2.18 Authorities should not seek to extend an existing contract if the procurement falls behind timetable. Contract extensions are poor procurement practice and risk being poor value for money. The parties should, instead, start early, keep to the timetable, and ensure that sufficient time is allowed for each stage of the process. The parties may, if necessary, agree an interim solution to service provision should it prove impossible for any reason to meet the agreed timetable. Such a solution may mean that the current service provider agrees to continue to provide services at an agreed price for a determined period of time
Box 2.4 An Indicative Benchmarking Timetable in an Accommodation Project | |||
| Activity | Weeks until benchmark date |
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| Internal planning meeting to agree resource | 40 |
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| First meeting with Project Company to discuss timetable | 38 |
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| Further meetings with Project Company as required | 38 - 22 |
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| Review specifications and agree changes | 38 - 26 |
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| Competition for advisors | 38 - 26 |
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| Appoint and brief advisors | 30 - 22 |
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| Project Company submit first proposals | 30 - 14 |
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| Meeting to clarify and negotiate | 28 - 4 |
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| Agree new costs | 12 - 1 |
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| Amend contracts and introduce new prices | 0 |
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Box 2.5 An Indicative Market Testing Timetable in a Hospital Project | ||||
| Phase | Activity | Months until market test date |
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| Preparatory | Update service specification to reflect current levels Include service variations and material specification 'creeps' Review movements in service economics and expectations of outcome with client Identify service activity, staff transfer and specification information for provision by incumbent service provider | 24 - 12 |
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| Confirm key requirements | Change to service specification Service groupings to be required Core and variant bids Client Human Resources for retention of employment staff Short listing and selection process Evaluation process Procedure should too few bidders compete Timetable for market making process Mechanism for adjustment of unitary payment Confirm PFI collateral agreements that new provider will need to accept in addition to service contract | 24 - 12 |
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| Pre-qualification | Advertise pre-qualification Send out pre qualification questionnaire Pre-qualification questionnaires submission date Evaluate and announce shortlist | 18 - 19 |
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| Finalise tender specification | Client sign - off to finalised tender specification and build tender document pack | 18 - 19 |
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| Tender | Send invitation to tender to short listed bidders Tender submission deadline Tender evaluation Announcement of preferred provider | 12 - 6 |
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| Mobilisation | Financial Close Commence staff transfer minimum of 90 days before commencement Service handover / commencement Contract market test date Adjust unitary payment to reflect new service | 9 - 0 9 - 0
0 +1 |
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