News
Small Somerset project gains significant savings - OGC case study
Released on 24/03/2006
Significant savings can be made even with the smallest projects, when a framework agreement is developed and applied, as a new OGC case study shows.
Somerset County Council has achieved significant savings in time and costs, and built long-term working relationships with their contractors, while delivering a high quality project.
The Westcountry council has many temporary classrooms in 270 schools, reaching the end of their life expectancy after nearly half a century, and needed a large-scale demolition programme, which began in 1998.
When individually tendered, the market and project costs varied for each project.
Now, well into the second phase, the council has developed a bespoke framework agreement with two local contractors and managed to reduce project costs by as much as 25 per cent in some areas. An analysis of a small sample of projects, delivered under the framework agreement, showed average project costs fall from £7,810 to £5,830.
The long term working relationships, cemented since 2005, are showing significant achievements and benefits for both the council and the contractors.
Benefits for council and contractors
The benefits includes better communications and planning, more consistent costs, certainty and predictability for the council, mutual trust, valuable re-usable skills and improved project-by-project knowledge for contractors, who know the programme of works upfront and can fit in an extra project during a two-week school holiday, and all projects delivered within budget this year.
The partnering approach enables the contractors to also take on the technical officer's duties, saving £500 in technical and associated administration costs for a project costing around £8,000 or 6.25 per cent per project, contributing to 25 per cent reduction in project costs.
The framework means no tendering costs for the contractors, work is guaranteed and tendering risks are alleviated, and Somerset County Council is now able to plan a programme of works well in advance.
It is currently anticipated that the system will result in about 100 demolitions by 2007-08.
Contact details:
OGC Service Desk
Tel: 0845 000 4999
E-mail: ServiceDesk@ogc.gsi.gov.uk
© Crown Copyright 2008
Page last updated: 2008-10-20
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