OGC decision point 2

The Office of Government Commerce (OGC) has now been absorbed into the Efficiency and Reform Group (ERG) within the Cabinet Office.

When it existed, the OGC produced a great deal of guidance about best practice in procurement and project management. This OGC guidance has now been archived, however, it is still cited in the new Government Construction Strategy and the revised Common Minimum Standards (to become the 'Construction Standards') and links are still provided from government websites such as the Major Projects Authority. The OGC gateway review process still provides one of the best and most comprehensive sets of guidance for public projects. It is for this reason that the project plan for public projects within Designing Buildings Wiki follows the OGC gateway review process. See Public project: outline work plan.

The procurement routes preferred by the Government Construction Strategy and described by the OGC gateway review process are private finance initiative (PFI), prime contracting and design and build (see OGC Achieving Excellence Guide 6:Procurement and contract strategies). The Government Construction Strategy states that traditional procurement routes that separate design from construction should not be used unless it can be demonstrated that they offer better value for money.

The three preferred routes involve appointing a single integrated supply team (including designers, contractors, suppliers and perhaps facilities managers) after the project brief has been prepared, before design commences. This means that the main decision to invest (i.e. to appoint the integrated supply team), takes place before any designs have been prepared.

The OGC Gateway Review process offers a structure for projects following these procurement routes, based around a series of independent peer reviews carried out at key stages to verify that projects should be allowed to progress to the next stage.

These peer reviews, or 'gateway reviews' are commissioned on a confidential basis by the Senior Responsible Owner:

• OGC gateway review 0: strategic assessment.
• OGC gateway review 1: business justification
• OGC gateway review 2: delivery strategy (or procurement strategy)
• OGC gateway review 3: investment decision
• OGC gateway review 4: readiness for service
• OGC gateway review 5: operations review & benefits realisation (or benefits evaluation)

There are also two additional decision points specific to building projects:

• OGC decision point 1: outline design.
• OGC decision point 2: detailed design.

In practice, some of the design work leading up to these decision points is likely to be carried out during the tender process (or bidding process on PFI projects).

According to OGC, decision point 2 is the stage...

...when the team must have reached time and cost certainty against the required quality. At this point there is a commitment to build.

The tasks that should be undertaken prior to decision point 2: detailed design are:

• Approve outline design; no further client changes.
• Produce construction phase Health & Safety Plan. (NB OGC guidance has not been updated to reflect changes to the CDM Regulations)
• Check detailed design drawings, materials and equipment against specification; accept or request re-submission.
• Identify any long-lead items.
• Ensure planning consent and other statutory approvals (Building and Fire Regulations) are in place before construction.
• Review detailed design and for project to proceed to construction.
• Consider affordability, including provision for spend on specified risks.
• Commit funds for construction.

ref OGC Achieving Excellence Guide 3 - Project Procurement Lifecycle P15.

This means that whilst OGC call decision point 2 'detailed design' in practice it involves a commitment to construct and so it is generally considered to come before mobilisation (in this work plan, at the end of work stage: Public project: production information).

For a detailed description of the sequence of tasks necessary on public projects, see the free work plan available from Designing Buildings Wiki: Public project: outline work plan.

[edit] Related articles on Designing Buildings Wiki

• Change control procedures.
• Common Minimum Standards.
• Cost control
• Design and build.
• Gateways.
• Government Construction Strategy.
• OGC.
• OGC decision point 1: outline design.
• OGC gateway review 3: investment decision.
• Output based specification.
• Private Finance Initiative.
• Prime contract.
• Public procurement.
• Public project: business justification.
• Major Projects Authority.
• Value management.

[edit] External references

• OGC: What is OGC gateway review?
• OGC: Achieving Excellence Guide 3 - Project Procurement Lifecycle.
• OGC: Gateway Review process.
• OGC Achieving Excellence Guide 6: Procurement and contract strategies