Gold Standard framework providers and clients should take the lead and invest in framework management services that deliver demonstrable value for money. In return, Gold Standard suppliers should support successful framework management through shared commitments to improved outcomes and transparent professional practices.
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Crown Commercial Service reports how they led and managed a multi-party framework alliance (Annex 3 Case Study 10) through which appointed suppliers Aecom, AHR Architects, AMEC Foster Wheeler Environmental and Infrastructure, Arcadis, Capita, Faithful & Gould, Gleeds, Kier Business Services, Mace, McBains, Mott McDonald, Ridge, Turner & Townsend and WYG worked together 'to deliver improved value for framework clients by: ■ Sharing and monitoring best practice intelligence ■ Sharing and monitoring learning between projects and programmes of work ■ Establishing, agreeing and monitoring consistent and more efficient working practices ■ Agreeing and monitoring techniques for better team integration ■ Agreeing and monitoring improved procurement and delivery systems on projects and programmes of work ■ Sharing and monitoring other improvement initiatives created with contractors and other supply chain members.' |
Effective leadership and management start with framework strategies and flow through framework procurement and contracting. They can be measured against the ability of framework providers and managers to demonstrate to clients and suppliers, as summarised in the 2012 Effectiveness of Frameworks report, whether their framework:
■ Has a demonstrable business need
■ Has effective governance processes, active stakeholder engagement and client leadership
■ Actively supports its clients throughout the project lifecycle, ensuring that clients and the supply chain receive a legacy of improvement
■ Is driven by aggregated demand to create volume and generate efficiencies, providing sufficient work opportunities to cover supplier investment
■ Maintains competitive tension in terms of value, quality and performance during its life
■ Is designed and managed to deliver the required outcomes and continuously improve upon them
■ Can demonstrate greater value for money for the taxpayer
■ Pays fairly for the work done and the risks taken
■ Contributes to the development of an effective and efficient construction market
■ Harnesses the power of public sector procurement to provide jobs and skills, local employment and enables SMEs to prosper
■ Ensures supply chains are engaged from the earliest stages of a project
■ Ensures transparency and collaborative values flow down the supply chain to produce supply chains that clients can have confidence in.
The charges levied by framework providers need to reflect the management services they provide to clients and suppliers. If the scope and professionalism of these management services are made clear, this will help prospective framework clients to assess the value that is added through framework management and will encourage them to opt for a framework that demonstrably delivers value for money.
Creating a collaborative framework culture
Leadership and professional management are essential to creating and maintaining a collaborative framework culture. If framework providers, clients and managers do not show active commitment to shared objectives, this will have an adverse impact on supplier trust and on the efforts that suppliers devote to improved outcomes. Where frameworks and framework projects have the benefit of collaborative leadership and management, this can inspire suppliers to make additional efforts and to take on leadership roles in the delivery of projects and portfolios of work.
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The Property Services Cluster Trial Project framework (Annex 3 case study 6) reports that 'each contractor is taking a lead role in specific areas such as programming, supply chain procurement or design. Some of the projects will continue to be fully designed by the relevant client, whilst many of the others will be handed over to the contractor- led design teams at mutually agreed points'. |
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The Project Horizon Trial Project supply chain framework alliance (Annex 3 case study 9) reports that it attracted 'personal leadership and the recognition of different stakeholder interests in client and contractor organisations who need to be identified, consulted and persuaded to adopt a new and bolder approach'. |
Industry participants express concern that a collaborative framework culture can be compromised if clients do not take framework objectives and commitments into account when managing call-off projects, for example when a client uses a contractor framework but appoints a project consultant who is not connected with or interested in the contractor framework. Framework managers need to monitor project level client leadership and management in order to ensure that these remain consistent with agreed framework objectives and do not undermine the collaborative culture created at framework level.
Framework managers may bring in support from specialists where this is necessary to help them address strategic priorities such as the delivery of outcomes that meet net zero carbon targets.
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The Environment Agency reports that 'To help make a significant contribution to the Environment Agency's target of Net Zero Carbon in 2030, framework integrated delivery teams are supported by a Carbon and Cost Team. This Team provides an estimating and commercial intelligence service designed to ensure and assure, informed and effective, evidence based, whole life decision making across the business. Carbon and Cost services are provided through sub -teams for: ■ Carbon and Cost Estimation; ■ Commercial Intelligence and Benchmarking; ■ Carbon Management and Assurance. These teams maintain tools, systems, data and processes to provide a service that covers items as follows: ■ cost and carbon estimates throughout project and asset life cycles ■ benchmarking and analysis); ■ data validation and assurance; ■ corporate reporting and evidencing construction contribution to net zero; ■ supporting updates to standards via reviews of Minimum Technical Requirements and taking an evidence-based approach to low carbon.' |
The role and responsibilities of the framework manager, whether a client officer or an independent consultant, need to be clearly stated in a Gold Standard framework contract. These include the fair and constructive exercise of any discretion, and an active approach in leading and coordinating the implementation of:
■ Outcome-based framework strategies, procurement and incentivisation
■ Guidance to clients on effective call-off and project procurement
■ Strategic value improvement and risk management processes
■ Consistent, proportionate and relevant performance measurement
■ Collaborative decision-making and dispute avoidance.
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NHS Shared Business Services show the type of commitment necessary in their recently awarded construction framework alliance, which they report 'offers extended support for Contracting Authorities and End Users in the operation and maintenance of the building with FM-aligned and integrated information and data protocols plus integrated supply chains'. |