(for content published from 2018 onwards please see News and Users)
- Gentoo Housing Group have adopted FAC-1 for procurement of a major roofing programme across their stock in Sunderland, worth £43 million over 4 years.
- Leading UK and international consultants Aecom, Arcadis, Capita, Faithful & Gould, Gleeds and Mace have signed a multi-party FAC-1 with Crown Commercial Service governing new procurement models, BIM and other shared practices forming part of their Project Management and Full Design Team Services
- The first Italian FAC-1 has been adopted on an renovation project in Milan
- Westward Housing are using TAC-1 for procurement of their asset management contracts
- LHC on behalf of the Scottish Procurement Alliance have issued a Contract Notice under FAC-1 for £1.5 billion of housing and development projects including sheltered accommodation,care homes and student accommodation plus associated works including land purchases
- LHC on behalf of the Scottish Procurement Alliance have issued a Contract Notice under FAC-1 for £150 millionof project management, cost consultancy, architectural, structural engineering, building services engineering and other consultancy services
- LHC was established in 1966 by 13 London boroughs with objectives that included “the coordination of industrialised building projects” and “the establishment of common social and technical standards”. LHC is now a nationwide central purchasing body and has adopted FAC-1 on procurement programmes that include:
- Schools and community buildings with a projected aggregate value of over £5 billion
- New build housing with a projected aggregate value of £1.5 billion, including sheltered accommodation, care homes and student accommodation plus associated works including land purchases
- Related project management, cost consultancy, architectural, structural engineering, building services engineering and other consultancy services with a projected aggregate value of £150 million.
- FAC-1 has been selected by the UK Construction Leadership Council as the basis for King’s College London to create new model long-term agreements governing the strategic procurement of new build housing through “smart construction”, using digital technologies and industrialised manufacturing techniques.
- Places for People are using FAC 1 for procurement of lifts and a fire safety maintenance programme , creating an alliance between their selected contractors
- FAC-1 was shortlisted for a King’s Award as “Research Project of the Year 2017 “
- FAC-1 has been selected by LHC for a nationwide new build housing procurement
- The Italian translation and adaptation of FAC-1 was launched in Milan on Monday 2nd October 2017
- The FAC-1 English Electronic Contract is now available on the electronic portal
- International Construction Law Review Volume 34, Part 4, October 2017- “The Origins and Purposes of the FAC-1Framework Alliance Contract“
- FAC-1 chosen by Ecological Sequestration Trust and Resilience Brokers to support engagement with and integration of their partner organisations financing and implementing Global Goals in Human Settlements and City-Regions
- The FAC-1 Italian translation has been completed
- FAC-1 has been used on framework procurements with a total value of over £9.5 billion to date in conjunction with ICC, JCT, NEC, NHF, PPC and TPC project contract forms
- FAC-1 Bulgarian first draft translation has been completed and was discussed by Society of Construction Law in Sofia Thursday 5th October
- FAC-1 and TAC-1 areunder consideration by South East Consortium following discussion at an event organised by Savills on Friday 8th September
- TAC-1 has been chosen by Catalyst Housing Group for a programme of responsive, gas, planned and cyclical works with a total value of £210 million, starting at £10 million per annum and rising to £40 million per annum
- On Monday 7th July at King’s College London Crown Commercial Service launched the use of FAC-1 for collaboration between consultantsFAC-1 has been used by the UK Crown Commercial Service on their £2.8 billion national frameworks for the multi-disciplinary services comprising their Project Management and Full Design Services (“PMFDTS”). The appointed firms entered intoan FAC-1 contract with each other in order to agree ways to deliver better value services to their Government clients.Crown Commercial Service has entered into an FAC-1framework alliance with Aecom, AHR Architects, AMEC Foster Wheeler Environmental and Infrastructure, Arcadis, Capita, , Faithful & Gould, Gardiner & Theobald, Gleeds, Kier Business Services, Mace, McBains, Mott McDonald, Ridge, Turner & Townsend and WYG.The agreed FAC-1 Objectives are “to deliver Improved Value for the Client and for Users of the PMFDTS Framework Agreement and for this purpose to:
-Share and monitor best practice intelligence-Share and monitor learning between Projects and programmes of work-Establish, agree and monitor consistent and more efficient working practices-Agree and monitor techniques for better team integration-Agree and monitor improved procurement and delivery systems on Projects and programmes of work share and monitor other improvement initiatives created with contractors and other Supply Chain members”. The agreed FAC-1 Success Measures and Targets are:-“Evidence of progress and completion of Alliance Activities by the Core Group, by Special Interest Groups and by Alliance Members, in accordance with the Timetable-Enhancement of the reputation of the PMFDTS Framework AgreementAdditional users of the PMFDTS Framework Agreement-Additional work awarded by users of the PMFDTS Framework Agreement.The consultant alliance members have formed Special Interest Groups through which they are examining the potential for shared best practice and consistent approaches to early contractor involvement and BIM.”
- The FAC-1 Portuguese translation has been completed for use in Brazil
- Kier notified proposed sub-contractors and suppliers onthe Surrey County Council highways programme that they will create supply chain alliances worth £54 million using FAC-1
- FAC-1 comes to Italy -On Friday 9th June Professor Sara Valaguzza chaired a fascinating workshop at theUniversity of Milan to consider potential uses for the Italian translation of the FAC-1 Framework Alliance Contract, bringing together leading academics, lawyers, architects and engineers with senior Government and contractor representatives. The workshop assessed how specific projects could benefit from this new standard form that integrates the work of all consultants, contractors and specialists around common objectives and success measures, and that provides a common contractual platform for BIM contributions, licences and interfaces
- TAC-1 Official Launch –On Monday 5th June 2017 at Somerset House the first users of the TAC-1 Term Alliance Contract described their experience of procuring a new term alliance. Paul Wenham of Southern Housing Groupexplained to over 60 delegates that Southern’s objectives, set out in TAC-1 Schedule 1, are to “work collaboratively to achieve value for money, efficiency and best working practices” through an Alliance “dedicated to agreed common goals and an understanding of each other’s expectations and values“.
- In 2016 Southern commissioned soft market-testing as to views on different contract forms and found that over 80% of contractors preferred the TPC2005 term partnering contract compared to the JCT and NEC term contracts. Then, advised by Cameron Consulting, Southern opted to trial the improvements embodied in TAC-1 as the successor contract to TPC2005 even before the new form was published. TAC-1 follows a year of research and industry consultation led by the King’s College Centre of Construction Law, creating a new form that combines the best of TPC2005 with the structure and features of the well-received FAC-1 Framework Alliance Contract.
- Order 1 for design development and preparation of “Project Task Proposal”
- Order 2 to undertake the works in accordance with the “Project Task Proposal”, agreed price and timetable.S
- Southern Housing Group awarded the first ever TAC-1 contracts to Amber Construction, Chas Berger, DW Support Services and AD Construction for planned and cyclical asset management worth over £23 million per annum. As TAC-1 “Providers” , the four companies will also undertake design services, will obtain input from early-appointed sub-contractors and will create common supply chains seeking improved value for Southern. These initiatives are supported by the TAC-1 clause 6 system of “Supply Chain Collaboration“, with alliance activities mapped out in the Schedule 2 Timetable and Schedule 3 Risk Register. Southern has a £23 million annual spend on its stock reinvestment programme comprising planned maintenance (£20 million) and cyclical decorations (£3 million).
- Southern needed to set up a contract delivery model based on regional approach in four contract areas and to achieve better integration between planned maintenance, cyclical decorations, development and maintenance, plus strategic collaboration to reduce risk and maximise benefits. Southern used the TAC-1 Term Alliance Contract to:
-Reduce the number of contracts and contractors we work with
-Reduce procurement activity
-Reduce reliance on external consultants and to build an “in-house” delivery team
-Improve efficiency in project delivery
-Maximise benefits for collaborative working
-Develop common supply chains.
- The agreed TAC-1 alliance member objectives were
-To work with the Client in a spirit of trust, fairness, mutual cooperation, dedication to agreed common goals and an understanding of each other’s expectations and values
-To work with the Client to maximise its investment in its assets in line with the Group Asset Management strategy
-To work with the Client to meet its objectives in respect of Public Services (Social Value) Act 2012
-To maintain and improve homes to improve lives for the customer
-To work collaboratively with the Client and its customers to excel in customer service
-To work collaboratively to achieve value for money, efficiency and best working practices.
- Southern had undertaken successful previous projects of a similar nature under TPC2005 and received a very positive industry response as to the use of TPC2005 in its soft market test undertaken in 2015/16 and in its “Meet the Buyer” meetings.
- Southern developed a two stage TAC-1 ordering process comprising:
- Order 1 for design development and preparation of “Project Task Proposal”
- Order 2 to undertake the works in accordance with the “Project Task Proposal”, agreed price and timetable.
- The Price Framework comprised:
-Basket Rates for Component Renewal
-Fixed prices for “Property Archetypes” for Cyclical Decorations
-NHF v7 SOR for all other works
-Percentage bandings for site overheads, central office overheads & profit.
- TAC-1 provided for:
-“Included” design covered in site overheads
-Provision for “Excluded” design
-Early supplier involvement in design, for example kitchen suppliers.
- Already a second client, Catalyst Housing, has selected the TAC-1 contract as the basis for a major programme that will go to the market in August 2017
AFFARITALIANI 20.06.17 The State University (“La Statale”) of Milan tries out FAC-1 standard contract.
“A project for a new approach to contracts and procurement was launched at the Faculty of Jurisprudence of the State University of Milan. A closed meeting took place at the Faculty to discuss the future of standard contracts and procurement. A new way to conceive of contracts: no longer a place for ambiguities and dangers of interpretation but a collaborative open book.
This meeting continued the debate on Legal BIM started last December: academics, institutions, public bodies, firms and associations met up to talk about [FAC-1] the first model of a collaborative contract to be tried out in Italy.
This interdisciplinary work group, instigated by Professors Sara Valaguzza, Giuseppe Di Giuda and Angelo Ciribini, has translated, studied and adapted to the national context a standard multilateral contract for the management of public and private contracts, created by the Director of the Centre of Construction Law at King’s College London, Professor David Mosey.
In the United Kingdom, less than a year after its creation, this standard contract has been applied successfully to projects worth more than £9.5 billion. The idea is to experiment, in Italy too, with a standard contract which regulates in detail the collaboration between the various professions involved in a specific project and rewards the added value of collaboration, while facilitating in parallel the spontaneous use of BIM, as observed by engineers..
“The way we see it”, says Professor Sara Valaguzza, “this will reward, immediately and at market prices, the good faith of the contractors and their promised performance, thus reducing any advantage from disputes or from obstructing the demands and objectives of the overall project.”
A handbook containing the basic rules of collaboration as an antidote to extra costs and to the protracted time of realising public works – what the representatives of public administrations wish for. At the meeting were present representatives of the Ministry of Infrastructure, the Municipality of Milan, Assimpredil, ANCE, the Milan Chamber of Commerce, Digicamere, the Sardinia Region, ANAS, Tar Milano and members of the Ministerial Commission for the BIM Decree, Italferr, EAPPP (European Association of Public and Private Partnership). They applauded the initiative, recognising the benefits that collaboration would logically bring to their contracts.
Unimi offered to launch a pilot project. The Municipality of Milan, ever ready to experiment with transparent and innovative methods in the field of public contracts, has volunteered to study the project in depth together with the Ministry, which has agreed to participate in the working group.”
- In its first 12 months since publication FAC-1 has been adopted on procurements in the public and private sectors worth a total of over £9.5 billion
- FAC-1 has been adopted by Your Housing Group , advised by Savills and Trowers & Hamlins, on procurement of a £44.5 million programme of planned investment works
- PIN notice issued for intended use of TAC-1 by Catalyst Housing Group
- The German translation of FAC-1 has been completed
- The Italian translation of FAC-1 has been completed and circulated for consultation with clients and industry representatives including the Municipality of Milan, the Ministry of Infrastructure and Transport, the Administrative Courthouse of Milan and Associations of Construction Companies
- The first TAC-1 contracts fora £23 million per annum programme of planned and cyclical asset management were awarded by Southern Housing Group to AD Construction, Amber Construction , Chas Berger and DW Support Services, with provisions for early involvement of sub-contractors, a shared supply chain and a shared commitment to “work collaboratively to achieve value for money, efficiency and best working practices ” supported by “dedication to agreed common goals and an understanding of each other’s expectations and values”
- Building Magazine article 19.05.17 “Forming Frameworks“- “Clients are more familiar with JCT, NEC or FIDIC than with PPC2000, but none of these single project contracts can create the links needed for a team to learn from one project to another”
- RESOLEX newsletter 04.05.17 – http://www.resolex.com/fac-1-and-the-future-of-collaborative-procurement/
- @CCUKLTD has delivered successful contract training on both FAC-1 (to Football Foundation) and TAC-1 (to Southern Housing)
- Football Foundation appointed Gleeds as Alliance Manager and Cameron Consulting as Independent Adviser on their FAC-1 contract
- The European Bank for Reconstruction and Development obtained a briefing on FAC-1 and has decidedto review its potential value under pilots with selected clients
- AmicusHorizon entered into a FAC-1 contract with Axis Europe, Keepmoat, Kier Services, Mears and Osbornefor a £150 million maintenance programme which is also open to other housing associations as Additional Clients
- Award to Western Building Systems, Integra Buildings, Extraspace Solutions, Ashley House and Portakabin of£150 million FAC-1 contract for modular programme commissioned by Football Foundation, Football Association and Sport England
- FAC-1 presentation at University of Stuttgart
- Savings and improved value under Futures Housing Group FAC-1 programme recognised in the Government Opportunities Awards
- Licence agreed with Aroeira Salles for translation of FAC-1 into Portuguese for use in Brazil
- FAC-1 reviewed by 150 delegates at King’s College London Open Forum as medium for integrating ICC, JCT, FIDIC and NEC project contracts
- FAC-1 selected as strategic contract for infrastructure on major London neighbourhood development
- UK and international standard forms- what is new in 2017? KCL Centre of Construction Law Open Forum attended by over 150 delegates reviewing FIDIC, JCT2016, NEC4, ICC updates and the use of FAC-1 to integrate related projects and related two party contracts
- “The Construction Centre for Law and Management (CCLM), a competence centre jointly established by Politecnico di Milano, University of Brescia and University of Milan, has attempted to deal with the legal challenges included within the BIM-based contracts, to enable the innovative collaborative procurement routes, chiefly through the transposition of the UK-oriented FAC-1 framework…The CCLM’s point of view is that early efforts concerning FAC-1 could be addressed mainly towards major projects, such as large educational facilities and underground infrastructures. The systemic attitude of those undertaking such major programmes seems more suitable to be managed by means of the relational collaborative contracts such as FAC-1 because they reflect an interwoven network of separated contracts to be consistently interlinked. The FAC-1 transposition to the Italian legal framework could play a major role for the other EU member states, close to the civil law.” Reported in CIOB BIM+ 21 March 2018, and by the University of Cambridge Centre for Digital Built Britain 22 March 2018
- FAC-1 adopted on £20 million procurement by Royal Borough of Greenwich of a programme of mechanical and electrical engineering works
- Project Management International (PMI) Webinar on FAC-1
- Centre for Transnational Legal Studies Colloqium on FAC-1
- Presentation on FAC-1 to European Bank for Reconstruction and Development
- Joint PMI UK Virtual Events and Construction Forum Webinar : The FAC-1 Framework Alliance Contract – Typical Pitfalls and New Solutions Providing an in depth exploration of the new FAC-1 Framework Alliance Contract highlighting methods to create integrated frameworks whilst improving value and working effectively with the supply chain. Case studies from Ministry of Justice, Surrey County Council and Futures Housing Group (the first adopters of the FAC-1 contract)
- Futures Housing Group’s FAC-1 procurement shortlisted for 2017 GO Procurement Innovation / Initiative of the Year Award
- Licence agreed with Bulgarian Society of Construction Law for translation of FAC-1 for use in Bulgaria
- Licence concluded with University of Milan for translation and publication of FAC-1 in Italy
- FAC-1 included in £800 million procurement by LHC of schools and community buildings in Scotland
- FAC-1 presented at International Construction Law Association conference in Dubai
- FAC-1 adopted on £5.5 billion procurement by LHC of schools and community buildings in England and Wales
- Stephen Woodward, Guest Editor of Construction Law January/February 2017, noted that “in case studies testing the new FAC-1 standard form framework alliance contract…potential disputes have been averted through joint working under a collaborative governance system”.
- “Explaining the FAC-1 Framework Alliance Contract- what is it all about?” , blog by David Mosey for LexisNexis
- Stephanie Canham, “In the frame” in Building magazine “At its heart FAC-1 provides a collaborative approach to improve value in the procurement of any type of works, services or supplies”
- Tony Bingham, “The book group” in Building magazine “So this FAC-1 is a standard form basis unlike any other, creating a basis for awarding and integrating any of the framework works, services and supplies”
- AmicusHorizon commence multi-client procurement under FAC-1 in respect of maintenance, repair and improvement works worth up to £250 million
- Presentation of FAC-1 at “Legal BIM” conference hosted by University of Milan
- Article by Dr Louis Gunnigan on FAC-1 and BIM, in BIM Ireland.ie and Irish building magazine
- Tenders returned for FAC-1 procurement of £150 million modular programme by Football Foundation, Football Association and Sport England
- Publication of TAC-1 Term Alliance Contract
- TAC-1 Term Alliance Contract endorsed by Construction Industry Council and Constructing Excellence
- Southern Housing commence procurement of £7.5 million small planned works frameworks using FAC-1
- Futures Housing Group report 10% savings agreed by group of 23 SME contractors under FAC-1 plus improved materials supply through Travis Perkins, improved cash-flow and improved local training support
- TAC-1 Published by Association of Consultant Architects
- FAC-1 presented for consultation with Singapore Institute of Architects , Melbourne Law School, Clayton Utz , Hong Kong Mass Transit Authority, Hong Kong Housing Authority and Hong Kong City University
- North Devon Homes commence procurement under FAC-1 of a £40 million multi-contractor framework for affordable new build and assisted living developments
- Crown Commercial Service notify bidders on £2.8 billion national consultant frameworks that they will use “FAC-1 or equivalent” in order to integrate services and improve value in each lot
- RADAR Roundtable considers FAC-1 and records introductory youtube video (see Homepage)
- Procurement under FAC-1 commenced by Football Foundation, Football Federation and Sport England on £150 million national changing rooms programme led by modular suppliers and framework management consultants
- FAC-1 presented and debated at University College Dublin conference “Collaboration and Partnering in Irish Procurement” (recorded on youtube) and in interview on RTE Radio 2 “This Week”
- FAC-1 discussed by over 100 delegates attend ASG Power of Alliancing conference, including sessions led by KPMG, Savills, Surrey County Council, Osborne and King’s College London
- FAC-1 presented at London Build 2016 by Association of Consultant Architects
- Futures Housing Group commence procurement of employer’s agent frameworks using FAC-1
David Mosey and Deirdre Ni Flhoinn interviewed by RTE Radio, Ireland 10.16
- FAC-1 presented at Lean In The Public Sector conference in Helsingor, Denmark
- Consultation draft of Guide to FAC-1 provided to delegates at seminar hosted by Trowers & Hamlins
- Licence concluded with Breyer Rechtsanwelte for translation and publication of FAC-1 in German
- “A First for Frameworks” ,Construction Law, Aug/Sept 2016 “Bid costs have been reduced significantly using a pilot version of the new [FAC-1] contract”.
- RADAR Roundtable “Building Collaboration within Frameworks” 09.16
“An engaging presentation on FAC-1 as the workflow of a framework with the benefits of an alliance highlighted the fundamental question of “Why if you want collaboration would you use an adversarial contract?”. From this examples abounded of where frameworks go wrong culminating in the hypothesis of “Can alliancing rely on good faith?”
In answer to the questions of “Why do we need a framework alliance contract?” And “Why is FAC-1 significant?” it emerged that good frameworks and good alliances leave a gap in the market for a new standard form of multiparty contract linking stakeholders and supply chain to the client as alliance members managed by an alliance manager. An essential of a framework alliance is that of making the parts into a greater whole so that what you do together improves the value. A major component is new ways of engaging the supply chain.The exemplar Surrey County Council Project Horizon was quoted as a pilot for testing much of the thinking behind the contract.
Key factors are the addressing of sustainability, governance, early warning and alternative dispute resolution options.
The philosophy behind the new contract is given in the RADAR Talk https://youtu.be/9qgZIwqF9bI
FAC-1 is not a project contract and is the result of collective endeavour. It works across cultures on the basis that empowering away from client and project manager to a group increases collaboration and increases motivation.
Can collaborative working be defined? Is it a set of values? Is the measure of collaboration in the machinery of good faith? Can good faith be evidenced?
A good early warning system is essential. There can be an undermining of contracts and workshops if contracts encourage silos.”
- Infrastructure procurements using FAC-1 commenced by Graven Hill, the UK’s largest self-build community
- “Framework forces competitor collaboration”posted by Andrew Allen 10 .08. 16
Back left to right: John Thornhill, John Forde (senior associate, Trowers and Hamlins), Ian Skipp (group finance director, Futures) and Martin Sherman (executive director of finance, Futures). Front: Professor David Mosey
“A housing association in the East Midlands is the first to use a new framework contract that connects competitors and encourages them to work together. Futures Housing Group has adopted the Framework Contract Alliance (FAC-1), which not only makes it easier for small businesses to bid for deals, it sets shared objectives for those on the framework.
Professor David Mosey of King’s College London was commissioned in 2015 by the Association of Consultant Architects to create new forms of framework alliance.
He said of FAC-1: “The benefits are that you combine the pipeline of work under a framework using the shared objectives of an alliance.
“In other words, you’re connecting people who think they are competitors and saying ‘there’s a pipeline of work from us and there are ways of working together for your benefit and ours’. It uses the throughput of work to make people more innovative and collaborative.”
Alliance members are expected to work together to improve value, share information on suppliers, review and compare prices and tender or renegotiate subcontracts. Mosey originally drafted PPC2000 and has since worked closely with the UK government on trial projects to analyse the savings and other benefits of the ‘two stage open book’ procurement and delivery process. The results of these trials were included in guidance launched by Sir Vince Cable in July 2014.
Futures Housing Group, which manages more than 9,000 homes, said the impact of the framework alliance could be clearly seen in its latest process. Head of procurement John Thornhill, said: “The first contract we’ve put out under these new rules, for planned maintenance works, has seen around 90 businesses bid – which is unprecedented. The changes to the law have put us in touch with smaller businesses that previously weren’t able to afford to work with us, for example due to cash flow constraints if they took up a works programme.”
The new contract, which was launched on 2 June, combined with the latest procurement rules has enabled SMEs to tender for parts of bigger overall frameworks with Futures, creating healthier competition in the market and giving the organisation more resources to draw on. The approach is designed to be easy to understand and to help improve legal compliance as well as better value for money.
Mosey said of Futures: “This is the first not only for the housing sector, but in any sector in terms of the use of the contract – there’ll be a lot of people coming behind.”
The guidance says it fills a major gap in the market and can also be used with JCT, NEC, FIDIC and any other standard form construction contract.”
- First FAC-1 signed in at Donnington Park Formula 1 racetrack for £30 million housing works programme led by Futures Housing Group and concluded between five clients and 23 contractors
- King’s College London Centre of Construction Law publishes research report “Enabling BIM Through Procurement and Contracts“ recommends option of multi-party protocol (see FAC-1 and BIM)(https://www.kcl.ac.uk/law/research/centres/construction/enabling-bim/ebimtpac-form.asp)
- Christopher Pedder, “Alliancing revolution: New contract targets better relationships” in Construction News11.07.16 “FAC-1 can also be used for ‘additional clients’. This is a significant benefit for the public sector, where lead authorities seek to act as central purchasing bodies for other public sector authorities”.
- FAC-1 published by Association of Consultant Architects
- FAC-1 launched at Collaborative Construction Conference chaired by Sir John Armitt and hosted by Pinsent Masons
- FAC-1 presented at Constructing Excellence seminar in Manchester hosted by Trowers and Hamlins
- First trial of TAC-1 Term Alliance Contract commenced by Southern Housing Group
- FAC-1 endorsed by Constructing Excellence and Construction Industry Council
- Francis Ho, Head of Construction at Olswang, “A Frame of Mind” on FAC-1 in Building magazine 18.03.16 : “It will take an effort to shift developers off their beloved custom frameworks but at least there’s now a convincing alternative for those with the desire to explore more meaningful collaborations”.
- Consultation draft of FAC-1 provided to over 200 delegates at King’s College London Centre of Construction Law Open Forum
- First trial of FAC-1 commenced by Futures Housing Group
- ACA Annual Conference in Bicester reviews FAC-1 under themes linked to improving value, BIM, BS11000 and international adoption
- First consultation draft of FAC-1 Framework Alliance Contract created by King’s College London and provided to 120 Consultation Group members for comment