MMC and framework sub-alliances
Framework procurement models and framework contracts can provide for call-offs through a multi-party framework 'sub- alliance contract' that supports MMC by integrating the work of multiple suppliers and by aggregating multiple projects. All the Crown Commercial Service framework alliances provide the option for call-off through a sub-alliance contract which is structured as follows and does not constitute a 'framework within a framework':
■ The sub-alliance contract integrates multiple framework projects already awarded to tier 1 suppliers under an overarching framework alliance
■ The sub-alliance stimulates collaboration among tier 1 suppliers in order to obtain best value from strategic supply chain relationships with offsite manufacturers
■ The sub-alliance contract includes a timetable of strategic ESI through Supply Chain Collaboration, describing the preconstruction processes and interfaces that govern development of consistent designs based on platform approaches
■ The prospect of early collaborative appointments on multiple projects motivates supply chain members to propose innovative MMC solutions that improve value for the benefit of all projects within the sub-alliance
■ The sub-alliance contract acts as an integrator between the client, suppliers and supply chain members for the efficient use of BIM to create, exchange, review and integrate digital information.
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| Under the Crown Commercial Service construction framework alliance, the Ministry of Justice reports that they are working on a Playbook pathfinder to procure the four prisons comprising their £1 billion New Prisons Programme, using an FAC-1 collaborative sub-alliance. The sub-alliance will integrate the work of four suppliers and will support their use of ESI, BIM and MMC to agree optimum designs and strategic relationships with key tier 2 supply chain members. Engagement with tier 2 supply chain members will be led jointly by the four contractors, and by Mace as alliance managers, so as to be free from public procurement constraints. The sub-alliance will use Supply Chain Collaboration to agree strategic commitments with tier 2 supply chain members for each key package, bringing them into the alliance and preserving their collaborative commitments to efficiency and improved value after the award of successive NEC4 construction phase project contracts. The FAC-1 sub-alliance contract will also create an 'integrated information management contract' that connects the IP licences and BIM contributions of the suppliers and supply chain members across the four prison projects. |
A Gold Standard framework includes a strategy, procurement process and framework contract that support long-term investment in MMC and in other digital and offsite manufacturing technologies, making clear:
■ The optimum scope and duration of the framework to attract the most efficient development and use of MMC and other digital and offsite manufacturing technologies
■ Evaluation criteria that include:
■ assessment of whole life value, recognising that 'Paying more for higher quality may be justified if the whole life cost is advantageous' (p.56)
■ assessment of social value, for example where MMC offsite production facilities are located in areas that urgently need new business, employment and skills opportunities
■ Call -off and incentives that reward innovation and performance and that motivate further investment.
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| Recommendation 11: Improve supplier investments in MMC and other offsite technologies by awarding framework call-off contracts for portfolios of work To obtain improved value from suppliers planning, investing in and delivering MMC and other offsite manufacturing technologies, this review recommends that framework providers, clients and managers use their framework strategies, procurements and contracts to explore and agree the benefits of MMC and other offsite manufacturing technologies and the additional benefits of one or more clients calling off aggregated portfolios of work. |
Specific actions include:
Framework strategy
■ Consider how the framework could deliver client outcomes by accelerating the development and use of MMC, platform approaches, standard products and components.
■ Consider how MMC, platform approaches, standard products and components could affect the suppliers' ability to plan, invest and deliver digital and offsite manufacturing technologies.
■ Consider how value and outcomes could be improved by multiple clients procuring the framework together across portfolios of public works and by the development of cross-sector platform solutions.
Framework procurement
■ Evaluate supplier proposals to develop and use MMC, platform approaches, standard products and components.
■ Evaluate supplier proposals to plan, invest in and deliver digital and offsite manufacturing technologies.
Framework contract
■ Structure the systems for call-off, value improvement and risk management to incentivise and take advantage of MMC, platform approaches, standard products and components supported by digital and offsite manufacturing technologies.
■ Include the option of a sub-alliance to integrate the work of multiple suppliers and supply chain members across multiple framework projects.