News and Users
HMP Five Wells’ has won the Constructing Excellence National Building Project of the Year 2022. The team was led by Ministry of Justice UK and Kier Group with Bison Precast, Banagher Precast Concrete, ASSA ABLOY, PCE, Mace, Pick Everard, HLM Architects, Arup, Curtins and WTP.
The Ministry of Justice procurement and contracting model included a range of collaborative relationships and processes, both at strategic level using a prototype for FAC-1 and at project level using PPC2000. These multi-stage, multi-party contracts described and supported the efficient use of BIM, MMC, early supply chain involvement and successful joint risk management – techniques that in turn led to innovations, sustainable designs, new opportunities for local and regional businesses, new jobs and training plus cost certainty and measurable savings in time
Constructing Excellence reports that:
‘HMP Five Wells represents a step change in the evolution of offsite manufacture and sets new standards for excellence in innovation, collaborative working and sustainability. Completed on time and to budget, the prison provides around 1,700 places and features a design that is 80% standardised. This design is the first of its kind and will be used to deliver a further five new prisons in the coming years.
With repeatable, standardised components, the use of offsite manufacturing and sustainable features making it 70% more energy efficient than traditional facilities, HMP Five Wells is a brilliant example of the use of Modern Methods of Construction and provides a blueprint for infrastructure delivery for the construction industry. Its innovations will result in better outcomes both for the prison estate (faster, greener, more efficient delivery) and for prisoners. Secure barless windows and smaller wings support rehabilitation by creating more normalised surroundings.
Three Winning Facts:
– Standardised design
The prison design is 80% standardised and repeatable, allowing it to be used across the next 20,000 prison places for the MoJ.
– Offsite manufacture
Our innovative use of offsite manufacture saved 30% in on-site resource and resulted in assembly that was 22% faster than traditional construction.
– Social value
The project generated a £135m social return on investment. Key achievements include the creation of 227 new jobs, 27 of which were filled by ex-offenders. Over the course of the project we recruited 19 ex-offenders and 8 men on ROTL, helping us to exceed the prison leaver employment target by 36%.’
FAC-1 is being used to deliver the second biggest project in the UK after HS2.
Using innovative contractual systems set up under the overarching Crown Commercial Service FAC-1 construction framework alliance, the Ministry of Justice UK has created its own FAC-1 alliance to procure their £1.2 billion New Prisons Programme.
The Ministry of Justice FAC-1 alliance integrates the work of ISG, Kier Group, Laing O’Rourke and Wates Group as contractor Alliance Members, working with Mace as Alliance Manager, WTP as cost consultant and Perfect Circle as design consultant. FAC-1 supports the alliance members in their use of BIM and MMC to agree optimum designs and strategic relationships with key tier 2 Supply Chain members. Engagement with tier 2 Supply Chain members is led jointly by the four contractor Alliance Members and the Alliance Manager, so as to be free from an additional public procurement process.
The Ministry of Justice alliance is using the FAC-1 system of ‘Supply Chain Collaboration’ to agree strategic commitments with tier 2 Supply Chain members for each key package, bringing them into the alliance and preserving their collaborative commitments to efficiency and improved value after the award to each contractor Alliance Member of an NEC4 construction phase contract.
The Ministry of Justice FAC-1 alliance contract also creates an Integrated Information Management Contract (‘IIMC’) that connects the licensing of intellectual property rights to the BIM contributions of Alliance Members and Supply Chain members across the four prison projects.
Details of the Ministry of Justice FAC-1 alliance are set out in Government guidance published in September 2022 at https://lnkd.in/ezvZvm2b 20220901-Early-Supply-Chain-Involvement-Guidance-Note.pdf assets.publishing.service.gov.uk
On 14th November Haringey Council launched an £800 million housing procurement using the FAC-1 framework alliance contract in conjunction with multiple TAC-1 term alliance contracts. Haringey will use these contracts to deliver and integrate the work of four Service Providers over a 10.5 year programme running from November 2023 to March 2034.
The Council will use the FAC-1 and TAC-1 contracts to support its Objectives, Success Measures and Targets for a range of ambitious investment plans that include:
– Ensuring that all its housing meets the Decent Homes Standard by 2025
– Energy improvements to deliver its zero carbon targets and ensure that all Council-owned homes have a minimum rating of EPC B by 2035
– Regeneration works at the Broadwater Farm estate
– New homes including infill, conversions and rooftop developments
– Meeting and maintaining statutory safety standards in all blocks.
The works will be split into 4 geographic Lots and key Objectives in the FAC-1 and TAC-1 contracts will include:
– Providing employment and training opportunities
-Supporting and enabling the SME supply-chain in the borough to benefit from the investments
-Involving residents at all stages in the procurement and delivery process.
Advice to Haringey is being led by Lee Maskell of Faithorn Farrell Timms and Assad Maqbool of Trowers & Hamlins. Further details of the procurement are available at – 24 10 2022 Haringey Council Housing Major Works Partnering Contract – Find a Tender.pdf.
The latest version of the UK Government Construction Playbook was published in September 2022 and states that:
- ‘A successful framework contract should be based around principles that align objectives, success measures, targets and incentives so as to enable joint work on improving value and reducing risk.
- This should then be combined with transparent performance measurement and work allocation procedures.
- The FAC-1 framework is a good example of a standard form framework contract that can achieve this and many of the ambitions set out in this Playbook.’
- A detailed FAC-1 New Prisons case study appears in the accompanying Government Guidance Notes on ‘Longer Term Contracting Programmes , Projects and Portfolios in Construction’ and on ‘ Market, supplier &Supply Chain Engagement in Consruction.’
Optivo are using TAC-1 to procure a retrofit programme through the Fusion 21 decarbonisation framework which is worth £6 to 9 million, which commenced in summer 2022 and which has a duration of 2 + 1 years
Orbit are using TAC-1 for the procurement of a retrofit programme through the Fusion 21 decarbonisation framework which is worth £2 million and which is to be completed by 31 March 2023
Catalyst Housing Ltd is using TAC-1 for their £210 million procurement of planned Internal and External Refurbishment Works under appointments of 5+5 years.
London Borough of Southwark is using an overarching FAC-1 alliance integrating 4 TAC-1 term alliances for their £835 million procurement of capital improvements and compliance works to estate-based properties under appointments lasting 5+ 5 years.
Stratford District Council, Wychavon District Council and Savills are leading a ‘Social Housing Decarbonisation Demonstrator Programme’ that complies with PAS2035 (Retrofitting dwellings for improved energy efficiency), integrating their work with Rooftop Housing Group, Citizen Housing Group, Trent and Dove Housing, the Trident Group and the Orbit Housing Group. They are using FAC-1 with PPC2000 to maximise efficiencies through:
- Joint procurement and collaborative working to deliver shared best practice and innovation
- Early supply chain involvement to finalise surveys, designs, risks and costs
- Consistent systems of project management, tenant engagement and education.
LHC and London Borough of Southwark have created FAC-1 framework alliances of SME and micro-SME architects, engineers and other consultant disciplines, using evaluation criteria that identify relevant strengths such as innovations linked to community knowledge and experience.
The FAC-1 alliances create a community of framework clients and consultants with shared Objectives, Success Measures, Alliance Activities and Timetables to support and integrate their work in relation to:
- Sharing of innovations, community knowledge and other good practices through the FAC-1 Core Group and agreement of mutual IP licences
- Using FAC-1 Supply Chain Collaboration to combine the buying power of multiple SMEs and micro-SMEs
- Using FAC-1 Early Warning and Core Group meetings to avoid a blame culture and collaborate in joint risk management .
December 2021 : ‘Constructing the Gold Standard’ , Professor David Mosey’s independent review of public sector construction frameworks , reported that ‘ FAC-1 has been adopted as the basis for framework alliances created by Crown Commercial Service, LHC, NHS Shared Business Services and Ministry of Justice, which have a total projected value of over £57 billion. ‘The review included the following comments on FAC-1 from framework providers and the construction industry :
|GRAHAM reports that: ‘Most frameworks that we operate under adopt the use of a bespoke Framework Agreement for appointment to the Framework. Exceptions to this are the CCS and NHS SBS Frameworks that adopt the FAC-1 Alliancing agreement. This is an approach we support.’ ‘Many Framework Agreements that we are a party to facilitate the adoption of varying project level forms of contract by users, as does FAC-1.’|
|VINCI reports that: ‘We see the benefit of frameworks that offer different models of ‘call off ‘contract (as can be facilitated by FAC-1) but also where there is consistency between the collaborative approach defined in the overarching framework agreement’.|
|Crown Commercial Service reports that: ‘The FAC-1 Framework Alliance Contract enables the government to align its strategies in construction with the key objective policies outlined in the Construction Playbook. The benefits of this drive improvements across the construction industry including:|
Ability to influence design through earlier contractor engagement
Connecting whole life considerations through an integrated supply chain
Focus on newer and safer working practices in construction
Options for innovative construction methods and technologies
More opportunities for SMEs, specialists and local providers
Sustainable solutions and environmental benefits
Collaborative risk management and dispute avoidance
Promoting standardisation in contracting through common ‘boilerplate’ clauses’.
‘By adopting the FAC-1 as the centre point of our framework agreement structure, this enables CCS to establish closer relations with the additional clients and supplier alliance members, focus on collaborative opportunities, drive best practice, improve framework performance and outputs across our frameworks’.
December 2021 Net zero transitional framework alliance contract: Oxfordshire County Council and Skanska supplemented their £40 million per annum term contract for maintenance, capital renewals and new infrastructure to identify opportunities for improvement. The parties created an FAC-1 transitional framework alliance contract to tie in new procedures so that opportunities to capture improved best value are formalised, linked to extension of the underlying NEC contract.
The project teams identified significant opportunities, including carbon consumption reductions and financial savings. Strategic net zero carbon outputs, using FAC-1 and supporting Oxfordshire County Council’s and Skanska’s carbon neutral targets, included:
- A suite of low carbon design solutions and associated Action Plans
- Development of a Partnership Carbon Reduction Strategy and associated Action Plan
- Creation of a Whole Life Cost & Carbon tool
- Focused training on lower carbon alternative materials
- Trials of new lower carbon materials
- Calculating carbon baselines for schemes to identify ‘Hotspots’
for content published before 2018 please see Archive)
Crown Commercial Service have published a PIN notice for a £30 billion framework alliance using FAC-1 to deliver projects valued at over £80 million, airfield projects and projects comprising the NHS England Procure 23 programme.
Building Better and Procurement for Housing selected FAC-1 as the form of contract to embody their collaborative approach to delivering their 800 homes programme worth £600 million over 5 years, embracing the relationships with three selected manufacturers Top Hat, Ilke Homes and Impact Modular. Lawyers Trowers & Hamlins advised on this procurement, and partner Katie Saunders commented: “Using FAC -1 was the right choice for Building Better since it underpins the alliance that the registered providers want to create to aggregate demand across their development programmes and provide a guaranteed pipeline for the manufacturers to improve process and delivery. FAC1 focusses on supply chain collaboration which is essential in standardising product development and design and building safer and sustainable homes. FAC -1 is also the Construction Leadership Council and King’s College London recommended model form of contract for modular housing alliancing.”
Trina Chakravati, project director for Building Better added: “Trowers supported us on using FAC-1 to deliver our partnership-working between social housing providers and manufacturers as sharing information and learning together are critical to improving the take up of MMC and overcoming traditional barriers.”
Under the Crown Commercial Service construction framework alliance, the Ministry of Justice are working on a Playbook pathfinder to procure the four prisons comprising their £1 billion New Prisons Programme, using an FAC-1 collaborative sub-alliance.
The sub-alliance will integrate the work of Kier, ISG, Laing O’Rourke and Wates and will support their use of ESI, BIM and MMC to agree optimum designs and strategic relationships with key tier 2 supply chain members. Engagement with tier 2 supply chain members will be led jointly by the four contractors, and by Mace as alliance managers, so as to be free from public procurement constraints.
The sub-alliance will use Supply Chain Collaboration to agree strategic commitments with tier 2 supply chain members for each key package, bringing them into the alliance and preserving their collaborative commitments to efficiency and improved value after the award of successive NEC4 construction phase project contracts.
The FAC-1 sub-alliance contract will also create an ‘integrated information management contract’ that connects the IP licences and BIM contributions of the suppliers and supply chain members across the four prison projects.
NHS Shared Business Services are using FAC-1 for construction frameworks with a projected value of up to £1.5 billion per annum over 7 years, delivered through 57 contractors in 5 lots .
Crown Commercial Service are using FAC-1 for framework alliances that comprise:
- Construction Professional Services with a total potential value of £ 1.3 billion in six lots (built environment & general infrastructure; urban regeneration; international; high rise; defence; environmental and sustainability technical services). Services in all lots include project management, cost consultancy, architectural, BIM, building services, civil and Mechanical engineering.
- Construction Works and Associated Services with a total potential value of £30 billion in 11 lots comprising five generalist value-banded lots and six specialist lots (residential works, high-rise, maritime, airfield, demolition and construction management).
- Modular Building Solutions with a total potential value of £1.2 billion covering design consultants, project managers, principal contractor and building manufacturers in 5 lots (education purchase; health purchase; education hire; health hire; general buy or hire).
- Building Materials and Equipment with a total potential value of £900 million comprising manufacturers, merchants and subcontractors in 9 lots (heavy building materials; plumbing, heating & bathrooms; electrical products; paints and solvents; flooring; kitchens; PPE and workwear; tools and equipment purchase; tools and equipment hire)’.
LHC are using FAC-1 for the following frameworks:
- Off-site Construction of New Homes with a total potential value of £1.1 billion
- Housing Construction Scotland, Consultancy, with a total potential value of £150 million
- Services Housing Construction Scotland with a total potential value of £1.5 billion
- Housing Construction Southwest and Wales, Consultancy, with a total potential value of £70 million
- Housing Construction Southwest and Wales with a total potential value of £1.2 billion
- North and Mid-Wales Residential Construction with a total potential value of £1 billion
- Schools & Community Buildings with a total potential value of £6.92 billion
- Modular Buildings with a total potential value of £1 billion
- Whole House Refurbishment and Improvement with a total potential value of £1.3 billion
- A range of related frameworks including supply of kitchen units & worktops, heating services, energy efficiency, general refurbishment works and offsite project integrators.
FAC-1 is endorsed in the UK Government Construction Playbook , which sets out 14 new policies on a ‘comply or explain basis which together underpin a commitment to ‘delivering better, faster and greener solutions that support our recovery from the COVID-19 pandemic and build the economy of the future while improving building and workplace safety’. The Playbook is supported by a ‘Compact with Industry’ signed by representatives of 48 professional bodies, consultants, contractors and universities.
The Playbook requires public sector clients to adopt long-term contracts , to invest in modern methods of construction (‘MMC’), to embed the use of BIM, to procure using early supply chain involvement and outcome-based performance measurement, and to use benchmarking for a better understanding of costs. It endorses FAC-1 as an effective contract that is structured to enable the efficient exchange of data, to drive collaboration, to improve value and to manage risk.
The Playbook promotes the use of frameworks as an efficient method to procure public works, goods and services, but emphasises that a ‘successful framework contract should be based around principles that align objectives, success measures, targets and incentives so as to enable joint work on improving value and reducing risk’. It goes on to say that the ‘FAC-1 framework is a good example of a standard form framework contract that can achieve this and many of the ambitions set out in this Playbook’ .
December 2020-The Spanish translation and adaptation of FAC-1, led by Eric Franco of Legal Delta, has been launched at online events hosted in Peru, Spain and Chile, and is now available to purchase and to use in practice.
September 2020- FAC-1 is endorsed as an innovative contract that can govern programmes of work using modern methods of construction. ‘Build Homes, Build Jobs, Build Innovation – A Blueprint for a Housing Industrial Strategy’ explains how ‘more innovative and progressive contracts reflect earlier and closer engagement with manufacturers, for instance the ACA Framework Alliance Contract (FAC-1) for long-term strategic relationships enabling one or more clients to integrate housing programmes that are delivered through smart construction linked to separate design, construction and operation contracts.’
July 2020- The global energy company Enel has undertaken FAC-1 training and is exploring the potential for pilot FAC-1 projects in Brazil Spain and the USA . The first of these will be wind farm projects in Spain and Brazil.
July 2020 – Savills presented to the Constructing Excellence Procurement Group a case study showing how Central Bedfordshire Council and Engie have used joint risk management under TAC-1 to help team members and vulnerable residents cope with the effects of the Covid-19 pandemic
July 2020- The UK Ministry of Justice is creating an FAC-1 sub-alliance to deliver its New Prisons programme, a Pathfinder Project that forms part of the UK Government’s ‘Project Speed’ initiative. The Ministry is working with Mace and is using FAC-1 as a contractual integrator across four projects to support the development of innovative designs through modern methods of construction, to map the joint selection and integration of tier 2 supply chain members and as a Collaborative BIM Protocol
July 2020 –The National Housing Federation and Procurement for Housing will use FAC-1 and TAC-1 as the basis for their ‘Building Better‘ programme of new build modular housing
June 2020- the Russian translation and adaptation of FAC-1 was launched at an online conference hosted by the National Association of Construction Engineering Consultants in Moscow
July 2020 – over 50 central government departments and local authorities have signed up to use the £30 billion FAC-1 construction framework alliances and the £1.2 billion FAC-1 modular alliances created by Crown Commercial Service
July 2020 – The annual Arcadis Global Construction Disputes Report recommended that disputes could be reduced by wider use of the FAC-1, TPC2005 and PPC2000 forms of collaborative contract
March 2020- the German translation of FAC-1 was launched by Dr Wolfgang Breyer at a conference hosted by University of Stuttgart
February 2020 – London Borough of Southwark will be using FAC-1 to procure and integrate its £1 billion asset management programme
February 2020 – The King’s College London Centre of Construction Law commenced the second phase of research with the Construction Leadership Council and the Department for Business Energy and Industrial Enterprise , exploring how FAC-1 and TAC-1 can be used to create long-term strategic appointments through which to attract investment in safer and better quality design solutions using modern methods of construction
February 2020 – Oxfordshire County Council and Skanska have agreed to use FAC-1 in conjunction with the NEC Term Service Contract to deliver improved value through an integrated highways supply chain alliance and to align their zero carbon objectives
February 2020– King’s College London Centre of Construction Law hosted 140 delegates who debated ‘‘BIM, Offsite Manufacture and the Future of the Construction Industry‘ . Speakers included Stuart D’ Henin who explained how FAC-1 is being used by Crown Commercial Service to create standardised modular solutions , and Dr Marina Romanovich who predicted that the new Russian translation of FAC-1 will be used as a BIM integrator in the same way as the Italian translation was used on the Liscate School project
January 2020 – the £30 billion Crown Commercial Service construction framework alliances, using FAC-1 and with provsion for clients to set up their own FAC-1 sub-alliances, were launched in Birmingham to selected contractors and to prospective clients
January 2020 – Professor David Mosey and David Sawtell posted a blog for Oxford University outlining how collaborative contracts such as FAC-1 can be used to improve the safety of high-rise projects by integrating the inputs from clients, users, consultants , contractors and specialists so that they can share, review and agree important design, cost, time and risk data prior to start on site
December 2019 – The Greater London Authority has adopted FAC-1 as the basis for its London Infrastructure Alliance designed to integrate the streetworks undertaken by different utility companies in each London borough
November 2019 – King’s College London and the Alliance Steering Group hosted a conference exploring the uses of FAC-1 in the UK and other jurisdictions, with a keynote speech by Dr David Hancock of the Infrastrucure and Projects Authority
August 2019 – meeting at King’s College London of the Crown Commercial Service FAC-1 Consultant Alliance , in order to explore the full potential of the new £1.2 billion Crown Commercial Service FAC-1 Modular Framework Alliance
August 2019 – Presentation of FAC-1 to Sellafield Limited and their supply chain members for their detailed review and consideration
August 2019 – Signature of licence for Spanish translation and adaptation of FAC-1 for use in Peru to be undertaken by Eric Franco working with Universidad Peruana de Ciencias Aplicada , Univerisidad del Pacifico and the Peruvian Society of Construction Law
August 2019 – Consideration of FAC-1 by the Greater London Authority as the basis for the an alliance among utilities providers and London boroughs to integrate and improve the efficiency of the work of their contractors
July 2019– announcement of 1st November 2019 conference ”Collaborating to Manage Risk and Delivery” , with keynote speaker Dr. David Hancock, Construction Director at the Infrastructure and Projects Authority
June 2019– Launch of ‘‘Collaborative Construction Procurement and Improved Value’, published by Wiley and containing analysis of the research and pilot projects leading to FAC-1 and TAC-1, plus multiple FAC-1 and TAC-1 case studies, plus commentaries on the adaptation of FAC-1 for use in Brazil, Bulgaria, Germany and Italy, plus a guide to completion of the FAC-1 Framework Alliance Agreement and the other Framework Documents
West Kent 20 year TAC-1 term alliance worth £150 million
Central Bedfordshire £190 million TAC-1 term alliance with ENGIE for integrated asset management over 10 to 15 years
Stevenage Borough Council term alliances with Mulalley and Wates under TAC-1 governing £45 million refurbishment programme
London Borough of Crawley £167 million FAC-1 framework alliance linking two TPC term contracts over 10 years to govern planned works, responsive repairs and voids, with open book costing and innovative measures of resident satisfaction
Arun District Council £2 million per annum TAC-1 term alliance governing responsive repairs and voids
May 2019- signature of licence with NACEC for Russian translation and adaptation of FAC-1
May 2019- signature of Onward in Liverpool of TAC-1 term alliance contracts with Fortem, PH Jones, Axis Europe and Warmer Energy Services for programmes of maintenance and gas servicing
May 2019- Places for People conclude TAC-1 term alliance contracts for major investment works with Breyer Group , J Tomlinson and Bell Decorating
May 2019- release of video case study of Surrey County Council/ Kier/ Aggregate Industries FAC-1 highways supply chain alliance on
April 2019- publication of ‘Collaborative Construction Procurement and Improved Value’ by Professor David Mosey with co-authors in 6 other jurisdictions, including case studies and guidance on FAC-1 and TAC-1
April 2019 – award of FAC-1 modular frameworks with a projected value of £1.2 billion by Crown Commercial Service
April 2019 – launch in Sao Paulo of Brazilian adaptation and translation of FAC-1
April 2019 – release of video case study of Futures Housing Group FAC-1 specialist contractor alliance on
March 2019- release of video introduction to FAC-1 on
February 2019- launch in Sofia of Bulgarian translation and adaptation of FAC-1
January 2019- advertisement of FAC-1 collaborative contractor frameworks by Crown Commercial Service in 11 lots with a total projected value of £30 billion
October 2018 – award of first Italian FAC-1 contract for the design and construction of the Liscate School and community centre using BIM
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