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Trusted procurement for better buildings and homes LHC.GOV.UK

FRAMEWORK AGREEMENT GUIDEOff-site Construction of New Homes (NH1)

WHY WORK WITH LHC?

These are the key reasons to work with LHC

whether you’re a public sector organisation

looking for procurement solutions or a

supplier with products or services to provide.

Knowledge and experience of procurement Our organisation began half a century ago and over five decades we’ve developed and shaped our service to meet the evolving needs of our clients.

Recognised technical expertise Our technical expertise is built on continuous research by our team of technical specialists who consult with clients on the outcomes they need and suppliers on the range of available solutions.

Commitment to better buildings and homes Our ultimate goal is helping our clients deliver better environments for the communities they serve, a goal we support through our frameworks, that address every aspect of quality, and our selection of the most appropriate suppliers.

Fast and efficient procurement Once LHC appointed companies are established for a framework, the process of calling off projects and commissioning work is very efficient. Terms and rates have been agreed and even when a mini competition is required, the majority of contractual arrangements have already been finalised. Project work can start quickly.

Financial gains Working with LHC frameworks gives suppliers access to construction, refurbishment and maintenance projects of over £200m each financial year. Clients who spend more than £200,000 on two or more frameworks in a year will benefit from a share in the LHC operating surplus we return to Members. During the last five years, we have given back a total of £10,000,000 to our members.

Please read this guide in conjunction with the LHC guide to understanding and using pre-tendered frameworks, available on our website.

WWW.LHC.GOV.UK/MEMBERSHIP

03

Social landlords are often under pressure to build high quality,

best value housing quickly. Traditional house builders are finding skill

shortages in many areas that puts pressure on house building costs.

Benefits of off-site construction

There is a solution that provides an ideal alternative to social landlords wishing to build new housing quickly and efficiently – off-site construction.

With many UK manufacturers now using state of the art manufacturing techniques in modern, highly automated factories, off-site construction has come a long way in recent years, offering landlords high quality and cost effective solutions for house building.

The benefits of off-site construction include:

-- Predictability of costs due to controlled factory production costs

-- Faster speed of build as much of the work is completed in the factory

-- Consistent product build and high quality finishing with fewer defects than traditional build due to controlled factory construction that is not weather dependent

-- Value engineering can help save costs, including reduced prelim and carpentry costs

-- Reduced on-site labour requirements helps mitigate against labour and skill shortages

-- Low site waste as much of the work is conducted off-site leaving less waste to dispose of

-- Reduced theft risk as there are less easily removable materials on-site

-- Less disruption to local residents with reduced vehicle movement, dust and noise

-- Excellent standards of energy efficiency can be achieved

05

This framework agreement has been produced in two separate phases in strict compliance with UK Public Sector procurement rules for use by public sector bodies in the UK as detailed in the LHC buyer profile (www.lhc.gov.uk/buyerprofile) and as specified in the Contract Notices:

Phase 1 – Design, manufacture, supply and erection:

-- 2014-OJS091-159133 London

-- 2014-OJS091-158866 England

-- 2014-OJS091-159132 Wales

These were published in OJEU in May 2014 with 6 successful tenderers appointed in November 2014.

Phase 2 – Integrated construction process:

-- 2015-OJS072-126946 London

-- 2015-OJS072-126950 England

-- 2015-OJS072-126948 Wales

These were published in OJEU in April 2015 with 10 successful tenderers appointed in December 2015.

Public sector organisations in Scotland wishing to use this framework should contact the Scottish Procurement Alliance (SPA).

www.scottishprocurement.scot0131 306 0177

Fully OJEU compliant, it provides local authorities, housing associations and other social landlords with easy access to off-site manufactured volumetric and panelised building systems for the use in new home build projects.

The framework includes the option of a turnkey solution including design, manufacture, supply, installation and construction services. Alternatively, a supply and erection service is available.

Suppliers on the framework have developed standard house types which help clients avoid design issues and save time and money, as the houses already comply with Building Regulations, the Housing Quality Index (HQI) and funding authority requirements.

The LHC Framework Agreement for Off-site Construction of

New Homes (design, manufacture, supply and erection) is available

to public sector organisations in England, Wales and Scotland.

About this framework agreement

LHC.GOV.UK

Building system options

The Off-site Construction of New Homes Framework Agreement

includes volumetric and panelised systems. These are available individually

or with full construction services providing a turnkey solution.

Panelised building systems

Volumetric building systems are factory produced three-dimensional units that are transported to site for fixing together.

To meet the requirements of the framework the delivered units are:

-- Fully finished internally with the option of external wall and roof cladding systems that can be factory fitted

-- Available with internal fixtures and fittings either specified by the client or selected from a range provided by the manufacturer

-- Pre-installed with internal services that are tested prior to on-site commissioning by the supplier

-- Designed to comply with structural, fire, acoustic and thermal Building Regulations

-- Available with construction services to provide a turnkey solution

Panelised building systems are factory produced flat panel units that are transported to site for assembly.

These units form the structure of the building wall, floor and roof structure and can be made of timber, light gauge steel, concrete or structurally insulated panels (SIPs).

To meet the requirements of the framework the delivered units are:

-- Provided with external wall thermal insulation with the option of wall linings, windows and external cladding being installed in the factory

-- Compliant with the requirements for fire safety during construction (if they are timber panelised building systems) meeting HSE and Fire and Rescue Service’s safety requirements


Volumetric building systems

The systems available offer multiple benefits to clients,

who can also be confident in consistently high standards

of delivery provided by LHC appointed companies.

LHC appointed company benefits

Product and appointed company benefits

Product benefits

Volumetric and panelised building systems offer the following benefits to clients:

-- Compliance with the latest British and European Standards and holding the CE Mark

-- Compliance with the latest regulations – both volumetric and panelised systems have been designed to meet the latest editions of the Building Regulations including: structure (Part A), fire (Part B), acoustic (Part E), conservation of fuel and power (Part L England, Part L Wales)

-- Enhanced acoustic performance between dwellings for separating walls and floors, up to eight decibels better than Building Regulations

-- Minimisation of energy costs for residents – reduced thermal bridging, improved air tightness and A-rated windows, through fabric energy efficiency

-- Legally and sustainably sourced timber used in systems – timber sourced through sustainably managed forests supported by verified due diligence and risk assessment requirements regarding the chain of custody and compliance with the EU Timber Regulations No. 995/2010:2013

-- Long term quality assurance and protection against defects – all systems are suitable for gaining NHBC or equivalent new build warranty for a minimum of 10 years


Companies on this framework provide:

-- Confidence in quality of workmanship – companies use approved and trained installers to carry out site works

-- Assurance of quality, environmental, and health and safety management system requirements (companies have been evaluated to ensure management systems are in place)

-- Time and cost savings leading from quicker starts – provision of design services at the feasibility stage through Design For Manufacture (DFM) to deliver the client’s design in the most efficient manner

-- Confidence of conformity to statutory regulatory requirements – appointed companies offer design advice and support on the interpretation and conformity to statutory regulatory requirements including meeting funding requirements

As well as providing compliance, quality and best value to clients, the LHC Framework for Off-site Construction of New Homes supports a streamlined process from the award of a contract (call-off) to completion of a project.

Confirmed competitive market prices Prices in place at call-off stage maintaining best value as established in the evaluation stage.

Quick and efficient procurement Speedy access to LHC appointed companies and the options of a mini-competition or direct award to enable the final selection of a supplier or supplier(s) for a project.

Instant access to project data Continuous access to information throughout the procurement process through the suppliers’ on-line portal.

High quality standards Standards of quality maintained throughout project through monitoring in accordance with ISO 9001 Quality Management System.

Service levels guarantee Guaranteed service levels from inquiry to supply providing peace of mind that services and works will be conducted effectively.

Quick project starts Enabled by pre-tendered procurement that reduces the cost and time input by public sector organisations and speeds up their access to companies.

Advice on design and regulatory compliance Guidance on interpretation and conformity to statutory regulations and planning requirements.

Delivery periods guarantee Guaranteed delivery periods that ensure services and works are delivered to meet work schedules.

The framework in action

LHC.GOV.UK

09

About the tender

The tender process for this framework followed LHC’s Open Procedure which

eliminates the Pre-Qualifaction Questionnaire stage. Suppliers were given

free and open access to the tender and offer documentation and answered

Suitability Assessment Questions.

Selection criteria

-- Financial information

-- Business and professional standing

-- Health and safety policy and capability

-- Equal opportunity and diversity policy and capability

-- Environmental management policy and capability

-- Quality management policy and capability

-- Sustainability and social inclusion policy requirements

-- Experience of working in public sector and partnering

-- Membership of professional bodies and/or trade associations and technical associations

-- Managerial and technical support, sales, marketing and supporting information

-- Technical and professional ability

-- Providing the full range of essential components on offer

-- Conformity to the LHC specification together with the expertise and quality of deliver

The diagram below shows the process a supplier completes to become

an LHC appointed company and to be awarded a contract (or “call-off”).

It also highlights the support LHC provides once a project is live.

LHC.GOV.UK

From suitability to call-off contract

When buyers are ready to choose a supplier for an individual project

they should start the process by talking to LHC. We will coordinate

either a direct award, if there is a single supplier on a framework,

or a mini-competition if there are several.

-- A mini-competition involves all capable LHC appointed companies

-- A direct award is made to a single company, with justifiable

reasoning, without reopening competition

Awarding contracts “call-offs”

LHC provides support and technical assistance throughout

the life of a project, as required:

-- To ensure high quality standards are maintained

-- Service levels are fulfilled

-- Delivery periods are met

LHC also welcomes discussion and feedback on completion of projects.

Works commence/complete

Appointing companies

On frameworks using LHC’s Open Procedure to determine appointed companies, suppliers have open access to the tender and offer documentation (ITT) and are asked to respond to Suitability assessment questions covering:

-- Company standing

-- Financial standing, employment practices, environmental awareness,

capacity and geographical rage

-- Installation capability

-- Technical capability

-- Quality systems management capability

-- Experience of supply to the public sector

-- Specifications for products and services

-- Testing and certification

-- Service capability

-- Pricing

-- Sustainability and social value

A detailed evaluation report is prepared which shows

for each tenderer a:

-- Weighted score under each heading

-- Value for money index

-- Company or companies recommended for appointment

Suitabilityassessment

Our aim is giving LHC clients and Members a choice of appointed

companies to work with. Numbers vary per framework in line with

anticipated demand and subject to the number of qualifying suppliers.

-- All suppliers are notified of the results and the unsuccessful

tenderers can choose to have a debrief to help improve future offers

-- Contract Award Notices are published in the Official Journal of the

European Union (OJEU) and on the LHC website

15%Production qualitative assessment

Manufacturing facilities

were assessed for the

quality of construction,

finish and operation

including:

-- The quality

of the structure

-- Quality of cladding,

windows & doors

-- Quality of factory

installed services

-- Quality of factory

installed internal

finishes

-- Quality of factory fitted

bathrooms and kitchens

-- Weather protection

from completion

of manufacture

to on-site delivery

Award weighting criteria are established on each individual framework and can be flexed to a buyer’s individual needs.

Public sector officers can obtain a copy of the full evaluation report from LHC.

10%Project management

-- Project planning

and management

-- Supplier’s core project team

-- Site supervision, meetings

-- Design services

-- Cost management service

-- Building information modelling

-- Funding requirements

10%Evaluation of project specific responses

-- Project delivery

-- Work programming

-- Project economics

-- Management control

-- Quality management systems

-- Provision of information

10%Scenario questions

-- Communications

-- Quality

-- Supply management

10%Company evaluation

-- Declarations

-- Management systems

-- Health and safety systems

-- Environmental system

-- Financial

-- Experience

25% Pricing

-- Prices were tendered using

different size of projects for

each lot type

20% Technical requirements

-- Product range to meet

the LHC specification

-- Quality of delivery

and expertise

-- Structural standards including

fire, acoustic

and fabric

Award weighting criteria – integrated construction process

11

Award weighting criteria – volumetric and panelised supply and install options

30%Pricing

Prices were tendered using

two different methods of

analysis

for each workstream:

-- Workstream 1 Four standard house

types were costed

for against provided

drawings and a design

for manufactured

solution with pricing

for an apartment block

of 48 units over

four stories

-- Workstream 2

Two contract scenarios

where priced, one for

a housing development

of 12 units and the

second for a three

storey apartment block

containing 24 one and

two bed units

Administrative and management services were assessed

using responses given within the offer document.

Companies also participated in depth interviews addressing

the whole framework and including:

-- Project planning and management

-- Supplier’s core project team

-- Site supervision, meetings

-- Design services

-- Cost management service

-- Building information modelling

-- Funding requirements

15%Technical requirements

-- Product range to meet

the LHC specification

-- Quality of delivery

and expertise

-- Structural standards

including fire, acoustic

and fabric

40%Qualitative assessments

15%Production qualitative assessment

Manufacturing facilities

were assessed for the quality

of construction, finish

and operation including:

-- The quality of the frame

manufacture and compliance

with applicable standards

-- Correct installation of

insulation, compliant with

relevant standards and

meeting performance

requirements for Fabric

Energy Requirements

-- Dimensions within

manufacturing and site

tolerances

-- Windows and other

materials in the system meet

specification, comply with

the relevant standards and

are installed correctly to

specification

-- Units provided with weather

protection from completion

of manufacture to on-site

delivery

LHC.GOV.UK

13

E East Midlands

Accord Housing Association

t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

F1 Modular

Galliford Try Partnership

Hill Partnership

Keepmoat

Seddon

Stewart Milne Group

Appointed companies – availability by area

A London


t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

F1 Modular


Hill Partnership

Stewart Milne Group

Rollalong

B South East England


t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

F1 Modular


Hill Partnership

Keepmoat

Mi-Space (UK) Ltd*

Rollalong

Stewart Milne Group

D East of England


t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

F1 Modular


Hill Partnership

Keepmoat

Rollalong

Stewart Milne Group

C South West England


t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

F1 Modular


Hill Partnership

Keepmoat

Mi-Space (UK) Ltd*

Rollalong

Stewart Milne Group

Please refer to www.lhc.gov.uk/nh1 for full company details

Low rise Medium & high rise Systems

supply only<20 21–40 41+ <100 100+

Type and size of project Type and size of project

H North West England


t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

City West Works

F1 Modular


Hill Partnership

Keepmoat

Seddon

Stewart Milne Group

G Yorkshire & Humber


t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

F1 Modular


Hill Partnership

Keepmoat

Stewart Milne Group

F West Midlands


t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

F1 Modular


Hill Partnership

Keepmoat

Seddon

Stewart Milne Group

*Can offer main contractor services


supply only<20 21–40 41+ <100 100+

15

I North East England


t/a Local Homes

Caledonian Modular

CCG Scotland Ltd

F1 Modular


Hill Partnership

Keepmoat

Stewart Milne Group

Appointed companies – availability by area Please refer to www.lhc.gov.uk/nh1 for full company details

J1 South Wales


t/a Local Homes

Caledonian Modular

F1 Modular


Keepmoat

Mi-Space (UK) Ltd*

Seddon

Stewart Milne Group

J2 Mid Wales


t/a Local Homes

Caledonian Modular

F1 Modular


Keepmoat

Mi-Space (UK) Ltd*

Seddon

Stewart Milne Group

J3 North Wales


t/a Local Homes

Caledonian Modular

F1 Modular


Keepmoat

Mi-Space (UK) Ltd*

Seddon

Stewart Milne Group

A London

B South East England

C South West England

D East of England

E East Midlands

F West Midlands

G Yorkshire & Humber

H North West England

I North East England

J1 South Wales

J2 Mid Wales

J3 North Wales

Regional lots

A

B

C

J1

J2

J3

H

I

G

E

F

D

Type and size of project

*Can offer main contractor services


supply only<20 21–40 41+ <100 100+

Framework agreement for Off-site

Construction of New Homes

Phase 1 of the off-site construction framework agreement for England, Wales and Scotland is effective until 31st October 2018.

Phase 2 will be effective in England, Wales and Scotland from 1st December 2015 until 30th November 2019.

01895 274850

LHC.GOV.UKNH1 01/16

Download - FRAMEWORK AGREEMENT GUIDE - LHC · PDF filewaste to dispose of ... LHC buyer profile ( ... help clients avoid design issues and save time and money,

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