CONSTRUCTION SERVICE

BUSINESS PLAN 2002/2003

CORPORATE PLAN 2002/2005

CONTENTS

Chapter 1 Background and Introduction

Chapter 2 Vision and Strategic Objectives

Chapter 3 Business Strategies – Three Year Outlook

Chapter 4 Key Performance Indicators

Chapter 5 Key Tasks

Annex 1. Staff details by Division

Annex 2. Breakdown of Staff (at 1 April 2002)

Annex 3. Estimated Income and Expenditure

CHAPTER 1 Background and Introduction

Construction Service provides Government Departments, their Agencies and other

public bodies with professional support of an “intelligent client” nature on construction
related matters together with objective advice and, if required, a design and
maintenance service. All work carried out by Construction Service is in full compliance
with statutory requirements and Government policy.

The total expenditure on work involving Construction Service is approximately £100

million annually. Design work is in the region of £75 million, with maintenance and
supplies expenditure approximately £20 million and £5 million respectively.

The Management Board of Construction Service comprises the Chief Executive, Heads
of Advisory and Maintenance Division and New Works Division at Director level, and
an Assistant Director responsible for Corporate Services.

Details and breakdown of Construction Service’s 494 staff is provided in Annexes 1

and 2 respectively. Details of Construction Service’s estimated income and
expenditure for 2002/2003 are given in Annex 3.

The Procurement Review has recommended that a Central Procurement Body be

established to include Construction Service and the Government Purchasing Agency.
The Director of the Central Procurement Body will undertake an Alignment Review to
determine the structure of this new body - it is expected that this will be completed in
early 2003. Until the Alignment Review is completed, the structure of Construction
Service will remain more or less the same. From 1 April 2002, Construction Service will
cease to be an Agency and together with the Government Purchasing Agency will
become a new Directorate within the Department of Finance and Personnel.
Advisory and Maintenance Division

The Advisory Sub-division provides unbiased, confidential, multi-disciplinary

professional and technical advice and assistance on construction related issues
including scoping and feasibility studies, procurement, project management and the
appointment and briefing of consultants. Specialist services available include Health
and Safety, Building Regulations, fire safety, supplies and a furniture, furnishings and
interior design service.

The Maintenance Sub-division provides a property management and maintenance

service on Government properties and other specialist services such as energy
conservation and home protection.

New Works Division

New Works Division provides the full range of supporting services associated with the
design and construction of both major and minor building and civil engineering projects.
It provides a project management and design service to a wide range of public sector
customers. Comprehensive advisory services in relation to all professional disciplines
are also offered to clients especially to complement their “intelligent client” function.
Work undertaken can range in scope from the alteration or extension of a facility
costing a few thousand pounds, to major new build with costs in the millions. Contracts
Branch provides a full contracts service including advice on policy and procedures.

Corporate Services Division

Corporate Services Division provides a range of supporting services including

personnel, finance, information systems, communications, marketing, accommodation
and general administration. Discussions with the Core on the impact of deagentisation
revealed that only a limited number of Corporate Services’ functions will be taken on by
them.

Construction Industry Initiatives

Construction Service provides technical input and secretarial support to the

Construction Industry Forum for Northern Ireland, the Government Construction
Client’s Group and their task and sub-groups. The resources needed to continue this
support have increased and will continue to do so as the Forum seeks to promote its
ideas and as the Client’s Group implements the Achieving Excellence Initiative in
Northern Ireland. Construction Service has also been involved in helping to establish
the Rethinking Construction Centre for Northern Ireland and will be involved in its
management and activities for at least the next three years. It is anticipated that there
will be a role for Construction Service in implementing other construction initiatives
such as those flowing from the Strategic Forum, recently set up by the Deputy Prime
Minister and from the Office of Government Commerce as a follow up to its Achieving
Excellence Initiative.

Quality

Advisory and Maintenance Division and New Works Division are Quality Assured in
compliance with ISO 9001, while Contracts Branch is Quality Assured to ISO 9002.
The drilling operation and soil testing service of the Geotechnical Section are also
subject to Quality Accreditation. In effect, all the operational Divisions of Construction
Service have independent third party Quality Assurance. During the course of the year
Construction Service aims to achieve QA accreditation to ISO 2000 throughout the
entire organisation.

Equality

In the course of its business, Construction Service interacts with Departments,

contractors and suppliers rather that with the public at large. Procurement is governed
by contract policy, which is based on HMT guidelines, and by Directives from the
European Commission. As the role of Construction Service evolves, with the outcome
of the implementation of the Procurement Review, it will take fully into account Section
75 responsibilities. Construction Service subscribes to, and operates within, the
Equality Policy established by the Department of Finance and Personnel.
CHAPTER 2 Vision and Strategic Objectives

The Vision of the Department of Finance and Personnel is:-

“ to be a centre of excellence in all areas of our business,

dedicated to continuous improvement in the quality of our
work.”

The Aim of the Department of Finance and Personnel is:-

“ to help ministers secure the most appropriate and effective

use of resources and services for the benefit of the
community.”

The Strategic Objective of the Department of Finance and Personnel that relates to
Construction Service is as follows:-

“ to support and enhance the business performance of Northern

Ireland Departments, their Agencies and the wider public
sector.”

The Vision of Construction Service is:-

“ to be a centre of excellence on construction related matters

dedicated to continuous improvement in the quality of our
work.”
The Strategic Objective of Construction Service supporting this vision is:-

“ to provide professional support to the public sector on

construction related matters.”
CHAPTER 3 Business Strategies – Three Year Outlook

Impact on Construction Service of the Procurement Review

The strategic direction of Construction Service will have to be reviewed as a result of

the Alignment Review. The overall functions of the Construction Service will have to
be looked at as part of the Alignment Review and the strategic direction altered
accordingly. The service provision business strategy does, however make reference to
the greater emphasis being placed on the advisory functions. Discussions with the
Core on the impact of deagentisation on Construction Service’s corporate activities
revealed that only a limited number of these activities will be taken on by the Core – as
a result, the structure of Corporate Services Division will remain more or less as it is
until the Alignment Review is complete.

Service Provision

Construction Service will continue to be a centre of excellence on construction related

issues so that public spending is well directed. Its activities will be directed
increasingly to advisory and customer support services which will necessitate a degree
of restructuring to successfully manage the delivery of these services. Construction
Service will continue to provide high quality, best value services within the climate of
changing customer requirements, new regulations and procurement initiatives.

Advisory and Maintenance Division

Over the next three years the Advisory and Maintenance Division will continue to
provide a high quality and competitive service. The Advisory Sub-division will
contribute to the Government’s Policy on sustainability and energy conservation
through the programme of Building Research Establishment Environmental
Assessment Method ( BREEAM ) assessments of the Northern Ireland Civil Service (
NICS ) estate. A programme of fire risk assessments will be implemented to enable
Construction Service’s customers to comply with the requirements of the Fire
Precautions (Workplace) Regulations (NI) which came into effect in December 2001.

A review of and amendments to Building Regulations will be progressed and

implemented in the context of new Assembly procedures. Technical and secretarial
support will continue to be provided to the Government Construction Client Group, the
Construction Industry Forum for Northern Ireland and to their Sub-Committees and
Task Groups.

The Maintenance Sub-division will continue to improve communications between

Construction Service’s clients and staff by reviewing the service provided by the
Maintenance Helpdesk with a view to possible expansion into other areas of
Construction Service Business. Disability Discrimination Act surveys have identified
work to be carried out so that reasonable access is provided for the disabled and a
plan is underway to implement this work in association with client budget constraints.
To assist our customers in their financial planning for the years ahead, a Planned
Maintenance Annual Estimate and Asset Register will be provided. The current
property management system will be upgraded and re-launched with an improved
database and managerial function versatility in recognition of the importance of
providing Planned Preventative Maintenance Estimates.

New Works Division

New Works Division will continue to refocus its activities to reflect the increase in
advisory and client support services. While traditional design services will remain a
significant output of the Division, they will be supplemented, where appropriate, by
alternative and innovative procurement strategies. In the event of peaks in demand
which in-house resources may not be able to absorb, construction consultants will be
appointed and there will be an increase in the use of Design and Build contracts.
The Division will continue to provide professional services to a broad range of public
sector customers. Examples of projects and services on which staff will be engaged
include:-

Office refurbishments

New laboratories

Public buildings

Geotechnical surveys and advice

Maritime developments

Training and educational facilities

Landscape advice

Quality

The aim of Construction Service’s Quality Strategy is to continuously improve the

service it provides to its customers. There are various strands to the strategy including
Quality Assurance, the Business Excellence Model and Investors in People. Advisory
and Maintenance Division, New Works Division and Contracts Branch will maintain
Quality Assurance to the ISO 9001 Series. The drilling and soil testing service of the
Geotechnical Section will maintain its Quality Assurance and accreditation. Quality
Assurance across all the Divisions will be integrated and accreditation sought which
will include Corporate Services Division under the new ISO 2000 standard.

Efficiency

The continuing development of the new Management Information Systems (NewMIS)

and its integration with the existing Quality Assurance Procedures and Construction
Design Management (CDM) regulations will generate further efficiencies. Potential
efficiencies in the handling of work orders will be further realised through the
development of the Work Order Processing System ( WOPS ). Increases in the hourly
charge out rate will be controlled through management of Construction Service’s
cashflow and overheads by implementing an improved Credit Control Policy and by
further development of a budgeting system to manage expenditure.

In the event of having to vacate its premises due to the proposed redevelopment of
Victoria Square, Construction Service will aim to obtain premises that will house all its
staff in one location and will strive to ensure that any move will not incur any additional
costs. The accommodation needs of the Central Procurement Body will be factored
into this.

Human Resources

Manpower planning and the achievement of IiP form the two main strands of
Construction Service’s Human Resource Strategy. A formal Manpower Plan has been
created and will be updated every six months to ensure that Construction Service
retains the correct balance of staff in the various disciplines and can continue to
provide a comprehensive professional service. The second main strand of the strategy
is to maintain IiP reaccreditation so that the skills and talents of staff will be maximised
through training and development and that we have a workforce capable of providing
the level of service expected by our customers. The introduction of new technology will
result in the provision of training to all staff in its use and application to their business
areas.

Finance

Construction Service will implement the Resource Accounting and Budgeting initiative
in line with the framework established by DFP. The Annual Reports and Financial
Statements which are audited by the NIAO will embrace all the developments in this
area. The business decision-making capabilities of Business Managers will be
improved through the provision of improved Financial Management Information. This
will be achieved through the development of a suite of reports which will utilise
NewMIS. The billing information provided to customers will continue to be developed
with a view to improving customer relations and cashflow and minimising delays in the
payment of fees. This will be achieved through the development of the invoicing
system and operated by appointed Customer Account Managers in conjunction with
our customers.

Information Systems

The new IS Strategy due for completion in 2002 will be implemented in line with the
DFP IS Strategy. E-Business is expected to be a major driver for this strategy. In
particular, the development of our Work Order and Cost Charging systems will lead to
faster, more reliable and more efficient interaction with customers and contractors.

Construction Industry Initiatives

Construction Service will continue to assist the Department to fulfil its role of sponsor of
the construction industry and to provide technical input and secretarial support to the
Construction Industry Forum for Northern Ireland and the Government Construction
Industry Group. The Northern Ireland version of the Achieving Excellence Initiative has
a three year implementation programme and Construction Service will provide support
to Departments and the wider public sector to assist them to achieve the targets and
benefits of the Initiative.

The implementation of the recommendations of the Procurement Review will increase

Construction Service’s role in providing construction procurement advice and support
which will lead to the creation of a monitoring role.

The Rethinking Construction Centre for Northern Ireland will be based at the University
of Ulster at Jordanstown and will assume responsibility in Northern Ireland for a
number of construction industry initiatives previously promoted by the Movement For
Innovation, the Client Best Practice Programme, the Construction Productivity
Programme and several other special interest groups. Construction Service has
membership of and provides the secretariat to the Centre’s Management Board and
will continue to provide support to the activities of the Centre.

Construction Service will maintain close contact with colleagues in GB Departments

and in other devolved administrations to enable us to assess any new initiatives and to
advise on their implementation in Northern Ireland.
CHAPTER 4 Key Performance Indicators 2002/2003

QUALITY OF SERVICE
Indicator Target 2002/2003 Target 2001/2002

1. Adherence to Service Level Achieve 92% compliance Achieve 92% compliance

Agreement requirements. with SLA requirements. with SLA requirements.

2. Customers’ assessments on Obtain 95% customer Obtain 95% customer

projects work satisfaction rate. satisfaction rate.

3. Response time from request to 85% within 7 days. 85% within 7 days.
order placement for 95% within 14 days. 95% within 14 days.
maintenance work (reactive
maintenance)

4. Response time from request to 85% within 7 days. 85% within 7 days.
order placement for supplies 95% within 14 days. 95% within 14 days.
work.

5. Response time to advisory 90% within 6 weeks. 90% within 6 weeks.

enquiries. 97% within 10 weeks. 97% within 10 weeks.

EFFICIENCY
6. Actual costs as a percentage of This target is not published This target is not published
approved target costs for project for reasons of commercial for reasons of commercial
work. confidentiality. confidentiality.

7. Costs as a percentage of spend This target is not published This target is not published
for maintenance work. for reasons of commercial for reasons of commercial
confidentiality. confidentiality.

8. Costs as a percentage of spend This target is not published This target is not published
for supplies work. for reasons of commercial for reasons of commercial
confidentiality. confidentiality.

FINANCIAL
9 Level of financial and budgetary Maintain expenditure Maintain expenditure within
control achieved. within cash limits and to cash limits and to approved
approved budgetary plans. budgetary plans.

10. Full cost recovery of 100% +/- 2% 100% +/- 2%

Construction Service operations.
CHAPTER 5 Key Tasks - 2002/2003

Key Task Target

1. Conduct workload analysis. Monthly.

2. Review efficiency of workforce. Quarterly.

3. Maintain Quality Assurance accreditation. Pass periodic inspections.

4. Strengthen systems and procedures. Various targets in Divisional

Business Plans.

5. Contribute towards the alignment review. June 2002 - January 2003

6. First amendment to the Building Regulations ( NI ) Completion of consultation

2000 to include: stage –March 2003

Part A: Interpretation and General

Part C: Preparation of Site and Resistance

To Moisture

Part E: Fire Safety

Part F: Conservation of Fuel and Power

Amend the Building ( Prescribed Fees )

Regulations ( NI ) 1997

7. Undertake Fire Risk Assessments 100% of Annual Inspections

50% of 2 yearly Inspections

25% of 4 yearly Inspections

12% of 8 yearly Inspections

8. Examine current practice with a view to November 2002

establishing steps for change in line with
“Rethinking Construction”.

9. Contractor Performance Appraisal by M4I Survey Complete in line with MTC renewal
Project. - April 2003
 Key Task Target

10. DDA Audits

Properties to be surveyed to assess compliance All ACD properties to be proposed

with current legislation reports/costing issued to and completed by March 2003.
clients. Other clients to agree programme.

11. Centralise Construction Service Quality Assurance June 2002

Management and co-ordination to ISO 2000

12. Contribute as required to the Task Force Groups Ongoing

set up by the Construction Industry Forum.

13. Explore the potential of partnering arrangements July 2002

with contractors and consultants.

14. Increase the use of Design and Build Contracts. 5 D&B Contracts

15. Expand project management group. July 2002

16. Train key staff for wider advisory activities. December 2002

17. Train key staff in risk management, value December 2002

engineering and whole life costing processes.

18. Conduct a Business Excellence Model self- October 2002

assessment.

19. Continue to strengthen IiP procedures. Ongoing

20. Produce Annual Report and Accounts. Produce Accounts

May 2002

Lay Report and Accounts before

The NI Assembly July 2002

21. Develop the new IS Strategy June 2002

22. Implement Construction Service Accommodation Target dependent on the outcome

Strategy. of the Economic Appraisal

23. Update the Manpower Plan April 2002/November 2002

 ANNEX 1

STAFF DETAILS BY DIVISION (AT 1 APRIL 2002)

P&T ADMIN SUPPORT INDUSTRIAL TOTAL

CX 2 2 - - 4

New Works 165 30 - 4 199

Advisory and 160 43 - 28 231

Maintenance

Corporate Services 3 42 15 - 60

TOTAL 330 117 15 32 494

 ANNEX 2

BREAKDOWN OF STAFF (AT 1 APRIL 2002)

CX NW A&M CS TOTAL

Architects 2 44 46 2 94
Civil Engineers - 33 2 - 35
Landscape Architects - 11 - - 11
Mechanical and Electrical - 30 31 - 61
Quantity Surveyors - 13 31 - 44
Structural Engineers - 14 8 1 23
Fire Officers - - 9 - 9
Health and Safety Officers - - 3 - 3
Building Surveyors - - 7 - 7
Maintenance Technicians - - 9 - 9
Clerks of Works - 14 - - 14
Estates Superintendent - - 2 - 2
Supplies Officers - - 12 - 12
Materials Testing - 1 - - 1
Drillers (Non-industrial) - 3 - - 3
Technical Grade 1 - 2 - - 2
Administration 2 30 43 42 117
Support Grades - - - 15 15
Drillers (Industrial) - 4 - - 4
Supplies (Industrial) - - 12 - 12
Stormont Ground Staff - - - - -
Fire Mechanics - - 3 - 3
Electricians - - 5 - 5
Senior Craftsmen - - 2 - 2
Plumbers - - 2 - 2
Plant Attendants - - 3 - 3
Labourers - - 1 - 1

TOTAL 4 199 231 60 494

 ANNEX 3

ESTIMATED INCOME AND EXPENDITURE 2002/2003

Expenditure £’000

Salaries and Wages 15,729

Administration Costs 1,470

Materials 577

Accommodation Costs 2,220

Capital Costs 358

External Support 1,200

Insurance 110

Other non DRC 67

TOTAL 21,731

Income

Notional Income 9,500

Hard Charges 12,231

TOTAL 21,731