CWS (2013)xx
Procurement Practitioners’ Group
Construction Works and Services(PPGCWS) SubGroup
xx March 2013
Subject: Social Requirements - Proposals for Construction Services Contracts
Recommendation: PPG-CWS members are asked to ………
Background
1. The ‘Social clauses’ within the CIFNI Proposals for Promoting Equality and Sustainable Development[1], set requirements for employment opportunities, skills and training and have been included in construction works contracts since December 2008.
2. The NI Assembly’s Programme for Government now requires the inclusion of social considerations in all public procurement contracts and as a consequence proposal must now be developed for construction services contracts.
3. Following discussions at the meeting between the CoPES and the CIGNI Professional College on the 7th November CPD agreed to produce a paper outlining proposals for the social clauses in construction services contracts.
Proposals
4. The proposals for construction services contracts are set out below. Following consultation an Implementation date for these proposals has to be agreed between the CoPES and CIGNI.
i. Requirement for the unemployed and training; Work placement on a Department of Employment and Learning (DEL) approved scheme to be provided within the Integrated Consultant Team (ICT) or its supply chain as follows:
− 8 weeks per £125K of fee value[2].
ii. Requirement for professional trainees;
− 5% of workforce of the Integrated Consultant Team[3] to be student / graduate / associate members of a relevant construction related professional institution working towards corporate status.
iii. Requirement for students;
− One 40 week student placement[4] for fee value of between £500K-£1000K and two placements for fee value greater than £1000K.
DEL approved schemes
5. There are three schemes that opportunities will be provided under
− DEL Steps to Work (StW)
− Training for Success (TfS)
− Youth Employment scheme (YES)
6. In determining the breakdown of the contract target (1) into individual placements and their proposed scheduling within the contract period, DEL will have regard to a hierarchical preference, subject to availability of candidates and. In order of preference and subject to availability and DEL’s policy preference:
− 26 week GAP placement
− 26 week StW placement
− 8 week Tfs
− 8 week StW
− 2 week or more YES placement
DEL Steps to Work
7. Steps to Work (StW) is a DEL scheme to provide work opportunities and skills training for the unemployed.
8. The duration of a DEL Steps to Work (StW) placement is either 8 or 26 weeks. The StW scheme includes the Graduate Acceleration Programme (GAP) which is administered by Business in the Community. GAP placements have to last a minimum 26 weeks.
Further information on StW is available on DEL’s Website: http://www.delni.gov.uk/stepstowork
Further Information on the GAP is available on the following website: http://www.gapni.com/
Training for Success
9. Training for Success (TfS) is designed for young people aged 16 - 18 (up to 24 years for those requiring additional support). This training provides young people with relevant qualifications as well as the required personal and behavioural skills to progress into work.
10. The requirement in construction services contracts is the Programme-Led Apprenticeship (PLA) component of TfS. PLA gives 16 and 17 year old school leavers (and up to 24 years for those requiring additional support) the opportunity to gain a full apprenticeship qualification in a chosen skill area. They access this through a combination of in-house directed training and work-based learning placement opportunities with an industry-appropriate employer (here the EO / Consultant).
11. Each work-based learning placement opportunities with an EO / consultant will last 8 weeks. Those undertaking the work-based learning placement will be Apprentices following a relevant apprenticeship framework when completing the ApprenticeshipsNI programme
Further informationon Training for Success is available at:
http://www.nidirect.gov.uk/index/information-and-services/education-and-learning/14-19/its-your-choice-options-after-16/trainingforsuccess/find-out-more-trainingforsuccessni.htm
Youth Employment Scheme
12. Set against the current background of 20% youth unemployment the DEL Youth Employment Scheme (YES) in Northern Ireland is designed to give young people, between the ages of 18 and 24 years old. help and support in looking for permanent work if they are unemployed.
Placements on the YES can last from upwards of 2 weeks
Further information is available at: http://www.nidirect.gov.uk/yes
Protocol
13. The protocol for delivering social requirements for work opportunities and skills training in construction services contracts is includes at Annexe 1.
Guidance
14. Guidance on implementing social requirements for work opportunities and skills training in construction services contracts is included at Annexe 2.
Implementation
15. CoPES are to implement the revised requirements from xxxxxxx.
Recommendations
16. PPG-CWS members are asked to ………
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DF1/12/xxxxxxx
Government Procurement Services - Meetings - Procurement Practitioners Group Construction Works and Services Sub-Group - Papers 2012
Annexe 1 CWS (2013)xx
Protocol
The protocol for including social requirements for work opportunities and skills training in construction services:
− The CA/PM advises the client on the requirement for social clauses and ensures that the 3 social requirements are included in the services contract. On the requirement for the unemployed and training the CA/PM calculates the number of placement weeks and includes it in the contract documents (target requirement)
− At contract award the CA/PM provides early notification to enable DEL to forward plan to meet impending demand for scheme placements (see notification of contract award form in Annexe 3)
− On appointment the EO / Consultant contacts the DEL Employment Manager and agrees an initial work opportunities and skills training programme to deliver the target placement weeks included in the contract. Within 3 weeks of appointment the contractor submits this programme to the CA/PM using Table A Annexe 4.
− On appointment the EO / Consultant submits completed copies of Table B for its Professional Trainees and those of its First Tier Sub-consultants (with 20 or more employees).
− Within three weeks of appointment the EO / Consultant arranges for student placements and submits Table C to the CA / PM.
− The EO / Consultant subsequently provides the CA/PM with a monthly update report on the delivery of its work opportunities and skills training programme against the contract targets (Tables A, B & C in Annexe 4)
− As part of the contract management procedures the CA/PM monitors the delivery of the work opportunities and skills training programme against the contract target(s).
− The CA/PM reports on the delivery on the programme in the Post Project Review (Achieving Excellence PPR)
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DF1/12/xxxxxxx
Government Procurement Services - Meetings - Procurement Practitioners Group Construction Works and Services Sub-Group - Papers 2012
Annexe 2 CWS (2013)xx
GUIDANCE FOR IMPLEMENTING SOCIAL REQUIREMENTS IN SERVICES CONTRACTS
Implementing social requirements for work opportunities and skills training in construction services contracts, in line with the protocol in Annexe 1, is illustrated in the following example.
A project involves a contract for construction services to be provided by a PM lead Integrated Consultant Team (ICT). The contract has an estimated fee value of £950K over a 42 month contract period would require:
i. The requirement for the unemployed and training is 8 weeks per £125K of fee value. The Contracting Authority (CA/PM) will calculate the requirement and set this into the ITT documents. The total placement weeks is calculated as:
Placement weeks = Contract value (£) / £125,000 x 8 weeks
= 950/125 x 8
= 61 rounded up to nearest whole no. of weeks.
The Consultant (Economic Operator) must agree a programme of placements with the DEL Employment Manger that add up to the total contract requirement.
Contracting Authorities must provide DEL with notification of social requirements at contract award stage which will allow DEL to consult with its various scheme providers to meet demand as effectively as possible. The EO / Consultant should contact DEL as soon as is practical to agree the exact breakdown of the target placement weeks into individual placements (requirement i).
The following preference hierarchy is used to determine the breakdown,
− 26 week GAP placement
− 26 week StW placement
− 8 week Tfs
− 8 week StW
− 2 week or more YES placement
So, subject to availability and DEL’s policy preference, the preferred breakdown of placements to deliver the contract target of a total of 61 placement weeks would be.
2 x 26 week GAP = 52
1 x 8 week TfS or StW = 8
Remaining 1 week = 1
Total = 61
The remainder is 1 week which cannot be meet from Tfs, Stw or YES because these schemes have minimum placement durations of 8, 8 and 2 weeks respectively. If GAP placements are not available and depending on scheduling 26 week StW placements may have to be used. Some of the alternative breakdowns are illustrated below.
1 x 26 week GAP = 26
1 x 26 week StW = 26
1 x 8 week StW or TfS = 8
Remaining 3 weeks on YES = 1
Total = 61
2 x 26 week StW = 52
1 x 8 week StW or TfS = 8
Remaining 3 weeks on YES = 1
Total = 61
1 x 26 week GAP = 26
4 x 8 week StW or TfS = 32
Remaining 3 weeks on YES = 3
Total = 61
DEL would then propose to use a 3 week placement on the YES.
1 x 26 week Stw = 26
4 x 8 week StW or TfS = 32
Remaining 3 weeks on YES = 3
Total = 61
The EO / Consultant uses the breakdown provided by DEL to complete and submit the first version of its work placement and training skills programme (submitted using Tables A, B & C of Annexe 4). The placement weeks should be scheduled to be delivered pro-rata over the contract period in this case 42 months. It is acknowledged that although it may not be possible to initially accurately forecast availability over the 42 month contract period the programme will be constantly developing as the EO / Consultant reports provides monthly update reports on delivery against the contract target.
The candidates selected would be placed with the EO / Consultant including if desired its ICT supply chain members as scheduled in the programme to be completed within the 42 month contract period. The EO / Consultant include details in Table A Annexe 4.
ii. Requirement for professional trainees: 5% of workforce of the Integrated Consultant Team[5] to be student / graduate / associate members of a relevant construction related professional institution working towards corporate status. The EO / Consultant submit a PAYE list indicating it has 60 employees. So 5% of 60 = 3 trainees whose details the consultant will include in Table B Annexe 4. In this case the EO / consultant does not employ any first tier sub-consultants (CTMs) with more than 20 employees. If the consultant has lees than 3 trainees it will prove proposals on how it intends to address the shortfall.
iii. Requirement for students; The contract value of £950K is between £500K and £1000K so: One 40 week student placement is required. The EO / consultant includes details in Table C Annexe 4.
Table A (column D) below illustrates some further discrete examples illustrating the preferences for the breakdown of placements. The preferred make up of the target placement weeks is indicated in column D of Table A, however the exact make up and scheduling of placements will depend on availability of candidates and DEL’s policy preference for its scheme(s).
A / B / C / D / E / FContract (Fee) value / Typical Construction Project value[6] (Million) / Unemployed -
Required Duration in placement weeks / Make up of placements
No off placement weeks / Trainees - % of workforce / Students – Number of 40 week placements
Up to £125K / Up to £2.5 / Nil / Nil / 5% / Nil
£125K / £2.5 / 8 / 1 x 8 StW or TfS / 5% / 1
£250K / £5 / 16 / 2 x 8 StW or TfS / 5% / 1
£375K / £7.5 / 24 / 3 x 8 StW or TfS / 5% / 1
£500K / £10 / 32 / 1 x 26 GAP & 1 x 6 YES / 5% / 1
£625K / £12.5 / 40 / 1 x 26 GAP & 1 x 8 StW or TfS & 1 x 6 YES / 5% / 1
£750K / £15 / 48 / 1 x 26 GAP & 2 x 8 StW or TfS & 1 x 6 YES / 5% / 1
£875 K / £17.5 / 56 / 2 x 26 GAP & 1 x 4 / 5% / 1
£1000 K / £20 / 64 / 2 x 26 GAP & 1 x 8 StW or TfS & 1 x 4 YES / 5% / 1
£1125 K / £22.5 / 72 / 2 x 26 GAP & 2 x 8 StW or TfS & 1 x 4 YES / 5% / 2
£1250 K / £25 / 80 / 3 x 26 GAP & 1 x 2 YES / 5% / 2
£1375 K / £27.5 / 88 / 3 x 26 GAP & 1 x 8 StW or TfS & 1 x2 / 5% / 2
£1500 K / £30 / 96 / 2 x 26 GAP & 2 x 8 StW or TfS & 1 x 4 / 5% / 2
Table A - Examples of the requirements applying to various contract values.
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DF1/12/xxxxxxx
Government Procurement Services - Meetings - Procurement Practitioners Group Construction Works and Services Sub-Group - Papers 2012
Notification of Contract AWARD (Construction Services) to DEL
The following information should be sent to the DEL Employer Contact Manager, by email to the Validation Mailbox: , immediately at Contract Award to provide early warning of impending requests for participants for the DEL Approved Scheme for work experience, or employment opportunities and the DEL Training for success (TfS) scheme.
To: DEL Employer Contract ManagerNotification of Contract Award – Social Clause Requirements (early warning)
FROM:
Contracting Authority(CA)
CA Contact / Tel: / Email:
Tel: / Email:
Client Department
PROJECT/ CONTRACT DETAILS
Project Name:Project Ref:
Contract Award Date:
Contract Start Date:
Contract Completion Date:
Management details
Project Manager / Tel:Email:
EO / Consultant / Address
Tel: / Email:
SOCIAL CLAUSE REQUIREMENTS