EUKN - European Urban Knowledge Network

Derwent Builds

Introduction

This study describes the process and effect of using private sector procurement and management techniques to establish an Intermediate Labour Market that delivers sustainable benefits both for the long term unemployed and the local supply chain contractors who take them on.

Problem

The NDC’s Social and Economic Theme Group decided to set up a training & construction arm, Derwent Builds together with an Intermediate labour Market in order to:

train up a local work-force willing and able to deliver future construction projects in the area;
gear up the local supply chain by developing & passing on new, Egan compliant, methods of good practice to them;
use private sector procurement methods to ensure a steady supply of customers and contracts
and address a training skills gap with Derby College & Derby Homes.

Description

Three related challenges presented themselves to the Derwent NDC in its early years.

Firstly, the need to renovate and build a significant number of community facilities, secondly, the persistent problem of long term unemployment in the NDC area. (a local Mori poll put this at no less than 33%). Thirdly a poor local building supply chain who were not generally taking on the local unemployed or geared up to the new opportunities.

Approach

Derwent Delivers Ltd was set up in 2002. Run by residents for the long-term benefit of the community, this is a wholly owned subsidiary of the Derwent NDC Board. Derwent Builds was set up in 2003. Its team created an Intermediate Labour Market (ILM) - a multi-agency approach to tackling unemployment which involves specially created jobs to create a bridge back to the world of work by improving employability.

The project began with 18 initial trainees with individual training plans, rising to 30. After 6 months the trainees go onto the pay-role of the sub-contractors, then a further 6 months Derwent Builds can be invoiced back. This helps to ensure a stable apprenticeship period for the trainees.

Results

Full compliment of 56 trainee staff of which 11 are in the 16-18 year olds already achieved with 85% retention rate.100% local labour achieved on current renovation of a large local pub. Local sub-contractors prepared to take on trainees permanently. High satisfaction rating from Derwent Homes with this contract already extended by another 6 months.

Unit cost savings averaging 40% in every area of the programme with added value now going into lengthening the scheme within the original budget. High interest in ‘soft’ Key Performance Indicators (KPIs) developed by project. CITB Constructing Excellence demonstration project. Integrated Project Teams (Constructing Excellence) resulting in 80k savings on NDC budget which is re-allocated for added value outcomes

Beneficiaries

The community, partner contractors

Resources used

Derwent Delivers (NDC Trading and Asset arm)
Derwent Builds
Derby Homes - the arms length housing management company created by Derby City Council
Derby College
Job Centre Plus
Partner Contractors (20)
Funding came from the NDC (£18,300 capital and £689,587 revenue over 3 years) and ESF (£30,7970).

Contact info

Regeneration East Midlands (REM)
info@regenerationem.co.uk

Project start date

//2003

Links

Visit the Regeneration East Midlands (REM) website

Download the 'Derwent Builds' Report (DOC, Eng, 71 KB)

Document type

case

Themes

Urban Policy > Economy knowledge & employment > Training

Keywords

Training for new professions