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Procurement Strategy - Town and Community Hub Programme

North Lanarkshire Council · 29 September 2022
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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.  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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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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• 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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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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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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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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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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• 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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Appendix 1: Project Contract Strategy and Options Appraisal Template 
Contract Strategy -
Hub Programme