10. Framework portfolios and longer-term contracting

The Construction Playbook recognises that portfolios and longer-term contracting 'will give the industry the certainty required and make it commercially viable for suppliers to invest in innovative new technologies and MMC' (p.15), provided that contracting authorities demonstrate this 'does not come at the expense of an innovative and competitive market' (p.11).

Despite their potential as vehicles for integrating teams and improving value, frameworks are sometimes used cynically to attract lower prices by exaggerating the potential pipeline of work. Without confidence in long-term relationships and in the conditions governing the award of future work, the expectations created when awarding a framework can soon deteriorate into mutual disillusionment and distrust.

For frameworks to attract innovation and investments that deliver improved productivity and efficiency savings, it is fundamental that clients and managers provide a clear understanding to suppliers of the work covered by the framework, the scope and nature of call-offs and the prospect of good performance leading to longer-term project awards or additional project awards without additional mini-competitions.

HM Revenue and Customs summarise the benefits of their Government Hubs Programme frameworks as ' Opportunities for Framework Agreement contractors/ suppliers appointed include:

Works and/or services on notable fit-out projects

Securing repeat work

Involvement in the design process to add value

The ability to form collaborative relationships with the Employer to share lessons learned, innovative solutions, and cross-project knowledge transfer'.

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