Public Construction Procurement Trends report 2009-2014 by W Menteth

Public Construction Procurement Trends 2009-2014 Project Compass CIC Walter Menteth, Owen Oâ&#x20AC;&#x2122;Carroll, Russell Curtis and Bridget Sawyers

Foreword

This report evaluates UK public sector architectural design procurement for commissions that come within the remit of the European Union Directive 2004/14 and its threshold values. All applicable services and works notices published within the Official Journal of the European Union (OJEU) between Q4 2008 to Q3 2014 have been captured where the data contains the relevant Common Procurement Vocabulary (CPV) codes and or references that a relevant architectural design service has to be provided within descriptions of a projects requirements. Project Compass has captured around 11,001 OJEU notices, generating entities to cover all notice types in all procedures and under all instruments with frameworks, lots and their contents. 52 data fields analyse, recorded and categorized descriptions, numbers, quanta, criteria, requirements, conditions, thresholds, constraints, objectives, dates and values. It has generated a detailed correlated analysis of differing notice types, procedures, lots and awards. Finally the analysis has been curated in order to correct spelling mistakes, errors and variations in naming conventions and to review, resolve and edit entities were there have been obviously erroneous entries in the originating data. The data has however excluded entities in exceptional circumstances where data entries have been irreconcilable.

The methodologies otherwise are detailed in Section 13 ‘About the data’ of this report. The UK construction industry has an annual turnover of more than £100bn representing almost 10% of UK GDP, with some 40% of this being spent in the public sector. The majority of these projects directly and to a greater extent indirectly employ architects. Project Compass CIC intend this to be the first of their publications on UK trends which report on the current market, its progression, impact and in due course the outcomes of reform. This will contribute towards improving knowledge among commissioners, construction professionals and industry that can inform the important and necessary changes to procurement culture and its application in practice that will also be required to accompany the legal reforms. The legal framework The primary legislation covering UK competition practice for architects in the public sector is determined at European level. The most relevant being the Public Directive 2004/14/ EC (The Classical Directive), although the Utilities Directive 2004/17/EC also has occasional relevance. The Remedies Directive 2007/66/EC concerning the award of contracts and their review procedures also applies.

“The original aim of the European Union Directive was to create a larger and more open market with a reasonably level playing field in which small, medium and large practices could compete fairly. It is clear that there has been an increasing bias placed within the OJEU notices which has distorted equality of opportunity, which combined with an increasing lack of transparency is undermining confidence in them and making the procedure to participate ever more expensive. The result is unsustainable for the architectural profession. This report is most timely and welcome, and hopefully politicians and those who should be supporting the industry and the professionals working within it will take notice and act appropriately.”

Ian Ritchie CBE, Director Ian Ritchie Architects

In compliance with EU Treaty obligations these endeavor to legally enshrine the principles of transparency, equal treatment and non-discrimination. The EU legislation is then transposed and adopted into UK law. For example in England, Wales and Northern Ireland the Classical Directive is transposed through ‘The Public Contract Regulations 2006’ and in Scotland ‘The Public Contract (Scotland) Regulations 2012’. The other Directives and Remedies Directive have also been transposed. For central Government contracts The Regulations are supplemented by government guidance notes known as Procurement Policy Notes (PPN’s). For local authorities and others this guidance on implementation is most frequently imposed through their orders or regulations. Gold Plating

2014 - 2015 may be remembered as a landmark years for procurement. New legislation EU Public Procurement Directive 2014/24/EU reforming the previous directive was adopted in Febuary 2014. Through repeal of the previous regulations this will be transposed into the UK Public Contracts Regulations 2015, which are anticipated to be placed before Parliament in spring 2015. Future implementation of eProcurement as specified within Directive 2014/24/ EU, adoption of The Public Contract Regulations 2015, and the provision of Contracts Finder, the proposed UK national procurement portal might, it is to be hoped, contribute towards significant improvements in transparency, access, proportionality and practice, as well as many of the other important issues highlighted by this report.

This law is complex, lacking in transparency, difficult to comprehend and has been the cause of much criticism. In the UK in particular confusion in interpretation and risk averse practices have frequently lead to inappropriate, disproportionate, discriminatory application and gold plating of requirements that has had significant economic consequences with impacts on costs, access, growth, employment and sustainability. Equally the architectural profession has not been conversant with this complexity to their own detriment and has served to marginalise Architect’s power to influence betterment.

Headlines

Over 30% of all the contract notices captured have not been concluded by an award notice. This trend is getting worse and represents significant waste for all.

Out of the 6 procedures currently available for the appointment of an architect 81% of contract notices are restricted procedures.

Around 10% of all award notices declare no range or contract values.

There have been only 2 open design contests in the UK since 2008.

There are clear issues with market transparency.

48% of opportunities are now in ‘hidden architecture’ where the facilitator, developer or contractor is asked to provide the design services, with architects as tier 2 sub- contractors. This has reduced open competition, access and choice for the public.

Service contract notices and service awards are in decline. These represent the major opportunities for individual awards to project specific briefs. The large majority of architectural contract notices and awards however are to be found in contracts requiring multi-disciplinary teams (architecture+).

Proportionately more work is now typically to be found in lots, with the greatest numbers of opportunities per notice to be found in architecture+. 27% of service contract appointments have been onto frameworks and this trend is increasing.

The time taken by procedures had by 2013 accelerated to 221 days. This compares to the EU average of 133 days.

The North East region made only 58 awards in the period, with none in 2010. For 2011 2 hub contract notices in Scotland with 1 lot each and values totalling £1.4bn significantly skew UK results.

In works and service contracts 4,000 firms had won between 1 and 10 awards and made up 94.5% of all winning firms. However this only amounted to 56.8% of all the awards. The remaining 5.5% of firms won 43.4% of all awards. For the direct appointment of architects the numbers and values of opportunities are in decline whilst those on offer are being increasingly aggregated.

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Contents

Table of Content

Summary trends in architectural contracts...................................................... 6

Contract notices, contract award notices and award numbers..................10

Contract notice procedures - 2013....................................................................16

How many lots and architectural opportunities?...........................................20

What are the procedures?...................................................................................24

Who are the clients?.............................................................................................28

Which sectors?......................................................................................................34

8 Frameworks...........................................................................................................38 9

Regional distributions..........................................................................................40

How long are procedures taking?......................................................................48

Which contractors are winning?........................................................................52

Which architects are winning?...........................................................................56

About the data.......................................................................................................60

About Project Compass CIC...............................................................................62

Project Compass CIC directors..........................................................................63

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Summary trends in architectural contracts

How many opportunities are there out there? There are a huge number and variety of architectural opportunities. The most visible and transparent are those sought through either ‘restricted’ or ‘open’ competition processes that are held for the appointment of an architect’s services directly for a specific project. Typically a ‘restricted’ procedure will use a Pre-Qualification Questionnaire (PQQ) for shortlisting candidates through the first round. This will be followed by an invitation to tender (ITT) at the second round. The options, criteria and flexibility that can be used for selecting candidates through the stages are pre-determined. Contract Awards can also be made using various instruments in addition during the competitive stages, such as lots where a single call might be used to invite multiple tenders across various contract sub-categories; framework calls where the appointment is onto ‘a contracted list’ from which the consultancy is called off by the client for specific projects as and when they occur. Such framework ‘call offs’ from the contracted list are often done with mini-competitions, with a consultancy competing against others on the list, and frequently doing so with another fee bid and design stage, in effect creating a further stage in the selection procedure. In such cases the overall numbers of such opportunities are not as visible, and where consultancies 6

are actually ‘called off’ frameworks the numbers of opportunities which become realised at a commissioning stage are not publicly transparent. Design contests are a distinct and different procurement regime, are issued under a separate type of procedural notice with anonymous submissions selected on design quality by a jury comprising a minimum of one third professionals qualified to make such selection. Design Contests are legally provided specifically for architectural and planning work. Most invites in service and works contracts are for multi-disciplinary teams (“architecture+”). In terms of notice numbers in 2013, 53% - the largest market share - was for architecture found within works contract notices. 49% of all works and services contracts for architectural service are sub-contracted under a prime contractor. Typically this occurs in construction management whenever for example a facilitator, developer or contractor is invited to deliver the entire works package, whether finance, design, build, maintain and manage or any permutation thereof. Therefore the variety of available competition procedures, whether they are open or restricted, what instruments might be applied to the procedures, how selection is made and whether this leads directly to commissioning stage are variable.

This Project Compass CIC research uniquely captures the total market numbers involved under Directive 2004/14/EC, across works and services and lots, with the exception of those being called off frameworks and where data entries have been irreconcilable. This improves market transparency, significantly enhances understanding and ensuring the exceptional value of this analysis. It enables Project Compass CIC to offer an analysis based on a highly accurate number of the identifiable opportunities within the market. Project Compass CIC captured 5,098 construction contract notices, 3,548 award notices and 15,524 awards to 4,233 firms in the period Q1 2009 to Q2 2014. Of all the contract notices captured just over 30% have not been concluded by an award notice, and this trend is getting worse. This represents significant waste for all. The lack of legal enforcement upon commissioners to issue award or discontinuation notices following a contract notice undermines the maintenance of a transparent market. Project Compass CIC would also note there are innumerable variances in the practices adopted for the completion of notices generally, from poor spelling through to entry of erroneous codes, descriptions and omission of fields. Around 10% of award notices declare no range or contract values. There are clear issues with market transparency.

Summary trends in architectural contracts

Public sector service contract notices and service awards are in decline despite a short reversal and uplift in 2013 Q3-Q4. These represent the major opportunities for individual awards to project specific briefs. The large majority of architectural contract notices and awards however are to be found in contracts requiring multidisciplinary teams (architecture+). Proportionately more work is now typically to be found in lots, with the greatest numbers of opportunities per notice to be found in architecture+. This is a general trend, although the numbers of all contract notices their values and the numbers of awards made, particularly in 2014 Q1 - Q2, have declined. Overall only 51% of the work in architecture and architecture+ is transparent to open market competition, where the descriptions within the notices call for architecture in works or service notices. Furthermore from a three year sampling it is apparent that in the public sector 46% of contract and lot opportunities are now in â&#x20AC;&#x2DC;hidden architectureâ&#x20AC;&#x2122; where the facilitator, developer or contractor is requested to provide the design services as part of the package, with architects working as tier 2 subcontractors. Market access for architects is circumscribed by such obscurity, lack of descriptions and poor transparency.

81% of competitive procedures in the UK between Q1 2009 to Q4 2013 were restricted 2 stage procedures.

the number of calls concluding in awards rising to 57, valued at £117.3m, in 2013 compared to 7, valued at £3.1m, in 2012.

Of the eight UK design contests held over this entire period for architecture or architecture+ only 2 have been ‘open’ calls. Over the same period the proportion of design contests held in other countries was as follows: France 26%, Germany 13%, Belgium 6%, Austria 33%. Within the UK negotiated procedures accounted for only 2% of all procedures and open procedures accounted for 12% whereas over the same period the proportion of negotiated procedures in other countries was as follows: France 15%, Germany 83%, Belgium 23%, Austria 34%.

An average of 27% of service award notices for architecture and architecture+ over the period are now for appointments onto frameworks, and this trend has risen from 22% by almost 10%, most appreciably since Q1 - Q2 2011. 93% of all framework works award notices make no endeavor to report the values of the awards. For frameworks the failure to publish service award notice values is 61%.

Regional or local authorities with 40% of contract notices are the largest procurers by numbers of notices, with 53% of the reported award values but only 23% of actual awards. Since Q3 - Q4 2012 their activity has been in steep decline. Public law bodies issued 36% of contract notices and 61% of awards notices, however only 29% of these reported values. The most active sectors over the period were ‘general public services’ with 23% of award notices, 62% of awards and 59% by market value. Housing with only 7% by value and 13% by numbers of awards shows an apparent paucity in architecture and architecture+. Education has been the only sector to buck the declining trend and has seen

There are considerable regional variations in the numbers and values of notices being issued. The North East appears to have issued only 58 awards over the entire period, with none in 2010. In 2012 and 2013 the East Midlands recorded no values in its award notices. Independent policies adopted by the Northern Ireland Executive, Scottish Parliament and Welsh Assembly would appear to have had a material impact in certain aspects of the procurement market. The most notable of these have been the Scottish procurement hubs with 2 notices issued in 2011 each having 1 lot with a combined value of £1.4bn. The award numbers being reported regionally declined 52% overall in 2013, with London experiencing an 87% decline over the period as a whole and Scotland an 87% decline. This decline appears consistent into Q1 - Q2 2014. In all regions with only 3 exceptions the numbers of notices ©2014 Project Compass CIC

and their values appears to have declined steeply in Q1 - Q2 2014. There is a decline in both the numbers of awards and their individual values. In England the aggregation of procurements within single notices covering wide geographic areas, different building types, clients, values and services has grown. The largest to date was issued in 2010 and had 872 award opportunities within a single notice. The expense in assessment and the cost to those tendering often appears ill considered when many of these procurements would appear to speculatively inflate the potential values of likely works (and thereby reducing potential access for smaller practices), as the hubs endeavor to sell their services to any named party on their list of potential clients. This process can be seen to inflate values in a discriminatory and arbitrary way. In 2010 procedures took on average 277 days but by 2013 this had declined to 221 days. This compares to the EU average of 133 days. Although the acceleration of procedures is to be welcomed the evidence suggests this might have been achieved by capping and reducing the time taken by the very longest procedures only, whilst the greater majority remain consistently averse to being accelerated. There is also an apparent correlation between the time being taken and the numbers of notices being issued. This does

Summary trends in architectural contracts

not suggest a general improvement in practices which is something that might be welcomed in future. When Project Compass CIC investigated the numbers of awards being won by firms in all works and services contracts over the period it was found that for all awards, 4,000 firms had won between 1 and 10 awards and made up 94.5% of all winning firms. However this only amounted to 56.8% of all the awards. The remaining 5.5% of firms won 43.4% of all awards. The top 10 firms comprising 0.24% of the market won on average 127 awards (ranged between 154 - 90), and they captured 8.17% of the market. No architects were present among the top 10. In service awards the numbers of firms winning awards shows a very similar profile. 1,496 firms or 65.9% of all those firms winning awards, only won a single award (or 22.3% of all awards). The 2,155 firms who won from 1 to 10 awards and comprised 95% of all firms winning awards won only 59% of all awards. 4.1% of firms won 41% of all service awards. Market reporting, transparency, procedures and practices, access and an inequitably discriminatory domination of the market by a tiny percentage of all competing firms are clear issues in the period Q1 2009 to Q2 2014 that are highlighted by this report.

Contract notices, contract award notices and award numbers

From Q1 2009 to Q2 2014 there were 5,098 contract notices issued containing architectural design in both works and services with 3,548 (just under 70%) award notices issued (Fig.2.1). Over the period 3,117 were works contract notices, while 1,981 were service contract notices.

These trends indicate increasing wastage shared between public commissioners and those tendering, and a lack of transparency in the reporting of outcomes. By discontinuation some notices are terminated, often unpredictably, others simply disappear, while evidence suggest there might be significant numbers of commissioners who fail to issue an award notice for contracts.

Over this period only 71% of all works and services contract notices calling for competition were concluded by a contract award notice. Overall the trend has worsened over the period, Following a contract notice there is no with Q1 - Q2 2014 having just over legal enforcement upon commissioners 60% of inconclusive contract notices to issue award notices, which i.e. there has been no award notice undermines maintaining and informing a publication (Fig. 2.2 & 2.5). Since fully transparent and competitive market. 2008 there have been proportionality few notices of discontinuation Numbers of Contract (Q1 2009 - Q2 2014 Numbers of contract (CN's)Notices & contract recorded cancelling a competition. 700

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The trends highlight issues. In Q1 - Q2 2011 more works award notices were made (101%) than contract notices issued. This and other variations are attributable to the time lag in the awarding of contracts, from the date calls were made in earlier quarters (Fig.2.2, 2.3 & 2.4 and Report Section 10). Following 2008 there was a peak in 2009 Q3 - Q4 in the numbers of works contract notices issued, to 455 (fig 2.3). This post 2008 stimulus is indicated by the increase in public sector activity which correlates with the recession which lasted from Q2-2008 until Q3-2009. The number of works contract notices has not returned to a comparable level subsequently and by 2012 Q1 - Q2 the level had dropped down to 218 notices. Over the period since 2012 Q1 - Q2 the trend in works contracts notices has shown a modest increase whilst the numbers of works award notices in this period has remained pretty constant. The numbers of all award notices has been in decline since 2011 Q1 - Q2 (Fig.2.5).

Works notices contain the largest numbers of opportunities for architects and these are mainly in contracts calling for multidisciplinary teams or in tier 2 sub-contract employment (Fig.2.3). In these tier 2 contracts the client has typically elected to aggregate project risk within a single procurement under a prime contractor held responsible for selecting their sub-contracted consultants. Most frequently these opportunities within works contracts are not visible by reference to architectural design services and so canâ&#x20AC;&#x2122;t easily be searched by the profession at large with the publicly available CPV code filters. Consequently the largest proportion of the market in the public sector by numbers of notices issued is not transparent to market competition. By numbers of notices and type of award the market share of architectural design in directly commissioned services, as opposed to those being aggregated into works contracts awards, has continued to diminish since Q3-Q4 2009 (Fig.2.5).

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fig. 2.5 Total contract notices (CN) and award notices (CAN) works and services (Q1-2009 to Q2-2014)

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From Q1 2009 to Q2 2014 the total number of awards issued within contract awards notices containing architectural design in both works and services was 15,778, with an average 4.45 awards made per award notice. Over the period 7,974 were awards made in works contract award notices, while 7,826 (49.6%) were service contract award notices. The trend in numbers of awards being made within individual notices has been increasing over the period for both works and service awards, although a steep decline becomes apparent by Q1 - Q2 2014 (fig.2.6). This aligns with governments intentions announced within 2012 to offer more numerous lots within contracts. This appears to have impacted at an earlier stage, from Q3 - Q4 2011, most notably in works contracts rather than within service contracts, where the increase only becomes clearly apparent in 2013, when the average number of awards made per award notice rose to a ratio of 7.27. There has however been a decline subsequently, from Q1 - Q2 2013 in works and Q3 - Q4 in services with the annual average projected for 2014 falling back to 3.5 (fig 2.7 & 2.8).

There is an increasing trend to bundle more contract opportunities (and awards) within single contract notices. Works contracts are the clear leaders in this trend producing on average twice the number of opportunities compared to Service Notices. This trend of bundling and aggregating potential work for architects within â&#x20AC;&#x2DC;Worksâ&#x20AC;&#x2122; contacts is increasingly being used by the public sector. Coupling this to a trend showing a declining number of award notices clearly nurtures a lack of competitivity and openness in the market. The ratio of contract award notices to the numbers of awards being made within each notice indicates that the trend in works notices has been towards issuing more awards within each notice, but that this trend is not matched consistently in service notices. The overall trend has been towards more numerous awards, but only within works notices. In service notices there has been, with the exception of Q3 - Q4 2013, a decline. The average number of awards made per notice over the period was 5.5, the average over 2013 was 9.0, but the average projected for 2014 drops down to 4.8. (Refer to section 11 & 12 for breakdowns by award winners).

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Contract notice procedures - 2013

This section evaluates the total number of 2013 OJEU advertised contract notices for both services and works, where the notice descriptions call for building design works having architectural opportunities under Directive 2006/14/ EC. It includes contract notices for works calling for prime design build contractors and contract notices for services addressed to other project disciplines or professional lead consultants which include architecture. 2013 saw a total of 500 contract notice calls for architectural design in both works and services. Over that year there was a total of 234 service contract notices for architects, 55 for architectural contracts, with 131 for architects as a named part of a multidisciplinary team (architecture+). For architects a further 66 notices were issued as works contract notices, 19 for architectural contracts, with 47 for architects as a named part of a consultancy team (architecture+) (fig.3.1).

Additionally there were 48 notices for architectural design within service contract notices under â&#x20AC;&#x2DC;other consultancy professionalsâ&#x20AC;&#x2122; headings (fig.3.3). Service notices however account for only 47% of the numbers of contract notices calling for architectural design. 266 of calls for architectural design were in works contracts, constituting the majority by 53%. 203 were called for under a prime contractor, with architects as sub-contractors. 98 construction management notices needing subcontracted architectural design services provided, at 51%, the largest number of such works notices (fig.3.4). 51% of the public sector was transparent for architecture and architecture+ when both works and services notices are taken together with only 252 notices (fig.3.2). 49% of notices whilst referencing architectural or building design in their outputs do not call directly for an architectural service appointment in the contract notices.

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Contract notices specifying architect - 2013

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CM, DEV PLANNING + ENG DEVELOPMENT PLANNING LANDSCAPE ARCH STRUCTURAL ENG 36%

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Architecture in all works and service contract notices - 2013

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Contract notice procedures - 2013

In works contract notices for example in construction management requiring the design, build and construction of a development, where architectural services aren’t tendered separately, some clients will marry those prime contractors on their works framework with architects from their own services frameworks. The architects might be expected to achieve planning stage approval and then be novated to the prime contractor, or retained in a separate function as the client’s agent through to a project’s completion. Therefore both contract notices for works and services are counted in this evaluation as the staged work of an architect in such cases is contractually separated.

Whilst this form of tier 2 work maybe appropriate in cases seeking to establish integrated teams working under a main contractor’s umbrella, architects remain as sub-contractors having no direct relationship to clients or other stakeholders. This process of selection also tends to favor a large practice whose identity is established and known. These subcontracts for architectural design services are not open, they reduce market access, opportunity and competition, and impact on stakeholder choice and quality.

Most typically those contracts where the architect is a tier 2 supplier are won on the basis of ‘who you know’ rather than the quality of outputs, making it difficult for many architects to access this tier 2 work.

Architecture in Service Contract Notices 2013

TRANSPORT PLANNING ENVIRONMENTAL ENGINEERING ENG + LANDSCAPE ARCH COST EST. ELECTRICAL ENG

TRANSPORT PLANNING, 1 ENVIRONMENTAL ENGINEERING, 1 ENG + LANDSCAPE ARCH, 1 COST EST., 2 ELECTRICAL ENG, 3 STRUCTURAL ENG, 3 LANDSCAPE ARCHITECTURE, 6 OTHER, 7 DEVELOPMENT PLANNING, 8 CONSTRUCTION MANAGE (CM), 16 ARCHITECTURE, 55

STRUCTURAL ENG LANDSCAPE ARCHITECTURE OTHER DEVELOPMENT PLANNING CONSTRUCTION MANAGE (CM) ARCHITECTURE ARCHITECTURE+ ARCHITECTURE+, 131

Architecture 60 70 80in

numbersNotices WorksNotice Contract 2013

100

ENG. + LANDSCAPE 110 120 130 140 ELECTRICAL ENGINEERING CM+DEVELOPMENT PLANNING FACILITY CONSERVATION STRUCTURAL ENGINEERING

ELECTRICAL ENGINEERING, 1

LANDSCAPE ARCHITECTURE

COST ESTIMATING, 1

CIVIL ENGINEERING

CM+DEVELOPMENT PLANNING, 3

OTHERS

FACILITY CONSERVATION, 4 STRUCTURAL ENGINEERING, 6

CM, DEV PLANNING + ENG

LANDSCAPE ARCHITECTURE, 7

ARCHITECTURE

CIVIL ENGINEERING, 11

DEVELOPMENT PLANNING

OTHERS, 13

ARCHITECTURE +

CM, DEV PLANNING + ENG, 16

fig.3.4

CONSTRUCTION MANAGEMENT

ARCHITECTURE, 19

Architecture in works contract notices - 2013

DEVELOPMENT PLANNING, 39 ARCHITECTURE +, 47 CONSTRUCTION MANAGEMENT, 98 0

Architecture in service contract notices - 2013

COST ESTIMATING

ENG. + LANDSCAPE, 1

fig.3.3

100

Notice numbers

Contract notice procedures - 2013

How many lots and architectural opportunities?

This section evaluates the total numbers of architectural opportunities in the public sector over the period Q1 2009 to Q2 2014 for standard contract notices in both services and works. It includes those notices having no lots, those with single or multiple lots in contract notices all of which call for architects, or for architects as a named part of a multidisciplinary team (architecture+). Service and works contract notices having lots Within works and services 9,841 opportunities for architects were advertised. 3,076 were calls within notices containing lots. 2,164 opportunities called from architects directly and 7,677 opportunities called for architecture+ (fig.4.1). Within this total number of potential appointments, 63% or 6,197 lie within works contract notices, and 37% or 3,644 lie within services contract notices. Architecture+, which includes architecture within a multidisciplinary team, is by far the leading sub category of tender opportunities and potential appointments. Within the 6,197 (63%) of potential appointments in works contracts, architecture+ accounts for some 82% of all such appointments. Architecture in comparison accounts for 18%, or 1,109 opportunities, within the lots for all services and works contracts. Working as part of a multi-disciplinary team provides the most opportunities.

Services and works contract notices having no lots There have been a total of 1,132 notices offering tender opportunities or calls for architecture, through services and works notices having no lots. These will generally offer a shortlist of operators, in this case generating 3,644 potential opportunities in architecture and architecture+ across the period. Of this total number, 50.5% or 1,840 lie within works contracts and 49.5% or 1,803 lie within services contracts. Within the above works and services notices, architecture+ accounts for some 75.3% of all such potential appointments. Working as part of a multi-disciplinary team provides the most opportunities. Architecture+ dominates The trend across both services and works notices shows that in both these cases over three quarters of the tender opportunities and potential appointments for architects lie in participation within a multi disciplinary team (architecture+) (fig 4.3). The total number of opportunities declined significantly in 2012 but showed signs of recovery in 2013 (fig.4.2). Works notices dominate 63% of all opportunities are offered in works notices.

ÂŠ2014 Project Compass CIC

Chart Title 10000 9000

2164

8000 7000

Numbers

6000 ARCHITECTURE

5000

ARCHITECTURE + 4000

7677

3000

fig. 4.1

622

Total numbers of notice calls and opportunities offered in architecture (Q1-2009 to Q2-2014)

2000 2454

1000 0

Calls

Opportunities

10000

400 9000

9000

8000 350

152

6000

Numbers

5000 4000

72 ARCHITECTURE

5000

4000 326 253

622

100 2000

3000

7677

2454 1000

0 2009

Calls

0 2010

ARCHITECTURE +

Architecture ARCHITECTURE Architecture ++ ARCHITECTURE

7677

266 622

223

fig. 4.2

192

2000

1000 50

2164

7000 42

200

150 3000

2164

800041

7000 300 6000 250

Chart Title Chart Title

Chart Title

450 10000

Annual numbers of opportunities offered in lots in architecture (Q1-2009 to Q4- 2013)

2454

Opportunities 2011 Calls

How many lots and architectural opportunities?

2012

Opportunities2013

‘Hidden Architecture’ - Patterns over 2011 Q1 -2013 Q4 By examining in some detail over 2,100 calls, over a three year period the following patterns and trends were found. Architectural opportunities fell into three categories. Whilst ‘architecture’ and ‘architecture+’ are clearly identified, works contract notices in particular were found with a ‘hidden architecture’, where notices implied or required architectural design, most notably using words such as ‘Design and Execute’ ‘Design and Build’ in the notices. These notices did not use the terms expressed for architecture or architecture+. Within services notices:

• 125 notices for architecture, - 27 of those within lots. • 297 notices for architecture+, - 80 of those within lots • 212 notices for ‘hidden architecture’, - 62 of those within lots Within Works Notices:

• 61 notices for architecture, - 8 of those within lots.

What stands out is that Architecture + provided 39% of all calls. ‘Hidden architecture’ in contrast provided 48% out of the total of all these notice calls. Of the sample extracted the hidden market provides some of the most notable in scale, value and range. These can only be accessed through a sub-contract (fig 4.3). This large portion of the public sector market for architectural services is not transparent or accessible to open competition by architects nor is it open to public choice in the selection of design consultants. Only 13% of the market has been accessible to architects appointed directly, with 39% accessible to architects as part of a team (architecture+). For architecture and architecture + the number of opportunities for architects per notice are greatest within works and services contract notices for architecture with no lots, and for architecture + in service contracts with no lots, whilst the least number of opportunities per notice was found for architecture + within works contracts having no lots. Surprisingly contracts with lots provide fewer opportunities per notice (fig. 4.4).

• 268 notices for architecture+, - 37 of those within lots • 478 notices for ‘hidden architecture’, - 66 of those within lots

Chart Title 120%

100% 13% 80% 39%

Architecture

60%

Architecture + Hidden Architecture

40%

fig. 4.3 % of architectural opportunities advertised in contract notices, by description within calls (Q1-2011 to Q4-2013)

48%

20%

1 Ratio - Opportunities per Call 1.000

1.500

2.000

2.500

3.000

3.500

4.000

ARCHITECTURE WORKS contracts having NO LOTS

ARCHITECTURE SERVICES Contracts having NO LOTS

ARCHITECTURE WORKS contracts with LOTS

ARCHITECTURE SERVICES contracts with LOTS

es per Call 3.000

3.500

Number of Calls Number of Opportunities

4.000

Ratio of Opportunities to numbers of Calls

ARCHITECTURE+ WORKS contracts having NO LOTS

fig. 4.4

ARCHITECTURE+ SERVICE contracts having NO LOTS

Distribution and ratios of calls to opportunities, by derivation of calls (Q1-2009 to Q2-2014)

ARCHITECTURE+ WORKS CONTRACTS with LOTS

ARCHITECTURE+ SERVICE CONTRACTS with LOTS 0

500

1000

1500

2000

2500

3000

3500

4000

4500

numbers

Number of Calls Number of Opportunities Ratio of Opportunities to numbers of Calls

How many lots and architectural opportunities?

What are the procedures?

In this section a simple statistical analysis of OJEU records has been used to evaluate the numbers of contract notices issued inviting competitive submissions for architectural services filtered by CPV codes. This methodology allows comparison with EU partners. Procedures have been grouped together into their primary classifications: open or restricted (excluding design contests), negotiated, competitive dialogue or design contests (open and restricted).

Restricted procedures dominate the UK market. This is familiar to many UK architects as the 2 stage competition procedure requiring a PQQ (pre-qualification questionnaire) stage followed by an ITT stage (invitation to tender). In 2013 the number of restricted procedures increased 13% over 2012. Over all the period (and it appears largely due to their increasing use in Scotland) open procedures have improved their market share from 7.5% to 15% (fig.5.2).

988 contract notices from Q1 2009 to Q4 2013 were issued for UK architectural services with the market shares by procedures as follows: 81% by restricted procedures; 12% by open procedures; 4% by competitive dialogue; 2% by negotiated procedures and 1% (0.8% actual) by design contests (fig.5.1).

Design contests, the only procedure provided for under law specifically for the selection of architectural and planning services, is almost entirely absent. Of the 8 UK design contests held over this period only two have been open calls.

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UK Competitive Procedures 2009 - 2014 UK Competitive Procedures

Open Procedures

2009 - 2014 1%

Key to figures

Restricted Procedures

All Negotiated Open Procedures Procedures

12%

Competitive DialogueProcedures Restricted All Design Contests

All Negotiated Procedures

12%

Competitive Dialogue All Design Contests

fig.5.1 All UK competitive procedures (Q1 2009 - Q4 2013)

81%

Chart Title 300

81%

250

200

150

100

fig.5.2

2009

2010

2011

Open Procedures

Restricted Procedures

Competitive Dialogue

All Design Contests

What are the procedures?

2012

UK annual competitive procedures (Q1 2009 - Q4 2013)

2013

All Negotiated Procedures

In 2013 in Germany 135 design contests accounted for 13% of this procurement market, in France 308 accounted for 26% of the market whilst in Austria it was 33%. All other countries in this evaluation made use of open design contest (fig. 5.3). Across the EU countries in 2013 only 26 competitive dialogue procedures were used for architectural services, of these 11 were undertaken in UK (42%). France is the only other country to make any real use of this procedure, whilst the other nations illustrated here did not use it at all. With only 2% of the market, UK used very few negotiated procedures in relationship to all others. In 2013 Germany used negotiated procedures for 83% of their notices, Austria 34.5%, Belgium 23% and France 15% (fig. 5.3). The Netherlands in 2013 was in some respects the most similar to UK as it used restricted procedures for 67% of its notices and no negotiated procedures. However its remaining 33% of notices were all open procedures.

Competitive dialogue procedures were reported to be the most expensive in which to participate, the cheapest was the negotiated procedure, whilst the most prevalent restricted procedures were not felt to enable selection based on best quality. (RIBA Procurement Survey 2011 of Chartered Architects) Unlike UK, other countries use negotiated procedures and design contests for the same outcomes in preference to restricted procedures and competitive dialogue, and use significantly more open procedures whether directly or as part of a design contest. This has an impact on market access, quality of outputs and the efficiency of the procurement processes. Although many factors influence the choice of procedures UK practices are clearly not typical.

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2%2%

13% 26%

Open Procedures 23%

Open Procedures 48% 1%

Restricted Procedures All Negotiated Procedures

Open Procedures

All Negotiated Procedures

Restricted Procedures

Competitive Dialogue

All Negotiated Procedures

57%

All Design Contests

15%

Restricted Procedures

Competitive Dialogue All Design Contests

14% 10%

83%

GERMANY 1048

FRANCE 1178

18%

1% 3%

31%

33%

Open Procedures

BELGIUM 112

Open Procedures

Restricted Procedures

Open Procedures

All Negotiated Procedures

Restricted Procedures

Competitive Dialogue

All Negotiated Procedures

All Design Contests

Competitive Dialogue

Restricted Procedures

88%

SPAIN 73

ITALY 108

Competitive Dialogue All Design Contests

All Design Contests

76%

All Negotiated Procedures 2%

34%

AUSTRIA 55

7% 26%

UK Competitive Procedures 2009 - 2014

Open Procedures Restricted Procedures

Key to figures

All Negotiated Procedures

fig.5.3

Competitive Dialogue

Open Procedures All Design Contests

1% 2%

Competitive procedures 2013. Country comparisons (ranged by descending number of notices issued)

Restricted Procedures

67%

12%

THE NETHERLANDS 46

What are the procedures?

All Negotiated Procedures Competitive Dialogue All Design Contests

Who are the clients?

This section evaluates the general client organisation type for service contract notices in architecture and architecture+, which are reported to have concluded with an award notice and the values given for the award notice. The trends and totals over the period (Q1 2009 - Q4 2013), between the numbers of award notices (fig 6.1), the numbers of awards made (fig 6.2) and the values of awards (fig 6.3) by sector are compared. The category definitions are defined by the Procurement Directives. ‘bodies covered by public law’ covers various universities, housing providers, other arms length organisations and those such as charities in receipt of public funds. There is significant discrepancy in client organisation practices between the numbers of award notices issued, the numbers of awards being made within those notices and the values of the procurements (fig 6.1, 6.2 & 6.3). 2013 is also significantly different from the values by market share over the period (fig 6.4 & 6.5).

Independent policies adopted by the Northern Ireland Executive, Scottish Parliament, Welsh Assembly and local and regional authorities, along with variances in the directions adopted by others, by implementation of differences in standing orders can be seen to contribute most towards these differences. Over the period regional and local authorities along with bodies covered by public law held by far the largest share of the market, in notices, awards made and values. This was followed by utilities organisations with 9% of the market share by value, but with a negligible presence in 2013. Regional or local authorities issued 40% of contract award notices, 28% of awards and accounted for 53% of value over the period 2009 - 2013 by share of the market (fig 6.1, 6.2 & 6.3). But since Q3 - Q4 of 2012 their activity has been in steep decline as a consequence of financial cuts (fig 6.3 - bar chart). In 2013 they only accounted for 17% of the market by the numbers of awards made (fig 6.4) and 8% (£20.76m) of the market by value (fig 6.5). The correlations over the period indicate they issued a high number of notices relative to the number of awards being made in each notice, yet each award has a higher value than the average.

key to all figures

Number of Award Notices 2009-2013

£800

National Or Federal Agency/Office

£600

Utilities

£400

Ministry or Any Other National/ Federal Authority Other Body Governed By Public Law

Other

No of Awards made in all Notices 1200 1000

Regional Or Local Agency/Office

Body Governed By Public Law

National Or Federal Agency/Office

800

Other

600

Ministry or Any Other National/ Federal Authority 400 Utilities

fig. 6.2

Ministry or Any Other National/ Federal Authority

Award numbers by client type

Other

Millions Millions

(% Q1 2009 - Q4 2013 totals, and half year numbers)

Q3-Q4

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

Q3-Q4

2011 Q1-Q2

Q3-Q4

Regional Or Local Authority 2010 Q1-Q2

Regional Or Local 0 Agency/Office

Q3-Q4

Body Governed By Public Law

Award Notice Values

Award Notice values 2009-2013 2%0%

Utilities

National 200 Or Federal Agency/Office

2009 Q1-Q2

61%

Award Notice Values

£1,000 Regional Or Local Authority £1,100 Regional Or Local Agency/Office

Body Governed By Public Law £800 £900

Regional Or Local Agency/Office National Or Federal Agency/Office

Other

National Or Federal Utilities Agency/Office

£600 £700

National£200 Or Federal £300 Agency/Office

Body Governed By Public Law

Body Governed By Public Law Regional Or Local Authority Q3-Q4

Q3-Q4 Q3-Q4

2013 Q1-Q2 2012 Q1-Q2

Q3-Q4 2011 Q1-Q2 2012 Q1-Q2

2011 Q1-Q2 Q3-Q4

Other

2010 Q1-Q2 Q3-Q4

2009 Q1-Q2 2009 Q1-Q2

-£100

Award notice (CAN) values by client type

Ministry or Any Other National/ Federal Authority Ministry or Any Other National/ Other Federal Authority

£400

Regional Or Local £0 Agency/Office £100

fig. 6.3

Utilities

Utilities£500

Q3-Q4 Q3-Q4 2010 Q1-Q2

53%

Ministry or Any Other National/ Federal Authority

2013 Q1-Q2

3% 6%

Who are the clients?

(% Q1 2009 - Q4 2013 totals, and half year numbers)

Q3-Q4

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

Q3-Q4

2011 Q1-Q2

2010 Q1-Q2

Q3-Q4

Regional Or Local Authority

Q3-Q4

Regional 0 Or Local Agency/Office 2009 Q1-Q2

Body Governed By Public Law

Contract award notice (CAN) numbers by client type

Regional Or Local Authority 28%

28%

Q3-Q4

Ministry or Any Other National/ Federal Authority

National Or Federal 5 Agency/Office

Awards 2009-2013

fig. 6.1

Utilities

1%1% 2%0%

Q3-Q4

National Or Federal Agency/Office

15 Utilities

Regional Or Local Authority

Regional Or Local Agency/Office

Ministry 20 or Any Other National/ Federal Authority

36%

2013 Q1-Q2

40%

2012 Q1-Q2

13%

2011 Q1-Q2

Body Governed By Public Law

Q3-Q4

£0

Regional 40 Or Local Authority

2010 Q1-Q2

2009 Q1-Q2

1% 3%

Numbers of Award Notices

£200

Regional Or Local Agency/Office

£1,000

Q3-Q4

Millions

Award Notice Values

Regional Or Local Authority

(% Q1 2009 - Q4 2013 totals, and half year values)

Bodies covered by public law issued 36% of contract award notices, 61% of awards yet accounted for 29% of value over the period 2009 - 2013 by share of the market (fig 6.1, 6.2 & 6.3). Their presence in the market has remained more consistent, but in 2013 they had 62% of the market by numbers of awards and 71% by value, whilst the presence of other organisations declined (fig 6.4 & 6.5). The correlations over the period indicates they issue a small number of notices relative to the numbers of awards they make, and the value of each award is lower than the average. Yet in 2013 this trend appears to change relative to the average, as award values relative to the numbers is reversed, indicating that larger awards are now more prevalent.

Utilities organisations issued 1% of notices, a negligibly small amount of awards (4) yet accounted for 8% of the market by value (fig 6.1, 6.2 & 6.3). Statistically although the numbers of awards issued is exceptionally small the value of these awards is particularly high in relation to all others. Ministries or other national authorities have issued 5% of award notices, made 2% of awards, and account for 3% of the market by value (fig 6.1, 6.2 & 6.3). In 2013 with an enlarged share of the market they issued 9% of all awards with 8% by value (fig 6.4 & 6.5), indicating a median performance ratio of award numbers to value against the average.

ÂŠ2014 Project Compass CIC

key to all figures

Regional Or Local Agency/Office

£1,000 £800

National Or Federal Agency/Office

£600

Utilities

£400

Ministry or Any Other National/ Federal Authority Other

Award 2013

Body Governed By Public Law Q3-Q4

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

Regional Or Local Authority

Q3-Q4

17%

2011 Q1-Q2

Q3-Q4

£0

2009 Q1-Q2

1% 3% 1%

Q3-Q4

£200

2010 Q1-Q2

Millions

Award Notice Values

Body Governed By Public Law Other

Regional Or Local Authority

Ministry or Any Other National/ Federal Authority Utilities

fig. 6.4 Award numbers by client type (% 2013)

National Or Federal Agency/Office Regional Or Local Agency/Office

61%

Award Values 2013 10%

Regional Or Local Authority

0% 8%

Body Governed By Public Law

Other Ministry or Any Other National/ Federal Authority Utilities

fig. 6.5 Award notice (CAN) values by client type (% 2013)

National Or Federal Agency/Office 71%

Who are the clients?

Regional Or Local Agency/Office

The trend over the period Q1 2009 - Q4 2013 for contract awards has been towards a smaller number of awards of higher relative values. This has impacts which are a concern as higher value awards contribute to diminishing market access and competition.

10000

100

key to all figures

Axis Title

The trend in the numbers of awards being made is falling whilst the trend in the average values of awards is rising. This is consistent across 1000 the market as a whole (fig. 6.8).

Award Average Values values Awards (mean) average Total total Awards award notice (CAN) numbers Expon. (Award award Average Values) Trend average values Expon. (Total Awards) Trend award notice numbers Regional or Localtotal Authority

100

Q3-Q4

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

£1,000,000

1000

£1,000

Awards Expon. (Award Average values) Expon. (Awards)

Q3-Q4

2013 Q1-Q2

2012

Q3-Q4

2012 Q1-Q2

2011

Q3-Q4

2011 Q1-Q2

2010

Q3-Q4

2010 Q1-Q2

2009

Award Average values

1 2009 Q1-Q2

£1

Award numbers (log scale)

fig. 6.6 Regional or local authorities Contract award numbers and average award values (Q1 2009 - Q4 2013)

Award values £ (log scale)

Q3-Q4

2011 Q1-Q2

Q3-Q4

2010 Q1-Q2

£1,000,000,000

Q3-Q4

2009 Q1-Q2

When the average values of awards is compared to the total numbers of awards being made in contract award notices issued both by regional and local authorities and by bodies covered by public law over the period, trends in ALL both cases are similar (fig 6.6 & 6.7).

2013

Body covered by Public Law

Award values £ (log scale)

100

£1,000,000

£1,000

Award numbers (log scale)

1000

£1,000,000,000

Average Award Values Total Awards Expon. (Average Award Values) Expon. (Total Awards)

1 Q3-Q4

Q3-Q4

2012

2013 Q1-Q2

2011

2010

2012 Q1-Q2

Q3-Q4

2011 Q1-Q2

2009

2010 Q1-Q2

Q3-Q4

2009 Q1-Q2

£1

fig. 6.7 Bodies covered by public law Contract award numbers and average award values (Q1 2009 - Q4 2013)

2013

ALL 10000

£1,000,000,000

£1,000,000

100

£1,000 10

Total Awards Expon. (Award Average Values)

fig. 6.8 All types of client organisations Contract award numbers and average award values (Q1 2009 - Q4 2013)

Expon. (Total Awards)

Q3-Q4

2013 Q1-Q2

2012

Q3-Q4

2012 Q1-Q2

2011

Q3-Q4

2011 Q1-Q2

2010

Q3-Q4

2010 Q1-Q2

2009

Who are the clients?

Award Average Values

1 2009 Q1-Q2

£1

Award numbers (log scale)

Award values £ (log scale)

1000

2013

Which sectors?

This section evaluates sectors for service contract notices in architecture and architecture+, which are reported to have concluded with an award notice, along with the numbers of awards made in each award notice and the values attributed to the award notice. The trends and totals over the period Q1 2009 - Q4 2013, between the numbers of award notices (fig 7.1), the numbers of awards made (fig 7.2) and the values of awards (fig 7.3) by sector are compared. The ‘all other’ category covers central, national, regional and local government, economic and financial affairs, fire, police, defense and prison services, research facilities, conservation and restoration etc. ‘General public services’ covers those awards across an estate, such as a local authority’s building stock, as well as those called by procurement hubs seeking services across a wide geographic or client base, (most typically as framework contracts). This category however also describes specific contracts on e.g. existing libraries, employment facilities etc.

General public services accounted for 23% of award notices but 62% of awards made and 59% of market value over the period. The notable discrepancies between award numbers and values can be seen to be attributable in large part to the emergent use over the period of large aggregated generic ‘general public service’ framework procurements, covering a wide area, scale, typology and/or project discipline for multiple clients. These have made significant inroads into the market over the period. Three single hub procurements have been omitted to illustrate the scale of these impacts by example (fig 7.2a and fig 7.3a). • Q1 - Q2 2010 England a single notice having 872 awards (OJEU ref. 2010/S 100-151522 & 2011/S 205-333068) • Q1 - Q4 2011 Scotland 2 notices having 1 lot each accounting for £1.4bn (OJEU ref. 2011/S 36-059208 & 2012/S 96-159307; 2011/S 159262657 & 2012/S 238-391718).

Numbers of Award Notices 50 45 40 35

key to all figures All Others

Transport & Energy Infrastructure

Number of Award Notices 2009-2013

Recreation, Culture and Leisure

Numbers of Award Notices

Health

Education

1545

16% 23%

Housing and community amenities

General Public Service

35 General Public Service 530 Housing and community amenities

All Others Transport & Energy Infrastructure

Education 25

Education

Q3-Q4

Health

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

All Others 10

2011 Q1-Q2

15 & Energy Infrastructure Transport

Q3-Q4

20 Recreation, Culture and Leisure

2010 Q1-Q2

Q3-Q4

18%

Recreation, Culture and Leisure

2009 Q1-Q2

Health 10%

Q3-Q4

Housing and community amenities General Public Service

Number of Awards 2009-2013

Q3-Q4

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

Q3-Q4

2011 Q1-Q2

Q3-Q4

2009 Q1-Q2

Q3-Q4

22%

2010 Q1-Q2

fig. 7.1 Contract award notice numbers by sector (% 2009 - 2013 totals, and half year numbers)

Numbers of Awards 1200

4% 1000

5% 2%

800 General Public Service

All Others

Housing and community amenities

Transport & Energy Infrastructure

Education 600

Recreation, Culture and Leisure

Health

62%

13%

Health

Recreation, Culture and Leisure 400 Transport & Energy Infrastructure

Education Housing and community amenities

All Others

General Public Service

200

Millions

Values of Awards 2009-2013

11%

Q3-Q4

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

Q3-Q4

2011 Q1-Q2

Q3-Q4

2010 Q1-Q2

2009 Q1-Q2

Award Notice Values

1000

All Others

Housing and community amenities

Transport & Energy Infrastructure

600 Education

Recreation, Culture and Leisure

Health

5% 59%

Health

Recreation, Culture and Leisure 400 Transport & Energy Infrastructure

Education Housing and community amenities

All Others

General Public Service

200 7% Q3-Q4

Q3-Q4

2013 Q1-Q2

2012 Q1-Q2

Q3-Q4

2011 Q1-Q2

2010 Q1-Q2

Q3-Q4

2009 Q1-Q2

Which sectors?

Award numbers by sector (% 2009 - 2013 totals, and half year numbers)

1200

800 General Public Service

fig. 7.2

fig. 7.3 Values of award notices by sector (% 2009 - 2013 totals, and half year values)

How the enormous values these procurements represent in relation to the national market can be anything more than speculative is not apparent. Speculative financial values excessively raise perceived risk and the generic nature of criteria applied for assessing the suitability of design service. These contribute towards reducing efficiencies, denying market access and hence competition whilst the process distances clients and stakeholders from choice and transparency in selection of their suppliers.

Since Q3 - Q4 2013 it appears however that in this sector this type of procurement has been in decline. This is to be warmly welcomed. Housing with only 7% by value and 13% by numbers of awards shows an apparent paucity given that historically most procurements have been tendered and the widely acknowledged need for more and better housing.

Number of Awards 2009-2013 6% 9%

39%

General Public Service Housing and community amenities Education

Health Recreation, Culture and Leisure Transport & Energy Infrastructure All Others

fig. 7.2a

14%

Excluding noted 3 no. Procurements

Numbers of Award Notices Values of Awards 2009-2013

20%

45 20%

30%

General Public Service

key to all figures

Housing and community amenities

30 25

Education

All Others

Health

Transport & Energy Infrastructure

Recreation, Culture and Leisure

19%

Transport & Energy Infrastructure All Others

fig. 7.3a

Education

11%

Excluding noted 3 no. Procurements10

Housing and community amenities

2% 8%

Health

General Public Service

10%

Q3-Q4

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

Q3-Q4

2011 Q1-Q2

Q3-Q4

2010 Q1-Q2

Q3-Q4

2009 Q1-Q2

ÂŠ2014 Project Compass CIC

Education has seen an increase in the numbers of calls concluding in 57 awards in 2013 compared to 7 in 2012, with a disproportionate increase in values in 2013 to ÂŁ177.3m against ÂŁ3.1m in 2012. This is largely arising in higher education, with most work at primary and secondary stage being acquired by contractor lead / PFI works contracts, with architectural design services sub-contracted.

Overall the figures warn of the implications of a significant decline in public sector activity for architecture and architecture+ from a peak in Q3 - Q4 2012 with only higher education bucking the trend.

Health is nearly absent due this sector being largely acquired through PFI style design, build, finance and maintenance works contracts, with architectural design services sub-contracted. Infrastructure accounted for only 5% of the awards made and 11% of the market value over the period, however there were negligible awards made in this sector Q3 - Q4 2013.

Which sectors?

Frameworks

Framework awards provide clients the opportunity to establish an approved list typically over a 4 year period from which they can call off their consultants or contractors to undertake an anticipated programme of procurement. In these circumstances assessments for winning an award are most typically made on generic criteria covering bundles of an anticipated programme of procurement. The extent of framework competitions therefore identifies the market sector for procurements where the specifics of an individual brief, output or work is not defined in the contract notice or at the award notice invite. The winning of an award does not confer a commission and maybe a more speculative supplier opportunity.

27% in architecture and architecture+ of service award notices were for framework appointments by numbers of awards as a proportion of the market over the period Q1 2009- Q2 2014 (fig 8.1). Over this period however the trend in numbers of framework appointments has increased from nearly 22%, to almost 33% as a percentage of the total numbers of service awards being made. Frameworks now account for almost a third of architectural services commissions (fig 8.2).

After contract award stage the call off process frequently entails a further mini competitive procedure held between a shortlisted number of candidates on the framework, where fees and terms maybe re-tendered, and specific outputs sought to defined briefs. Where this process is undertaken it is done without oversight by the Public Contract Regulations or Procurement Directives and entails all parties in additional cost.

Two thirds of service contract awards are for specific projects with more defined briefs, but this market share is in decline (from 82% in Q1 2009 to 68% in Q1-Q2 2014).

One value of analysing frameworks is that all other contract awards other than frameworks are most typically individual market ready projects having specifically defined briefs and outputs.

61% donâ&#x20AC;&#x2122;t report the value, estimated value or value range of the services framework contract being awarded, within the award notices submitted over the period.

17% for architectural design services in works award notices were for framework appointments, by numbers of awards as a proportion of the market, in the period Q1 2009 - Q2 2014 (fig 8.1). Over this period however the trend in numbers of framework appointments has decreased from nearly 24%, by almost 8% to 16%, as a percentage of the total numbers of these works awards.

ÂŠ2014 Project Compass CIC

Within works framework contracts being awarded 93% donâ&#x20AC;&#x2122;t report the value, estimated value or value range of the works framework contract being awarded within the award notices submitted over the period.

By Q1 - Q2 2014 frameworks in works awards accounted for less than a tenth of the market share. This trend however is largely skewed by the returns, between Q3 - Q4 2009 and Q1 - Q2 2010 (fig 8.2). Taken over the subsequent period and in 2013 the trend towards increasing use of frameworks is more consistent with the trend in service contracts (fig 8.1).

There is little transparency in the reporting of framework awards in both works and services (mean Q1 2009 - Q2 2014 relative to 2013 (mean Q1 2009 - Q2 2014 relative to 2013 having so few values.

WORKS CONTRACTS

RKS CONTRACTS

(mean Q1 2009 - Q2 2014 relative to 2013

fig.8.1 Year average 2013 Works and services

Year average 2013

Chart Title

10%

15%

20%

25%

30%

40.0%

0%Q2 2014 5% Average Q1-2009 to 35%

10%

15%

30%

35%

25%

30%

WORKS Frameworks

35%

Linear (SERVICES Frameworks) Linear (WORKS Frameworks)

30.0%

2014 Q1-Q2

Q3-Q4

2013 Q1-Q2

Q3-Q4

2012 Q1-Q2

2011 Q1-Q2 Q3-Q4

Q3-Q4

10.0%

2010 Q1-Q2

20.0%

2010 Q1-Q2

SERVICES Frameworks

Q3-Q4

fig.8.2

WORKS Frameworks

Works and services frameworks as a proportion of all architectural contract awards by numbers (Q1 2009 to Q2 2014 )

Frameworks

2012

2013

Q3-Q4

2014 Q1-Q2

2011

2013 Q1-Q2

2010

2012 Q1-Q2

2009

2011 Q1-Q2

0.0% Q3-Q4

0.0%

20%

40.0%

2009 Q1-2

10.0%

10% 50.0% 15% Frameworks as % of award notices

20.0%

25%

SERVICES Frameworks

30.0% 5%

20%

Chart Title 60.0%

2009 Q1-2

Frameworks as % of award notices

Year average 2013 0%

proportion of all architectural contract awards by numbers (means Q1 2009 to Q2 2014 relative to means 2013)

SERVICE CONTRACTS

50.0%

TRACTS

frameworks asQ2 a 2014 Average Q1-2009 to

Average Q1-2009 to Q2 2014

60.0% TRACTS VICE CONTRACTS

2014

10 Regional distributions

Each OJEU notice within the EU defines UK regions geographically by NUTS code (Nomenclature of Territorial Units for Statistics), and in tiers allowing national and regional breakdowns. The tier 1 regions are illustrated (fig.9.1). Some procurement outputs are national (eg Royal Mail), or over more than a single region (e.g. those notices issued by some national housing providers or trans regional procurement hubs). These are the UK wide figures illustrated. Frequently regional NUTS codes are defined by where the procurement is to be executed some however, particularly those undertaken by government or procurement hubs, specify the address of the procurement authority offices.

Most notices however specify regional outputs either by NUTS code, or within the notice description. This has allowed Project Compass CIC to refine the analysis of regional procurement trends, derived from all award notices issued for works and services having architecture and architecture+ as a requirement, over the 2009-2013 period under the UK tier 1 regional NUTS codes. In addition the numbers of awards made within each award notice is accounted to create the basis of this regionally specific evaluation.

ÂŠ2014 Project Compass CIC

fig 9.1 UK Regions

Regional distributions

st of England st of England st of England st of England st of England

The proportions of public expenditure being made by different procurement authorities in 2013 varies across the regions. Regional and local authorities and public law bodies account for the bulk. National or central government make more significant contributions UK wide, in Scotland and N. Ireland, but with none in Wales (fig 9.2).

Over the entire period the North East made only 58 awards, with none in 2010. This compares to 1,050 UK wide, 888 in London and 119, in South 1000 East England, the second lowest number of awards made (fig 9.2).

27% 27% 27% 27% 27% 5% 5% 5% 5%

The differences between the numbers of award notices issued and the numbers of awards made in each 100 notice reflects the relationship with the numbers of lots and opportunities being offered, for architecture and architecture+, in each notice.

In 2013 only four regions, Wales, Northern Ireland, North West and North East England made on average more awards per notice (reflecting the use of lots) than there were as a whole over the period. Over all other regions there have been fewer lots issued per award notice in 2013 than the average over the previous period.

UK All Areas Entering the values of an award

within the award notice facilitates economic transparency, yet with the exception of Scotland, in all other cases across the regions this is not being fully or consistently undertaken. In 2012 and 2013 the East Midlands reported no values, whilst in the same period, Yorkshire & Humberside, South East and North West England report significant declines.

10 UK All Areas

19%

key to all figures

23%

3 + R Region or LA

100

6 Public Law Body 8 Other or Not Specified

UK42% All Areas

2009

2010

2009

2010

2011

2012

Total Award Nos made Award Notice Nos. Notice Nos provided with values

UK Wide

utility

body covered by public law others (& not specified)

55 16

regional or local authority

4 Utilities

16%

915

1000

national or central government

1 + N Ministry 0%

1 + N Ministry 1 + N Ministry 3 + R Region or LA 1 + N Ministry 3 + R Region or LA 4 1 Utilities + N Ministry 3 + R Region or LA 4 1 Utilities + N Ministry 6 Law or Body 3 +Public R Region LA 4 Utilities 6 Law2012 Body 3 +Public R2011Region or LA 8 Other or Not Sp 4 Utilities Total Award Nos made 6 Public Law Body Award Notice Nos. 8 orwithNot 4 Other Utilities Notice Nos provided values Sp 6 Public Law Body 8 Other or Not Sp 6 Public Law Body 8 Other or Not Sp

2013

numbers of awards made

numbers of award notices (CAN)

award notices numbers recording award values

ÂŠ2014 Project Compass CIC

Scotland

South West England

London

0% 9%

11%

37%

1 + N Ministry

3 + R Region or LA

4 Utilities

6 Public Law Body

42%

1000

114

105

208

2010

2011

1 2013

2012

Total Award Nos made

2009

2010

2011

Total Award Nos made

Award Notice Nos.

Scotland

55 27

2009

102

100 23

173

100

1 2013

2012

2009

2010

2011

Total Award Nos made

Award Notice Nos.

2013

Notice Nos provided with values

North East England

Yorks + Humber

2012 Award Notice Nos.

South West England

London

Notice Nos provided with values

6 Public Law Body 8 Other or Not Specified

1000 284

200

173

4 Utilities

53%

South West England

4% London

112

3 + R Region or LA 38%

8 Other or Not Specified

Scotland

100

1 + N Ministry

6 Public Law Body

44%

29%

8 Other or Not Specified

1000

16% 1 + N Ministry

East of England

10%

15%

44%

1 + N Ministry

3 + R Region or LA

4 Utilities

4 Utilities 6 Public Law Body

8 Other or Not Specified

East of England

1000

8 Other or Not Specified

42%

North East England

1000

3 + R Region or LA

6 Public Law Body

8 Other or Not Specified

UK Yorks + Humber

1 + N Ministry

27%

4 Utilities

53%

37%

6 Public Law Body 41%

21%

1 + N Ministry

Wales

1000

157 69

100

29 10

2009

2010

2011

Total Award Nos made

1 2013

2012

2009

2010

Yorkshire & Humberside

2011

South East England

East of England

2012

2013

Award Notice Nos.

Notice Nos provided with values

3 + R Region or LA

4 Utilities

6 Public Law Body

8 Other or Not Specified

East Midlands

72 100

2011

6 Public Law Body 8 Other or Not Specified

West Midlands

100

1 2013

2012

2009

Award Notice Nos.

2010

2011

Total Award Nos made

South East of England

12 10

1 2013

2012

16 5

2009

2010

2011

Wales

N Ireland 0% 10%

24%

37%

11%

1 + N Ministry

3 + R Region or LA

4 Utilities

North West England

N Ireland 1000

162 60

99 100

8 Other or Not Specified

2012 Award Notice Nos.

North West England

Regional distributions

2013

Wales 0%

1000

100

40 19

Notice Nos provided with values

2009

2010

2011

2012

Total Award Nos made Award Notice Nos. Notice Nos provided with values

N Ireland

2013

2011

2012

100

2009

Procuring authorities (2013 pie) above Wales Numbers of Awards made, award notice (CAN) issues & total of notices including values (Q1 2009-Q4 2013 2009 2010 2011 2012 log scaled)

6 Public Law Body

151

17 4

4 Utilities 54%

8 Other or Not Specified

37%

1000

fig 9.2

3 + R Region or LA 37%

6 Public Law Body

46%

8 Other or Not Specified

1 + N Ministry

4 Utilities

29%

6 Public Law Body

Total Award Nos made

2013

West Midlands

2011

2012 Award Notice Nos.

Notice Nos provided with values

North West England

51 19

Total Award Nos made

Award Notice Nos.

East Midlands

Notice Nos provided with values

4 Utilities

46%

1000

2010

3 + R Region or LA

46%

177

Total Award Nos made

1 + N Ministry

36%

104

2010

2011

West Midlands

1000

2009

2010

Total Award Nos made

Notice Nos provided with values

40%

2009

3 + R Region or LA

1000

2013

Award Notice Nos.

20%

1 + N Ministry

South East of England

100

2012

50%

2009

2011

East Midlands

36%

2010

Total Award Nos made

14%

100

2009

North East England

1 2013

2012 Award Notice Nos.

Notice Nos provided with values

Total Award Nos made

Award Notice Nos.

10 3

100

2010

Total Award Nos made

2013

Total Award Nos made

Award Notice Nos.

Wales

Notice Nos provided with values

Award Notice Nos.

2013

In 2009 to 2013 the largest number of award notices were issued by Scotland 110 notices, followed by London with 99. Only 26 UK wide notices were issued, the same as for Yorkshire and Humberside, with the East Midlands issuing 25 with only 19 in the North East (fig 9.3). The number of awards announced within the notices over this period highlights the focus of public sector procurement. There were 1,050 UK wide awards, 888 in London, 547 in the South East, and 519 in Scotland. The awards in the greater geographic area of 7 regions, (N. Ireland, Wales, the East and West Midlands, the North East, South West and East of England) collectively was 52 awards less than London at 836 awards (fig 9.4).

Of the 1,050 UK wide awards an aberrant single framework notice, in 2011 for generic architectural, construction, engineering and inspection services with a total value range of ÂŁ0.3b and ÂŁ0.5b, was responsible for a total of 872 awards (OJEU ref. 2010/S 100-151522 and 2011/S 205-333068). This contained 8 lots for architects with 34 contract awards and 28 lots for contractor / developers having 599 contract awards. Awards in 2013 have declined 52% taken over all regions relative to the average numbers of awards over the period (and OJEU ref. 2010/S 100151522 and 2011/S 205-333068 for statistical reasons) (fig 9.5). Areas that previously were consistently robust have seen significant change in the numbers of awards over the previous year.

ÂŠ2014 Project Compass CIC

0 888

250

365

250

Regional distributions

214

117

214

117

119

145

119

145

245

262

245

262

Numbers of Awards to numbers of notices 2009-2013 Numbers of Awards to numbers of notices 2009-2013

152 North EastEast England North England

EastEast Midlands DerbyNotts Midlands DerbyNotts

YorksHumber YorksHumber

UK ALL UK ALL

Wales Wales

West Midlands West Midlands

152

East England NorthNorth East England

1250

East Midlands DerbyNotts East Midlands DerbyNotts

547 35

245

YorksHumber YorksHumber

519 145

UK ALL UK ALL

500 119

WalesWales

519 38

214

of England EastEast of England

117

Midlands WestWest Midlands

1000 47

1250

East of England East of England

1250 South West England South West England

N Ireland N Ireland

250

England SouthSouth WestWest England

500 365

N Ireland N Ireland

1000 North West England North West England

England NorthNorth WestWest England

750 519

South England South EastEast England

500

East England SouthSouth East England

0 0 London London

100

London London

75 110

1000

Scotland Scotland

Numbers of Notices 125

Scotland Scotland

Numbers of Notices Numbers of Notices

Numbers of Awards to numbers of notices 2009-2013 2009-2013 1050

888

750

547

262

fig 9.3 Awards Made 2009-2013

2009-2013

152

Numbers of award notices (CAN) by region (Q1 2009 - Q4 2013)

1050

750 888

547

365

Awards Made 2009-2013

fig 9.4 Awards Made 2009-2013

Numbers of awards by region (Q1 2009 - Q4 2013)

London has declined 87% in 2013 with 23 awards. Scotland has declined 86% in 2013 with 15 awards (average p.a. awards 2009 - 2013: Scotland 104, London 178). The West Midlands, East of England and Yorkshire & the Humberside have also seen disproportionate declines. Only Wales with 57 awards and the North West with 99 awards appear to have really bucked the trend. (average p.a award numbers 2009-2013: Wales 49, North West 73). Although annual data for 2014 is incomplete Project Compass CIC can report that the regional trends are consistent with this decline over Q1 - Q2 2014.

Where the difference between the average total numbers of awards made over the period and the 2013 award numbers is plotted against the equivalent difference in values (for only those awards where values are given) across the regions there is a notable correlation apparent between the numbers of awards being made regionally and their values (fig 9.6). Award numbers are declining across the regions as are their individual values, with only 3 exceptions.

ÂŠ2014 Project Compass CIC

2013 125

100

57 50 2013

15 5

3 Yorkshire & The Humber

UK ALL

fig 9.5

Numbers of awards by region (2013)

North East England

East Midlands DerbyNotts

Wales

West Midlands

East of England

South West England

N Ireland

North West England

South East England

London

Scotland

£1,500

100

£1,000

£500

£0

-50

-£500

£1,500

100

£1,000

x 100000

Chart Title 150

£500

£0

-50

-£500

-100

-£1,000

-150

-£1,500

2013 mean Award Notice values relative to 2009-2013 mean values

-200

-£2,000

-250

-£2,500

Total Award Nos made 2013 relative to 09-13 mean values

-300

fig 9.6 Difference in 2013 award numbers to period average award numbers 2013 mean Award p.a., Notice values relative to 2009-2013 values in withmean differences 2013Nos values period Total Award madeto 2013 relative to 09-13 average values. mean values (period Q1 2009Q4 2013)

Wales

N Ireland

-£3,500 North West England

-350 West Midlands

-£3,000

East Midlands

-300

South East England

-£2,500

East of England

-250

North East England

-£2,000

Yorkshire & the Humber

-200

South West England

-£1,500

London

-150

UK ALL

-£1,000

Scotland

-100

x 100000

150

award values 2013 relative to period mean p.a values

award numbers 2013 relative to period mean p.a. number

Chart Title

2013 award notice values to the average p.a. values over the period 2013 award numbers to the average p.a. numbers over the period

-£3,000

Regional distributions Wales

N Ireland

North West England

East Midlands

West Midlands

East of England

South East England

North East England

shire & the Humber

South West England

UK ALL

London

-£3,500

Scotland

-350

11 How long are procedures taking?

Tender opportunities for architectural services contracts in the public sector that have concluded with an award are taking considerable time. In 2010 the mean average was 277 days with the longest procedure taking 1,387 days. Those concluded in 2013 took on average 221 days with the longest award having taken 510 days to conclude. This is high compared to the EU average across all public procurement of 133 days and with the median at 108 days. (Source: Public Procurement in Europe: Cost and Effectivenessâ&#x20AC;&#x2122; prepared for the European Commission by PWC, London Economics and Ecorys Research and Consulting March 2011). Over the 2009 to 2013 period competitive dialogue procedures took the longest by an average 481 days, restricted procedures took 293 days, negotiated procedures 233 days, open procedures 209 days and the fastest were accelerated restricted procedures which took 194 days.

The wasted resources and economic delays created by the time taken from contract notice calls to the conclusion of a contract award has been of considerable concern to the UK Government who have moved to address the situation. The numbers of exceptionally long procurements have been reducing most significantly, so that the average time taken is also reducing as a consequence (fig. 10.1). The time taken by the main procurement authorities; the government, bodies covered by public law, regional and local authorities and utilities indicates appreciable improvement over the period. Since 2011 government departments in particular have moved to reduce their average procurements from 459 days to 169. With the exception of utilities all the main authorities have shown a marked trend towards accelerating processes over the period. The relative performance of the main procurement authorities is now a welcome improvement and a reversal of that found in 2009, with government successfully driving the efficiency agenda (fig. 10.2).

ÂŠ2014 Project Compass CIC

Time taken by Procedures from Contract Notice to Award Notice issue 1400

1200

Time taken by Procedures from Contract Notice to Award Notice issue

800

1400

Shortest Time Longest Time

1200

600

Mean Time 1 Year (365 days)

1000

Days taken

400

200

800

Shortest Time Longest Time

600

fig.10.1

Mean Time

Times taken from contract notice to award notice issue (all procedures and authorities)

1 Year (365 days) 400

Time taken by Authorities (annual means) Not incl. 2 or less procedures p.a.

200

2012

2013 Q1

2012 Q1

2011

2013

Time taken by Authorities (annual means) Not incl. 2 or less procedures p.a.

350 300

500

250 200

Ministry/Gov

450

Public Law Body

400

Regional/LA Utilities

350

150

300

Days taken (annual mean)

2011 Q1

2010

400

2009

450

100

Q1 2009 - Q4 2013

0 2009 Q1

500

2010 Q1

Days taken (annual mean)

Days taken

1000

Ministry/Gov Public Law Body

250

Regional/LA 200

fig.10.2

Utilities

Time taken by authorities (annual mean) Not including 2 or fewer procedures per annum

150 100 2009

2010

2011

2012

2013

50 0

2009 2009

2010 2010

How long are procedures taking?

2011 2011

2012 2012

2013 2013

In evaluating the time taken by procurement procedures those having 2 or less per annum have been excluded. Design contests for this reason arenâ&#x20AC;&#x2122;t shown because of the small sample size (8No.) (fig. 10.3). Competitive dialogue procedures are the slowest procedure by a considerable margin. Restricted procedures are also consistently long. The accelerated restricted procedures, negotiated and open procedures are all on average appreciably faster, yet happen to be the least used routes to a procurement in the UK (ref Section 5). Only negotiated procedures, which have been used with some effect by the utilities, appear to be getting slower since 2009. Clearly the time being taken by procurement procedures for architectural services might be accelerated by using fewer restricted procedures and competitive dialogue, and more open, negotiated procedures and accelerated procedures.

Acceleration in the time being taken to award contracts since 2011 is very welcome, but the general trend within this procurement sample might suggest two explanations. This improvement in efficiency might, over all the period, be seen to reflect the clear trend that time periods accelerate as the notice numbers diminish (fig. 10.4). Reduction in the average time being taken overall appears to have been achieved by reducing the timescales of the longest procurements which have had the most significant impact on the average. The time being taken relative to the overall numbers of all awards being made is however showing a notable improvement in 2013 over 2012 (fig. 10.5). This pattern remains a key concern. It might suggest that the skills and abilities to process individual procedures efficiently remain limited and that any success in up-skilling a wider procurement market is not yet apparent. While there is still some way to go to meet the EU averages there is a clear trend towards improved practice which would further benefit from adopting more diverse procurement practices and upskilling of client procurement practices in the wider procurement market.

ÂŠ2014 Project Compass CIC

ard Notice Numbers n time taken to Award 200 180 170

Mean time Architectural AwardAverage Notice Numbers 160 relative to the mean time taken to Award Notice Numbers Architectural award notice (CAN) numbers 130

280

120

tural Award Notice Numbers 240 2011 2012 2013 the mean time taken to Award 220

170 160 150

100

140 130 120

2009 2009

2010 2010

1500

2011 2011

2012 2012

300

500

Time taken by Procedure 260 0 (annual means). 2011 2012 2013 240 Not incl. 2 or less procedures p.a.

1500 1000 500

220

2009 2009

2500 2000

280

200

Architectural service award notice numbers relative to the time taken to award (mean annual)

Notice Numbers

100

2013 2013

Average time Mean Architectural Award Notice Numbers relative to the mean time taken to Award Award notice (CAN) numbers numbers of awards 1000

320

fig.10.4 Mean

110

2500 2000

Days taken (mean))

180

110

260

200

190

Linear (Notice Numbers)

Award Notice numbers

300

200

Linear (Mean)

Award Notice numbers

Days taken (mean))

140

2010

2011 2011

2012 2012

Award Notice numbers

150

320

Award Notice numbers

190

fig.10.5

Mean Award Nos

All awards by numbers relative to the time taken to award (mean annual)

2013 2013

Time taken by Procedure (annual means). Not incl. 2 or less procedures p.a.

Open

2013 2013 2012 2012 Negotiated

2011 2011 2010 2010 2009 2009

Accelerated Restricted

2013 2012 2011

fig.10.3

2010 Restricted

100

150

Time taken by procedures (annual mean) Not including 2 or fewer procedures per annum.

2009

Competitive Dialogue

200

250

300

350

400

450

500

Days taken (annual mean) 0

100

150

200

250

300

350

400

450

500

Days taken (annual mean)

How long are procedures taking?

12 Which contractors are winning?

The numbers of calls for architectural design, architecture and architecture+ within all works and service awards (including those within lots) have been evaluated for the period Q1 2009 - Q2 2014. 15,524 awards to 4,233 firms are recorded over this period for works and services. 54.8%, or 2,320 firms, of all those firms winning, only won a single award (14.9% of all the awards). 94.5%, or 4,000 firms, of all firms winning awards, won 1 to 10 awards, and won only 56.8% of all the awards. The remaining 5.5% of firms won 43.2% of all awards (fig 11.2 & 11.3).

The top 10 firms comprising 0.24% of the market by numbers of all firms winning awards, won on average 127 awards each (23 per annum) and captured 8.17% of all awards (fig 11.4). Contracting, construction management and integrated service providers lead the field with professional consultancy led firms trailing with engineering represented by Arups at 11th. Not only are there difficulties in firms accessing the public sector market but there are clear difficulties in progression within it. The market profile is significantly skewed and shows little natural correlation between the numbers of participants and the numbers of awards being won (fig 11.1).

For all firms the average number of awards won was 3.66 (0.66 per annum). The median number of awards won however was 77.

ÂŠ2014 Project Compass CIC

Numbers of award winners relative to numbers of awards wonQ1 2009 - Q2 2014) 3

4000

3500

3000

2500

2000

7000

number of awrds won

6000

1500

No of Awards won

4000

3500

No of firms 3000

2500

1000 4000

2000

500

3000

1500

No of firms

fig.11.1 Numbers of awards won relative to the numbers of firms winning (Q1 2009 - Q2 2014)

1000

500

Range Values won't insert ???

>100

51-100 6

21-50 5

16-20 4

11-15 3

6-10 2

1-5

No of Awards won

1000

5000

2000

number of award winners

8000

number of award winners

Numbers of award winners relative to numbers of awards wonQ1 2009 - Q2 2014)

Range Values won't insert ???

Numbers of awards won by individual firms winning those numbers of awards (range)

Which contractors are winning?

A small number of firms are apparently acquiring a disproportionately large number of awards particularly in the ranges above 16 to 20 awards each, whilst the ratio between the numbers of participant firms to the numbers of awards won by them is particularly low for all firms winning less than 10 awards. Such clear market misalignment would indicate that there are a range of discriminatory factors that have permitted it (fig 11.1). Discriminatory markets are contrary to the fundamental principles of the European Treaties and the Directives.

The number of award values entered in these notices is insufficient to draw sufficient statistically verifiable conclusions but it is evident that the larger firms are also being awarded higher value procurements, which given the application of onerous risk criteria in assessments based for example on previous experience and finance etc. is to be expected. Merging of companies appears more prevalent with larger firms and is also thought to be more likely to skew the percentage of market share further (eg. Leadbitter and Thomas Vale continued to trade under their former names despite and following acquisition by Bouygues).

ÂŠ2014 Project Compass CIC

overall Q1 2009 - Q2

Award winning firms ranged by their % of the overall Q1 2009 - Q2 2014)

KEY range of award winning firms by the numbers of awards they won

0% 2% 0% 2% 1% 6%

fig.11.2

1-5

6-10

16-20

11-15

51-100

Numbers of award winning firms by the numbers of awards they won, in proportion to all award wining firms (ranged values, Q1 2009 - Q2 2014)

11-15 21-50 >100

16-20 21-50 51-100 >100

89%

Awards won ranged by the % of the overall Q1 2009 -Q2 2014 7%

10%

1-5 45% 14%

6-10

fig.11.3

11-15 16-20

Numbers of award winning firms by the numbers of awards they won, in proportion to all awards won (ranged values, Q1 2009 - Q2 2014)

21-50 51-100 >100

7% 12%

award numbers

1 2 3 4 5 6 6 8 9 10

Which contractors are winning?

Lovell Wates Mansell Atkins Kier Capita G&J Seddon Keepmoat Davis Langdon Galliford Try

154 153 149 139 138 120 120 111 95 90

fig.11.4 10 top firms winning works and service awards containing architecture, by numbers of awards won (Q1 2009 - Q2 2014)

13 Which architects are winning?

The numbers of all service contract awards, including those made in all lots having a description calling for architectural design, architecture and architecture+ for the period Q1 2009 Q2 2014, are evaluated in this section. This section represents less than half the awards made in the previous section and whilst manifesting many similar characteristics has notable variances. 6,701 service awards to 2,267 firms are recorded over this period. 1,496 firms, or 65.9% of all those firms winning awards, only won a single award, or 22.3% of all the awards made. 2,155 firms winning between 1 to 10 awards comprised 95.06% of all firms winning awards, yet won only 59% of all the awards. The remaining 4.9% of firms won 41% of service awards (fig 12.3 & 12.4).

The average number of awards won was 2.95 (0.53 per annum) for all firms and less than the average 3.66 for works and service awards in the previous section. This indicates a more competitive market with each firm wining a smaller number of opportunities. The median number of awards won was 64, which also reflects the smaller market size. The 10 top firms comprised 0.44% of the market by numbers of all firms winning awards, won on average 71.3 awards each (12.9 p.a.) and won 10.64% of all service awards (fig 12.1). In a field where it might be hoped public clients would be seeking dedicated architectural services, rather than from facilitators or providers of generic services, the field is dominated by Atkins with 128 awards (1.91% of the market share), with Capita winning 78 awards some considerable way behind.

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Numbers of award winners relative to mbers of awards wonQ1 2009 - Q2 2014) 4

4000

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Numbers 3000 of service award winners relative to numbers of service awards won Q1 2009 - Q2 2014 2

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No of Awards won

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No of firms 1500

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nge Values won't insert ???

No of firms

fig.12.1 Numbers of service awards won relative to the numbers of firms wining (Q1 2009 - Q2 2014)

1 1-5

6 0

Number of Awards won

500

number of firms winning awards in number range

number of award winners

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2 6-10

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4 16-20

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Axis Title

Numbers of service awards won by individual firms winning those numbers of awards (ranged)

Which architects are winning?

Of the 56 firms who captured 30.5% of the market in all service awards, by winning more than 15 awards over the period, only 13 were architectural led consultancies. They represented 2.47% of the firms and won 15.6% of all service awards. It would appear from the data that as the public sector seeks ever larger contracts with single points of contact to off load the process and procedures of production, in a context informed largely by risk reduction, architectural firms are loosing their foothold. As in the previous Section 11 the market profile is skewed by a small number of firms apparently acquiring a disproportionately large number of awards above the apparent glass ceiling which is reached at the range of 16 to 20 awards each. In this case the schism at this threshold is even more apparent (fig 12.1).

fig.12.2 (left) 10 top firms winning service awards containing architecture, by numbers of awards won (Q1 2009 - Q2 2014) fig.12.5 (right) 10 top architectural firms winning service awards containing architecture, by numbers of awards won (Q1 2009 - Q2 2014)

But in services there is also an apparently lower ratio between the participating firms and the numbers of awards won by each of them in the range 1-5, and there are more difficulties in progression from within this environment, Sections 11 & 12 indicate that over the period Q1 2009 - Q2 2014 it has been particularly difficult for all but the largest firms to win awards, in a market which is disproportionately dominated by larger players in works and services. In particular the severity of the step change for those below and above the 16-20 threshold in service contract awards suggests a nearly insurmountable glass ceiling separates the market, whilst those winning 1-5 awards are being relatively disadvantaged. The evident dearth in the public sector of architectural firms winning service awards for architectural design, architecture and architecture+ might be a wake up call.

award numbers

1 2 3 4 5 5 5 8 9 10 58

Atkins Capita Arups Aecom Davis Langdon Sweett Group Mott MacDonald Scott Wilson Turner & Townsend Halcrow

128 78 73 67 64 64 64 61 59 55

award numbers

1 2 3 4 5 5 6 8 9 10

PRP Architects Aedas Ridge & Partners Nicol Thomas HTA BDP HLM Architects Kendall Kingscott Pellings Pollard Thomas Edwards Architects

46 33 30 24 23 23 21 19 18 17

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verall Q1 2009 - Q2

Numbers of firm by % of the market KEY

0% 2% 0%2%1%

range of award winning firms by the numbers of awards they won

fig.12.4

1-5 6-10

Numbers of service award winning firms by the numbers of awards they won, in proportion to all awards won (ranged values, Q1 2009 - Q2 2014)

11-15

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16-20

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51-100 >100

16-20 21-50 51-100 >100

90%

Awards won ranged by the % of the overall Q1 2009 - Q2 2014 11%

fig.12.3

1-5

Numbers of service award wining firms by the numbers of awards they won, in proportion to all award wining firms (ranged values, Q1 2009 - Q2 2014)

6-10

15%

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14%

Which architects are winning?

14 About the data

Section 1 - Contract notices and contract award notice numbers

Section 4 - How many lots and architectural opportunities

Captures data from Q1 2009 - Q2 2014 for all contract notices and cancellation notices containing architectural design in both works and services.

In part 2 of section 4 details of notices over a 3 year period were extracted from over 2,100 calls and the opportunities categorised into architecture, architecture + and ‘hidden architecture’, in works and services contract and award notices. ‘Hidden architecture’ has been defined as opportunities where notices implied or required architectural design, most notably using words such as ‘Design and Execute’ ‘Design and Build’ in the notices.

Section 3 - Contract notice procedures - 2013 This section evaluates the total numbers of contract notices in 2013 across all procedures and project disciplines that called for architectural or building design where this is described within the notices themselves or by the CPV codes. This is for both services and works where the notice descriptions call for building design works having architectural opportunities under Directive 2006/14/EC. It includes contract notices for works calling for (e.g. a) prime design build contractors and contract notices in services addressed to other project disciplines or professional lead consultants. These are the notices shown by the normal OJEU search criteria returning architectur** services in the filters. It does not include calls made under prior information notices (PIN).

Section 6 - What are the procedures Exclusively to this section, and to enable comparisons with other EU member states, data has been extracted directly from the OJEU statistical data base under CPV code 71000000 and all sub tier headings to capture architecture and architecture+ in services contract notices. Procedures have then been grouped together into their primary classifications: open or restricted (including accelerated restricted procedures but excluding design contests), negotiated, and competitive dialogue. Design contests (open and restricted) are issued under separate notice classifications and have then been accounted accordingly with the numbers of open or restricted procedures adjusted down according to this notice classification, to deliver the outputs being reported.

Some countries such as Austria have been screened to exclude contract notices issued by for example Italy where an erroneous NUTS code for that country has been entered. The numbers of Italian notices appearing under the NUTS code for Austria is considerable and signifies considerable issues in notice completions within Italy.

Section 8 & 9 Client types and Which sectors The sector category descriptions are provided for within notices by a standard OJEU range. These have then been confirmed by analysis of the notice descriptions where the standard range description has not been completed or where there is an apparent anomaly with other descriptions. The sector categories have then been refined down from the standard range into the 7 categories illustrated. Where a procurement notice indicates multiple categories in various sectors, if the notice description indicates a clear priority this has been recorded as the default, otherwise the notice is most typically attributable to General Public Service.

Section 12 - Regional distributions Where ever a UK NUTS code has been entered in an award notice without a region these have been screened and the descriptions have been analysed so that where a specific location is apparent the notice has been allocated under the regional location of the output. Values in this section have only been captured where these values are entered in the incomplete or returning values

About the data

Section 13 - How long are procedures taking Project Compass CIC data on award notices has linked back to the emanating contract notices by reference both to the originating contract notice ref. No. (where given in the award notice), or as is frequently the case when no originating contract notice reference number is given, by the descriptions of the contract within both the award notice and the contract notice, with the outputs curated to ensure their veracity. This provides a greater level of certainty and higher degree of granularity to the figures being reported than might be provided otherwise.

Section 14 & 15 contractors and architects In section 14 & 15 the names of individual groups, firms or entities have been checked and were multiple names for the same firms are recorded eg. Xname, Xname Group, Xname Group Limited, Xname Limited, Xname (UK) Ltd, Xname UK Ltd; Yname + Zname, Yname and Zname, Yname & Zname; X1name, X1name Partnership, X1name LLP; divisions of a company group such as Wates, Wates Construction and Wates Living Space etc. the entities have been checked and merged, which has reduced the numbers of entities by over 40%, but improved the output definition. The data represented does not account for companies which have merged or de-merged over the period.

15 About Project Compass CIC

Project Compass CIC is an independent, not-for-profit UK Community Interest Company based in London. Its purpose is to contribute to enhancing professionalism in public sector construction procurement that improves outputs for UK construction culture, through support, research, expertise, guidance and analysis. It aims to promote and improve opportunities to create a high quality built environment by making access to procurement easier, simpler, fairer, more economical and transparent. Project Compass CIC is working in partnership with Architectuur Lokaal in The Netherlands (under the brand of Steunpunt â&#x20AC;&#x153;Helpdeskâ&#x20AC;?) on a range of initiatives and services allowing comparative analysis and expertise to be drawn upon.

In this first report, insights and trends are derived from data spanning 2008 (Q3 & Q4) to 2014 (Q1 & Q2), although data within this report is represented across only the full years 2009 - 2013 unless noted otherwise. For any further industry specific analysis of our databases, please contact Project Compass CIC. Support Project Compass CIC in its endeavors to advance better procurement culture and practice in architecture and construction, Project Compass CIC is sustained by voluntary contributions from industry and supporters and we invite you to join in supporting us. Project Compass is part of the european architectural procurement network thefulcrum.eu

www.projectcompass.co.uk provides free to use search and notification functions for public sector notices above OJEU thresholds, along with industry intelligence from its Sesame online analytics tool that derives data from its comprehensive database of past and current OJEU notices. Its Compass facilities to provide and promote best practice online project procurement guidance and practice are under development.

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16 Project Compass CIC directors

Walter Menteth

Data processing and management

B.A.(Arch), Dip Arch (PSB), RIBA, FRIAS, Director Walter Menteth Architects, Senior Lecturer Portsmouth School of Architecture, Chair RIBA Procurement Reform Group 2011-2013, member Cabinet Office SME Panel 2011- , RIBA National Councilor.

Leo Byrne Data Analytic Director at NK News. Data Analysis and Statistical Inference at Duke’s University, Advanced Excel and Access ECDL. Graduated from Exeter University in 2006.

His work on this report has been supported by an RIBA 2012 Research Trust Award.

Owen O’Carroll Dip Arch. B.Sc. MA. RIBA, Director of Urban X Architects. RIBA London Councilor. Part Time critic Southbank University.

Russell Curtis BA (Hon), BArch(Hon), RIBA, Founding director of RCKa Architects, 2014 RIBA London Emerging Practice of the Year; member of RIBA Construction Leadership Group and former chair of RIBA Procurement Reform Group; RIBA Council member for London Region.

Bridget Sawyers BA, Dip Arch., MA Urban Design, Director Bridget Sawyers Limited, a placemaking consultancy, Associate for Cultivate and Modus Operandi Art Consultants and Capital Advisor Arts Council of Wales.

The directors would particularly wish to acknowledge and thank the RIBA Hon. Fellow who has so generously contributed towards the ongoing work of Project Compass CIC and without whom the production of this report and data processing would not have been possible. Project Compass CIC co. reg. No.8529139. Front cover image copyright Treenoot Sojoeiya via Dreamstime.

ISBN 978-0-9931481-0-1

Project Compass CIC directors