Collaborative procurement practices need to demonstrate benefits for public and private sector Clients and their teams in terms of improved value. Sustainable collaborative procurement models also need to balance cost savings with other improvements in economic value and with improvements in social and environmental value. For these purposes, team members should agree how they define value, what improvements they expect and how these improvements will be delivered.
The ISO 44001 implementation guide 'addresses the creation of value concept' and explains that organisations should 'identify external and internal issues and the needs and expectations of ... stakeholders and how value is delivered to them'. The ways of delivering value should also be set out in agreed processes, contributions and deadlines that are supported by contractual commitments.
Key points - Section 11: What improved economic, social and environmental value can collaborative procurement achieve? ■ Assess and agree how collaborative procurement systems demonstrate improved value for the Client (11.1) ■ Assess and agree how collaborative procurement systems demonstrate improved value for Principal Designers, Principal Contractors and all other consultants, contractors, sub-contractors and other supply chain members (11.2) ■ Assess proposals for improved cost certainty and cost savings where these do not compromise safety or quality (11.3) ■ Assess the benefits of proposals for other improved economic value such as improved performance and extended warranties where these do not compromise safety or quality (11.4) ■ Assess the benefits of proposals for improved social value where these do not compromise safety or quality (11.5) ■ Assess the benefits of proposals for improved environmental value where these do not compromise safety or quality (11.6). |
ISO 44001 suggests that collaboration should demonstrate improved value in terms of:
■ 'Delivery performance and outputs
■ Improved risk profile
■ Continued alignment of objectives
■ Behaviour and trust
■ Enhanced collaborative profile/skills
■ Additional value created
■ Issue management'.
When seeking improved value, ISO 44001 proposes that a collaborative team needs to:
■ 'Define what 'value' means to the collaborative partners
■ Provide a mechanism for the capture of innovation and ideas for improvement
■ Provide a method for performing analysis and evaluation of ideas and innovations against relevant criteria...
■ Establish a method for reviewing the success or failure of value creation initiatives and record lessons learned for future use'.
Over the period from 2013 to 2018 Constructing Excellence led the collection of evidence through detailed analysis of Trial Projects by reference to HM Treasury benchmarks, which showed how the teams working on these projects agreed and delivered significant improvements in economic, social and environmental value. Evidence collected from the Trial Projects demonstrated:
■ Improved safety
■ Improved quality
■ Improved cost certainty and cost savings
■ Improved supply chain relationships
■ New local and regional opportunities
■ Improved training and employment outputs
■ Reduced impact on the environment.