Legal update ––––– March 2017 Projects and Construction Framework Alliance Agreement ———Pioneering ———— Bahrain ———— Construction ———— Public sector ———— Energy ———— Real estate ———— London ———— Tax ———— IT ———— Dubai ———— Manchester — onnecting ———— Knowledge ———— Pragmatic ———— Malaysia ———— Exeter ———— Thought leadership ———— Housing ———— Agile ———— Creative ———— Connecting ———— Priva Local government ———— Manchester ———— Environment ———— Focused ———— Islamic finance ———— Projects ———— Abu Dhabi ———— Corporate finance ———— Passionate ———— — Employment ———— Regulation ———— Procurement ———— Expertise ———— Specialist ———— Planning ———— Investment ———— Committed ———— Delivery ———— IT ———— Gov —— IP ———— Corporate ———— Infrastructure ———— Value ———— Development ———— Private wealth ———— Oman ———— Governance ———— Birmingham ———— Corporate finance — — Dynamic ———— Pensions ———— Dispute resolution ———— Insight ———— Banking and finance ———— Arbitration ———— Diverse ———— Regeneration ———— Care ———— Communica In June 2016, the Association of Consulting Architects published a standard form "Framework Alliance Contract" (FAC-1) that works as a combined framework and alliancing agreement and caters for multi- alliance members. Authored by the Centre of Construction Law at Kings College, London, FAC-1 is based on best practice guidance set out in the Infrastructure Client Group Alliancing Code of Practice 2015 and from the successful frameworks and alliance projects that were used to support the UK Government Trial Projects programme. The programme was an integral part of the Government Construction Strategy 2011-2015 and recommended three "New Models of Construction procurement": "Two Stage Open Book", "Cost Led procurement" and "Integrated Project Insurance". The Trial Projects programme highlighted that savings of between 14-20% were achieved using these new models and the frameworks and alliances of which they formed part of. The frameworks and alliances used in the Trial Project programme included the following: • SCMG Hackney Homes and Homes for Haringey Alliance; • Ministry of Justice National and Regional Framework Alliances; • Surrey County Council Project Horizon Highways Alliance; and • Connect Plus M25 Framework. Trowers & Hamlins advised the parties on each of these projects as to how to use frameworks and alliancing to achieve stated objectives and added value. Why a new framework agreement? FAC-1 provides the basis for alliancing by contractors, consultants and suppliers working on complementary or related projects. Although the reputation of frameworks ebbs and flows, and it is true that some frameworks are simply "static" with no guarantee of work and of little benefit to the client if the supply chain is not incentivised, the Government Construction Task Group`s report "Effectiveness of Frameworks" (July 2012), highlighted that there is evidence of benefits from effective frameworks such as • delivering sustainable efficiency savings; • reduction in consultancy and construction costs; • delivery of projects closer to target cost and time; • reduction of disputes, claims and litigation; • high client satisfaction rates; • high proportion of work undertaken by small and medium-sized enterprises; • high proportion of local labour and sub- contractors; • high take-up of government in initiatives such as fair payment, apprenticeships ; • high proportion of waste diverted from landfill; • good health and safety performance against national average; and • acting as a key enabler to integration of the supply team. Source: Fotolia Why Alliancing? Alliancing has long been seen as an opportunity that allows clients and the supply chain to develop long-term relationships against a pipeline of projects. Alliancing Published by Trowers & Hamlins Trowers & Hamlins LLP 3 Bunhill Row London EC1Y 8YZ t +44 (0)20 7423 8000 f +44 (0)20 7423 8001 www.trowers.com Trowers & Hamlins LLP is a limited liability partnership registered in England and Wales with registered number OC337852 whose registered office is at 3 Bunhill Row, London EC1Y 8YZ. Trowers & Hamlins LLP is authorised and regulated by the Solicitors Regulation Authority. The word "partner" is used to refer to a member of Trowers & Hamlins LLP or an employee or consultant with equivalent standing and qualifications or an individual with equivalent status in one of Trowers & Hamlins LLP's affiliated undertakings. A list of the members of Trowers & Hamlins LLP together with those non-members who are designated as partners is open to inspection at the registered office. Trowers & Hamlins LLP has taken all reasonable precautions to ensure that information contained in this document is accurate but stresses that the content is not intended to be legally comprehensive. Trowers & Hamlins LLP recommends that no action be taken on matters covered in this document without taking full legal advice.
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Legal update ––––– March 201 Projects and … update ––––– March 201 7 Projects and Construction Framework Alliance Agreement ———— Pioneering ————
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Legal update ––––– March 2017
Projects and Construction Framework Alliance Agreement
———— Pioneering ———— Bahrain ———— Construction ———— Public sector ———— Energy ———— Real estate ———— London ———— Tax ———— IT ———— Dubai ———— Manchester ————