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The ProCure21 Guide
Achieving Excellence in NHS Construction

Introduction:
The publication of The ProCure21 Guide represents a milestone in the

evolution of the ProCure21 initiative.
The guide has been developed by the Department of Health together with the
NHS and the ProCure21 Supply Chain Partners as a reference for common
practice to be implemented on ProCure21 schemes.
This guide captures the learning the implementation of one of the largest
Public Sector procurement programmes within the UK. It provides practical
guidance on how schemes should be procured under the ProCure21
programme and demonstrates the blend of management techniques that are
required at key stages. Regular reference to the guide will help ensure that
your ProCure21 scheme is on the right track.
What is the purpose of the ProCure21 Guide?
The Guide is intended for all those involved in the procurement of ProCure21
schemes, namely;
- NHS Clients
- Professional Advisors
- Principal Supply Chain Partners (PSCPs)
- Primary Supply Chain Members (PSCMs)
NHS Clients new to ProCure21 will find the guide of particular use in gaining
an idea of;
- What ProCure21 is and its advantages
- What the differences are to traditional tender procurement
- Key Stages
- What is expected of them
The guide sets out clearly for all

- ProCure21 Principles
- The ProCure21 process in detail
- Activities required at each stage and who’s responsible for them
- Details of tools and techniques used
.
Recognised success & benefits:
At the time of publication, ProCure21 has over 265 schemes registered

amounting to over £2bn. Nearly 150 scheme have been completed worth over
£590m
ProCure21 is recommended by HM Treasury and compliant with OGC

Common Minimum Standards
ProCure21 Guide 2 Version 5.0, January 2007

Using the ProCure21 procurement method and following this guide will help
you achieve these key benefits
- A scheme delivered at least 6 months before it would be

possible under traditional tender
- Certainty of time, cost and quality
- Reduced construction phase time
- Value for Money
- A partnership working environment
- A well designed people focused building.
What role does the Department of Health play?
The Department of Health will provide the following support

- Dedicated Implementation Advisors for ground level support
- Dedicated central team to administrate the programme
- Performance Management of the PSCPs
- Impartial Adivice
- Guidance tools such as SharePoint
- Central VAT recovery service
Range of services under ProCure21:
ProCure21 is not just a construction solution, A key benefit of ProCure21 is

the diverse range of management and construction services it can offer.
The Principal Supply Chain Partners (PSCPs) act as ‘solution providers’ and
their services may vary from service strategies, estate strategies and
business planning through to design development, development of the brief
and construction works (both major & minor).
A key and initial consideration is therefore how extensively the range of

services are utilised and the added value they can bring!

Notes on using the ProCure21 Guide
The ProCure21 guide follows the timeline of a scheme. You can either start at
the beginning or pick out areas of interest as you go along. However the
guide is not meant to be used in isolation. Please ensure that you include
your ProCure21 Implementation Advisor when developing your scheme.
If you have a scheme registered you can get access to more detailed
information on our ProCure21 Club SharePoint System. There are links
provided at the appropriate points.
To get access to the ProCure21 Club you must work directly on a ProCure21
scheme. Access is given to;
• NHS Trust Estates and Facilities staff,

• Trust Cost Advisors
• PSCPs and PSCMs only.
To register for the club click on the link below
ProCure21 Club registration

Structure of the guide:
The structure of the ProCure21 Guide reflects the life cycle of a Procure21
scheme – the sequential stages that an NHS Client will need to undertake
when adopting the ProCure21 process:
6.0 Evaluation
Figure 1: The ProCure21 life cycle:
5.0 Delivery
4.0 Scheme
development
3.0 Scheme Launch
2.0 Team selection
1.0 Defining how

P21 is applied
Each of these sections is then further subdivided into the contents of the
guide:
Figure 2: Contents of the ProCure21 Guide:
1.0 Defining how

2.0 Team selection 3.0 Scheme Launch
P21 is applied
1.1 Range of services 2.1 Establishing the P21 team 3.1 Launch workshop
1.2 Benefits of P21 2.2 How to select a PSCP 3.2 Establishing the scheme team
1.3 Application of P21 2.3 Roles & responsibilities 3.3 Developing a joint action plan
1.4 Critical success factors
4.0 Scheme
5.0 Delivery 6.0 Evaluation
development
4.1 Scheme development 5.1 Managing the delivery phase 6.1 Post Project Evaluation
4.2 Management techniques 5.2 Use of the Contract 6.2 Sharing lessons learned
4.3 Use of the Contract 5.3 Management techniques
4.4 Agreeing the GMP

Contents:
Description Page
1.0 Defining how P21 is applied 7
1.1 Range of services under ProCure21 8
1.2 Benefits of ProCure21 10
1.3 Application of ProCure21 12
1.4 Critical success factors 15
Checklist 16
2.0 Team selection 17
2.1 How to establish the ProCure21 team 18
2.2 How to select a PSCP 24
2.3 Roles & responsibilities of the NHS Client Team 26
Checklist 30
3.0 Scheme Launch 31
3.1 Launch workshop 33
3.2 Establishing the scheme team 34
3.3 Developing a joint action plan 38
Checklist 39
4.0 Scheme Development 40
4.1 Scheme development 41
4.2 Application of management techniques under P21 45
4.3 Use of the Contract (NEC2, Option C) 50
4.4 Agreeing the GMP 53
Checklist 57
5.0 Delivery 58
5.1 Managing the delivery phase 59
5.2 Use of the Contract (NEC2, Option C) 60
5.3 Ongoing application of management techniques 64
Checklist 65
6.0 Evaluation 66
6.1 Post Scheme Evaluation 67
6.2 Sharing lessons learned 70
Checklist 71
Appendices
Appendix 1: Glossary of terms 72

Section 1
Defining how ProCure21 is applied
1.1 Range of Services
1.2 Benefits of ProCure21
1.3 Application of ProCure21
Checklist
Introduction
Getting an intimate knowledge of what ProCure21 is, and what it can do for
you is the best place to start.
This section will help you understand the breadth of the programme, and the
different ways you can engage with it.

1.1 Range of services
What is ProCure21?
ProCure21 is a proven procurement process that may be adopted by NHS

Clients to deliver a wide variety of construction related services.
ProCure21 provides NHS Clients with the ability to readily appoint accredited
Principal Supply Chain Partners (PSCPs) alongside a pre-agreed commercial
arrangement. This enables the team to immediately focus on the needs of the
NHS Client.
The PSCPs are very different to traditional contracting organisations as their

supply chains contain a wealth of expertise from construction professionals
through to specialist members of the supply chain. This provides NHS Clients
with the unique opportunity of engaging the PSCP to undertake a wide variety
of duties from service strategies, estates strategies, business planning,
developing the brief and design development through to major and minor
construction works.
ProCure21 is based upon a long term framework agreement (5 years with

provisions for extension) between the Department of Health and a number of
framework partners and is operational only in England. NHS clients may
select any one of the PSCPs based on their proven performance and track
record.
Why was ProCure21 developed?
ProCure21 was developed in direct response to a number of challenges

facing the UK construction industry:
Figure 3: Key drivers behind ProCure21
Drivers for change: Common theme Response: ProCure21
• Greater end user/ stakeholder 9 Involvement of end users/

Egan principles involvement stakeholders throughout
• ‘Controlled’ procurement through 9 Use of a Gateway process from
the use of a Gateway process the outset
• Consistent involvement of the 9 Accredited supply chains used
supply chain consistently
NHS Plan • The concept of an ‘integrated 9 Integrated teams – ability to use
(> spend) team’ – potentially employed on on repeat projects based upon
multiple projects proven delivery
• Use of ‘modern’ forms of contract 9 NEC2 adopted
• Appropriate use of incentives & 9 Joint risk management, open-book
risk management & gain share potential
• Greater predictability in terms of 9 Joint Target Setting and
Best Client
time and cost programming
• Consideration of Whole Life Costs 9 Established KPI’s & focus on
delivering continuous
• Continuous improvement against
improvement
established KPI’s
Achieving Excellence
in Construction targets
NB: Recently summarised in the Common
Minimum Standards (CMS) issued by the
Office of Government (OGC)

Range of services provided by PSCPs:
ProCure21 can respond to challenges within the NHS e.g. changes in clinical
need/ practice.
ProCure21 offers a great deal of flexibility in terms of the level of service

provided depending on when the PSCP becomes involved.
Their input can vary from assisting the NHS Client with its’ overall strategy to
that of developing a detailed design.
Based on the schemes objectives, constraints and level of

complexity a key consideration will be how early to engage with the PSCP.
The table below outlines the range of potential services available under
ProCure21.
Table 1: Added value of P21 at various stages of scheme development:

Stage Added value
Pre-SOC (Strategic Outline Case) Strategic advice

Planning
Service/ Estate strategies
Business planning
SOC (Strategic Outline Case) Assistance with strategy
Option evaluation
Affordability reviews
OBC (Outline Business Case) Development of the functional brief
Affordability reviews
Programming
FBC (Full Business Case) Detailed design development
Cost verification
Programming
VAT savings (as a result of a Customs &
Excise agreement) can be reinvested in
the scheme
Section 4.0 of this ProCure21 Guide explains the ‘Scheme Development’

stage. The extent of this ‘Scheme Development’ will vary dependant upon a
sliding scale of involvement that the NHS Client wishes the PSCP to have
(based on added value).
The ProCure21 process (point at which the PSCP is engaged) may begin at
Pre-SOC stage, SOC, OBC or FBC.
Role of the Implementation Advisor:
The ProCure21 Implementation Advisor provides a free source of guidance to

the NHS Client throughout the process. As a member of the ProCure21 team
they will assist the NHS Client in establishing the most appropriate application
of P21.

1.2 Benefits of ProCure21
ProCure21 embraces the principles of collaborative working ensuring that

teams work together effectively. It also encourages the early involvement of
the PSCP and supply chain to ensure that the design, cost and programme
are all achievable and represent best value for the NHS Client.
As the framework partners are already appointed to the framework OJEU

(European procurement) procedures do not need to be repeated. This saves
NHS Clients both time and money.
“ProCure21 is delivering significant time savings for those schemes that would
otherwise have to be procured via the Official Journal of the European
Communities. Time savings of around nine months, equating to a saving of 3
per cent on scheme costs can be identified for the relatively small number of
schemes completed to date.”
National Audit Office, Improving Public Services Through Better Construction, March 2005
NHS clients that have supported ProCure21 have enabled the programme to
win a number of accolades since the commencement of the national
framework in October 2003:
• Winner of the Most Admired Public Sector Client (Construction Clients

Convention, 2005).
• Runner up at the Construction Client of the Year (Building Magazine
Awards, 2005).
• Runner up at the Constructing Excellence Best Practice Awards
(2005).
“Due to a range of factors, including early involvement of integrated supply

chains and the benefits this brings such as improved design and construction
process solutions, savings in construction costs of 1 - 4 per cent are being
delivered. For example, the conventional construction period for schemes over
£11 million has been reduced from 32 to 19 months. This can be worth a
saving of up to over 3.5 per cent on construction costs, and means that
schemes are delivered sooner.”
National Audit Office, Improving Public Services Through Better Construction, March 2005
The key findings published in their report “Improving Public Services Through
Better Construction” (published in March 2005 –
www.nao.org.uk/publications/nao_reports showed appreciable time, cost and

other advantages in using ProCure21.
These have been confirmed by the outturns in subsequently completed

schemes.

The benefits of ProCure21 may be summarised as follows:
Figure 4: Key benefits of ProCure21:
¾ A short PSCP selection ¾ Joint programming with the

process – avoiding PSCP. ¾ Time & cost
significant time and cost.
saving.
FAST TRACK TIME NO OJEU

START CERTAINTY REQUIRED
¾ Agreed GMP.
¾ Pre-agreed VAT recovery
rules with HM Revenue &
Customs
COST SAVINGS
CERTAINTY SHARED
¾ A transparent cost
arrangement
¾ Potential to generate and
share cost savings.
¾ Free VAT recovery advice
DISTILLS
THE BEST
OPTIMUM
OF EARLIER BEST
ENVIRONMENT
DESIGNS VFM
¾ Controlled PSCP overhead ¾ A process that addresses

& profit levels. ¾ The application of Best Practice design quality issues
¾ Joint risk management. techniques throughout the (aesthetics, Whole Life Cost
¾ Problem solving. process. and the needs of end
¾ Incentives. ¾ A process that brings learning users).
¾ Collaborative working. from other similar schemes. ¾ A product that is entirely
¾ A ProCure21 Club that tailored to the needs of the
disseminates best practice. NHS client – developed
through detailed
consultation.

1.3 Application of ProCure21
The application of ProCure21 will vary from scheme to scheme. An

advantage of ProCure21 is the inherent flexibility within the process.
NHS Clients can choose to engage the services of the PSCP (and thus begin
the P21 process) at any of the following stages:
• Pre-SOC,
• SOC,
• OBC, or;
• FBC.
Figure 5 illustrates the potential ‘entry points’ of the PSCP dependant upon
the needs and required services of the NHS Client.
Figure 5: Potential application of ProCure21

6.0 Evaluation
5.0 Delivery
4.0 Scheme
development
C
FB
C
OB /
ts
C in
SO po
c t ry
3.0 Scheme Launch
e - so en
Pr P
PSC e21
l r
2.0 Team selection t ia
o Cu
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te f Pr
Po o
1.0 Defining how se
P21 is applied U
It important to determine how ProCure21 will be applied at this stage in the

process as this will determine the selection criteria of the team (Section 2.0).
It is strongly recommended that a ProCure21 Implementation Advisor is

consulted at this stage to ensure that the optimum strategy is determined.

When to select a PSCP:
The appropriate time to engage a PSCP will depend on the dynamics of the
scheme. The following illustration emphasises the benefits realised by a
number of NHS Clients through early PSCP appointment.
Figure 6: Increased benefit of early PSCP appointment
Potential to reduce cost
£
Reducing opportunity to add value
Commitment to construction cost
SOC OBC FBC Delivery
Time
As fundamental decisions about the build are taken (e.g. site, footprint of the
building, room adjacencies, components etc) the commitment to construction
cost rises. To go back and change an earlier decision becomes more costly.
Conversely, the ‘potential to reduce cost’ diminishes. Obtaining absolute

clarity of the brief (and avoiding over-designed elements of the building),
employing best practice from other schemes, adopting the latest construction
techniques and products (e.g. off site fabrication/ modularisation) all become
more difficult to implement if the PSCP is brought in too late into the process.
As the NHS Client ‘manages’ the extent of use of the PSCP during the SOC,
OBC and FBC phases then many NHS Clients find that controlled and timely
input from the PSCP at early stages adds most value. NHS Clients need to
manage the input from PSCPs to ensure that only services that add value are
provided.

The timing of the PSCP appointment will have a fundamental influence on the
benefits derived from ProCure21. P21 Implementation Advisors can provide
advice on the most appropriate stage to appoint the PSCP for a given
scheme.
The format of the following blank matrix may be of use to NHS Clients to help
stimulate thoughts and ideas about the most appropriate time for selection:
Table 2: Matrix of factors for establishing the most appropriate stage to

select the PSCP
Potential added value
Potential Time factors Quality Factors Cost Factors Other

engagement
of the PSCP:
Pre-SOC
SOC
OBC
FBC
For example, if there are no ‘potential added value’ items noted at SOC stage,
it may suggest that the most appropriate stage to appoint the PSCP is at
OBC.

Having established the most appropriate point to select the PSCP (and
engage the ProCure21 process) it is also important to appreciate the critical
success factors behind ProCure21.
The ‘critical success factors’ of ProCure21 form the chapters of this guide.
It is important that each stage is comprehensively addressed in order that the
full potential of ProCure21 is attained:
Figure 7: Critical success factors of ProCure21
Section: ‘Critical success factors’:
• Selecting suitable & experienced professional advisors

• Selecting a suitable PSCP
2.0 Team selection
• Ensuring that roles & responsibilities are clear
• Ensuring that the ethos & skills are appropriate
• Launching the P21 scheme (formal workshop)

• Ensuring that user/ clinical input is obtained
3.0 Scheme Launch • Establishing a scheme team (structure & working protocols)
• Developing a joint action plan up to signing of the Contract
• Clear actions & parameters for the team to work within

4.0 Scheme • Appropriate & timely use of the P21 management techniques
development • Appropriate use of the Contract (NEC2, Option C)
• Equitable allocation of risk & agreement of the GMP
• Clear roles & responsibilities

5.0 Delivery • Ongoing (appropriate use) of the Contract (NEC2, Option C)
• Ongoing & appropriate application of management techniques
• Reviewing progress at regular intervals

• Capturing lessons learned & implementing change
6.0 Evaluation
• Sharing lessons learned for future schemes

1.0 Defining how P21 is applied - checklist
Section checklist:
This section should have resulted in the following outcomes/ actions:
1. Dialogue/ consultation with the ProCure21 Implementation

Advisor
2. A clear understanding of how P21 will be applied

Section 2
Team Selection
2.1 Establishing the team
2.2 How to select a PSCP
2.3 Roles and responsibilities
Checklist
Introduction
Getting the right team around you is one of the most important parts of a
ProCure21 scheme. The degree to which you able to work together will
determine your success.
This chapter identifies the key roles on the project team and their
responsibilities. It also gives detailed guidance on the PSCP selection
process.

2.1 How to establish the P21 team
Team ethos under ProCure21:
ProCure21 embraces the principles of collaborative working. This requires a

team approach from the outset and timely inclusion of all key stakeholders.
The illustration below reinforces the need to involve all key parties at
appropriate stages (not necessarily for them all to be in attendance at every
meeting).
Figure 8: Team approach to ProCure21
Project Director
Principal Supply NHS Client

Chain Partner
Professional Advisor
Primary Supply ProCure21

Chain Member
Project Team
Clinician
Supply Chain
Member Implementation
Advisor
Stakeholder

There are a number of client roles that play a vital ingredient in the successful
implementation of ProCure21 schemes:
• Project Directors
• Project Managers
• Cost Advisors
• Implementation Advisors (part of the P21 team)
• Supervisors
• ProCure21 team
ProCure21 creates the right environment and commercial backdrop for

successful collaborative working. However, without the timely input of these
key individuals schemes will not reach their full potential. These individuals
need the appropriate skills, experience and attitudes. They make the
difference between a highly successful ProCure21 scheme and one that
achieves partial success.
ProCure21 does not run itself – it requires commitment, leadership and good
team working.
The essential attributes of these individual roles may be summarised as

follows:
Figure 9: Key attributes of each role
Personal effectiveness
Knowledge of ProCure21
Key attributes Right ‘collaborative’ attitude

Ability & commitment
to teamwork
Clarity of purpose/ role

Relevant collaborative working &
healthcare experience

Their typical input is described along a timeline:
Figure 10: Typical involvement of the client team (including support):
Strategic Outline Outline Business Full Business

Delivery Operation
Client team Case (SOC) Case (OBC) Case (FBC)
Project Directors
Project Managers
Increasing Cost Advisors

level of
input
Implementation
Advisors
Supervisors
ProCure21 team
The above illustration highlights the level of typical involvement of the client
team (including support) on ProCure21 schemes. This merely provides
indicative levels of management effort rather than a precise number of hours.
Project Director
The leads the whole process from the outset of the scheme. They provide the
strategic direction, leadership and ensure that the business case reflects the
views of all stakeholders. They should initiate contact with P21
Implementation Advisors and build a team around them with adequate skills
and experience to match the scheme. The Project Director should hand over
the delivery function to the Project Manager (although this could be the same
person on smaller schemes).
Project Manager
The Project Manager takes over the delivery function from the Project
Director. This is ideally just before the FBC is completed so that they gain an
appreciation of the schemes strategic intent and can begin to integrate with
the team. The Project Manager is a named individual within the Engineering
and Construction Contract (ECC) used under ProCure21 and assumes a
number of defined duties. The Project Manager should report to the Project

Director and manage the scheme within the business case parameters of
time, quality and cost. The Project Manager should act as a single point of
contact for all stakeholders within the scheme. This is illustrated below:
Figure 11: Comparison between no Project Management and effective

Project Management
No Project Management: Effective Project Management:
Supply side
Supply side
Client side
Client side
Project
Manager
The Project Manager should facilitate all communication, changes in the

scope of work and manage all issues relevant to the scheme. They are the
single point of contact for both the ‘client side’ and the ‘supply side’ (i.e. the
supply chain).
On some schemes (typically those that are lower in value) the Project Director
and Project Manager roles may be undertaken by the same individual. On the
larger, higher value schemes the roles may be separated.
Both the Project Director and Project Manager will need to ‘add value’ to the
ProCure21 process by applying a variety of management techniques (e.g.
Value Management, Risk Management and the principles of collaborative
working).
Many of these techniques are new to healthcare and will therefore require
additional training or external support at key stages.
Cost Advisors
Cost Advisors provide support to the Project Director and Project Manager
throughout the life of the scheme. The PSCP’s also employ Cost Advisors for
commercial assistance. At the SOC, OBC and FBC stages the Cost Advisor
will be assisting in the compilation of the business case. They also play a key
role at FBC stage when the GMP is formulated and agreed. This requires an
in depth understanding of the ProCure21 target setting process and of the
PSCP’s costings. During construction they will be undertaking open book
audits, advising on payments and controlling expenditure. It is important that
appointed Cost Advisors display the attributes referred to in figure 9. A
collaborative approach and detailed understanding of ProCure21 are both

vital attributes of a successful Cost Advisor who will need to work closely with
the PSCP.
Implementation Advisors
The P21 Implementation Advisors typically provide the next level of input to
the scheme. The Implementation Advisor role is to implement the principles
of ProCure21 – they provide a free service as part of the ProCure21 team. It
is important that they are engaged at the outset of the scheme and remain as
a source of guidance and support throughout. They will help to ensure that
the required ProCure21 principles and procedures are adhered to and that the
scheme is implemented successfully. Providing the scheme is running
smoothly their input will be minimal during construction but they will be
interested in capturing any lessons learned at the end of the scheme (when
the Review Workshop is undertaken).
Implementation Advisors have an in depth knowledge of ProCure21 and are

experienced NHS professionals. The Implementation Advisors have defined
geographical areas to manage but support one another nationally and share
information to ensure that lessons learned on individual schemes are
disseminated as appropriate.
Supervisors
Supervisors are also named individuals within the Contract (NEC2, Option C).
Under ProCure21, their role requires greater involvement at the design
development phase as opposed to checking on site.
Supervisors are most effectively employed as the detail of the design

progresses – to ensure that the products specified are appropriate and offer
the NHS Client best value. They also often have in depth knowledge of the
site and, for these reasons, are involved much earlier in the process. The
traditional ‘checking’ role on site is enhanced ensuring that the end product
meets NHS Client quality objectives.
ProCure21 team
The ProCure21 Team is represented by the Implementation Advisors (part of

the ProCure21 team) and so themselves will most probably not get directly
involved. Their role is to manage the strategic direction of the Framework e.g.
ensure appropriate support is provided to the NHS Clients, coordinate training
requirements, collate and review performance data, ensure best practice is
shared and provide training. If any legal issues arise the ProCure21 team will
provide support and advice to ensure correct interpretation of the framework
agreement.
Recruitment:
It is inevitable that some NHS Clients will not have sufficient in-house
resource to manage ProCure21 schemes or perhaps are lacking experience

in certain areas. Large schemes will require a full time appointment to ensure
that they are effectively managed.
Three broad options are available and require careful consideration:
1. Provide training for internal staff,

2. Recruit new full-time members of staff with relevant experience, or;
3. Outsource to an external organisation.
A number of factors will determine the decision, examples include:

• Required speed of appointment (time),
• Level of skill/ knowledge required (quality), and;
• Financial resource (cost).
Figure 12 may serve as a helpful summary to determine the best approach.

Implementation Advisors are able to provide assistance at this critical stage in
the ProCure21 process.
Figure 12: Consideration of recruitment options
Option Factors -ve factors + ve factors Comment
1. Train in- Time +ve Relatively quick

house staff
Quality -ve Are skills complementary?

+ve In depth knowledge of Trust
+ve Staff investment
Cost +ve Low cost
2. Recruit new Time -ve Time consuming process

staff
Quality +ve Control of quality

-ve Lacking Trust knowledge
Cost -ve High cost

-ve Long term commitment
3. Outsource Time +ve Very quick
Quality +ve Ability to select on

appropriate criteria
-ve Lacking Trust knowledge
Cost -ve Premium market rate

2.2 How to select a PSCP
Guidance already exists on how to select a PSCP from the ProCure21
framework - the process is straightforward and, on average, takes 3 weeks.
The guide provides step by step advice at each stage and pro-forma letters to
correspond with the PSCP’s.
In summary, the selection process is broken down into 9 steps:
Figure 13: PSCP selection process
Step 1 NHS client registers the scheme on the P21 website

& contacts the Implementation Advisor
Step 2 NHS client compiles a scheme information pack

& shortlist selection criteria*
Step 3 NHS client emails information pack, shortlist

selection criteria & timetable to PSCP’s
Step 4 PSCP’s submit Expression of Interest (EOI) &

a response to the shortlist selection criteria
Average
Step 5 NHS client selects a shortlist of PSCP’s timescale
& invites them to an Open Day
– 3 weeks
Step 6 Open Day held at NHS client
Step 7 PSCP’s invited to attend an interview
Step 8 NHS client holds interviews
Step 9 PSCP selected by interview

selection committee

* Standard selection criteria may be used by the NHS Client to help derive a
shortlist. The criteria typically include issues such as:
- Experience of this type of scheme,

- The proposed supply chain,
- Capacity level, and;
- Proposed team.
These criteria may be altered by the NHS Client and weighted accordingly.
Feedback may be required for unsuccessful applicants to ensure continuous

improvement.
Further guidance maybe found using the link below
Selecting Your PSCP - Detailed Guidance

2.3 Roles & responsibilities
NHS Client Team

In order to achieve the full potential of ProCure21 it is vital that all members of
the NHS Client team play an active part in the process at key stages.
They also need to be aware how ProCure21 may affect them, the input they
will need to provide and key areas of responsibility.
This section describes the roles & responsibilities of:
• Senior personnel within the NHS Client

• Clinicians & end users
• Estates Staff
• Professional Advisors
Chief Executives, Finance Directors

What impact does it have on senior personnel within the NHS client?
- The need to ensure that realistic aspirations, budgets and timescales are
set.
- The need to ensure that the right resource and expertise exists and is
available to represent the NHS client.
- The need to ensure that they are engaged in all key decisions.
- The need to engage the P21 VAT recovery process prior to construction.
What do senior NHS personnel need to provide/ ensure happens?
- Consider training to ensure that all key staff have the appropriate
levels of awareness and skills – further guidance can be provided by
the ProCure21 Implementation Advisor.
- Ensure that the Estates department has adequate resource and skills
in place – ideally with an accredited Project Director.
- Ensure that clinical staff and stakeholders are engaged at an early

stage in the process – without this the design will be unable to
incorporate their requirements.

Clinicians and end users
What impact does it have on clinicians/ end users?
- Assistance with clinical & service strategies.
- Allocation of time to the design development process.
- Attendance at workshops and meetings to ensure that the facility is fit for
purpose.
What do clinicians/ end users need to provide/ ensure happens?
- Ensure that all appropriate clinical staff, end users, stakeholders and
patient user groups are involved during the design development phase.
- Provide ongoing input during construction and at hand over of the

scheme to ensure that the process is not disruptive and meets
expectation.
- If the scheme is complex (in terms of serving a number of stakeholders

and/ or clinicians) then it may be useful to identify a lead clinician to act
as a focal point for decision making.
Facilities and Project Directors

What impact does it have on Estates?
- ProCure21 is a completely different way of working. Even those

experienced in partnering have much to learn about the specific
mechanisms of the programme. It requires close working with the PSCP
and supply chain.
- New skills and techniques need to be applied under ProCure21. This

requires additional training – further details are provided in Appendix 1.
- The Professional Advisors, PSCP and supply chain all need to be

managed to ensure that only value adding activities are undertaken.

What do Estates need to provide and ensure happens?
- Engage the ProCure21 Implementation Advisor from the outset – a free

service that guides NHS clients through ProCure21.
- Consider internal training/ joint training with the PSCP and supply chain to
ensure that all key staff have the appropriate levels of awareness and skills –
further guidance can be provided by the ProCure21 Implementation
Advisors.
- Ensure that senior personnel are aware of the impact e.g. cash flow on the
Finance Directorate and more proactive involvement of user groups.
- Ensure appropriate Professional Advisors are appointed that can

demonstrate experience, understanding and the willingness to work in this
type of collaborative environment.
- A number of key appointments will need to be made – Project Director,

Project Manager, Supervisor and Cost Advisor.
- Ensure that all personnel are clear about their roles and responsibilities –
further guidance is contained in section 2.3.
For detailed guidance on the roles and responsibilities of the Project Manager
and Cost Advisor. Follow the link below
Roles and Responsibilities of a Project Manager / Cost Advisor
Accredited Project Directors
The role of the Project Director is recognised as being vital to the success of
ProCure21. Effective Project Directors will not only need to lead the process
and ensure that the scheme complements NHS Client strategy they will also
need to add value to the design process.
New skills and techniques are required in order to maximise the success of
ProCure21. A number of courses have been specifically designed to ensure
that Project Directors are equipped with the appropriate skills.

Professional Advisors
What impact does it have on Professional Advisors?
- ProCure21 is a completely different way of working. Even those

experienced in partnering have much to learn about the specific
mechanisms of the initiative.
- New skills and techniques need to be applied under ProCure21. This

requires additional training – further details are provided in Appendix 1.
What do professional advisors need to provide/ ensure happens?
- Consider training to ensure that all key staff have the appropriate levels
of awareness and skills e.g. Cost Advisor knowledge of the Target
Setting process – further guidance can be provided by the ProCure21
Implementation Advisors.
- ProCure21 requires a collaborative culture and for all Professional

Advisors to adhere to these principals.

2.0 Team selection - checklist
Section checklist:
1. Further consultation with the Implementation Advisor

(if required)
2. A debrief to Senior NHS staff, clinicians/ end users
3. The appointment of a Project Director
4. The appointment of a Project Manager
5. The appointment of a Cost Advisor
6. The appointment of a Supervisor
7. The appointment of the PSCP
8. Completed P21 training (if appropriate)

Section 3
Scheme Launch
3.1 Launch workshop
3.2 Establishing the scheme team
3.3 Developing a joint action plan

3.0 Scheme Launch
This section initially explains the purpose and outcomes of the Launch
workshop. This is a one day event which brings together all key parties and
stakeholders within the scheme.
The Launch workshop serves as a formal start to the scheme and, very
importantly, the relationship between all those involved in its development and
delivery.
Launch workshop - Child & Mental Health Scheme (CAMHS), St. Nicholas
Hospital, January 2005 – Photograph of team developing the scheme Charter.
The scheme won a Constructing Excellence Award for innovation

3.1 Launch workshop
The Launch Workshop is a formal launch to the scheme. All parties involved
in the scheme are involved in a one day workshop. The workshop allows the
team to build relationships and develop mutual objectives for the scheme.
Typical attendees include

Estates staff, clinicians, patient
user groups, Executive Board
Members, the PSCP, second
tier supply chain members,
specialist subcontractors/
suppliers and construction
professionals (Architects/ Cost
Advisors etc).
Launch workshop - Pathology scheme, Tameside &

Glossop NHS Trust, February 2006 – Photograph of
clinical staff defining scheme objectives.
Outcomes of the workshop, recorded in a workshop report; typically include
Team structure (explained in section 3.2),

Defined scheme objectives,
Charter,
Communication strategy,
Meeting structure & dates
Relevant actions plans
A clear understanding of the clinical need/ drivers.
The workshop can be organised with the help of the ProCure21

Implementation Advisor who is able to suggest/ arrange a facilitator for the
event.
The Launch workshop serves

as an important event in the
life cycle of the ProCure21
scheme – it promotes
development of working
relationships/ protocols and,
very importantly, helps to
ensure that close and effective
working relationships are
forged.
Typical scheme Charter.

3.2 Scheme team
An ‘integrated team structure’ has been adopted on a number of successful

ProCure21 schemes.
The integrated team approach allows traditional barriers between

organisations to be broken down and enables teams to work more effectively.
Careful consideration should be given to the composition of the team. In
some cases the co-location of the client and PSCP teams has been achieved.
The following generic (Principals and Core Group) structure is typically

adopted and tailored to meet the unique requirements of each ProCure21
scheme:
Figure 14: ‘Integrated Team Structure’
Project Board
Principals Group
(strategic focus)
Core Group
(delivery focus) Task team
Task team
Task team Task team

Task team

Principals Group
The Principals Group typically consists of:
- The Project Director,

- A senior director from the PSCP (e.g. Framework Director), and;
- A senior clinician/ end user.
Core Group
The Core Group typically consists of:
- The Project Manager (representing the NHS Client),

- The Site Agent (representing the supply chain), and;
- A clinician/ end user (directly affected by the works).
The Principals Group, focussed on strategic issues, will receive regular

updates from the Core Group (typically monthly) and make overall decisions
about how best to manage the relationship.
The Core Group are focussed on delivery and the day-to-day management of
the contract. They will be constantly reviewing the programme, cost
projections and ensuring that their decisions are well founded. They are
supported by a number of Task Teams who perform functional duties e.g.
design development, end users, commercial management, commissioning
and infection control.
Task Teams
The Task Teams provide technical support and opinion to the Core Group and
typically provide update reports on a monthly basis. The Core Group, in turn,
reports overall progress to the Principals Group. The reporting from Core
Group to Principals Group will typically focus on strategic issues (the main
focus of the Principals Group) and raise any key risks to overall delivery e.g.
lack of funds or time.
The names of the groups may vary or be altered but the mechanism remains
the same (e.g. the Core Group is sometimes referred to as a Delivery Team).
This integrated team structure ensures that all key parties (namely Estates,
the PSCP and clinical/ end user representatives) work effectively, are
empowered to make decisions and work under a defined structure.
Scheme Board
The dotted line to the Scheme Board (or NHS Client Board) shows how some
NHS Clients have developed this further and may still require a further tier
consisting solely of NHS Client representatives. The Scheme Board may be
responsible for a number of capital schemes but recognise the need for an
integrated team structure for ProCure21 below its own level.

Integrated Team
Key features of the integrated team model include:
- A joint team structure

- Joint and effective decision making
- A defined communication plan e.g. rolling plan of meetings (with standard
agendas)
- Ability to make decisions at all levels
- Clear roles and responsibilities
This integrated team approach also helps support the use of the Contract
(NEC2, Option C) – dealing with Early Warnings and agreeing the impact of
Compensation Events in a timely manner (explained further in section 4.3).
On the larger/ more complex ProCure21 schemes it has also proved

beneficial to appoint a Clinical lead to represent a number of clinicians/ end
users. This helps serve as a single point of contact and ensures that
decisions are channelled through a key individual as opposed to piecemeal
consultation. The clinical lead will be responsible for ensuring that adequate
consultation does occur.
The team structure is typically completed at the Launch workshop which

allows all members of the team to comment and agree on its structure.
Further details of the Launch workshop are contained within section 3.1. On a
number of ProCure21 schemes the PSCP has been awarded more than one
contract, which effectively means that more than one Core Group is in
existence. On such schemes the Principals Group would remain focussed on
the achievement of strategic objectives and manage a number of Core
Groups. This is illustrated overleaf.
Launch workshop – Critical Care Unit – Sheffield Teaching Hospitals NHS

Foundation Trust, June 2005

Figure 15: Multiple scheme structure:
Project Board
Principals Group
(strategic focus)
Core Group 1 Core Group 2 Core Group 3

(delivery focus) (delivery focus) (delivery focus)
The Task Teams may still be aligned to a single Core Group or may, to
maximise resource, provide technical support across a number of Core
Groups.
The focus of the Principals Group then shifts from one of managing a single
Core Group to that of a multiple Core Groups. Issues such as the sharing of
best practice and consistency of service tend to feature more heavily on the
multiple ProCure21 schemes.

3.3 Developing a joint action plan
As an outcome of the Launch workshop (or as a development shortly

afterwards) the integrated ProCure21 team typically forms a ‘joint action plan’.
The purpose of this ‘joint action plan’ is to take the team from the
current position to the point where the Contract (NEC2, Option C) can be
signed. This should be as soon as practically possible.
Once in place, the ‘joint action plan’ can be monitored. Progress is typically
reported by the Core Group to the Principals Group. If there are risks or
slippages in the ‘joint action plan’ then remedial actions will be required.
It is important that the team deliver this short term action plan and move into
the ‘scheme development’ phase as soon as practically possible.

3.0 Scheme Launch - checklist
Section checklist:

(if required)
2. Successful completion of the P21 Launch Workshop
3. An established ‘scheme team’
4. The development of a ‘joint action plan’ leading up to an agreed

contract signing date

Section 4
Scheme Development
4.1 Scheme development
4.2 Management Techniques
4.3 Use of the contract
4.4 Agreeing the Guaranteed Maximum Price
Introduction
‘Scheme development’ when using the ProCure21 process should be

contained within a relatively short timescale compared to traditional tendering.
The time saving will be affected by the entry point of the PSCP (i.e. how early
P21 is engaged in the schemes life cycle).
Irrespective of ‘entry’ point ‘scheme development’ is a critical stage in any

project. The P21 process provides for the agreement and recording of
detailed action plans. These are incorporated into the Contract (NEC2,
Option C) by means of detailed requirements in the Works Information and
establishing a realistic programme for execution – the Accepted Programme.
These form the cornerstone of project management for each phase.
The style of ProCure21 and the ‘scheme contract’ promotes the use of
contemporary management techniques. These are also applied to formulate
the Guaranteed Maximum Price (GMP). The GMP needs to be validated to
ensure that costs are in line with expected norms (Departmental Cost
Allowance Guides - DCAGS) and represent value for money.

A key benefit of ProCure21 it its flexibility – an NHS Client may

engage the process at any stage within the business planning gateways.
The extent of ‘scheme development’ with the PSCP will therefore depend on
when the NHS client has selected the PSCP. This could range from Pre-SOC
or as late as FBC. The timing of PSCP selection should be determined at the
outset of the process (as explained in section 1.3 of the ProCure21 Guide).
Figure 16: Scheme development under ProCure21

6.0 Evaluation
5.0 Delivery
4.0 Scheme
development
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3.0 Scheme Launch
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2.0 Team selection t ia
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1.0 Defining how se
P21 is applied U
It is important to note that the NHS Client will still need to conform to the
recognised approval gateways for managing capital schemes – the Capital
Investment Manual (CIM).
Whilst it is not the purpose of the ProCure21 Guide to explain these in detail a
summary of the gateways is contained overleaf and web address provided
with further guidance.

In summary, the approval gateways are illustrated as follows:-
Figure 17: Summary of the approval gateways

Case (SOC) Case (OBC) Case (FBC)
• Stakeholder approval
• Appointed:
Prerequisites:
¾ Project Director
¾ Project Team
¾ Clinical working groups
• Outline planning approval
• Levels of delegated authority
• Project Initiation Document (PID)
• Strategic context • Preferred option • Full review of previous

Constituents: business cases
• Health Service need • Cost effectiveness
• Detailed specification of the
• Formulation of options • Value for money
functional contents
• Affordability • Improvement in service
• Risk management strategy
quality
• Timetable
• Project management
• Flexibility
• A robust Estates strategy approach
• Robustness
• Benefits realisation plan
• Financially viable
• A plan for evaluation of the
• Continuing support from project
Primary Care Trusts
• Estates strategy
• Design proposals
The ProCure21 aim is that the design is developed by the PSCP in

consultation with the NHS Client. This ensures that the design, cost and
programme are all agreed as early as possible in the scheme delivery
process. It also provides the NHS Client with a high level of predictability as
to the completion date, out-turn cost and confidence that the design meets the
clinical needs that initiated the scheme. Scheme development needs to
conform with the aforementioned approval gateways (SOC, OBC, FBC).
The use of the Contract (NEC2, Option C) conforms with the aforementioned
approval gateways (SOC, OBC and FBC) and, as such, provides control
mechanisms to the NHS Client.
Figure 18 below illustrates the ‘phases’ of the contract and how these relate to
the approval gateways. As a condition of entry into each ‘phase’ of the
contract a detailed list of aims and deliverables is agreed with the PSCP these
are identified in a critical path programme for continuous monitoring.
The commercial rates and profit levels for these duties are predetermined as
part of the framework agreement.
As each Phase of the contract is agreed, the PSCP is then duty bound to
deliver the agreed list of duties in accordance with an agreed programme and

within a given cost. Any risks or changes to this are tightly controlled by the
contract procedures (explained in more detail in section 4.3).
This is an important feature of the scheme development phase and provides

the NHS Client with certainty of delivery.
Figure 18: Use of the Contract (NEC2, Option C)

Delivery Operation
Use of the contract Case (SOC) Case (OBC) Case (FBC)
Agreed Guaranteed Maximum

Price (GMP), pay actual cost
with potential for ‘gain-share’
Scheme development Phase 1 Phase 2 Phase 3
Phase 4
Construction phase
It is important that the team develops a joint action plan, broken down into the
sequential phases, to ensure that scheme development is controlled and
monitored.
Table 3 outlines a typical scheme development plan. This example begins

after OBC stage and incorporates a number of ‘affordability checks’ and risk
reviews within the process. This generic timeline is not intended to be
comprehensive but does serves as a typical example.

Table 3: Typical scheme development plan
Close liaison with clinicians and end users is vital during scheme
development.
ProCure21, through the contract procedures and requirements identify this

obligation and provides for milestone reviews and user group attendance at
workshops and design policy meetings; all of which are identified in the
scheme programme.
An accepted universal contract has been adopted for use as the basis of all
ProCure21 scheme specific contract documents. It is in general use in the
construction industry by many major public and private sector clients.
The contract is referred to as the New Engineering Contract (NEC), Option C

(2nd Edition) – Target Contract with Activity Schedule (with amendments). It
has amendments specifically to comply with requirements of the Capital
Investment Manual (CIM).
The contract template is located at the following web address:
ProCure21 Contract Template

4.2 Application of management
techniques under ProCure21
A number of techniques are applied throughout the life of all ProCure21

schemes. These are explained within the current section and fall into two
main categories:
- The Benchmarking Toolkit

- Review workshops
The Benchmarking Toolkit is used throughout the ProCure21 process and

serves two primary functions:
1) to demonstrate value for money, and;

2) to be a management performance tool in relation to continuous
improvement in service delivery.
The current version of the Benchmarking Toolkit has been developed in close
liaison with the Office of Government Commerce (OGC).
The data required by the Benchmarking Toolkit focuses on a range of

reporting demands, including those stipulated by central Government and
other key stakeholders. All parties to the scheme contract, PSCPs and NHS
Clients, are contractually obliged to complete and submit the toolkit at the
intervals stated.
The Benchmarking Toolkit brings together a number of toolkits which,

collectively, enable ProCure21 projects to be evaluated upon a broad range of
criteria.
The format of the toolkit is easy to follow and navigate. It is provided in Excel
format with hyperlinks to guide users through the various sections.
A number of aspects of performance are evaluated within the Benchmarking

Toolkit. The following illustration summarises these areas:
Explanation:
Best Client - evaluates the PSCP’s feedback on the NHS Client.
Design Quality - evaluates the design at defined stages of development
using AEDET (Achieving Excellence Design Evaluation Toolkit).
Environment - evaluates the environmental impact at defined stages of
development using NEAT (NHS Environmental Assessment Toolkit).
Client Satisfaction - evaluates the NHS Client’s satisfaction with the process
and product.
Cost - analyses the capital cost of the scheme at GMP using a
template based on a standard industry format.
Safety – evaluates the safety record of the PSCP.
Defects - scores the level of defects at handover.
Cost/Time Certainty - evaluates the cost/time outcome.
Figure 19: Benchmarking Toolkit – areas of evaluation:
Completed
Best
at Stage
Client
Cost/Time Design FBC/GMP
Certainty Quality
CONSTRUCTION
Continuous
Defects Improvement
Environment
Client
HANDOVER
Safety
Satisfaction
Cost
Analysis
PPE
The PSCP completes Data
The TRUST completes Data
The instructions page of the toolkit is illustrated below. This provides straight
forward guidance on how to use the toolkit. ‘Grey’ cells are to be completed
by the PSCP and, ‘yellow’ cells, by the NHS Client.

Use of this spreadsheet
The PSCP completes Data in all cells colour coded -
The Trust completes Data in all cells colour coded -
Navigate through the spreadsheet by selecting the hyperlinks indicated by:-
►► or ◄
The sheet 'Benchmarking Timeline' provides a good starting point.
Who Completes What and When
The key reference sheet is 'Benchmarking Timeline'. This summarises who
►►Benchmarking
completes what and when and also provides 'hyperlinks' to the appropriate
sheet for the purposes of data entry. Timeline
The Spreadsheet should be completed and emailed to P21Benchmarking@dh.gsi.gov.uk at the
following stages. The worksheet tab is colour coded to reflect the stage completion is required.;-
1. FBC/GMP Stage- The GMP will have to be agreed to complete the
information at this stage.
2. End of Calendar year when the project is in construction - This is to
capture the safety information during each year.
3. Handover Stage - The final account will have to be agreed to complete the
information at this stage.
4. Post Project Evaluation Stage - (12 months after completion)
Contact Details
Further information can by obtained by contacting the following;-
David Low - Cost & Performance Manager - david.low@dh.gsi.gov.uk, Tel - 0113 254 6603
Nigel Dorman - Head of Cost & Performance - nigel.dorman@dh.gsi.gov.uk, Tel - 0113 254 6599
Christian Akrigg - ProCure21 Audit Controller - christian.akrigg@dh.gsi.gov.uk, Tel - 0113 254 5247
P21 Benchmarking Toolkit overview
Contract Details Trust - The questions contained in 'Contract Details - Trust' are required to report to
the Office of Government Commerce to facilitate measurement against the Achieving Excellence
strategic targets endorsed by Ministers.
Contract Details PSCP - The questions contained in 'Contract Details - PSCP' enable the measurement
of performance in respect of time and cost predictability, defects and Client Satisfaction Service and
Product
AEDET - a measure of design quality. The spreadsheet records only the ►►Link to AEDET
summary scores. The full assessment is available on the internet. Evolution website
NEAT - a measure of steps taken to reduce negative effects on the
►►Link to NEAT
environment. The spreadsheet records only the summary scores. The full
assessment is available from the internet. website
Service Satisfaction - a measure of the client satisfaction with the service provided by the PSCP
Best Client - a measure of the holistic approach to partnering and performance indicators
Safety - the nationally accepted guide lines for measuring safety on sites. The number of accidents
recorded are the over 3-day injuries reported under RIDDOR.
Elemental cost Analysis - Breakdown of the scheme cost in standard industry format.
A ‘timeline’ is also provided within the Benchmarking Toolkit. This contains

hyperlinks to the sections that require completion. Similarly - ‘grey’ cells
define those areas that need to be completed by the PSCP and the ‘yellow’
cells, by the NHS Client.
The timeline highlights the three main stages when the toolkit requires
updating:
• Full Business Case/ GMP agreement,

• Handover, and;
• Post Project Evaluation.
The safety records, however, need updating quarterly during the construction
phase.
The timeline acts as the ‘hub’ of the toolkit. Links are provided to the timeline
on each page to ease navigation throughout the toolkit.
Benchmarking Timeline - Contracts above £1m GMP ◄Return to Introduction
Toolkit Responsibility FBC/GMP Construction *H/Over **PPE
Benchmarking Contact PSCP ►►Go ►►Go ►►Go
Contract details - Trust Trust ►►Go
Contract details - PSCP PSCP ►►Go ►►Go ►►Go
Best Client PSCP - PM ►►Go ►►Go
AEDET Evolution PSCP - Lead Designer ►►Go ►►Go
NEAT PSCP - M&E Consultant ►►Go ►►Go
Client Satisfaction Trust - PD/PM ►►Go ►►Go
Elemental Cost Analysis

PSCP - Cost Advisor ►►Go
& Specification
Progress Tracking PSCP ►►Go ►►Go ►►Go
Safety PSCP ►►Quarterly - When the PSCP is on site
To download the Benchmarking spreadsheet follow the link below
Benchmarking Spreadsheet
Review Workshops
Review Workshops are typically undertaken at key stages/ breakpoints within

the life of the scheme. If the NHS Client and PSCP have an ongoing
arrangement, over a number of schemes, a Review Workshop is often
undertaken to ensure continuous improvement.
Review Workshops typically involve the same parties that attended the
Launch Workshop (clinicians, supply chain and Estates etc) and, in an open
environment, capture what has worked well and what could be improved
upon. Even the most successful schemes can find areas of improvement so it
is important that effort is devoted at key stages to ensure ongoing
improvement. It is also important that the outcomes of the reviews are fed
back to the ProCure21 team so that they may share them with other NHS
Clients.

Note of caution:
It is important that the recommended techniques (as outlined above) are

undertaken at appropriate milestones within the ProCure21 process. The
techniques are based on best practice within healthcare and other
construction sectors. Failure to employ these techniques will have a
detrimental outcome on the outturn success of the scheme.
Further guidance is available from the ProCure21 Implementation Advisors

on the timing and application of these techniques.

4.3 Use of the Contract
(NEC2, Option C)
A standard contract has been adopted for use on ProCure21.
It is a recognised construction industry contract that has been amended

specifically for the programme. The contract is referred to as the New
Engineering Contract (NEC), Option C (2nd Edition) – Target Contract with
Activity Schedule (with amendments).
The contract contains a number of proactive measures that support team

working and scheme development.
Separate engagements are entered into for each of the business development
stages SOC, OBC, FBC and delivery. These are referred to as Phases 1-4
respectively.
Structure of the contract:
The NEC Contract is recognised to be simple to administer:
- Easy to understand,
- Written in plain English, and;
- Well structured.
It is also recognised to be a stimulus to good project management and to

enable problems to be resolved effectively. It incorporates:
- Early Warning notices – to deal with problems as they arise and avoid
additional costs if possible,
- A resource led programme which should be kept current at all times,
- Early agreement of variations (referred to as Compensation Events).
The contract therefore supports the principles, culture and ethos of

ProCure21.
Improvements to the contract:
A number of alterations have been made to the standard contract in order to

tailor it to the requirements of ProCure21. Key alterations include:
- A guaranteed cash flow forecast (form the NHS Clients perspective)

- Payment of accrued costs to the supply chain
- Gain share potential (but no share of overspend by the NHS Client)
- An improved definition of Actual Cost

Table 7: Summary of contract guidance
Document title Use

Contract Template A comprehensive template containing all relevant
alterations relevant to ProCure21.
This template provides guidance on how to

complete the contract for each of the four phases
(SOC, OBC, FBC and Construction).
Works Information Guidance on how to operate the contract, design

template responsibilities, acceptances, gateway and GMP
procedures as well as recording the Employer
brief and scheme requirements.
Site Information Guidance on how to describe the boundaries of

Template the site etc.
ECC Pro-forma’s Useful pro-forma’s to help administer the contract.

These avoid the need to draft numerous letters.
Pricing matrices for Helpful pro-forma’s to be completed at key stages

design staff costs of ProCure21 e.g. commercial matrix at OBC
stage.
Cost Advisors should be well versed in the application of the Contract (NEC2,
Option C) and provide guidance on both its completion and use.
Roles and responsibilities under the NEC contract:

Important notes:
1. It is important that PSCP’s and NHS Clients enter into the relevant stage of
the contract (i.e. 1, 2, 3 or 4) as soon as practicable.
2. The Implementation Advisors visit schemes on a regular basis and review

performance against a number of criteria such as the existence of a signed
contract.
3. The principles of the contract need to be complied with in order to

maximise the benefits of ProCure21 (e.g. early agreement of
Compensation Events, use of the Early Warnings procedure and the
provision of a detailed Programme). Unlike traditional contracts the use of
the NEC does not infer an adversarial relationship – rather a relationship
that focuses on procedures and good practice.

4.4 Agreeing the GMP
The Guaranteed Maximum Price (GMP) is the agreed price between the NHS
Client and the PSCP for the construction works. This section explains how
the GMP is agreed. The explanation is broken down into two halves:
- When the GMP is agreed i.e. the ‘timing’

- How the GMP is built i.e. the ‘building blocks’
When to agree the GMP:
The GMP should be agreed under ProCure21 as part of the Phase 3 duties
i.e. at FBC. This is based on the premise that a more accurate GMP will be
established if it is based upon a substantially complete design.
In addition to this, the construction works as defined under Phase 4 of the

Contract should not commence until the GMP is agreed and Phase 4 of the
Contract is signed.
Please note: This does not prevent enabling works being undertaken as they
can be defined as part of the Phase 3 duties.
Good practice also suggests that a number of activities need to occur before
the GMP can be successfully agreed:
- The design needs to be signed off by the NHS Client
- All innovation needs to be incorporated into the GMP (this ensures that the
NHS Client obtains value-for-money)
- The GMP should based upon a substantially complete design
- Joint risk management needs to occur
- The GMP agreement should identify Provisional Amounts and ownership

of identified risks (e.g. ground conditions, elements of the design that
cannot be readily defined by the NHS Client should be highlighted and
treated accordingly)
- The GMP should be verified by a detailed (and resourced) construction

programme, resource balanced and compatible with the Activity Schedule

Figure 20 illustrates the typical approach adopted in obtaining a GMP.
The NHS Client’s business case figures are initially shared with the PSCP and
worked on jointly. Over time, this hopefully sees a reduction in scheme cost
as the design develops and risks are managed out.
The overhead and profit levels of the PSCP and key supply chain members
have already been agreed as part of the framework selection process. This
allows the team to focus on the scheme in hand rather than deal with
commercial issues.
Formal techniques such as Value and Risk Management are employed at this
stage and help define the brief for the scheme and allocate risk in an
equitable manner.
Figure 20: When to agree the GMP under ProCure21
Potential savings generated from:

- Clarity of brief
- Joint Value Management
- Joint Risk Management
- Innovation from the supply chain
£
Shared savings
GMP
Ethos continues:
- Value Engineering
- Joint working
SOC OBC FBC Delivery

How to build up the GMP:
Under ProCure21 the Guaranteed Maximum Price (GMP) should be built up

on the basis of resource and actual cost. This is a new way of working for
many NHS Clients and it is therefore advisable to employ Cost Advisors with
appropriate experience.
Figure 21: ‘Building blocks’ of the GMP
GMP build-up
Professional fees
NHS client risk
GMP
Phases 1-3
Fee %
PSCP Risk
Site On Cost
Own work
Sub/c 6
Sub/c 5
Sub/c 4
Sub/c 3
Sub/c 2
Sub/c 1
An explanation of these ‘building blocks’ is contained overleaf.

The GMP will therefore incorporate:
- Validated subcontract prices
- All of the PSCP’s ‘own work’ (e.g. own operatives)
- Identified amounts in respect of PSCP risk and client risk as Provisional

Amounts
- The agreed Fee % (overhead and profit margins)
- The amounts due and incurred in Phases 1-3 (SOC, OBC & FBC)
The GMP represents the maximum price that the NHS Client will pay for the
works unless:
- The scope of work is altered.

- An event occurs that would entitle the PSCP to recompense as a
Compensation Event.
Relationship with the Cost Models
One of the more technical aspects of agreeing the GMP is identified in

ProCure21 Practice Note 1.
‘The GMP must be analysed and presented in the same format as the
economic cost models, clearly distinguishing between departmental and on-
cost areas’.
NHS Cost Advisors will need to undertake this exercise in conjunction with the
PSCP.

Section checklist:

(if required)
2. Compliance with the NHS approval Gateways (SOC, OBC & FBC)
3. The successful completion of appropriate Phases of the

Contract (Phase 1/2/ 3)
4. Compliance with the benchmarking toolkit
5. Completion of risk management process (at OBC stage)
6. Appropriate Review Workshops
7. Appropriate use of the Contract (NEC2, Option C) in

Phases 1-3
8. An agreed GMP

Section 5
Delivery
5.1 Managing the delivery phase
5.2 Use of the contract
5.3 Management techniques
Introduction
The delivery phase (Phase 4 of the Contract) requires the maintenance of

management techniques and procedures already outlined within the
ProCure21 Guide.
The Contract (NEC2, Option C) will be used throughout the process. If the
previous Phases (1-3) have been completed successfully then the parameters
of scheme delivery should be clearly defined and measurable. The contract
contains detailed procedures for dealing with any likely risks and managing
change.
The aforementioned management techniques will also need to be

appropriately applied in order to maximise value.

5.1 Managing the delivery phase
As the Contract (NEC2, Option C) is used in the formulation of Phase 4 this

should in turn be based upon a substantially complete design, a detailed
programme and a realistic GMP.
The parameters of the scheme should be clearly established and these should
form the cornerstone of project management on the scheme.
In practice, changes may be required to the brief and ongoing consultation

may be required with clinicians/ end users. Risks may also occur that had not
been accounted for.
Irrespective of the events that occur after signing the GMP, the use of the
Contract (NEC2, Option C) should remain the focus for the delivery team.
The risk management, programming and change management procedures
will ensure that issues are dealt with in a timely and equitable manner.
Effective use of the NEC pro-forma’s will also ensure that an audit trail is
maintained and that administration costs are kept to a minimum.

5.2 Use of the Contract
(NEC2, Option C)
It is important to re-emphasis the ongoing use of the Contract (NEC2, Option
C) during this stage.
Practical use of the contract is supported by using the NEC pro-forma’s. For a
copy of these please click the link below
ProCure21 NEC Proformas
In addition to this it is important to mention the following areas of project

management which have direct relevance with the contract:
Cost control
Managing the ‘gain share’
Open-book audit
Cost Control:
The Contract (NEC2, Option C) has been specifically amended under

ProCure21 to provide certainty of cash flow to the NHS Client (via ‘Z’ clauses
3 and 4).
The GMP agreement should include what is referred to as an Activity

Schedule. This is a programme related Price list of key activities/ items of
work representing the amount of the GMP.
The NEC places great importance on having a detailed critical path

programme at the outset of the contract (clause 31.2) and for this to be
maintained by the PSCP and updated each month throughout the life of the
scheme.
The GMP (broken down into an Activity Schedule) may therefore be easily
aligned to the detailed resource plan (further broken down into labour, plant
and materials) and a ‘cumulative value’ curve established (highlighted in blue
on the diagram).
The monthly updates record progress on site including any changes by

Compensation Events.

An example is provided in figure 22 below:
Figure 22: Cost control mechanism under ProCure21
GMP
Cumulative value
(breakdown of the GMP)
Pay cumulative
cost (lesser of the
£
two)
Cumulative cost
Pay cumulative
value (lesser of
the two)
Valuation 2 Valuation 8
Time
The ‘cumulative value’ is then plotted against the ‘cumulative cost’ curve to
track commercial progress (in this case predicting a ‘gain share’ at Final
Account stage).
Under ProCure21 if the ‘cumulative cost’ exceeds the ‘cumulative value’ then
only the ‘cumulative value’ is paid by the NHS Client (example given at
Valuation 2).
Conversely, if the ‘cumulative cost’ is less than the ‘cumulative value’ then
only the ‘cumulative cost’ is paid (example given at Valuation 8).
In both cases the NHS Client pays the lesser of the two. It is important that an
equitable breakdown of the GMP is agreed. If the breakdown is inaccurate
then the PSCP will be disadvantaged and/or the NHS Client will have
unpredictable cash flow.
A graphical representation of the finances (as outlined above) will also prove
invaluable to the team in order to help track and control expenditure. This

becomes particularly relevant if a ‘gain share’ is predicted and the NHS Client
wishes to reinvest in the scheme.
Managing the ‘gain share’:
The PSCP is paid actual cost plus Fee % (i.e. labour, plant, materials and
subcontract work) but only up to the ceiling price of the GMP.
If savings are generated against the GMP then these are shared on a 50/50
basis. There is provision in the contract so that the NHS Client may reinvest
these savings back into the scheme e.g. to improve staff facilities or
furnishings.
If the amount of savings exceeds 20% of the GMP at completion the gain
share is only calculated on the 20% saving e.g. 10% maximum gain share to
the PSCP. The remaining saving reverts to the NHS Client (although to have
savings of this magnitude is extremely rare and suggests that the original
target was set poorly).
Figure 23 illustrates the relationship between the final GMP and the audited
final cost. The GMP will alter throughout the course of the contract to account
for variations (Compensation Events). At final account stage the final GMP is
then compared against the audited cost and the ‘pain/ gain’ share calculated.
The amended GMP (left hand column) is compared against the audited actual
cost. The middle and far right hand columns represent two Final Account
scenarios. The middle column reflects a ‘gain share’ where actual cost is less
than the GMP – any gain is shared on a 50/50 basis. However if the gain
exceeds a 20% cost saving then the NHS Client will retain the extra (this is
unlikely to occur and would suggest an inaccurate GMP).
If the cost exceeds the GMP without legitimate reason then the PSCP absorbs
any overspend (right hand column). Again, this would typically infer an
inaccurate GMP or inefficient working by the PSCP (e.g. putting right defective
work or inefficient management of resources).

Figure 23: Example final account
GMP build-up Final Account e.g. 1 Final Account e.g. 2
Professional fees
NHS client risk

100% ‘pain’
Fee % to PSCP
GMP
Phases 1-3 50/50 ‘gain
share’
80% of GMP Fee %
Fee %
PSCP Risk
100% of further
Site On Cost
savings retained by
the NHS client
Own work
Actual Cost
Sub/c 6
Sub/c 5 Actual Cost
Sub/c 4
Sub/c 3
Sub/c 2
Sub/c 1
Open-book audit:
A central audit of the PSCP’s has already been undertaken by the ProCure21
team. This covers the organisations internal company procedures.
For further details of ProCure21 audit, click on the link below
ProCure21 Audit
Local NHS Client audits will still be required to ensure that the amounts paid
to the PSCP are accurate. This is a role typically undertaken by the Cost
Advisor on a monthly basis.
The open book principles under ProCure21 are not just restricted to the
financial aspects – the ethos is carried through to all areas of PSCP working
e.g. subcontractor procurement and risk management.

5.3 Ongoing application of
management techniques
In accordance with the Benchmarking Toolkit, timely reviews will be required

throughout the course of scheme delivery.
If undertaken properly these will assist the team in improving performance and
ensuring that the scheme remains on track.
The timings of these reviews should be inserted within the delivery

programme to ensure that they are undertaken.

5.0 Delivery
Section checklist
1. Further consultation with the Implementation Advisor (if required)
2. Appropriate use of the Contract (NEC2, Option C)
3. Compliance with the benchmarking toolkit
4. Cost control/ forecasting on a regular basis
5. Ongoing audit of cost
6. Agreed Final Account (including ‘gain share’ if appropriate)

Section 6
Evaluation
6.1 Post project evaluation
6.2 Sharing lessons learned
Introduction
The evaluation section of the ProCure21 Guide is relatively short in length but,
nevertheless, a vital stage in the ProCure21 life cycle.
The Benchmarking Toolkit requires that continuous reviews of performance

are undertaken.
This section of the guide reinforces then need to use the Benchmarking
Toolkit and also to consider the use of Review Workshops.
Despite being the last section within the ProCure21 Guide the ethos of
continuous review and the search for improvements in delivery should be
present throughout the entire process.

6.1 Post Scheme Evaluation
Benchmarking Toolkit:
The Benchmarking Toolkit requires the final outcome of the reviews to be

undertaken and for the performance data to be updated.
The timing and representation of these reviews should be included within the
agreed delivery plan for the scheme.
It is important that this data is completed as it not only provides the team with
closure on the success of the scheme but also provides invaluable feedback
to the ProCure21 team.
Updated GMP:
An updated GMP (and comparison against actual cost) will need to be

completed at the Final Account stage. This will be led by the Cost Advisor
and submitted back to the ProCure21 team.
This provides essential data to the ProCure21 team and enables comparisons
to be made against other methods of procurement and trends within
ProCure21.
Review workshops:
It may considered appropriate for a Review Workshop to be undertaken on

the scheme. A number of NHS Clients have successfully completed Review
Workshops and found significant benefit from the process.
The following factors may suggest that a formal Review Workshop is

worthwhile:
Members of the team are about to start another scheme and would
benefit from a review of current performance.
A similar scheme is being delivered elsewhere by the NHS Client and

lessons learned can be carried forward.
Generally, it is considered worthwhile to have a review of the process

and to establish what improvements can be made/ what needs to be
repeated next time around.
The review workshops are typically facilitated by an outside party.
The review itself focuses on two main areas:

The ‘process’ – how the team worked together and the effectiveness
of management procedures
The ‘product’ – the overall success of the scheme – outcome of the

Benchmarking Toolkit, cost & time delivery, end user satisfaction and
how well the initial scheme objectives have been met (sometimes
captured in a Charter/ documented scheme objectives).
The Review Workshop will need to include all of the construction

professionals involved in the scheme and appropriate clinicians/ stakeholders/
end users. It is vital to obtain a good cross section of views on the day to
ensure that the evaluation is balanced.
The outcome of the Review Workshop will be a written report detailing:
Aspects of the scheme that worked well and need to be repeated.
Areas of improvement with clear action plans for future delivery.

Illustration of the review process – St. Nicholas Hospital, May 2005
Step1: Original Charter:
Step2: Team evaluated success (against original Charter):

Scoring the Charter
Score
Process 1 2 3 4 5
Formulate the Brief 9

Challenge ideas, innovative thinking 9
Establish the communications structure 9
Engage stakeholders 9
Achieve Best Value - affordability, time, quality 9
Efficient orderly working / programme 9
Safety culture, managed risk 9
Product
High quality environment 9
Fit for purpose and flexible 9
Safe and secure for service users, staff and public 9
Robust, sustainable and maintainable 9
Environmentally friendly 9
Design to raise the spirits 9
Help recruitment and retention of staff 9
Build on time and within budget (capital and revenue) 9
Compatible whole site strategy 9
Total: 0 0 0 10 6
Step3: Action plans generated:

6.2 Sharing lessons learned
Having undertaken a review of performance it is important to share all relevant

experiences with other NHS Clients, the ProCure21 team and Implementation
Advisors.
The ProCure21 team hold regular events/ conferences and chair a Best
Practice Club. The aim of these forums is to learn from live schemes and to
share experiences.
The ProCure21 team should be the first point of contact should the team
consider that their own experience is worthwhile sharing. An appropriate
forum/ mechanism for capturing this can then be determined.
If you have something that you would like to share with the other ProCure21
schemes then you can add it into the ProCure21 Best Practice Database.
Follow the link below to the database, where there are further instructions on
its use.
Best Practice Database

6.0 Evaluation
Section checklist:
1. Complete the Benchmarking Toolkit & submit to the

ProCure21 team
2. Complete the GMP final account statement &

submit to the ProCure21 team
3. Undertake a Review Workshop (if appropriate)
4. Share lessons learned with the ProCure21 team & ProCure21

Implementation Advisor

Appendix 1: Glossary of terms
Term Explanation
AEDET (Achieving Excellence in Part of the Benchmarking toolkit that evaluates
Design Evaluation Toolkit) design quality against a range of factors
Charter A non-legally binding document which records the
partnering intentions of the parties. It incorporates
a mission statement, mutually agreed objectives,
together with the signatures and logos of all the
parties
Core Group Part of the integrated scheme team focussed on
delivery
KPI (Key Performance Indicator) Key measure of success
NEAT (NHS Environmental Part of the Benchmarking toolkit that evaluates the
Assessment Toolkit) environmental impact of a scheme
Implementation Advisor Representative of the ProCure21 team responsible
for the correct implementation of ProCure21
PSCM (Primary Supply Chain Second tier supply chain member – a strategic
Member) partner of the PSCP e.g. architectural practice/
Mechanical contractor
Principals Group Part of the integrated scheme team focused on
strategic outcomes
ProCure21 ProCure21 is a procurement initiative aimed at
delivering better quality healthcare buildings and
improved value for money.
Professional Advisor Covers any specialist advice typically provided by
Cost Advisors, Engineers, Architects and Specialist
Procurement Advisors etc.
Project Director Director responsible for the overall delivery of the
scheme.
Project Manager Named individual within the Contract (NEC2,
Option C) that has overall responsibility for
administrating the contract.
PSCP (Principal Supply Chain Principal member of the supply chain
Partner)
SCM (Supply Chain Member) Members of the supply chain
Supervisor Named individual within the Contract (NEC2,
Option C) that is responsible for supervising the
works
Task team Part of the integrated scheme team focussed on
functional delivery e.g. design development,
commercial

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The ProCure21 Guide

Achieving Excellence in NHS Construction

The publication of The ProCure21 Guide represents a milestone in the

What is the purpose of the ProCure21 Guide?

The guide sets out clearly for all

Recognised success & benefits:

At the time of publication, ProCure21 has over 265 schemes registered

ProCure21 is recommended by HM Treasury and compliant with OGC

ProCure21 Guide 2 Version 5.0, January 2007

- A scheme delivered at least 6 months before it would be

What role does the Department of Health play?

The Department of Health will provide the following support

Range of services under ProCure21:

ProCure21 is not just a construction solution, A key benefit of ProCure21 is

A key and initial consideration is therefore how extensively the range of

ProCure21 Guide 3 Version 5.0, January 2007

• NHS Trust Estates and Facilities staff,

To register for the club click on the link below

ProCure21 Club registration

ProCure21 Guide 4 Version 5.0, January 2007

3.0 Scheme Launch

2.0 Team selection

1.0 Defining how

Figure 2: Contents of the ProCure21 Guide:

1.0 Defining how

ProCure21 Guide 5 Version 5.0, January 2007

Appendix 1: Glossary of terms 72

ProCure21 Guide 6 Version 5.0, January 2007

Defining how ProCure21 is applied

1.1 Range of Services

1.2 Benefits of ProCure21

1.3 Application of ProCure21

1.4 Critical success factors

ProCure21 Guide 7 Version 5.0, January 2007

ProCure21 is a proven procurement process that may be adopted by NHS

The PSCPs are very different to traditional contracting organisations as their

ProCure21 is based upon a long term framework agreement (5 years with

Why was ProCure21 developed?

ProCure21 was developed in direct response to a number of challenges

Figure 3: Key drivers behind ProCure21

Drivers for change: Common theme Response: ProCure21

• Greater end user/ stakeholder 9 Involvement of end users/

ProCure21 Guide 8 Version 5.0, January 2007

ProCure21 offers a great deal of flexibility in terms of the level of service

Based on the schemes objectives, constraints and level of

Table 1: Added value of P21 at various stages of scheme development:

Pre-SOC (Strategic Outline Case)  Strategic advice

Section 4.0 of this ProCure21 Guide explains the ‘Scheme Development’

Role of the Implementation Advisor:

The ProCure21 Implementation Advisor provides a free source of guidance to

ProCure21 Guide 9 Version 5.0, January 2007

ProCure21 embraces the principles of collaborative working ensuring that

As the framework partners are already appointed to the framework OJEU

• Winner of the Most Admired Public Sector Client (Construction Clients

“Due to a range of factors, including early involvement of integrated supply

www.nao.org.uk/publications/nao_reports showed appreciable time, cost and

These have been confirmed by the outturns in subsequently completed

ProCure21 Guide 10 Version 5.0, January 2007

Figure 4: Key benefits of ProCure21:

¾ A short PSCP selection ¾ Joint programming with the

FAST TRACK TIME NO OJEU

¾ Controlled PSCP overhead ¾ A process that addresses

Pre-SOC (Strategic Outline Case) Strategic advice