Frameworks Scotland Three Years In. Jacqueline Kilcoyne Capital Projects Manager Health Facilities Scotland

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1 Frameworks Scotland Three Years In Jacqueline Kilcoyne Capital Projects Manager Health Facilities Scotland

2 Introduction to Framework Framework Objectives Overview of Current Position Outcomes Going Forward

3 Frameworks Scotland is a strategic partnering approach to the procurement of capital schemes across NHSScotland with a value in excess of 1m. PSCP Framework BAM Laing O Rourke Interserve Morrison Healthcare Robertson Dawn Health

4 Professional Services Frameworks:- Project Manager Cost Advisor Supervisor CDM Co-ordinator Healthcare Planner

5 NHS Partnering Workshop April 2007 Difficulties Expressed and Discussed included: Increased construction costs and cost uncertainty Construction market saturation Difficulty attracting bidders/collating tender lists Programme delays Drive to improve quality of capital schemes Paying more for their project than they had been led to believe would be the case when they accepted the contractor s tender Receiving their project late Taking ownership of buildings which fail to meet the functional requirements of the users, and Ending, all too often, with an adversarial and litigious relationship with the chosen contractors

6 Aims and Objectives of the Proposed Framework Improvements in design Improved quality Improved client satisfaction Improved Health and Safety performance Sustainability Retain, recruit and train a skilled workforce Reduce procurement and lead in times by at least 3 months Cost efficiencies A Framework for professional services Appointment of a minimum of 3 (maximum of 5) One stop shop PSCPs

7 41 Projects 18 Complete 15 On site 8 In development 386 million 12 Boards Frameworks Scotland A National Framework

8 Frameworks Cash Flow 160,000, ,000, ,000,000 Frameworks Scotland Projected Spend October ,513, ,114,071 Value m 100,000,000 80,000,000 60,000,000 65,932,643 40,000,000 47,401,141 20,000, ,577,654 2,115, / / / / / / / 2016 Year

9 NHS Highland New Migdale Hospital, Bonar Bridge

10 NHS Lanarkshire Monklands Hospital

11 NHS Greater Glasgow and Clyde A&E Expansion, Glasgow Royal Infirmary

12 NHS Grampian Whinhill Medical Practice

13 NHS Dumfries and Galloway Crichton Midpark Hospital, Dumfries

14 Frameworks Scotland Audits PSCP Carried out by PriceWaterhouseCoopers PSCP Head Office audit and project audit Financial systems and procedures are effective Costs allocated correctly Overall positive and successful audits

15 Frameworks Scotland Audits - PSC Carried out by PriceWaterhouseCoopers PSC Head Office audit Hours charged related to underlying records. Rates charged were contract rates. Overall positive and successful audits

16 Cost Analysis of Frameworks Projects 10 completed projects Target price m 3 projects in construction Target price 21m, 35m, 81m Initial Report Key Trends and Value for Money

17 Analysis of Frameworks Projects Key Trends and Value for Money BREEAM Limitations of data - 3 projects achieving Excellent rating - 2 projects achieving Very Good rating Recognised percentage increases (BRE) - Excellent 3.3% - 7.0% increase in Capital Cost - Very Good 0.1% - 5.7% increase in Capital Cost Framework Projects - BREEAM Excellent 1-4% - BREEAM Very Good <1%

18 Programme Analysis of Frameworks Projects Key Trends and Value for Money Traditional (Completed Projects) - Less than 50% of projects analysed finished on programme Framework - 8 out of 10 projects finished on time - 3 further currently on programme

19 Analysis of Frameworks Projects Key Trends and Value for Money Refurbishment (within live hospital environment) Average cost per m 2 1,500 for Framework projects compared with 1,900 for traditionally procured projects Influencing Factors 1. Risk Effective risk management and ownership. 2. Recognition of market conditions 3. PSCP/Supply Chain involvement

20 New Build Analysis of Frameworks Projects Key Trends and Value for Money 1. Health Centres - like for like 2. Dental Centres Varied Contributing factors include:- - Remote location - Size of project - Abnormals - extensive car parking - foundation design 3. Mental Health - Comparable 4. Care of the Elderly - Marginally less than average - equates to 1.1m saving

21 Pain Gain Share Analysis of Frameworks Projects Key Trends and Value for Money 172, , , , ,597 9,469 ( 156,781) 152,111 60,476 1,178, ,718 27,515

22 Improved Quality Objectives Feedback from recent Users event indicated improved quality. - end product & project management - minimal / no defects - end users aspirations - maintain ongoing healthcare delivery needs.

23 Client satisfaction Objectives Very positive feedback at Users event for both the process and end product. - team solution - working relationships - Risk management and allocation Average KPI score of 78% for most recent quarter

24 Objectives Reduced Procurement Times - PSCP appointment in 4 weeks has reduced appointment timescales. - Early constructor involvement has reduced risk and assisted project planning.

25 Objectives Cost Efficiencies - Initial Cost Analysis Report has demonstrated efficiencies. - Cost certainty through the programme noted by users as being a priority.

26 Objectives - Feedback that NHSScotland Boards consider Health & Safety performance has improved. - Most recent KPI result average score of 83% for satisfaction for Health & Safety on site management and commitment.

27 Objectives Improvements in design - Most recent KPI for results for overall NHS satisfaction with design is 82%.

28 Going Forward End of Year 3 of 4 year Framework (with option to extend for 2 years). Consultation with Key Frameworks Scotland Users. Consultation with Welsh Health Estates. Consultation with NHSScotland Boards. Ongoing consultation with Legal Advisors around maximising the use of the Framework.

29 Going Forward - Strategic Programmes of Work Refurbishment Backlog Maintenance Risk Reduction

30 Going Forward Improve - Not stand still - Share best practice Across the Framework - Collaboration and team approach - Deliver efficiencies

31 Scottish Spending Review 2011 & Draft Budget 2012 Managing Pressures and Cuts in Public Expenditure.there will require to be an ongoing focus on delivering efficiency savings and increasing productivity building on past success. The Scottish Government is delivering a number of initiatives to ensure that available resources are utilised as effectively as possible. The Frameworks Scotland national construction framework will ensure efficient delivery of new and refurbished projects.