 |
Nuneaton & Bedworth Borough Council - Building Capacity Following on from our recent appointment in the procurement of NBBC’s Kitchen & Bathroom programme, we are delighted to also support them in the re-procurement of their gas servicing contract. One of the key aspects of this commission is about ‘Building Capacity’ within the client organisation. Our approach is a ‘light touch’ solution where we provide training as we deliver the project to transfer key skills and competencies to the client team to assist them in undertaking their own procurement in the future. Capacity Building is of benefit to both client and consultant and certainly offers a more cost effective solution to many procurement projects. If you would like to talk to us about how we can help you develop your internal capability, please call Sarah on 01732 897766.
|
 |
Brunel University - Procurement of Consultants We were recently appointed to support Brunel University procure a Project Manager to manage the delivery of their prestigious new Eastern Gateway project, housing the new business school of the University. In addition, we are also assisting the University in managing the procurement and selection of consultants to deliver a wide range of construction projects on the site.
|
 |
CEDR Accredited Mediator In December 2009, Neil Thody became a CEDR accredited mediator through the Centre for Effective Dispute Resolution. As a result, we now offer alternative dispute resolution services through our new division, Cameron Solve.
|
 |
IOSH Health & Safety Linda Northridge is now an accredited member of the Institution of Occupational Health and Safety (IOSH). Not only will this be of benefit internally in terms of managing Health and Safety within the workplace, but also, Linda has expressed an interest in assisting with the compilation and evaluation of Health & Safety questionnaires – something which most of you reading will agree do not always reflect current best practice. Additionally, she will be able to offer guidance and assistance with documentation and Linda will be conducting some market testing with a variety of contractors and clients to identify what is truly important to them when evaluating and promoting Health & Safety in the workplace. If you would like to discuss anything with her, please call Linda on 01732 897766.
|
 |
Brighton Conference This years CIH South East Conference is 2nd – 4th March at the Hilton Metropole in Brighton. For those of you who experienced the frustration of the ‘chocolate pebble’ competition, I’m sure you know how difficult it has been to maintain a sense of excitement about this year’s competition! Our theme at conference this year is ‘offering traditional values with innovative solutions’ and I think when you come and see us on Stand 5, you may well just understand exactly what we mean! We have a number of passes for conference this year and if you would like one, please e-mail info@cameron-consulting.co.uk requesting a pass with your contact details and we’ll do our level best to get one to you.
|
 |
The role of the Partnering Adviser as Mediator As the use of partnering contracts and in particular, PPC2000 and TPC2005 become more mature and commonplace, it is inevitable that they will be subject to potential dispute. Indeed, the current economic climate is a potential contributory factor in testing the resolve of partnering team members, particularly around the issue of value for money. We are also experiencing tensions often exhibited by clients, where they entered into long term partnering contracts when the market was buoyant and now, where the market is more competitive, are seeking exit strategies to enable them to exploit potential cost savings by re-procuring contracts. From a contractor’s perspective, the current climate drives low margin tendering, almost reverting to the old days of compulsive competitive tendering (CCT) whereby low margin tendering resulted in a claims culture once a contract was awarded. Of course, both the client and contractor view in these scenarios go against the spirit of partnering and the long-term benefits of such arrangements. However, such culture is giving rise to potential conflict and it is here where the Partnering Adviser can help. The Construction Industry Council (CIC) in ‘A Guide to Project Team Partnering’ defined one of the key roles of the Partnering Adviser as: ‘to provide a first port of call in the event of misunderstandings or disagreements between project partnering team members’. This has been translated contractually under clause 5.6 of PPC2000 (Amended 2008) to: ‘assistance in the solving of problems and the avoidance or resolution of disputes in accordance with clause 27’ Clause 27 in itself deals with ‘Problem Solving and Dispute Avoidance or Resolution’ and in particular, uses the ‘Problem Solving Hierarchy’ as the means for escalating any dispute, most usually, firstly through the Core Group and then conciliation, adjudication, arbitration or litigation. Indeed, clause 27.4 promotes the use of alternative dispute resolution as a means of resolving a dispute if attempts at core group level are not satisfactory. (TPC2005 (Amended 2008) deals with dispute avoidance or resolution in broadly the same way as PPC2000 (Amended 2008) under Clause 14). So the role of the Partnering Adviser is to assist in resolving disputes. How about therefore if the Partnering Adviser could actually do more than merely assist, but act as Mediator? After all, the Partnering Adviser is jointly appointed by the partnering team members, is independent and is there to offer fair and constructive advice. Having some knowledge of the contract could therefore be quite helpful, though not essential in providing a facilitative role in helping partnering team members resolve their differences. Most importantly, mediation is a sustainable approach, most likely resulting in continuation of the contract and a genuine ‘win-win’ scenario for the parties. The problem is, that many Partnering Advisers tend to come from either a Construction Consultant background or as a Solicitor. Historically, Partnering Advisers may well have been involved in conflict resolution adopting traditionally methods including arbitration and litigation, appointed by one party to protect their interests no matter what and importantly, resulting in a ‘win-lose’ situation. Mediation, on the other hand offers an alternative means of dispute resolution by getting the parties to focus on ‘interests’, or in other words, ‘the bigger picture’. Therefore the Partnering Adviser acting as a Mediator requires a different set of skills. ‘Mediation is a flexible process conducted confidentially in which a neutral person actively assists parties in working towards a negotiated agreement of a dispute or difference, with the parties in ultimate control of the decision to settle and the terms of resolution.’ CEDR definition of Mediation Mediation is not an easy thing to do and increasingly, mediation is being recognised as a profession and discipline in itself with formal accreditation by the likes of CEDR (Centre for Effective Dispute Resolution). Mediation is not simply ‘getting the parties around the table’ to talk things through. Indeed, this is probably the worst approach, since the mediator will learn very little from a joint session in this type of format. In fact, mediation is a very structured approach comprising the following key stages:-
‘The great thing in this world is not so much where we stand, as in what direction we are moving.’ Oliver Wendell Holmes In most cases, the mediation itself only lasts for one day (sometimes 2 days, but rarely more). Whilst some preparation is required, mediation in itself is relatively quick. Therefore, this also means that mediation is also relatively cheap. Typically, the parties will share the cost of mediation on the basis that both parties have willingly entered into mediation. All in all, mediation is quick, cheap and most importantly, effective at resolving disputes. As a means of resolving disputes, the Civil Procedure Rules 1998 promote the use of ADR (Alternative Dispute Resolution) and views litigation as a ‘last resort’. In some countries, conflicting parties must attempt ADR before a case is brought to trial. Increasingly, mediation is being used in resolving construction disputes. PPC2000 and TPC2005 should be commended for making mediation (or conciliation) an explicit term under the Agreement, something not prevalent under other contract forms. However, the partnering team members have a lifetime of traditional attitudes to disputes and despite the fact that the contract may promote the use of mediation, it is unlikely many of them properly understand the process and in particular, appreciate the benefits of mediation. Therefore, the Partnering Adviser has a very important role to play in helping to promote an approach to dispute resolution. For those Partnering Advisers who are not trained mediators, they can recommend mediation, but for those that are, there are opportunities to support partnering team members who may be in dispute to resolve their differences and focus on the real benefits of being in a partnering agreement. Cameron Solve is a new division of Cameron Consulting offering mediation services. Neil Thody is an accredited mediator through CEDR, specialising in the resolution of construction disputes as well as being a qualified Partnering Adviser. For further information, please contact neil.thody@cameron-consulting.co.uk.
|
 |
Short Notice Inspections - Ensuring success! One of our clients recently underwent a Short Notice Inspection by the Audit Commission. It is always a relief to hear that work that has been ongoing with our clients has led to positive comment in each of the service areas assessed – indeed, inevitably through a series of well thought out processes, regular review of service improvement plans and contract reviews nothing is ‘left to chance’. Is it possible to be prepared for a Snap Inspection though? We think so – and here are some of our top tips:-
Above all, the key to short notice inspections would of course be ‘expect the unexpected’. We have worked with a number of organisations to assist them in their preparation for both Short Notice Inspections and Standard Inspections. If you would like to discuss anything raised here, please contact Karen on 01732 897766.
|
 |
Train to Gain As part of our commitment to our staff, we are always looking to develop and increase the skills and knowledge of all the people that work for us at all levels of our business. This year we worked in conjunction with Train to Gain. This has benefitted us by increasing the skill set available as well providing guidance and funding for the courses attended. What is Train to Gain? The two key areas of up skilling Cameron Consulting targeted were Project Management (Prince 2 Practitioner Consolidation) and Mediation (CEDR Centre for Effective Dispute resolution) as we know that these areas are heavily required by clients. In both cases the employees were interviewed by an adviser at Train to Gain to discuss their individual needs and how this was going to develop them personally and help the business. Train to Gain provided support regarding the training provider and a percentage of the course fees were paid for by Train to Gain. Train to Gain also provided impartial and independent advice identifying skills needs for all levels of our business. For further information on how Train to Gain could help your business go to www.traintogain.gov.uk.
|
  |
Pricing Strategies for Term Maintenance Contracts Current market intelligence tends to suggest that an increasing number of contractor organisations are switching their focus from capital to revenue based works. This is largely a result of the lack of investment in both public and private sector investment programmes caused by the current economic climate and public spending cuts, but also perhaps the recognition that revenue works can be lucrative, if managed efficiently. For clients responsible for delivering revenue based works, they are increasingly faced with reducing budgets, a deteriorating asset and scarce resources. Over the past few years, clients have focussed on selecting contractors based on ‘Best Value’ in accordance Government Policy. However, whilst selection is and should still be based on ‘Best Value’ criteria, it is also important to get the pricing right, particularly for Term Maintenance Contracts, that in most cases will be relatively long term (typically 5-10 years). Striking the balance between cost certainty, value for money, transparency and sustainability is a key concern for clients and contractors alike and therefore, getting the most appropriate price framework in place for the duration of the contract term is important. No one solution is the right solution and clients should consider their options carefully before committing to a certain type of pricing strategy. Over the next two newsletters, we will explore some of the different types of pricing strategy for delivering term maintenance contracts (of varying types), highlighting the advantages and disadvantages of each type of price framework. In this issue, we will cover the following types of pricing framework:-
Schedule of Rates - A schedule of rates (SOR) is essentially a schedule of brief descriptions of a work activity (or task) with a fixed price. Usually these are grouped by work category or component to enable them to be easily identified and used in terms of ordering a task. Each SOR will have a price which will represent the amount the contractor is paid for that task. There are variations on the SOR including pre-priced SOR’s such as the National Housing Federation SOR’s which requires contractors to mark a percentage adjustment to a pre-determined price, which will then derive the agreed price for the task. Other SOR’s may be left blank for the contractor to price under market conditions. Traditionally, the price against the SOR is deemed to include all overheads (site and office) and profit, although variations exist where these amounts are stated elsewhere. Either way, the SOR is a compounded price covering all aspects of the task (materials, labour and plant). The primary issue with using SOR’s is that they don’t always accurately reflect the task being undertaken. If a SOR is not available then the most appropriate SOR may be used which could result in over or indeed under payment. The very nature of a SOR is that the risk is primarily with the contractor who has priced it and if they get that wrong, then they could be stuck with rates that are unsustainable. On the plus side SOR’s make term maintenance contracts relatively easy to administer. The commitment to spend is known at the point of order and therefore it should be relatively easy to budget and account for. Equally, this makes it quite easy for re-charging purposes. Open Book - This approach has become more popular with the use of more modern procurement contracts such as the Term Partnering Contract TPC2005 (amended 2008). Essentially, open book involves the declaration of all cost components by the contractor, including overheads, profit, sub-contractor costs, supplier invoices, labour and plant. Contracts can be administered in a pure open book sense, much like a ‘cost plus’ approach (see below) or in conjunction with another form of pricing strategy. For example, the term contract could be administered on a SOR with open book being undertaken (say annually) to verify actual costs. The issue with this approach is when the two outputs vary. For example, if the contractor received considerably more via the SOR than it cost, verified by open book, then this may create an uncomfortable position for both parties to resolve. On the other hand, open book does at least provide transparency in pricing so that everyone can be fully aware of the costs and therefore collaboratively make decisions on how to manage the service. Contractually though, open book does not mean unrestricted access to books of account and may not necessarily be used to adjust pricing. Cost Plus - This approach ‘does what it says on the tin’! Basically, the contractor is reimbursed for the actual cost of undertaking the task with an agreed ‘mark up’ or margin. Under this type of arrangement, the contractor is most likely to manage the contract with a dedicated ‘Profit and Loss (P&L)’ set of management accounts, detailing all expenditure. A slight variation on this approach could be the use of hourly rates for personnel, based on their actual salaries, so that each task has a time charge and then actual materials are reimbursed ‘at cost’. Obviously with this type of approach, all of the risk is with the client, since they will pay the contractor for all of his costs. One argument is that this could include paying for inefficiencies and therefore there is little incentive for the contractor to reduce costs. One advantage of this approach is that by sharing information on an open basis, encourages collaboration between client and contractor and the opportunity to work together to reduce the cost of the service. In the next issue, we will explore Fixed Price, Target Cost and Hybrid pricing frameworks, together with advice on how to go about determining which pricing strategy is appropriate to your organisation. Finally, we are delighted to offer training seminars on Pricing Strategies and Open Book methodologies. Our training sessions can be tailored to your specific needs whether you are a client, consultant or contractor seeking a greater understanding of the key issues. If you are interested, in any of the training we have to offer, then please click here to register your interest.
|
 |
Local Authority + PCT’s in one service = Commissioning Bliss? If recent comments by NHS Hammersmith and Fulham chair Jeff Zitron are to be believed, then giving the local Primary Care Trust commissioning role to Local Authorities would be:- ‘an excellent way of reducing beaurocracy and bringing health services closer to the public.’ His thoughts go much further in as much as having councils and acute commissioning being carried out by a Capital Wide body - of course, this could be widened to encompass Social Care removing further management levels which cost the public sector millions - but would this be one step too far? The arguments for are multiple including:-
However, with everything there will always be arguments against:-
The case of Hammersmith & Fulham is a compelling one. By integrating H&F LBC with H&F PCT they have identified that the PCT’s £150m continuing care budget with the councils £72m community care budget of £72m could lead to substantial savings by taking a local integrated approach to care delivery - now wouldn’t that be refreshing? Cameron Consulting provides consultancy to both NHS clients and Local Authorities, to date, we have been working with these organisations independently to offer supply chain solutions, procurement pathways and service improvement offerings - knowing as much as we do about NHS clients and Local Authorities, we know we are well placed to help your organisations with any potential plans to integrate - even if initially it may just be a ‘what is possible’ review. With public budgets being ‘reviewed’ and inevitable cuts on the way - wouldn’t you rather be in control of where those savings are made? If you would like to have a proactive discussion with a member of our team regarding anything discussed in this article, please call us on 01732 897766.
|
  |
PRINCE2 - Can it really help your projects run smoothly? We think so! So much so that Heather Langridge has recently become a Registered Prince2 Practitioner. This is great news for Cameron Consulting and follows in line with our CPD policies for all staff. Heather sat the Foundation Exam while still with Greenwich Council and this summer consolidated her skills by undertaking the Practitioner Training to complete her qualification. What is PRINCE2? PRINCE2 is a standard used extensively by the UK Government, local authorities, other public bodies and is widely recognised and used in the private sector, both in the UK and internationally. PRINCE2 is a registered trademark of OGC. It is a structured approach to project management, providing a method for managing projects within a clearly defined framework. There are procedures to coordinate people and activities in a project, how to design and supervise the project and what to do if the project has to be adjusted if it doesn’t develop as planned. Each process is specified with its key inputs and outputs and with specific goals and activities to be carried out, which gives an automatic control of any deviations from the plan. A project, whether large or small is divided into manageable stages and so close monitoring of the project can be undertaken and any problems spotted at an early stage. Heather has found that the methodology can be easily applied to many of the projects she works on and has learnt from experience that projects that aren't organised and controlled properly usually go disastrously wrong! Having experienced and qualified Project Managers is just one reason why Cameron Consulting should be your first choice when looking for someone to really take your project to the next level. To speak with Heather to understand her expertise and some of the skills she has used with current clients, please call 01732 897766.
|
   |
Kent Kids: Miles of Smiles when cheque presented! Kent Kids is our charity of the year. On Thursday November 5th 2009 Linda Northridge had great pleasure in making a trip to Canterbury to meet everyone at Footprints, one of the care homes that Kent Kids runs. It was great to see all the hard work that is being carried so that the children and young adults live in a caring and happy environment. There are currently 6 children who are permanent residents with a respite care list of up to 12 children. It was great to see the facilities they provide from a spa to a multi sensory room. All of the rooms have been painted by a local artist in various Disney themes and several times a year he will come and visit and add characters to the walls. Footprints is set in beautiful grounds where there is a great play area and just recently added is a thatched roof sun terrace where outdoor parties can be held and the peace and quiet of the countryside enjoyed. Kent Kids relies totally on donations and fundraising from local businesses and the community. Linda was delighted to be able to give a cheque, on behalf of everyone at Cameron Consulting, to Liz Baxter Head of fundraising. Liz and her team of one Michelle Moxley are kept busy all year raising money for this very deserving cause; they will try and attend all the fund raising events to give their support. Their most ambitious event to date is to trek the Inca Trail in Peru, Liz will be joining several other people from Kent to walk the trail which is 3360m above sea level, more volunteers are required so if this is something that you want to do then why not do it for a good cause. For more information about Kent Kids have a look at their website http://miles-of-smiles.org.uk and of course, if you want to have a look at our CSR policy, please click here. It was great to see what a deserving charity Kent Kids is and to know that the money we have donated is going to such a worthwhile cause. Cameron Consulting are pleased to support Kent Kids and look forward to helping them over the coming year.
|
|
|
Nuneaton & Bedworth Kitchen & Bathroom re-procurement: Capacity Building We are really thrilled to be continuing our relationship with Nuneaton & Bedworth Borough Council. We are re-procuring their Kitchen & Bathroom contract with a slight twist! We committed to the client to assist them with this re-procurement, based on the ideal that throughout the process we would build their in-house capacity in order that eventually they would be able to undertake many of the tasks associated with the procurement activities themselves. This is something Cameron Consulting pride themselves on. When we are capacity building with clients, we know we are truly adding value. That said, we hope to continue this relationship for many years to come! For more information on our capacity building techniques for many aspects of contract development, please click here.
|
 |
Wandsworth Council: External Repairs and Redecorations Contract Administration We commenced works with Wandsworth 2 years ago carrying out roofing projects. We welcome the continued opportunity to work with them, this time contract management of the external repairs and redecorations contract. James Belk will be leading on this contract and will be bringing his extensive experience and expertise to the role. Cameron Consulting are experienced project managers and welcome continued works of this nature. If you have a contract you wish to discuss, please contact James Belk on james.belk@cameron-consulting.co.uk.
|
 |
Welcoming Our New Team Member: James Belk who joined us in October, is a chartered Building Surveyor with over 20 years experience in both the private and public sectors, including commercial, education, healthcare, housing, infrastructure and telecommunications. He has considerable experience in the housing sector and, as an associate director at Dunlop Haywards, was responsible for the management of project teams delivering large-scale maintenance and refurbishment projects, including decent homes, estate regeneration and major works programmes for a number of local authorities and RSLs. Before moving to Cameron Consulting, James was the Building Surveying Director at the London office of an international civil and structural engineering consultancy where he was responsible for overseeing architectural and structural engineering activities in addition to running the building surveying team. James is a keen advocate of best value in construction, using a combination of robust partnering, effective risk management and sustainability in construction, not only in terms of energy efficiency but also whole life costs, future maintenance and final disposal. He has become an integral and valued member of the team very quickly and is adapting well to Radio 2 and the ‘fiddly’ coffee machine… if you wish to re-establish contact with James, please call him on 01732 897766.
|
