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Publication - Independent report

Review of Scottish public sector procurement in construction

Published
22 October 2013
Topic
Economy
ISBN
9781782569930

Report of the independent review of procurement in construction carried out by Robin Crawford and Ken Lewandowski.

View supporting documents Supporting documents

Appendix 4 - Implementation plan

The following implementation plan brings together the recommendations from the main body of the report and outlines some of the measures that will be required to ensure they are implemented successfully. Lead responsibilities have not been allocated here - this is one of the first tasks that the strengthened construction procurement policy function needs to undertake, in collaboration with others - but it should be noted that in line with our consultative approach to this review, only a collaborative approach from across the public sector and industry will ensure the best solutions are developed and maximum impact achieved. Timelines have been suggested for the various actions to be taken forward, but are based on appropriate resources being assigned to the implementation phase. The numbering relates to the section in the main report in which the recommendation is found.

4. Governance, accountability and leadership

Section Recommendation Implementation measures Timeline
4.2 The construction procurement policy function within the Scottish Government should be strengthened This policy function should be established under the clear control of a senior manager within the Scottish Government.

Work to more fully scope out the role should begin immediately.

Where possible existing resources within SG should immediately begin to form the basis of the strengthened policy function

Some additional recruitment is likely to be necessary
It should be suitably resourced to set the policy for construction procurement in Scotland, to be a central resource for advice, and to drive the adoption of best practice across the public sector.
Although we recommend that this capability and capacity should be strengthened within the Scottish Government, and it is clearly appropriate that government retains responsibility for developing policy, we recognise the delivery expertise which has been built up across the public sector, and as such, it may be appropriate for Scottish Ministers to commission work to support policy development from those other bodies with proven expertise.
All parties will need to ensure that they work closely and in co-operation with each other to ensure that their activities and functions are complementary and co-ordinated, under the auspices of the Public Procurement Reform Programme. There must be no duplication of effort and there is no room for "turf wars".
4.3 As a matter of priority, the strengthened construction procurement policy function within the Scottish Government should, in collaboration with other bodies key to the implementation of our recommendations, determine lead responsibility for delivering each recommendation Officials from the Scottish Government and other key partners should determine the most effective and appropriate allocation of tasks, taking skills, resources and responsibilities into account As a matter of priority
4.4 A Chief Construction Adviser (CCA) should be directly appointed by the Scottish Government The Chief Construction Adviser's role would be to:
  • Champion the implementation of this report by challenging both the public sector and industry on pace and progress
  • Challenge industry to modernise and innovate its processes, practices and relationships
  • Be a supportive, enabling, but challenging partner of the Scottish Government
  • Be a conduit for industry to raise concerns with or approach ministers
The CCA should become a member of the Public Procurement Reform Board		 The Chief Construction Adviser should be appointed from the start of the 2014-15 financial year.
This is likely to be a fixed-term appointment which is capable of being refreshed and reviewed.
The appointee should be directly accountable to and have direct access to Ministers.
While the individual should have expertise in construction and procurement, leadership strengths are likely to be equally crucial.
4.5 A mechanism should be established under the existing Public Procurement Reform Programme to bring together key stakeholders to drive the procurement reform agenda as it relates to construction To provide a strategic forum for discussion of implementation issues. Should meet to agree outline programme of work by the end of March 2014.
Led by the Chief Construction Advisor (or by some other independent figure with strong experience in construction or procurement and credibility with industry and the public sector, until such time as the CCA is appointed). Secretariat support should be provided by the Scottish Government.
Representation should be drawn from leadership levels across both the construction-procuring parts of the public sector and industry (clearly some commercially sensitive agenda items may need to be discussed with only the public sector representatives present).
The focus should very much be on the strategic, rather than the operational.
The grouping should report in to the Public Procurement Reform Board (PPRB).

5. Prioritisation and co-ordination of spending

Section Recommendation Implementation measures Timeline
5.2 There should be a review of the methods of strategic prioritisation and co-ordination of construction spending across the public sector in Scotland - to identify best practice and to ensure that investment decisions are informed by the use of appropriate techniques. The IIB should instruct investigation of the different methods of project prioritisation used by public bodies to identify best practice including the use of economic appraisal tools. COSLA and SOLACE should determine the scope for introducing equivalent best practice recommendations to councils. By June 2014
5.3 Each public body should publish annually a rolling pipeline plan of anticipated spending on construction, setting out detailed known information on timescales for pre and post-contract award including any planned phasing, the anticipated approach to market, the status of required consents, the funding model being used and whether formally approved by their governing body. These pipeline plans should be collated and held centrally, and should initially contain all anticipated work above a value of £4 million over the next two years, with a clear plan put in place to extend this to cover at least work worth £2 million or more, and a timeframe of at least three years. Initial work will be required to develop guidance on formatting and to develop a system to be able to store this information. By the summer of 2014
Provisions within the Procurement Reform Bill could be used to require contracting authorities to submit their pipeline information for anticipated work with a value in excess of £4 million which is to be commenced over the following two years. By 2015
A clear plan should be developed to extend this to cover at least work worth £2 million or more, and a timeframe of at least three years. Plan in place by 31 March 2015
5.4 Public sector bodies involved in construction projects should be able to demonstrate that sufficient linkages are made between them. This should include consideration of appropriate opportunities for collaboration and for synergies with other programmes of work in the planning phase of all infrastructure spend. Contracting authorities should be required to consult with each other during the planning phase of projects to determine the scope for synergies. Ongoing
5.5 Regional co-ordination of infrastructure spend should be considered by councils across Scotland. To the extent that this is not already in hand, councils should consider the potential for the strategic co-ordination of infrastructure spend and should consider the hubCo approach as well as options being explored by the Scottish Cities Alliance. Ongoing
5.6 Current Scottish Government Affordable Housing Supply programme arrangements provide for an enhanced role for local authorities in programme planning and prioritisation. Alongside Scottish Government, local authorities should therefore play a key role in helping to inform and influence procurement choices and delivery of local authority and RSL affordable housing supply in their areas as well as looking more widely at potential synergies with neighbouring authorities.

New, more effective forms of collaboration in procuring affordable housing should be piloted in a small number of areas, to build on existing good practice and learning from previous partnerships. Pilots should set realistic expectations of outcomes, and engage local authorities and RSLs effectively.

Supplementary guidance should be developed by Scottish Government Housing Supply Division covering procurement choices and delivery options which local authorities should consider for the affordable housing programmes in their areas and discuss and agree as part of the SLP process.

 Ongoing

6. Approach to Market

Section Recommendation Implementation measures Timeline
6.2 Design and whole life costing should be afforded appropriate priority in any construction procurement process. A comprehensive business case and procurement strategy focusing on desired outcomes and whole-life costs should be developed. This will require the earliest possible engagement between clients, users, designers and contractors Guidance should be developed on pre-contract comprehensive business planning - particularly Outline Business Case and Final Business Case stages building on existing sources, such as the Scottish Construction Procurement Manual and Scottish Capital Investment Manual. By summer 2014
Each body responsible for infrastructure spending should ensure that the process starts with a proper business plan clarifying the outcomes of the project, not solely the outputs. Authorities to build into own processes by 2015
There should be early engagement among clients, users, designers and contractors and best practice guidance should be developed setting out how to do this in compliance with public procurement law building on existing sources, such as Architecture and Design Scotland, and examples from across Scotland. By summer 2014
Existing guidance on the advantages and disadvantages of using different approaches to market - such as design and build and traditional procurement should be reviewed, and updated as necessary.
Further guidance should be developed and implemented on the measurement of whole life cost in construction projects. By the end of 2014
Measurement of this should be built into Procurement Capability Assessments. In time for the 2015 round of assessments
6.3 Guidance on best practice in the use of framework agreements should always be followed, in particular in allowing opportunities for SMEs to participate.

Best practice guidance should be developed building on existing guidance on the use of frameworks (such as SPPN5/2010), tailoring it to a construction setting. This should ensure that frameworks do not discriminate against Scottish SMEs.

This guidance should specifically consider the issue of aggregating smaller contracts into larger lots which can be appropriate to achieve economies of scale, access to finance and other objectives, but which may reduce opportunities for participation of SMEs.

 Initial guidance to be developed by 31 March 2014
That guidance should reflect that whilst economic impact cannot currently be used as a contract award criterion, it should be a key consideration in developing procurement strategies - particularly in remote and rural communities.
Guidance should be adopted by contracting authorities. By the end of 2014
Measurement of this should be built into Procurement Capability Assessments. Built into PCAs in time for the 2015 round of assessments
6.3 When used inappropriately, UK-wide frameworks and frameworks negotiated by regional purchasing bodies elsewhere in the UK can have the effect of preventing SMEs from participating in public procurement. Guidance should be developed and implemented on the appropriate use of such frameworks. This guidance should pay particular heed to the value of growing local the the the effect of preventing SMEs from participating in public procurement. Guidance should be developed and implemented on the appropriate use of such frameworks. This guidance should pay particular heed to the value of growing local economies. Guidance should set out the sorts of issues which organisations should consider before deciding to use a UK-wide framework agreement - including the potential impact on Scottish and local economies. Initial guidance to be developed by 31 March 2014
By summer 2014
As part of the PCA process, organisations should demonstrate that they have undertaken due consideration before entering into any new such arrangements. Built into PCAs in time for the 2015 round of assessments
6.4 Further guidelines about certain aspects of the operation of the hubCo model should be developed. The guidelines should include:
  • Continuation of the work to develop a solution to the issue of the delay in payment of design fees until financial close.
  • Consideration of expanding existing arrangements for monitoring performance, the achievement of value for money and the continued compliance with the terms of the original contract advertisement.
  • The appropriate exchange of information between hubCos to reinforce best practice and share ideas.
  • Consideration of the desirability of setting minimum contract values to be delivered by hubCos.
 By 31 March 2014
6.5 The potential for savings to be delivered from clients enforcing the 'self‑delivery' of contracts by main contractors should be investigated, with particular reference to the work being undertaken by Scottish Water.

Savings reported by Scottish Water should be monitored with a view to exploring opportunities to adopt a similar approach where appropriate.

Information on existing levels of self-delivery across all sectors to be gathered.

 Ongoing
6.6 Developments in the UK Government's trials of its three 'new methods' of procurement should be monitored, and guidance developed for their use in Scotland, if appropriate.

Progress of UK trials to be monitored.

Data gathered on the outcomes of any use of these methods in Scotland.

 Ongoing
6.7 Thorough consideration of options must be applied to contract selection as part of the pre‑commercial stage. An up-to-date comparison matrix of the various existing contract types should be developed (building on existing guidance) to assist clients to select a contractual approach. This would sit as part of the development of a construction procurement journey tool. Initial guidance to be developed by summer 2014
Support should be offered for contractual decisions, making clear that ownership of risk and decision-making will still rest with the individual contracting authority.
The feasibility and potential benefits of integrating this approach within PCS Tender to allow the type of contract used to be recorded, and lessons to be shared between organisations should be examined. By the end of 2014
Contracting authorities should consider how well their selected contract type has delivered for them both at project completion and post-occupancy evaluation stages. Any learnings should be applied to future contracts. Ongoing
6.7 There must be an open, mature and reasonable discussion between parties when deciding on the allocation of risk. Guidance on appropriate risk allocation to be developed. By the end of 2014
6.7 Any variations to standard forms of contract should be kept to a minimum and used only when absolutely necessary to take account of the particular r circumstances of the project. We also recommend that any such amendments should be clearly highlighted within contract documentation so that client and contractor are clear on the variations being imposed to the standard terms. All public bodies should clearly highlight or attach as an addendum any standard conditions which have been varied or additional clauses added, to ensure clarity and reduce conflicts with standard clauses. By summer 2014
Measurement of this should be built into Procurement Capability Assessments. Built into PCAs in time for the 2015 round of assessments
6.7 Specific guidance should be developed to help contracting authorities to decide when and how to use painshare / gainshare arrangements. Guidance on the use of painshare / gainshare to be developed. By the end of 2014
6.8 All public bodies should adopt a maximum 30 day payment term to their suppliers, as detailed in Scottish Procurement Policy Note 08/2009, and this should form the target against which performance in meeting payment terms is monitored as part of procurement capability assessments (unless shorter targets have already been adopted by the organisation in question). Performance in meeting these terms should be reported and measured as part of the PCA process. By summer 2014
6.8 The use of Project Bank Accounts should trialled in Scotland. A trial should be co-ordinated by the Scottish Government. The trial should be reviewed and assess the potential for the wider application of PBAs. Trial(s) to be arranged by the end of 2013-14 financial year
Accompanying guidance, updated as lessons are learned should be published. Potential for wider application to be considered by the end of 2014.
6.8 Public sector clients need to ensure that there is a clear understanding between those involved in pre-contract award stage and those involved in delivery on the public sector requirement for fair payment. Contractual terms between client and main contractor should consistently outline fair payment terms for supply chain participants. Clients should ensure that appropriate resources are allocated to contract management and enforcement of terms and conditions of contract. Guidance should be issued to public sector clients on the need to ensure that there is a clear understanding amongst those involved in the pre-contract stage of the public sector requirement for fair payment and alter procedures as necessary to ensure that contracts require fair payment down the supply chain. By 30 June 2014.

That guidance should be adopted by all contracting authorities.

Appropriate resources should be allocated to contract management by contracting authorities.

Alternative ways of ensuring that contract terms are complied with should be sought - such as asking contractors to file quarterly reports on their supply chain payment performance.

 By 2015
Measurement of this should be built into the PCA process. In time for the 2015 PCA assessments
6.9 Cash retentions should be used only after careful consideration by contracting authorities, and not as a default measure. Whilst contracting authorities have a duty to safeguard public funds, they should also be mindful of the potentially detrimental effects of cash retentions on their contractors. Greater guidance should be developed to help contracting authorities to determine when and how they should use cash retentions and other project assurance tools in an appropriate and proportionate manner. Guidance should be developed and built in to the Procurement Capability Assessment process. By summer 2014
6.9 Lessons should be sought from the trial of project bank accounts in Scotland about how PBAs, or other, similar trust accounts might be used to administer cash retentions. Project bank account trials to be monitored and their wider applicability, or the use of trust funds for cash retentions explored. Follows trial of project bank accounts
6.9 A consistent approach to project assurance should be used for all major construction projects. Gateway reviews should be the benchmark against which other models should be tested. Guidance to be developed covering project assurance tools and building on existing work. By summer 2014

7. Capability and capacity

Section Recommendation Implementation measures Timeline
7.2 Public sector bodies involved in construction procurement must have access to the right mix of professional procurement and construction expertise to ensure that infrastructure is procured effectively. It may not be appropriate for each organisation to retain this expertise on a permanent basis. It may instead be achieved through collaboration with other bodies - either on a project-by-project, or a longer-term basis. Guidance on the necessary blend of required skills should be developed. By summer of 2014
Procuring authorities should confirm that they have assessed their capability against these guidelines and that they have the capability and capacity to carry out construction procurement or outline the alternative collaborative arrangements through which they plan to achieve this capability. Built into PCAs in time for the 2015 round of assessments
7.2 The existing PCA framework should be developed to ensure that it adequately assesses, reports on and helps to improve organisations' ability to procure publicly funded construction. Those carrying out the assessments should be suitably qualified to do so and all organisations procuring construction projects with public funding should undergo procurement capability assessments. The PCA should be developed to deal appropriately with construction procurement In time for the 2015 round of assessments
Construction-specific elements should be separately recorded as part of the PCA reporting process
Those carrying out the construction procurement part of the assessments should be suitably qualified to do so.
All organisations procuring construction projects with public funding should undergo assessment of their procurement capability. For those not currently subject to PCAs, systems for implementing the process will have to be agreed with parties involved.
7.2

A current and required baseline of skills in construction procurement should be established.

A strategy should be developed to ensure those needs are met through both formal learning and mentoring, building as appropriate on the Scottish procurement competency framework.

Consideration should be given as to whether a structured approach to delivering appropriate learning - such as a Skills Academy approach (virtual or otherwise), would deliver some or all of the required benefits.

 The existing skills base should be determined, as well as future requirements. Full strategy to be agreed by the end of 2014
Consideration should be given to creating a skills academy ("virtual" or "real").
Consideration should be given to creating a cross-sector "mentoring-pool", or community of best practice.
Guidance and expertise should be sought from academia and the relevant professional bodies in implementing these recommendations.
7.3 New standardised guidelines setting out best practice on the end‑to‑end construction procurement process should be developed and maintained. As far as possible, the guidelines should be written in plain English and should be in an accessible digitised form based on the example of the procurement "Journey" for goods and services. The guidelines should be capable of being used in a proportionate way for projects of different sizes and risk profiles as well as being adaptable for different sectors. The Scottish Construction Procurement Manual should be reviewed, updated and published in a more user-friendly form, akin to the Procurement Journey. By summer 2014.
The guidelines should be in a digital format which can be accessed in a way which is proportionate to the size of the contract.
As far as possible, the guidelines should be written in plain English.
The guidance should be maintained on an ongoing basis. Ongoing
7.3 Good practice guidance on those elements of bids which should and shouldn't be scored and on the focus to be given on quality and whole life costing in the scoring should be developed. By the summer of 2014
7.3 Public bodies should rightly seek to re-assure themselves of the competence and skills of bidders. This, however, should be done through asking for appropriate experience - as indeed is Scottish Government policy - rather than necessarily asking for exact experience of similar project delivery within a short number of years (for example "supply three examples of community halls which you have built in the last five years"). Guidance should be developed covering the issues which public sector clients should consider when determining how to measure skills and experience. This should balance the need to ensure the competence of bidders with the risk of disadvantaging local firms, reducing competition, and damaging the industry. By the summer of 2014
This guidance should be adopted by all contracting authorities. By 2015
As part of the PCA process, organisations should demonstrate their due consideration of these concerns. Built into PCAs in time for the 2015 round of assessments
7.3 The ability of a company to deliver a contract should not solely be measured by the use of turnover thresholds. Where annual turnover is part of financial criteria it should be limited to no more than two times the annual contract value as outlined in the EU commission's proposal. Further guidance should be developed on other valid and proportionate methods for assessing financial strength and risk. Further guidance should be developed on other valid and proportionate methods for assessing financial strength and risk. By summer of 2014
This guidance should be adopted by contracting authorities. By 2015
As part of the PCA process, organisations should demonstrate that they have undertaken due consideration of this guidance. Built into PCAs in time for the 2015 round of assessments
7.3 To the extent possible within the full scope of the law, including as may be amended by the new EU Procurement Directive and Procurement Reform Bill, contracting authorities should take the prior performance and behaviour of bidders into account when awarding contracts. Guidance which ensures compliance with legislation should be developed. Guidance should be developed on this which ensures compliance with developing EU and other legislation. By the end of 2014
This guidance should be adopted by contracting authorities. By 2015
7.3 The Scottish Government should reissue its existing guidance to the public sector on how to deal with abnormally low tenders. Guidance should be reviewed, revised (if required) and reissued. By the summer of 2014
7.3 Guidance should be developed which assists contracting authorities to carry out successful pre-market engagement as part of a construction project. Guidance should be reviewed, revised (if required) and reissued. By the summer of 2014
7.3 Contracting authorities should always make feedback available to both successful and unsuccessful bidders at PQQ and ITT stage. Feedback should be timely, and a model of good practice building on existing sources, such as `the Scottish Suppliers' Charter, and legislative requirements, should be developed. A model of good practice should be developed, which builds on existing best practice. By summer of 2014
This guidance should be adopted by contracting authorities. By the end of 2014
This should be measured as part of the PCA process. Built into PCAs in time for the 2015 assessments
7.3 If not already established, public sector procuring authorities should work together to develop forums with locally-operating construction firms which would meet on a regular basis and include economic development teams and construction procurement staff to discuss the pipeline of work, issues and opportunities, with a view to building greater understanding, transparency and improved processes and practice. More suited to those authorities which are either based in, or have a substantial programme of work in a given area. By autumn 2014
May exist already in some areas.
Should bring locally-operating industry together with economic development teams and construction procurement staff.
Will allow industry to feedback on current capacity, skills and opportunities.
Measurement of this should be built into Procurement Capability Assessments. Built into PCAs in time for the 2015 round of assessments
7.3 A formal support mechanism should be developed to help SMEs understand how to compete for public contracts. The identification of gaps in SME knowledge should be established and linkages made to existing training programmes as well as development of new training and support mechanisms. By the end of 2014
7.3. Practice should be standardised by making the use of Public Contracts Scotland mandatory when advertising publicly-funded construction contracts. Measurement of this should be built into Procurement Capability Assessments. In time for the 2015 round of assessments
7.3. Contractors on major projects should be encouraged to advertise sub-contracts on PCS where they have not already fully identified their supply chain Existing guidance should be reviewed and, if necessary, enhanced. Guidance to be reviewed by 31 March 2014
7.3. Product categorisations used on PCS should be reviewed to ensure that they are as accurate as possible for construction projects. Work to be done to ensure a sufficiently granular identification of the actual business activity of potential suppliers and sub-contractors. By the end of 2014.
7.3 SPCD should assess the current performance of the PCS systems through user feedback to ensure high standards are being achieved and are capable of being maintained following adoption of wider usage. User feedback should be sought in a structured way. Ongoing
7.3 Additional guidance for the public sector should be developed to ensure that the standard PQQ is used in a way which is proportionate and relevant to the needs of construction procurement and monitor practices to ensure that this principle is achieved. The standard PQQ should continue to be refined and, where a pre-qualification stage is being used, its use should be mandated.

The standard PQQ should continue to be refined and its use monitored with a view to maximising uptake.

The use of the standard PQQ should be monitored to ensure it is proportionate.

 Ongoing
SPCD along with bodies such as RIAS and RICS should work collaboratively to develop consultancy / specialist services suites of standard questions for the standard PQQ. Other requests for specialist suites of questions should also be considered and assessed by SPCD as they arise. Collaboration on standard question sets should be instigated. By the end of 2014
7.3 The use of Quick Quote should become the norm for works contracts worth less than £500,000, and public bodies should consider using Quick Quote for awarding construction-related contracts worth less than the proposed thresholds in the Procurement Reform Bill (£2 million for works and £50,000 for supplies and services). Guidance should be developed on what factors authorities need to take into account when deciding whether to use Quick Quote at a higher level. Guidance to be reviewed by the summer of 2014.
When using Quick Quote, public bodies should be able to demonstrate a clear audit trail to contract award, to ensure transparency and accountability. Contracting authorities to consider their internal procedures and amend as necessary. By the end of 2014.
7.3 The use of PCS Tender should be mandatory for creating ITTs, using standard question sets as the basis, and submitting tender returns - whether individual contracts or frameworks. Work should be done to ensure appropriate training is provided to allow each authority to be confident at using PCS Tender. By summer 2014

8. Sustainable procurement, innovation and emerging technologies

Section Recommendation Implementation measures Timeline
8.2 Good, detailed, community benefits guidance exists currently on the Scottish Government website, but it is lengthy and should be reviewed and integrated within a wider Construction Procurement Journey. This guidance should include:
8.2 The requirement that contracting authorities should have a clear strategic understanding of what they want community benefits to deliver through their public procurement for the sustainability of the Scottish and local economy and the community within which the project is being delivered. The public body should set out its strategic objective and ask the contractor to set out in its tender how it will meet that objective. Existing guidance should be reviewed and, if necessary, enhanced to fully cover construction. By the summer of 2014
This guidance should be adopted by contracting authorities. By the end of 2014
As part of the PCA process, organisations should demonstrate that they have undertaken due consideration of this guidance. Built into PCAs in time for the 2015 round of assessments
8.2 Guidance to contractors to help them to design and deliver appropriate community benefits. Tools should be developed for designing and assessing community benefit clauses which are appropriate and proportionate. By the summer of 2014
8.2 Guidance to contracting authorities to assist an open consideration of community benefit proposals at ITT stage. Tools should be developed for designing and assessing community benefit clauses which are appropriate and proportionate. By the summer of 2014
8.2 The promotion of continuity and completion of apprenticeships. One means of doing this may be through encouraging the public sector and industry to work together to develop a shared apprenticeship model that refocuses the emphasis on the completion of apprenticeships and the practicability of such models should be investigated. Guidance should be developed on the best means of using community benefit clauses to promote the continuity of employment of apprentices. By the summer of 2014
The practicability of shared apprenticeship models should be explored and guidance developed. This should be done in conjunction with Skills Development Scotland who are being charged by the Scottish Government with responsibility for developing pilot models. Reference should be made to the principles set out in the Homes for Scotland scoping report prepared by Glasgow University and published in March 2013.
8.2 Monitoring by public sector clients of performance in relation to community benefits delivery, and use of that performance monitoring information as part of overall performance assessment for future contracts whether through frameworks or open processes. This could be done as part of a suite of KPIs. Guidance to be developed on best practice in monitoring performance on community benefit clauses. By the summer of 2014
Guidance to be developed on how performance on community benefits can be taken into account in future contracts within the bounds of EU law.
8.5 The Scottish Government should build on some good work by RSLs and others by better incentivising greener construction and promoting modern methods of construction and providing better advice and guidance on renewables technologies. Guidance should be developed and good practice examples identified By 31 March 2015
The scope for further incentives through the Scottish Government's funding for the affordable housing supply programme should be examined
8.5 Construction guidance should be aligned to the wider sustainable procurement agenda in recognition of the potential for construction to demonstrate the benefits of good procurement and should take account of the findings of the Sullivan panel when they are published. Cross-sectoral progress should be reflected in the guidance. Ongoing
8.5 The Scottish Government should promote a more coherent joined up approach to sustainability for public sector construction. Better linkages should be made across Scottish Government to ensure better connections and knowledge sharing. Ongoing
8.6 The use of Building Information Modelling (BIM) should be introduced in central government with a view to encouraging its adoption across the entire public sector. The objective should be that, where appropriate, construction projects across the public sector in Scotland adopts a BIM level 2 approach by April 2017. Resources should be identified and a programme plan for Scottish BIM implementation by 2017 established. By 31 March 2014
When deciding if BIM will add value to a project public sector clients should undertake an assessment of the likely return on investment from its use. Ongoing
Guidelines and advice on the use of BIM should be developed. By the summer of 2014
Suitable trial projects should be identified ahead of the 2017 target date and their management co-ordinated centrally. By the end of 2014
Baseline information should be established to allow proper evaluation of the impact of BIM implementation.

9. Data as an enabler of reform

Section Recommendation Implementation measures Timeline
9.5 Action should be taken to ensure robust systems are in place to track all spending on construction by public authorities such that a complete analysis of annual public sector construction spend in Scotland can be easily available. If necessary, the capability of systems to capture and report this information should be developed, and guidance issued to those contracting authorities who do not currently share data Before 31 March 2014 to allow the spend for 2014-15 to be captured
Authorities procuring construction spend should submit the detail of their spend to a central system. To be gathered initially for the year ending 31 March 2015
9.5 Sectoral records of project outturn costs, including what they were estimated to cost at business plan and contract award stages and actual cost on completion, should be developed and maintained so as to provide meaningful benchmark figures for the public sector in Scotland. These records should also record timescales and quality measures to enable a true assessment of performance delivery to be made. It will initially be necessary to specify precisely what costs are to be recorded and how they are to be recorded in order that the benchmark information can allow valid comparisons to be made on the same basis and to develop guidelines for the submission of costs. By 30 September 2014
All authorities should submit benchmark information in the standard agreed format. Commencing 31 March 2015
9.5 Guidance should be developed on robust management information requirements and should cover baseline data, benchmarks, metrics and KPIs. Guidance to be developed to assist the collation of a comprehensive data set. By summer 2014
9.5 Project evaluation should be promoted and should build on the Learning Lessons Approach. Links to be made with the Learning Lessons programme of work. By summer 2014

10. What the industry needs to do

Section Recommendation Implementation measures Timeline
10.2 The Chief Construction Adviser should hold talks with the Industry Leadership Group and with other trade and professional bodies and representative institutions to agree on how the industry should co-ordinate its efforts Meaningful dialogue with industry to take place to ensure strong representation and participation. By 30 June 2014
10.3

The Fair Payment Charter should be promoted more widely as the "norm" within the construction industry. The industry should consider how it can collectively make late payment of suppliers an unacceptable practice

When the public sector adopts good practice - such as might relate for example to the appropriate use of retentions, requirements for insurance or the use without alteration of appropriate standard forms of contract - industry should replicate this throughout the supply chain.

 The Industry Leadership Group should work with the Public Procurement Reform Board to co-ordinate the drive to change the culture of late payment within the industry. Industry Leadership Group guidance and plan issued by 30 June 2014




Ongoing
10.4 The industry should consider what is prompting 'suicide bids', and how to arrest them, so that both the customer and the contractor get a fair deal. We have suggested that the Scottish Government should re-issue guidance by the summer of 2014 on how to deal with abnormally low bids. The Industry Leadership Group should consider these guidelines and seek to agree its own guidelines for the industry within the limits of the laws relating to anti-competitive behaviour. By the end of 2014
10.5 Industry should use existing sources of guidance and work with the public sector to develop best practice models for the delivery of community benefits, and a shared apprenticeship model. Industry to develop. By 30 September 2014
10.5 The industry needs to be ready to embrace modern methods of construction, and new and emerging technologies such as Building Information Modelling. Industry to consider. By 30 September 2014
10.5 The industry should consider what industry-led training programmes currently exist for those bidding for public sector work, and whether there is scope for these to be co‑ordinated and developed further. Industry to consider. By 30 September 2014

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