Value for money key with Olympics work

ODA opts for whole-life costing in its procurement policy and encourages online trading.

The Olympic Delivery Authority (ODA) is opting for certainty over cheapness in its draft procurement policy, which has just been released for consultation.

It specifies that contracts will be let on the basis of value for money and whole-life costing and it promises to bear the cost of insuring site-wide insurance, other than employer liability and professional indemnity.

Contracts will mostly (but not exclusively) be let under NEC3, using the partnering approach to break down the venues and infrastructure into contract packages for procurement. Additional clauses through the Z clause provisions of NEC3 will be implemented covering environmental, sustainability and other social requirements. A dispute resolution board is being set up as part of the adjudication requirements under NEC3. The ODA will use framework agreements and dynamic purchasing systems to shorten the delivery timetable and electronic trading will be encouraged, although there is no indication that e-bidding will be used to slash prices.

The ODA will adopt the general principles outlined in the strategic forum's Construction Commitments: Olympics 2012.

Collateral warranties will be required. However, on the key area of risk management, it promises to use best practice guidelines from the Office of Government Commerce to ensure that the risk is borne by those most able to bear it.

The ODA says it will not impose bonds or retentions wholescale but will review on a case-by-case basis. It has also promised to behave as an intelligent client, discussing openly all the elements of the business requirements so as to 'increase the likelihood of realistic bids and deliverable solutions'.

[Contract Journal, 26 July 2006, p. 2]