PAGABO is a specialist framework organisation building and managing modern, innovative framework agreements for a range of UK clients. As a preferred supplier to PAGABO, AM Bid takes a deep dive into what PAGABO offers and their views on various topical issues in the industry.
PAGABO currently have nine framework agreements (focusing on mainly construction, built environment, facilities management, catering, furniture solutions, utilities and IT) and a Dynamic Purchasing System (DPS). Such offerings allow PAGABO to provide complete flexibility in how contracts are awarded – either through direct towards with preferred contractor via DPS (based on robust business cases) or through further competition with a selected suppliers via their frameworks.
PAGABO frameworks include a variety of levels and bands to support buyers, including:
o Small works – aimed at jobs up to £1 million
o Medium works – a UK wide framework, involving 46 national contractors split across several value bands up to £10 million. This level is aimed predominated at smaller suppliers.
o Major works – a UK wide framework, involving 27 contractors split across three value bands – suitable for large projects £5 million and above
The following gives a flavour of the frameworks they offer:
Refit and refurbish framework – connecting clients with 28 highly qualified contractors for all refurb refit projects, with five value bands. This is aimed at buyers with budgets over £250k.
Total carpark solutions – a unique industry first product, this UK wide framework provides flexibility and comparative choice between the UK biggest household names for carpark design, building, fund and operate
Professional services framework – for clients to procure the necessary consultants for their requirements
DPS dynamic purchasing systems and consultancy services
PAGABO uses DPS purchasing systems for direct award small works up to £1 million. The system is compliant with EU regulations and is primarily used by buyers for:
speed – it is quicker to drive procurement through DPS than traditional tendering and can be used for urgent projects;
localism – it is used to engage with very local / small suppliers to match buyers’ localism agendas; and
targeting and streamlining – buyers can encourage suppliers towards joining the DPS, who do not want to engage in full frameworks with a large amount of requirements.
PAGABO also provide a procurement consultancy service to support clients with end-to-end support on their procurement projects. Their services include project feasibility assessments, procurement advice, growth, early contractor engagement, document preparation, tender process management, as well as tender evaluation, facilitation, supplier onboarding, and supplier relationship management.
PAGABO are social value champions and procuring for value is a central ambition for their industry, with it being built in and tracked regularly within their frameworks. So far, they have enabled £2.8 billion of social value return on investment from all the clients who use their frameworks. PAGABO understands that government agencies will be closely monitoring social value outputs in the future and encourage their clients, public sector and the as a whole have the right tools in place to deliver tangible, additional social impact.
PAGABO understands that there are major futures challenges facing the construction industry and work towards having five themes included within their frameworks:
• Skills and learning;
• Legal and fiscal issues;
• Innovation in construction;
• Environmental impact, and
• Health and wellbeing in the workplace
Effects of Covid
Covid has had many important implications for the procurement sector including:
Suspension of contracts – the initial lockdown saw many contracts suspended or not released, especially from local authorities – who focused on the virus from a frontline perspective. This left many firms uncertain of their future and how to respond.
Stock and costs – Despite all the challenges Covid has presented, the construction sector has responded very positively and was worked well to get back safely onsite. However, with rising costs and availability of materials, construction firms must proactively prepare stock for potential future Covid impacts and materials for future works – especially as many projects are now being launched (including big infrastructure projects such as HS2).
Meet the buyer events and conferences – Over the course of the pandemic, traditional large scale meet the buyer events were cancelled with many activities moving online, hosted through different platforms such as Zoom, Microsoft Teams etc. However, since Covid restrictions were relaxed, more face-to-face meetings are taking place – with the important advancement of having hybrid conferences with online events held in combination with physical meetings.
SME bidders and frameworks
Whilst the involvement of SMEs is key for the UK economy and government, sometimes bidders may be reluctant to bid on various frameworks due to the effort and costs involved, coupled with the perception that, despite their hard work, buyers will pick always choose their favourites supplier – no matter what they do.
With 70% of PAGABO’s suppliers being SMEs, PAGABO has tackled such concerns by ensuring all frameworks are fair, designed properly and diligently to ensure SMEs can receive equal bidding opportunities. Whilst there are direct award opportunities with PAGABO, the main frameworks are designed with competitive tension in mind to remove bias. A number of ways this has been achieved are by providing:
1) medium works frameworks – designed so the bigger organisation do not dominate the market;
2) accurate framework data to suppliers up to 6 months before the release of projects, so prospective suppliers can accurately interpret the specification and provide competitive pricing; and
3) providing balanced pipelines to help mitigate the methods used by suppliers to deal with volatility and demand.
Focus on mental health
Suicide rates and mental illness in the construction sector are generally higher than the population as a whole, specifically affecting young men who face job uncertainty, tight deadlines and financial pressures. PAGABO has launched a charitable foundation to raise awareness of mental health in the construction industry, and also to raise funds in in innovative ways. The foundation is comprised of 12 trustees, volunteers from their framework providers, who are mental health specialists, or advocates, and also influential leaders in the construction.
PAGABO’s vision for the next 3-5 years
PAGABO’s aim is to provide efficient, timely, client-centric and value for money procurement. They are currently a service business that is transforming into a technology business, with new and innovative techniques in the industry including an app to streamline procurement processes for buyers and suppliers. Near term aims include 1) educating the public and private sector on how procurement decisions affect the environment, what the whole life costs are of service they buy and how they can make a difference through procurement and 2) obtaining ISO 9001 and ISO 27001 accreditations
The 55 Group
It has recently become part of a new parent organisation – The 55 Group. The group consists of:
Sypro – a management and compliance software organisation,
Social Profit Calculator – social value / community benefit specialists
Tequ – a digital training platform
New headquarters are within 55 Whitefriargate in Hull city centre, inspired by the name of their new parent group’s title.
The structure enables a platform for growth and opportunity for all businesses within the group to knowledge share and drive forward.
With thanks to Simon Toplass, Group CEO at Pagabo.
For further information on PAGABO, please see: