ODA/CLM are very keen to organise an industry day with SEC Group to discuss opportunities for the specialist engineering sector. They would especially welcome SMEs from any part of the country. They are also very keen to talk to firms who are prepared to engage local labour.
They said they will provide any necessary training for the local workforce.
Meeting of SEC GROUP, ODA AND CLM (the delivery partner)
13th February 2007.
Present: Howard Shiplee
Director of Construction (ODA):
Ron Brooks - Programme Director & CEO (CLM)
Rob Knight - Head of Procurement & Contracts (CLM)
Rab Brown - Senior Programme Manager (CLM)
Rudi Klein - SEC Group (CEO)
John Nelson - SEC Group (Executive Secretary)
The meeting was held to follow up issues raised by SEC Group in its response to the ODAs draft procurement strategy published last year. The SEC Group opened the meeting by emphasising that there was mutuality of interest in that both sides fully believed in best practice procurement and all that entails as far as partnering, early involvement and payment security was concerned. The issue, as always, was to identify the most effective means of ensuring that best practice was applied.Ensuring Best Practice along the Supply Chain
2. SEC Group explained many of the problems that arise within the supply chain. ODAs policy of using the NEC contract was to be applauded. However, the concern was that bespoke amendments would be made to the NEC documentation that would be primarily aimed at risk transfer rather than involve any genuine attempt to share risk. The experience on public sector projects such as the Procure21 framework model indicated that clients determination to achieve best practice was undermined by poor practice downstream.
3. In response the ODA made the following points:The priority is to select contractors which are absolutely committed to best practice.
Although the ODA/CLM could not manage everyones affairs, it would be insisting upon collaborative working since this was the only way to achieve best value.There has to be a single point of responsibility but, also, there has to be transparency throughout the supply chain. It should be borne in mind that the Olympics will only be utilising 10% of the industrys capacity at the height of construction activity. [Interesting fact: at the peak of activity the ODA will be employing 20,000 people]CLM will have a dedicated team in place that will monitor and audit what is going on within the supply chain to establish whether there is anything happening that could affect performance.
Olympic projects will be completed on time but the process of delivery has to be cost effective and without interruption. The 2012 Commitments were a "no-brainer" the ODA would have no trouble in implementing them.
4. SEC Group made the following points:Whist recognising that Olympic procurement will only involve a small part of construction capacity, it is important to acknowledge what they represented - they will be an exemplar for best practice.The SEC Group represented the highest value component of construction activity specialist engineering and, therefore, it is important to establish a dialogue with ODA/CLM to ensure that Olympic projects will run smoothly.
Whilst the Commitments were (or should be!) a "no-brainer", the ODA/CLM should know that there has been opposition to the inclusion in the Governments Payment Charter of the requirement that all payments should be made within 30 days. SEC Groups concern is to work with the ODA/CLM to remove obstacles to achieving genuine collaboration the