23 Nov 2017
The Department of Health (DoH) has submitted its final tranche of 72 projects procured using ProCure21+ to BCIS for analysis and publication as elemental cost analyses via BCIS Online. The contract value of the projects total over £700 million. This will further increase the sample sizes of health-related projects available to BCIS subscribers.
The analyses will include: a £104m hospital development; £76m proton beam therapy unit; £35m emergency department, and a £27m children’s hospital. Other projects range from £1m to £20m, comprising new builds, refurbishments and extensions.
ProCure is a construction procurement framework administrated by the DoH for the development and delivery of NHS and social care capital schemes in England. The original framework, ProCure21 (P21), was let following a pilot in October 2003 and ran until September 2010. Its successor, ProCure21+ (P21+) commenced in October 2010 and expired at the end of September 2016. The frameworks have so far delivered over 850 publicly funded projects at a value of £6bn.
ProCure22 (P22) represents the third iteration of the DoH framework and is a suitable procurement approach for the following types of work:
- service planning or reconfiguration reviews
- major works schemes (or refurbishments)
- minor works programmes, in which each task value does not exceed £1m
- infrastructure upgrades (roads, plant, etc) and non-health buildings (car parks, etc.)
- feasibility studies and master-planning.
P22 utilises an incentivised pain/gain process whereby if the scheme is delivered below the Guaranteed Maximum Price (GMP), the contractor or Principal Supply Chain Partner (PSCP) share (gain-share mechanism) is 50% in the range 95% to 100% of the GMP (and nil beneath 95%). Conversely, the PSCP share for anything over 100% of the GMP is 100%, i.e. PSCP takes the pain.
One of the highlights of ProCure 21+, which ProCure 22 is taking forward, was the repeatable rooms programme. The process involved utilising expertise from across each PSCP and their supply chain of Primary Supply Chain Members (PSCM) designers. The programme prioritised the most commonly recurring rooms within hospital designs and sought to produce exemplar, evidence-based designs that could be adopted and repeated nationwide (hence ‘repeatable rooms’). Repeated results have resulted in savings in design and construction costs as well as time, in addition to an increase in off-site prefabrication. Additional benefits of repeated room layouts are that staff become more familiar with layout and equipment within a room, which in turn improves safety due to familiarity thus improving care for patients. NHS trusts that have utilised repeatable rooms have evidenced benefits in respect of time savings.
BCIS has a long history of analysing DoH projects and we are grateful for their continued support. We would like to thank the DoH for providing the data and everyone who submits projects to be published online.
If you would like to talk to BCIS about submitting data, please contact Metin Mustafa on +44 (0)20 7695 1518 or email.
Cost analyses are available as part of the BCIS Online service.
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