June 2005
Policy Framework for the Procurement
of
Public Sector Construction Projects
1. Introduction
The key aspects of Northern Ireland Public Procurement Policy, particular to construction works and services are set out below. The Procurement Board has endorsed this Policy Framework.
2. Northern Ireland Practical Guide to the Green Book (2003 edition)
The Northern Ireland Practical Guide to the Green Book applies to all proposals that involve spending of public money. The Guide requires that all such proposals should be supported by evidence of suitable appraisal, approval, management and evaluation. There are no exceptions to this general requirement.
Achieving Excellence in Construction
Section 10 of the Guide deals with implementation, management and monitoring of proposals. The Guide states that the principles in OGC Achieving Excellence in Construction guidance (pdf, 399kb) should be applied and should be reflected in NI Departments’ documented client procedures for the management of projects. Departments should have in place procedures to control capital projects, which as a minimum include these principles. Where a Department wishes to apply more rigorous guidelines it is free to do so.
A list of applicable OGC Achieving Excellence in Construction guidance is given on page 122 of the Guide.
The Guide considers the “establishment of roles” to be a key principle. There is a requirement for documented client project management procedures to draw a clear distinction between “client roles” and “provider roles”. Client roles are identified as Investment Decision-Maker, Project Owner (or Senior Responsible Owner) and Project Sponsor. Provider roles are identified as Project Manager, the design functions and the construction functions.
Gateway Review Process
Section 10 of the Guide also requires that all new procurement projects be subject to the Gateway Review Process. The process commences with a Risk Potential Assessment for the project. Projects are subject to a Gateway Review when a Risk Potential Assessment for a project results in a score of 31 or more.
Departments must ensure at least one construction project is appraised by the Gateway Review Process each year.
Reviews are based on well-proven techniques that lead to more effective delivery of benefits together with more predicable costs and outcomes. The requirements of the Gateway Review Process are detailed in DAO 17/04. Further guidance is contained in CPD Guidance Note 06/04 (pdf, 166kb).
3. Procurement through Centre of Expertise
Northern Ireland Public Procurement Policy requires that all public procurement be undertaken by a Service Level Agreement with Central Procurement Directorate or through another Centre of Procurement Expertise.
4. Achieving Excellence for Northern Ireland –
The Achieving Excellence for Northern Ireland Initiative was prepared by the Government Construction Client Group (GCCG) and endorsed by the Executive Committee of the Assembly. GCCG agreed an implementation Programme with target dates. By March 2005, Departments were required to embed best practice in a number of key areas, for example, the provision of fully trained Project Sponsors and the application of best practice project management.
Proposals for the Second Phase of Achieving Excellence for Northern Ireland, up to April 2008, will be introduced in October 2005.
Departments are required to report regularly on their progress implementing the Initiative.
5. Achieving Sustainability in Construction Procurement – Sustainability Action Plan
The Achieving Excellence for Northern Ireland – Implementation Programme contains a commitment that construction procurement will meet Government policy on sustainability by March 2006. The Sustainability Action Plan (pdf, 137kb) was prepared by GCCG to fulfil this commitment. The Action Plan acknowledges that the understanding of what makes construction sustainable is evolving.