The Contractors and the supply chain

The principle delivery vehicle for the Property Services Cluster programme is the South East and London Construction Framework for Major Projects. The framework has operated across the south east for a number of years and has been used successfully to procure over £2.5b of capital works. It is a fully OJEU compliant arrangement providing procurement services for public sector contracts above £1m and has eight contractors. The framework philosophy is to use a two stage open book method of early contractor engagement, initially using preconstruction agreements prior to second stage award of works contracts.

Click on thumbnail to view the percentage undertaking of each Contractor per number of projects and their value. Click on thumbnail to view the number of projects for each Contractor in each Tranche.

 

The framework contractors are also engaged in continuous improvement programmes enhancing the quality of services provided under the framework with each leading on a particular theme. These include gateway review project quality checks, cost benchmarking, supply chain improvements and apprenticeship schemes.

The Property Services Cluster have really benefitted from the early contractor engagement and embedded collaborative ethos of the framework, with all parties working in true partnership to maximise benefits and achieve improved cost, time and quality predictability.

Early contractor engagement is key, enabling the teams to align project designs and cost planning with live market data. From the eight pre-qualified Framework Contractors, five have so far been engaged in the delivery of the programme: Balfour Beatty, Miller, Osborne, Willmott Dixon and Morgan Sindall.

Aside from simply working alongside one another, these Framework Contractors have formed a joint working arrangement known as the Cluster Delivery Team (CDT), mirroring the Cluster Programme Office. The CDT focuses on taking a collective approach to the joint work streams faced. Development around apprenticeships, design standardisation, sharing of best practice and health and safety is championed by one Framework Contractor on behalf of the group and has proven highly successful to date.

Chief among these activities is a holistic approach to aggregated tier 2 and 3 supply chain procurement across the programme. The CDT have worked to establish and hone a dedicated group of preferred providers, highly tailored to the nature of the programme’s projects. Aggregate contract awards to key sub-contractors and suppliers has resulted in clear economies of scale and the provision of early design input and cost advice. This work is continually evolving to ensure that providers remain competitive and incentivised.

 

CPO/CDT Chart