News and Users
(for content published before 2018 please see Archive)
Homes in Sedgemoor , an ALMO for Sedgemoor District Council, have used FAC-1 to procure their Great Estates and 5* Homes, comprising neighbourhood improvement works, estate refurbishments, cyclical decorations, 5* homes and major void. This is a 5 year contract with a possibility of an extra 3 years plus 2 years subject to performance, and is split in to two Lots – North and South area with 2 contractors to be appointed. Its value is between £2 million and £4.5 million per annum per lot.
LHC have procured a range of new frameworks under FAC-1 for:
- Housing Contractors
- Supply and Installation of PVC-U and Timber Window and Doors
- Supply of kitchen worktops and units
LHC will soon make be available additional frameworks under FAC-1 :
- Construction Consultants
- Offsite Housing Manufacturers and Contractors.
Over recent months LHC have recruited regional FAC-1 Alliance Managers in Scotland, Wales and South West England.
The Surrey County Council Trial Project using FAC-1 and TAC-1 prototypes featured as a client-led case study of enterprise roles and responsibilities in the ‘Project 13 Blueprint‘ published by the Institution of Civil Engineers in May 2018.
The Futures Housing Group case study of FAC-1 in use featured as an example of good procurement practice in two construction industry reports, namely ‘Stopping building failures‘ published by the Housing Forum in June 2018 and ‘Procuring For Value’ published by the Construction Leadership Council in July 2018.
Cartrefi Conwy in Wales are using an FAC-1 for an asset management consultancy framework , potentially acting as a Central Purchasing Body to make the new framework alliance available for use by other UK contracting authorities.
Liverpool City Council expect to use FAC-1 for the procurement of their new housing framework.
South Liverpool Housing are signing up TAC-1 with the Avela joint venture (comprising South Liverpool Housing and Penny Lane Builders) for their responsive repairs programme and separately for new build housing development.
LHC are using FAC-1 to procure a full range of consultant services with an total estimated value of £70 million for public sector clients in South West England. These services include: a) Architect; b) Structural Engineer; c) Civil Engineer ; d) Building Services Engineer; e) Quantity Surveying; f) Clerk of Works; g) Health and Safety Adviser; h) Project Management; i) Employers Agent; j) Contract Administrator; k) Principal Designer .
LHC are using FAC-1 to procure modular and other new build housing for public sector clients in the South of England, with a total estimated value of £600 million.
Sam Ulyatt and Kevin Murray of Crown Commercial Service willbe keynote speakers at the Alliance Steering Group conference Collaborating for Value, on Friday 5th October 2018. They will explain how they are using FAC-1 to deliver a new generation of consultant and contractor framework alliances. Please see ‘Conferences’ for further details.
John Skivington of LHCand Sara Valaguzza of Milan University are among the speakers at an FAC-1 Masterclass on Saturday 6th October 2018.Please see ‘Conferences’ for further details.
King’s College London is appointed by Construction Leadership Council , with a grant from the Department of Business Energy and Industrial Strategy, to develop model form contracts for long-term strategic relationships that:
- Facilitate the strategic procurement of new build housing
- Focus on off-site and modular solutions
- Enable smart construction
- Help to deliver improved value for clients and supply chain members.
King’s has created a strategic model form that is designed:
- For use in strategic procurements by clients who wish to evaluate the quality, cost and flexibility of alternative solutions
- To integrate the roles of clients, consultants, contractors and manufacturers and the influence of stakeholders and regulators
- To integrate other contracts governing site purchase, funding, design, planning, construction and manufacture.
The new model form is based on FAC-1 and is designed to be flexible to specific client/supplier needs, incorporating model templates and schedules that outline:
- Forward annual volume requirements over 3 to 5 years
- Appropriate measures to manage risk transparently and to increase performance, capacity, investment and rewards
- Behavioural and cultural commitments.
Gentoo have entered into an FAC-1 framework alliance with Mears, Kier, Esh Group and Keepmoat/Engie.
Southern Housing Group have entered into an FAC-1 framework alliance with the following SME contractors: AD Construction, APC Building Services, DW Support Services, MCP Property Services, Quinn London,Seville Construction and Cablesheer Construction.
The Union of Municipalities Adda Martesana has advertised the first FAC-1 contract in Italy, for construction of a lower level high school using Building Information Modelling and with an approximate value of Euros 5 million .
Your Housing Group has entered into an FAC-1 framework alliance with Wates and Keepmoat for their £61 millioninvestment programme and are in the processing of signing up the constructors for mobilisation in May.
Places for People have used FAC-1 for a programme of fire alarms and lift maintenance with respective values of £6 million and £10 million.
South Liverpool Housing are using TAC-1 for a joint venture with Penny Lane Builders for repairs and maintenance with an approximate value of £ 103.5 million.
Gentoo Housing Group are using FAC-1 for a second procurement, comprising a programme of planned maintenance works with an approximate value of £43 million.
- “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
- The Football Foundation have advertised a £60 million national programme using FAC-1 for the design and construction of mini-pitches. The Football Foundation, Football Association and Sport England, advised by Cameron Consulting, used FAC-1 to procure two national works programmes with £ 150 million and £60 million.Their drivers were the FA Chairman’s Report in 2014 which cited that “Players and coaches repeatedly tell us that the quality of pitches (and their associated facilities) is a barrier to both recruiting and retaining players”, and that “Wider social & community benefits from increased physical activity including the fight against preventable diseases, improving cohesion, and personal development for young people”The first programme was an FAC-1, combined with JCT building contracts, for Modular Build Changing Rooms using
- £150m investment
- Match funding from Applicants
- £60m investment
- Integrating mini-pitch with Changing Rooms facility through interface protocol
- To integrate specialists and consultants rather than depend on main contractors
- To create flexibility through Joining Agreement for Additional Clients.
- Central Bedfordshire Council are using TAC-1 for a £200 million, 10 year programme of capital works, responsive repairs and voids servicing.
- The first three FAC-1 procurements have been announced in Italy, as an integrator of team members engaged on a private sector urban regeneration project, on a new university campus and on a public school using BIM. The Milan Union of Municipalities Adda Martesana advertised the first FAC-1 contract in Italy, for construction of a lower level high school using Building Information Modelling and with an approximate value of Euros 5 million. The project in BIM is highly detailed (as the Italian Code of Public Contract requires for work public procurements) and has been thoroughly reviewed by the Politecnico di Milano; the objective for the use of FAC-1 is to finish the works in a very short period of time and to avoid any changes to the project and any disputes among the parties. Tenderers were evaluated on proposals in relation to the building envelope, availability of construction materials, technical characteristics, environmental requirements, functioning and components, efficient use of resources, safety, working site management and maintenance. The FAC-1 will be awarded under MEAT criterion (80 technical, 10 financial, 10 time)Profit and overheads are fixed according to DPR n. 207/2010 and correspond to 10% profit and 13-17% overheads. The design consultant and coordinator is the Politecnico of Milan. the CCLM will provide assistance for the use of FAC-1 (UNIMI for the Legal part and Politecnico for the drafting of the timetable and the BIM management). The project contracts linked by FAC-1 will connect the client, the contractor, the Politecnico (as design consultant and coordinator) and the safety coordinator (already appointed).”
- The first use of FAC-1 in Kazakhstan has been announced, as a strategic integrator of multiple FIDIC contracts on the Shalkia Zink and Lead Deposit mining project.
- Kier are finalising procurement of their £54 million contractor-led highways supply chain alliance using FAC-1, and presented their case study alongside Surrey County Council at a Resolex event on 1st February. This was presented as a case study at a Resolex smeinar on 1st February 2018, the outputs form which can be reviewed at http://www.resolex.com/roundtable-output-building-a-supply-chain-alliance/. Surrey County Council and Kier are parties to the Lot 1 TPC2005 Core Highways Maintenance Contract, a 6-year term partnering contract 2011 – 2017 with an option to extend by up to 4 years and with an original scope of immediate response, safety defects, winter Service and minor planned works. The option was exercised to extend the contract to 2021 with a new Partnering Timetable
- Incorporating a revised commercial model
- Including re-procurement of the Kier supply chain for capital schemes (up to 70% of Lot 1 budget)FAC-1 was adopted by Kier for its supply chain re-procurement in order to deliver the strategic goals of:
- Increasing collaboration between SCC, Kier and the supply chain
- Achieving the objectives of the Surrey Business Plan
- Demonstrating value for money, targeting a 2.5% saving off the 15/16 capital programme expenditure
- Developing a sustainable supply chain through to 2021.The re-procurement provided an opportunity to broaden use of alliances
- Consolidate Project Horizon experience
- Maximise benefits for Surrey
- Strengthen all parties experience in alliance and collaboration
- Provide the supply chain with visibility and continuity
- Improve supply chain relationships and confidence.Steps were taken to ensure the Surrey / Kier team were aware of FAC-1 requirements (including engagement with the Kier in-house Legal to confirm suitability of FAC-1 to co-exist with TPC2005 / STPC2005 arrangementsKier informed the supply chain of its alliance intentions which gained unanimous support and provided a ‘Lot 1 in Practice’ – user guidance for alliance activitiesAlliance member commitment to:
- Adopt and participate in early contractor involvement (“ECI”)
- Share and/or improve working practices for the benefit of Surrey and the Term Programme
- Attend other framework review meetings as required in order to achieve improved value
- Implement social value proposalsThe agreed target is that 90% of the projects ordered by Surrey as capital schemes are able to evidence the use of ECI, with a record of ECI benefits maintained by the Alliance Manager to demonstrate material benefits at either feasibility or construction stageThe immediate benefit of the re-procurement exercise is a saving of circa 8% against prices under the previous contract model. There is also a level of social value put forward by the supply chain although this is turnover dependant. The predominant areas are (i) developing local supply chains, (ii) increasing spend with local suppliers, (iii) creating local employment / skills development opportunities and (iv) encouraging local recruitment.
- The procurement team at Orbis ( a collaboration between Surrey County Council,East Sussex County Council and Brighton & Hove District Council), are exploring the potential for FAC-1 to help integrate the provision of adult social care.
- Epping Forest District Council have adopted FAC-1 as the basis for their framework to deliver up to £25 million of new build homes. They will appoint 4 constructors and 2 consultants (multi-disciplinary and employer’s agent) and will use FAC-1 to support collaborative working, improved value and the integration of separate JCT 2016 project contracts and bespoke consultant appointments
- Consultation is complete on the Construction Leadership Council initiative to create a new model strategic appointment based on FAC-1 , designedas a means to increase efficiency and output of new build housing through collaborative working with contractors and manufacturers