2.  COMMON PROCUREMENT ROUTES

The most common range of procurement routes for non PPP / PFI projects are detailed in Figure 1 below:

Figure 1: Procurement Processes for Construction Projects

Procurement Process

Characteristics

Traditional

Full design and fixed scope of work prior to the tender of a firm price sum by a contractor using a bill of quantities, pricing schedule or similar. Design team are usually appointed to the NHSScotland Health Board or organisation. Usually administered under a SBCC / JCT standard for of building contract.

Design, Develop & Construct

Outline design prior to the tender of a firm price sum by a contactor who completed the detailed technical design. Design is a competitive element within the tender and the firm price is not the only evaluation criteria.

Management Contracting

Tender by a contractor for a fee to manage work to be undertaken by works or package contractors who enter into contract with the Management Contractor. The works or packages may include detailed technical design.

Design & Build

The client appoints a building contactor, usually on a standard form of contact to provide the completed building to agreed cost and schedule. The contractor is bidding on both cost and design, and design is a competitive element within the tender evaluation criteria. Following contract award the contractor takes on full responsibility for the design which could be at any RIBA stage depending on the level of control and prescription which the client desires over the design. This arrangement therefore transfers risk to the contractor.

Frameworks Scotland

Frameworks Scotland is a strategic and flexible partnering approach, which involves the appointment of a Principal supply chain Partner (PSCP) from a national framework, and is then responsible for the design and construction of the scheme. The PSCP can be appointed as early as necessary during the project lifecycle in order that they can provide input into the strategic stages of the project and the development of the business case. Many of the key benefits of Frameworks Scotland are obtained through this early engagement of the PSCP. The framework uses the OGC endorsed NEC3 form of contract and a Professional Services Contract framework is also in place to fulfil the Project Manager and Supervisor roles under the NEC3 contract, as well as the Cost Advisor, Healthcare Planner and CDM Co-ordinator roles. Frameworks Scotland is managed by Health Facilities Scotland.

Construction Management

Tender by a contractor for a fee to manage work to be undertaken by works or package contractors who enter into a contract with the client. Alternatively, the Construction Manager may be a member of the client's staff.

Detailed procurement route definitions and advantages / disadvantages are included within PROCODE Section 1.7 'A Best Procurement Route Guide'.

Frameworks Scotland is the preferred procurement route for significant capital investment, and it is essential that this procurement route is considered in the development of the Business Case.

In developing this section of the SCIM specific reference has been made to:

•  Construction Procurement Manual

•  PROCODE

•  Office of Government and Commerce (OGC) Gateway Reviews

•  Scottish Hospital Planning Notes and Technical Memorandums

•  Frameworks Scotland Initiative