Framework ESI and supply chain members

Framework participants report successful early work with tier 1 suppliers but offer less evidence of ESI as a means to obtain early contributions from tier 2 and 3 supply chain members, including SMEs. Several participants suggest that tier 2 and 3 supply chain members are 'not yet ready' or are 'not sufficiently mature' to participate in ESI, although it is not clear how they reach these conclusions.

The omission of tier 2 and 3 supply chain members from ESI can result in significant missed opportunities for clients and tier 1 suppliers, and the Playbook comments that ESI should 'help highlight the interdependencies of specialist supply chain members and allow them to be part of developing the solution to the right quality levels and increase safety collaboratively' (p.22).

Framework contracts can provide for tier 2 and 3 ESI in several ways, both at framework level and project level:

  ESI systems forming part of framework procurements and call-offs leading to direct client appointments of tier 2 and 3 specialists

  ESI systems forming part of framework procurements and call-offs leading to the nomination of tier 2 and 3 specialists as supply chain members appointed by tier 1 suppliers

  ESI systems in the framework contracts and call-off processes of tier 1 suppliers, describing how and when they will each extend ESI to tier 2 and 3 supply chain members when implementing project contracts

  ESI systems in the framework contracts of tier 1 suppliers, describing how and when they will work collaboratively with clients and other tier 1 suppliers to extend ESI to tier 2 and 3 supply chain members in advance of and separate from the award of project contracts.

 

The Connect Plus Trial Project reports that its framework 'teams have a clear process for exchanging information on a collaborative basis at an early stage, with participants in early contractor involvement meetings working together to agree solutions that promote the best method of delivering the project. Often such discussions are led by the tier 1 contractor (with tier 2/3 support), so as to utilise experience from recent similar projects and to offer clear and well considered methods for the efficient delivery of the works.'

Framework ESI with suppliers and supply chain members is an effective system through which to evaluate and adopt proposals for net zero carbon targets and other sustainability initiatives. For example, by inviting ESI proposals from suppliers and from tier 2 and 3 supply chain members at a time when they can be assessed at a strategic level, a framework can establish the full potential for significant reductions in environmental impact through:

  Proposals to reduce GHG emissions

  Proposals to reduce waste and increase recycling

  Proposals for efficient use of energy on and off site, including through MMC

  Proposals for efficient use of energy in the operation of the built facility.

 

The Archbishop Beck School Trial Project used ESI under the Scape framework to ensure that the team 'benefited from lessons learned on the previous Notre Dame School project. It also contributed to the City-wide initiative led by Liverpool City Council for the engagement of local tier 2/3 Subcontractors and Suppliers and improvement of local employment and skills commitments.'