The NHS in Wales - Constructing Excellence

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The NHS in Wales - Constructing Excellence

DESIGNED FOR Life : BUILDING FOR Wales

CYNLLUN Oes: ADEILADU AR GYFER Cymru

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life: Building for

Wales

Patrick Riordan, Deputy Director

Welsh Health Estates

DESIGNED FOR Life : BUILDING FOR Wales


What is the NHS in Wales doing?

• Integrated supply chains

• Collaborative working

• Within a Framework environment

• Partners selected on capability (and cost

competitiveness)

• Long-term relationships (to support continuous

improvement)

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life :

Building for Wales

Collaborative working environment

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life :

Building for Wales

Framework Manager

Collaborative working environment

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life :

Building for Wales

Framework Manager

NHS Trusts

(15 No.)

Collaborative working environment

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life :

Building for Wales

Framework Manager

Project manager

framework

(3 No.)

Supervisor

framework

(3 No.)

NHS Trusts

(15 No.)

Cost advisor

framework

(3 No.)

Collaborative working environment

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life :

Building for Wales

Framework Manager

Project manager

framework

(3 No.)

Supervisor

framework

(3 No.)

NHS Trusts

15 No.

Cost advisor

framework

(3 No.)

National Cost Advisor

(1 No.)

Collaborative working environment

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life :

Building for Wales

Framework Manager

Project manager

framework

(3 No.)

Supervisor

framework

(3 No.)

NHS Trusts

(15 No.)

Supply Chain Partners

(3 No.)

Cost advisor

framework

(3 No.)

National Cost Advisor

(1 No.)

Collaborative working environment

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life :

Building for Wales

A typical

Supply Chain

Partnership

Constructor (1No)

Health Planners (3 No.)

Architects (3 No.)

Civil and Structural Engineers (3 No.)

Building Services Engineers (3 No.)

Planning Supervisors (3 No.)

Cost Managers (3 No.)

Building Services Subcontractors (3 No.)

FM advisors (3 No.)


Designed for Life : Building for Wales

• Mandatory

• Threshold level over £5m

Framework Ground Rules

• Initial Framework 4 years with option to extend by 2

years

• Regional frameworks to cover projects below threshold

to be set up after 2 – 3 years

• Implement main framework by June 2006

• Welsh Health Estates to manage Framework

Agreement

• Trusts to enter into contract with their selected partner

DESIGNED FOR Life : BUILDING FOR Wales


Supply Chain Partner

SCP

SCM

Collateral Warranties

Framework Agreements

PM

NEC3: Option C

Target Contract

National

Assembly for

Wales

S

NHS Trusts

Term Contract

TCA

Professional Services Contract

National Cost Advisor

Support Frameworks

Designed for Life: Building for Wales

Contractual Arrangements

DESIGNED FOR Life : BUILDING FOR Wales


How we are organising ourselves

Strategic Framework Board

Framework Directors Group

Key Account Managers Group

Design & Construction Group Commercial Group Process & Procedures Group

Working Group(s) Working Group(s) Working Group(s)

DESIGNED FOR Life : BUILDING FOR Wales


Purpose of making the change

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life

DESIGNED FOR Life : BUILDING FOR Wales


Designed for Life :

Building for Wales

Capital Expenditure Budget for Wales

2004/05 £107 million

2005/06 £146 million

2006/07 £220 million

2007/08 £309 million

2008/09 £309 million

DESIGNED FOR Life : BUILDING FOR Wales


Looking back why was it necessary

to make these changes?

DESIGNED FOR Life : BUILDING FOR Wales


NHS experience of the construction

industry

• Limited collaboration across the supply chain

• Contractors and suppliers make no, or very little,

input into design

• Selection on the basis of lowest capital cost

(usually on an incomplete design)

• Short term relationships

• Adversarial contract

DESIGNED FOR Life : BUILDING FOR Wales


Resulting in hospital projects that…

• Cost more than budgeted

• Are usually delivered late

• Have poor functionality

• Have no time or cost certainty

• Are of variable quality

DESIGNED FOR Life : BUILDING FOR Wales


And result in

• Low profits

• An industry vilified by clients and unable to

attract enough good people

DESIGNED FOR Life : BUILDING FOR Wales


Our aims

• Value for money

• Certainty of delivery in terms of time and

cost

• Consistent delivery of quality in both

design and construction

• Continuous improvement

• Better management of risk

• Optimising the delivery of sustainable

development

DESIGNED FOR Life : BUILDING FOR Wales


The proof of the pudding ……

• Got off to a good start

• First review in January

• Key is to change culture

DESIGNED FOR Life : BUILDING FOR Wales

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