CCG Strategy Review Workshop Procurement Theme Group Charles Mills April 30 th 2015.
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Transcript of CCG Strategy Review Workshop Procurement Theme Group Charles Mills April 30 th 2015.
CCG Strategy Review Workshop
Procurement Theme Group
Charles Mills
April 30th 2015
•What?– Procurement is the process by which resources (goods and services) required by a project are
acquired. It includes development of the procurement strategy, preparation of contracts, selection and acquisition of suppliers and management of the contracts. APM BoK
•Why?– What is more fundamental to construction?
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Terms of Reference
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PurposePurpose A community of interest to share ideas and learning within the group
An influencer via thought leadership
A source of guidance and advice to other CE members
ScopeScope How do we procure for value not tender price?
Working with the EU regulations
Case studies Innovative approaches Good practice
Intelligent client
Procurement further down the supply chain
Procuring for social value
What Have We Done?
• Case Studies– ICE on Bank and Bakerloo Line– Stake on station upgrades
• Engagement with IUK and Cabinet Office– Where can we add value to their initiatives
• Discussions– Constraints on procurement for value– Low bid awards– The problem is contracting!
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London Underground
PPP
Main Contractor 1
Main Contractor 2
Sub-Contractor
Sub-Sub-ContractorOverhead , Profit
& Risk
Reducing Risk
CommunicationDelivery Model “D”
Thin Client
Outsourced Delivery
Organisation
Delivery Model “A”
Insourced Delivery
Organisation
Trades Contractors
Cost
Risk
What Does Good Look Like?
“Intelligent” Delivery Partner
“Resource Capable” Delivery Partner
What Next?
• A Guide for “Excellence” in Procurement.– Members to “workshop” a brief at next meeting in June. – Focus on procuring for value.
• Blogs on CE Website– EU Regs– Govt construction strategy (post election)– Social value– Bid costs– Local govt: overview
• Support IUK and Cabinet Office
• Procuring for social value – Sub-group out of Yorkshire
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