National Improvement & Efficiency Partnership for Best Value Procurement in Construction

1. Commission of Inquiry into achieving best value in the procurement of construction. Andrew SmithChair of NIEP BoardNational Improvement and Efficiency Partnershipfor the Built Environment (NIEP) 12 March 2012

2. The NIEP • 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

3. Workstreams

4. 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

5. 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

6. 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

7. Collaboration…NIEP benefits • Government policy delivered through procurement: providing local economic, social and environmental benefit – localism and leverage Localism • Created1330 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

8. Learning so far…….. • 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

9. 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

10. Next steps • James Review opportunity • Working alongside Government Construction Strategy • Task Groups • Cabinet Office Effectiveness of Frameworks report • Evidence value through cost benchmarking