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					Workstreams Update

 Workstream 1:                     Procurement & Skills

 Lead:                             John Lorimer & David Corcoran

 Date of update:                   March 2012

 Executive Overview:

 Work has been completed on the first wave of initiatives agreed by the Board and documented in
 the business model recommendation. A summary of these initiatives is provided below.

  Procurement & Skills Workstream - Wave 1   Status
                                                                            J F M A M J J A S O N D
  1) 2011 Benefits Report                    Complete
  2) NIEP Common KPIs                        Complete
  3) Guide to NIEP Frameworks                Complete
  4) WM Framework for Jobs & Skills          Complete
  5) CAP – NIEP Procurement Guide            Complete
  6) APPG Inquiry Response                   Complete
  7) James Review Response                   Complete
  8) Sustainability - carbon calculator      Incorporated in BIM strategy
  9) ERG Fair Payment web-based model        ERG not progressing

 A workshop was held 18th July 2011 to identify next steps for the Procurement and Skills
 workstream and develop potential ideas for closer collaboration. The workstream agreed to the
 following wave 2 priorities:

    Government Construction Strategy (GCS) and Task Groups - align workstream deliverables
    Cost benchmarking - develop NIEP cost benchmarking data and link to value for money
    Efficiency savings and benefits – develop NIEP guidance
    Share resources and skills between regions – develop programmes and clusters
    Standardisation and supply chain – develop NIEP approach, increase supply chain leverage
    Marketing – website improvements, virtual office with regional NIEP ambassadors, build upon
     NIEP national brand

  Procurement & Skills Workstream – Wave 2   Status
                                                                            J F M A M J J A S O N D
  1) GCS Task Groups                         Underway
  2) Cost Benchmarking                       Underway
  3) Efficiency Savings and Benefits         Underway
  4) Share Resources and Skills              Underway
  5) Standardisation and Supply Chain        Underway
  6) Marketing                               Underway
Wave 1 - Progress

1) NIEP Common KPIs
The NIEP common KPIs have been agreed by the workstream and shared with Constructing
Excellence/the Construction Clients' Group (CCG) cross-sector benchmarking group for clients.
Through these common KPIs data will be collected from across the regions and will be submitted
as part of the NIEP Benefits report. It is also envisaged that the agreement of common KPIs and
the collection of data will be used to support the James Review. The KPIs that have been agreed
need further work in ensuring that there are appropriate definitions in place to help clients/users
score subjective KPIs.

2) Guide to Next Generation Frameworks

The guide is complete and outlines the top 10 fundamental characteristics of quality managed
frameworks, allowing for adaption to suit market conditions and regional variances. This guide
will also help inform the Government Construction Strategy (GCS) ‘Effectiveness of Frameworks’
review, led by the Cabinet Office and supported by the NIEP (refer Wave 2 progress for detail).
The ‘Effectiveness of Framework’ guide has now incorporated all comments and is due to be
submitted to the Government Construction Strategy Board.

3) All-Party Parliamentary Group (APPG) for Excellence in the Built Environment Inquiry
Guide is now available on
Andrew Smith will be presenting to the APPG on 12th March the Procurement and Skills response
to for Excellence in the Built Environment Inquiry.

4) James Review

Proposal has been submitted to the James Review advisory committee proposing the NIEP as the
central body coordinating delivery of the education capital and implementation locally through
clusters of NIEP regional frameworks. It has been agreed that a separate workshop would be held
to specifically discuss potential delivery models, existing NIEP infrastructure and to demonstrate
how the regions have adopted a unified approach.

5) Sustainability – BIM Strategy

A BIM strategy presentation was given by Mark Bew and David Philip from TG5 to NIEP
Procurement and Skills workshop 05.12.11. A follow up NIEP BIM workshop has been arranged
for 1st March 2012. Additionally a one page adoption strategy, case study, business case and ROI
data to be provided to the NIEP.

6) ERG Fair Payment web-based model

ERG is not currently progressing a centralised web-based model for monitoring fair payment
practices through central and local government, however there is a keen focus on adoption of
project bank accounts as a means to securing fair payment through the supply chain.
Implementation and monitoring of fair payment practices is a requirement of all NIEP frameworks
as agreed in the protocol and is being tested in collaboration with contractors through fair
payment working groups.
A separate session is due to be arranged with Brian Killgallon on PBAs so that the Procurement
and Skills workstream can better understand how they could work for a framework arrangement.
Mike Bennett from Highways Agency will be asked to share his experience of implementing PBAs.
Wave 2 - Progress

1) Government Construction Strategy - Task Groups
The Procurement and Skills workstream has agreed to align Wave 2 deliverables with the GCS as
a priority. The first step is securing NIEP representation on each of the six GCS task groups to
ensure current thinking and direction is shared at workstream meetings. Future workstream
meetings will have feedback from the task groups as a permanent agenda item.

The list of NIEP representatives on the GCS task groups is outlined below.

       GCS Task Group                     1. NIEP Representative
                                              Mike Lee
       1. Procurement / Lean Client
                                              Peter McDermott (CCINW)
       2. Standards / Lean Supply             John Lorimer
                                              Patrick Blogg
       3. FM / Soft Landings
                                              Peter McDermott (CCINW)
       4. Data and Benchmarking               David Corcoran
                                              John Lorimer
       5. BIM Strategy
                                              Keith Heard
                                              Alan Coole
       6. Performance Management
                                              Peter McDermott (CCINW)

GCS Task Group updates:

    1. Procurement / Lean Client

       The Framework Effectiveness paper has now incorporated all comments from the working
       group. This document looks to set out what is an effective framework, with information
       captured from the NIEP, MoJ, MoD, Environment Agency, P21 and PfS. The
       Effectiveness of Frameworks paper is due to be submitted to the Government
       Construction Board 15th March 2012.

    2. Standards / Lean Supply Chain

       Further meeting was held on 28th February 2012.

       A draft report was reviewed which focuses on the workstreams:

              Health and Safety - evidence tabled included cost to the state of injury, further
               research and case studies
              Value Proposition - incentivisation model for Consultants/Professional advisors
              Project Bank accounts

       It is anticipated this final report will be available April/May 2012.
    3. FM/ Soft Landings

        A Presentation was given on 5th December 2011 on EII Court outlining the steps taken
        during planning, procurement and post occupation to incorporate the Soft Landing process
        and its on going development within Hampshire County Council. The feed-back was that
        the group is keen to adopt the recommendations contained within HCC’s Soft Landing
        Green Guide. The next step proposed is the mandating of the Soft Landings via the
        Gateway process.
        The FM/Soft Landings team are looking to take their recommendation to the Government
        Construction Strategy board in September – including their alignment with BIM.

        Task Group is currently looking to review FM service provision through design of contract
        and cost benchmarking.

   4.   Data and Benchmarking

        NIEP Cost Benchmarking Template and Methodology has been shared with the task
        group. The outcome of the current cost benchmarking exercise being undertaken by the
        Procurement and Skills workstream will be shared with the Government Construction

   5.   BIM Strategy

        BIM presentation (Mark Bew, David Philips from TG5) to NIEP Procurement & Skills
        workshops 05/12/11. One page adoption plan, case study, business case and ROI data to
        be provided to the NIEP. Follow up NIEP/BIM workshops to be held 1st March 2012
        (delivery, commercial, technical)

   6.   Performance Management

        The last meeting was cancelled, Zerrin has been moved to other duties. A new meeting
        date/time needs to be set.

2) Cost benchmarking

The first stage of the Cost benchmarking exercise is now complete. The workstream are now
reviewing the results and from this, and looking to put in place the next steps required to further
the work. The Cost benchmarking data and analysis will be shared with the NIEP and agreement
sought as to how the results will be presented.

There will also be further consideration of the second phase of cost benchmarking (refurb options
/ other building types) and contributions from the regions for 2012.

The mechanism for sharing the cost of resource will need to be agreed at the next workstream

3) Efficiency Savings and Benefits
The workstream has agreed to incorporate guidance on efficiency savings and benefits as part of
the NIEP cost benchmarking group.
4) Share Resources and Skills
The first opportunity to share resources and skills is on the cost benchmarking exercise which is
being delivered by a team resourced from the regions. The sharing of resources and skills is
likely to develop further as work on standardisation and supply chains progresses. The South
East has shared its multiple authority cluster model currently being developed between
Hampshire County Council, Surrey County Council and Reading Borough Council which outlines
how a cluster of authorities can share resource, combine capital programmes and deliver
maximum efficiencies by adopting a programme management approach.

5) Standardisation and Supply Chain
In response to the James Review, the workstream has agreed to understand what work is
currently being undertaken on standardisation, including supply chain products and tools. The
NIEP’s position on standardisation will be collated over the coming weeks and reported back to
the next workstream meeting to agree next steps.

6) National Government Opportunities Awards

The Procurement and Skills workstream has been shortlisted for the “Team of the Year” as part of
the National GO Awards, which reflects the good work undertaken by the workstream. The
response document was required to outline the teams approach to innovation, creativity show
effectiveness, how the team achieved more than could have been expected and key outcomes
from the workstream. The Ceremony is due to be held 13th March 2012.

Key Planned Events 2012:
1. Government Construction Strategy - Task Group Meetings                 Ongoing
2. NIEP- Client Guide Review                                              March 2012
3. Construction Industry KPIs                                             Complete
4. National GO awards                                                     13th March 2012
5. Procurement and Skills workstream meeting                              TBA
Workstreams Update

    Workstream 2:            Client Leadership

    Lead:                    Bob White & Alan Coole

    Date of update:          March 2012

    Executive Overview:
    The Client Leadership workstream has developed the following 4 part strategy as follows:

    1.   Client Leadership Guide
    2.   Resource Signpost
    3.   New Client Champions
    4.   Private Sector Forum

    1. Client Leadership Guide (Presentation by Bob White)
    The NIEP Client Leadership guide identifies ten key messages that leadership in local
    government should address and also provides advice on tackling challenges for local
    government from dealing with barriers, making the case for change, understanding the
    issues and planning and delivering an improvement project.

    Field Work Enterprise (ex CABE) have produced the Client Leadership Guide which is
    currently being reviewed by the workstream members before NIEP Board approval. The
    Client Leadership Guide will be presented at the Board meeting with a view to incorporate
    any feedback provided from Board members. The Guide will then be uploaded to the NIEP
    website so that it is easily accessible.

    The guide is expected to be delivered in two parts, part one will be a quick guide which will
    act as a general overview and introduction to the main guide. The main guide will be part
    two, which will be a much fuller document and go into greater detail.

    The purpose of the presentation to the NIEP Board meeting is to test the key messages and
    challenges, and incorporate feedback into further revisions of the guide.

    2. Resource Signpost (Presentation by Alan Coole)

    On behalf of the NIEP, Mace Business School has completed the resource signpost that will
    direct clients to a consolidated database of learning and resource material. It will provide
    clients with resources to enable them to take steps towards a successful outcome, from
    assessing strategic need to in-use operation. The target audience is specifically aimed at the
    local government sector responsible for delivering projects and programmes including
    estates rationalisation, refurbishment works, new buildings, public spaces or master plans.

    The database is now “live” on the NIEP website
    ( with resources having been identified
    from 87 various learning providers and websites.

    A Marketing plan will now need to be put in place to ensure that both the Client Leadership
    Guide and Signpost are widely used and incorporated by local government. It is being
    considered that Bob White provides an article to the Construction Industry (Building
    Magazine, Construction News etc) to highlight the benefits of adopting and utilising the Client
    Leadership Guide and Resource Signposts.
3. New Client Champions
Client Leadership group is looking to create new client champions for future regional
collaboration, ideally selected initially from Clients engaged in the Wave 2 Capital & Asset
Pathfinder programme, who would also provide an opportunity to test the Client Guide.

4. Private Sector Forum (PSF)

Private Sector Forum held on 8thJune 2011 to seek views from the private sector on the
current climate and specific issues such as finance vehicles, governance structures for
Capital and Asset Pathfinders and feedback on the Government Construction Strategy. The
PSF responded that there is a perception that Frameworks do not cater for SMEs, however
that this is not correct and that work needs to be done to overcome this. In regards to the
Government Construction Strategy, it is reliant on government providing a coherent, strategic
approach to procurement to avoid constant mini competition bidding which is costly to the
private sector.

It is hoped that Andrew Smith is able to attend the next PSF (Q1 2012) to provide an update
on progress.

Workstream Outline Programme:
1. PSF Meeting                                                 TBA (Q1 2012)
2. Incorporate feedback from NIEP Board members                Complete
3. Client Leadership Guide Review                              31st March 2012
4. Signpost on website                                         Complete
5. Marketing                                                   January 2012
Workstreams Update

 Workstream 3:           Asset Management

 Lead:                   Patrick Blogg and Keith Gordon

 Date of update:         March 2012

 Workstream Meetings
 Membership of the asset management workstream has been reviewed following a number of the
 group changing roles or leaving their respective organisations. The latest workstream meeting was
 held on the 3rd February 2012 and was well attended with colleagues from West London Alliance,
 Cambridgeshire Council, London, Local Government Group (LGG), DCLG and CIPFA.

 CLG has advised that, under the asset management banner, the focus from Central Government is
 on Property and Asset Management systems, Benchmarking, Space Utilisation, FM and
 Sustainability. In support of this, the workstream is going to investigate opportunities for joint
 procurement of Asset Management systems i.e. South East 7.

 Capital & Asset Pathfinders – Wave 1 & 2
 There is an opportunity to use the NIEP’s national and regional network to distil lessons learnt from
 Wave 1 and channel best practice on asset and customer demand mapping, client leadership,
 visioning, procurement and finance vehicles. The workstream is currently in discussions with LGG
 and DCLG to agree how this may be taken forward. Part of this discussion will include the potential
 for identifying lead champions / ambassadors in specific areas such as governance, stakeholder
 engagement, mapping, benefits apportionment etc. who could be the ‘go to’ for other authorities
 wanting help or advice. This approach is supported by NIEP Client Leadership Guide, which
 promotes understanding an organisation’s capacity, identifying gaps and utilising others’ expertise
 to ‘up skill’.

 It is widely acknowledged that leadership at the highest level is essential to ensuring successful
 outcomes for pathfinders. In support of this, member engagement workshops are being arranged to
 ensure the message that integrating capital, assets and service delivery will deliver maximum
 benefits for communities.
 Stephen Jacobs from LGG is leading the Wave 2 pathfinders with a small support team from Local
 Partnerships, DCLG, NIEP and CIPFA. Economic regeneration is one of the most significant issues
 for the Wave 2 pathfinders. There are a total of 15 new pathfinders who are due to submit business
 cases by mid March 2012. It has been noted that there has been great peer to peer support within
 wave 2.

 It has been agreed that there are three key steps to driving the Capital & Asset Pathfinders forward:
      Campaign – Ensure the teams are communicating with those Authorities which are not
         actively involved.
      Maintain Relationships – Continue relationships with the key alumni from Wave 1.
      Capital Asset rationalisation assisting economic growth – Encourage Councils to use their
         Assets to promote economic growth.
Government Construction Strategy – FM/Soft Landings Task Group

The Cabinet Office provided an update from the FM/Soft Landings Task Group reporting that they
are currently reviewing the FM provision, which currently has over 4700 separate contracts with
different service providers. The intention is to launch a new contracting vehicle which splits Hard
FM, Soft FM and Catering.

There has also been a cost benchmarking exercise undertaken to review and reduce current spend,
which is currently £3.7bn per annum.

Soft Landings

A presentation was given on 5th December 2011 on EII Court outlining the steps taken during
planning, procurement and post occupation to incorporate the Soft Landing process and its on
going development within Hampshire County Council. The feed-back was that the group is keen to
adopt the recommendations contained within HCC’s Soft Landing Green Guide. The next step
proposed is the mandating of the Soft Landings via the Gateway process.

The FM/Soft Landings team are looking to take their recommendation to the Government
Construction Strategy board in September – including their alignment with BIM.

FM Guide (Presentation by Patrick Blogg & Martin Forbes)
CIPFA were jointly commissioned by the NIEP and the West Midlands Property Alliance to prepare
the FM Guide and deliver a detailed web-based guide. CIPFA have now completed the FM guide
which is now available on online: ( and is due to be migrated to the
NIEP website. The guide invites users to question how they deliver their FM services and how it
might be improved both in quality, and to provide greater value for money. Below is an image of
how the FM guide is presented online.
A link to this guide is now available on the NIEP website.

A communications plan is being drafted to outline a strategy for promoting the FM Guide and to
ensure it reaches the target audience. It is suggested that Andrew Smith would send an e-mail out
that would launch the guide to the NIEP.

Community of Practice (CoP) – facilitation of the CoP is ongoing and may be expanded to include
other workstreams such as the South East 7 Asset Management Group. The CoP is supported on
the Efficiency Exchange platform and is now migrated to the new Knowledge Hub .The Knowledge
Hub will become a focal point for information for the pathfinders. Chris Carey has now taken over
the role of NIEP facilitator of the CoP/Knowledge Hub.

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