Delivering the Compact with Industry

The Construction Playbook Compact with Industry emphasises the need to 'work more collaboratively at all levels of the supply chain', and 'to place more focus on social value, sustainability and asset performance' (p.6). It highlights the opportunities for public sector clients and suppliers 'to create long-term relationships that will underpin our investments in people, technology and capacity' (p.6).

The Compact with Industry recognises that the construction industry needs to change and that it needs client support, stating that public sector clients should adopt 'a more consistent and equitable approach to risk transfer', should offer 'the promise of a fair return' and should 'reward industry partners for delivering improved value through faster, better and greener delivery' (p.6). A Gold Standard framework creates the rules of engagement which establish and support the equitable treatment of risk, the agreement of pricing models that offer fair returns and the use of incentives that reward suppliers for achieving desired client outcomes.

Diagram 2 illustrates the operation of a Gold Standard framework which motivates improved design, construction and operational solutions by integrating project award and performance measurement systems with joint working across a community of clients, consultants, contractors, subcontractors, suppliers, manufacturers and operators. It shows how strategic framework collaboration at all levels of the supply chain can attract innovations that improve quality while at the same time reducing client, consultant and contractor risks through early review, development and validation of proposed design solutions.

Diagram 2: Operation of a Gold Standard framework