The significant economic, social and environmental value that can be achieved through ESI is illustrated in Annex 1 Case Studies 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10. Review participants confirm that ESI improves value and reduces risks for clients and for suppliers, but they also note that many clients do not adopt ESI for framework call-offs because consultants unconnected with the framework continue to advise a single stage, lowest price approach.
This is a worrying trend in view of the wealth of evidence showing how ESI improves value, and in view of the poor track record of single stage, lowest price procurement in avoiding cost and time overruns and in delivering safe, high quality project outcomes. Gold Standard framework providers and clients need to ensure that consultants understand and adopt ESI as essential to the systems by which Playbook policies deliver improved value.
Review participants express concern that reluctance to use ESI as a proven system for improving project outcomes is symptomatic of the ways in which frameworks are being misused as a last-minute convenience store for clients and consultants who have not planned ahead. Most participants welcome the Construction Playbook requirement that 'all public works projects should contract for early supply chain involvement' (p.27) because this will enable framework providers, clients, managers and suppliers to challenge any advisers and colleagues who are not aware of the problems inherent in a single stage approach.
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The North West Construction Hub reports that 'The NWCH advocates to use of Two Stage Open Book as the preferred route for delivery of public funded construction projects. The call off process has a 6 week target maximum time period from Expression of Interest to preferred contractor appointment'. 'The added benefits of two stage tendering, collaborative working, early contractor and supply chain engagement, joint risk allocation and management, cost transparency, cost certainty deliverable social value, local employment and skills development are lost if they become secondary to lowest price.' |