The data provided shows the impact that your company brings to the local and regional economy. This information can be used by yourselves to support bids for further work on other projects. Often companies promise to engage with the local and regional communities – the LM3 information shows how your company has actually performed and is strong evidence that could influence procurement decisions by other clients.
LM3 stands for Local Multiplier 3 and is an economic model developed by the New Economics Foundation as a simple and understandable way of measuring local economic impact. It measures how income entering the local economy then circulates within it across three rounds of spending. Simple ratios are generated allowing comparisons between contracts and how suppliers support local and regional businesses and communities.
Hinkley Point C is an infrastructure project of national significance and is required to periodically report its economic impact both locally and across the UK to various key stakeholders. The data collected is aggregated and provides these reports. In addition, the data is now also being used to predict the impact that HPC and other similar projects will have and hence support the case for follow on projects like Sizewell C in Suffolk.
HPC reports to the Government every quarter and uses the information provided by all the Tier 1s and Tier 2 suppliers at that time. Ideally reporting every month ensures that the most up to date information is available. However, if this is not possible completing reports a month before the end of a quarter will ensure the best picture. The spend reported is always cumulative and should be from the start of the contract or from the beginning of January 2016, whichever of these is earlier.
The “Local” area is the County of Somerset, North Somerset and part of Bath and North East Somerset. In fact, it is modelled on the old map of Somerset excluding Bristol and Bath. The “Region” is all of the South West including South Wales. Out of Area is anywhere not within the region. We have these areas defined in order to report the economic benefits arising from HPC to local authorities surrounding the construction site and to Government who are interested in the regional benefits.
The LM3 ratios captured by the system will help show how your company has been able to support EDF’s commitment to the local communities and businesses. This commitment has been to utilise as far as possible, local sources of labour, service providers and materials/components and as such leave a positive legacy beyond the construction of HPC. Demonstration of these social and economic benefits can only help in winning future work on the project.
The system is being used to feed data into a projection model that shows the overall effect the HPC project will have across the UK. The model uses industry recognised formula to predict the number of jobs created within the supply chain based on the contract values. Capturing the actual number of jobs created allows us to improve the accuracy of these predictions. Currently we are using the most conservative formula derived by the Office of National Statistics annual business summary (2019).
The project recognised that some of its supply chain would already be using LM3 to generate socio-economic reports. Hence enshrined within in the terms and conditions is a commitment to allow free passage of data into these systems. In fact, aggregated data generated in the HPC system is used to improve the extrapolation calculations used in all the LM3 systems used in the UK.
You can reset your password by accessing your profile. The down arrow next to your name in the top right hand part of the screen gives you access to the profile. If you cannot access the system, then contact Support 01823 443425 or support@hpc-lm3online.com who will be able to reset your password and re-establish access. If you use this, please reset your password after gaining access to the system.
Yes – just access the profile of the main user and change the Email address and Full Name fields to that of the new user. The system needs you to enter the main user password to confirm this change. Once the change is made the new main user should access the system using the old main user password and reset their password.
You can provide them with their log on details – This is achieved by finding the supplier on the Supplier Management list within the Results area on the summary page. Each supplier has a line and in the Change column on the right hand side is a button that looks like a pair of chain links. This generates a hyperlink with the Supplier Login details – This can then be copied into an email and sent directly to the supplier. The supplier will then have direct access to their response page. Note: They will need to accept the LM3 Terms & Conditions before getting to the response page if they have not already done this.
As the main user, prior to sending out any emails you need to proof read the email and send a copy to yourself beforehand. You can edit the content of the email and these edits will be saved on the system.
The HPC project was given the final green light by Government in the autumn of 2016. Prior to this, EDF mobilised the earthworks contractor who started on site early in 2016. Although significant spends occurred before January 2016, it was concluded that the majority of spend within the local and regional supply chain would be captured from the start of 2016.
Revised data entry is simply made by overwriting the existing data with the new data.
Please use total payroll of staff working directly for you on the HPC contract, excluding NI, tax and pension contributions. Split this into “local”, “regional” and “out of area”. Note we do not include NI, tax and pension contributions on the basis that these are consistent figures across all employees.
The LM3 process uses proxy indicators for personnel expenditure. We have adopted this method because many organisations decide against surveying staff. Based on historic results from LM3, we use the following proxies for personnel expenditure: Local staff spend 66% of their total income locally and Non-local staff spend 33% of their income locally
These cover items such as finance costs, corporate overheads, or office costs that cannot easily be attributed to a specific supplier or staff payroll.
When you upload the supplier list the system does a check for duplicates. It looks for similar company names. In some cases, separation of spend to the same supplier can be useful. If you wish to remove a duplicate or any other supplier, then enter a value of £1.00 against the supplier you wish to remove. From time to time the system is cleansed of all suppliers with a value of £1.00.
The system uses google maps to identify the geo-coordinates of the supplier from the data you supply. We ask you to enter the address and country code separately as this optimises the system for finding the address of your supplier. ¬
The system will accept post codes, town names, zip codes or even full addresses. Behind the scenes the system uses google to identify the geo-coordinates of the supplier from the data you supply.
No – The figure is provided by EDF based on the spend up to the end of the relevant quarter. If you want it changed, please contact us and we will make the appropriate changes.
The system requires a name and a valid email address. If you cannot provide this, you can use the word “system” as a wild card. The system is set up to recognise this as a valid entry. Subsequently you can change this once you know the correct contact details.
We have set up a number of levels of support. The Somerset Chamber of Commerce has been briefed on how to address the majority of issues and can be contacted via 01823-443425 or by email on support@hpc-lm3online.com. If Alan (from the chamber team) cannot address your issue, he will direct your call to EDF or to the System providers (Impact Measurement Ltd). We find that the system works better using Chrome as a browser and access problems usually are associated with this.
You can report on behalf of your suppliers using the option within the Supplier Management table under change however the data may not be accurate so it is always best to encourage a supplier to take five minutes to respond for themselves.
LM3 Project. This is a contract or a number of contracts placed by HPC with a specific tier1 supplier. Once created it gives that supplier access to report socio-economic data via the hpc-lm3online system
Project Admin user. Project Admin user is responsible for the management of the project. The admin can change any direct costs or labour costs, upload new and modified supplier spend, and assign additional project administrators at any time. They can also download project information by pressing the print icon at any time.
Additional Project Admin User. The main administrator can assign an additional admin to individual projects at any time
Supplier. A supplier is any individual or organisation with whom you do business with in the delivery of the contract.
Total Budget. This is the contract value you hold with HPC. However, depending on the size and length of the contract it may not be shown in total. However, the figure shown is reviewed and updated quarterly by HPC
Payroll. This should be the gross amount of pay to any individual directly employed and working on your HPC contract. It should exclude NI, PAYE etc.
Other Costs. Other costs refer to any project costs which cannot either be allocated as direct labour, or supplier spend. These can include such as areas contribution to central overhead, depreciation, or profit.
Confidence. You will see the confidence bar on your project summary go green when 40% of your suppliers (by value) have responded, the total of your spending is within 20% of the Budget for the project.
Total Spending Impact. This is the sum of amount of money that circulates in the local economy after three rounds of spending. It calculates the total economic benefit to that economy of the the HPC spend.
The Number of Jobs is defined as 'The cumulative number of filled full time (or part time equivalent) employment opportunities lasting for at least 13 weeks created as a result of the HPC project contract.' This is a cumulative number and should reflect the total number of new jobs created over the duration of the lifetime of the contract.
Gross project income is the total of the payroll and non-payroll figures entered in the Budget info screen.
Project expenditure shows the amount of the gross project income that was spent on locally-based people (payroll) and organisations (non-payroll)
Money re-spent locally shows how the people and organisations you spent money on, based locally or elsewhere, then re-spent that money in the local economy.
LM3 is a ratio representing the total income generated by the gross project income. LM3 is calculated by dividing the Total by Round 1.
Impact on UK Economy is a map that shows the cumulative effect of your project or projects by UK region at any time. This is an LM2 figure as it shows your direct spend with suppliers at a regional level
Version: 05-Nov-2020