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Exceeding

Considerate Construction Scheme (CCS)

Renegotiating business process outsourcing (BPO) contracts

About CCS.

CCS is a not-for-profit, independent organisation founded to raise standards and the image of the construction industry. Construction sites, companies and suppliers voluntarily register with the CCS scheme and agree to abide by the Code of Considerate Practice, designed to encourage best practice beyond statutory requirements. CCS audits all registered sites, utilising its Monitors who are industry experts.

Overview.

CCS engaged eXceeding to support the review of its BPO contract and the marketplace. The incumbent – who had been delivering the full BPO service for over 17 years – clearly knew the operation and deliverables in far more granular detail than CCS. eXceeding therefore worked collaboratively with the incumbent to extract the full-service deliverables and operational approach.

eXceeding took the detailed analysis and created a comprehensive specification of CCS’ BPO requirements. The specification was then taken to the market to explore potential comparable and alternative delivery models.

The market test results were discussed with the CCS board and the conclusion was to renegotiate the current agreement with the incumbent provider, whilst creating a far more detailed contract with SLAs, KPIs and service credits. Certain discreet services such as IT, HR, Marketing and Finance were removed from the BPO contract.

The challenge.

We identified 3 key challenges which needed to be addressed as part of the project:

Reduced service levels
There was a fear that the incumbent’s service would deteriorate during the procurement process.

Key stakeholders
The service provider’s CEO was also the Scheme’s CEO so the project had to be handled with extra care.

The incumbent service provider
Who refused to cooperate with the review process or to bid for services.

The solution.

eXceeding acted as a central point of expertise and took ownership of all aspects of the project, providing CCS with a detailed understanding of the incumbent’s service delivery and operational model.

All stakeholders were engaged to embrace the potential new contract, as an advantageous step in securing the scheme’s future. eXceeding supported contract negotiations and addressed red tape scenarios.

  1. The first step was to understand and document the complex multi-faceted BPO contract, ensuring both CCS and eXceeding understood the landscape.
  2. eXceeding’s team then accessed the market and made recommendations to the CCS board based on the findings.
  3. Along with the CCS board, it was agreed that the best outcome was to renegotiate a new and detailed contract with the incumbent provider with clear SLAs, KPIs, service credits and benchmarking clauses.
  4. eXceeding also assisted CCS with the strategic sourcing and insourcing of key services including HR, IT, Finance and Marketing.

Highlights.

2 year
A project term

Increased visibility
A clear and forecastable cost model

Supplier consolidation
With ‘fit for purpose’ contracts

Collaboration
Improved Supplier Relationship Management (SRM)

The future.

eXceeding increased the scheme’s longevity with efficient Supplier Relationship Management and a contract which now details all aspects of delivery, with the agreed contract schedules. The flexibility to ensure mid-term service deliverables proved a lifeline to CCS.  Contract benchmarking was implemented throughout the contract terms which allowed for transparency.