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Which Archaeologist? Improving Commercial Practice, understanding value and risk ®LRQA - Business Assurance - ISO 9001 Approval certificate No: LRQ 4003485.

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Presentation on theme: "Which Archaeologist? Improving Commercial Practice, understanding value and risk ®LRQA - Business Assurance - ISO 9001 Approval certificate No: LRQ 4003485."— Presentation transcript:

1 Which Archaeologist? Improving Commercial Practice, understanding value and risk ®LRQA - Business Assurance - ISO 9001 Approval certificate No: LRQ Lloyd’s Register Quality Assurance

2 PPG16 and competitive tendering? “The ‘fundamentally flawed’ introduction of price-competitive tendering (PCT), suggests it will incentivize the ‘lowest possible quality’ of service” and “…agree contracts on price rather than quality, which could increase the likelihood of ‘incompetent or inadequate’ representation and lead to delay”.

3 Success and failure Developers want price competition, but it is also in their interests to maintain a diverse supplier base. If too many suppliers are put out of business, the price will go up.

4 Market Place Supply and demand Fragmentation and over supply Client priorities and quality thresholds

5 Procurement and the intelligent client No evidence (0 pts) Poor (10 pts) Acceptable (20 pts) Good (30 pts) Excellent (40 pts) Weighting Quality Does the proposal address all items in brief 15.00% Is there sufficient detail in the bid 15.00% Is there clarity of what will be produced 10.00% Ability Has the bidder undertaken similar work before 10.00% Does the bidder have a suitably qualified team 10.00% Time Can the bidder meet the timescales 10.00% Cost Does the bid represent value for money 30.00% Risk awareness: financial implications programme implications reliability, proven track record repeat need, partnership working capability, capacity, technical merit, quality assurance

6 Government initiatives Construction Strategy 2011 – Informed client – Collaborative culture – Design and innovation to create value – Encourage research and innovation Business Information Modelling (BIM) “adoption of information-rich technologies, process and collaborative behaviours will unlock more efficient ways of working at all stages of the project life-cycle” (BIM task group)

7 Staged approach Archaeological staged approach Due Heritage Scope of Assess-MitigationPreservation in situmonitoring DiligenceStatementworkmentDesignPreservation PXAUPDReport optionsPre-appDBAby Record Analysisdissemination appraisalvalidationEval/SI processHeritage significance Magnitude of Impact Project Management PRINCE2: at least three stages 1 Start up 2 Delivery 3 Close project and review

8 Project management Focus on outcome Identify roles and responsibilities (ownership) Plan project Manage by stages Manage change (clarity on authorization) Careful control of time and budget Predict and control risks and opportunities Use reports and reviews to control progress

9 Prioritizing In England National Planning Policy Framework 1.Sets out the Government’s requirements for the planning system only to the extent that it is relevant, proportionate and necessary to do so 17. Core planning principles The 12 principles include: conserve heritage assets in a manner appropriate to their significance, so that they can be enjoyed for their contribution to the quality of life of this and future generations; 65. Planners need to weigh impact against benefits of scheme (unless the concern relates to a designated heritage asset and the impact would cause material harm to the asset or its setting which is not outweighed by the proposal’s economic, social and environmental benefits) 135. a balanced judgement will be required having regard to the scale of any harm or loss and the significance of the heritage asset

10 Value of knowledge and expertise Knowledge expertise investment Cost-effective project delivery Comparative rates Experienced high rate Less experienced low rate Appears cheaper option but project delivery jeopardized and business reputation affected

11 Training

12 Financial planning

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14 Cash flow, contracts, payment The NEC Professional Services Contract (PSC) has been developed as part of the New Engineering Contract (NEC) system of contract documents. The contract has been drafted as a ‘shell’ contract which requires important information to be provided separately. The most critical document to be provided is the Scope. This contains the detailed requirements of the Employer and is frequently referred to within the PSC.

15 Methods of measurement Civil Engineering Standard Method of Measurement (CESMM) The object of CESMM is to set out the procedure to which a Bill of Quantities should be prepared and priced and the quantities of work expressed and measured.

16 Risk and value LPA advice note to developers “How To Get The Best Value For Your Money Commissioning archaeological projects is not like buying a product or providing many other services. For most products and services the quantities of materials, time taken in manufacture etc. are fairly well understood and a firm price can be given. For archaeological sites the archaeologists often have little idea of what they might actually find and cannot always give a single fixed price, as many briefs include the need for a ‘contingency’. “ WHICH ARCHAEOLOGIST? THE PROCUREMENT OF ARCHAEOLOGICAL SERVICES Guidance and best practice for managing risk in the selection of an archaeological supplier Introduction As a profession, archaeology forms part of the UK’s knowledge- based and creative industries which, along with other professional input such as architects, provide services to the development sector. The aim of this document is to foster an intelligent approach to the purchase of archaeological services as part of the development process, to aid clients when planning, designing and implementing a scheme of archaeological work. Frequently procurement of archaeological services is left until late in the planning for a development programme, and selection of a supplier is determined solely by lowest cost. Such an approach is not a reliable method for ensuring quality or cost-effectiveness or for minimising risk to a scheme, and is not consistent with how and when other professional services are commissioned.

17 Undermining the profession LPA advice note “Choosing an Archaeological Contractor” “It is the applicant’s responsibility to appoint an Archaeological Contractor. DO NOT SIGN A CONTRACT WITH AN ARCHAEOLOGICAL ORGANISATION UNTIL THEIR PROPOSAL HAS BEEN APPROVED AND ACCEPTED BY THE CURATOR. Nevertheless you as the client should try and obtain a fixed maximum price before you agree to any archaeological project. “

18 Accreditation thresholds

19 Partnership working

20 Informed procurement: better understanding from clients of what risks they run when choosing a supplier on cost alone Greater barriers to entry: achieved by developing less permeable barriers to entry for development-led work Partnership: building long-term relationships and framework agreements with those large clients who already operate quality systems. Measurement: the development of standard methods of measurement for tasks so clients can better understand archaeological process Innovation: developing new methods and techniques for improving efficiency and thus increasing value to the client Future proofing: exploring the potential for moving the profession upstream, BIM and other construction-sector modernisation Skills enhancement: developing appropriate skill-sets that will be truly valued by clients Employment Best Practice: revising SCAUM 2004 Employment Manual Raising our profile: moving upstream, be valued as part of the knowledge and creative industries


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