DoI procurement policy
| Authority | Department of Infrastructure |
|---|---|
| Date received | 2018-10-15 |
| Outcome | Some information sent but not all held |
| Outcome date | 2018-11-05 |
| Case ID | 624568 |
Summary
The requester asked for documentation regarding a mandatory MACCS accreditation agreement for Department of Infrastructure contractors. The authority responded by providing the 'Procedure Notes for Management of Construction Projects' (April 2012) but stated that not all requested information was held.
Key Facts
- The Department of Infrastructure issued a response stating some information was sent but not all was held.
- The disclosed document is the 'Procedure Notes for Management of Construction Projects' issued by the Treasury in April 2012.
- The procedure notes form part of the Financial Regulations under Section 3 of the Treasury Act 1985.
- The document outlines a project lifecycle with automatic 'gate' stops requiring written Client approval.
- Appendix 21 of the notes includes a Form of Tender with modifications for the Freedom of Information Act 2015.
Data Disclosed
- 2018-10-15
- 2018-11-05
- April 2012
- Aug 13
- Dec 14
- Nov 15
- Jan 16
- 142
- 2
- Treasury Act 1985
- Freedom of Information Act 2015
- FD17
Original Request
I am led to believe that there is an agreement in situ whereby all contractors wishing to undertake works on behalf of the DoI must be MACCS accredited. I would like to see any supporting documentation of this relationship between DoI and MACCS (or information which otherwise prove that it is not a requirement to be MACCS accredited to undertake works on behalf of the DoI), so I can be fully conversant with the terms and limitations of this agreement.
Data Tables (47)
| No | Date | Amendment | ||||||
|---|---|---|---|---|---|---|---|---|
| 1 | Aug 13 | Appendix 7 – Business Case Guide (amendments to section 3.4) | ||||||
| 2 | Aug 13 | Section 9 – Contract Guarantee Bonds – new procedure | ||||||
| 3 | Dec 14 | Appendix 7 - Business Case Guide (new section 3.8.3) | ||||||
| 4 | Nov 15 | Section 8.7.4 and Appendix 21 Register of Craftsmen and Women replaces Certification of Craftsmen | ||||||
| 5 | Jan 16 | Appendix 21 – Form of Tender inclusion of Freedom of Information Act 2015 modifications |
| Contents | Section | Page | |||
|---|---|---|---|---|---|
| Number |
| 3 | Construction Projects – Project | |||
|---|---|---|---|---|
| Management System & Project Governance |
| 4 | Construction Projects – Project Planning | |||
|---|---|---|---|---|
| and Control |
| 6 | Project Team Procedures for Capital | |||
|---|---|---|---|---|
| Schemes - Principles |
| 7 | Project Team – Services, Appointments, | |||
|---|---|---|---|---|
| Conditions of Engagement, Fees and | ||||
| Expenses |
| 8.5 | STAGE I3 TENDER ACTION, REPORT AND INVESTMENT | |||
|---|---|---|---|---|
| DECISION |
| 8.12 | STAGE H1 – HANDOVER, FINAL ACCOUNT AND POST | |||
|---|---|---|---|---|
| PROJECT EVALUATION |
| 9 | Contract Performance Guarantee Bonds and | |||
|---|---|---|---|---|
| Parent Company Guarantees |
| Activity | r e t cg ea jn oa r PM | r t o cs en j oo rp PS | e v it a t n e s e rr ep se UR | t c e t ih c r A | r e e n ig n E liv iC | r e e n ig n E E & M | r o y e v r u S y t it n a u Q | U P C | r e h t O |
|---|---|---|---|---|---|---|---|---|---|
| Write Project Execution Plan | R | A | C | I | I | I | I | I | |
| Submit fee proposals | I | R | R | R | R | I | |||
| Produce initial cost plan/check budget | A | C | C | C | C | R | I | ||
| Arrange Initial Briefing Meeting | R | A | I | I | I | I | I | ||
| Write up Minutes of Meeting | A | R | |||||||
| etc | |||||||||
| Activity | r e t cg ea jn oa r PM | r t o cs en j oo rp PS | e v it a t n e s e rr ep se UR | t c e t ih c r A | r e e n ig n E liv iC | r e e n ig n E E & M | r o y e v r u S y t it n a u Q | U P C | r e h t O |
|---|---|---|---|---|---|---|---|---|---|
| Write Project Execution Plan | x | ||||||||
| Submit fee proposals | x | x | x | x | |||||
| Produce initial cost plan/check budget | x | ||||||||
| Arrange Initial Briefing Meeting | x | ||||||||
| Write up Minutes of Meeting | x | ||||||||
| etc | |||||||||
| A | B | C | D | E | F |
|---|---|---|---|---|---|
| Hazard | Description | Likelihood (1-5) | Outcome (1-5) | Risk (C x D ) | Mitigation |
| 8-10 |
|---|
| 3-6 |
| 1-4 |
| 12-15 |
|---|
| 9 |
| 3-6 |
| 16-25 |
|---|
| 12-15 |
| 8-10 4-5 |
| Query/originator | Date of Issue | Subject |
|---|---|---|
| None |
| Key Performance Indicator | |||
|---|---|---|---|
| 1. | Client Satisfaction | To determine the overall level of client satisfaction with the completed project | Scale of 1 – 10 |
| 1.1 | Client Satisfaction – Product | ||
| 1.2 | Client Satisfaction – Service | ||
| 2. | Quality | To assess the impact on the client of any defects at the point of hand-over | Scale of 1 – 10 |
| 2.1 | Defects | ||
| 3. | Cost Predictability | To measure the reliability of cost estimates | Includes indicators for the 2 key decision points |
| 3.1 | Predictability Cost – Design | ||
| 3.2 | Predictability Cost – Construction | ||
| 4. | Time Predictability | To measure the reliability of time estimates | Includes indicators for the 2 key decision points |
| 4.1 | Predictability Time – Design | ||
| 4.2 | Predictability Time – Construction | ||
| 5. | Safety | To measure the number of reportable accidents per 100,000 employed – amended from company reporting to suite reporting on a project basis. (The accident incident rate; AIR) | Departments must require contractors to collect data for those employed on site. This will necessitate the inclusion of a specific provision in contracts |
| 5.1 | Accident Incident Rate | ||
| 6. | Environment | To determine how satisfied the client is that environmental impacts have been considered | Scale of 1 – 10 |
| 6.1 | Environmental Impact – Product | (energy use, CO2 emissions, materials from non-renewable sources) were taken into account in the finished product | |
| 6.2 | Environmental Impact – Process | (waste, noise and dust) were taken into account during the construction process |
| SELECTION MECHANISM – AB CONSULTANT LTD | ||||||
|---|---|---|---|---|---|---|
| Project Title Proposed New Project Isle of Man | Assessor(s) Assessor A Department Representative Assessor B Department Sponsor Assessor C CPU Representative Assessor D Independent Representative | |||||
| Organisation | Overall Quality Threshold 50 | |||||
| INSURANCE | ||||||
| Selection criteria | Quality Threshold | QT reached? | ||||
| Professional Indemnity Insurance | £5,000,000 | Yes | ||||
| TECHNICAL CAPACITY AND ABILITY | ||||||
| Selection criteria | Criteria Weighting (A) % | Score awarded (B) | Weighted score (A x B) | |||
| Technical suitability for project | 26 | |||||
| Availability of resources | 22 | |||||
| Management organisation | 18 | |||||
| Experience relevant to project | 24 | |||||
| Quality assurance / CPD | 10 | |||||
| Total weighting | 100 | Total | ||||
| Is total score greater than Overall Quality Threshold? | ||||||
| Comments | ||||||
| Signed by assessor(s) Assessor A Assessor B Assessor C Assessor D | Date |
| Local Off Island |
|---|
| Direct labour/staff costs |
| Overheads/Profit |
| Materials/Plant/Equipment |
| Sub-contractors and suppliers |
| Services/Consultancy Fees |
| Other (please specify) |
| Name | Signature | Position | Date |
|---|---|---|---|
| Project Sponsor |
| Name | Signature | Position | Date |
|---|---|---|---|
| Chief Executive |
| 1 | ||
|---|---|---|
| 2 |
| NAME OF FIRM | SIGNATURE | DATE | |
|---|---|---|---|
| ARCHITECTS | |||
| QUANTITY SURVEYORS | |||
| CIVIL/STRUCTURAL ENGINEERS | |||
| MECHANICAL/ELECTRICAL ENGINEERS | |||
| PLANNING SUPERVISOR | |||
| OTHERS | |||
| Department of |
|---|
| CONTRACT MONTHLY RETURN |
| Commercial - in confidence |
| Local Authority/Department Unit: |
| Project Title: Period Ending: |
| Project Sponsor (person): Report Number: |
| Issued Anticipated Section A: PROGRESS Section B: VARIATIONS £ £ 1. Contract Commencement Date 1. Design Team Variations 2. Contract Completion Date 2. Client Variations 3. Revised Completion Date 3. External Factors 4. Original Contract Period 4. PC Sums Adjustments 5. Revised Contract Period 5. Provisional Sums/ 5. Planned expenditure % Quantities Adjustments 6. Actual expenditure % 6. Ground Conditions 7. Claims 8. Other _________ ________ TOTALS _________ ________ N° of Variations Issued N° of Items Instructed |
| a | b | c | d | e | f | g |
|---|---|---|---|---|---|---|
| CUMULATIVE VALUE | AMOUNT IN COLUMN C FOR | |||||
| N° of Certificate | Date of Certificate dd/mm/yy | Contract Works* £ | Fluctuations £ | Claims £ | Engineering Services* £ | Variations + £ |
| CONTRACT MONTHLY RETURN |
|---|
| Commercial - in confidence |
| Local Authority/Department Unit: |
| Project Title: Period Ending: |
| Project Sponsor (person): Report Number: |
| Completed by: | Name: (CAPITALS) | ||
|---|---|---|---|
| Position: | Telephone: | ||
| Address: | Email: | ||
| Date: |
| NAME OF FIRM | SIGNATURE | DATE | |
|---|---|---|---|
| ARCHITECTS | |||
| QUANTITY SURVEYORS | |||
| CIVIL/STRUCTURAL ENGINEERS | |||
| MECHANICAL/ELECTRICAL ENGINEERS | |||
| PLANNING SUPERVISOR | |||
| OTHERS | |||
| Page and paragraph number, or other reference for the element of information I/we regard as confidential | Marking - either ‘in confidence’ or ‘commercially sensitive’ | Why I/we consider element of information to be confidential |
|---|---|---|
Full Response Text
Isle of Man
Government
Reiltys Ellan Vannin
Procedure Notes For Management of Construction Projects
Issued by the Treasury Government Office Douglas, Isle of Man IM1 3PX
April 2012
PROCEDURE NOTES FOR MANAGEMENT OF CONSTRUCTION PROJECTS
Procedure Notes for Management of Construction Projects (April 2012)
Record of Amendments
This record should be kept at the front of the Procedure Notes.
No Date Amendment 1 Aug 13 Appendix 7 – Business Case Guide (amendments to section 3.4) 2 Aug 13 Section 9 – Contract Guarantee Bonds – new procedure 3 Dec 14 Appendix 7 - Business Case Guide (new section 3.8.3) 4 Nov 15 Section 8.7.4 and Appendix 21 Register of Craftsmen and Women replaces Certification of Craftsmen 5 Jan 16 Appendix 21 – Form of Tender inclusion of Freedom of Information Act 2015 modifications
PROCEDURE NOTES FOR MANAGEMENT OF CONSTRUCTION PROJECTS
Procedure Notes for Management of Construction Projects (April 2012) Page 1 of 129
Contents Section Page Number
Application 1 3 - 6
Capital Programme and Strategic Plans 2 7 - 8
Construction Projects – Project Management System & Project Governance 3 9 - 15
Construction Projects – Project Planning and Control 4 16 - 19
Capital Schemes – The Brief 5 20 - 22
Project Team Procedures for Capital Schemes – Principles 6 23 - 27
Project Team – Services, Appointments, Conditions of Engagement, Fees and Expenses 7 28 - 37
Project Team Procedures – Details 8 38
Concept
8
38
Stage BC – Business Case
8.1
38 - 39
Definition
40
Stage D1 – Design Brief
8.2
40 - 47
Implementation
48
Stage I1 – Design Development
8.3
48 - 53
Stage I2 – Technical Design
8.4
54 - 61
Stage I3 – Tender Action, Report and Investment Decision
8.5 62 - 70
Stage I4 – Construction to Handover 8.6 71
Supervision 8.7 71
Certificates 8.8 71 - 72
Detailed Monthly Progress and Financial Reviews 8.9 72 - 73
Variations/Price Fluctuations 8.10 73 - 75
Extension of Time
8.11
75
PROCEDURE NOTES FOR MANAGEMENT OF CONSTRUCTION PROJECTS
Procedure Notes for Management of Construction Projects (April 2012) Page 2 of 129
Handover and Closeout
Stage H1 – Handover, Final Account and Post Project Evaluation
76
Handover
8.12
76 - 77
The Final Account
8.13
77 - 78
Post-Project Evaluation 8.14 78 - 79
Contract Performance Guarantee Bonds and Parent
Company Guarantees
9
80
The ‘gate’ symbol represents an automatic ‘stop’ within the project lifecycle which requires the Project Team to obtain written Client approval to proceed to the next stage
Appendix 1
The Project Lifecycle
81
Appendix 2
Examples of Roles and Responsibilities
Matrices
82
Appendix 3 Simple Risk Register
83
Appendix 4
Pro Forma Monthly Report
84 - 85
Appendix 5 Key Performance Indicators
86
Appendix 6 Qualitative Selection Mechanisms
Project Management Appointments
87
Appendix 7
Guidelines for the Construction of
Business Cases for Capital Projects
88 - 100
Appendix 8
Aide Memoire for Initial Project
Briefing Meeting Between Department,
Design Team and Treasury
101
Appendix 9 Schedule of Items to be Included in Quantity Surveyor’s Report on Tenders
102 - 103
Appendix 10 Schedule of Items to be Included in Consulting Engineer’s Report on Mechanical and Electrical Services
104 - 105
Appendix 11 Schedule of Items to be Included in Architect’s Report on Tenders
106
Appendix 12 Certificate of Non Collusion
107
Appendix 13 Certificate of Undertaking
108
Appendix 14 Latest Dates for Delivery of Financial Motions to Treasury and Pro Forma Notice of Motion
109 - 110
Appendix 15 Schedule of Documentation to be Submitted by Departments When Requesting Treasury Approval or Concurrence to a Motion Being Placed on the Tynwald Order Paper
111
Appendix 16 Post Contract Cost Control Template
112 - 113
Appendix 17 Post Project Evaluation – Meeting Agenda
114 - 115
Appendix 18 Application Form for Contract Guarantee Bond
116
Appendix 19 Certificate of Readiness
117
Appendix 20 Specimen Advertisement for List of Selected Tenderers
118
Appendix 21 Form of Tender
123 - 133
PROCEDURE NOTES FOR MANAGEMENT OF CONSTRUCTION PROJECTS
Procedure Notes for Management of Construction Projects (April 2012) Page 3 of 129
1 Application
Status of Procedures 1.1.1 These Procedure Notes for Management of Construction Projects form part of the Financial Regulations issued by the Treasury under Section 3 of the Treasury Act 1985
Application 1.1.2 Reference is made to the Regulations governing capital schemes in FD17 of the Financial Regulations. These Procedure Notes are applicable to all capital schemes, including building, engineering and other projects, which are wholly or partially funded or underwritten by Government, including schemes undertaken by Government Departments, Statutory Boards, Local Authorities and any body established by or under any enactment and consisting of, or including, persons appointed by Government Departments or Statutory Boards. Reference to “Department” or to “Client Department” in the text shall be construed as applying equally to all of the above named bodies.
Local Authorities 1.1.3 Where any Government funds are involved or where a deficiency is to be met by Government, capital schemes undertaken by Local Authorities shall be dealt with on a day to day basis by the appropriate Government Department as if the scheme was being undertaken directly by that Department, subject to the Department ensuring that the Procedure Notes are fully implemented at each stage of the project, and that there is full consultation at all stages of the scheme between the Department and the Capital Projects Unit, Treasury.
Large Revenue Funded Schemes 1.1.4 These Procedure Notes shall also apply to schemes of a capital nature which are funded from Revenue and which are estimated to exceed £250,000 in total cost. For the purposes of the Procedure Notes for Construction Projects such Revenue- funded schemes shall be deemed to be capital schemes.
‘In-house’ Services 1.1.5 Where any element of professional services is provided ‘in- house’, whether to its own Department or to another Department, the Procedure Notes shall be fully implemented as if external consultants were appointed for the scheme.
Engineering & Other Capital Schemes 1.1.6 Whilst the Procedure Notes are written principally for building schemes, they also apply to engineering and other capital schemes subject to such amendments as may be agreed with the Capital Projects Unit, Treasury.
Architect/Consulting Engineer 1.1.7 References to the “Architect” in the text shall be construed as applying equally to the “Consulting Engineer” and “Project Manager”.
1.1.8 Where the context so requires, words purported to one gender include all other genders and words purported to the singular include the plural and vice versa.
PROCEDURE NOTES FOR MANAGEMENT OF CONSTRUCTION PROJECTS
Procedure Notes for Management of Construction Projects (April 2012) Page 4 of 129
1.2 Queries
1.2.1 Any queries in respect of the application of the Procedure Notes should be addressed to the Capital Projects Unit, The Treasury, Central Government Offices, Douglas (telephone 685981).
1.3 Preface
Treasury Act 1985 1.3.1 Section 3 of the Treasury Act 1985 states that it shall be the duty of the Treasury to supervise and control all matters relating to the financial affairs of the Government.
1.3.2 The implementation of the capital programme is an important element in Government policy and to achieve this efficiently and effectively, Treasury has set out procedures to be followed for all capital schemes.
Development of Procedures 1.3.3 Procedure Notes for Capital Schemes were issued in December 1991. The operation of these Procedure Notes has been monitored by Treasury and queries and comments were received from many sources. Revised Draft Procedure Notes for Capital Schemes were issued for consultation with Departments and Statutory Boards in December 1993 and amendments and improvements, where considered appropriate, have been incorporated in subsequent years.
However, in 2012 the Procedures were completely reviewed to take account of changes in Legislation, developments in the industry and to create more emphasis on the Business Case process, project management techniques and project governance by Departments.
Objective 1.3.4 The overall objective of the Procedure Notes is to produce a capital scheme which will:-
a) Meet the Brief and requirements of the end user; b) Progress to an agreed time programme; c) Keep within an agreed budget; d) Provide the quality specified; e) Provide value for money; and f) Be delivered safely.
1.3.5 The system employed is essentially one of establishing objectives supported by a Business Case, followed by consultations and approvals designed to promote the clear, consistent and coordinated progress of a scheme from inception to completion, to give the best cost control and to produce more accurate planned expenditure.
Capital Programme 1.3.6 The Five Year Capital Programme proposed by Departments must be submitted to Treasury not later than the dates advised to Departments by Treasury from time to time as part of the Medium Term Spending Review Process and ongoing annual budget review. PROCEDURE NOTES FOR MANAGEMENT OF CONSTRUCTION PROJECTS
Procedure Notes for Management of Construction Projects (April 2012) Page 5 of 129
Details of Schemes 1.3.7 Full details of all schemes must be submitted in an agreed format to Treasury each year.
Priority of Schemes 1.3.8 Departments should submit their capital programme to Treasury in the order of priority determined by the Department.
1.3.9 Since it is Government’s objective to achieve a carefully pre- planned capital programme, Departments are encouraged to give detailed consideration to every aspect of a capital project and they are encouraged to consult with Treasury’s Capital Projects Unit at the earliest opportunity prior to the submission of any capital proposal. This would normally be the initial consultation between the Department and Treasury in relation to capital schemes.
No Commitment without CPU Consultation 1.3.10 Departments are reminded that no commitment shall be made to any individual or firm, formally or informally, to undertake any work or to provide any service directly or indirectly in relation to any capital scheme, including preparation of feasibility studies, development control plans, surveys, preliminary reports, design work, cost estimates, etc, without prior consultation with the Capital Projects Unit, Treasury.
Realistic Spend Pattern 1.3.11 Treasury will scrutinise each proposal for a capital scheme to ensure that the projected spending pattern for the scheme is realistic and attainable. Departments will recognise that the achievement of this objective will be beneficial to all and gives certainty to the industry when planning investment.
Departments to Promote In Professional Manner 1.3.12 Treasury wishes to encourage Departments to promote their capital schemes in a professional and realistic manner and in accordance with accepted best practice, and guidelines are necessary to ensure that Government policy is implemented in a consistent manner.
Milestone Stages 1.3.13 With this in mind, Treasury has prepared a series of procedures covering activities from identification of the Strategic Need through to the completion of construction, all of which form part of the Financial Regulations. The procedures are shown in seven stages:
BC
Business Case
D1
Design Brief
I1
Design Development
I2
Technical Design
I3
Tender Action
I4
Construction to Handover
H1
Handover, Final Account and Post Project Evaluation
Each stage follows on from the preceding one, with some possible overlaps. At each stage there is a gateway review process.
PROCEDURE NOTES FOR MANAGEMENT OF CONSTRUCTION PROJECTS
Procedure Notes for Management of Construction Projects (April 2012) Page 6 of 129
The gateway review process is a key assurance mechanism designed to provide an objective view of a programme or project’s ability to deliver on time and to budget. This means that there is an automatic stop on a project until the Project Team is advised in writing that the proposals at this stage are acceptable to the Client Department and that they should proceed with the next stage.
A diagrammatical representation of the process is shown at Appendix 1.
Contained within each stage is a description of the procedures as well as guidance on their application and on good practice.
The seven stages sit within the four lifecycle phases of a project as detailed in paragraph 4.2.
Procedures Not Exhaustive 1.3.14 Departments are advised that the Procedures are not exhaustive and further Procedures will be issued from time to time. Financial Regulations will incorporate the Procedure Notes to provide for the most efficient and effective implementation of the capital programme to meet Government’s objectives as previously outlined.
1.3.15 The Procedures are intended to generate a greater
consciousness of the importance of improved forward planning,
critical assessment of the feasibility of various alternatives,
monitoring projects during their execution and taking the
necessary steps in good time to avoid cost overruns. Sensible
use of the Procedures should lead to savings in public
expenditure without detriment to the quality of service to the
public.
Approval to Vary Procedures 1.3.16 Any departure from the Procedures proposed by a Department must be approved, in advance, by the Capital Projects Unit, Treasury.
Feedback to Improve Procedures 1.3.17 The Capital Projects Unit, Treasury would welcome the views and opinions of Departments and others on an ongoing basis on any aspect of the Procedures with a view to improvement.
Cooperation Between Departments & Treasury 1.3.18 Treasury expects the fullest cooperation from Departments in complying with the various procedures set out to achieve the stated objectives and assures Departments of its full cooperation and assistance, through the offi
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