The Construction Playbook describes construction frameworks as integral to effective contracting and states that:
■ 'One of the most effective ways to deliver outcomes is to create contracting environments that promote collaboration and reduce waste'
■ 'Contracts should create positive relationships and processes designed to integrate and align multiple parties' commercial objectives and incentives' (p.40).
To start with the basics, an effective framework contract needs value-based systems for awarding project contracts and measuring supplier performance. The Playbook recognises the need for 'transparent performance measurement and work allocation procedures' (p.42), and the performance measurement system in a Gold Standard framework contract should take into account the Playbook statements that:
■ 'The outcomes agreed through the Project Scorecard should also be used to design the set of key performance indicators (KPIs) for the project or programme' (p.38)
■ 'It is important that KPIs are relevant and proportionate to the size and complexity of the project or programme' (p.40)
■ 'With the right KPIs in place, it should follow that contracts are designed to incentivise delivery of the things that matter, minimise perverse or unintended incentives and promote good relationships' (p.40).
However, there is little to gain from transparent performance measurement if the framework provider, clients, manager and suppliers have not agreed the means by which the framework will be managed so as to drive, or at least facilitate, the required results. Therefore, the features of a Gold Standard framework contract also include 'principles that align objectives, success measures, targets and incentives so as to enable joint work on improving value and reducing risk' (p.42). As also considered in Section 4, many current framework contracts do not support compliance with Construction Playbook requirements because they do not provide:
■ A collaborative structure through which framework providers, clients, managers and suppliers align their commercial objectives, success measures, targets and incentives
■ Collaborative machinery through which framework providers, clients, managers and suppliers undertake joint work on improving value and reducing risks.
At the point when a framework contract is awarded, the framework provider, clients, manager and suppliers do not know everything they need to know about the other framework participants, about the projects to be awarded, about the teams who will deliver each project or about the framework activities that will improve value and reduce risks. A Gold Standard framework alliance contract therefore also needs to embody the Construction Playbook requirement for contracting authorities to 'ensure that contracts are structured to support an exchange of data, drive collaboration, improve value and manage risk', and to 'set clear expectations for continuous improvement and be consistent with the principles in this Playbook' (p.12).