Philip Snowling, PSG Business Consulting An overview of Highways Supplier Relationship Development(SRD) principles; including a review of smarter contract behaviours,best practice findings and case studies

1. Highways Supplier
Relationship Development
(SRD)
Local Transport Today
9th November 2011

2. Agenda
• SRD
– Principles
– Who has been involved
– Approach
– Change in Emphasis
• Overview of Best Practice findings
– Conway clients
– Volker clients
• Comments
2

3. SRD - Principles
• To analyse the relationships between
buying and supplying organisations to
identify scope for greater efficiencies
– It’s a two-way process
– Opportunities to improve performance –
smarter contract behaviors
– Opportunities to implement cost savings for
mutual benefit
3

4. Who has been involved
Conway Clients
Volker Clients
Enfield
Barnet
Harrow Haringey
Redbridge
Waltham
Forest
Havering
Brent
Camden
Barking &
Newham Dagenham
Tower
Hillingdon Ealing City Hamlets
Greenwich
Hounslow Bexley
Wandsworth
Richmond Lewisham
Merton
Kingston
Bromley
Sutton
Participating 6 Croydon
Participating 5
4

5. SRD – Approach
• Series of Briefings and Meetings
• Create initial SRD Strategy via
- Market Information
- Common Assessment Framework
- Project Manager Visits
• Appoint Negotiation Team
• Negotiation Sessions – best practice
identification
• SRD Strategy document
You and Your Contractor –
www.capitalambition.gov.uk/srdbestpractice
SRD White Paper -
www.capitalambition.gov.uk/srdwhitepaper
The “SRD toolkit” –
www.capitalambition.gov.uk/srdtoolkit
Negotiation
Meetings 5

6. Max.
Max.
VOLKER HIGHWAYS F M CONWAY
Current
Current
Service Delivery Manager (Co-
7
1
6
Drainage Products
16
Located)
Formally Integrated Team -
7
7
2
Recycled Materials
16
Partnering Charter
Footway Specification Early Contractor Involvement
7
7
16
16
Materials Specifications &
Alteration (Walk and Build)
Intelligent KPIs - financial
7
2
Sliding Scale Discount
4
16
implications
Discount for up front Partially Managed Service -
7
0
3
16
payment Safety Inspections
Partially Managed Service -
7
0
Discounts for Turnover
Fixed Spending & Profile
7
Best Practice
16
Scheme Design
Joint Completed Works Partially Managed Service -Full
7
1
1
16
Inspection - Large jobs Scheme Implementation (design,
consultation and construction)
Joint Completed Works
7
0
7
Lump Sum / Early Payment
16
Inspection - small jobs
Best Practice
Remote Monitoring of
7
0
Volume Discounts - Sliding Scale
3
16
Street Lighting
Discount
Temp. Make-safe of
7
2
Fixed Spending Profile and
Operational Mangement
5
16
damaged gully grates
payment
Find & Fix approach to
7
2
potholes
Standadised approach to
7
7
Overview of Findings
procurement (e.g PQQ,
CHAS, PAS91)
Minimised Numbers of
7
2
Invoices
Early Contractor
7
7
Involvement
Contract Operations
6
Contractor undertakes
7
0
Design

7. Some comments
• Difficulty (reluctance from contractor) in
getting savings amounts
• Contractor can do more than is being asked
of them.
– Have provided indications of future service
developments – e.g. Design,
• “Thin client” model
– How far can you/do you go?
• Varying exploitation of Highways Systems
– Mobile
– Accuracy of Asset Inventory
– Sometimes hampered by local IT
7

8. Thank you
8