Greg Wilkes (00:00):
Have you ever tried to get on a framework agreement? Well, maybe you’ve held off in the past because it sounded a little bit daunting. Maybe you think that frameworks are only for huge construction businesses? Well, in today’s podcast with Shamayne Harris, we are going to see that actually any construction business can apply to get on a framework agreement, and they could be really lucrative. Some framework agreements they can last for four years. So that really gives you some financial stability knowing that you’ve got that pipeline of work going forward. So in today’s episode, Shamayne is going to dive into what are the best practices to be able to get on a framework agreement, tender list? How do you do your tender submission? Do you need bid writers? Can you do it yourself? We’re going to dive into all of this and hopefully it’ll open your mind to another opportunity of leads that could come in for your construction business. Hey, Shamayne, great to have you on the podcast with us. Appreciate you joining us today.
Shamayne Harris (00:51):
Thank you.
Greg Wilkes (00:53):
So Shamayne, would you like to just introduce yourself? Who are you and what’s your company?
Shamayne Harris (00:58):
Yeah, absolutely. I am Shamayne Harris. I’m head of procurement at Pagabo. Pagabo are a framework provider, primarily serving the public sector. So we have a range of portfolio of framework opportunities that are available there.
Greg Wilkes (01:16):
Awesome. Okay, so well let’s dive in straight away and talk about what frameworks are. So people listening to this podcast, they’re generally growing one to 10 million pound sort of businesses, so some will be very aware of what frameworks are, some won’t. So do you want to just tell us what a framework is and how it works in the industry?
Shamayne Harris (01:34):
Yeah, so a framework agreement will generally be lotted based on work types or value bans, and it’s a mechanism that is awarded to a range of providers with agreed terms and conditions and legal protections. A framework agreement will generally be placed up to four years under the current regulations. So anywhere between one and four years, and once a framework agreement is awarded, it provides a faster route to market for client Organisations and suppliers. So without the need to go back out to the market for a lengthy and costly procurement exercise, that can take anywhere from 12 to 18 months depending on the scope and complexity of the requirement. There’s a faster route to market there that can be turned around in as little as eight weeks. So it really does reduce down the burden on those Organisations.
Greg Wilkes (02:40):
Sounds fantastic. So what type of companies would frameworks work for size businesses? Would it be the smaller ones or have you got to be a huge company?
Shamayne Harris (02:49):
Not at all. No. There’s a huge range of Organisations that would benefit. There’s actually a lot of benefit for some of the smaller Organisations because it does reduce down that administrative burden, that dedicated tendering resource that would be needed to continually bid for these opportunities. So it’s a great resource for a range of size of Organisations.
Greg Wilkes (03:13):
Sounds good. Okay. So just give us an example of what typical Organisations might use framework agreements, just so we know who we potentially pitching to or working for.
Shamayne Harris (03:22):
Yeah, absolutely. So our framework agreements would be procured under PCR, so the public contract regulations that are in place at the moment. So the regulations that we procure under at the moment are p PCR 15. They’re soon to be replaced next year. So the framework agreements that we place would primarily be for public sector Organisations, so for public sector clients, but in terms of the bidding Organisations, that could be construction Organisations, contractors, consultants, FM Organisations, there’s a range of Organisations that would benefit from being placed on a framework. There’s no limit to the Organisations or benefits that a market benefits that a framework would provide.
Greg Wilkes (04:13):
Fantastic. So when we’re talking about public sector Organisations, we’re talking about what NHS and
Shamayne Harris (04:18):
Yes, that sort of thing. Okay, education sector, absolutely, yes.
Greg Wilkes (04:23):
Yep. Fantastic. Okay, so getting on a framework, obviously having that part, that potential four year agreement sounds fantastic, but something that might put people off is the timeline of how you actually get on a framework. Are we talking years and years from when a framework initially comes out to get in on it? Can you walk us through a typical timeline?
Shamayne Harris (04:44):
Yeah, absolutely. What I’ll do is I’ll take you through the current timeline based on the current regulations and then I’ll touch on the procurement reform act that’s scheduled to come into place next year and the impact that that will have.
Greg Wilkes (04:59):
Sounds good.
Shamayne Harris (05:00):
So the current timeline then at around the 12 month mark pre-pro procurement activities will begin. So that is when there will be announcement to the market to advise that it is our intention to place a framework. So at that 12 month mark, there will be a formal notice that’s launched on the find tender and that will allow all Organisations to be aware of what’s coming up and the timelines associated with that, any coding that’s attached to that, so CPV code, et cetera. Between the nine and 12 month mark, we will further define that scope of service. So we will continually engage with the market. We’ll really encourage that engagement across the board to help us define what the scope is, what the barriers for entry are, any scope specific requirements or qualifications that need to be considered in that scope and spec. So around that nine month mark, we’ll be formalizing that scope and spec, and then around the six month mark, we’ll announce the confirmed scope route to market.
(06:12):
So the platform or the portal that we’ll be utilizing, we’ll announce what that opportunity will look like in terms of mandated requirements, minimum standards, key barriers for entry that should be considered when assigning resource to a framework opportunity, a timeline in terms of when we plan for the framework to commence. So at that point we’ll announce to the market generally via a webinar to say that these are our intentions and these are the plans, and then we will open that tendering opportunity. So the mandated minimum timescales for a framework opportunity are 30 calendar days. Now that can be scaled proportionately to the scope of service or the requirements of the tendering exercise. If it’s a particularly complex procurement exercise that can be scaled up to suit that
Greg Wilkes (07:10):
Fantastic.
Shamayne Harris (07:11):
Once those are returned back, then there’s an opportunity to reevaluate and look at that to assign that award recommendation.
Greg Wilkes (07:20):
Great. So are we saying then, if I’ve understood that correctly, we’re talking about 12 months in total when you first find out about something to get an appointed, so it’s not talking years and years, are we? It’s pretty quick I guess with what’s involved there.
Shamayne Harris (07:34):
Yeah, absolutely. It is around the 12 month mark that those engagements will start and then there’ll be a period to commence in that framework, but generally around nine to 12 months in advance.
Greg Wilkes (07:46):
Yeah. Okay, fantastic. So if someone’s listening to this and they think, yeah, I’d love to get on a framework, it sounds really good. What are the critical things they need to be thinking about so that they can be considered to get on a construction framework?
Shamayne Harris (08:03):
What I would recommend is that all Organisations in the first instance register for the finder tender service. So the finder tender service will be that trigger point for opportunities that are coming up, and that will be that sort of call to action in terms of this is where your opportunities are, this is what’s coming up in the market to allow them to plan that resource. Then it would be engaging with that framework organization to take part in that pre-market engagement piece. So it allows for their considerations to be added into that decision making process there. Then I would really encourage any potential bidding Organisations to attend any events that are scheduled. So for example, we will schedule those webinars. The content of the webinar will set out the expectations of the procurement, and approximately 50% of the procurement can be prepped in advance. So from that six to nine month mark, a bidding organization could effectively be prepping for the procurement exercise prior to it going live. So things like company accounts, policies, insurance documents, gathering that data in advance, so it’s a much faster turnaround in more streamlined to process. So it really does allow for that to happen, and like I say, it reduces down that burden on the resource element.
Greg Wilkes (09:39):
That sounds good. So thinking of the resources that someone’s going to need a construction company in order to get on this framework agreement straightaway, you said you want to start preparing your bid for it. So what would be the recommendations of who they’re going to potentially have to use? Is it someone who’s a bid writer, are they going to need qss? What’s the sort of professionals that they need to bring in to help ’em with this?
Shamayne Harris (10:03):
It really does depend on the scope and the complexity of the framework agreement. I would say approximately 70% of our bidding Organisations bid directly and don’t use bid writers. So there is that ability there. The documents are so comprehensive and clear that it provides a really clear route to submission. Those documents are incredibly transparent, so there isn’t any hidden elements in there. So it does allow for someone without a procurement background necessarily to bid on that work and provide that response. So it is providing the best possible opportunity for participation there. The documents are very clear, but there are bid writing opportunities and there are Organisations that can support with that bid should that be needed.
Greg Wilkes (10:57):
That’s really good. Yeah, so that’s really good to know because now it feels like it’s in reach of anyone listening to this that they could potentially do that. So how do you improve your chances of success then if you want to write a bid yourself or you’re going to do your own submission, there must be ways of improving your chances of getting on that framework. What would you recommend for that?
Shamayne Harris (11:18):
Absolutely. I would recommend thoroughly reading the tender documentation that will include all of the requirements, all of the barriers for entry, so thoroughly reading that documentation and asking questions throughout a tender period. Bidders are encouraged to ask tender queries, so raise any queries, any ambiguities, any information that they feel is not particularly clear, and those questions will be answered whether it would be pointing a bid in the direction of the information in the document or clarifying through those responses. So I’d really encourage that in the first instance. It’s a really beneficial tool. That preparation piece is essential. Equally, when we’re focusing on, for example, quality questions, the quality questions will always be accompanied with guidance notes or sub-criteria, which are essentially a list of all the requirements that are expected to be seen in that response. So it really does give a framework of how that bid is expected to be provided. So it’s a great supporting tool for experienced or inexperienced within Organisations.
Greg Wilkes (12:34):
And will criteria, will it clearly outline the criteria in, oh, you’ve got to be ISO certified, or you’ve got to have construction line or whatever the different things are. Will it outline what qualifications you need or accreditations rather?
Shamayne Harris (12:47):
Yeah, absolutely. So there’s generally two parts to a procurement exercise. There is the mandated minimums, which are often referred to as selection criteria, and then there are the award criteria. So that will be quality criteria that’s marked. So you’ll get your minimum standards that have to be reached, and then you’ll get your marked elements. So the minimum standards should always be disclosed ahead of time, so it’s clear forbidding Organisations to see what those standards are. Equally, they must be proportionate. They can’t be an unnecessary barrier for entry, so this should only be directly linked. Again, sort of reducing down that barrier for entry, reducing down opportunities for participation from all Organisations. Then with the quality criteria, that element will be marked. So it’s the opportunity for bidding Organisations to put their best submission forward based on their experiences and the quality criteria will always be looking forward. So it’ll always be demonstrate a time when you have done the following and how could that be applied to this particular scope. So it allows bridging Organisations to use their past experience and previous work baskets to demonstrate how they could apply to that particular framework.
Greg Wilkes (14:11):
Fantastic. So this may sound like a stupid question, but are you submitting prices along with your submission or are you just literally submitting the quality of your business and a bid that way? How does that work?
Shamayne Harris (14:23):
Yeah, absolutely. So there will always be a requirement to provide a commercial and a quality bid. The commercial bid would differ depend on the requirement. So this could be a mix of day rates, for example, or overhead and profit rates. It depends on the particular requirement. Generally, within the construction sector, we see overhead and profit rates, so that will be a maximum percentage applied to those particular forms of contracts that are listed. So whether that be NE C3, NEC four JCT, et cetera, and that will be an opportunity for those bidding Organisations to submit their maximum overhead and profit rate that they would intend to bid for. Equally, if we’re looking at something like professional services where there tends to be a day rate or an hourly rate, it’s an opportunity for those consultants to submit their maximum day rate or hourly rate.
Greg Wilkes (15:26):
Right. So when obviously in construction price matters, is it always about price then if someone comes in with the lowest percentage, what’s the weighting of price versus quality submission?
Shamayne Harris (15:40):
Yeah, absolutely. It’s a question that we’re asked quite a lot. Price does have an impact. However, the way our frameworks are structured, they will be between 60 and 70% awarded for the quality element. So it does demonstrate there we’re a high proportion of the award recommendation is weighted towards the quality.
Greg Wilkes (16:05):
Yeah, that’s good. That’s really good to know. Okay, so you spoke previously about your feedback process when we were arranging this podcast. So tell us a little bit more about what your approach is to these frameworks and your feedback process.
Shamayne Harris (16:19):
Yeah, absolutely. So we recognize that bidding on these frameworks, it can be a fairly resource heavy requirement, and it’s important for bidding Organisations to get some really thorough and comprehensive feedback and that be whether they’re successful or unsuccessful for their applications. So what PGA BO do is provide a really thorough list of documents and feedback for bidding Organisations to allow them to see where they scored really well on where there’s opportunities for improvement. So it drives that betterment. So the format that feedback will come in, in the first instance, it’s a letter to demonstrate what the award recommendation was, and then it’s supported by a number of appendices that model their response against other responses within their same categories or their same lot applications. Equally, there will be a comparison within the quality responses to the best quality scarring bidder. So it allows that bidding organization, whether they were successful or unsuccessful, to see what the highest scarring bidder obtained and how they obtained that, and that’s really, really beneficial. It gives them that opportunity for improvements in the future. That feedback is separated out by positive and negative, so it demonstrates all the positives of their responses, but it also demonstrates where there’s areas for improvement or where that response didn’t meet the guidance notes or the sub-criteria. So it does really provide a targeted list for improvements in the future.
Greg Wilkes (18:09):
That’s really useful because it would be so frustrating, wouldn’t it, if you’re spending days and days putting a submission in and then you don’t know where you’ve gone wrong or having any feedback. So that’s absolutely crucial. Can I just quickly interrupt this podcast and ask you please for a favor, we are constantly trying to bring you the best value and the best specialist guests to come on this show, but the only way we can do that is if we start growing this channel. So could you please subscribe to the channel if you haven’t already, and we’d love it if you could give us a review. These reviews really help promote the algorithm and promote engagement, and it means that our guests can see that we’ve got a really successful show. I hear from you in the background that you’re enjoying it, so please take five minutes to do this. It will really mean a lot to me and help the show going forwards. So thinking about that going forward, once you’ve put all the work into doing your first submission and then you get the feedback on it, is it generally, am I right in saying that if you are going for the same types of frameworks, will the submissions be generally the same or do they vary wildly? In other words, once the first one’s done, does it get easier to do the next ones?
Shamayne Harris (19:17):
There will be some standard utilised. Organisations will approach that in different ways. But for example, there will always be questions on project management. There will always be questions on capabilities, social value, for example. Those will be questions or sub-criteria that will be utilised time after time on the large majority of frameworks. The question may be worded in a slightly different way, but those criteria will remain. So there is definitely opportunity to take feedback from a Pabo framework and utilise that on other frameworks, whether that be other frameworks, PUA frameworks, or alternative offerings in the market. There will definitely be that opportunity where you can take that feedback and use it on other opportunities.
Greg Wilkes (20:14):
So that probably segues quite nicely into my next question is are there lesser known frameworks that SMEs can potentially target that might have a little bit less competition and present more opportunities for some?
Shamayne Harris (20:26):
Yeah, so thinking about the SME piece then, so what Pagabo do is we have pre allocated spaces for SMEs and that’s declared. So as an example, on a construction framework, we may have four value bans and the lower value bans. What we will do is pre-assign SME allocations. So if there are a total of eight core places available, we may assign four of those places to SMEs. So the four highest scoring SMEs will be allocated first, and then the four remaining places will be assigned to the highest scoring non SME allocations. So that provides a great opportunity for SMEs to really get the opportunity to be awarded to those places. What we see is the lower value bans have a higher SME allocation on them, so it’s proportionately weighted. When we’re thinking about lesser known frameworks, what I would recommend is the DPS opportunities that we have.
(21:36):
So the dynamic purchasing system. So we have two dpss in place at the moment with a few more in the pipeline for next year. The dpss are structured in a slightly different way to a framework. A framework has a gated entry point, so there is no opportunity to get onto that framework after that gate is closed for that one to four year period, depending on the length of the framework. However, A DPS provides a continual opportunity. So if a framework DPS is in place for four years, there’s an opportunity throughout that four year period for any Organisations to gain access and be appointed to that DPS. So it does provide SMEs with an opportunity to apply for that DPS get some experience of that particular type of work, whether it be small works, for example, a small works DPS allocates work for up to 3 million pounds. So there’s the opportunity there to be placed onto A DPS, gain that exposure and that experience potentially utilise that as demonstration points for the framework in the future.
Greg Wilkes (22:52):
Fantastic. Yeah, so that sounds really good and opens the door up for maybe smaller businesses. Thinking about the, I didn’t ask this earlier, but thinking about the values of frameworks, do they have a minimum value that frameworks generally start at what sort of companies would be pitching for those frameworks? What sizes?
Shamayne Harris (23:10):
It differs. We have some frameworks that start at zero equally, we have some frameworks that start at 50,000, so it does differ, but that is a low value band. So these frameworks can go anywhere upwards of projects of 30 million inva. So there’s a really big range there. So what it does is it allows us to lock those frameworks in those value bands that can really encourage that SME participation, lotted in that structure.
Greg Wilkes (23:43):
Yeah. Can you tell us what the smaller value bands are? Do you know what they are off the top of your head? Yeah,
Shamayne Harris (23:48):
It does differ from framework to framework, but as an example, there could be a value band that starts at zero to 1 million and then there’ll be 1 million to 3 million, 3 million to five, five to 10, 10 and over. So that could be an example of the lotting structure for each of those frameworks.
Greg Wilkes (24:12):
That’s brilliant. So now you are picking something that you are capable of delivering and can feel comfortable bidding for, so that’s fantastic. So I guess you’ve seen a lot of businesses apply for these framework agreements and probably done quite well out of it. Have you got any success stories at all Shamayne of businesses that have used PGA bow’s frameworks and done quite well?
Shamayne Harris (24:35):
Yeah, absolutely. There’s been a lot of our Organisations that have worked with us, whether it be enter onto our DPS and then have transitioned over to our frameworks and the framework is really an opportunity to collaborate with the market. There are two key award routes via framework, which would be the call off and the further competitions, and then the call via the direct awards. So the direct award opportunity, it provides the opportunity for those successful Organisations on the framework to consult with the market and collaborate and gain that entry much earlier in the exercise. So it provides benefits across the board there so that there’s lots of great success stories from our frameworks. We also see a lot of consistent bidders on a lot of our frameworks. So there’s consistency there definitely within the construction space, and what that does is really demonstrate the success of the frameworks and how well they work. That bidding Organisations will continually bid for multiple frameworks of ours.
Greg Wilkes (25:47):
Fantastic. Yeah, that sounds awesome. So if someone’s listening to this and they think, yeah, I’ve always wanted to get into frameworks, didn’t quite know how to do it, I’d like to take things further, what would you suggest is the next step for them?
Shamayne Harris (25:59):
What I would suggest is to sign up for our upcoming and forthcoming opportunities, which we register on our tendering portal. That is ultimately a list of upcoming frameworks and it allows bridging Organisations to express an interest. All of our communications via procurement exercises are issued on that portal, so it’ll give them access to up-to-date timelines. Any messages around webinars or engagement opportunities will come via that route. So it really drives that communication into that to one place. So I would recommend that Link would be accessed and signed up to any updates on that one.
Greg Wilkes (26:43):
Fantastic. And then going forward, like I said, they can get on some webinars, learn a bit more about it, dip your toe in the water a little bit before you go for something substantial. So yeah, that sounds really awesome. So we can put the link to that in the show notes. Shamayne, have you got something we can do for that?
Shamayne Harris (27:00):
Yeah, absolutely.
Greg Wilkes (27:01):
Yeah, great. And what is the website people can visit? Just if you just want to say it if people are taking note.
Shamayne Harris (27:07):
Yeah, we utilise Intend as our tendering portal, so I would recommend that intend is accessed. Equally, I would really recommend that all BID and Organisations are signed up to alerts on the finder tender system to make sure that any pin notices, any notices in reference to engagement are identified. And bidders can set up alerts for keywords, whether that be construction, professional services, decarbonization, they can set up alerts, so it allows them to know what is going on in the market and what’s coming up. So it really supports that pipeline planning of resources as well.
Greg Wilkes (27:49):
Fantastic. Well, that really opens up an opportunity for many that are listening to this that may have never considered this before. I didn’t quite know what the next step is. So really appreciate you coming on today, Shamayne. I think that’s probably opened the eyes of a lot of people what is potentially out there in the UK for work in construction. So thank you so much for your time. Thank.
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