Translating objectives into actions

Where current framework contracts include value improvement machinery, this can be deployed immediately as the basis for an action plan that implements Construction Playbook policies. Where current framework contracts include value improvement objectives but do not set out the contractual machinery for achieving these objectives, there are proven ways by which to agree a contractually binding action plan of supplemental value improvement commitments without undertaking a new public procurement process.

Creating a Gold Standard action plan requires framework providers, clients, managers and suppliers to create, agree and implement a shared timetable of specific activities that reflect the Playbook policies and recommendations described in later sections of this review. A Gold Standard action plan under a current framework sets out:

■ How and when innovations and other improvements consistent with Playbook policies will be agreed between the framework provider, clients, manager and suppliers, both preceding and in parallel with the award and delivery of individual framework projects, and how and when these innovations and other improvements will be adopted for use by framework clients and suppliers on framework projects

■ How and when innovations and other improvements consistent with Playbook policies will be captured from framework projects, how and when they will be shared and agreed between the framework provider, clients, manager and suppliers, and how and when these innovations and other improvements will be adopted for use by framework clients and suppliers on other framework projects.

In order to bring a Gold Standard action plan to life, value improvement systems can be added to a current framework contract without breaching public procurement regulations. They can be expressed as supplemental contractual instruments which do not change the overall scope of the framework or the agreed terms of the current framework contract. Instead, they describe machinery for the implementation of previously agreed value improvement objectives, which can be set out in multi-party supplemental contracts such as:

■ A 'supply chain framework alliance contract' led by tier 1 suppliers, as illustrated in Annex 3 case studies 8 and 9, which can harmonise and aggregate client and supplier demand, can develop and integrate ESI relationships with tier 2 and 3 supply chain members through Supply Chain Collaboration, and can deliver improved economic, social and environmental value

■ A 'transitional framework alliance contract', as illustrated in Annex 3 case study 10, which can integrate the work of tier 1 suppliers appointed under separate pre-existing framework contracts in order to clarify the shape, direction and expected outcomes of joint initiatives that explore the potential of MMC, digital technologies, ESI, Supply Chain Collaboration and other means to deliver improved value.

A framework provider and its clients, manager and suppliers can agree to create one or more supply chain framework alliances and a transitional framework alliance if their current framework contract includes:

■ The objective of continuous improvement

■ Fees, profit and overheads quoted separately from other costs.

These features appear in most of the framework contracts that were shared for the purposes of this review. With the benefit of professional guidance, they provide a starting point for agreeing supplemental contractual commitments that underpin a Gold Standard action plan and do not infringe public procurement regulations.