At our January Procurement Group we were joined by two of the 2024 value winners:
Both projects were truly inspiring and backed up the theory behind the Value Toolkit that collaboration and focussing on outcomes can deliver great results!
Contracts & Culture
Both projects identified creating a collaborative culture and a good relationship with the client as being critical to success.
HMP High Down was procured using a PPC2000 form of contract. The trust that is intrinsic within this contract enabled the contractor to commence early works before full design was completed – accelerating the programme overall. The project wasn’t without it’s issues and ultimately project success relies on a good working relationship with the project manager and the prison governor to unlock all of the issues.
The Skylon project was delivered under a standard JCT form of contract. The client was new and didn’t have rigid structures and processes in place so was open to flexibility. The contractor had extensive experience on working on collaborative Integrated Project Insurance projects and brought that collaborative, best for project mindset to the project. The no-blame, solutions-focussed approach paid dividends.
Focussing on Outcomes
The right mindset and a focus on the client’s overall objectives was a key factor in delivering better outcomes in both projects.
On the Skylon project the collaborative approach and early supply chain involvement made the budget go much further. The team were able to create extra space and through bringing two buildings into one reducing the amount of service spaces required and delivering efficiencies. Moreover through a robust approach to delivering social value and using a local supply chain (80% of project spend was within 30 miles) the project was able to deliver significant social value legacy (£11 million)
On HMP High Down a key success for the client (Ministry of Justice) is reduction in re-offending – this has huge societal impact as well as saving the £100-150,000 per year cost of incarcerating someone. Providing job opportunities to prisoners not only attracted workforce to a difficult to access environment, it created training opportunities, work experience and future job opportunities for inmates. There was initial reticence amongst the supply chain to this approach but a change in mindset enabled them to see the benefits, resulting in the contractor, Morgan Sindall and their supply chain employing some of the workers in high value jobs on their release.
Both projects emphasised the need for trust and openness to unlock value. However a word of caution, it can be difficult for staff to go back to standard ways of working when they have worked collaboratively. The return to an adversarial culture can have a huge impact on mental health.
The CE Procurement Group champions better ways of procuring and setting projects up for success. These projects demonstrate that collaborative procurement approaches deliver greater value for the client and better experiences for the people delivering the projects.