Currently public procurement practice presents a challenge to the development of offsite manufactured advanced timber systems and to the delivery of net zero carbon homes manufactured in Wales. This problem has been articulated by the Welsh timber frame manufacturing members of Woodknowledge Wales and summarised below.
Facing the problem
Current procurement practice is based predominantly upon cost and risk management. The
risk is initially transferred from the housing client to the main contractor via a Design & Build contract. The successful tenderer typically disaggregates some liabilities into discrete parcels and then passes risk onto sub-contractors. As a result, manufacturers are engaged too late to influence design that would ensure performance outcomes. Potential financial, speed and quality gains are rarely fully realised. Profit margins for manufacturers remain very low and the lack of continuity in relationship between client and supplier hinders continuous development to evolve manufacturing.
Despite perceptions of the contrary, current regulations are actually designed to support procurement of Net Zero Carbon homes. Whether it is a long term strategic collaborative procurement, or a single client contract to build 5-20 houses, above or below procurement threshold levels, the regulations can and should be applied to protect our future generations.
Value-Based Procurement is a method that goes beyond timing, price and quality, aligning with Government policies and corporate priorities, which put outcomes and impacts on future generations at the heart of our procurement and commissioning strategies.
This diagram depicts the regulatory elements that enable a Net Zero Carbon procurement strategy.
Find all regulations and how to apply them in a Value-Based Procurement approach in this guidance document.
It is designed to help procurement professionals and commissioners demonstrate how Net Zero Carbon can be specified as a core requirement of housing developments. This includes a look at supply chain relationships and how these can shift from the current norm of design and build to one that allows the commissioning client more control over the process and outcome.
The guidance is intended to be a helpful reference tool, from early supplier involvement to through to supplier relationship management – so that delivering Net Zero Carbon homes is at the heart of housing procurement decision making.
Procurement expert Simon Griffiths demonstrates how public procurers can use existing regulations as enablers for procurement of net zero carbon housing and to award contracts to suppliers, under the principles of openness, transparency, and non-discrimination. It provides full insight into relevant regulations, and how they can be applied when designing your supply chain to achieve a Net Zero Carbon outcome.