THE education sector is well versed in procuring built environment work. However, current market constraints, the latest statistics on the level of work needed across school estates and the lack of associated funding means that it will not be an easy road for many. Emma Hesbrook, regional manager at national
LEADING multi-disciplinary consultancies Pick Everard and Delta Simons, and agents Pygott & Crone, have secured a four-year appointment to Eastern Shires Purchasing Organisation’s (ESPO) Estates Management Services framework. The framework provides a range of estate management professional services relating to the use, management, acquisition, disposal and development of land and
Woodhead Group has secured a place on two new frameworks and is on its way to deliver a third one, adding to its recent success on the Pagabo framework. The firm won a place on the Westworks Procurement Development and Construction DPS and was reappointed to the Blue Skies Contractor
As previously reported, concerns have already been raised as to the division of governmental spending between SME and larger enterprises. And while governmental figures have highlighted a marked increase in the usage of SMEs on key contracts, further woes have been raised as to the skewing of such results where
In a recent report the government has been urged to consider a more considerable approach on the procurement of services from SMEs. The report, which was produced by the National Audit Office, has highlighted growing concerns as to whether the government will be able to hit increased SME spending targets
BDC 321 : Oct 2024
THE education sector is well versed in procuring built environment work. However, current market constraints, the latest statistics on the level of work needed across school estates and the lack of associated funding means that it will not be an easy road for many. Emma Hesbrook, regional manager at national framework provider Pagabo, discusses how compliant procurement through frameworks and a direct award approach can support schools with their building programmes. 61 schools have been announced this week as successful in securing funding from the government’s school rebuilding programme. Although, this number is a drop in the ocean when compared to the fact that 1,105 schools applied for support within a short four-week window earlier this year. With the Department for Education (DfE) planning to support 500 projects in the next decade, that means more than half of this batch of applicants are likely to miss out on funding altogether – and considering the DfE has previously revealed that more than £11 billion of repair work is needed across England’s schools, this is significantly short of what is needed. To qualify for this latest allocation of funding, schools had to demonstrate that they had at least 1,200 square metres of ‘severe condition need’ to apply. The government has quite rightly prioritised applications with ‘structural or safety issues that pose risk to users’, followed by those showing ‘severe deterioration’ in external walls, roofs, windows or doors, or those with mechanical and electrical systems ‘close to failure’. However, outside of these categories there are thousands of schools that require refurbishment work that are just as important. As well as maintenance, another consideration is the drive towards net zero. Almost 70 per cent of schools around the country comprise of buildings from before the 2000s – with 20 per cent dating back to the first half of the 20th century or even earlier. There are no prizes for guessing when education providers prefer – or rely on – construction work to be undertaken considering that summer offers the largest annual window in which sites are significantly quieter. Post-covid, summer has provided an ideal concentrated timespan to get building work, critical repair or maintenance work done. With such a significant number of schools needing work and likely to miss out on funding, it’s fair to assume that next summer will be busier than ever with summer works – and we may see a marked increase in works during term time as well. When it comes to carrying out education projects in recent months, we have seen an increase in contractors turning projects off and turning their backs on expensive bidding opportunities. This comes as no real surprise when considering the backdrop of rising costs, and materials and labour shortages across the construction industry – but it has given the direct award process a new lease of life in the procurement realm. We know that clients have existing supply chain relationships, which must be nurtured. While framework providers are capable of consulting and opening up a network of compliant suppliers, there is intangible value found in building on existing collaboration, which direct award can allow. The direct award approach is one that can work for both low and high-value projects, offering benefits including greater cost and programme certainty, tailored social value outcomes and no stressful or costly bidding process. It also allows for a quick turnaround for supplier appointment, without compensating on compliance checks. One such example of a recent scheme that maximised the benefits of the direct award process is Nottingham College. The team approached us in April for a low value project to be completed this summer. The expression of interest went to market via our DPS and Medium Works framework, but with suppliers oversubscribed with work to assign the necessary bidding resource to the project, a direct award was suggested. Local contractor J Tomlinson was appointed quickly via direct award, getting the project on track and on site within weeks – and is now making excellent progress against the original programme timetable. Schools craft our experts of tomorrow and without the best environments, pupils’ learning experience will be impacted. This is why it’s so important that the built environment sector looks to support schools with creating those excellent environments, and while funding continues to fall short for schools, we must champion tactics like direct award to help schools in creating the environments they need however and where we can. For more information, please visit https://www.pagabo.co.uk/
LEADING multi-disciplinary consultancies Pick Everard and Delta Simons, and agents Pygott & Crone, have secured a four-year appointment to Eastern Shires Purchasing Organisation’s (ESPO) Estates Management Services framework. The framework provides a range of estate management professional services relating to the use, management, acquisition, disposal and development of land and property. It is available for use by any public sector body in the UK, including schools and academies, local authorities, police and emergency services, and central government departments. Now appointed, the firms will deliver a range of services – including valuations, commercial and agricultural agency, building surveying, property and estate management, and environmental planning – across projects nationally. Alex Hamilton-Jordan, head of strategic partnerships at Pick Everard, said: “We are delighted to have been appointed to ESPO’s Estates Management Services framework, in partnership with Delta Simons and Pygott & Crone. “At Pick Everard, we place great importance on developing strong relationships with our supply chain and SME organisations, and this appointment shows us working in the true spirit of partnership. “We deliver a high number of projects through national frameworks and we understand the significant opportunities partnerships with Pick Everard present for our supply chain partners. Over the past two years, we have engaged with 196 supply chain partners and are proud that this figure is increasing as we continue to support and promote collaborative working to improve our service to clients and improve a project for end users. “SMEs aren’t always able to tender for major industry frameworks, despite having the relevant expertise to deliver the work. Due to our extensive experience in the delivery of frameworks, we are able to compete for, and secure, major national opportunities, which provides our valued supply chain partners the ability to win new clients and work via a robust and compliant procurement route. “In this instance, the three firms worked together to produce the bid under the Pick Everard banner, utilising our framework experience, combined with Delta Simons’ and Pygott & Crone’s specialist expertise.” Pick Everard, Pygott & Crone and Delta Simons have been appointed to five lots on the framework, these include: valuation services, commercial agency, agricultural agency, lease management and planning consultancy. Damian Robinson, divisional director of environmental planning at Delta-Simons, said: “We are delighted to be appointed onto ESPO’s Estate Management Services framework and believe that our strategic partnership will deliver great value outcomes for those procuring via the framework. As a partnership, we share strong business cultures founded on collaborative working, innovation and trust, having already worked together for many years.” Tim Downing, director at award-winning agency Pygott & Crone, said: “We’re really looking forward to working with Pick Everard and Delta Simons on this exciting new opportunity. As a multi-practice agency, we now also have UK coverage and have the ability to offer the public sector innovative and valuable advice on all aspects of their property requirements.” Pick Everard employs more than 500 staff across its 13 UK offices, providing a range of project, cost and design consultancy services. For more information, please visit www.pickeverard.co.uk.
Woodhead Group has secured a place on two new frameworks and is on its way to deliver a third one, adding to its recent success on the Pagabo framework. The firm won a place on the Westworks Procurement Development and Construction DPS and was reappointed to the Blue Skies Contractor framework. “Securing a place on three public sector frameworks demonstrates that we are trusted partners, we have delivered excellent social value returns and as a company we are passionate about working collaboratively to hand over successful projects. This trio of appointments has got 2019 off to a flying start and we are very pleased to have secured places on each framework,” said Tom Woodhead, director of the Woodhead Group. Available for use by all Westworks and Efficiency East Midlands (EEM), the Westworks Procurement Development and Construction DPS is part of the Collaboration arrangement between several like-minded procurement consortia. Woodhead Group has been part of EEM for seven years. During this time the company has delivered or is on site with more than £50 million of projects and is set to complete its 500th home secured through the framework in 2019. “These frameworks act as a strong trust signal for councils and housing associations that are looking to work with us, and is a real testament to the high standard of work we deliver and our commitment to deliver real social value to local communities,” added Rom Woodhead. Blue Skies Contractor framework is run by the Blue Skies Consortium, which is a collection of housing associations. It aims to deliver primarily affordable housing residential developments for the different associations.
As previously reported, concerns have already been raised as to the division of governmental spending between SME and larger enterprises. And while governmental figures have highlighted a marked increase in the usage of SMEs on key contracts, further woes have been raised as to the skewing of such results where subcontractor works are performed on behalf of the larger enterprises. As such, the National Audit Office has highlighted that it could not be certain as to whether there has actually been an increase in direct spending with SMEs, with the previous indirect spending figures being entirely incomparable with earlier statistics. A worrying notion, to be sure, with the NAO stressing the increased importance for more governmental focus on spending within the SME base of the supply chain. With concerns already having been raised as to the continuity of the government’s success in integrating SMEs into the supply chain more appropriately, the notion comes at a time whereby increased questions are being raised as to just how much extra is actually being spent with SMEs, both directly and indirectly. A positive sign can be seen in the increased accessibility of application for governmental works by SME practices as a bare minimum on the progress made thus far, however it is becoming increasingly evident that competing for such works and securing spending from the government may not yet be a great degree easier than has previously been seen. BIFM’s Chair of the Procurement Special Interest Group, Wendy Sutherland, commented: “The ability for SMEs to actively participate in this environment is challenging despite the best intentions of central government, as can be seen when reading the list of the successful suppliers.” Of course, as previously highlighted, the position is one whereby the government has been urged to reassess and identify further ways in which it can both engage with, and sped directly with the SME supplier base else, it is feared that targets for SME spending will not be met.
In a recent report the government has been urged to consider a more considerable approach on the procurement of services from SMEs. The report, which was produced by the National Audit Office, has highlighted growing concerns as to whether the government will be able to hit increased SME spending targets by 2020. Although, as reported by the National Audit Office, the government actually managed to reach its 2010 target of spending 25% of overall spending with smaller firms by 2015, a year earlier than the targeted end date, the report highlights concerns as to how the government will take its next step. The new target, set at 33% of overall spending,has been cited to take circa £3bn into SME businesses for central government spending alone; an ambitious target. One of the key measures which has been noted as a positive step forward is the Crown Commercial Service’s contract finder, allowing SMEs to more easily, and readily access governmental contracts worth more than £10,000. Yet, the report highlights that in certain areas of service, such as facilities management, it may still yet be too challenging for SMEs to compete for contracts against larger enterprises. With the list of successful applicants to the government contracts on the contract finder thus far highlighting a lack of success for SMEs, it is hoped that the government will assist in opening up further contracts and elements of the main contracts for subcontracting where SMEs will be able to enter the fray on a more competitive stage. As such, the National Audit Office has suggested for the Crown Commercial Service to alter its approach to procurement, by working directly with key departments to best assess where SMEs can bring the greatest amount of benefit; not solely for SME benefit, but also for the government as a whole. Additionally, suggestions have been made as to the need for oversight of key contractor to subcontractor relationships.
