| Safety, Zero Carbon, Compact with Industry (Section 3 and Recommendation 3) | Components of a Gold Standard for Frameworks and Framework Contracts |
| Health, safety and wellbeing, embedding CDM compliance, reduced occupational illness and support for small businesses in project and programme planning. Building safety behaviours and practices, starting with an improved procurement process that drives quality and required safety outcomes rather than lowest cost. See also the Gold Standard for: ■ Framework market health and capability assessments (Section 9) ■ Harmonising, digitising and rationalising framework demand (Section 11) ■ Further embedding digital technologies through frameworks (Section 12) ■ Framework ESI and Supply Chain Collaboration (Section 13) ■ Effective framework contracting (Section 17) ■ Framework risk management and allocation (Section 18) | Framework strategy Consider and establish how the framework provider, clients, manager and suppliers will be expected to deliver improved health, safety, wellbeing and improved building safety. Framework procurement Evaluate prospective suppliers' commitments to improve health, safety, wellbeing and improved building safety. Framework contract State how the commitments of the framework provider, clients, manager and suppliers to health, safety, wellbeing and improved building safety will be implemented on each project and how improvements will be developed, shared, agreed and acted on. |
| Build back greener, including systems and processes to ensure that projects and programmes deliver on net zero carbon and other sustainability targets. See also the Gold Standard for: ■ Framework market health and capability assessments (Section 9) ■ Harmonising, digitising and rationalising framework demand (Section 11) ■ Further embedding digital technologies through frameworks (Section 12) ■ Framework ESI and Supply Chain Collaboration (Section 13) ■ Outcome-based approaches to frameworks and call-offs (Section 14) ■ Framework benchmarking and Should Cost Models (Section 16) ■ Effective framework contracting (Section 17) ■ Framework risk management and allocation (Section 18) | Framework strategy Consider and establish how the framework provider, clients, manager and suppliers will be expected to deliver net zero carbon and other sustainability targets. Framework procurement Evaluate suppliers' commitments to net zero carbon and other sustainability targets. Framework contract State how the commitments of the framework provider, clients, manager and suppliers to net zero carbon and other sustainability targets will be implemented on each project and how improvements will be developed, shared, agreed and acted on. |
| Long-term, strategic collaborative relationships that underpin investments in people, technology and capacity and that lead to measurable improvements in productivity and project outcomes. See also the Gold Standard for: ■ Frameworks and commercial pipelines (Section 8) ■ Framework market health and capability assessments (Section 9) ■ Framework portfolios and longer-term contracting (Section 10) ■ Outcome-based approaches to frameworks and call-offs (Section 14) ■ Delivery model assessments for frameworks and framework projects (Section 15) ■ Effective framework contracting (Section 17) ■ Framework risk management and allocation (Section 18) ■ Framework mechanisms for payment and pricing (Section 19) ■ Evaluating frameworks and call-offs (Section 21) ■ Framework relationship management (Section 23) | Framework strategy Consider and establish how the framework will create long-term strategic collaborative relationships between the framework provider, clients, manager, suppliers and supply chain members. Framework procurement State the client commitments to long-term strategic collaborative relationships and evaluate suppliers' commitments to long-term strategic collaborative relationships. Framework contract State the structure and systems that create and sustain long-term strategic collaborative relationships. |
| Reward for industry partners delivering improved value through faster, better, greener outcomes, including more consistent, equitable risk transfer and a fair return. See also the Gold Standard for: ■ Outcome-based approaches to frameworks and call-offs (Section 14) ■ Framework benchmarking and Should Cost Models (Section 16) ■ Effective framework contracting (Section 17) ■ Framework risk management and allocation (Section 18) ■ Framework mechanisms for payment and pricing (Section 19) ■ Evaluating frameworks and call-offs (Section 21) ■ Framework relationship management (Section 23) | Framework strategy Consider and establish how clients will reward suppliers for delivering improved value through faster, better, greener outcomes, including consistent, equitable risk transfer and a fair return. Framework procurement State the commitments of the framework provider, clients and manager to consistent, equitable risk transfer and a fair return, and evaluate suppliers' proposals for delivering improved value through faster, better, greener outcomes. Framework contract State the commitments of the framework provider, clients, manager and suppliers to consistent, equitable risk allocation and a fair return, state how these commitments will be implemented on each project, and state the framework systems for developing, sharing, agreeing and acting on suppliers' proposals for delivering improved value through faster, better, greener outcomes. |
| Working more collaboratively at all levels of the supply chain, with more focus on social value, sustainability and asset performance. See also the Gold Standard for: ■ Harmonising, digitising and rationalising framework demand (Section 11) ■ Framework ESI and Supply Chain Collaboration (Section 13) ■ Outcome-based approaches to frameworks and call-offs (Section 14) ■ Delivery model assessments for frameworks and framework projects (Section 15) ■ Effective framework contracting (Section 17) ■ Framework risk management and allocation (Section 18) ■ Framework mechanisms for payment and pricing (Section 19) ■ Evaluating frameworks and call-offs (Section 21) ■ Framework relationship management (Section 23) | Framework strategy Consider and establish the benefits of the framework provider, clients and manager working collaboratively with suppliers at all levels of the supply chain, including how this collaboration can improve social value, sustainability and asset performance. Framework procurement State the commitments of the framework provider, clients and manager to work collaboratively with suppliers at all levels of the supply chain, and evaluate suppliers' proposals for delivering improved social value, sustainability and asset performance. Framework contract State: ■ The commitments of the framework provider, clients, manager and suppliers to work collaboratively at all levels of the supply chain ■ How these commitments will be implemented strategically and on each project ■ The framework systems for developing, sharing, agreeing and acting on suppliers' and supply chain members' proposals for delivering improved social value, sustainability and asset performance. |
| Gold Standard Frameworks and Framework Contracts | |
| Frameworks and commercial pipelines (Section 8 and Recommendation 8): Avoid wasted procurement costs and improve supplier commitments by ensuring that frameworks offer sustainable pipelines of work. | Framework strategy Consider and establish the commercial pipeline of works, services and supplies to which the client or clients can commit through the framework, and the factors and preconditions that limit those commitments. Framework procurement State the clients' commitments to procure a commercial pipeline, state the factors and preconditions that limit those commitments, and evaluate the suppliers' capacity, capability and proposals for delivering that pipeline subject to those factors and preconditions. Framework contract State the clients' and suppliers' commitments to a commercial pipeline, and the factors and preconditions that limit those commitments. |
| Framework market health and capability assessments (Section 9 and Recommendation 9): Use pre-procurement framework consultation to explore emerging technologies and innovations and to identify opportunities in the market. | Framework strategy Consider the emerging technologies and innovations that the client or clients want to access through the framework in order to deliver the desired or required project outcomes, identify potential opportunities and limitations in the market and consider how the framework procurement and framework contract could optimise competition and improve market health. Framework procurement Embody pre-procurement learning and evaluate supplier proposals as to how emerging technologies and innovations will deliver the desired or required strategic and project outcomes. Framework contract Embody pre-procurement learning and structure the value improvement systems to incentivise and take advantage of emerging technologies and innovations. |
| Framework portfolios and longer-term contracting (Section 10 and Recommendation 10): Reduce procurement costs and improve value through the award of longer-term call-off contracts and the incentive of additional work. | Framework strategy Consider and establish the optimum duration, scope and continuity of call-off awards, including the scope for longer-term call-off awards and for additional project awards without additional mini-competitions, in order for suppliers to provide innovations and investments in new technologies that will deliver improved productivity and efficiency savings. Framework Procurement State the clients' commitments to call-off duration, scope and continuity, and evaluate suppliers' proposals as to how these commitments will affect innovations and investments in new technologies and the suppliers' delivery of improved productivity and efficiency savings. State the scope for longer-term call-off awards that aggregate programmes for work and for additional project awards without additional mini-competitions and evaluate suppliers' proposals as to how these prospects will affect innovations and investments in new technologies and the suppliers' delivery of improved productivity and efficiency savings. Framework Contract State the clients' commitments to call-off duration, scope and continuity and the suppliers' commitments in response to the prospect of longer-term call-off awards or additional project awards without additional mini-competitions. State how these commitments will affect the suppliers' innovations and investments in new technologies and the suppliers' delivery of improved productivity and efficiency savings. State clear obligations to drive continuous improvement in safety, time, cost and quality. |
| Harmonising, digitising and rationalising framework demand (Section 11 and Recommendation 11): Improve supplier investments in MMC and other offsite technologies by awarding framework call-off contracts for portfolios of work. | Framework strategy Consider how the framework could deliver client outcomes by accelerating the development and use of MMC, platform approaches, standard products and components. Consider how MMC, platform approaches, standard products and components could affect the suppliers' ability to plan, invest and deliver digital and offsite manufacturing technologies. Consider how value and outcomes could be improved by multiple clients procuring the framework together across portfolios of public works and by the development of cross-sector platform solutions. Framework procurement Evaluate supplier proposals to develop and use MMC, platform approaches, standard products and components. Evaluate supplier proposals to plan, invest in and deliver digital and offsite manufacturing technologies. Framework contract Structure the systems for call-off, value improvement and risk management to incentivise and take advantage of MMC, platform approaches, standard products and components supported by digital and offsite manufacturing technologies. Include the option of a sub-alliance to integrate the work of multiple suppliers and supply chain members across multiple framework projects. |
| Further embedding digital technologies through frameworks (Section 12 and Recommendation 12): Create a whole life golden thread of asset information using BIM and other digital technologies integrated under a framework alliance contract. | Framework strategy Consider: ■ how the framework can deliver client outcomes by standardising the approach to generating and classifying data, data security and data exchange ■ how performance, sustainability and value for money of projects and programmes can be improved through the effective retention and management of the 'golden thread' of building information being passed on from the design team to the facility operator via the contractor ■ how a common framework of standards and protocols will enable secure, resilient data sharing across organisations and sectors. Framework procurement Evaluate supplier proposals to improve performance, sustainability and value for money through the development and use of digital technologies. Framework contract Structure the systems for call-off, value improvement and risk management to: ■ integrate the whole life retention and management of digital contributions to the golden thread of building information so that it is passed on from the design team to the facility operator via the contractor ■ integrate a common framework of standards and protocols that will enable secure, resilient data sharing across organisations and sectors. |
| Framework early supply chain involvement (ESI) and Supply Chain Collaboration (Section 13 and Recommendation 13): Improve economic, social and environmental outcomes through framework early supply chain involvement (ESI), using Supply Chain Collaboration systems in all framework contracts. | Framework strategy Consider ways in which the framework can deliver client outcomes with improved value and reduced risk by formally engaging tier 1 suppliers alongside tier 2 and 3 supply chain members, strategically and in the pre-construction phase of framework projects. Consider the benefits to the framework of using Supply Chain Collaboration. Consider how ESI can obtain SME insights into MMC, innovative technologies, social value, eradicating Modern Slavery and ways to minimise the GHG footprint of proposed solutions across their whole lifecycle. Involve prospective tier 1 contractors and prospective tier 2 and 3 supply chain members in developing the framework business case. Framework procurement Evaluate supplier ESI proposals: ■ to reduce end-to-end programme timescales, identify opportunities, mitigate risks, develop solutions to the right quality levels and increase safety ■ to work collaboratively alongside other tier 1 suppliers and tier 2 and 3 supply chain members ■ to implement Supply Chain Collaboration systems for unlocking additional value and innovations. Framework contract Structure the systems for call-off, value improvement and risk management, and the framework pre-construction services agreements, so as to: ■ formally engage tier 1 contractors alongside the tier 2 and 3 sub-contractors and suppliers at a strategic level and in the pre-construction phase of framewwork projects ■ access industry experts' knowledge and experience in all tiers of the supply chain early in the project or programme lifecycle ■ collaboratively manage the relationships and interdependencies of supply chain members ■ state the Supply Chain Collaboration systems for unlocking additional value and innovations. |
| Outcome-based approaches to frameworks and call-offs (Section 14 and Recommendation 14): Incentivise innovative solutions by creating specifications for frameworks and call-offs that focus on required client outcomes. | Framework strategy Consider: ■ how the framework can deliver client outcomes using outcome-based specifications ■ how the framework can use a Project Outcome Profile to set clear programme and project outcomes that align with government strategic priorities ■ what IP rights the client or clients need and what IP rights are important to supplier business models ■ how to develop a whole life carbon assessment with the wider supply chain, reflecting ways of minimising GHG emissions across the life of the assets to be procured through the framework. Framework procurement Use specifications that focus on client outcomes rather than programme or project scope. State how IP might arise from the framework and how IP will be managed through the life of the framework. Evaluate supplier solutions accompanied by whole life carbon assessments and proposals for minimising GHG emissions across the life of the assets procured through the framework. Make clear the criteria for performance measurement, how they will be applied and how they will affect the award of future work and other supplier incentives. Framework contract State: ■ clear IP rights and responsibilities which reflect what IP the client or clients need and what IP rights are important to supplier business models ■ a mutually beneficial, open and collaborative approach for sharing ideas and innovative solutions ■ the criteria for performance measurement, how they will be applied and how they will affect the award of future work and other supplier incentives. |
| Delivery model assessments for frameworks and framework projects (Section 15 and Recommendation 15): Use delivery model assessments to inform and support framework strategies, procurement, contracting, management and call-off. | 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 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. |
| Framework benchmarking and Should Cost Models (Section 16 and Recommendation 16): Assess and control the costs of framework deliverables through the use of evidence-based benchmarks and whole life Should Cost Models. | Framework strategy Analyse information from past projects and programmes so as to make more informed and intelligent framework investment decisions and so as to better understand whole life costs and value. Undertake benchmarking of key framework deliverables including cost, schedule, GHG emissions and agreed outcomes at each stage of framework business case development. Framework procurement Use benchmarking and Should Cost Models to forecast the likely scale of the framework programme and the resources required for framework activities. Framework contract State: ■ the processes that create a Should Cost Model forecasting what each framework project or programme should cost over its whole life, including the build phase and the expected design life ■ how each Should Cost Model will be used to maintain controls over supplier and supply chain costs throughout call-off, ESI and other project processes ■ the system for benchmarking key deliverables in respect of framework projects including cost, schedule, GHG emissions and agreed outcomes ■ how the benchmarking system will affect the costing of subsequent call-offs. |
| Effective framework contracting (Section 17 and Recommendation 17): Integrate the mutual commitments of framework providers, clients, managers and suppliers through the terms of a Gold Standard framework alliance contract. | Framework strategy Consider and establish: ■ how the proposed framework contract will implement Construction Playbook policies in ways that are consistent with the components of the Gold Standard ■ how the framework contract can use alliancing arrangements to align commercial objectives, improve intended outcomes and drive greater value for money ■ how the framework contract and project contracts can promote collaboration and reduce waste, and how they can create positive relationships and processes designed to integrate and align multiple parties' commercial objectives and incentives ■ the benefits of using a standard form framework alliance contract and standard form project contracts with appropriate options ■ whether the proposed framework success measures and targets are relevant and proportionate to the size and complexity of the framework programme and framework projects ■ how Project Outcome Profiles can be used to set and measure the expected outcomes from framework projects. Framework procurement Evaluate supplier proposals in response to the clients' commitments to: ■ a framework contract designed to implement Construction Playbook policies in ways that are consistent with the components of the Gold Standard ■ alliancing arrangements designed to align commercial objectives, improve intended outcomes and drive greater value for money ■ a framework contract and project contracts that promote collaboration and reduce waste, and that create positive relationships and processes designed to integrate and align multiple parties' commercial objectives and incentives ■ a standard form framework alliance contract and standard form project contracts with appropriate options, or an explanation of why the framework programme or projects justify a bespoke approach ■ framework success measures and targets that are relevant and proportionate to the size and complexity of the framework programme and framework projects ■ use of Project Outcome Profiles to set and measure the expected outcomes from framework projects. Framework contract State: ■ how the framework contract structure and provisions implement Construction Playbook policies in ways that are consistent with the components of the Gold Standard ■ how the framework contract structure and provisions align commercial objectives, improve intended outcomes and drive greater value for money ■ how the framework contract structure and provisions create relationships, roles and processes that promote collaboration and reduce waste, and how they create positive relationships and processes designed to integrate and align multiple parties' commercial objectives and incentives ■ success measures and targets that are relevant and proportionate to the size and complexity of the framework programme and framework projects ■ how Project Outcome Profiles will be used to set and measure the expected outcomes from framework projects. |
| Framework risk management and allocation (Section 18 and Recommendation 18): Allocate risks based on framework market engagement and use joint framework systems for early risk mitigation and efficient responses to risk events. | Framework strategy Consider and scrutinise proposals for risk management and risk allocation to ensure they have been informed by genuine and meaningful market engagement. Framework procurement Evaluate supplier proposals to deliver better value for money and to focus on delivering agreed contractual outcomes, in response to client commitments to: ■ collaborative risk management throughout the commercial lifecycle that supports successful delivery and sustainable outcomes from the framework programme and each framework project ■ a proactive approach to identifying and managing risks and opportunities, using the framework contract and project contracts effectively to drive improvement, innovation and value throughout the commercial lifecycle. Framework contract State: ■ a shared system for the framework provider, clients, manager and suppliers, at framework level, to develop solutions that help eliminate, reduce and mitigate risks ■ use of ESI, through joint working before construction commences on each framework project, to develop solutions that help eliminate, reduce and mitigate risks and to ensure that risk allocation is appropriate ■ a proactive risk management approach for the framework provider, clients, manager and suppliers, at framework level and at project level, incorporating early warning and joint decision-making ■ alignment of risk management systems to the strategic outcomes set out in the Project Outcome Profile for the framework programme and each framework project. |
| Framework mechanisms for payment and pricing (Section 19 and Recommendation 19): Create transparent pricing mechanisms for frameworks and call-offs that maximise cost certainty and ensure prompt payment. | Framework strategy Consider and scrutinise proposals for payment and pricing to ensure that they incentivise the desired behaviours and outcomes, including commitment by clients and suppliers always to pay their supply chain promptly. Consider and establish how the framework contract and project contracts will create fair returns and payment expectations that attract interest from suppliers and support a sustainable market. Consider and establish pricing mechanisms and incentives that will achieve best value for money when procuring the framework and when calling-off framework projects. Framework procurement Evaluate supplier proposals in response to the clients' commitments to: ■ payment and pricing mechanisms designed to incentivise the desired behaviours and outcomes, including commitment by clients and suppliers always to pay their supply chain promptly ■ framework contract and project contracts designed to create fair returns and payment expectations ■ pricing mechanisms and incentives designed to achieve best value for money through the framework and when calling-off framework projects. Framework contract Include payment and pricing mechanisms and incentives designed to: ■ motivate the desired behaviours and outcomes, including commitment by clients and suppliers always to pay their supply chain promptly ■ create fair returns and payment expectations ■ achieve best value for money through the framework and when calling-off framework projects. |
| Economic and financial standing of framework suppliers (Section 20 and Recommendation 20): Reduce procurement costs by consistent and proportionate assessment of economic and financial standing using 'PAS91' or the 'Common Assessment Standard'. | Framework strategy Consider and establish: ■ an approach to assessing the economic and financial standing of prospective framework suppliers that is proportionate to the size, risk and complexity of the framework programme and the framework projects, and that is flexible and not overly risk averse ■ what stringency is recommended by the Contract Tiering tool, with higher thresholds for more critical projects ■ relevant standard information that can be obtained via the Supplier Registration Service. Framework procurement Use PAS91, the Common Assessment Standard or another recommended Standard Selection Questionnaire. Reflect the stringency recommended by the Contract Tiering tool, with higher thresholds for more critical projects. |
| Evaluating frameworks and call-offs (Section 21 and Recommendation 21): Evaluate proposals for frameworks and call-offs proportionately and consistently using balanced criteria that include quality, social value and net zero GHG emissions. | Framework strategy Consider and establish: ■ a clear understanding of value linked to desired and required outcomes ■ how these outcomes align to the government's wider priorities, including net zero GHG emissions by 2050 ■ how procurement of the framework programme and framework projects can drive value-based procurement ■ an evaluation system and criteria that focus on value over cost ■ a system and criteria that include evaluation of social value where the requirements are related and proportionate to the subject-matter of the contract ■ quality criteria that are sufficiently well developed and detailed to allow for the differentiation in scores between competing bids, so as to avoid close or identical quality scores that result in cost-based evaluation. Consider and establish work allocation procedures that reflect the objectives, success measures and targets of the clients and framework provider, and that incentivise performance by the prospective suppliers of their framework level and project level commitments. Framework procurement Evaluate supplier proposals in response to: ■ a statement of value linked to desired and required outcomes and linked to the government's wider priorities, including net zero GHG emissions by 2050 ■ a statement of how the framework programme and framework projects will drive value-based procurement ■ an evaluation system and criteria that focus on value over cost ■ evaluation of social value where the requirements are related and proportionate to the subject-matter of the contract ■ quality criteria that are sufficiently well developed and detailed to allow for the differentiation in scores between competing bids. State the links between work allocation procedures and performance incentives. Framework contract State the systems by which qualitative proposals, including social value proposals and net zero GHG emissions proposals, will be: ■ accepted and implemented at framework level and project level ■ reserved for later review and adoption, at the option of the framework provider and one or more framework clients ■ confidential to one framework supplier ■ shared for wider review and adoption by other framework suppliers. State a call-off evaluation system that is consistent with the framework evaluation system. State the links between work allocation procedures and performance incentives. |
| Resolution planning through frameworks (Section 22 and Recommendation 22): Establish shared and transparent framework systems through which to manage and mitigate the risks of a supplier's financial distress. | Framework strategy Consider and establish a resolution planning system for the framework provider, clients, manger and suppliers to manage any risk to the continuity of critical public works projects posed by the insolvency of critical suppliers. Framework procurement State open and transparent systems for resolution planning and ensure that suppliers understand and commit to implement these systems. Framework contract State transparent and flexible resolution planning systems, at framework level and project level, by which the framework provider, clients, manager and suppliers will act quickly in responding to and mitigating the effects of a supplier's financial distress. |
| Framework relationship management (Section 23 and Recommendation 23): Improve framework outcomes by creating collaborative systems for the management of framework relationships and strategic supply chain relationships. | Framework strategy Engage with the market and senior internal stakeholders to understand what type of relationships may be most appropriate for the proposed framework programme. Align the evaluation strategy with the intended supplier relationships. Align the framework contract terms with the intended supplier relationships, including risk allocation, liabilities, payment, incentive structures and management processes. Create flexibility in the framework contract to enable the types of relationship to change if required. Framework procurement State the commitment of the framework provider and clients to strategic supplier relationship management at an organisational and portfolio level. Evaluate supplier proposals to work together with the clients, manager and other suppliers in order to drive mutual understanding, solve problems more effectively and achieve better and faster delivery. Evaluate supplier commitments to implement strategic supply chain relationships. Framework contract State how the framework provider, clients and manager will act together with suppliers at an organisational and portfolio-level in order to drive mutual understanding, solve problems more effectively and achieve better and faster delivery. Align the contract terms with the intended supplier relationships, including risk allocation, liabilities, payment, incentives and management processes and with the suppliers' commitments to strategic supply chain relationships. State the terms of reference for a framework core group or equivalent joint decision-making group. State the strategic supplier relationship management systems by which the framework provider, clients, manager and suppliers: ■ jointly seek improvement in the value originally agreed and manage value improvement at an executive level ■ undertake joint strategy development, objectives and planning ■ commit to collaborative behaviour and working ■ jointly manage and monitor their relationships ■ jointly manage aggregated performance and risk. |