PPP Project - Timeline

The PPP process nationally is managed on behalf of the Scottish Government by the Financial Partnerships Unit.  There are a number of clearly identifiable stages in the process, and experience over many years has confirmed the normal duration of each of these stages.  Each stage is subject to a key stage review, which is essentially a self-check so that the Council can confirm that it has done all the work necessary to complete one stage and move on to another.  These reviews are agreed with the Scottish Futures Trust.

The various stages in the process, and the actual dates for our project, are detailed below.

Outline Business Case

22 May 2008 complete

Preparation of the business case for the project and seeking Government support.  This stage was prolonged until the Council finally resolved the scope of the project.  

Pre-OJEU key stage review

27 June 2008 complete

1^st key stage review, before the Council is able to advertise the project to the market

OJEU

30 June 2008

Advertise the project in the Official Journal of the European Union, to seek applications from companies who are interested in bidding for the work.  Those responding are asked to complete a questionnaire to help the Council assess their ability to carry out the work if appointed.

Shortlist bidders

Council approval 17 September 2008

Evaluate the questionnaires returned and compile a shortlist of bidders who are considered to have the financial and technical resources to bid for and perform the work required.

Pre-ITPD key stage review

3 October 2008 complete

2nd key stage review, to confirm that the Council is ready to issue tender documentation to shortlisted bidders

ITPD

3 October 2008

Issue of the Invitation To Participate in Dialogue.  The documents are in 4 volumes: Volume 1 contains the instructions for tendering; Volume 2 details the technical specification of the facilities (buildings) to be provided; Volume 3 details the services to be performed over the 30 year life of the contract (maintenance, cleaning, etc); and Volume 4 describes the terms and conditions of the Contract and the remedies if services are not performed as required.

Competitive Dialogue

October 2008 to October 2009

A progressive series of meetings held with representatives of each bidder team, during the course of which the bidder develops their proposed designs and service and operational proposals for each school, and can take soundings from the Council’s representatives along the way to ensure that the proposals are generally meeting the requirements of the specification and the aspirations of the community.  Each bidder meets separately with the project team at these meetings and the discussion at the meetings is kept confidential so that each bidder is able to develop their own proposals independently.

The series of meetings was arranged in stages with each bidder expected to have reached predetermined milestones by the end of each stage.   The Council evaluated bidders at each stage and provided them with feedback on progress.

Pre-Preferred Bidder key stage review

24 September 2009 complete

The 3^rd key stage review asks the Council to confirm that all material issues have been resolved and that the Council is ready to appoint a Preferred Bidder

Preferred Bidder

17 November 2009

The appointment of the Preferred Bidder is the final stage in the competitive dialogue process.  Planning approvals are sought for the designs for the schools, terms and conditions of contract are confirmed, and the many agreements, warranties and contracts are drawn up ready for signature at the formal award of contract, often called "financial close".

Pre-Financial Close key stage review

3 June 2010

The 4^th and final key stage review checks that the Council has considered everything in concluding the agreement with the Preferred Bidder, that the Council has made proper arrangements, including appointing a team, to manage the contract during construction and thereafter for the 30 year operations phase.  This includes monitoring contract performance, checking and certifying monthly payments to the contractor including any applicable deductions for performance failures, and advising on and procuring any required changes to the services over time.  The review also checks that the project meets the financial objectives and delivers value for money for the Council.

Standstill Period

begun 3 June 2010

There is a mandatory 10 day standstill period before Financial Close, to allow any unsuccessful bidder to raise any concerns.  

Financial Close

22 June 2010

This is the process whereby the interest rate is arranged in the money markets to fund the project, and all of the documentation, agreements, drawings and schedules are signed by all of the parties to the principal contract and all of the subordinate contracts. 

There is a mandatory 10 day standstill period before Financial Close, to allow any unsuccessful bidder to raise any concerns.

Construction Stage

Elgin - commenced 22 June 2010

Keith - commenced 5 July 2010

The sites are handed over to the contractor and the new schools are constructed, and old schools demolished, and landscaping and ancillary works are completed.  Schools will be opened for staff and pupils on the agreed Service Availability Date, although demolition of redundant buildings and completion of landscaping including playing fields will continue until all works are complete.  The Council will only commence paying the annual service charge on the agreed service availability date.

Council staff transferring to the contractor under TUPE will transfer over on the Service Availability Date.

Operational Stage

The operational stage commences with the opening of the schools, and will continue for the 30 year term of the contract.  The contractor is responsible for the security of the building, the cleaning, maintenance and repair of the building, the upkeep of the grounds and the removal of waste.  He is also responsible for maintaining the temperature and environmental conditions in the building to the required standards.  The Council’s contract monitoring team will carry out checks to ensure that the correct standards are achieved.

Shortly before the end of the contract period, the contractor must inspect the building and carry out any maintenance required so the schools are in good condition when the buildings are handed back to the Council at the end of the contract.