The procurement of a framework, and of projects within the scope of that framework, should be based on strategies that consider the best means to deliver the required and desired outcomes of the relevant clients or prospective clients. When formulating these strategies, framework providers and clients should use delivery model assessments as 'an analytical evidence-based approach to reach a recommendation on how a contracting authority should structure the delivery of a project or programme' (p.32).
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The Department for Education reports that 'Recently there has been a move towards a wider consideration of 'value' beyond financial capital, but also including Natural, Social, Human, Environmental, Manufactured capitals throughout the whole lifecycle of the asset. The DfE Capital Commercial are part of the CIH (Construction Innovation Hub) Client Advisory Group for the development of CIH Value Toolkit. The Value Toolkit is being developed to enable an approach that targets value and a whole-life approach across the full investment cycle, rather than a narrower focus on controlling cost and risk at capital stage. It is believed that if the commissioning client is better able to understand, communicate and incentivise its own value drivers to its supply chain, then the 'market' will become better able to shape its processes and outputs better to fulfil those value drivers.' |
The Construction Innovation Hub 'Value Toolkit' was launched in April 2021 to provide guidance on the assessment of alternative delivery models corresponding to those summarised in the Construction Playbook. The assessment of delivery models is an early strategic decision for framework providers and clients, and the different options need to be considered alongside the desired client outcomes. It is likely that different delivery models will be adopted by different clients on different projects forming part of the same framework, and framework managers should be skilled in providing the guidance that clients need when assessing the best delivery model for each project. These skills should enable a framework manager and client to work together, taking into account the relevant value profile, strategic risks and other client factors and market factors.
The Construction Playbook requires that contracting authorities 'follow an evidence-based process to decide the most appropriate delivery model and structure for a specific project or programme', one that 'enables clients and industry to work together to deliver the best possible outcomes.' (p.12). It states that the 'strategic approach to the delivery model' should then be reflected in 'our commercial approach - the way we procure, contractualise and manage works' (p.32).
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Recommendation 15: Use delivery model assessments to inform and support framework strategies, procurement, contracting, management and call-off To identify the best delivery model for each prospective framework project or programme of work, this review recommends that framework providers and clients include in their framework strategies an evidence-based delivery model assessment, that they reflect the chosen delivery model or models in their framework procurement, call-off and management systems, and that framework managers provide guidance to clients on how to choose the most appropriate delivery model when calling off each project. |
Specific actions include:
Framework strategy
■ Undertake an analytical, evidence-based delivery model assessment in order to:
■ identify the required and desired outcomes for the framework and framework clients
■ establish the most appropriate model or models to achieve those outcomes
■ decide how the procurement of the framework and of the relevant framework projects and programmes of work will enable the framework provider, clients, manager and suppliers to work together to deliver the best possible outcomes.
■ Consider and establish the objectives, success measures and targets of the clients and framework provider, and appropriate incentives for performance by the prospective suppliers of their framework level and project level commitments.
Framework procurement
■ Reflect the chosen delivery model or models in:
■ the procurement process for the framework and the call-off process for the relevant framework projects and programmes of work
■ the relationships, structure, processes and provisions created by the framework contract and by the contracts governing the relevant framework projects and programmes of work
■ the systems governing management of the framework contract and of the relevant framework projects and programmes of work.
■ State the objectives, success measures, targets and incentives of the clients and framework provider, and invite prospective suppliers:
■ to submit proposals for achieving these objectives, success measures and targets
■ to state how these fit with their own objectives, success measures and targets.
Framework contract
■ State a system for the framework manager to provide guidance to clients when assessing the best delivery model for each framework project.