Finding and managing professional help 25th January 2017

Finding professional help Welcome and introduction Ailsa Raeburn–Scottish Land Fund Head of Community Assets Alison Crook–Scottish Land Fund Adviser Tony Crosbie–Scottish Land Fund Operations Manager

Finding professional help Do you need to buy in professional help for your community purchase? Then you will need a procurement process Here’s why:- To access the best available advice To get value for money – professional advice is expensive! To show that you have been open and fair To satisfy current and future funders To avoid contravening regulations & damage to your reputation Your project may depend on it!

The jargon…. You are the client The brief explains the project and your requirements Procurement is the steps to appointing a firm The tender list is the shortlist of firms invited to submit proposals Their return can be called a proposal/bid/quote/tender The firm you appoint is your consultant or contractor You issue a letter of acceptance or both sign a contract

Procurement Procurement covers the purchase of goods, works or services. For community groups seeking to buy land or buildings, this could include services such as:- Options appraisal/feasibility study Business Planning Housing needs survey Building survey Valuation Legal services Building design Architect/Engineer/Quantity Surveyor

Different types of procurement The procurement process you adopt will depend on the nature of the work involved, the size of the budget and requirements of potential funders. There are 3 main procurement methods:- Invite competitive quotes from suitable firms and accept lowest. Usually 3 quotes invited. Suitable for <£5k Selection balancing quality and price. Between 3 & 6 suitable firms invited to submit bids then detailed selection process. Suitable for >£5k. Open OJEU (advertised in Official Journal of the European Union) for contracts >£68k for public bodies.

Procurement rules and guidelines Goods/services up to 50k (local policies rules apply  -we would recommend requesting 3-6 quotes) 50k-164k - Procurement (Scotland) Regulations 2016 apply over £164 – OJEU procurement rules apply (Public Contract Scotland 2015)   Works up to £2million (recommend requesting 3-6 quotes) Between £2million and £4.4 million - Procurement (Scotland) Regulations 2016 apply Over £4.4 million - OJEU procurement rules apply (Public Contract Scotland 2015) EU Thresholds – source http://www.gov.scot/Topics/Government/Procurement/policy/10613

Procurement process Step 1 – Research Step 2 – Prepare the brief Step 3 – Establish selection criteria Step 4 – Invite proposals Step 5 – Evaluate proposals – may include interviews Step 6 – Appoint Step 7 – Project management Step 8 - Completion

Step 1 - Research Do your homework! What do you want to do? What free advice/support can you get? What outside assistance do you need? What is your budget/possible funding source? What procurement guidance/rules do your funders have? What firms are out there and what is their track record? What will your procurement process be and who will you involve in this?

Step 2 – Prepare the Brief Write up your plans & involve others! Organisation & history Community description & engagement to date Proposed project Project objectives and outputs Key partners and stakeholders Skills and service required Selection process Terms & conditions of appointment Timescales Available budget (optional) Supporting info e.g. accounts, map, Board & Staff members

Step 3 – establish selection criteria The criteria you use for selecting a consultant should be consistent, transparent and above all fair. There should also be consensus across your group members for utilising a particular methodology. Selection criteria examples -track record, expertise, proposed methodology, capacity to deliver within timescales, customer references or testimonials Scoring – weighted, fixed or combination Scoring should be based on written submission and/or interview NB: to ensure transparency and fairness the selection and scoring criteria should not be changed once issued

Step 4 – Invite proposals Depending on the budget for the work you should aim to invite between 3 and 6 consultants to ensure a strong selection if they don’t all bid. You could also advertise your brief. The group should appoint a selection panel (2 or 3 members) to select a tender list of consultants and agree on what basis they are to be appointed Identify firms and check they are interested in bidding Provide all firms with a single point of contact (SPOC) for any queries Provide all bidders with same info and answers to queries If interviewing as well as scoring bids, be prepared (agree questions, arrange a suitable venue, provide adequate notice of interview dates)

Step 5 – Evaluate proposals If you are scoring written proposals remember not to open all of the bids until after the deadline has passed. Follow criteria issued Take time to fully assess written proposals Score against an agreed rating range e.g.0-4 ranging from Unacceptable, Poor, Acceptable, Good, Excellent You might choose to weight price and quality –see our 10 steps for more details and also a scoring template (www.hie.co.uk/ten-steps) Keep a record for transparency and constructive feedback to unsuccessful consultants

Step 6 - Appoint Once you’ve found the consultant who can best deliver your brief you can appoint them but arrange a meeting or telephone conversation first to confirm your arrangement. It’s always good practice to ask for references from previous clients Insist on prior approval with SPOC for changes Ensure funding is in place before appointing- allowing for the addition of VAT & expenses Your board should agree the content of a contract to be offered (www.hie.co.uk/ten-steps) Issue letter of appointment/contract – be clear on cost Provide feedback to unsuccessful bidders

Step 7 – Project Management If the consultant would benefit by meeting those involved in the contract management or the provision of information, it is a good idea to hold an inception meeting to clarify. Initial briefing Reporting arrangements (the SPOC) Project milestones and progress tracking Review dates Who to involve/consult What to do about underperformance Review of draft proposals and dialogue with funders Presentation of final proposals

Step 8 - Completion The work carried out should lead to a decision to go ahead or not with a proposal, For most organisations, the completion of a consultancy contract marks the start of further work to take forward the outputs and deliverables that resulted from it. Publicity may help generate the interest of the community and funders Developing any recommendations into an action plan for your group/relevant stakeholders Carry out internal evaluation and feedback – project inputs, project outputs, project management

Top tips Most, but not all, professional help is successful. Our top tips for success:- Ensure good communication throughout Be clear & consistent on what you want Confirm in writing their fee and when it will be paid Agree target dates and ensure they are kept to Set decision making process at outset & stick to it The consultant gives advice, you make decisions Give feedback as the project progresses. If you are not happy – tell them! Deal with any disagreements within your group Sign off the project before making payment

Useful Web Links Ten Steps to Community Ownership www.hie.co.uk/ten-steps Calling in the Professionals video guide: https://www.youtube.com/watch?v=-MK6A7mp5Gg Big Lottery Fund – Guide on Selecting Consultants Scottish Government toolkit for lower value procurement https://www.procurementjourney.scot/route-1 HIE’s Community Assets Team is here to support you. Contact: email community.assets@hient.co.uk or visit our website www.hie.co.uk/community-support/community-assets