Christchurch Schools Rebuild (CSR) procurement

Procurement strategy

Our procurement strategy is reducing tendering time and helping to complete projects on time and within budget.

For any questions about the CSR programme procurement strategy, please contact:

Nicholas Dye, CSR Procurement Manager

email: nicholas.dye@education.govt.nz

Tel: 04 463 1563

Bundled projects

We are bundling the projects of different schools together. The benefits are that bundling:

• reduces the time and cost of tendering and negotiating
• makes the most of economies of scale
• builds our relationships with providers so that we get a consistent      and high standard of service
• gives suppliers certainty of work over time.

These benefits are particularly important in Christchurch where the construction market is under more pressure as the city’s rebuild projects accelerate.

A key development principle is that bundles may vary in size. In this way, the full range of suppliers has an opportunity to participate. Projects are either bundled:

• vertically – where work happens at the same time
• horizontally – where work flows from one project to the next.

The way we engage services for each bundle depends on the projects it contains.

Supplier panels

For the CSR programme, we generally engage suppliers through supplier panels rather than tendering services to the open market for every project.

All the supplier panels were themselves established through an open tender process. Suppliers on the panel are not guaranteed work but may be invited to tender for CSR projects.

The supplier panels are:

• Master Planning Panel
• Project Management Main Panel
• Construction Services Panel
• Professional Services Panel.

We will only use alternative forms of procurement, such as open market tenders (via GETS), if our existing panels are unable to provide the services. We have awarded contracts for other services in this way.

For the Ministry, benefits of this approach are that:

• competition for CSR projects is tight
• procurement time and cost are reduced
• we can build close relationships with panel suppliers.

Panel members benefit from:

• less onerous and costly tendering requirements
• the clear work programme, which gives them time to plan for tendering and delivering services
• ongoing work for those who perform well
• opportunities to build and develop a relationship with the Ministry.

We review supplier panels regularly to check their performance and that we have access to a sufficient number of suppliers.

If you are not a member of a CSR panel, but would like to be a supplier, we encourage you to develop subcontractor relationships with panel members.

Master Planning Panel

On each CSR project, a master planner is appointed to complete the school master plan in collaboration with the school and the Ministry. The master plan guides the future development of a school site. The supplier works to make sure the master plan is delivered on time and cost estimates are within budget.

Each member can be on the panel for 2 years, with a right of renewal for another 2 years.

Current Master Planning Panel members:

• Architectus Bowes Clifford Thomson Ltd
• ASC Architects Ltd
• Baldasso Cortese Pty Ltd
• GHD Ltd
• Jasmax Ltd
• NBRS & Partners Pty Ltd
• Opus International Consultants Ltd
• Stephenson & Turner NZ Ltd.

The following table lists the contracts awarded so far to Master Planning Panel members.

Project Management Main Panel

Project managers work with the Ministry and schools to manage the design and construction phases of the projects.

Each member can be on the panel for 2 years, with a right of renewal for another 2 years.

Current Project Management Main Panel members:

• Beca Ltd
• The Building Intelligence Group
• Coffey Projects (New Zealand) Ltd
• Davis Langdon New Zealand Ltd
• Education Project Management
• Greenstone Pace LP
• OCTA Associates Ltd
• Opus International Consultants      Ltd
• RDT Pacific Ltd.

The following table lists the contracts awarded so far to Project Management Main Panel members.

Contracts awarded to Project Management Main Panel members

Construction Services Panel

Out of the total budget of $1.137 billion for the CSR programme, it is estimated that $650 million of construction works will be delivered through this panel. Some new builds and complete rebuilds may be delivered via other forms of procurement, including public private partnerships, or procured separately due to specific project requirements.

The construction value of individual projects ranges from $500,000 to over $30 million. These projects include new schools, school rebuilds, redevelopments and repairs.

The panel has a term of 9 years. Its performance is reviewed every 3 years. The panel may be used in other regions, if the need or opportunity arises.

The following table lists the current Construction Services Panel members.

Before the Construction Services Panel was established, we awarded construction projects through an open tender procurement process (GETS). The following table lists those contracts.

Contracts awarded for construction projects

Professional Services Panel

The panel has a term of 10 years. Its performance is reviewed every 2 years.

Panel members come from a wide range of consultancy services. The following table shows the number of panel members and the types of services they provide. The number of members for each type of service has been set so that:

• a sufficient number of suppliers are available for the rebuild programmes
• there is a balance between the amount of work and competition for the work
• members will be awarded projects frequently.

Number of Professional Services Panel members and their services

For the full list of members of the Professional Services Panel, go to the Christchurch Schools Rebuild programme Professional Services Panel.

Contracts awarded to Professional Services Panel members

Contracts awarded to suppliers who are not members of supplier panels

Assessing and strengthening ECE property

As part of the Greater Christchurch Educational Renewal Programme, we are undertaking DEEs on all buildings on Ministry land. This includes 50 DEEs on buildings used by ECE services. Of these evaluations:

• 60% are underway
• 14% are still to be issued with the adjacent school
• 26% have final reports received.

An ECE centre on Ministry land or in a Ministry building must have a lease or an ECE Property Occupancy Document (POD). This agreement sets out the terms and conditions of the centre’s use of Ministry property. The Ministry issues leases over Crown-owned land and buildings. It will issue the latest lease agreement when an old lease or an ECE POD comes up for renewal or expiry.

Responding to the results of DEEs

We provide the ECE service with a copy of the final DEE report and a contact to discuss the findings. Where the report may affect the ECE service’s occupancy, we meet with the ECE service and the relevant engineer to discuss the recommendations.

Deciding on and paying for strengthening work

Our goals are:

• in the short term, for all Ministry school buildings to be at or      above 34% of New Building Standard (NBS)
• in the medium term, for all buildings to be at or above 67% NBS.

Where required, we will generally fund strengthening on a Ministry-owned building occupied by an ECE service. Where the Ministry and ECE service have shared ownership of the building, we will work with the ECE service on sharing the costs of strengthening. If the building is uneconomic to fix (for example, due to its age, replacement cost or cost of structural strengthening), we will work closely with the ECE service on future options.

For more information on our approach to strengthening, see Strengthening school buildings.

Timelines for strengthening

Timelines for strengthening will depend on factors such as:

• DEE results
• the education renewal programme of works for schools.

ECE services on redeveloped or closed school sites

Where an ECE service operates on a school site that is being redeveloped or closed, we will assess it on a case-by-case basis. Depending on the location of the service, the ECE building may be surveyed off the site and a new lease may be issued.

Further information

For more information on the programme, please email: ChChrenewal.property@education.govt.nz.