Cost led procurement - Revision history

Designing Buildings at 06:44, 16 October 2020

2020-10-16T06:44:48Z

← Older revision		Revision as of 06:44, 16 October 2020
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	This article contains public sector information licensed under the [https://www.nationalarchives.gov.uk/doc/open-government-licence/version/2/ Open Government Licence v2.0] ref Cabinet Office, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance 2014].		This article contains public sector information licensed under the [https://www.nationalarchives.gov.uk/doc/open-government-licence/version/2/ Open Government Licence v2.0] ref Cabinet Office, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance 2014].

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Framework agreement.		* Framework agreement.
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	* Value for money.		* Value for money.

−	=== External references ===	+	= External references =

	* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance]		* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance]
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	* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325011/New_Models_of_Construction_Procurement_-_Introduction_to_the_Guidance_-_2_July_2014.pdf New Models of Construction Procurement]		* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325011/New_Models_of_Construction_Procurement_-_Introduction_to_the_Guidance_-_2_July_2014.pdf New Models of Construction Procurement]

−	[[Category:~~Policy~~]] [[Category:DCN_Policy]] [[Category:Procurement]] [[Category:Public_procedures]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:DCN_Policy]] [[Category:Policy]] [[Category:Procurement]] [[Category:Public_procedures]]

Construction Link Ltd at 07:28, 7 August 2017

2017-08-07T07:28:39Z

← Older revision		Revision as of 07:28, 7 August 2017
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	* Supply chain management.		* Supply chain management.
	* Sustainable procurement.		* Sustainable procurement.
		+	* The benefits of e-procurement in construction.
	* Two stage open book.		* Two stage open book.
	* Value for money.		* Value for money.
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	* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325011/New_Models_of_Construction_Procurement_-_Introduction_to_the_Guidance_-_2_July_2014.pdf New Models of Construction Procurement]		* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325011/New_Models_of_Construction_Procurement_-_Introduction_to_the_Guidance_-_2_July_2014.pdf New Models of Construction Procurement]

−	[[Category:Policy]] [[Category:Procurement]] [[Category:Public_procedures]]	+	[[Category:Policy]] [[Category:DCN_Policy]] [[Category:Procurement]] [[Category:Public_procedures]]

Editor at 13:21, 6 February 2017

2017-02-06T13:21:00Z

← Older revision		Revision as of 13:21, 6 February 2017
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	* Supply chain.		* Supply chain.
	* Supply chain management.		* Supply chain management.
		+	* Sustainable procurement.
	* Two stage open book.		* Two stage open book.
	* Value for money.		* Value for money.

Editor at 12:43, 18 January 2017

2017-01-18T12:43:22Z

← Older revision		Revision as of 12:43, 18 January 2017
Line 47:		Line 47:
	* Integrated supply team.		* Integrated supply team.
	* Managing the procurement process.		* Managing the procurement process.
		+	* Optimised contractor involvement.
	* Procurement route.		* Procurement route.
	* Supply chain.		* Supply chain.

Editor at 16:16, 16 December 2016

2016-12-16T16:16:13Z

← Older revision		Revision as of 16:16, 16 December 2016
Line 46:		Line 46:
	* Integrated project insurance.		* Integrated project insurance.
	* Integrated supply team.		* Integrated supply team.
		+	* Managing the procurement process.
	* Procurement route.		* Procurement route.
	* Supply chain.		* Supply chain.

Editor at 12:39, 23 February 2016

2016-02-23T12:39:21Z

← Older revision		Revision as of 12:39, 23 February 2016
Line 1:		Line 1:
−
	= Introduction =		= Introduction =

−	The main aims of the Government Construction Strategy were to ~~‘''change~~ the relationship between Clients and ~~Industry''’~~ and achieve a 15-20% reduction in public sector construction costs by 2015. The [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group report 2012] developed three potential new strategies to help achieve these aims:	+	The main aims of the Government Construction Strategy were to ‘change the relationship between Clients and Industry’ and achieve a 15-20% reduction in public sector construction costs by 2015. The [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group report 2012] developed three potential new strategies to help achieve these aims:
−	*Cost Led Procurement (CLP).	+
−	*Integrated Project Insurance (IPI).	+	* Cost Led Procurement (CLP).
−	*Two Stage Open Book.	+	* Integrated Project Insurance (IPI).
		+	* Two Stage Open Book.

	All three involve early contractor involvement, transparency and integration. Along with a reduction in costs, they are expected to contribute to a reduction in project risk, improved programme accuracy and an enhanced working relationship between client and the supply chain.		All three involve early contractor involvement, transparency and integration. Along with a reduction in costs, they are expected to contribute to a reduction in project risk, improved programme accuracy and an enhanced working relationship between client and the supply chain.
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	= Background =		= Background =

−	The Cost Led Procurement method is ‘...''intended to allow industry to use its experience and knowledge to develop innovative solutions through leveraging design, materials, subcontracting, direct labour and experience to the advantage of the Public Sector Client...focused on achieving target costs whilst maintaining, if not improving ~~value''’~~ ([https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cabinet Office, 2014]).	+	The Cost Led Procurement method is ‘...intended to allow industry to use its experience and knowledge to develop innovative solutions through leveraging design, materials, subcontracting, direct labour and experience to the advantage of the Public Sector Client...focused on achieving target costs whilst maintaining, if not improving value’ ([https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cabinet Office, 2014]).

	In Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated. Typically, an integrated supply team (one or more) is identified through a framework agreement and the team work together to complete the project at below the ceiling cost. In subsequent similar projects within a framework, Cost Led Procurement offers the opportunity for further reduction of costs.		In Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated. Typically, an integrated supply team (one or more) is identified through a framework agreement and the team work together to complete the project at below the ceiling cost. In subsequent similar projects within a framework, Cost Led Procurement offers the opportunity for further reduction of costs.
Line 20:		Line 20:

	The CLP plan involves five phases:		The CLP plan involves five phases:
−	*Inception.
−	*Selection of contractor.
−	*Design and cost development.
−	*Construction.
−	*Operation

−	~~The flow chart from the 2014 Cabinet Office publication, [https://www~~.~~gov~~.~~uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance~~.~~pdf Cost Led Procurement Guidance] outlines the process~~.~~<br/>~~	+	* Inception.
		+	* Selection of contractor.
		+	* Design and cost development.
		+	* Construction.
		+	* Operation

−	[~~[File~~:~~Cost let procurement~~.~~png\|RTENOTITLE]~~]	+	The flow chart from the 2014 Cabinet Office publication, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance] outlines the process.

−	= ~~'''~~Trial projects~~'''~~ =	+	[[File:Cost_let_procurement.png\|link=File:Cost_let_procurement.png]]
		+
		+	= Trial projects =

	Two trial projects were run using the CLP method: [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/253693/Procurement_Trial_Project_Short_Form_Case_Study_Environment_Agency_Upper_Mole_Project.pdf Upper Mole] and [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/248614/Procurement_Trial_Project_Case_Study_EA_Rye_Harbour_0_2.pdf Rye Harbour]. The Rye Harbour scheme was successful in achieving a 6% saving through reducing the project programme.		Two trial projects were run using the CLP method: [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/253693/Procurement_Trial_Project_Short_Form_Case_Study_Environment_Agency_Upper_Mole_Project.pdf Upper Mole] and [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/248614/Procurement_Trial_Project_Case_Study_EA_Rye_Harbour_0_2.pdf Rye Harbour]. The Rye Harbour scheme was successful in achieving a 6% saving through reducing the project programme.

−	----	+	-----
−		+
	This article contains public sector information licensed under the [https://www.nationalarchives.gov.uk/doc/open-government-licence/version/2/ Open Government Licence v2.0] ref Cabinet Office, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance 2014].		This article contains public sector information licensed under the [https://www.nationalarchives.gov.uk/doc/open-government-licence/version/2/ Open Government Licence v2.0] ref Cabinet Office, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance 2014].

−	= ~~'''~~Find out more~~'''~~ =	+	= Find out more =

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Framework agreement.	+
−	*Government construction strategy.	+	* Framework agreement.
−	*Integrated project insurance.	+	* Government construction strategy.
−	*Integrated supply team.	+	* Integrated project insurance.
−	*Procurement route.	+	* Integrated supply team.
−	*Supply chain.	+	* Procurement route.
−	*Two stage open book.	+	* Supply chain.
−	*Value for money.	+	* Supply chain management.
		+	* Two stage open book.
		+	* Value for money.

	=== External references ===		=== External references ===
−	*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance]
−	*[https://www.gov.uk/government/publications/government-construction-strategy Government Construction Strategy]
−	*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group Report]
−	*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325011/New_Models_of_Construction_Procurement_-_Introduction_to_the_Guidance_-_2_July_2014.pdf New Models of Construction Procurement]

−	[[Category:Policy]]	+	* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance]
−	[[Category:Procurement]]	+	* [https://www.gov.uk/government/publications/government-construction-strategy Government Construction Strategy]
−	[[Category:Public_procedures]]	+	* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group Report]
		+	* [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325011/New_Models_of_Construction_Procurement_-_Introduction_to_the_Guidance_-_2_July_2014.pdf New Models of Construction Procurement]
		+
		+	[[Category:Policy]] [[Category:Procurement]] [[Category:Public_procedures]]

Designing Buildings at 07:50, 30 September 2014

2014-09-30T07:50:49Z

← Older revision		Revision as of 07:50, 30 September 2014
Line 47:		Line 47:
	*Procurement route.		*Procurement route.
	*Supply chain.		*Supply chain.
		+	*Two stage open book.
	*Value for money.		*Value for money.

Designing Buildings at 12:38, 5 September 2014

2014-09-05T12:38:12Z

← Older revision		Revision as of 12:38, 5 September 2014
Line 2:		Line 2:
	= Introduction =		= Introduction =

−	The main aims of the Government Construction Strategy were to ‘''change the relationship between Clients and Industry''’ and achieve a 15-20% reduction in public sector construction costs by 2015. The [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group report 2012] developed three potential new strategies to help achieve these aims:	+	The main aims of the Government Construction Strategy were to ‘''change the relationship between Clients and Industry''’ and achieve a 15-20% reduction in public sector construction costs by 2015. The [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group report 2012] developed three potential new strategies to help achieve these aims:
	*Cost Led Procurement (CLP).		*Cost Led Procurement (CLP).
	*Integrated Project Insurance (IPI).		*Integrated Project Insurance (IPI).
Line 13:		Line 13:
	The Cost Led Procurement method is ‘...''intended to allow industry to use its experience and knowledge to develop innovative solutions through leveraging design, materials, subcontracting, direct labour and experience to the advantage of the Public Sector Client...focused on achieving target costs whilst maintaining, if not improving value''’ ([https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cabinet Office, 2014]).		The Cost Led Procurement method is ‘...''intended to allow industry to use its experience and knowledge to develop innovative solutions through leveraging design, materials, subcontracting, direct labour and experience to the advantage of the Public Sector Client...focused on achieving target costs whilst maintaining, if not improving value''’ ([https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cabinet Office, 2014]).

−	~~With~~ Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated. Typically, an integrated supply team (one or more) is identified through a framework agreement and the team work together to complete the project below the ceiling cost. In subsequent similar projects within a framework, Cost Led Procurement offers the opportunity for further reduction of costs.	+	In Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated. Typically, an integrated supply team (one or more) is identified through a framework agreement and the team work together to complete the project at below the ceiling cost. In subsequent similar projects within a framework, Cost Led Procurement offers the opportunity for further reduction of costs.

−	The project is offered to suppliers outside the framework if none of the teams are able to deliver the project below the ceiling cost.	+	The project is offered to suppliers outside the framework if none of the existing teams are able to deliver the project below the ceiling cost.

	= Structure =		= Structure =
Line 21:		Line 21:
	The CLP plan involves five phases:		The CLP plan involves five phases:
	*Inception.		*Inception.
−	*Selection of ~~Contractor~~.	+	*Selection of contractor.
−	*Design and ~~Cost Development~~.	+	*Design and cost development.
	*Construction.		*Construction.
	*Operation		*Operation
Line 41:		Line 41:

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
		+	*Framework agreement.
	*Government construction strategy.		*Government construction strategy.
	*Integrated project insurance.		*Integrated project insurance.
−	*~~Integrate~~ supply team.	+	*Integrated supply team.
	*Procurement route.		*Procurement route.
	*Supply chain.		*Supply chain.

Designing Buildings at 12:36, 5 September 2014

2014-09-05T12:36:06Z

← Older revision		Revision as of 12:36, 5 September 2014
Line 1:		Line 1:
−
−
−	~~'''Cost led procurement'''~~

	= Introduction =		= Introduction =

−	The main aims of the ~~[https://www.gov.uk/government/publications/government-construction-strategy~~ Government Construction Strategy] were to ‘''change the relationship between Clients and Industry''’ and achieve a 15-20% reduction in public sector construction costs by 2015. The [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group report 2012] developed three potential new ~~procurement models~~ to help achieve these aims: Cost Led Procurement (CLP), Integrated Project Insurance (IPI) ~~and~~ Two Stage Open Book.	+	The main aims of the Government Construction Strategy were to ‘''change the relationship between Clients and Industry''’ and achieve a 15-20% reduction in public sector construction costs by 2015. The [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group report 2012] developed three potential new strategies to help achieve these aims:
		+	*Cost Led Procurement (CLP).
		+	*Integrated Project Insurance (IPI).
		+	*Two Stage Open Book.

−	All three ~~methods include~~ early contractor involvement, transparency and integration. Along with a reduction in costs, ~~the models~~ are ~~also~~ expected to contribute to a reduction in project risk, improved programme accuracy and an enhanced working relationship between client and the supply chain.	+	All three involve early contractor involvement, transparency and integration. Along with a reduction in costs, they are expected to contribute to a reduction in project risk, improved programme accuracy and an enhanced working relationship between client and the supply chain.

	= Background =		= Background =
Line 13:		Line 13:
	The Cost Led Procurement method is ‘...''intended to allow industry to use its experience and knowledge to develop innovative solutions through leveraging design, materials, subcontracting, direct labour and experience to the advantage of the Public Sector Client...focused on achieving target costs whilst maintaining, if not improving value''’ ([https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cabinet Office, 2014]).		The Cost Led Procurement method is ‘...''intended to allow industry to use its experience and knowledge to develop innovative solutions through leveraging design, materials, subcontracting, direct labour and experience to the advantage of the Public Sector Client...focused on achieving target costs whilst maintaining, if not improving value''’ ([https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cabinet Office, 2014]).

−	With Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated. Typically, an integrated supply team (one or more) is identified through a framework agreement and the team work together to complete the project below the ceiling cost. In subsequent similar projects within a framework, Cost Led Procurement offers the opportunity for further reduction of costs.	+	With Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated. Typically, an integrated supply team (one or more) is identified through a framework agreement and the team work together to complete the project below the ceiling cost. In subsequent similar projects within a framework, Cost Led Procurement offers the opportunity for further reduction of costs.

	The project is offered to suppliers outside the framework if none of the teams are able to deliver the project below the ceiling cost.		The project is offered to suppliers outside the framework if none of the teams are able to deliver the project below the ceiling cost.
Line 26:		Line 26:
	*Operation		*Operation

−	The flow chart from the [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance] outlines the process. <br/>	+	The flow chart from the 2014 Cabinet Office publication, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance] outlines the process.<br/>

−	[[File:Cost let procurement.png]]	+	[[File:Cost let procurement.png\|RTENOTITLE]]

	= '''Trial projects''' =		= '''Trial projects''' =

−	Two trial projects were run using the CLP method: [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/253693/Procurement_Trial_Project_Short_Form_Case_Study_Environment_Agency_Upper_Mole_Project.pdf Upper Mole] and [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/248614/Procurement_Trial_Project_Case_Study_EA_Rye_Harbour_0_2.pdf Rye Harbour]. The Rye Harbour scheme was successful in achieving a 6% saving through reducing the project programme.	+	Two trial projects were run using the CLP method: [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/253693/Procurement_Trial_Project_Short_Form_Case_Study_Environment_Agency_Upper_Mole_Project.pdf Upper Mole] and [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/248614/Procurement_Trial_Project_Case_Study_EA_Rye_Harbour_0_2.pdf Rye Harbour]. The Rye Harbour scheme was successful in achieving a 6% saving through reducing the project programme.
		+
		+	----

	This article contains public sector information licensed under the [https://www.nationalarchives.gov.uk/doc/open-government-licence/version/2/ Open Government Licence v2.0] ref Cabinet Office, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance 2014].		This article contains public sector information licensed under the [https://www.nationalarchives.gov.uk/doc/open-government-licence/version/2/ Open Government Licence v2.0] ref Cabinet Office, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance 2014].
Line 40:		Line 42:
	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
	*Government construction strategy.		*Government construction strategy.
		+	*Integrated project insurance.
		+	*Integrate supply team.
	*Procurement route.		*Procurement route.
		+	*Supply chain.
	*Value for money.		*Value for money.

	=== External references ===		=== External references ===
−
	*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance]		*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance]
	*[https://www.gov.uk/government/publications/government-construction-strategy Government Construction Strategy]		*[https://www.gov.uk/government/publications/government-construction-strategy Government Construction Strategy]

Designing Buildings: Created page with " '''Cost led procurement''' = Introduction = The main aims of the [https://www.gov.uk/government/publications/government-construction-strategy Government Construction Strategy..."

2014-09-05T12:32:45Z

Created page with " '''Cost led procurement''' = Introduction = The main aims of the [https://www.gov.uk/government/publications/government-construction-strategy Government Construction Strategy..."

New page

'''Cost led procurement'''

= Introduction =

The main aims of the [https://www.gov.uk/government/publications/government-construction-strategy Government Construction Strategy] were to ‘''change the relationship between Clients and Industry''’ and achieve a 15-20% reduction in public sector construction costs by 2015. The [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group report 2012] developed three potential new procurement models to help achieve these aims: Cost Led Procurement (CLP), Integrated Project Insurance (IPI) and Two Stage Open Book.

All three methods include early contractor involvement, transparency and integration. Along with a reduction in costs, the models are also expected to contribute to a reduction in project risk, improved programme accuracy and an enhanced working relationship between client and the supply chain.

= Background =

The Cost Led Procurement method is ‘...''intended to allow industry to use its experience and knowledge to develop innovative solutions through leveraging design, materials, subcontracting, direct labour and experience to the advantage of the Public Sector Client...focused on achieving target costs whilst maintaining, if not improving value''’ ([https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cabinet Office, 2014]).

With Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated. Typically, an integrated supply team (one or more) is identified through a framework agreement and the team work together to complete the project below the ceiling cost. In subsequent similar projects within a framework, Cost Led Procurement offers the opportunity for further reduction of costs.

The project is offered to suppliers outside the framework if none of the teams are able to deliver the project below the ceiling cost.

= Structure =

The CLP plan involves five phases:
*Inception.
*Selection of Contractor.
*Design and Cost Development.
*Construction.
*Operation

The flow chart from the [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance] outlines the process. <br/>

[[File:Cost let procurement.png]]

= '''Trial projects''' =

Two trial projects were run using the CLP method: [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/253693/Procurement_Trial_Project_Short_Form_Case_Study_Environment_Agency_Upper_Mole_Project.pdf Upper Mole] and [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/248614/Procurement_Trial_Project_Case_Study_EA_Rye_Harbour_0_2.pdf Rye Harbour]. The Rye Harbour scheme was successful in achieving a 6% saving through reducing the project programme.

This article contains public sector information licensed under the [https://www.nationalarchives.gov.uk/doc/open-government-licence/version/2/ Open Government Licence v2.0] ref Cabinet Office, [https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance 2014].

= '''Find out more''' =

=== Related articles on Designing Buildings Wiki ===
*Government construction strategy.
*Procurement route.
*Value for money.

=== External references ===

*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325012/Cost_Led_Procurement_Guidance.pdf Cost Led Procurement Guidance]
*[https://www.gov.uk/government/publications/government-construction-strategy Government Construction Strategy]
*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/61157/Procurement-and-Lean-Client-Group-Final-Report-v2.pdf Government Construction Task Group Report]
*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325011/New_Models_of_Construction_Procurement_-_Introduction_to_the_Guidance_-_2_July_2014.pdf New Models of Construction Procurement]

[[Category:Policy]]
[[Category:Procurement]]
[[Category:Public_procedures]]