Sellafield’s new PPP approach – a perspective from BECBC Chair, Ivan Baldwin

Posted by Hazel Duhy on in Sector Group News, Construction, Manufacturing and Nuclear New Build, Worldwide News, UK News, Cluster News, Member News.

Sellafield’s new PPP approach – a perspective from BECBC Chair, Ivan Baldwin

BECBC Chairman, Ivan Baldwin, was amongst several BECBC member company representatives at the launch of Sellafield’s new PPP approach. 

His perspective written for Linked In is posted here, along with links to the Sellafield Ltd website and the Prior Information Notice:

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On Friday I attended the Sellafield Ltd launch of their competition for a 20-year framework of major project delivery, known as the Programme and Project Partner (PPP). The most senior stakeholders at Sellafield, Paul Foster (CEO), Martin Chown (Supply Chain Director) and Steve Livingstone (Delivery Director) set out their long-term strategy as one which is ahead of its time and is likely to be the future model for Major Project public procurement.

The multi-lot, comprehensive engineering and construction services framework has been hotly anticipated by the supply chain not only because of the stability offered by its unprecedented duration, but also due to its significant value, estimated to be between £3B - £6B.

There is no getting away from the fact that this is a very ambitious strategy for both project delivery and for the much needed longer term transformation of the site. By moving away from the single point of contact Engineer Procure Construct (EPC) Prime Contractor approach, PPP introduces a multi-stakeholder delivery environment at the prime contractor level. This helps to engage the brightest and the best as demanded by Steve Livingstone but also creates a more challenging stakeholder environment to manage.

In my position as Chairman of Britain’s Energy Coast Business Cluster (BECBC) I am 100% behind the ambition of PPP. Many of our 300 + member companies are key suppliers to the site and therefore will be vital to the success of the mission. It is clear to me that a PPP delivery model which includes four partners in lead positions will require framework mechanisms that harmonise the goals of the projects with the commercial needs of the delivery partners so that collaboration is not thwarted and all are able to succeed.

If PPP is to be truly successful then this harmonisation of outcomes and collaborative approach needs to be extended throughout the supply chain. In my experience of traditional project delivery models it is smaller businesses that often find themselves on the critical path of delivery at the mercy of larger organisations wielding punitive measures due to models which require them to protect their own risk.

The results can often be financially damaging to the smaller business as well as stifling their confidence to invest in capability and innovation. I am keen to support PPP in becoming a catalyst for a new way of working which benefits all businesses in a project, no matter at which tier they sit.

I believe that it is the responsibility of BECBC to work closely with Sellafield Ltd and its partners in the delivery of PPP to achieve true collaboration.

Collaboration is a word that unfortunately has become clichéd in our industry but I believe that this is only because of how important it is to our success and the fact that to date we haven’t managed to get it right.

In PPP relationship management will be vital.  We will need to stay close as this type of transformation will not happen without a few bumps in the road on the journey.  With this in mind, we need Triple H relationships to have a successful Triple P.

Triple H would need to be:

  • Holistic – to achieve ‘one-voice’ and alignment in delivery of the One Sellafield mission
  • Honest – both client and supply chain need the freedom to have honest and difficult conversations
  • Hardy – an ambitious and demanding mission delivered over 20 years will require significant resilience.

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There’s a news piece about the new project delivery model on the Sellafield website.

And a connection to the Prior Information Notice there too.