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Collaborative Construction Procurement and Improved Value
The guide that explores how procurement and contracts can create an integrated team while improving value, economy, quality and client satisfaction
Collaborative Construction Procurement and Improved Value provides an important guide for project managers, lawyers, designers, constructors and operators, showing step by step how proven collaborative models and processes can move from the margins to the mainstream. It covers all stages of the project lifecycle and offers new ways to embed learning from one project to the next.
Collaborative Construction Procurement and Improved Value explores how strategic thinking, intelligent team selection, contract integration and the use of digital technology can enhance the value of construction projects and programmes of work. With 50 UK case studies, plus chapters from specialists in 6 other jurisdictions, it describes in detail the legal and procedural route maps for successful collaborative teams.
Collaborative Construction Procurement and Improved Value:
* Examines the ways to create an effective contract that will spell success throughout the procurement process
* Contains helpful case studies from real-world projects and programmes
* Explores the benefits of the collaborative construction process and how to overcome common obstacles
* Bridges the gaps between contract law, collaborative working and project management
* Includes the first analysis of the NEC4 Alliance Contract, the FAC-1 Framework Alliance Contract and the TAC-1 Term Alliance Contract
eBook
Collaborative construction procurement
The guide that explores how procurement and contracts can create an integrated team while improving value, economy, quality and client satisfaction 'Collaborative Construction Procurement and Improved Value' provides an important guide for project managers, lawyers, designers, constructors and operators, showing step by step how proven collaborative models and processes can move from the margins to the mainstream. It covers all stages of the project lifecycle and offers new ways to embed learning from one project to the next. 'Collaborative Construction Procurement and Improved Value' explores how strategic thinking, intelligent team selection, contract integration and the use of digital technology can enhance the value of construction projects and programmes of work.
eBook
How Does the TAC‐1 Term Alliance Contract Operate?
This chapter reviews the development the TAC‐1 Term Alliance Contract and how it builds on the features of the TPC2005 term partnering contract. It considers the key features of TAC‐1, how it awards work, how it supports Supply Chain Collaboration and how it supports collaborative risk management. It examines how TAC‐1 operates as a term contract and an alliance contract, and also the extent to which TAC‐1 has the characteristics of an enterprise contract. The process of Supply Chain Collaboration under TAC‐1 follows the same sequence as in FAC‐1. TAC‐1 provides commercial protections for Alliance Members in respect of the information that they exchange through Supply Chain Collaboration. Each client in each sector has particular objectives and requirements, and TAC‐1 provides flexible foundations that a client and its advisers can use when developing their term procurement strategy. Its multi‐party structure provides a shared system of open performance measurement and rewards agreed by all Alliance Members.
Book Chapter
What Is Collaborative Construction Procurement?
This chapter summarises recent research and commentaries that identify the need for procurement reform, and notes the links between collaborative procurement, digital technology and contracts. It also presents an overview of key concepts covered in the subsequent chapters of this book. The book explores the delivery of economic and social value through improvements in strategic thinking, team selection, contract integration and the use of digital technology. It considers how the processes and relationships of collaborative construction procurement can be brought more into the mainstream. The book uses analysis, guidance, and case studies to illustrate how collaborative approaches can be adopted successfully by any team in any part of the construction sector. The lessons learned from case studies show how economic and social value can be improved through collaborative construction procurement. The book also considers the different options available for costing, incentivising and programming a collaborative project or programme of work.
Book Chapter
How Does Collaborative Procurement Manage Time and Change?
Alliance members can create a matrix of agreed deadlines which provides for the enterprise planning activities and events to be identified, planned, monitored, and measured. This chapter explores how programmes and timetables can support an alliance and how they can contribute to improved value. It also looks at the collaborative management of change. Setting and agreeing the right deadlines for agreed activities is an essential collaborative activity because 'it is very difficult to enforce a plan which is conceived in isolation and it is therefore essential to involve the individuals and organisations responsible for the activities or operations as the plan is developed'. The chapter presents the case studies to show how collaborative procurement activities save time rather than create delays, and a well‐organised team can establish a timetable governing the 'limited period of time during which to implement preconstruction phase activities without causing a delay in commencement of the construction phase'.
Book Chapter
How Can Collaborative Procurement Improve Economic and Social Value?
Sustainable collaborative procurement models need to balance cost savings with other improvements in economic value and with improvements in social value, using evaluation and performance measurement systems that are clear and transparent. An integrated team can improve value through the ways that its members go about their work, for example through steps that improve the ordering and organisation of this work and that facilitate the work of others. Collaborative procurement establishes new lines of communication between the client, consultants, contractors, subcontractors, suppliers, manufacturers and operators. These in turn create opportunities for improved integration, information and innovation which can validate design proposals, ensure budgetary compliance, develop improved design solutions and encourage extended warranties. Employment and training opportunities are examples of the social value that can be delivered as part of a construction project. Collaborative construction procurement can create and deliver commitments to improve employment and skills opportunities throughout the supply chain.
Book Chapter
What Are the Foundations for Collaborative Construction Procurement?
This chapter attempts to define more clearly what we mean by collaborative construction procurement, and breaks down some of its components by reference to contracts, technology, selection processes and activities. It examines the foundations for collaborative procurement in terms of new working relationships, the timing of team members' appointments and the joint activities that can improve the value delivered while implementing a project. Building Information Modelling (BIM) is an example of digital technology that is rapidly evolving and that is increasingly available to construction project teams. It offers us a clearer view of the mutual dependencies between the activities of team members. BIM also provides the axis around which other technologies, such as smart contracts, can improve the efficiency of supply chain transactions. Supply Chain Collaboration has wide‐ranging potential as a joint process by which alliance members can improve value.
Book Chapter
How Is Collaborative Procurement Costed and Incentivised?
This chapter explores how collaborative construction procurement can use any cost model according to the features and circumstances of the project or programme of work. It explains why the separate agreement of profit, fees, overheads and other costs should be seen as a fundamental principle if team members intend to seek cost savings and improved arrangements with subcontracted supply chain members. Although some alliance models are based on cost reimbursement or target costs linked to shared risk and reward incentives, the chapter also considers how other alliance models can incentivise the agreement of fixed costs following conclusion of agreed preconstruction phase activities. Many alliances have used open‐book costing as a new way to build up and agree a fixed price, while others have used it as the basis for a target cost or cost reimbursement. Cost reimbursement in the context of collaborative procurement is often linked to a target cost, sometimes developed in stages.
Book Chapter
How Does a Term Alliance Operate?
This chapter considers the characteristics of a term contract, the features of a term alliance and the ways in which a term alliance contract can deal with some of the most pressing issues that challenge the safety and efficiency of construction procurement. Where a term alliance governs a combination of planned, responsive and cyclical tasks, it is particularly valuable as a procurement model for long‐term asset management. Successful asset management depends on creating interfaces between the capital works team and the operation, repair and maintenance team. Term alliance case studies illustrate how collaborative procurement can improve the repair, maintenance and operation of completed buildings. As the client, provider, supply chain, and stakeholders all build greater confidence and become familiar with each other's expectations and methods of working under a term alliance, it is likely that new information will become available that creates opportunities for improved efficiency.
Book Chapter