A framework guide for Off-Site Construction of New Homes (NH1) Better buying for homes and local communities WWW.SCOTTISHPROCUREMENT.SCOT
Introducing the SPA What makes the SPA different? The Scottish Procurement Alliance (SPA) is a new approach for procurement in Scotland, created for organisations that buy products and services for the construction, refurbishment and maintenance of social housing and public buildings. It is backed by LHC, one of the leading and most respected procurement organisations in the UK. SPA is set to change the landscape of procurement in Scotland, bringing significant benefits to partners and the communities they serve. The SPA results from discussions with LHC partners in Scotland who saw the huge potential of having a centre of excellence for procurement focused on construction and refurbishment which exclusively addresses Scottish needs, standards and aspirations. Our vision is to be the recognised centre of excellence for procurement in Scotland, successful at ensuring every pound spent on the construction and refurbishment of public buildings and social housing adds to the quality of life enjoyed by the Scottish communities we serve. Its formation is timely, coinciding as it does with the new procurement regulation in Scotland which places additional requirements on organisations involved in procurement using public funds. The significant new requirements are as follows: Active partnerships -- All spends of above 50,000 (for supply and services) and 2,000,000 (for works), must be compliant with the new regulation Every partner can contribute to the frameworks SPA creates. They can ensure the requirements and specifications meet the needs of local communities and Scottish quality, price and value standards. -- The specific social value and community benefit of each spend over this threshold must be stated (a requirement from 1st June 2016) Better procurement -- Each organisation must publish a procurement strategy showing how local needs will be met (a requirement from 31st December 2016) In this changing landscape for procurement and with its sole focus on Scotland, the SPA will be a hub of knowledge and insight for its partners, working in partnership with them to develop Scottish best practice, social value from procurement and positive outcomes for Scottish communities. The sharing of knowledge will drive both the precision and usability of frameworks, while at the same time enabling each partner to grow their insights into better procurement for social housing and public buildings, and develop effective strategies that meet regulatory requirements. Generating a collective fund By using SPA frameworks for purchasing, partners within the alliance who spend over a specified threshold will receive a rebate which they can choose to contribute to The SPA Collective Fund for investment in community projects for shared benefit. Alternatively, some or the entire rebate can be returned to the individual member to support their own sustainable procurement strategy. Backed by LHC With a history that extends back half a century, LHC is one of the most experienced and respected providers of procurement frameworks in the construction sector. As a not-for-profit organisation it shares an ethos with the clients it supports with procurements services. LHC will produce, house and manage the frameworks initiated by SPA partners, giving direct access to a tried and tested system that ensures compliance, quality and best value for clients, at the same time as enabling frameworks entirely shaped for Scottish requirements. Free membership Joining the SPA is free for any organisation that is fully or part publicly funded. The membership application form can be downloaded here: WWW.SCOTTISHPROCUREMENT.SCOT/SIGNMEUP Dates correct at time of print. 02 03
About this framework Details of each workstream The SPA framework for Off-Site Construction of New Homes is available to all organisations in Scotland that are fully or part publicly funded. This framework offers the construction of new homes through two building systems: volumetric and panelised systems. Workstream 1: Volumetric Workstream 2: Panelised Panelised building systems are factory produced flat panel units that are transported to site for assembly. -- Supply of Panelised Building Systems Volumetric building systems are factory produced three-dimensional units that are transported to site for installation. -- Full Turnkey Service (Integrated Services) Volumetric or Panelised Systems To meet the requirements of the framework the delivered units are: This framework offers: -- Fully finished internally with the option of external wall and roof cladding systems that can be factory fitted To meet the requirements of the framework the delivered units are: -- Available with internal fixtures and fittings either specified by the partner or selected from a range provided by the manufacturer -- Provided with external wall thermal insulation with the option of wall linings, windows and external cladding installed in the factory -- Pre-installed with internal services that are tested prior to on-site commissioning by the supplier -- Compliant with the requirements for fire safety during construction (if they are timber panelised building systems), meeting HSE and Fire and Rescue Service s safety requirements Fully OJEU compliant, this framework delivers off-site housing through three workstreams: -- Supply of Volumetric Building Systems -- Easy access to off-site manufactured building systems for new build projects including construction, design, manufacture, supply and installation -- Our partners with standard house types houses that comply with Building Regulations, the Housing Quality Index (HQI) and funding authority requirements -- Panelised systems that are factory fitted with insulation to meet national building regulations -- Volumetric systems that are fully finished internally with the option of external wall and roof cladding systems that can be factory fitted -- The opportunity to choose your own window and cladding suppliers or select from a range of suppliers provided by the manufacture This framework has been established in strict compliance with the Scottish public sector procurement rules for use by publicly funded organisations in Scotland as detailed in the SPA buyer profile (www.scottishprocurement.scot/buyerprofile) -- Designed to comply with structural, fire, acoustic and thermal Building Regulations These units form the structure of the building wall, floor and roof structure and can be made of timber, light gauge steel, concrete or structurally insulated panels (SIPs). Workstream 3: Full Turnkey Service (Integrated Services) -- Available with volumetric or panelised building systems Contract notices were issued by LHC on behalf of the Scottish Procurement Alliance (SPA), and are specified below: -- 2014-OJS091-159062 Scotland -- 2015-OJS073-128409 Scotland 04 05
Product and framework supplier benefits The framework in action The systems available offer multiple benefits to partners, who can also be confident in consistently high standards of delivery provided by SPA framework suppliers. As well as providing compliance, quality and best value to clients, the SPA framework for Off-Site Construction of New Homes supports a streamlined process from the award of a contract (call-off) to completion of a project. Product benefits Framework supplier benefits Competitive market prices Quick and efficient procurement Instant access to project data -- Compliance with the latest British and European Standards and holding the CE Mark -- Compliance with the latest regulations, both building systems have been designed to meet the latest editions of the Building Regulations including: Structure (Part A), fire (Part B), acoustic (Part E) and conservation of fuel and power -- Enhanced acoustic performance between dwellings for separating walls and floors, up to eight decibels better than Building Regulations -- Minimisation of energy costs for residents resulting in reduced thermal bridging, improved air tightness and A-rated windows through fabric energy efficiency -- Timber sourced through sustainably managed forests supported by verified due diligence and risk assessment requirements regarding the chain of custody and compliance with the EU Timber Regulations No. 995/2010:2013 -- Both systems offer long term quality assurance and are suitable for gaining NHBC or equivalent new build warranty for a minimum of 10 years -- All approved framework suppliers use approved and trained installers to carry out site works -- Assurance of quality, environmental, and health and safety management systems. Suppliers have been evaluated to ensure management systems are in place -- Provision of design services at the feasibility stage through Design For Manufacture (DFM) to deliver the design in the most efficient manner (cost savings leading from quicker starts) -- Framework suppliers offer design advice and support on the interpretation and conformity to statutory regulatory requirements including meeting funding requirements Prices in place at call-off stage maintain best value as established in the evaluation stage High quality standards Standards of quality maintained throughout projects through monitoring in accordance with the ISO 9001 Quality Management System Advice on design and regulatory compliance Speedy access to SPA framework suppliers and the options of a mini-competition or direct award to enable the final selection of a supplier(s) for a project Service levels guarantee Guaranteed service levels from inquiry to supply, providing peace of mind that services and works will be conducted effectively Delivery periods guarantee Continuous access to information throughout the procurement process through the suppliers on-line portal Quick project starts Enabled by pre-tendered procurement that reduces the cost and time input by publicly funded organisations -- Available with construction services to provide a turnkey solution Guidance on interpretation and conformity to all statutory regulations and planning requirements Guaranteed delivery periods that ensure services and works are delivered to meet work schedules 06 07
About this tender The tender process for this framework followed an open procedure which eliminates the pre-qualification questionnaire stage. Suppliers were given free and open access to the tender and offer documentation and answered suitability assessment questions. Selection criteria -- Financial information -- Business and professional standing -- Health and safety policy and capability -- Equal opportunity and diversity policy and capability -- Environmental management policy and capability -- Quality management policy and capability -- Sustainability and social inclusion policy requirements 08 -- Experience of working in public sector and partnering -- Membership of professional bodies and/or trade associations and technical associations -- Managerial and technical support, sales, marketing and supporting information -- Technical and professional ability -- Providing the full range of essential components on offer -- Conformity to the SPA specification together with the expertise and quality of deliver SPA framework agreements provide compliance, quality and best value to clients, with a streamlined process for engaging with supplier companies
From suitability to call-off contract The diagram below shows the process a framework supplier completes in order to service the needs of SPA partners. It also highlights the support our partners receive. SPA framework suppliers have passed a rigorous evaluation process in order to serve the needs of our partners Suitability assessment Suppliers have open access to the tender and offer documentation (ITT) and are asked to respond to suitability assessment questions covering: -- Company standing -- Financial standing, employment practices, environmental awareness capacity and geographical range -- Installation capability -- Technical capability -- Quality systems management capability -- Experience of supply to the public sector -- Sustainability and social value -- Specification for products and services -- Testing and certification -- Service capability -- Pricing A detailed evaluation report is prepared which shows for each tenderer a: -- Weighted score under each heading -- Value for money index -- Company or companies recommended for appointment Appointing framework suppliers Awarding contracts call-offs Works commence/ complete Our aim is to give our partners a choice of approved framework suppliers to work with. Numbers vary per framework in line with anticipated demand and subject to the number of qualifying suppliers that can adhere to our strict criteria. -- All suppliers are notified of the results and the unsuccessful tenderers can choose to have a debrief to help improve future offers -- Contract Award Notices are published in the Official Journal of the European Union (QJEU) and on the SPA website When partners are ready to choose a framework supplier for an individual project, they should start the process by talking to our procurement experts. SPA will coordinate either: -- A mini-competition involving framework suppliers that have declared an interest in the project -- A direct award made to a single company, with justifiable reasoning, without reopening competition. Our procurement experts can provide the final evaluation table to assist in the decision SPA provides support and technical assistance throughout the life of a project, as required: -- To ensure high quality standards are maintained -- Service levels are fulfilled -- Delivery periods are met We actively pursue feedback on our projects in order to establish an excellent partner journey. We will be happy to meet you during and after project completion to discuss how SPA, as well as the framework suppliers, could improve the level of performance. 11
Workstream 1 and 2: Supply of volumetric and panelised building systems Workstream 3: Full turnkey service (Integrated services) Award weighting criteria are established on each individual framework and can be flexed to a buyer s individual needs. 15% Production qualitative assessment Manufacturing facilities were assessed for the quality of construction, finish and operation including: -- The quality of the frame manufacture and compliance with applicable standards -- Correct installation of insulation, compliant with relevant standards and meeting performance requirements for Fabric Energy Requirements -- Dimensions within manufacturing and site tolerances -- Windows and other materials in the system meet specification, comply with the relevant standards and are installed correctly to specification -- Units provided with weather protection from completion of manufacture to on-site delivery 40% Qualitative assessments Administrative and management services were assessed using responses given within the offer document. Companies also participated in depth interviews addressing the whole framework and including: -- Project planning and management -- Supplier s core project team 15% Technical requirements -- Product range to meet the LHC specification -- Quality of delivery and expertise -- Structural standards including fire, acoustic and fabric -- Site supervision, meetings -- Design services -- Cost management service -- Building information modelling -- Funding requirements 30% Pricing Prices were tendered using two different methods of analysis for each workstream: -- Workstream 1 Four standard house types were costed for against provided drawings and a design for manufactured solution with pricing for an apartment block of 48 units over four stories -- Workstream 2 Two contract scenarios where priced, one for a housing development of 12 units and the second for a three storey apartment block containing 24 one and two bed units 10% Company evaluation -- Declarations -- Management systems -- Health and safety systems -- Environmental system -- Financial -- Experience 20% Technical requirements -- Product range to meet the LHC specification -- Quality of delivery and expertise -- Structural standards including fire, acoustic and fabric 10% Evaluation of project specific responses -- Project delivery -- Work programming -- Project economics -- Management control -- Quality management systems -- Provision of information 10% Project management -- Project planning and management -- Supplier s core project team -- Site supervision, meetings -- Design services -- Cost management service -- Building information modelling -- Funding requirements 25% Pricing -- Prices were tendered using different size of projects for each lot type 15% Production qualitative assessment Manufacturing facilities were assessed for the quality of construction, finish and operation including: -- The quality of the structure -- Quality of cladding, windows & doors -- Quality of factory installed services -- Quality of factory installed internal finishes -- Quality of factory fitted bathrooms and kitchens -- Weather protection from completion of manufacture to on-site delivery 10% Scenario questions -- Communications -- Quality -- Supply management 12 13
SPA approved framework suppliers Type and size of project M1 Southern Scotland Systems supply only * Low rise ** <20 21 40 Medium and high rise ** 41+ <100 100+ Caledonian Modular CCG Scotland Ltd Cruden F1 Modular Our partners have the option to work with alternative framework suppliers for each workstream to help ensure best value and quality Keepmoat Stewart Milne Group M2 Northern Scotland Caledonian Modular CCG Scotland Ltd Cruden F1 Modular Keepmoat Stewart Milne Group * Workstream 1 & 2 * * Workstream 3 Regional lots M1 Southern Scotland M2 Northern Scotland M2 M1 15
Framework for Off-Site Construction of New Homes Workstream 1: Volumetric Building Systems Supply Workstream 2: Panelised Building Systems Supply Workstream 3: Full Turnkey Service (Integrated Services) Volumetric or Panelised Systems Workstream 1 and 2 is valid until 31st October 2018. Workstream 3 is valid until 30th November 2019. T 0131 306 0177 WWW.SCOTTISHPROCUREMENT.SCOT