LHC Framework Guide: Off-site Construction of New Homes

FRAMEWORK AGREEMENT GUIDE For offsite construction of new homes

Trusted procurement for better buildings and homes

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WHY WORK WITH LHC? These are the key reasons to work with LHC whether you’re a public sector organisation looking for procurement solutions or a supplier with products or services to provide.

Knowledge and experience of procurement Our organisation began half a century ago and over five decades we’ve developed and shaped our service to meet the evolving needs of our clients.

Recognised technical expertise Our technical expertise is built on continuous research by our team of technical specialists who consult with clients on the outcomes they need and suppliers on the range of available solutions.

Commitment to better buildings and homes Our ultimate goal is helping our clients deliver better environments for the communities they serve, a goal we support through our frameworks, that address every aspect of quality, and our selection of the most appropriate suppliers.

Fast and efficient procurement Once LHC Appointed Companies are established for a framework, the process of calling off projects and commissioning work is very efficient. Terms and rates have been agreed and even when a mini competition is required, the majority of contractual arrangements have already been finalised. Project work can start quickly.

Financial gains Working with LHC frameworks gives suppliers access to construction, refurbishment and maintenance projects of over £200m each financial year. Clients who spend more than £200,000 on two or more frameworks in a year will benefit from a share in the LHC operating surplus we return to Members.

Please read this guide in conjunction with the LHC guide to understanding and using pre-tendered frameworks, available on our website.

WWW.LHC.GOV.UK/MEMBERSHIP

03

About this framework agreement The LHC Framework Agreement for offsite construction of new homes (design, manufacture, supply and erection) is available to public sector organisations in England, Wales and Scotland.

Fully OJEU compliant, it provides local authorities, housing associations and other social landlords across England, Wales and Scotland with easy access to offsite manufactured volumetric and panelised building systems for the use in new home build projects.

Suppliers on the framework have developed standard house types which help clients avoid design issues and save time and money, as the houses already comply with Building Regulations, the Housing Quality Index (HQI) and funding authority requirements.

House types include: -- Two storey, two bed, three person detached, semi-detached or terraced houses -- Two storey, two bed, four person detached, semi-detached or terraced houses -- Two storey/two and half storey, three bed, five person detached, semi-detached or terraced houses -- Two storey, three bed, six person detached, semi-detached or terraced houses -- One bed, two person apartments -- Two bed, four person apartments.

This framework arrangement has been established in strict compliance with UK Public Sector procurement rules for use by public sector bodies in the UK as detailed in the LHC buyer profile (www.lhc.gov.uk/buyerprofile) and as specified in the Contract Notice: -- 2014-OJS091-159133 London -- 2014-OJS091-158866 England -- 2014-OJS091-159132 Wales -- 2014-OJS091-159062 Scotland These were published in OJEU in May 2014 with 6 successful tenderers appointed in November 2014.

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About the tender The tender process for this framework followed LHC’s Open Procedure which eliminates the Pre-Qualifaction Questionnaire stage. Suppliers were given free and open access to the tender and offer documentation and answered Suitability Assessment Questions.

Selection criteria -- Financial information -- Business and professional standing -- Health and safety policy and capability -- Equal opportunity and diversity policy and capability -- Environmental management policy and capability -- Quality management policy and capability -- Sustainability and social inclusion policy requirements

-- Experience of working in public sector and partnering -- Membership of professional bodies and/or trade associations and technical associations -- Managerial and technical support, sales, marketing and supporting information -- Technical and professional ability -- Providing the full range of essential components on offer -- Conformity to the LHC specification together with the expertise and quality of deliver

05

From Suitability to call-off contract The diagram below shows the process a supplier completes to become an LHC Appointed Company and to be awarded a contract (or “call-off”).

It also highlights the support LHC provides once a project is live.

On frameworks using LHC’s Open Procedure to determine Appointed Companies, suppliers have open access to the tender and offer documentation (ITT) and are asked to respond to Suitability Assessment questions covering: -- Company Standing -- F inancial standing, employment practices, environmental awareness, capacity and geographical rage -- Installation capability -- Technical capability -- Quality systems management capability

Suitability Assessment

-- Experience of supply to the public sector -- Specifications for products and services -- Testing and certification -- Service capability -- Pricing -- Sustainability and social value A detailed evaluation report is prepared which shows for each tenderer a: -- Weighted score under each heading -- Value for money index -- Company or companies recommended for appointment

Appointing companies

Our aim is giving LHC clients and Members a choice of Appointed Companies to work with. Numbers vary per framework in line with anticipated demand and subject to the number of qualifying suppliers.

-- All suppliers are notified of the results and the unsuccessful tenderers can choose to have a debrief to help improve future offers -- Contract Award Notices are published in the Official Journal of the European Union (QJEU) and on the LHC website

Awarding contracts “Call-offs”

When buyers are ready to choose a supplier for an individual project they should start the process by talking to LHC. LHC will coordinate either a direct award, if there is a single supplier on a framework, or a mini-competition if there are several.

-- A mini-competition involves all capable LHC Appointed Companies -- A direct award is made to a single company, with justifiable reasoning, without reopening competition

LHC provides support and technical assistance throughout the life of a project, as required:

Works commence/complete

-- To ensure high quality standards are maintained -- Service levels are fulfilled -- Delivery periods are met LHC also welcomes discussion and feedback on completion of projects

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Award weighting criteria Award weighting criteria are established on each individual framework and can be flexed to a buyer’s individual needs.

Public sector officers can obtain a copy of the full LHC evaluation report.

15% Production qualitative assessment Manufacturing facilities were assessed for the quality of construction, finish and operation including: -- The quality of the frame manufacture and compliance with applicable standards

15% Essential requirements -- Product range to meet the LHC specification -- Quality of delivery and expertise -- Structural standards including fire, acoustic and fabric

-- Correct installation of insulation, compliant with relevant standards and meeting performance requirements for Fabric Energy Requirements

Pricing Prices were tendered using two different methods of analysis for each workstream: -- Workstream 1: Four standard house types were costed for against provided drawings and a Design For Manufactured solution with pricing for an apartment block of 48 units over four stories

-- Dimensions within manufacturing and site tolerances

-- Workstream 2: Two contract scenarios where priced, one for a housing development of 12 units and the second for a three storey apartment block containing 24 one and two bed units

-- Windows and other materials in the system meet specification, comply with the relevant standards and are installed correctly to specification -- U nits provided with weather protection from completion of manufacture to on-site delivery

40% Qualitative assessments Administrative and management services were assessed using responses given within the offer document.

-- Site supervision, meetings

Companies also participated in depth interviews addressing the whole framework and including:

-- Cost management service

-- Project planning and management

-- Funding requirements

-- Supplier’s core project team

30%

-- Design services

-- Building information modelling

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The framework in action As well as providing compliance, quality and best value to clients, the LHC Framework for off site construction of new homes supports a streamlined process from the award of a contract (call-off) to completion of a project.

Confirmed competitive market prices Prices in place at call-off stage maintaining best value as established in the evaluation stage.

Quick and efficient procurement Speedy access to LHC Appointed Companies and the options of a mini-competition or direct award to enable the final selection of a supplier or supplier(s) for a project.

Instant access to project data Continuous access to information throughout the procurement process through the suppliers’ on-line portal.

High quality standards Standards of quality maintained throughout project through monitoring in accordance with ISO 9001 Quality Management System.

Service levels guarantee Guaranteed service levels from inquiry to supply providing peace of mind that services and works will be conducted effectively.

Quick project starts Enabled by pre-tendered procurement that reduces the cost and time input by public sector organisations and speeds up their access to companies.

Advice on design and regulatory compliance Guidance on interpretation and conformity to statutory regulations and planning requirements.

Delivery periods guarantee Guaranteed delivery periods that ensure services and works are delivered to meet work schedules.

Details of each workstream There are two workstreams in the LHC Framework for off site construction of new homes. One of these addresses volumetric building systems and the other covers panelised building systems.

Workstream 1: Volumetric building systems

Workstream 2: Panelised building systems

Volumetric building systems are factory produced three-dimensional units that are transported to site for fixing together.

Panelised building systems are factory produced flat panel units that are transported to site for assembly.

To meet the requirements of the framework the delivered units are: -- Fully finished internally with the option of external wall and roof cladding systems that can be factory fitted -- Available with internal fixtures and fittings either specified by the client or selected from a range provided by the manufacturer -- Pre-installed with internal services that are tested prior to on-site commissioning by the supplier -- Designed to comply with structural, fire, acoustic and thermal Building Regulations

These units form the structure of the building wall, floor and roof structure and can be made of timber, light gauge steel, concrete or structurally insulated panels (SIPs).

To meet the requirements of the framework the delivered units are: -- Provided with external wall thermal insulation with the option of wall linings, windows and external cladding being installed in the factory -- Compliant with the requirements for fire safety during construction (if they are timber panelised building systems) meeting HSE and Fire and Rescue Service’s safety requirements

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Product and appointed company benefits The products offered in workstreams 1 and 2 offer multiple benefits to clients, who can also be confident in consistently high standards of delivery provided by LHC Appointed Companies.

Product benefits

LHC Appointed Company benefits

Volumised building systems and panelised building systems offer the following benefits to clients:

Companies on this framework provide:

-- Compliance with the latest British and European Standards and holding the CE Mark -- Compliance with the latest regulations – both volumetric and panelised systems have been designed to meet the latest editions of the Building Regulations including: structure (Part A), fire (Part B), acoustic (Part E), conservation of fuel and power (Part L England, Part L Wales) -- Enhanced acoustic performance between dwellings for separating walls and floors, up to eight decibels better than Building Regulations -- Minimisation of energy costs for residents – reduced thermal bridging, improved air tightness and A-rated windows, through fabric energy efficiency

-- Confidence in quality of workmanship – companies use approved and trained installers to carry out site works -- Assurance of quality, environmental, and health and safety management system requirements (companies have been evaluated to ensure management systems are in place) -- Time and cost savings leading from quicker starts – provision of design services at the feasibility stage through Design For Manufacture (DFM) to deliver the client’s design in the most efficient manner -- Confidence of conformity to statutory regulatory requirements – appointed companies offer design advice and support on the interpretation and conformity to statutory regulatory requirements including meeting funding requirements.

-- Legally and sustainably sourced timber used in systems – timber sourced through sustainably managed forests supported by verified due diligence and risk assessment requirements regarding the chain of custody and compliance with the EU Timber Regulations No. 995/2010:2013 -- Long term quality assurance and protection against defects – all systems are suitable for gaining NHBC or equivalent new build warranty for a minimum of 10 years

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Systems offered

System Type

Timber

Rollalong

System Type

Steel SIPS Structure Frame Application

SIPS Structure Frame Application

Lowrise* Medium**

Timber

Lowrise* Medium**

Enhanced Performance Offered

Acoustic

Factory Fitted Options

Dry lining

Enhanced Performance Offered

Acoustic

Cladding Offered Factory Fitted

Walls

Windows

Roofing

Cladding

Renewable Energy Solutions Offered From Factory

ASHP

Energy

STHW PV

* Up to 3 storeys ** 4 to 7 storeys

Energy

MI-Space

All panelised systems come with factory fitted insulation to meet notional building requirements as set in the relevant building regulations.

Clients can choose their own window and cladding suppliers or select from a range of suppliers provided by the manufacturer.

LoCal Homes

All volumetric units come fully finished internally, with kitchens, bathrooms, all electrics, plumbing, heating system and dĂŠcor.

CCG Scotland

Workstream 2: Panelised Systems

F1 Modular

Workstream 1: Volumetric Units

Stewart Milne Group

This LHC Framework lets clients choose from a range of system types, all with enhanced performance offerings for energy use and acoustics.

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Appointed companies Workstream 1

Workstream 2

F1 Modular Ltd

Rollalong Ltd

Appointed for areas:

Appointed for areas:

A

B

C

D

E

F

G

H

I

J1

J2

J3

M1

M2

B

Accord Housing Association Trading as Local Homes Appointed for areas

C

B

South West England

D

East of England

E

East Midlands

F

West Midlands

G

Yorkshire & Humber

H

North West England

I

North East England

J1

South Wales

J2

Mid Wales

J3

North Wales

M1

South Scotland

M2

North Scotland

J3

D

E

For contact details visit: lhc.gov.uk/mispace

rollalong.co.uk

F

G

H

I

J1

mi-spaceuk.com

J2

J3

CCG Scotland Ltd

accordgroup.org.uk

C

J2

C

Regional lots

South East England

J1

B

f1modular.co.uk

B

C

A

For contact details visit: lhc.gov.uk/accord

London

Appointed for areas

For contact details visit: lhc.gov.uk/rollalong

For contact details visit: lhc.gov.uk/f1

A

Mi-Space (UK) Ltd

Appointed for areas A

B

C

D

E

F

G

H

I

M1

M2

For contact details visit: lhc.gov.uk/ccg

M2

c-c-g.co.uk

Stewart Milne Group Ltd Appointed for areas

M1

I H

A

B

C

D

E

F

G

H

I

J1

J2

J3

M1

M2

G

For contact details visit: lhc.gov.uk/stewart stewartmilne.com

J3

E F

J2

D

J1 A C

B

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Framework agreement for off-site construction of new homes Volumetric buildings systems (workstream 1)

Panelised building systems (workstream 2)

The off-site construction framework agreement for England, Wales and Scotland is effective from 1st November 2014 until 31st October 2018.

England and Wales enquiries: 01895 274850 Scotland enquiries: 0131 306 0176

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