Procurement strategy€¦ ·  · 2016-08-13Paul Spiller 01442 233444...

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Procurement strategy

Transcript of Procurement strategy€¦ ·  · 2016-08-13Paul Spiller 01442 233444...

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Procurement strategy

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Contents

1. Introduction 42. Scope 53. Key principles and procurement policy 64. Health and safety 75. Fair dealing and prompt payment 106. Supply chain engagement 127. Sustainability 138. Delivering best value 179. Glossary 18

Sir Robert McAlpine is a leading UK building and civil engineering company. A family-owned company founded in 1869, our corporate stability, pioneering approach to construction and consistent ability to deliver have always kept us at the forefront of the industry.

We aim for excellence in design and construction matched by the highest standards of management and technical skills.

We also look to fulfil our responsibilities to the communities and environments in which we operate while working in a way that is safe and sustainable.

Our continued success is underpinned by the quality and expertise of our staff, our collaborative approach to business and our skill at providing clients with cost-effective solutions to construction challenges.

Contact us

Paul Spiller 01442 [email protected]

RIght: Horizon House, Bristol.

Cover: Orbit Tower, London.

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Sir Robert McAlpine

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Sir Robert McAlpine

PROCUREMENT STRATEGY

The Government’s Procuring the Future report in 2006 defined sustainable procurement as a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis.

This definition and the concept of value for money (best value) have ever increasing consequences when it comes to achieving a sustainable approach to business. Sir Robert McAlpine Ltd recognises the false economy that exists when procurement decisions are made solely on the basis of upfront costs as well as the social, economic and environmental advantages that can be achieved from procuring on a whole life cost basis.

This document sets out Sir Robert McAlpine’s approach to procurement and provides guidance for our staff, clients and supply chain in the delivery of best value.

This strategy document is intended to complement existing company policies and procedures by integrating our approach to increase the efficiency and effectiveness of our procurement practices. As such, it should be read in conjunction with the following:

1. Introduction

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• Company Procurement Policy• CompanyQualityPolicy• CompanyEnvironmentPolicy• CompanySustainabilityPolicy&Sustainability

Strategy• CompanyEthicalPolicy• CompanyPolicyonEqualOpportunities• CompanyHealthandSafetyPolicy• CompanyDrugsandAlcohol Policy

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The scope of this document includes the procurement processes involved with the acquisition of materials, subcontractor works and consultant services based on the following definitions;

Materials – The purchase of products/materials/services directly from suppliers by Sir Robert McAlpine.

Subcontractor Works – The procurement of work including labour/plant/materials via a subcontractor for a Sir Robert McAlpine project/office/plant yard.

Consultant Services – The procurement of an architect, structural engineer, mechanical engineer, electrical engineer, landscape architect and other designers and/or consultancy practices to carry out design and / or consultancy work.

Whether purchasing directly or indirectly, Sir Robert McAlpine requires suppliers, subcontractors and consultants to manage the social, environmental and economic impacts of their operations. Where such organisations may not initially meet all our requirements, we shall work with the supply chain to develop their business practices. Sir Robert McAlpine does however expect the supply chain to be working towards compliance with this document and the company policies as outlined above.

2. Scope

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Emirates Arena and Sir Chris Hoy Velodrome, Glasgow.

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The guiding principles which underpin the Sir Robert McAlpine procurement process and desire to deliver best valuearedescribedintheCompanyProcurementPolicywhich highlights the following key objectives:

• Tosecurethe health and safety of our work force and those who may be affected by our operations;

• Toensurefairdealingsandpromptpaymentforoursupply chain;

• Toengagewithoursupplychaintoensureproactiveand collaborative two-way communication. This will disseminate our values, engender innovation and enable continuous improvement.

• Todriveoursustainability objectives through all goods and services procured.

The requirements outlined within the subsequent sections ofthisdocumentidentifyhowweasaCompanycandeliveragainst the principles of our Procurement Policy.

3. Key principles and procurement policy

Olympic Stadium, London.

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As identified in our Health and Safety Policy, Sir Robert McAlpine is committed to rigorously safeguarding the health and safety of everyone involved in or affected by operations while providing a healthy working environment for all our employees. We believe that our inclusive health and safety culture, clear leadership commitment and active management of risk are fundamental to the success of our projects and the maintenance of our reputation.

AsamemberoftheUKCG,SirRobertMcAlpine supportstheUKCGHealthandSafetyCharteranditsoverall vision:

‘to attain a world class and industry leading position in health and safety as well as providing leadership for others in the construction industry.’

We work proactively with our supply chain to prevent workplace accidents and create a healthy and safe work environment where everyone goes home injury free every day. The health and safety performance of our supply chain is of the utmost importance to us and is therefore a key criterion in the selection process for the materials, subcontractor works and consultancy services we utilise.

MANAGEMENT SYSTEMS

We expect our suppliers, subcontractors and consultants to manage their risk via Health and Safety Management systems appropriate for the nature and scale of their business. Such systems must ensure compliance with health and safety law, standards and codes of practice specific to their work activity.

Sir Robert McAlpine shall give preference to those suppliers, subcontractors and consultants who can demonstrate their management system has an external certification (e.g. ISO18001 or equivalent) from a UKAS accredited body. However, further project specific competence checks may thereafter be necessary. Where required, we will work with our supply chain to support achievement of external certification.

We expect health and safety risks to be identified and mitigated using appropriate risk management strategies along with a means of assessing the effectiveness of the measures implemented.

4. Health and safety

Any subcontractor or supplier working on site is expected to provide detailed risk assessments and method statements for the proposed works to be undertaken. Under no circumstances will any work be permitted to commence on site until risk assessments and method statements are received and accepted by Sir Robert McAlpine. We expect the contents of method statements and risk assessments to be effectively communicated to the workforce via a Daily Activity Briefing (DAB) before work commences and that all works must be properly supervised.

InadditiontothestandardPPErequirements(e.g.hard hat, hi-viz, steel toe capped and mid sole protection footwear) Sir Robert McAlpine also mandates the use of gloves and light eye protection across all sites (unless expressly excluded by a risk assessment) and requires the supply chain to comply with this requirement at all times.

LEGAL COMPLIANCE

Sir Robert McAlpine requires the supply chain to undertake work in accordance with relevant health and safety legislation and that a suitable auditing process is in place to demonstrate compliance.

We expect our supplier, subcontractor and consultant services to identify and demonstrate compliance with the health and safety legislation applicable to their work activity. However, for key health and safety legislation such astheConstruction(DesignandManagement)Regulations,we require details of how our supply chain complies with these requirements before they can become a supplier, subcontractor or consultant to Sir Robert McAlpine.

InaccordancewiththeHSE’sACoP‘ManagingHealthandSafetyinConstructionAppendix4’,SirRobertMcAlpine requires evidence of compliance with these regulationsviaourStatusInformationQuestionnaire– Appendix 1- Management of Health and Safety Information.

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TRAINING & COMPETENCY

Our supply chain is required to produce evidence of competence for all employees prior to the commencement ofanyworksonsite(e.g.ConstructionSkillsCertificationScheme(CSCS)/ConstructionPlantCompetenceScheme(CPCS).Tomeetourobjectiveofhavingafullyqualifiedsite workforce, all employees must have successfully completedaUKCGrecognisedindustrytrainingscheme.We require our supply chain members to demonstrate their commitment in meeting this goal through the provision of training required to achieve recognised skill levels.

We require any employee working on site to hold a recognisedcarde.g.CSCS,whichreflectstheirskill/ability.

Furthermore,incompliancewiththeUKCG’sHealthand Safety Training Standard (www.ukcg.org.uk/activities/health-safety/training-standard/), Sir Robert McAlpine is committed to increasing competency and improving leadership in health and safety by developing the knowledge and skills of those who direct, manage, supervise or undertake construction related activities.

The Training Standard identifies the minimum qualifications required for each individual role. In relation to Managers and Supervisors, Sir Robert McAlpine requires:

All Managers to have completed:

• ConstructionSkillsSiteManagementSafetyTrainingScheme (SMSTS) (5Days) or

• InstituteofOccupationalSafetyandHealthManagingSafelyinConstruction(4Days)or

• Acomparablecourse,recognisedbytherelevantSectorSkillsCouncilorTradeAssociation.Detailsoftheserecognised courses can be viewed by following the link below: http://www.ukcg.org.uk/activities/health-safety/training-standard/

All Supervisors to have completed:

• Construction Skills Site Supervisors Safety Training Scheme (SSSTS) (2 Days) or

• Acomparablecourse,recognisedbytherelevantSectorSkillsCouncilorTrade Association. Details of these recognised courses can be viewed by following the link below: http://www.ukcg.org.uk/activities/health-safety/training-standard/

We will audit our supply chain regularly to ensure that the above training expectations are met. This includes the requirement for employees to attend refresher courses as defined by the individual training provider. If a refresher course is not available the original course, or similar, should be re-sat. We require full access to certificates, cards and any other evidence that demonstrates compliance with our minimum requirements for health and safety training. Failure to provide evidence of the required training may result in access to a project or site being denied.

Sir Robert McAlpine requires, as part of any Health and Safety Management System, all employees to receive site based training on health and safety aspects applicable to their work activity. This may be via organised tool box talks, daily activity briefings, training sessions etc. We will request a copy of a company’s training programme and audit against it. We would also expect to have access to attendance registers, training material content as well as evidence of an appropriate level of training for the training provider.

OCCUPATIONAL HEALTH

As part of Sir Robert McAlpine’s on-going commitment to improve health and safety, we are committed to supporting and monitoring the occupational health of our employees and those of our supply chain. We require our supply chain to either have a system in place or be committed to putting in place the following minimum occupational health arrangements:

• Ensuresuitableandsufficientwelfarearrangementsarein place and maintained in good order throughout the project.

• Demonstratetheoccupationalhealthrisksthatarelikely to be encountered and how they will deal with these and monitor effectiveness.

• Demonstratetherearesystemsandproceduresinplace to deal with health surveillances when identified in a risk assessment. If employees are exposed, management arrangements must be in place for the rehabilitation of these individuals.

• Toolboxtalksandotherpromotionalmaterialsonoccupational health issues are to be used to improve the understanding of health risks to the workforce.

•Monitoroccupationalsicknessabsence.

4. Health & Safety

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DRUGS AND ALCOHOL

TheCompanyiscommittedtoprovidingasafe,healthyand productive working environment and to safeguard the health, safety and welfare of those affected by its operations. This includes ensuring that everyone working on our projects or in our offices is fit to carry out their activities safely and effectively in an environment which is free from alcohol and drugs misuse.

All employees, including those of our supply chain, are required to arrive at our places of work fit for their role and able to carry out their activities without limitations due to the use or effects of alcohol or drugs. We will undertake random testing in line with our Drugs and Alcohol Policy across all workplaces. We operate a zero tolerance policy in respect of illegal drugs and will observe the current legal drink drive limit in respect to alcohol.

SAFETY LEADERSHIP TEAM

We work proactively with our supply chain to prevent work place accidents and near miss incidents through increased training and awareness to create a healthy and safe work environment. The Sir Robert McAlpine Safety Leadership programme was initiated to support this approach and is designedtohelptheCompanyachieveitsaimforeveryoneon our sites to go home safe at the end of every day.

On each project a Safety Leadership Team (SLT) is established comprising representatives for all project partners (client, Sir Robert McAlpine, subcontractors, consultantsetc.).Promotingoursafetymaximof‘BeSafeHome Safe’, members of the SLT act as the champions for health and safety on each project and conduct safety tours, chair safety meetings and provide safety mentoring. The champions also act as the conduit through which site personnel can air health and safety concerns with the understanding they will be listened and responded to swiftly and effectively.

While the SLT sessions are chaired by Sir Robert McAlpine we require our subcontractors and suppliers to attend Safety Leadership Team and associated workforce engagement workshops as part of the SLT programme. All employees are required to attend a workforce engagement workshop within the first two weeks of attending a site induction. We also expect our supply chain to support the workforce engagement programme by assisting in the delivery of these sessions. We will ensure adequate training is provided for those employees that carry out this task.

In conjunction with the SLT initiative, Sir Robert McAlpine undertake regular workforce consultation meetings ensuring the workforce are given every opportunity to raise any issues concerning site safety, welfare and health. Daily activity briefings will be conducted with the cooperation and input from all employees at the starteachworkingday.Weoperatean‘opendoor’policytowards consultation to ensure worker engagement is occurring and easily accessible to all. We expect our supply chain to support the workforce consultation meetings by ensuring employees (elected or volunteers) are available to attend such meetings.

62 Buckingham Gate, London.

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10 5. Fair dealing and prompt payment

Our experience tells us that being honest, open and fair with our supply chain and clients is key to building mutual trust and positive working relationships which ensure they want to work with us again.

FAIR DEALING

Sir Robert McAlpine is committed to the delivery of a transparent procurement process which ensures our supply chain is aware of our expectations and selection criteria and that our clients receive value for money.

WeareamemberoftheAchillesBuildingConfidencesupply chain accreditation scheme and use this system as a tool for managing our supply chain. Whilst we support and encourage our supply chain to become accredited with this scheme we do not mandate this as a requirement to becoming a supplier, subcontractor or consultant to Sir Robert McAlpine.

We maintain a database of suppliers and subcontractors across the UK. We welcome enquiries from all interested parties but require satisfactory completion of our Status InformationQuestionnaireormembershipoftheAchillesBuildingConfidencescheme.

Compliancewiththerequirementsofthisprocurementstrategy will be managed through the Sir Robert McAlpine procurement and tendering process. There may be additional requirements pertinent to a particular project or service, and where this is applicable; these shall be communicated to all prospective subcontractors and suppliers as part of the tendering process at the earliest opportunity.

We require our supply chain to operate with transparency and as such we may request information about a product, process or service.

We expect our supply chain to not collude with any other tenderers during the tender process or be party to any cartels. Should evidence be found that proves collusion has taken place or that a cartel is in operation then those tenderers will be immediately excluded from the tender process and, subject to review, may be removed from our database of approved suppliers and subcontractors.

PROMPT PAYMENT

Sir Robert McAlpine operates a transparent payment regime whereby terms are agreed relative to the provisions of our main contracts. We utilise industry standard forms of subcontract which are amended only to align with the provisions of a main contract.

We require our suppliers and subcontractors to extend similar payment terms to their subsequent supply chain and to comply with any current statutory legislation. When requested, we shall seek evidence from our suppliers and subcontractors to ensure that such payment regimes are being adopted.

WeareasignatorytothePromptPaymentCodeandaretherefore committed to:

• Payingoursubcontractorsandsuppliersontime• Givingclearguidancetooursupplychainonthe

payment processes

We expect our supply chain to adopt the principles of thePromptPaymentCodetotheirownrespectivesupplychains.

ETHICAL CONDUCT

Committedtothehigheststandardsofethicalconductandintegrity in our business activities, Sir Robert McAlpine has established effective measures to prevent and eliminate corruption in all its forms including extortion and bribery.

OurCompanyEthicalPolicyoutlinesthestandardsunder which we operate. This policy applies to all our employees, temporary workers, consultants, subcontractors, suppliers and agents acting for, or on behalf of, the company.

LABOUR PRACTICES

We expect all those involved in our operations to work in an environment that allows them to return home safely every day. Sir Robert McAlpine embraces and supports theUNGlobalCompact’stenprinciplesandrecognisesthefoundingprinciplesoftheEthicalTradeInitiativeBaseCode.Weencourageallsuppliers,subcontractorsandconsultants throughout our supply chains to undertake checks to ensure that they comply with the principles of these standards.

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EQUAL OPPORTUNITIES/DIVERSITY/INCLUSION

Sir Robert McAlpine recognises that equal opportunities are about good employment and efficient use of our most valuableasset,ourpeople.OurEqualOpportunitiesPolicy outlines our approach to our employees as well as providing guidance for the organisations we work with.

We will not discriminate, either directly or indirectly, on grounds of a protected characteristic, this includes;

• Age• Disability• GenderReassignment•MarriageandCivilPartnership• PregnancyandMaternity• Race• ReligionorBelief• Sex• SexualOrientation.

We operate a discreet grievance procedure which is open to all and aims to deal with grievances fairly and objectively without fear of recrimination.

We require our suppliers, subcontractors and consultants to demonstrate the same level of commitment to promoting equal opportunities in their operations and reserve the right to carry out assessments of our supply chain and their records to ensure the above standards are being met at all times.

City Campus East, Newcastle upon Tyne.

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12 6. Supply chain engagement

Approximately 80% of our annual spend is via our supply chain and we therefore recognise the importance of developing positive relationships with those who share our common principles of delivering best value.

Our supply chain is key to enabling us to fulfil our commitment to continuous improvement. We therefore recognise the need to evaluate not only our own performance but also that of our supply chain. The subsequent sections identify the key performance indicators we use:

EVALUATING PERFORMANCE

Subcontractors and Consultants

The key performance indicators (KPI’s) used to monitor our subcontractors and consultants are summarised below:

A score out of 10 (1= poor 10=exceptional) is given for each category and combined to give an overall subcontractor or consultant score. KPI’s are compiled on a monthly basis for each project with performance monitored at three levels in the KPI system:

•Project Level – This is the first level of monitoring and the project team will advise, during regular progress meetings, subcontractor and consultant performance along with any necessary actions to be taken.

•Regional Level – Regional Managers are able to view subcontractor and consultant performance trends regionally. Trends are discussed with the projects concerned and any further actions with the companies involved. The Regional Managers will also communicate any issues to the Procurement Team.

•National Level –Where performance falls below or exceeds a particular level this will be highlighted and reports distributed to the Procurement Team and CompanyHealthandSafetyandSustainabilityTeamsalike for review and appropriate action.

Suppliers

We assess our suppliers’ performance via a questionnaire which is distributed to project teams at an appropriate/convenient juncture on a project. The questionnaire is intended to assess the performance of a supplier over the duration of their service on the project.

CompletedquestionnairesarereturnedtotheProcurement Team and these details will then be available for review when considering a supplier for future projects.

Feedback

We welcome feedback from our supply chain and undertake six monthly reviews with our key supply chain partners to encourage feedback on our performance. These reviews are formally documented and we aim to respond and act upon any areas of improvement that are identified by our supply chain partners.

We evaluate the performance of our supply chain in a fair and objective manner and encourage our supply chain to provide feedback using the same standards.

SUPPLY CHAIN DIVERSITY

Sir Robert McAlpine recognises that diversity throughout our supply chains is critical to delivering continued improvement, innovation and best value.

We look to work with our supply chain to identify opportunities to increase supplier diversity. This includes providingopportunitiesforSMEs(smallandmediumenterprises),SEs(socialenterprises)andworkingwithcharities and minority groups.

In this way we strive to leave a legacy of economic investment within the communities in which we work.

Measures used to promote supply chain diversity alsoincludeparticipationinprojectled‘meetthebuyer’events to attract local businesses, and tender awareness workshops for the supply chain to ensure potential suppliers understand our requirements.

SUBCONTRACTORS

• Design(ifapplicable)• Programme• Environment•Health,Safetyand

Welfare•Quality• Commercial• Supervision

CONSULTANTS

• ApproachandAttitude• AbilityandResources• Performance• Knowledge

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137. Sustainability

We are committed to developing a resource efficient future and aim to operate a safe and sustainable business that makes a positive contribution to the communities and environments in which we work. We have developed a CompanySustainabilityStrategywhichidentifiesoursustainability objectives. We recognise the importance of our supply chain in the delivery of our Sustainability Strategy and seek to collaborate closely with them to ensure they fully understand our requirements. Only in this way will we be able to respond and deliver the most sustainable products and services.

The sections below identify areas critical to the success of our Sustainability Strategy:

MANAGEMENT SYSTEMS

We expect our suppliers, subcontractors and consultants to manage their impacts via an environmental management system (or equivalent) that is appropriate to the size of their business and their environmental impacts.

Sir Robert McAlpine shall give preference to those suppliers, subcontractors and consultants who can demonstrate their management scheme is certified externally (e.g.ISO14001,EMASandBS8555)byaUKASaccreditedbody. Where this is not the case we will work with our supply chain to support their achievement of external certification.

LEGAL COMPLIANCE

Sir Robert McAlpine requires the supply chain to undertake work in accordance with relevant legislation and that a suitable auditing process is in place to demonstrate compliance. We will look to regularly review our supply chain against their sustainability performance and will requestevidence(eitherthroughEMScomplianceorvia systems to that extent) from our supply chain to demonstrate legal compliance.

MATERIALS

Sir Robert McAlpine aim to use low impact materials, targeting the use of responsibly sourced and healthy materials which have a high recycled content and low embodied carbon.

Responsible Sourcing

The nature of our business dictates that we source materials and services from within a global market. To ensure the materials and services we provide have full traceability throughout our supply chain and account for environmental, social and economic issues we recognise the need to source responsibly.

Responsible Sourcing of Construction Products:

Sir Robert McAlpine shall only accept materials or productstobe‘responsiblysourced’wherecertificationto a nationally or internationally accepted scheme can be demonstrated. There are currently two recognised schemes:

• BRE’sBES6001:2008FrameworkStandardforResponsible Sourcing

• BSEN8902:2009Responsiblesourcingsectorcertification schemes for construction products –Specification

Sir Robert McAlpine shall give preference to those suppliers and subcontractors that can demonstrate responsibly sourced construction products. We recognise that the responsible sourcing schemes are in their infancy and will support the supply chain and suppliers where applicable to seek certification to the above schemes.

It is recognised that there are a wide range of materials and products in the global market and therefore the following key building materials have been identified as the focus of Sir Robert McAlpine’s responsible sourcing requirements initially:

• Timber(seebelow)• Concrete• Plasterboard• BricksandBlocks• Steel• Aggregates

Timber

Whether procuring directly or indirectly, Sir Robert McAlpine will only procure timber or timber based products from demonstrably sustainable and legal sources as defined bytheUKGovernmentCentralPointofExcellenceonTimber(CPET).

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CPETcurrentlyapprovestwocertificationschemes:

• ProgrammefortheEndorsementofForestCertification(PEFC)*

• ForestStewardshipCouncil(FSC)

*TheNorthAmericanschemes:SustainableForestryInitiative(SFI),theCanadianStandardsAssociation(CSA)andtheMalaysianTimberCertificationschemeareallPEFCendorsedandarethereforealsoacceptablewiththeappropriate chain of custody documentation.

Timber procured from any approved scheme must be at least 70% (by volume or weight) from legal and sustainable sources with the balance from a legal source.

We require full chain of custody documentation to be provided for any timber or timber based products and as partofourcommitmenttotheUKCGwerequiredetailsoftimber volumes to be provided.

We require timber and timber products to be handled only by certified suppliers and subcontractors. Where a chain of custody is broken, Sir Robert McAlpine requires an auditable trail to a certified supplier. This must include invoices from each exchange of ownership as well as evidence that only certified products sourced from the certificate holders were supplied.

Where reused, recovered or reclaimed timber is available this shall be considered acceptable if appropriate documentation in compliance with chain of custody requirements can be provided.

Recycled Content

Sir Robert McAlpine has set a 20% recycled content by weight and value target (across the business), and as such we proactively encourage the use of materials with a recycled content. We require our suppliers and subcontractors to provide information on any materials which contain a recycled content component.

Sir Robert McAlpine considers recycled content sources to include pre-consumer and post-consumer waste streams.

Healthy Materials

We recognise that through the conscious selection of healthy materials we can limit the impact on the environment and those people within it.

For Sir Robert McAlpine compliance with the term healthy materials means:

• CompliancewiththeRegistration,Evaluation,AuthorisationandrestrictionofChemicals(REACH)and other relevant Regulations.

• TheuseofcoatingswithlowornoVolatileOrganicCompound(VOC)content

We will ask our supply chain to demonstrate compliance with the above requirements and where practicable seek tousenonharmfulsubstances.Evidencerequestedmayincludecopiesofmaterialsafetydatasheets,COSHHassessments and technical information on products.

ENERGY

Sir Robert McAlpine aims to reduce energy consumption and carbon emissions both during the construction and operational phases of the projects we build and at the premises we occupy.

We expect our suppliers and subcontractors to use energy efficiently and we proactively encourage the use of renewable or low carbon energy supplies where feasible.

Transport

We encourage the use of sustainable and low emission means of transport where possible. In line with Sir Robert McAlpine’s continued commitment to reporting our carbon footprint we expect our supply chain to keep a record of all deliveries from the factory gate to the delivery site (including any transport, intermediate storage and distribution). We will ask for this information on a regular basis as part of our carbon footprint reporting requirements. When necessary, we may ask our supply chain to justify the selection of specific modes of transport to ensure that the most sustainable options are utilised. We expect any transport movements to be planned to ensure the most efficient routes are selected and would proactively encourage sourcing locally to minimise transportation.

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WATER

Sir Robert McAlpine aims to use this natural resource efficiently and looks to reduce the demands we place on water consumption for the projects we build and the premises we occupy.

We expect our supply chain to support this aspiration and work with us to identify opportunities to conserve water, whether this is via a change in methodology that results in less water consumption or the use/reuse of alternative water sources. We require our supply chain to record water usage and will ask for this information on a regular basis. We may also ask for a justification as to the selection of water sources to ensure the most sustainable option is realised.

WASTE

Sir Robert McAlpine’s aim is to achieve waste neutral construction by 2016. We aim to drive sustainable design and ensure the efficient use of resources to eliminate the unnecessary generation of waste. We require our supply chain to support us in this through the following activities:

Contribution to Site Waste Management Plans (SWMPs)

Waste Elimination/Reduction:

All Sir Robert McAlpine projects and premises complete a SWMP. In completing the SWMP our subcontractors are required, before starting on site, to demonstrate:

•Measurestodesignoutwastehavebeenconsideredand implemented

•Measurestoeliminatepackaginghavebeenconsideredand implemented where possible

•Wasteforecastshavebeencompletedwhichidentifyeach individual waste stream, volume of waste predicted and disposal route and provide commentary as to why the disposal route has been chosen.

This information may be requested at tender stage and Sir Robert McAlpine will look favourably on those who can clearly demonstrate compliance as well as the proactive elimination of waste through the design and construction process.

Reuse and take back:

We proactively encourage reuse of materials and the adoption of take back schemes. We would expect take back and reuse schemes to be adopted for packaging materials where possible.

Waste Management:

Where our supply chain is responsible for the movement and treatment of waste, Sir Robert McAlpine requires the following information before any waste is removed from site;

•WasteCarrier’sRegistrationLicence•WasteManagementLicence/Permit/Exemption

relevant for all waste management operations• TestingCertificatesforallskipstobelifted(if

applicable)• Specimenwastetransfernotes(consignmentnotesfor

hazardous waste) to be used• Specimenmonthlywastereports

Where practicable, Sir Robert McAlpine expects waste streams to be segregated at source to assist the movement and treatment of waste. Waste transfer notes and hazardous waste consignment notes must be correctly completed and retained for all waste movements in compliance with waste regulations.

As part of our SWMPs we require our suppliers and subcontractors to provide monthly waste reports, in graphical and data format, identifying the waste streams and tonnages, treatment type and tonnes of waste diverted from landfill/landfilled.

We may undertake waste audits on our suppliers and subcontractors at any time or alternatively ask for copies of waste transfer notes or consignment notes for our records.

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COMMUNITY

Thorough open dialogue and proactive interaction we aim to maximise the benefits we deliver to the communities in which we work, ensuring we leave a lasting legacy.

We expect our suppliers and subcontractors to support our commitment to the communities in which we work and to adopt the same principles to ensure positive outcomes.

Charitable Events

Sir Robert McAlpine has committed to ensuring every project, office or plant yard undertakes at least one local charitable event involving our employees and supply chain on an annual basis. We actively encourage our employees and supply chain to take an active part in these events via a range of measures including (but not limited to) resource provision, fundraising support, plant and equipment provision etc.

Considerate Constructors Scheme (CCS)

Sir Robert McAlpineiscommittedtotheConsiderateConstructorsSchemewithregistrationtotheschemea requirement for all projects. We have set a target to achieve an average company score of 40 out of 50 for the scheme and Sir Robert McAlpine requires our suppliers and subcontractors to contribute as required to ensure this target is achieved.

FormoreinformationontheConsiderateConstructorsScheme please visit the website http://www.ccscheme.org.uk/index.php.

Local Employment

Sir Robert McAlpine recognises the responsibility we have as a business to invest in the local economy and provide opportunities for the local community. We accept this responsibility and work with all project partners to maximise the socio-economic benefits of our activities to ensure we leave a lasting legacy.

This legacy should be above and beyond the management of our construction projects and extend to the local economy, the use of local goods and services and improving the skills of the local labour force.

In order to promote and monitor a project’s local economic impact we:

•Monitorthehomepostcodesofthoseworkingonourprojects*

• Identifyandrecordourlocalspend(directlyandindirectly)

• Encourageoursupplychaintoexploreallpotentialopportunities to employ locally

• Engagewithlocalauthorities,jobagenciesandcharitable agencies to connect to the local workforce, long term unemployed and those needing support into employment

• Engagewithcollegesandschoolstoofferapprentiships, work placements and experience to students in the local area.

*Note:employeeassociationwithhomepostcodesremains anonymous.

We require our suppliers, sub-contractors and consultants to support our commitment to local employment and local spending through their operations. We will ask for evidence to demonstrate performance against such criteria on a regular basis via our sustainability reporting tools.

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Sir Robert McAlpine recognises the importance of procurement in the delivery of best value. Our goal is to meet our clients’ requirements while providing sustainable solutions that offer better value for the lifetime of a project. While this may not initially always appear the cheapest option, the long-term benefits of procuring on a whole life basis can add value to projects by providing other benefits such as lower operating, disposal and end of life costs.

We recognise that our supply chain is fundamental to delivering innovative solutions that meet our clients’ needs. We aim to build upon our strong established ties with our existing supply chain and look to develop new relationships going forward.

As well as ensuring improved efficiency for the business we see this strategy as a tool to help make informed decisions when procuring products and services for the projects we build. We look to use the criterion of best value for money to identify the options that meet project requirements and will seek to procure products and services on this basis.

8. Delivering best value

Business School and Student Hub, Manchester Metropolitan University.

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Achilles building confidence – is a collaborative supply chain accreditation standard designed for the construction industry, providing an effective solution for managing supply chain risk in the areas of safety, sustainability, corporate social responsibility, quality and financial stability.

ACoP – Approved Code of Practice – This is a health andsafetyexecutive(HSE)guidancedocumentthatprovides practical guidance on complying with the duties set out in a specific set of Regulations.

BRE’s BES6001: 2008 Framework Standard for Responsible Sourcing–ThisisaBREGlobalstandardthat provides a framework for the assessment and certification of the responsible sourcing of construction products. To comply with the standard a product must meet a number of mandatory criteria. Where a product demonstrates compliance beyond mandatory levels, higher levels of performance can be achieved. The standard performanceratingsrangefromPasstoGood,VeryGoodandExcellent.

BS EN 8902: 2009 Responsible sourcing sector certification schemes for construction products –Specification–Althoughnotaproductstandard,BSEN8902:2009 is a standard against which other sector standards for responsible sourcing can be assessed. An example of a sector scheme which is BS8902 accredited is theCARESreinforcingsteelscheme.

Cartel – defined as a group of businesses that agree to influencepricesbyregulatingproductionandmarketingofa product.

Chain of Custody (CoC) – Is the path taken by raw materials, processed materials or finished products from the natural environment to the consumer including each stage of transformation, manufacturing, storage and transport where progress to the next stage involves a change of ownership of the materials or product.

Collude – defined as acting together through a secret understanding for the benefit of one or all parties involved.

Considerate Constructors Scheme (CCS) – is the national initiative set up by the construction industry to improveitsimage.Constructionsitesandcompaniesthatregister with the scheme are monitored against a code of considerate practice, designed to encourage best practice beyond statutory requirements.

Ethical Trade Initiative (ETI) – is an alliance of companies, trade unions and voluntary organisations working in partnership to improve the lives of poor and vulnerable workers across the globe that make or grow consumer goods.

Managers–TheUKCG’sHealthandSafetyTrainingStandard defines a Manager as those persons managing constructionrelatedworkactivitiesonUKCGsites.Theyare typically site based or visiting personnel with direct responsibility for planning and managing construction work activities.

Pre-consumer material – Material diverted from the wastestreamduringthemanufacturingprocess.Excludedis reutilisation of materials such as rework, regrind or scrap generated in a process that generated it.

Post-consumer – Material generated by households or by commercial, industrial and institutional facilities in their role as end users of the product, which can no longer be used for its intended purpose. This includes returns of materials from the distribution chain.

Prompt Payment Code – Is a code which commits those who sign up to pay suppliers on time, give clear guidance to suppliers and encourage good practice.

Social Enterprise (SE) – is an organization that applies commercial strategies to maximize improvements in human and environmental well-being, rather than maximizing profits for shareholders.

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Small and Medium Enterprise (SME)–SMEstandsforsmallandmedium-sizedenterprises–asdefinedinEUlaw:EUrecommendation2003/361.ThemainfactorsdeterminingwhetheracompanyisanSMEare:

1. number of employees and2. either turnover or balance sheet total.

Company category

Employees Turnover, or Balance sheet total

Medium-sized < 250 ≤ € 50 m ≤ € 43 m

Small < 50 ≤ € 10 m ≤ € 10 m

Micro < 10 ≤ € 2 m ≤ € 2 m

Supervisors–TheUKCG’sHealthandSafetyTrainingStandard defines a Supervisor as those persons directly supervisingconstructionrelatedworkactivitiesonUKCGsites. They are the front line supervisors with direct responsibility for putting people to work and who will typically brief their workers on how to carry out their work and ensure they are carrying out their work safely.

UKCG–UKContractorsGroupwhichistheprimaryassociation for contractors operating in the UK.

UN Global Compact–TheUNGlobalCompactisastrategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. By doing so, business, as a primary driver of globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere.

Whole life (value) – The benefits and cost associated with a built asset over its whole-life (including planning, design, acquisition, operation, maintenance and disposal) taking account of the interests of all stakeholders affected by its construction and existence and its wider economic, social and environmental impact. There may be trade-offs between various short-term project constraints (such as time,costsandquality)andtheconflictsinstakeholders’longer-term interests and objectives.

Waste neutral construction – To be waste neutral the volume of product from recycled materials must be equal to or greater than that sent off for recycling and disposal.

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Sir Robert McAlpine LtdEaton Court, Maylands AvenueHemel HempsteadHerts. HP2 7TR

Tel: 01442 233444Fax: 01442 230024Email: [email protected]

For more information visitwww.sir-robert-mcalpine.com