Business profile
A Team Solution
What is social value? Generally defined as a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits to society and the economy, while minimising damage to the environment. An emphasis on social value should shift the focus from the bottom-line price or cost of a service towards the overall value of the outcomes delivered. How a service is delivered is taken into account along with what is delivered.
reduction in the closure duration of the Northern line to 17 weeks. The figure equates to a £35,884,000 (52.9 per cent) saving in social disbenefit.
Dragados also offered a £30,850,000
(15.6 per cent) increase in induced revenue throughout the life of the project to £228,909,000; a more effective step- free access solution direct from street to platform on both the Northern and DLR lines, and a more efficient fire and evacuation strategy throughout the station.
Bank saw first use of ICE process The Bank station project tender process marked the first use of the ICE model, which was used to pre-qualify four bidding
The maths for Bank • At least some of the exceptional value of the Dragados scheme came from an increase of 1.1:1 (45.1 per cent) in the B:CR from 2.4:1 to 3.5:1
• The project was modelled and designed for 2026 +31 per cent capacity (equivalent to 2080 capacities)
• The bids were valued using the equation:V=Q/P where Q is innovation and technical score and P is notional whole life price.
Dragados had the winning quality score of 72.5, with the second bidder scoring 56.3 points. According to Danny Duggan, the effective value of a quality point in the evaluation was worth about £10 million, which incentivised the drive for bidders’ innovation.
construction groups and develop the invitation to tender. Instead of running a competitive tender using its fixed design, the LU project team instead issued a basic set of requirements based on relieving congestion, providing step-free access and improving fire evacuation times for those areas. It involved a Client Base Case design being used by the bidders as a point of reference, as well as providing the option to purchase innovation from unsuccessful bidders. A spokesman for London Underground
said: ‘Overall, the Dragados scheme exceeded expectations in terms of value. It provided a more effective product, increased the benefits within the business case, and provided a more efficient method, delivering it faster and cheaper compared to the Client Base Case.’
ICE aids bidders in preparation Duggan described the ICE process as ‘very personally rewarding’. ‘I’ve learned a great deal about the client business case, social benefit and social disbenefit in the last year. I now understand what, and how it is measured and the true value that construction capital expenditure produces for our client.’ Duggan hopes the process will continue
to form the basis of bids for transport infrastructure projects as it allowed bidders to receive all the information required to produce a quality product and understand its value as it unfolded. ‘I am sure we all believe the early
involvement of designers, tier 1 contractors and most importantly tier 2 specialists to pool intellectual property is the way to gain maximum efficiency from the construction process. ‘This, in my experience is the first time
a competitive process had allowed that and the evidence produced, a 50 per cent improvement in the client’s benefit:cost ratio, verifies the potential improvement possible.
‘I hope the next iteration of the ICE
process gains traction. It is good for a contractor to be trusted to deliver efficient design solutions, but also it was a challenging and fun experience for the whole Dragados bid team,’ he added.
Further expansion of the UK management team
Dragados’s construction team is predominantly populated by UK expertise, and although URS is a global company, with a US-based HQ, its 2010 acquisition of UK-centric design and engineering consultancy Scott Wilson Group, boosts its UK workforce credentials. Javier Teulón, managing director
Dragados England and Ireland, said: ‘We plan to further expand the UK management team by recruiting locally and to expand our well-established UK supply chain. The ICE process London Underground has brought to the market has allowed Dragados to show the innovation and capabilities we can bring to solving client problems and delivering value driven solutions. We look forward to competing for future major projects using the next iteration of this evolving procurement process.’
Dragados’s future plans
The company is currently bidding for the Thames Tideway Tunnel project and, based on its experience with high speed rail within Spain and worldwide, Dragados is keen to be involved in HS2. As ICE 2 approaches and London Underground starts considering who will undertake planned station upgrades at Holborn, Camden, Paddington link, Elephant & Castle and Old Street, Duggan said the firm is keen to build on its success and become the preferred partner for the next phase of London’s transport infrastructure overhaul.
Tel:020 765 10900 • Email:
acatley@dragados.co.uk October 2013 Page 101
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