Early supply chain involvement ('ESI'), as defined in the Construction Playbook, 'extends the principle of early contractor involvement by formally engaging the tier 1 contractor alongside the tier 2 and 3 sub-contractors and suppliers in the pre-construction phase to input into the design (including the use of standards for products and interfaces), costing, risk management and structuring of a project or programme' (p.24). The Playbook requires that 'All public works projects should contract for early supply chain involvement (ESI)' (p.27), and this policy represents an important step towards more integrated public sector construction procurement. Frameworks have a significant role to play in bringing ESI to life and ensuring that its adoption delivers improved outcomes.
ESI starts with the pre-procurement involvement of potential tier 1 suppliers and potential tier 2 and 3 supply chain members 'in developing the business case for projects and programmes' (p.11) so as to test the deliverability of client requirements, the feasibility of alternative options and the appetite for innovative solutions that could deliver better outcomes. When developing a Gold Standard framework strategy, framework providers and clients should:
■ Consider ways in which the framework can deliver better client outcomes, improved value and reduced risk by formally engaging tier 1 suppliers alongside tier 2 and 3 supply chain members, strategically and in the pre-construction phase of framework projects
■ Consider how the framework can use ESI to obtain SME insights into MMC, innovative technologies, social value, combatting Modern Slavery and ways to minimise the GHG footprint of proposed solutions across their whole lifecycle
■ Involve prospective tier 1 suppliers and prospective tier 2 and 3 supply chain members in developing the framework business case.
Once the business case is approved, and if framework clients provide clear outcome-based specifications, then ESI 'will facilitate innovative, cost-effective solutions ensuring there is a major focus on social value and sustainability' (p.22). The Playbook states that ESI is 'key to reducing end-to-end programme timescales, identifying opportunity and mitigating risk early and accessing the industry experts' knowledge and experience in all tiers of the supply chain early in the project or programme lifecycle' (p.22).
ESI has been recommended for public sector procurement since the 2011 Government Construction Strategy and is a feature of the recommended collaborative procurement models known as 'Two Stage Open Book', 'Cost Led Procurement' and 'Integrated Project Insurance'. ESI has had widespread success in delivering improved economic, social and environmental value, as evidenced in each of the case studies at Annex 3.