Working within the frame

Changing procurement practices might not be headline-grabbing news, but as everyone in construction knows, it can pay handsome dividends - particularly in the long term.

By incorporating specialists into multi-discipline teams and giving them an opportunity to put forward ideas for better ways of working on a number of projects over a set period of time, clients are finding out there are considerable benefits to be gained.

Rolling up a number of contracts into one framework or letting a programme of maintenance work in one batch cuts the cost and time of going out to tender on individual projects.

The use of just a few contractors, designers and suppliers means the supply side gains knowledge and experience of the client's business and is therefore in a much better position to produce year-on-year savings in productivity. Outsourcing asset management can result in lower supervision costs and cost savings of 10%.

However, these benefits are not available to everyone. Long-term frameworks are clearly geared towards major construction clients with a considerable amount of repeat business.

Framework agreements do not suit every kind of contract. But frameworks are particularly appropriate for tackling long-term maintenance programmes such as those faced by many utility clients and the likes of Railtrack.

However, framework agreements do not mean the client relinquishes the right to supervise the work. On the contrary, a strong partnership between client and framework contractor is a vital ingredient in the success of any framework deal.

When undertaken successfully, framework agreements can foster the successful integration of fewer suppliers, as well as their earlier involvement in contracts, resulting in zero defects - thus achieving best value.

Well, that is the theory. But what is happening at the coalface of the industry?

Below, we take a look at three framework agreements currently being undertaken by Edmund Nuttall.