Commission of Inquiry into achieving best value in the procurement of construction.

Andrew SmithChair of NIEP Board

National Improvement and Efficiency Partnership for the Built Environment (NIEP)

12 March 2012

The NIEP

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• Formed in September 2009, brings together nine Improvement and Efficiency Partnerships (IEPs)

• The NIEP is a unique organisation bringing together leading public sector practitioners and private sector through workstreams and strategic procurement arrangements.

• Share best practice nationally and improve performance of local authorities’ management and procurement of assets and highways

• Sector led approach at a national level for local government and communities

Supported By

Workstreams

Objectives• Support the development of best practice delivery models

• Develop local skills and supply chain management

• Adoption of collaborative managed frameworks

• Improve capacity of local authorities and communities

• Create a sector led best practice efficiency programme

• Influence national and local policies

Progress…..

• Articulated the benefits of best practice

• Led a commitment to fair payment

• Promoted a procurement strategy based on managed frameworks

• Developed a LG model for the delivery of DfE capital programmes

• Adopted the West Midlands Procurement Framework for Jobs and Skills

Progress…..

• Agreed national key success measures

• Developed a guide to good client leadership and a resource signpost

• Supported the Capital and Asset Pathfinders

• Connected the private sector thinking

• Created strong links to central government strategies

Collaboration…NIEP benefitsGovernment policy delivered through procurement: providing local economic, social and environmental benefit – localism and leverage

Localism Created 1330 new entrants and trainees 85% of sub-contractors are SMEs 64% of sub-contractors are local to the area

Efficiency £300m savings across built environment Cabinet Office view that NIEP frameworks save 7.2% 95% of projects delivered within 5% of target programme

Sustainability 87% waste is diverted from landfill

• Effective client leadership is required to facilitate successful outcomes for projects

• Up-skill staff or find capacity through shared services

• Collaborative managed frameworks are vehicle for providing jobs and skills, local employment, apprenticeships, pipeline of work and stability for SMEs

• Frameworks need to have flexibility and agility to respond to market demands

Learning so far……..

• Integrate whole team from the earliest point, early contractor and key supply chain involvement to drive buildability, maintenance benefits and cost savings through standardised components and package procurement

• Consider whole-life and carbon costs at the earliest design stage of the project

• Deliver further benefit by joining similar projects together to create programmes

• Develop an asset reduction strategy - integrate capital and assets

Learning so far……..

Next steps

• James Review opportunity

• Working alongside Government Construction StrategyTask Groups

• Cabinet Office Effectiveness of Frameworks report

• Evidence value through cost benchmarking