We do not enter the future...

together we create it!

Times are changing…

Latham, Egan and others called for:

• Team approach• Client involvement• Common Purpose• Management of Risk• Value against cost• Team retention• Continuous Improvement

The current position for construction clients

The 2008 „Equal Partners‟ Report has found that clients need to:

give more thought to developing project teams and/or to project strategies;

upskill their own team‟s competence as a construction client;

recognise the impact early engagement canhave on more effective decision making; and

be realistic in the way risk is managed.

The current position for construction suppliers

The 2008 Equal Partners Report also found that the supply side should:

seek increased efficiencies and improved ways of working;

become proactive rather than reactive;

offer better ways of working with the client; and

properly understand the client‟s business.

In 2007 the industry‟s Strategic Forum encapsulated theserequirements in the „Construction Commitments‟ (refined fromthe Olympic Delivery Authority‟s “2012 Olympic Commitments”).They are divided into six overlapping areas:

1. Procurement and integration

2. Commitment to people

3. Client leadership

4. Sustainability

5. Design quality

6. Health and safety.

The wider industry response

What is the Government‟s position?

In the „Strategy for Sustainable Construction‟(June 2008) the Government set a target of 35%of all public sector contracts to comply with theConstruction Commitments by 2010 - rising to60% by 2012.

The UK Parliamentary Report (Nov 2008) reaffirmed this objective, stating

“The Government welcomes the industry’s intentionto revise the Construction Clients Charter to reflectthe new Construction Commitments and believes itshould lead the take up of the Commitments byrequiring all major public procurers of Constructionworks to become signatories within the next twoyears”

The only way to face the challenges together is by effective integration, which needs:

open management built on confidence;

shared validated real time information derived from common standards; and

Construction Commitment compliance confirmed through independent inspection.

The Sandwell solution…

is based an integrated, transparent suite of standards;

applies to both Sandwell and its suppliers;

is cost effective with non burdensome procedures with no duplication; and

Incorporates trustworthy validation.

What is Sandwell‟s solution?

To introduce an innovative online certification service specificallydesigned for construction, related industries and their supply chains.

The service:

1. will provide a consistent approach to company vetting;

2. will use truly independent objective inspection certification bodies;

3. will provide performance analysis for the participating supply chain members in:-

a. the achievement of prescribed performance values (including the Construction Commitments);

b. the application of best practice in sustainability, H&S and environmental management; and

c. performance improvement through progressive measurement and benchmarking.

It is based on a CIAPS certification system that :

1. follows internationally recognised UKAS accreditation best practices; and

2. is managed using „state of the art‟ internet technologies.

The information flow

Ist Tier Supplierprovides

gender, ethnicity and

diversity info/statistics

Prime

Contractorcollects

info/statistics from all

the project’ suppliers

Local authoritycollates

the info/statistics to

underpin subsequent

bids

Regional &

National

Governmentuses the information

to determine policy

and justify bid

decisions

How does it work?

1. The information is collected/presented as a set ofquestions (called a „company information profile‟ or CIP).This information then becomes Sandwell‟s real timeconstruction PQQ.

2. Sandwell may require some of the information to beverified by an independent certification body, H&Scompetency certifier or a credit checking agency

3. The information is the property of the company and theresponsibility to keep the information up to date resideswith the company. Access to information is controlled bypermission gateways. A „dashboard‟ summary becomespart of the company‟s FinditinSandwell minisite.

4. The online system provides a full suite of tools for thecompanies to manage their profiles and forSandwell/prime contractor buyers to analyse and searchfor companies with specific skills and capabilities.

Companies set out their competencies, capabilities and capacity in anonline database accessed via the FinditinSandwell website, which is thenmade available to Sandwell MBC and their prime contractors.

What does the CIP/PQQ cover?

1 Contact and general company details

2 Trading

3 Financial Probity

4 Insurances

5 Health and Safety/Occupational Health

6 Environmental sustainability (including waste management)

7 Equity (equal opportunities)

8 Human resources

9 Specialist expertise/technical capability

10 Quality assurance/ customer relations

11 Training

12 IT Capability

13 onwards – to meet Sandwell Project specific requirements

Note: To avoid irritating duplication sustainability information is sought within the appropriate section.

The basic information dataset currently holds over 350 units of information in12 sections, of which over 50% could be verified by inspection. The questionsets may be extended to cover Sandwell project needs.

How is full Construction Commitment compliance addressed?

1. Procurement & Integration

2. Commitment to People

3. Leadership

4. Sustainability

5. Design

6. Advanced Health and Safety (including occupational health)

Those companies aspiring to full compliance, especially those leadingprojects or with significant senior management involvement in aproject, complete a further set of specific questions. This „additionaldataset currently holds over 200 units of information that relate tothe six Construction Commitment sections, all of which are added tothe company‟s online CIP and are verified at an inspection.

Examples of questions from the environment

section of the basic CIP/PQQ.

Env.01.In Who in the company has responsibility for environmental matters? (name, title,qualifications)

Env.02.In Does the company retain a professional advisor or consultant for environmental matters(Name & Qualifications)

Env.03.In Is the company inspected to a recognised environmental management standard/ inspectionscheme? (name, level, certificate number and expiry date)

Env.04.Ce Does the company have a written environmental policy or statement?

Env.05.In Are the company's environmental management policy/statement and practices reviewedand revised on a regular basis? (review date and frequency )

Env.06.Ce Does the company have procedures to demonstrate that the environmental managementpolicy has been made available, and explained, to all employees?

Env.07.Ce Has relevant environmental awareness training been given to all relevant employees?

Examples of questions from the environmentsection of the full CC compliance CIP/PQQ.

Sus.15 Does the company have a recycling policy? if yes, how is it applied to a) new build and b)refurbishment.

Sus.16 If you have a recycling policy, how is it applied a) within the company and b) by the supplychain members?

Sus.17 Do exchange policies with your materials suppliers exist in practice?

Sus.18 Does the company have a energy use policy? if yes, how is it applied to a) new build and b)refurbishment?

Sus.19 Does the company have a water use policy? if yes, how is it applied to a) new build and b)refurbishment?

Sus.20 "Does the company have a non-recyclable waste management strategy? if yes, how is itapplied to a) new build and b) refurbishment?"

Sus.21 Are biodiversity surveys/impact reports obtained for all projects?

Sus.22 Does the company retain a professional advisor or consultant for biodiversity matters?

What does it look like …completing the insurance section of the

CIP/PQQ.

What does it look like …completing the H & S section of the CIP/PQQ.

What does it look like … a company‟s completion status report of the

CIP/PQQ.

What does it look like… a client‟s view of uploaded supporting

company documents

How the buyer finds you…

View Sandwell Construction Commitment Complaint Companies

here

What help is available…

What help is available…

Over approx 2

weeks

Training & Development in the requirements of the

6 Construction Commitments Over approx 17 weeks

??

Outline content of a CC endorsement course module

Typical timetable of a CC endorsement course

Topic Duration(Days)

Date Venue Delivered By

Accreditation 1 115 October

2009

CSCM IT Suite, The Hawthorns, West Bromwich B71 4L

Success Train

Accreditation 2 130 October

2009

CSCM IT Suite, The Hawthorns, West Bromwich

B71 4LFSuccess Train

Procurement & Integration

224th & 25th

November 2009

Wellman Building, Dudley Road, Oldbury B69 -

Training Room 2Fairsnape

Health & Safety 13rd December

2009Sandwell Council House,

Annexe 2, OldburySuccess Train

Design Quality 17th December

2009Sandwell Council House,

Annexe 2, OldburyFairsnape

Commitment to People

214th & 15th

January 2010

Sandwell Council House, Committee Room 1, 3rd

Floor, OldburySuccess Train

Sustainability 225th & 26th

January 2010

Sandwell Council House, Committee Room 2,

OldburyFairsnape

Client Leadership

21st & 2nd

February 2010Sandwell Council House,

Annexe 2, OldburySuccess Train

Firmly establishes them as compliant with „ConstructionCommitments‟ without extensive management effort orresource.

Provides a means of tracking or verifying their supply chaincompanies‟ progress through improvement and risk reductionprogrammes, as specified by Government agencies (HSE & EA)or themselves, using information provided by independent thirdparties.

Furnishes financial probity updates on their supply chainmembers.

Significantly simplifies the process of PQQ/ITT preparation,submission and evaluation

Validates, and reports to the client, the competence of alldownstream supply chain members.

What are the benefits to Sandwell MBC and their prime contractors?

What are the benefits to Sandwell MBC and their prime contractors?

Email „alerts‟ of significant changes within supply chainmembers.

Access a real-time information database on all subcontractingcompanies working in and around Sandwell projects.

Supports integrated working and data exchange with clientsand with downstream suppliers.

Offers the facility for collating company KPIs to supportcontinuous improvement without extensive management effortor resource.

Gives the Sandwell a uniquely powerful edge in winning morefunding in the future!

Hugely significant simplification and reduction in PQQ preparation forSandwell MBC projects and of prime contractor‟s PQQ‟s.

Validation of their competence to participate in the supply chain for agiven project.

The ability to monitor and report on their Construction Commitmentcompliance without exhaustive management effort or extensiveresource.

The provision of quarterly financial probity updates to Sandwell MBCand authorised prime contractors.

Access to preferential insurance terms from Zurich (UK) Insurance Ltd.

Offer of a marketing tool with ability to differentiate oneself fromcompetitors.

Reduction in overhead costs.

Access to training and the resources available to improve their basicbusiness, environmental and H&S skills in order to reach the Sandwellstandards.

What are the benefits to Sandwell-based construction companies?

Remember…

We do not enter the future...

together we create it!