Early involvement of tier 1 suppliers on specific framework projects is a feature in many of the frameworks shared by framework providers and clients for the purposes of this review. In most cases this is described as the optional early appointment of a tier 1 supplier to undertake pre-construction works and services but in others, such as the Southern Construction Framework, ESI is a requirement for all framework call-offs.
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The Southern Construction Framework requires that their users adopt ESI on all framework projects through the 'Two Stage Open Book' procurement model, and report that Key to the two- stage approach is to measure the added value from the early involvement of the contractor at pre-construction. All the cost savings or other value add items are recorded in our database and signed off by the client. From this, we can demonstrate that on average, every project finds added value equivalent to 10% of the project cost during pre-construction. The Cabinet Office validated this approach and has used these added value figures in their annual reports. |
Many of the framework contracts reviewed include preconstruction services agreements. These are nearly all bespoke forms which vary in their wording, structure and length. Each bespoke preconstruction services agreement creates an additional burden and cost for framework clients and suppliers in understanding and applying its terms. Contrary to the Playbook requirement to use unamended standard form project contracts, most of the frameworks reviewed do not use the standard preconstruction phase forms, options and systems published in the JCT2016, NEC4 and PPC2000 contract suites.
As regards the integration of preconstruction services agreements with construction phase project contracts, the Playbook notes that the 'procurement process, evaluation approach and contract should generally be structured to cover both the ESI and the construction phase. While it is possible to follow ESI with a further competitive procurement process, this can undermine the benefits of using ESI' (p.24). The lack of integration between some framework preconstruction services agreements and the separate construction phase contracts that follow them is vulnerable to this criticism.
Framework contracts can also provide for limited, project level ESI to be undertaken through the issue of orders for early works, services or supplies in advance of the award of a project contract. These order forms need to be integrated with the terms of the relevant project contracts so that early works, services or supplies are treated as an integral part of each project.