Archived decisions

Hampshire County Council

Buildings, Land and Procurement Panel Item

26 June 2007

Procurement Initiatives, Performance Assessment, Building Cost Trends and approvals to the Capital Repairs/NDS Condition Programmes

Report by the Director of Property, Business and Regulatory Services

Contact: David Corcoran Ext: 7930 email: [email protected]


1.0		Summary
1.1		The Executive Member for Policy & Resources approved at his meeting of 5 April 2007 the annual review of construction related procurement for 2006/7 and a series of new initiatives to be implemented over the current financial year and beyond.
1.2		This report recommends approval by the Executive Member for Policy and Resources to a number of negotiated schemes and provides an update on a number of long term procurement arrangements currently being established including the second and third tier framework arrangements. The report also provides Members with a summary of the performance analysis carried out for projects completed during 2006/7, examples of efficiencies achieved through the collaborative procurement arrangements and examples of the construction costs for a range of projects and programmes of work.

1.3		The report also seeks approval to a number of additions to the capital repairs budget particularly for schemes in the non education sector.

		Recommendations (s)

		That the Panel advises the Executive Member for Policy & Resources that approval be given to:

1		Projects to be undertaken through the Framework for Major Schemes as identified in Appendix `1'.
2		Projects to be undertaken through the SECE Framework for major Schemes (Tier 1) as identified in Appendix 2.
3		Progress in establishing second and third tier framework arrangements.
4		The commission to procure consultancy arrangements on behalf of the Learning and Skills Council.
5		Proposals to establish consultancy arrangements through the South East Centre of Excellence.
6		Proposals to tender consultancy arrangements for the County Council as set out in Appendix 3.
7		Publishing a Prior Information Notice setting out the intention to procure consultancy frameworks, a roofing framework and an external decorations framework.
8		The proposed procurement initiatives set out in Appendix 3 relating to: _ Second Tier framework (SME) pilots - additional projects proposed _ External Decorations - additional packages of work _ Temporary Buildings Term Contract - update on tender and proposed interim arrangements _ Reactive Maintenance Term Contract - update on tender _ Consultant Framework Arrangements - proposals for renewal and extension of current Structural Engineering arrangement _ Children's Centre Programme - procurement proposals _ Kings Somborne Primary School - reinstatement of fire damage _ Hampshire Integrated Community Equipment Service - internal alterations to new premises _ Various Properties - Hot Surfaces Protection Work _ Basingstoke School Plus - internal alterations and extension _ Oakridge Infant School - re-cladding phase 2 _ North Farnborough - re-roofing _ Pennington Infant School - re-roofing _ Applemore College - Scola re-cladding phase 3 _ Yately School - Scola re-cladding phase 2 _ Cranbourne Business and Enterprise College - Scola re-cladding phase 3 _ Brookfield Community School and Language College - fire precaution works _ Perins School - replacement of sports hall floor _ Kings' School - science laboratory refurbishment _ Chrismas Lodge - demolition works _ Recovery work following major incidents - Framework arrangement _ Rowner Infant School - Toilet refurbishment & associated drainage
9		The performance assessment, efficiencies and building cost trends
10		The additions/amendments to the Capital repairs/NDS Condition Fund programmes as detailed in paragraph 13.3

2.0		Framework for Major Schemes and Programmes of Work
2.1		Since the last meeting of the Panel the following schemes have been identified for development under the County Council's Framework for Major Schemes: _ Children's Centres - installation of modular buildings at 12 properties throughout the County. _ Elvetham Heath Primary School - extension to 3FE These projects have been included in the table at Appendix 1.
3.0		SECE Framework for Major Schemes and Programmes of Work
3.1		As reported to the Panel in March 2007, the Major Framework agreement is being replaced by the SECE Framework for Major Schemes and Tier 2 Framework, details of which were reported to the Panel on 3 October 2006.
3.2		The following County Council schemes have been identified for development under the SECE Tier 1 Framework: _ Andover Primary Schools, Education Centre and Children's Centre - a programme of new primary schools and extension and refurbishment of existing schools in the Andover area. _ Gosport Bay House - New Sixth Form Building These projects have been included in the table at Appendix 2.
4.0		Second and Third Tier Framework Arrangements
4.1		12 tenders for the second tier framework were received on 26 April. Tender evaluation is ongoing and it is anticipated that preferred contractors will be identified in the summer with a view to appointing them to the framework by September. The selected contractors, together with a list of schemes to be procured through the framework arrangement, will be reported to the Panel in October.
4.2		24 contractors have been invited to tender for the third tier framework. Tenders are due back on 19 July and it is anticipated that contractors will appointed to the framework by late autumn.
5.0		LSC Consultancy Arrangements
5.1		The Learning and Skills Council (LSC) have formally commissioned the department to procure consultancy services for their major national building programme.
5.2		The Learning and Skills Council has a large, ongoing capital expenditure programme on tertiary education covering over 400 sixth form colleges and other further education establishments in England. The aim of the programme is to renew or refurbish the whole estate by 2014. There are clear efficiencies to be gained by establishing collaborative frameworks with defined processes, guidelines, working practices and governance.
5.3		The County Council in its role as lead authority for the South East Centre of Excellence (SECE) has identified efficiency savings through the introduction of frameworks in construction that use collaborative working methods, especially where projects can be aggregated into programmes of work. As the LSC work is effectively a single large programme of similar type works, this approach would, as well as creating the capacity to deliver, yield efficiencies in design, procurement and construction.
5.4		The LSC's priority for 2007/8 is to establish a panel of consultants to undertake a range of professional services to initiate the major rebuilding programme. Proposals have been laid out and agreed for the use of the SECE Regional framework for college projects across the south east, and establishment of national arrangements for consultants and contractors to the LSC. A contract Notice has recently been published through the Official Journal of the European Union inviting expressions of interest for these services by 19 June. The whole tender process is being undertaken with colleagues from the LSC and Birmingham and Manchester City Council who are aiding the process in the Midlands and the North.
5.5		Collaborative consultancy arrangements are to be established to cover the whole of the LSC estate in England in three regions: _ Northern - including the North West, North East, and Yorkshire and Humber _ Central - including East Midlands, West Midlands, and the Eastern Region _ Southern - including the South East, South West and London
6.0		SECE Consultancy Arrangements
6.1		SECE has recently approved the establishment of a major consultancy framework for the South East which will be used to provide professional resources in conjunction with the new SECE construction framework. The exact form of these arrangements has yet to be determined but is likely to be similar in form to the recently launched LSC consultancy framework. As such specific disciplines will be advertised for Design Services, Cost Management and Project Management Services. Additional requirements for estates related services covering strategic and comprehensive property reviews, rationalisation, planning, surveying and development are currently being scoped and may be incorporated into the arrangements as an additional lot. An advertisement will be placed in the Official Journal of the European Union and expressions of interest invited from suitable professional firms or consortia. The arrangements will be for an initial four year period and comprise up 15 operators.
7.0		Property Services Consultancy Arrangements
7.1		As reported to the Panel in March, the Property Services consultancy framework arrangements are due to be replaced over the next 12 months. The existing arrangements will be re-tendered with some increased scope to accommodate a number of specialist services required to meet the latest design guidance and legislative requirements, in particular with respect to environmental and sustainability requirements. Two additional arrangements to cover acoustics and archaeological consultants are to be scoped and developed for procurement during 2008/9.
7.2		Details of the consultancy arrangements to be procured and the anticipated timescales are set out in Appendix 3. The outcome of the tenders will be reported to future Panel meetings.
8.0		Future Public Procurement Initiatives
8.1		As provided for under the Public Contracts Regulations 2006, it is proposed to publish a prior information notice (PIN) in the Official Journal of the European Journal setting out the intention to procure the following arrangements during the next 12 months:
		_ Consultancy Frameworks as described in paragraph 7.0 above _ Roofing framework _ External decorations framework
9.0		Project Proposals
9.1		Appendix 3 details a number of further best value procurement proposals: _ Second Tier framework (SME) pilots - additional projects proposed _ External Decorations - additional packages of work _ Temporary Buildings Term Contract - update on tender and proposed interim arrangements _ Reactive Maintenance Term Contract - update on tender _ Consultant Framework Arrangements - proposals for renewal and extension of current Structural Engineering arrangement _ Children's Centre Programme - procurement proposals _ Kings Somborne Primary School - reinstatement of fire damage _ Hampshire Integrated Community Equipment Service - internal alterations to new premises _ Various Properties - Hot Surfaces Protection Work _ Basingstoke School Plus - internal alterations and extension _ Oakridge Infant School - re-cladding phase 2 _ North Farnborough - re-roofing _ Pennington Infant School - re-roofing _ Applemore College - Scola re-cladding phase 3 _ Yately School - Scola re-cladding phase 2 _ Cranbourne Business and Enterprise College - Scola re-cladding phase 3 _ Brookfield Community School and Language College - fire precaution works _ Perins School - replacement of sports hall floor _ Kings' School - science laboratory refurbishment _ Chrismas Lodge - demolition works _ Recovery work following major incidents - Framework arrangement _ Rowner Infant School - Toilet refurbishment & associated drainage
10.0		Performance Assessment
10.1		Headline performance results for major projects (>£500k) and projects completed through the pilot second tier frameworks during 2006/7 were reported to the Panel in March. Since then KPIs have been scored for a number of additional projects and the performance analysis updated.
		Major Projects
10.2		A total of 33 major projects (>£500k) were completed by the Department during the financial year 2006/7. 18 of these were procured through competitive tender, 13 thorough the Framework for Major Schemes and 2 were negotiated with preferred contractors. The average KPI scores remain the same as reported to the Panel in March; 66% for the competitively tendered projects and 79% for the best value projects.
10.3		As reported to the Panel in March, both these scores are slightly lower than for 2005/6 which were 69% for competitively tendered projects and 82% for the best value projects. The score for the competitively tendered sample is mainly due to serious performance issues with one contractor who was responsible for three of the sample projects and who has now been suspended from the register of contractors. For the best value sample the reduced score can be attributed mainly to poor performance on one framework project. Excellent scores have been achieved on the most recently completed Enhance projects, demonstrating the continued learning transfer across the programme of work.
10.4		The radar chart in Appendix 4 shows the average results for each group of projects against the ten KPIs. This shows that the scores for the best value projects are better than those for the competitively tendered projects for all indicators, except for Contractor Design, where the scores are the same.
		Framework for Major Schemes
10.5		During 2006/7 the Department introduced two way performance reviews for projects procured through the Framework for Major Schemes. These reviews are held at the end of the pre-construction phase and following practical completion and allow the framework contractors to score the Department's project team, in addition to the project team scoring the framework contractor's performance. The purpose of the two way reviews is to have an open and honest review of the project and identify areas where project processes can be improved in order to drive continuous improvement in both design and construction performance. The results are shown in the radar charts in Appendix 4.
10.6		The overall average score for the framework contractors' pre-construction performance is 81%, across a sample of seven projects.
10.7		The Department's project team performance has been scored on five projects completing the pre-construction stage and six projects achieving practical completion. The overall average score for the pre-construction stage is 85% which demonstrates that a very high level of performance is being achieved. The lowest individual KPI score is for provision of information which reflects a need to improve the co-ordination of information release with the package procurement process in order to ensure that the correct information is provided at the appropriate times.
10.8		On the post-contract performance, the overall average score for the project team is 81%, again a very respectable performance. However, these initial results indicate a need to develop a more formal approach to the management of change control during the construction period.
		Second Tier Framework pilots
10.9		34 projects completed through the pilot second tier frameworks have been reviewed against the contractor KPIs following practical completion. A two way review process has also been introduced to allow the framework contractors to score the performance of the Department's project teams.
10.10		The overall average score for contractor performance for the 34 framework projects completed to date is 86%. The average score for a sample of 49 competitively tendered similar projects is 80%. The radar chart in Appendix 5 shows that the scores for the framework projects exceed those for the competitively tendered projects for all KPIs with the greatest difference achieved for `time management', `management of subcontractors' and `customer satisfaction'. This reflects the fact that the early involvement of the contractors gives them a better understanding of the projects and enables them to plan the works in detail and secure the necessary supply chains, avoiding delays and difficulties during the construction period.
10.11		Scores for the HCC project team have been received for 24 framework projects, with an overall average of 89%, which represents an excellent level of performance. The scores for the individual KPIs are shown in the radar chart at Appendix 5. As for the major projects, the lowest score was received for provision of information (84%).
		SECE Framework for Major Schemes
10.12		Applying a consistent performance management regime to the SECE Framework for Major Schemes (Tier 1) is key to the ongoing management of the arrangements and will also help inform local authorities when selecting contractors for new projects. The two way pre-and post construction review process currently used by Property Services for major framework projects has been incorporated into the SECE framework arrangements.
10.13		To manage all the projects being procured through the SECE Tier 1 Framework, a web-based projects database is being procured. The database will record key project information to enable project planning and reporting by local authority, framework contractor or programme of work. Being web-based, each authority can view and modify its own data thereby reducing the amount of central administration required.
10.14		Performance data is attached to each project record using the KPI templates developed for the Hampshire County Council Framework for Major Schemes. This will enable benchmarking of County Council projects procured through the framework against those procured by other local authorities.
10.15		The KPI results detailed above demonstrate the continued effectiveness of the new forms of procurement established by Property Services. In September 2004 the Cabinet approved the proposal for a 70/30 split between best value forms of procurement and competitive tendering. With the introduction of further framework and collaborative arrangements over the coming year it will be necessary to consider whether the proportion of best value procurement should be increased. Proposals will be presented to the panel in October once an analysis of the projected workload through the various arrangements has been undertaken.
11.0		Efficiencies
11.1		The new forms of procurement introduced by Property Services over recent years continue to generate efficiency savings in a number of ways.
11.2		The Hampshire major framework is approaching the end of its 4 year term and a total of 35 major projects have been let through the arrangements with a combined value of about £180m. Many of these projects would otherwise have had to have been procured through individual OJEU compliant tender processes. For every major project which has been procured through the framework instead of a singular OJEU process an efficiency saving of between £50,000 and £100,000 has been achieved. This is due to a simplified pre qualification and tender process under a framework. A full OJEU compliant tender would have been required for 17 out of the 35 projects and a lesser savings achieved on the other 18 projects. In addition the major framework has enabled some projects such as the Enhance programme, new schools and sports halls to be package procured and earlier reports to this panel have noted that on Enhance in particular that a 10% efficiency saving had.
11.3		The re-tendered engineering maintenance term contracts has generated a number of savings through: _ Reduced management costs for the contractors _ Spreading overheads across larger contract areas _ Reducing staff time required for raising orders and processing invoices by including capital works arising from maintenance requirements within the scope of the contracts _ Reducing the Property Services contract management team from 12 to 9 staff, releasing staff to deliver work streams currently managed by external consultants.
11.4		As noted above the Department has demonstrated through the Enhance programme (and a similar effect has been noted on standardised sports hall projects) savings in professional fees, design and construction time generated through aggregation of a number of similar schemes into a programme of work with a common design template and common supply chains. These principles are being applied to the current programme of new primary schools including those being constructed at Kings Copse and Dowd's Farm and it is anticipated that further efficiency savings will be generated.
11.5		The new reactive building maintenance term contracts will also generate efficiency savings, once established through: _ Centralising the internal management of the work _ Increased collaboration with contractors _ Monthly invoicing _ Alternative out of hours arrangements The likely efficiency savings will be assessed and reported to the Panel once the detailed contract arrangements have been developed.
12.0		Building Cost Trends
12.1		A study of the general trend of costs for the County Council's building projects over the last five years has been undertaken. The results of this study have been compared with construction inflation as identified by both the DTI and the Royal Institution of Chartered Surveyors Building Cost Information Service (BCIS). The study of County Council projects is based on analysis of actual costs per square metre of floor area. The analysis has shown that, over the period, costs for the County Council's schemes have generally remained in line with reported inflation taking into account the additional requirements of recent legislation for improved thermal, acoustic and environmental performance of new buildings. A schedule of typical benchmark costs for HCC projects across a range of facilities is included in Appendix 6.
12.2		Schools Building Programme The Procurement Initiatives report presented to this Panel in July 2006 identified the relationship between the cost benchmarks for school buildings identified by the DfES (their publication entitled `Education Building Projects: Information on Costs and Performance Data' of April 2003) and County Council school building projects. It showed that County Council schemes are on average 1% above the guideline cost. The benchmark figures from the DfES have not been revised since publication in 2003. There are also a number of exclusions in their costs and this makes it increasingly difficult for a like-for-like comparison to be made until such time as the DfES updates its guideline costs. To overcome this difficulty a detailed analysis has been undertaken to enable a meaningful comparison to be made between the DfES guideline costs and the costs of two of the most recently constructed new primary schools (Elvetham Heath and Pinewood). This analysis is included in Appendix 7 and shows the following outcome: - DfES guideline net cost (updated for new regs. @ 4Q05 base) = £1,681/m2 - Elvetham Heath net cost @ 4Q05 = £1,574/m2 (-6%) - Pinewood net cost @4Q05 = £1,860/m2 (+10% - mainly due to a high level of sustainability in the cost) The full analysis of HCC schemes show that the variation of no more than 1% above the DfES guideline is being maintained.
12.3		It should be noted that the DfES Benchmark draws on real data from recent and past completed Schools. There is usually a `time lag' before the index catches up with the latest legislative requirements for school building design. In addition Hampshire's core brief for schools exceeds the minimum requirement of the DfES benchmark, therefore additional specialist facilities such as IT Suites and Music Drama spaces are included as standard. Both of these factors would go some way to explaining the marginal premium that the County Council experience over the DfES benchmark .
12.4		Future Cost Trends Looking forward BCIS and DTI predict annual Tender Price Inflation of between 5% and 6% for the period 2007 to 2011. On top of this, further additions to the Building Regulations are expected to add between 5% to building costs from April 2007. The additional load on the construction industry in preparation for the Olympic games in 2012 is also expected to increase construction costs by 1-2% over and above normal inflation, in this region.

13		Additions/amendments to the Capital Repairs and NDS (Condition) programmes
13.1		Following a review of priorities for projects with the capital repairs programme it is proposed to allocate funding in 2007/08 to those projects highlighted in paragraph 13.3. Members will note that it has been possible to allocate some funding to the non-education estate.

13.2		A limited number of additions have been made to the NDS Condition Fund budget and these are also shown below:

	13.3		£50,000 - £100,000 Hamble Secondary Windows to west block Fernhill School Roofing to drama block Testwood School Roofing to main block Hayling Community School Contribution to sportshall recladding (NDS) The Green House Window renewals Westholme Window renewals Calshot Replace sewage plant Three Minsters House Builders work associated with cooling installation Petersfield Library Window replacement and external decorations Mill Rythe Junior School External redecoration Bosmere Junior School External redecoration St Peters CE (Aided) Junior School External redecoration Shamblehurst Primary School External redecoration Refurbishment of lifts in Hampshire Records Office Refurbishment of lift in EII Court Shipton Bellinger School Replacement of hot and cold water pipework £100,000 - £250,000 Chrismas Lodge Demolition Portchester Library Re-roofing Royal Victoria Country Park Re-roofing and decoration Solent Mead Window replacement Willis Museum Structural repairs Three Minsters House Asbestos removal Bishops Waltham House Internal decorations and refurbishment Toynbee School External decorations Hamble School NDS 2007/08 - external decoration Oaklands RC (Aided) School (fair funding) external decoration Ringwood School External decorations Testwood School External decorations Calthorpe Park School Replacement of underground gas mains Three Minsters House Phase 1 of cooling tower replacement Over £250,000 Applemore College Replacement of boiler plant and Asbestos removal Sir Harold Hillier Gardens All accessible path (funded from the Gardens Development Fund and external fund raising)


LINK(S) TO CORPORATE STRATEGY
	Yes	No
Hampshire safer and more secure for all		_
Maximising well-being		_
Enhancing our quality of place	_

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because:

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1 Published works

2 Documents which disclose exempt or confidential information as defined in the Act

........................

BLPP0307F

Framework Agreement for Major Capital Projects 2006/07


WORKS	CONTRACTOR(S)	VALUE	SELECTION METHOD	REASON FOR PROCUREMENT STRATEGY
PROJECTS NOW ALLOCATED TO THE FRAMEWORK ARRANGEMENTS
Children's Centres - modular building projects at 14 properties (locations to be confirmed once schemes have been finalised).	Brazier Construction	9,000,000	Direct appointment through Major Framework call off arrangement	_ Early contractor involvement to undertake selection of modular building supplier(s) and assist with complex construction planning and programming to meet deadlines. _ Contractor has consistently performed well on a wide range of projects and added value to pre-construction process.
Elvetham Heath Primary School - extension to 3FE	Mansell Construction	3,000,000	Direct appointment through Major Framework call off arrangement	_ Early contractor appointment to assist with scheme design and construction planning and programming. _ Contractor undertook extension of school to 2FE in 2004 and is therefore familiar with school and site. _ Contractor has performed well on a number of recent primary school projects.
PROJECTS CURRENTLY UNDER DESIGN DEVELOPMENT
Education Capital
Marnell Infant & Junior Schools Major refurbishment and extensions	Brazier Construction	3,000,000	Direct appointment through Major Framework call off arrangement	_ Early contractor involvement to assist with scheme design and construction planning and programming _ Contractor has preformed well on a number of previous projects procured on similar develop and construct basis _ Contractor currently undertaking project involving similar internal refurbishment works
Tadley Burnham Copse School Reorganisation	Brazier Construction	3,000,000	Direct appointment through Major Framework call off arrangement	_ Early contractor involvement with scheme design development, planning and programming. _ Contractor has performed well on a number of framework projects
Romsey Primary School Reorganisation	Mansell Construction	£3,000,000	Direct appointment through Major Framework call off arrangement	· Early contractor involvement with the scheme design development, planning and programming. · Good performance on the Waterside School project which is of a similar nature · Contractor has previously worked with the design team
Dowd's Farm Primary School New 1FE School	HBG	£3,700,000	Direct appointment through Major Framework call off arrangement	· Part of pilot programme to develop common design and procurement template for new primary schools. · Early appointment of contractor to assist with development of common design approach, procurement of key supply chains, planning and programming of the works. · Contractor has performed well on Enhance projects
King's Copse Primary School New 1FE School	HBG	£4,000,000	Direct appointment through Major Framework call off arrangement	· Part of pilot programme to develop common design and procurement template for new primary schools. · Early appointment of contractor to assist with development of common design approach, procurement of key supply chains, planning and programming of the works. · Contractor has performed well on Enhance projects
Cadlands Primary School New 2 FE Primary School (on existing Junior site)	Mansell	£1,800,000	Direct appointment through Major Framework call off arrangements	· Early contractor involvement required due to complexity of schemes and to engage in planning and programming of the works · Contractor has considerable experience of similar school reorganisation schemes through the framework
Other
Ashburton Court Redevelopment	HBG	£30,000,000	Selection based on framework agreement call off arrangements.	· Early involvement of major contractor required due to scale and complexity of the scheme · Phasing and construction strategy for complex inner city project to be developed · Contractor has performed well on a range of major framework schemes · Contractor has experience of major office developments and appropriate capacity and resource to undertake works
Hook Infant School Major re-roofing works	Mansell	£1,340,000	Direct appointment through Major Framework call off arrangements	· Early contractor involvement required due to complexity of scheme and to engage pre-programming of the work · Contractor has experience of working on similar Education schemes and has necessary capacity to meet the operational timescale
CONTRACTS CURRENTLY UNDER CONSTRUCTION
Havant EBD (Sundridge BESD)	Balfour Betty	£4,822,919	Direct appointment through Major Framework call off arrangement	· Contractor involvement with the final planning programme and scheme procurement · Good performance on Enhance projects and extensive experience of Education sector beneficial to the development of the scheme. · Good local knowledge following the nearby Malmsbury Lawn project
Havant ESC (Woodlands Education Centre)	Balfour Beatty Construction	£4,726,995	Direct appointment through Major Framework call off arrangement	· Early contractor involvement with the scheme design development, planning and programming. · Good performance on the Enhance projects and knowledge transfer · Good local knowledge following work at Malmsbury Lawn and current work at Havant EBD · Running both the EBD and ESC projects through a combined team.
Pinewood School, Farnborough New 1FE Infant School	Brazier	£3,220,103	Direct appointment through Major Framework call off arrangement	· Part of pilot programme to develop common design and procurement template for new primary schools. · Early appointment of contractor to assist with development of common design approach, procurement of key supply chains, planning and programming of the works. · Contractor has performed well on a number of major projects including the Enhance programme of work.
Priestlands School Entrance Refurbishment	Mansell	£187,000	Direct appointment through Major Framework call off arrangement	· Contractor recently completed Centre for Performing Arts at the school · Continuity with major scheme and benefits from working with established supply chain · Contractor able to undertake work in very tight timescale to meet school operational needs
Staunton Park Community School Repairs & Refurbishment of Sports Hall & Changing Rooms	Balfour Beatty	£600,000	Direct appointment through Major Framework call off arrangement	· Project linked with work at Havant EBD and Havant ESC · Efficiency savings in terms of shared supply chain and management arrangements
Temporary Park'n'Ride facilities, Bar End, Winchester	HBG	£398,968	Direct appointment through Major Framework call off arrangement	· Work required in advance of main Ashburton Court redevelopment in order to release working space for main contractor · Main contractor for the Ashburton Court project appointed so creating a single point of responsibility for related projects

SECE Framework for Major Schemes and Programmes of Work (Tier 1)


WORKS	CONTRACTOR(S)	VALUE	SELECTION METHOD	REASON FOR PROCUREMENT STRATEGY
PROJECTS NOW ALLOCATED TO THE FRAMEWORK ARRANGEMENTS
Andover Primary Schools - new build and extension / refurbishment projects at a number of sites	2 contractors to be selected	20,000,000	Mini competition between four framework contractors	_ Early appointment of contractors to assist with development of common design approach, procurement of key supply chains, planning and programming of the works. _ Exemplar projects to demonstrate effectiveness of framework arrangement under
Gosport Bay House -New Sixth Form Building	Single Contractor to be selected	2,500,000	Mini competition or a single contractor selection	_ Early Contractor involvement with the design and development of the scheme

Additional Proposals

Second Tier Framework (SME) Pilots

Schemes for development under the pilot second tier frameworks were reported to the Panel in March. The following additional schemes have now been allocated to the pilot arrangements:

Pilot Package 1

Contractor	Scheme	Estimated Value
R V Dart	_ Henry Beaufort School - 2 no. science lab refurbishments	£ 199,000
	_ The Clere - extension	£350,000
	_ Hayling Secondary - Sports Hall re-cladding	£300,000
	_ Yateley School - design technology laboratory	£139,000

Nolan Davis	_ Fort Hill - food technology room	£ 96,000
	_ Fort Hill - science laboratory	£100,000
	_ Harrow Way - food technology room	£ 99,500
	_ Eggars School - food technology room	£ 99,500
	_ Fernhill - CDT	£275,000
	_ New Milton Junior School - - Toilet refurbishment	£ 63,000

Gregory Havant	_ Horndean Technology College - Vocational Training Facility	£215,000
	_ Red Barn Primary School - toilet refurbishment	£ 25,000
	_ Kings School - reception refurbishment	£ 75,000
	_ Kings School - boarding house	£ 75,000

	Package 1 Total	£1,672,000

Pilot Package 2

Contractor	Scheme	Estimated Value
Coleborn	_ Gomer Infant School - extension	£60,000

	Package 2 total	£60,000

The following schemes being developed under the pilot frameworks were reported to the Panel in March, but have subsequently increased in scope and value:

Contractor	Scheme	Estimated Value
Nolan Davis	_ Basingstoke Library - sprinkler installation	£145,000

Coleborn	_ Meadowlands Junior - toilet refurbishment (phases 1 & 2 amalgamated)	£ 53,000

HP Contracts	_ Refurbishment of toilets and changing rooms	£162,000

External Decorations

A programme of external decorations work for 2007/8 to be negotiated with a number of preferred contractors has previously been presented to the Panel. Following confirmation of landlord's capital CRA budgets for 2007/8 the following additional schemes have now been identified and it is proposed to negotiate these with preferred contractors as detailed below in order to compete the works during the summer and early autumn. As the packages are developed some variance in the scheme values may occur.

Contractor	Property	Estimated Value
Purkiss	_ Bosmere Junior School _ Oaklands RC Secondary School	£ 61,000 £175,000
Mitie Property Services	_ St Peters CEA Junior School _ Testwood School	£ 96,000 £119,000
Ferris	_ Minstead Rural Studies Centre _ Manor Infant School	£ 4,000 £ 19,000
Richardsons	_ Woolton Hill Junior School	£ 28,000
Pool & Sons	_ Clatford CE (A) Primary _ Hatherden CE (A) Primary _ Romsey Abbey CE (A) Primary _ St Peters CE (A) Primary _ Wallop Primary	£ 23,000 £ 10,500 £ 29,000 £ 18,000 £ 33,500
Tew Brothers	_ Hamble School _ Toynbee School	£100,000 £190,500

The report to the Panel in March included a proposal to negotiate external decorations work at Staunton Country Park with Mitie. It is now proposed to negotiate this work with Atkins. The estimated cost is £46,000.

Temporary Buildings Term Contract

As previously reported to the Panel a tender exercise to select a second contractor for the term contract for the supply, transfer and hire of volumetric buildings has recently been undertaken. The tender evaluation process is currently ongoing and it is anticipated that a contractor will be appointed by September 2007.

In the interim, to ensure sufficient capacity to deliver the County Council's programme over the coming months, it is proposed to negotiate with Martin Reynolds Construction (MRC) to undertake the transfer of temporary buildings within Hampshire and to provide new temporary buildings where our current contractor may not have sufficient capacity, up to a total value of £250,000. Martin Reynolds Construction has previously performed well on this type of work for the County Council and has been competitive on price. Project procured through this arrangement will be reported to the Panel in October.

Reactive Maintenance Term Contract

A Contract Notice for the procurement of reactive maintenance term contracts is due to be published in the Official Journal of the European Journal shortly. It is proposed to procure three term contracts for the provision of reactive building maintenance and minor building works during normal working hours within defined geographical areas of the county. A fourth contract will provide out of hours reactive maintenance and the initial response to major incidents such as fires across the whole County.

Tenders will be invited in September with a view to appointing contractors in the Spring 2008.

Consultant Framework Arrangements

As set out in the report it is proposed to renew the Department's consultancy framework arrangements. The following consultant framework arrangements will be tendered over the next few months:

Discipline	Anticipated commencement

Town Planning and Urban Design	April 2008
Transport Planning including highway design	April 2008
Structural & Civil Engineering: Lot 1 - Structural engineering design Lot 2 - Structural inspections Lot 3 - Civil engineering including drainage, earthworks and geotechnics	April 2008
Quantity Surveying & Cost Management Lot 1 - Quantity Surveying Lot 2 - Project Management	April 2008
Landscape Architecture including ecology	July 2008
Mechanical and Electrical Engineering Design incorporating thermal modelling, BREEAM etc.	September 2008
Acoustics	December 2008
Archaeology	December 2008

While the new framework arrangements are being re-tendered, it is proposed to extend the current Structural Engineering arrangement until 31 March 2008. To date, commissions totalling £7.64 million have been placed under this framework. This exceeds the estimated annual fee of £1.2 million per annum reported at the start of the contracts, mainly due to the increase in the capital programme during recent years which has included a number of significant projects such as Enhance, Everest Community College and the Ashburton Court redevelopment. It is estimated that a further £1.36 million of work will be placed under the extended arrangement, bringing the total to just over £9 million.

Children's Centre Programme

As previously reported to the Panel a programme of projects to provide enhanced Children's Centres facilities in Hampshire is being undertaken. A modular building solution has been identified for 14 of the projects and it is proposed to procure these through Brazier Construction under the Framework for Major Schemes and Programmes of Work, as detailed in the main report.

The remaining projects comprise a range of new build, refurbishment and minor works. While these projects are individually of relatively low value, the planning and logistics are complicated by the involvement of a large number of stakeholders and the funding is dependent on the projects being completed by September 2008 at the latest. It is therefore proposed to negotiate these schemes with four contractors who have a proven ability to work collaboratively with the Department so that a programme can be agreed at an early stage and design and procurement prioritised to make best use of both in-house and contractor resources. The contractors are RV Dart, Nolan Davis, Coleborn and HP Contracts. There are currently 18 schemes proposed to be procured through this route however, exact location of schemes is still to be finalised in conjunction with Children's Services and will be reported to the Chief Executive's Department and the Panel once final agreement has been reached with the properties in question. The schemes typically range from £130k to £800k in construction value with a current total estimated construction value of approximately £10 million.

Kings Somborne Primary School - reinstatement of fire damage

Following the recent fire at Kings Somborne Primary School a programme of clean up and reinstatement works has been identified. In accordance with the major incident procedures detailed under the pilot reactive maintenance contract, Tew Brothers provided the initial response to secure the site and undertake some emergency works to prevent further water damage. It is therefore proposed to negotiate the further reinstatement works with Tew Brothers who have confirmed that they have resources available. An initial assessment of the works required indicates a budget cost of £420k, however this will need to be reviewed once further inspections have been completed and the design work progressed.

Hampshire Integrated Community Equipment Service - internal alterations to new premises

Adult Social care have recently agreed a lease for new premises for the Hampshire Integrated Community Equipment Service. A programme of internal alterations

to the property has been approved by Executive Member Adult Social Care comprising the internal development of the offices and warehouse, including a mezzanine floor to maximise the storage area, together with a decontamination area. In order to commence works as soon as possible and provide certainty of the construction programme, to enable Adult Social Care to plan the transfer of the service and termination of the lease on the current premises, it is proposed to negotiate the project with Brymor who have previously undertaken a number of successful projects within Property management. The estimated cost of the scheme is £401k.

Various Properties - Hot Surfaces Protection Work

Funding of £150k has been identified to undertake urgent hot surfaces protection work across a number of Children's Services properties. In order to undertake priority 1 works prior to the start of the new heating season in September it is proposed to procure the works through the engineering maintenance term contracts. The term contractors will be responsible for the management and co-ordination of the works which will be undertaken by a specialist firm, DRH radiators.

Basingstoke School Plus - internal alterations and extension

Children's Services has recently confirmed funding for some internal alterations and extension works to the Basingstoke School Plus, Pack Lane site. The school is currently in Ofsted special measures and the works are part of the strategy for improvement. As the site is subject to high levels of vandalism and it is necessary to set up and secure the site during the school summer holidays. It is therefore proposed to negotiate the works with Drew Smith who have confirmed that they have resource available to meet the programme. The estimated value of the works is £200k.

Oakridge Infant School - Re-cladding

The proposal to negotiate the second phase of re-cladding works at Oakridge Infant School was reported to the Panel in March. The estimated value of these works is now confirmed as £200k.

North Farnborough - re-roofing

The proposal to negotiate this project with West End Roofing and Construction was reported to the Panel in March. Following completion of detail design the estimated construction cost of this scheme has increased to £150k.

Pennington Infant School - re-roofing

The proposal to negotiate this project with West End Roofing and Construction was reported to the Panel in March. Following detailed design work and the identification of further work required to the roof-lights the estimated construction cost of this scheme

has increased to £120k.

Applemore College - Scola re-cladding phase 3

The second phase of re-cladding at Applemore College was won through competitive tender by Nolan Davis. Subject to satisfactory performance on site, it is now proposed to negotiate the third phase of works with Nolan Davis using the tendered rates, to maintain continuity on site.

Yateley School - Scola re-cladding Phase 2

The first phase of re-cladding at Yateley school was won through competitive tender by Drew Smith. NDS condition funding has now been confirmed to undertake a further phase of re-cladding works. Subject to satisfactory performance on site, it is proposed to negotiate these works with Drew Smith based on the tendered rates, to maintain continuity on site.

Cranbourne Business and Enterprise College - Scola re-cladding phase 3

Drew Smith won the first phase of re-cladding works through competitive tender and are currently undertaking a second phase of work. NDS condition funding has now been allocated for a third phase of re-cladding and it is proposed to negotiate these works with Drew Smith who have performed well, to maintain continuity on site.

Brookfield Community School and Language College - fire precaution works

The proposal to negotiate a second phase of SAI works and refurbishment of food technology rooms with Brymor Ltd was reported to the Panel in March. Subsequently £30k funding to undertake fire precaution works has been confirmed and it is proposed to incorporate these into the programme of works negotiated with Brymor, increasing the total value of the contract to £290k.

Perins School - Replacement of Sports Hall floor

It is proposed to negotiate a contract for the replacement of the sports hall floor at Perins School. Discussions are currently being held with two specialist flooring contractors, Just Floor and Key Floors to determine the best value solution. The works involve the use of a specialist subcontractor and need to be completed during the school summer holidays. The estimated value of the scheme is £85k.

Kings School - Science Laboratory refurbishment

Kings School have confirmed funding to refurbish one science laboratory and have requested that the contract is negotiated with Klick Technology Ltd who have recently been accepted on to the department's Register of Contractors. The estimated cost of the scheme is £99,500.

Chrismas Lodge - Demolition Works

It is proposed to undertake demolition of Chrismas Lodge, a vacant property which has been subject to a recent arson attack which damaged the structure and where the risk of unauthorised entry poses a health and safety risk. In order to undertake the demolition during the summer holiday period it is proposed to negotiate the works with Hughes and Salvage, a specialist demolition contractor. It is anticipated that the works will cost up to £125k.

Framework for recovery work following major incidents

It is proposed to establish a framework arrangement with a single operator to undertake recovery work following major incidents at Hampshire County Council owned properties. The framework will be in operation for up to 4 years. Work covered by this framework will include property contents recovery, specialist cleaning and salvage. Based upon previous expenditure on such work it is anticipated that the framework will cost up to £500k. A Contract Notice will be placed through the Official Journal of the EU inviting expressions of interest for this service.

Rowner Infant School - Toilet refurbishment & associated drainage works

The school has requested that their existing toilets be refurbished. Following survey work it has been established that existing pitch fibre foul drainage pipes have become deformed and are liable to collapse. It is therefore proposed to replace the drainage pipes as part of the refurbishment work. The work is estimated to cost £75k (School funding £35k and P&R £40k) and it is proposed to negotiate with West End Roofing & Construction who are experienced in this field of work.

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Summary

Section 100 D - Local Government Act 1972 - background papers

CONTRACTS CURRENTLY UNDER CONSTRUCTION

Scheme

Scheme