Frameworks Scotland Three Years In Jacqueline Kilcoyne Capital - PowerPoint PPT Presentation

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

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

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

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

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

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

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

Frameworks Cash Flow Frameworks Scotland Projected Spend October 2011 160,000,000 144,114,071 140,000,000 135,513,487 120,000,000 100,000,000 Value £m 80,000,000 65,932,643 60,000,000 47,401,141 40,000,000 13,577,654 20,000,000 2,115,000 0 0 2009 / 2010 2010 / 2011 2011 / 2012 2012 / 2013 2013 / 2014 2014 / 2015 2015 / 2016 Year

NHS Highland – New Migdale Hospital, Bonar Bridge

NHS Lanarkshire – Monklands Hospital

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

NHS Grampian – Whinhill Medical Practice

NHS Dumfries and Galloway – Crichton Midpark Hospital, Dumfries

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

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

Cost Analysis of Frameworks Projects  10 completed projects Target price £1.5 - £4.5m  3 projects in construction Target price £21m, £35m, £81m  Initial Report  Key Trends and Value for Money

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%

Analysis of Frameworks Projects Key Trends and Value for Money Programme  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

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

Analysis of Frameworks Projects Key Trends and Value for Money New Build  1. Health Centres Centres - - like for like like for like   2. 2. Dental Centres – Dental Centres – Varied 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

Analysis of Frameworks Projects Key Trends and Value for Money Pain Gain Share £172,871 £654 £59,106 £242,637 £210,531 £118,597 £9,469 (£156,781) £152,111 £60,476 £1,178,575 £667,718 £27,515

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

Objectives Client satisfaction  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

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

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

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.

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

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.

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

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

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”.