a number of sessions with both internal and external partners to ascertain further information and processes of how key capital projects were procured and delivered. 8. Projects to Date 8.1 In February 2019, the Councils Policy and Strategy committee approved use of Hub South West Scotland partnership agreement as the ‘preferred’ procurement route for the then Schools Investment Programme (now referred to as the Town & Community Hub Delivery Programme) 8.2 The Council is a shareholder in the twenty-year public private partnership agreement with Hub South West Scotland (HubSW). HubSW is a development partner for public sector partners to deliver strategic services and community-based infrastructure including schools. This partnership agreement was procured and formed following approval at the Policy and
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11 Resources Committee in September 2012. The Council did not require to undertake any further procurement of HubSW for the foreseeable future. Projects were progressed through the submission of ‘New Project Requests’ – detailed authority requirements. HubSW undertook the call off procurement between their Tier 1 contractors with the Council participating in the process to satisfy itself on fairness, relevance, quality, performance, and transparency in accordance with the method statements set out in the Territory Partnering Agreement. 8.3 Since February 2019, the Council has utilised the HubSW route to market to deliver the projects detailed below, as they complied with the qualifying criteria set out in the “Territory Partnering Agreement” and were subject to a check against the governance regulations to ensure compliance. • Newmains Community Hub; • Chryston Community Hub; • Carnbroe/Sikeside Community Hub; • Orbiston Community Hub; • Abronhill Community Hub (Intelligent Brief only); • St Kevin’s Community Hub; and • Gartcosh Community Hub. 8.4 HubSW was utilised as the ‘preferred’ route for the delivery of the Programme as it provides the Council with: a) Flexibility The Council can progress projects as it needs to without the need to undertake lengthy and resource intensive Council led framework procurement activities every three years; this does not tie the Council to HubSW for the period as the Council can stop using HubSW at any point if an alternative best value procurement route comes to fruition and is appraised to demonstrate better value. b) Beneficial Efficiency The HubSW method statement process is a two-stage process similar to the gateway process within historic Council framework agreements without the issue of two separate contracts. HubSW’s appointed tier 1 main building contractors are organisations who have historically worked the Council. This means that the continuous improvement on projects from the transfer of lessons learned will not be lost; collaboration to secure supply chain discount will be more effective, shared resources with HubSW bringing benefits to the public purse and continuity through the pipeline should bring efficiency in delivery to reduce timescales in project development. c) Cost Certainty HubSW and their supply chains are subject to capped fees and transparent pricing. d) Robust performance HubSW must operate to circa 80 Key Performance Indicators. HubSW’s performance is reviewed not only through contract management but there are two additional oversights possible i) through the Territory Partnering Board, which the Council has a representative on; and
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12 ii) through the Council’s shareholding. e) Added value HubSW has a fully developed community benefits approach and each project procured via the HubSW must secure and deliver a range of community benefits. Accordingly, this approach supports the Council Plan. 8.5 The hub model provides access to a diverse range of technical (architects, engineers etc.) and quantity surveying (QS) project resource, all of which are subject to transparent fee caps, procurement, and quotations. This provides a flexible and experienced resource pool to support the technical and cost scrutiny on projects being delivered using the hub model which does not add revenue burdens to the Council. 8.6 The hub model also provides best value; for example, it is mandatory for HubSW to procure a Quantity Surveyor (QS) independent from the appointed building contractor. The QS scrutinises the construction costs, reviews work packages and reviews allowances against industry benchmarks. There are no HubSW costs to review. 8.7 A joint QS and technical appointment between the Council and HubSW, using HubSW to procure, was trialled very successfully on the Cumbernauld Academy DBFM project and it is intended to repeat this for forthcoming projects, on a value for money basis. This also helps to mitigate against internal resource conflicts with competing priorities so that the delivery of the Council’s “Capital Investment Programme” is not compromised. 8.8 The use of HubSW has presented some risks which are being monitored and managed through regular communication with HubSW. These are as follows: • HubSW publication of Voluntary Ex-Ante Transparency (VEAT) notice – HubSW published a VEAT notice referenced AUG424816 on 18 August 2021 to raise the contract value threshold. This approach may raise the risk of procurement challenge to the Council once the original HubSW contract threshold has been exceeded however the risk is being managed through communication with HubSW and regular review of alternative procurement routes. • HubSW restructure – ongoing management restructure in HubSW causing resource pressures. Regular meetings being held with HubSW to ensure that sufficient resource is available to manage projects within the Programme. • Design and Build Development Agreement (DBDA) only allows for one participant (project partner)– many of the upcoming projects within the Programme have more than one participant and are being procured with other local government partners. The DBDA only provides for one participant to enter into the agreement with HubSW. This causes pressure on internal resource to conclude a back-to-back agreement with project partners to reduce Council risk. This is also creating programme risk as any delay with delivery partners signing the back-to-back agreement is impacting on the Council’s ability to sign the DBDA. 8.9 The Property Manager (Estate Development) will continue to act in the capacity as authority’s representative under each of the HubSW relevant contracts in all commercial and contractual undertakings. 9. Future Projects – Routes to Market
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13 9.1 As a result of the risks identified in 8.8 above, the Council is reviewing its procurement approach for future projects in the Programme to determine if HubSW is still the most appropriate procurement approach. This is considered good procurement practice. This section highlights the potential alternative procurement routes whilst providing a high-level overview of the services that each could provide. 9.2 Due to risks in the existing route to market, it is considered that a “one size fits all” approach for all future projects is not achievable. Accordingly, for future projects, an individual and specific “Contract Strategy” will be developed in accordance with the Councils General Contract Standing Orders. Each Contract Strategy should evaluate the suitability of each procurement approach against the specific project by way of completing a robust option appraisal to appraising the potential options detailed within sections 9.4 and 9.5 below. 9.3 A copy of the Programme specific Contract Strategy, including the options appraisal toolkit is detailed within Appendix 1 of this Strategy. 9.4 Collaborative Procurement Approaches 9.4.1 As well as the HubSW route as detailed in section 8 above, the Council actively and regularly collaborates with other Councils and procurement organisations in Scotland and beyond to share best practice and create joint collaborative agreements with others which deliver procurement efficiencies. In particular: a) The Council can access collaborative Scottish Government contractual arrangements as and when they become available; b) The Council is a member of Scotland Excel, the local government procurement centre of expertise in Scotland. Scotland Excel is formed by a Joint Committee of all local authorities in Scotland. The Council regularly participates in, and is involved in the development of, collaborative contracts, some of which may be applicable to the Programme as detailed below: • Demolition and Deconstruction Services (1119); and • Engineering and Technical Consultancy (0820). c) The Council can access collaborative contractual arrangements from the Crown Commercial Service (CCS), a division of the UK Government as and when they become available. At time of writing, the CCS Construction Works, and Associated Services framework agreement (RM6088) has been identified as the most suitable agreement from CCS that could be utilised for the construction elements of the Programme and is available until October 2026. d) The Council can access contractual arrangements procured and implemented by the Scottish Procurement Alliance (SPA). SPA is part of the LHC Group, which has been supporting public sector organisations with technical procurement expertise for over 50 years. Some collaborative arrangements via SPA that may be applicable to the Programme are detailed below: • Public Buildings Construction and Infrastructure (PB3); and • Construction Consultancy (H1 WS1). e) The Council may also access contractual arrangements procured and implemented by SCAPE Scotland (SCAPE). SCAPE is a public-sector partnership dedicated to creating spaces, places and experiences that leave a sustainable legacy for the community. Since 2006, SCAPE have been involved in circa 12,000 projects across the UK public sector via their procured direct award framework agreements for construction and consultancy, property management services and innovative design
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14 solutions. The SCAPE frameworks available for this programme of work are detailed below: • Construction Framework; and • Consultancy Framework. f) The Council can access other public sector contractual arrangements where they have been asked to participate in and are named on the published contract notice. In December 2020, Edinburgh City Council awarded their Professional Services framework agreement which the Council can access and may provide another route to market for consultancy related services whilst Glasgow City Council awarded their Construction and Trades framework agreement in November 2019 which the Council can use for minor construction, landscaping etc. works. 9.5 Bespoke Council Arrangement 9.5.1 From 2015 – 2019, the Council had procured and implemented its own multi-contactor framework agreement for requirements prior to this generation of the Programme. 9.5.2 Further to the many collaborative procurement approaches detailed above, the Council could also elect to implement its own bespoke arrangement to provide a route to market for requirements within the Programme. 9.5.3 As was procured in 2015, implementing a new multi-contractor framework agreement would be a potential option. 9.5.4 By electing to implement a framework agreement as opposed to a contract or even a dynamic purchasing system, it would provide the Council with access to specific contractors appointed via a competitive and robust procurement procedure. This would allow for greater engagement with contractors appointed to the framework to assist with shaping and designing the Programme and specific projects without fear of breaching procurement regulations. 9.5.5 As with all framework agreements, contractors would be appointed on the basis of the Council not guaranteeing any level of spend, demand or exclusivity throughout the framework agreements period. 9.5.6 Additionally, the Council would be free to structure the framework agreement to provide maximum flexibility as it sees fit. This could include (but is not limited to): • applying its own contractual terms and conditions (as detailed in section 9.6 below) and pricing options to all call-off contracts awarded; • splitting the requirements of the Programme across a single or multiple lot structure; • application of call-off mechanisms that best suit the requirements of the programme i.e. direct award via ranking, direct award to any contractor appointed and / or a further competition; and • flexible approach to quality and pricing weightings / criteria to be applied to call-off procedures. 9.5.7 Whilst implementing a framework agreement is a potential option, procuring and implementing specific contracts for each project within the Programme could also be considered depending on timescales, complexity, value etc.
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15 9.5.8 Should the Council implement its own contractual arrangement for the construction elements of the Programme, the design and services elements would likely be procured via the collaborative professional services framework agreements available via third parties as identified in section 9.4.1 above. 9.6 Contractual Terms and Conditions 9.6.1 In addition to the multiple routes to market the Council has available for the Programme, applying appropriate contractual terms and conditions is also fundamental to ensuring the timely completion and success of each project and ultimately the Programme as a whole. 9.6.2 A number of contractual terms and conditions could be adopted within the programme including NEC3/4 suite of contracts; SBCC contracts; DBDA as required when using HubSW and specialist / specific terms and conditions applied within collaborative framework agreements 9.6.3 The Council should call upon its own knowledge and expertise when identifying and selecting contractual terms and conditions. 10. Future Council Developments - Enterprise Project 10.1 The Enterprise Project is item P001 in the Council’s programme of work which supports the delivery of the “Plan for North Lanarkshire”. The Enterprise Project aims to develop an innovative new approach to delivery for a full range of interconnected property, community asset and infrastructure investments to ensure the Council delivers on its shared ambition for inclusive growth and prosperity for the people and communities of North Lanarkshire. 10.2 The Enterprise Project Delivery Model (the “Delivery Model”) shall adopt a hybrid approach which will consist of a blend of in-house delivery, supplemented as required by external expertise and capacity, while continuing to deliver services through a range of third-party contracts. 10.3 The Delivery Model promotes a phased approach to implementation. This approach will deliver improved efficiency, incremental improvement, and greater socio-economic impact in the short to medium term while allowing the Council sufficient time to further develop its in-house commercial capacity and capability and to benefit from any improvement in market conditions in the medium to long term. 10.4 The Delivery Model will create focused strategic relationships with a small number of ‘best in class’ service providers from the private sector along with the development of a more integrated internal ‘intelligent client’ function, building internal commercial capacity and capability. This approach will significantly reduce the number of procurements required and contracts to manage in the future and provide efficient access to service provision allowing the Council to accelerate delivery of its asset related maintenance and investment plans which includes the requirements of the Programme. 11. Social, Environmental and Economic Benefits 11.1 The “Sustainable Procurement Duty”, outlined in Procurement Reform (Scotland) Act 2014 requires the Council to consider how it can improve the social, environmental, and economic wellbeing of its locality with a particular focus on reducing inequality. Accordingly, the Council has an opportunity to directly influence the Programme’s impact on North Lanarkshire’s environment, people, and communities. Sustainable development is integral to the Council’s key aims and objectives and the Council is committed to ensuring that it maximises every opportunity to grow North Lanarkshire’s economy.
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16 11.2 For each project within the Programme, a sustainability impact assessment should be completed that considers the potential environmental, social, and economic aspects that could be incorporated within each specific procurement and contracting process. 11.3 Social Benefits 11.3.1 Every contract awarded within the Programme should consider as part of the procurement process the opportunities for Community Benefits, which are considered to be fair and proportionate to the size and value of each project and be targeted to ensure maximum social value is obtained for the people of North Lanarkshire. 11.3.2 Preferred Community Benefits to be requested as part of the Programme could include: • targeted employment and recruitment; • apprenticeships and graduate training initiatives; • educational support initiatives; • supply chain development activity; • vocational training; • community, corporate social responsibility (CSR) • supported business, third sector and voluntary sector initiatives; and • equality and diversity initiatives. 11.4 Environmental Benefits 11.4.1 The Programme should look to explore the potential of maximining the benefits to the environment both within the design / build stage through to the operation of buildings in accordance with both Council and national policies, guidance etc. including but not limited to: • adopting sustainable construction methods; • protecting and conserving water and its infrastructure; • preserving the local habitat; • optimising indoor design to enhance natural resources; • reducing fossil fuel and energy usage by embracing renewable sources; and • reducing waste and enabling sufficient recycling routes 11.5 Economic Benefits 11.5.1 Consideration should be given to develop local / North Lanarkshire based organisations to enable them to successfully bid for contracts, either as the main contractor or sub- contractors. 11.5.2 Successful contractors should also adopt the Scottish Government’s “Fair Work First” approach which the Council has endorsed. The Fair Work First approach is focused on driving high quality and fair working practices across the labour market by applying relevant criteria to public sector contracts and business opportunities. 11.5.3 An assessment of mandating payment of the living wage to individuals employed on contracts within the Programme could also be considered where: • Fair Work First / fair working practices, including payment of the real Living Wage is relevant to how the contract will be delivered; • It does not discriminate amongst all potential bidders; • it is proportionate to do so, and
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17 • the contractual agreement will be delivered by workers based wholly within the United Kingdom. 12. Procurement Lessons Learned and Best Practice 12.1 In order to assess the most appropriate approach to delivering the Programme, a review of previous procurement processes / contracts awarded will be undertaken to identify lessons learned and areas of best practice that could be applied to future projects. This should be a continuous review throughout the Programme and include (as a minimum) feedback from market engagement events (if held), tender responses, consultation with colleagues in other Council service areas and where possible other Local Authorities and applied contract management scorecards, procedures etc. 12.2 All areas of lessons learned, and best practice identified which is relatable to the Programme will be recorded, reviewed / updated on a regular basis, and applied where possible to enable continuous improvement of each project as the Programme progresses. 13. Programme Risks 13.1 A number of risks currently exist within the Programme and as it develops and evolves, further unknown risks are likely to come to fruition. A Programme “Risk Register“ has been created within the Councils “Figtree” risk management software platform with further Risk Registers to be created for each specific project. 13.2 The Programme team has identified, thoroughly assessed, and understood Programme specific risks which have been identified and determined to be significant enough to merit inclusion on the Risk Register. 13.3 Critical to the Programme is ensuring that there is appropriate variety and breadth of stakeholder / subject matter input to develop information for each risk and its potential impact on the intelligent brief, design and construction works. This should ensure that a balanced and well-informed view of the risk and its assessment is obtained and ensures a common understanding of the risk and associated controls and actions amongst staff. 13.4 A number of procurement related risks will also be assessed with consultation from the Council’s Corporate Procurement Team. Areas including (but not limited to): Lack of Interest / Market Availability and Capacity; Failure to Secure Competitive Tenders / Pricing; Challenge on Procurement Processes; Serious and Organised Crime Protocols; SME Agenda; Contract Mobilisation; Financial Standing of Contractors; Contractor Performance Failure; Construction Material Availability and Cost Control Measures should continually be monitored both with Programme and project Risk Registers with unique mitigation measures developed and implemented. 14. Conclusion and Recommendations 14.1 A number of projects have already been procured as detailed in section 8.3. These projects will continue to be developed through to completion of works and operation of facilities. 14.2 Due to the uncertainty in the construction industry which is likely to continue for the short to medium term future, a “one size fits all” approach for the remaining two projects within the Programme is not advisable. 14.3 It is recommended that all future projects within the Programme are appraised independently with a bespoke contract strategy being developed and approved by the Hub Programme Board prior to commencement of the associated procurement procedures. The strategy should follow the guidance and direction within this Strategy to:
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18 • review historical, existing, and similar contracts procured (both internally and externally) to identify lessons learned and best practice which could be applied to the project; • identify whether forthcoming projects and their timetables allow for a contractual structure to encompass multiple projects; • undertake appropriate market analysis and option appraisals to establish and justify the available route to market (as detailed in sections 9.4 and 9.5) that will enable best value to the Council; • identify the most appropriate route to market for the specific project(s); • appraise and identify appropriate terms and conditions to be applied within the contractual arrangement; • enable appropriate cost control measures to be implemented and to explore potential pricing mechanisms that will allow the Council to continue to obtain overall best value of the project and the Programme as a whole; • maximise wider social, environmental and economic benefits within the project; • ensure compliance with the “Sustainable Procurement Duty”; • identify the resources i.e. technical, procurement, legal, finance etc. required both internally and externally to support any alternative procurement route required; • identify potential risks associated with each project and enable sufficient mediation / remedial action to be taken; and • create a suite of appropriate contract mobilisation and contract & supplier management (including exit strategies) protocols to ensure that successful consultants / contractors perform to the desired levels set by the Council. • Links to the Enterprise Project 14.4 As the Programme and construction market evolves, review and revision of the updated Procurement Strategy will be subject to ongoing review. By doing so, it is hoped that future projects within the Programme are procured in accordance with: • the latest high-level strategic guidance and any updates to procurement regulations; • the latest market conditions and trends; • identification and appraisal of future routes to market; • determination of whether a “one size fits all” approach is available and demonstrates best value; • cognisance of lessons learned, and best practice of previous contracts awarded within the Programme; and • further awareness of the risks identified at Programme level.
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19 Appendix 1: Project Contract Strategy and Options Appraisal Template Contract Strategy - Hub Programme