Procurement and project management FAQs

Our frequently asked questions will help you with everything you need to know about procurement and project management

Does Sport England have a recommended procurement route for appointing a building contractor?

Sport England has a series of frameworks contracts available to Lottery applicants for

  • External sports lighting
  • Outdoor sports surfaces 
  • Building modernisation, improvements and upgrades
  • Innovative or modular building solutions

These frameworks have been set up to service our “Inspired” funding rounds, but the contractors on the frameworks can be used on competitive bids for other Lottery funded sports projects.

Read more about it on the Inspired Facilities website.

The procurement route on projects funded from other Sport England themed rounds should follow recognised best practice for publicly funded projects and using a method appropriate to the value and scope of a Project. Applicants should seek advice from appropriately qualified professional construction consultants with experience of sports projects in the Public Sector.

It is very unlikely that a project will be supported unless it is subject to competitive tendering with a minimum of three to six tenders, again this will be dependent on the value and scope of a project.

Sport England can offer organisations guidance on procurement once a grant award has been made.

 

How many contractors should be invited to tender on a project?

t is very unlikely that a project will be supported unless it is subject to competitive tendering with a minimum of three to six tenders, again this will be dependent on the value and scope of a project.

Applicants should seek advice from appropriately qualified professional construction consultants with experience of sports projects in the Public Sector.

Projects funded from our “Inspired” round will be expected to use the appropriate framework contract set up to support Inspired, namely:

  • External sports lighting
  • Outdoor sports surfaces 
  • Building modernisation, improvements and upgrades
  • Innovative or modular building solutions

Further details of these frameworks can be found on the Inspired Facilities website.

Sport England can offer organisations guidance on procurement once a grant award has been made.

Does Sport England have a preference on how the professional consultant team is appointed?

Sport England expects that the appointment of an applicant’s professional team should be subject to competitive bids for each member of the team, or by competitive bids for a multi-disciplined professional team. The use of a framework or panel of consultants that has been procured by a competitive process is usually acceptable.

Applicants from the Public Sector may be able to use the government procurement services’ project management framework.

Sport England can offer organisations guidance on procurement once a grant award has been made.

Does Sport England have an approved list of consultants and contractors?

Sport England does not have an approved list of consultants or contractors.

Sport England does have a series of frameworks contracts available to Lottery applicants for:

  • External sports lighting
  • Outdoor sports surfaces 
  • Building modernisation, improvements and upgrades
  • Innovative or modular building solutions

These frameworks have been set up to service our “Inspired” funding rounds, but the contractors on the frameworks can be used on competitive bids for other Lottery funded sports projects.

Further details of these frameworks can be found on the Inspired Facilities website.

Sport England can offer organisations guidance on the appointments of consultants and contractors once a grant award has been made.

Can I directly appoint a design team as a Local Authority?

Yes. It is possible for local authorities to take advantage of the government procurement service framework to appoint a design team directly. The framework was established through a competitive OJEU process, with each consultant consequently having agreed hourly rates that they can use to price projects. It is also possible to appoint consultants directly through some local frameworks, like IESE and IEWM, for example.

However, most of these frameworks piggy back on the government procurement service framework to be OJEU compliant.

Having said that, if you are thinking of applying for Sport England funding, please refer to question two regarding competitive tendering.

What are the timescales for using OJEU to procure design consultants and contractors?

A useful reference to timescales can be found here.

What does Sport England mean by a cost/quality tender evaluation?

Sport England expects that the appointment of contractors and consultants should be via competitive bidding/tenders/quotations and the award of contract made on the basis of “best value” or “most economically advantageous tender”.

Best value or the most economically advantageous tender does not necessarily mean the cheapest tender (or quotation) for a particular project offers the best value for a project.

The bid evaluation criteria should take into account the project “quality” objectives as well as cost or price objectives.

For example bidders may submit a price that is insuffi cient to undertake all the requirements of a project with the consequence of cost over run or poor quality work/service provision.

Organisations should consider what percentage weighting is applied to the cost and quality objectives in the evaluation of bids for contractor or consultant appointments on a project specific basis.

Applicants should seek advice from appropriately qualifi ed professional construction consultants with experience of the procurement of sports projects in the Public Sector.

Sport England can offer organisations guidance on the appointment of consultants and contractors once a grant award has been made.

Does Sport England have a specific Professional Indemnity Insurance requirement?

Sport England does not stipulate a minimum PI cover limit on applicants. Many applicants will have a specified level as part of their standing orders/terms of engagement. Applicants should seek professional advice on requesting a suitable level of PI that reflects the scale of the project.

Does Sport England have a preferred form of construction contract?

Projects funded from our “Inspired” round will be expected to use the appropriate framework contract set up to support Inspired, namely:

  • External sports lighting
  • Outdoor sports surfaces 
  • Building modernisation, improvements and upgrades
  • Innovative or modular building solutions

Further details of these frameworks can be found via Inspired Facilities.

Sport England does not have a preferred form of construction contract for projects on other themed rounds, but would normally expect a project to be let under a recognised form of contract, for example:

  • NEC3 EEC
  • NEC3 short contract
  • JCT suite of contracts

Applicants should seek advice from appropriately qualified professional construction consultants with experience of sports projects in the Public Sector.

Sport England can offer organisations guidance on construction contracts once grant award has been made.

On significant construction projects, Sport England expects organisations to adopt best practice in accordance with recognised project management methodologies such as PRINCE2, of which risk management is a key element.

Does Sport England require a parent company guarantee or a performance bond?

Sport England has no specific requirement for a parent company guarantee or a performance bond.

What level of contingency does Sport England require on a project?

The level of contingencies for a project will depend on the value and the scope of a project and the stage that a project has reached. Advice should be sought from the applicant’s professional consultant team.

Sport England would usually expect the contingency allowance to be between 7.5% - 10% up to tender stage, and 5% at the commencement of works on site.

Sport England can offer organisations guidance on cost management issues once a grant award has been made.

Can I apply for additional funding from Sport England if my project is or looks likely to be overspent?

Applications for additional funding from Sport England on a project where an award has already been made will be considered on a case by case basis.

However, organisations in receipt of a grant award from Sport England are expected to have sufficient funding and cost management procedures in place to preclude the necessity of applying for additional funding on a project.

What does Sport England mean by “risk management”?

Risk management is the identification, assessment, and prioritisation of project specifi c risks, followed by the coordinated and economical application of resources and skills by the project team to minimize, monitor, and control the probability and/or impact of a potential risk or event, or to maximize the realisation of opportunities.

Risks can come from potential project failures (at any stage of design, development, construction, or later long term life cycle issues), uncertainty in fi nancial markets, legal liabilities, funding issues, health and safety, natural causes as well as events of an uncertain or unpredictable nature.

Project management risks are typically grouped under the following headings:

  • Strategic/commercial risks
  • Financial/economic/market risks
  • Legal and regulatory risks
  • Organisational/management/human factor risks
  • Political risks
  • Environmental risks
  • Technical/operational/infrastructure risks

The strategies to manage risk typically include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the potential or actual consequences of a particular risk.

Applicants should seek advice from appropriately qualified professional construction consultants with experience in the project management of sports projects in the Public Sector.

Sport England can offer organisations guidance on risk management once a grant award has been made.

Does Sport England have a preferred risk register format?

Sport England has designed a risk register to assist Lottery applicants, design teams and facility operators in the consideration and management of risk on projects. The register has been compiled to meet best practice in accordance with recognised project management methodologies such as PRINCE2.

The register is generic and is intended to promote the consideration of risk. Users are not expected to use every risk, but to consider those that may be applicable to their project, or where a similar, related risk may be applicable to their project.
The identifi ed risks can be used to compile a strategic risk register or a construction project risk register.

The use of the risk register is not mandatory on Sport England Lottery funded projects; applicants may use their own format. Applicants must however be aware that the consideration of risk by applicants and how risk is managed on projects is often a condition of a grant award.

Read the risk register.

Applicants should seek advice from appropriately qualified professional construction consultants with experience in the project management of sports projects in the Public Sector.

Sport England can offer organisations guidance on risk management once a grant award has been made.

What is a sinking fund, what are life cycle costs?

In the context of Lottery funded projects, a sinking fund is a sum of money set aside by a facility owner or operator to fund the day to day and long term maintenance of a facility, and the replacement/refurbishment of major components over the life of the facility, i.e. the costs incurred on a facility over its life cycle.

Typically, a sinking fund provision considers the life of a facility over a 25 year period, but the length of this period may be specific to the conditions of grant award.

Typical items applicants should consider include:

  • Scheduled replacement of major systems and components, i.e. upgrades/replacement of mechanical 
  • and electrical equipment. Re-configuration of wet areas, replacement of sports flooring.
  • Scheduled refurbishment and adaptations, including replacement of sports specifi c equipment/netting. Re-sealing / re-lining of sports flooring, replacing carpets and signage, replacement of external seating and fittings.
  • Cyclical redecoration.
  • Day-to-day repairs and planned preventative maintenance

Applicants should seek advice from appropriately qualifi ed professional construction consultants with experience of sports projects in the Public Sector.

Sport England can offer organisations guidance on sinking funds once a Grant award has been made.

Other costs an applicant may need to consider in connection with the long term management of a project include:

  • Operational costs: The cost of operating the facility rather than from its occupancy, i.e. cleaning costs, utilities costs, administrative costs, overheads costs, taxes etc.
  • Occupancy costs: User support costs relating to the occupation of the facility. Includes internal moves; security; switchboard/telephone; ICT and IT services; vending; occupant’s furniture, fittings and equipment.
  • End of life: Notional costs payable and credits accruing after 25 years. Includes disposal, demolitions, reinstatement to meet potential contractual requirements.

Do I need to consider BREEAM on my project?

The achievement of a BREEAM rating is not mandatory on Sport England Lottery funded projects.

Sport England do however encourage applicants, designers, contractors and facilities managers to embrace the environmental and sustainability agenda from the inception of a project, and to follow best practice and prevailing government policies in respect of environmental and sustainability issues.

Further information can be found in Sport England’s environmental sustainability check list which can be downloaded here

Sport England can offer organisations guidance on environmental and sustainability issues once a grant award has been made.

Is my project zero rated for VAT?

Sport England does not provide advice on VAT or any other taxation matters.

Applicants are advised to seek professional advice on taxation matters, and are reminded to take account of VAT when applying for Lottery Funding.

Does Sport England have a template for a project manager’s monthly progress report?

No. Applicants should seek advice from appropriately qualified professional construction consultants with experience of sports projects in the Public Sector.

Sport England can offer organisations guidance on the style and format of a project managers monthly progress report once a grant award has been made.

What sources of funding are currently available to my clients?

Find out about Sport England's funding streams.