Where a client is proposing to undertake a scheme and would like to learn more about the ProCure21+ process, they should contact their local Implementation Advisor first. If it is agreed that the client should go ahead with the scheme, the client should register the proposed scheme on the ProCure21+ website. There is no commitment to proceed by registering the scheme, and the information stays confidential with the ProCure21+ team until the client chooses to make it more widely visible. However, the client will be expected to agree to the Client Charter as a condition of using ProCure21+.
Registered clients are encouraged to access the ProCure21+ Club to find information on projects similar to that which they are proposing to undertake. They should contact other clients to obtain their feedback on ProCure21+.
Registering a scheme
Please read this guidance before registering a scheme
Download: How to register P21+ schemes and projects
v2.0 dated 20 April 2012 • 94Kb Word document
We like you to register a scheme with us so we can get an understanding of it before we contact you for further discussion.
If you have a scheme that you would like to tell us about, please register it with us. Give us as much detail as you can and we will contact you to find out more.
If you already have a ProCure21+ scheme in progress and you are thinking of taking forward another, please register it and we will contact you.
Registering does not provide any obligation to use ProCure21+, and it will not be advertised to anyone without permission. Registration should take no longer than 5 minutes.
Selecting a PSCP
The Implementation Advisor will support the client in the engagement of ProCure21+, obtaining the required training and selecting and appointing the Principal Supply Chain Partner (PSCP).
Selection and appointment usually takes 3-4 weeks. However, the client may wish to set the timescale for the process to suit their requirement. The selection process is compliant with European procurement regulations 2006 and 2009. Deviation from the process may lead to a non-compliant call-off. This is a client risk.
The PSCP selection process follows these stages:
- The client agrees selection criteria and weightings;
- The client releases a high-level information pack (HLIP) to all six PSCPs on the framework;
- PSCPs send an expression of interest to the client for evaluation. This is a gateway to the next stage of the selection process;
- The client holds an open day (optional);
- PSCPs are invited to interview for further investigation of their expression of interest and to hear further proposals for the delivery of the scheme;
- The client selects the PSCP and issues a letter of appointment;
- The client provides feedback to all PSCPs expressing interest.
Starting a scheme
Once the letter of appointment is issued, the client and PSCP review the scheme and plan the first six to eight weeks. This will be agreed through the project start-up workshop. During or at the end of this period the client and PSCP should be in a position to agree and sign the ProCure21+ Form of Agreement to enable them to progress the project further. No further work should be undertaken after expiry of the period stated in the Letter of Appointment until the Form of Agreement is signed.
The PSCP is responsible for the provision of a project start-up workshop, for which there is a suggested agenda. Client training needs will be identified, and training may be sourced either direct through the PSCP or through the ProCure21+ Implementation Advisor.
Clients will need to ensure they appoint a Project Director, a Project Manager, a Supervisor and a Cost Advisor. These appointments should be made outside of the ProCure21+ process. Clients will also need to identify whether they require Construction Design and Management (CDM) duties to be undertaken by the supply chain (this is acceptable under the requirements of the CDM Regulations) or whether they will appoint a CDM coordinator themselves.
Scheme development
The design development period covers PSCP appointment through to agreement of the Guaranteed Maximum Price (GMP) and the start of construction. It includes the following:
- Investigation into service needs and alternative proposals for service reconfiguration;
- Finalisation of the brief
- Development and approval of business cases (SOC, OBC, FBC);
- Engagement of the supply-chain and other stakeholders;
- Development of the preferred with design associated costs and a programme;
- Identification, allocation and management of risk;
- Development and agreement of the GMP and Stage 4 contract documents.
Early engagement of the supply-chain in the design development process offers the following benefits:
- Providing access to the expertise within the supply chain at the earliest possible time to add value to the project using initiatives such as Standardisation, BIM and Innovation and assist with any issues of affordability or sustainability;
- The supply chain gains knowledge and understanding of the client and their requirements and their business;
- Improved designs and construction planning lead to improved efficiency on site, which results in reduced construction periods, improved cost certainty, higher quality and better health and safety on site;
- Collaboration throughout the supply chain assists the establishment of a proactive problem-solving culture.
Scheme management
ProCure21+ uses a bespoke version of the NEC3 Option C: Target Contract with Activity Schedule. The NEC3 contract sets out the foundations for effective and efficient management of a project to deliver it on time, within cost and to the quality specified or better.
All parties should be engaged with the management of the contract documentation and processes. Contractual roles are defined with associated timescales for actions identified. Contract management systems are available to assist clients and PSCPs with managing and implementing the provisions of the contract. They may be either independent of, or form one element of, an overarching collaborative communication and data transfer/storage system. PSCPs have experience of using these systems, and can provide access should a client require it.
To assist with the effective administration of the contract processes, ProCure21+ has developed a set of ProCure21+ NEC3 Option C Contract Administration pro-formas that must be used in accordance with the provisions of the ProCure21+ NEC3 Contract Template.
The Guaranteed Maximum Price (GMP)*
The Guaranteed Maximum Price (GMP), or ‘Target Price’ as defined in the NEC3 contract, is the maximum price payable by the client for the works as agreed at the time that the Stage 4 Form of Agreement is agreed.
Provision has been made for a gainshare as follows:
- If the outturn cost is below the GMP (up to a maximum of 5%) then the savings are shared 50:50 between the client and the PSCP;
- If the outturn cost is higher than the GMP then 100% of the additional cost is payable by the PSCP (if there are no client changes).
- Any additional savings below 95% of the GMP will be retained 100% by the client.
Gainshare should be the result of more efficient methods of construction or alternative materials or designs that do not affect the quality or functionality of the completed project. A gainshare should not result from setting the GMP too high and ’market testing‘ works packages after the agreement of the GMP without any changes to the design or specification. In such a case, 100% of the savings will be returned to the client.
Assurance*
ProCure21+ operates a full ‘open book’ accounting system. All PSCPs have signed up to total disclosure on information, cost and processes. This also applies to the supply chains.
ProCure21+ implements a Performance Management Plan throughout the life of the framework. Key elements of the plan are:
- Regular financial and systems audit of the PSCPs and selected Principal Supply Chain Managers (PSCMs);
- Random scheme audits as part of the financial and systems audit;
- Key performance indicators for all schemes through benchmarking returns;
- Annual PSCP performance reviews;
- Monthly monitoring returns for all schemes.
The ProCure21+ Implementation Advisors work with the schemes to ensure that the principles and processes of ProCure21+ are being followed. They provide impartial advice on issues, and should be the first point of contact if issues cannot be resolved at a local level.
Each PSCP has a named board member who is responsible for the performance of the PSCP and their supply chain.
Commercial*
As part of the tender process for the ProCure21+ framework, each of the PSCPs has completed and submitted a Bid Return Document that details fees and rates over six project value bands. These rates and margins dictate the recovery of cost on all schemes throughout the life of the framework. Details of these can be made available to clients when selecting, but selection must be based on quality rather than cost.
The rates and fees represent the market rates at the time of submission, and are continually monitored by the Department of Health. The ProCure21+ fees represent good value for money and are adjusted on a biannual basis according to the MIPS index.
Implementation Advisors are able to offer an introduction to fees and rates as required for engaged clients.
Takeover and final assessment*
At completion, the Project Manager certifies takeover once it is agreed that the project is defect-free. Takeover should only be certified when all defects have been corrected (this includes provision of as-built drawings, operation manuals, etc). The client’s Project Manager certifies the takeover date.
ProCure21+ provides for zero retention as well as a two-year defect liability period.
Because payment under NEC3 Option C is based on a formula of ‘defined cost plus fee’ up to the GMP, then the submission and payment of the final assessment should not take long, as the cost/time/quality effects of compensation events should have been ascertained and agreed at the time they were issued, in accordance with the contract provisions.
Information and Performance Review*
ProCure21+ PSCPs and clients are required to submit Key Performance Indicator (KPI) data to the Department of Health at GMP stage and at post-completion stage. This data helps the Department of Health manage the framework and provides Government with information on the good performance of ProCure21+ schemes.
Each scheme is required to go through a scheme-end review to ensure that lessons are recorded, best practice is identified, and benefits for the client and patient are clearly articulated.