Financial Partnerships Unit

1. abcdefghij Financial Partnerships Unit Financial Partnerships Unit Obtaining Design Quality in PPP Projects David Fox Turner & Townsend Group

2. Obtaining Design Quality in PPP Projects Scottish Executive Seminar 30 November 2004

3. Ensuring Design Quality in the PPP Process • What is driving the Design Quality? • Education and Quality Standards • Output vs Prescription (Mandatory/Non Mandatory Requirements) • Use of Model Documentation • Consultation as a Design Tool in Procurement • Affordability is King • Exemplar Designs

4. What is Driving Design Quality - Many Conflicting Needs • Requirements of the EA and Users • Mandatory Design Standards • Competitive Tension • Affordability • Whole Life Assessment • Transferred Risk • Risk of Performance Deductions

5. We have: Building Regs Planning Regs SE Standards British Standards DFES We need: Generic Space Standards Education Environmental Standards Education Accommodation Standards Education and Quality Standards- They are not robust enough

6. Output vs Prescription - We need the correct balance • We need Clear Accommodation/Service Requirements • Prescription gives certainty but retains the risk • Use Mandatory and non Mandatory Requirements • Mandatory - Output standards designed for full period • Non Mandatory - Detail sets the Evaluation Standards • Get the Standard right through Regular Mid Tender Meetings

7. Use of Model Documentation • Allows Bidders to Major on Project Specifics • Familiar Documents let Bidders concentrate on Designs • Models reflect Government Risk Profile • Bidder Friendly Documentation • Prioritised to Meet Client Requirements • Commercially Realistic

8. Output Specification Structure • Designed to reflect Executive Risk Profile • Accommodation Requirements • Accommodation Schedules • FM Requirements • Minimising Disruption/Constraints • Design Standards • Room Data Sheets • More than one way to skin this cat • Designed to focus on Council Priorities

9. Exemplar Designs • DFES/PfS Designs – Sets standards but unaffordable • Project Reference Designs • Following Consultation confirms Affordable practical solution • Specification ties in with exemplar and OBC - confirms affordability • Users must understand the context and the process • Careful programming : Spec.-design-consultation-affordability • Role of Reference Design in Procurement Process • Not mandatory but standard against which quality evaluated • Good Bidder Consultation ensures understanding and no surprises

10. Consultation as a Design Tool • Regular Bidder Meetings are a Must • More Comprehensive Expectations in a non Mandatory Form • Council Standing Orders can be an Issue • Mould Designs to suit Requirements • Ensure All bids meet Requirements • Detailed Development when Preferred Bidder • Groups will not all be Correct First Time • Don’t Corrupt the Competition

11. Affordability is King • Major movement in build costs • Robust PSC - Build a Comprehensive Picture • The Use of Sample Designs • Ensure Spec. Reflects Award – Benchmark costs • Clearly Set Out Affordability Targets • Maintain Competitive Pressures • High level of Consultation • Affordability Targets are Sacrosanct

12. Ensuring Design Quality in the PPP Process • Influence the Drivers to work on your behalf • Education and Quality Standards - If not available adopt best practice • Fundamentals of Project Feasibility • Output vs Prescription - Get the Balance right • Reference Designs or provide reference projects • Use of Model Documentation - Project Specifics • Consultation is a Design Tool • Managing Affordability