Frameworks 2011 "Back in Fashion"

It's official framework contracts are still in fashion, despite the impact of the recession. Clients recognise that in 2011 with tender prices on the floor frameworks deliver tangible benefits including added value.

"There is some sign of a rush to procure - surprising as it may seem"

Clients are aware that there are bargains to be had, they are in no doubt (as also indicated by BCIS end of 2010 statistics for construction) that the current tender prices are low. If you are a Client and have recently secured new framework Partners then you will know this from benchmarking.

The reality is that Contractors are desperate for work. There is not a lot of it around. The longer term commitment provides continuity and that may just be enough to see them through the tough times.

Frameworks v One-Off Tenders

Clients know when they are onto a good thing. I understand this as a client myself procuring a loft conversion for our 1950s bungalow. I have had 4 prices back and very competitive they seem. What is more, they say they will finish in just 3 weeks. Marvellous! Ahhh but you and I know that a risk with a one off tender is..... Will they deliver or is it all hot air? I am minded to not hold my breath, waiting for a claim for extras to materialise.

That's a risk you take with one-off tendering and when you have lowest price as the key driver.

Frameworks do not always work well as they could. There are some lessons to be learnt. They can preclude competition by aggregation and this squeezes out the smaller players. The UK construction industry seems to be good at this. It needs to work hard through its statutes and government procedures to ensure that we give the smaller players and start-ups the same opportunity. We must maximise the opportunities for fair competition. It cannot be correct that many smaller businesses are precluded from the competition on the basis of turnover, the number of employees or whether it has an environmental policy or not. Industry should work hard to provide genuine opportunities for new businesses and enterprise. If smaller providers can evidence capacity and the ability to deliver the works and or services, whether it is in part or in whole then they should be able to compete. Frameworks do not always provide for this. They need to be more inclusive and provide better opportunities for the smaller players to compete on a level playing field, the principles of equality must apply.

Frameworks Have Changed

If you are in a framework there can be too much at stake especially if its an alliance between 8 authorities. That's the way it should be. If the Contractor falls out with 1 it risks falling out with all. The continuity and opportunity for work provided by frameworks still trumps one-off tendering. Not least the commercial and relational benefits which can accrue. Frameworks in 2011 are tougher as there is no guarantee of getting any work. That's the way it should be, the Contractor should be made to work hard to secure opportunities.

"No more guarantees. He should be in it to win it".

Frameworks should not be a soft option and the rigour bought by competition should be harnessed to create a commercial tension. Frameworks in 2011 look very different. They have improved and that has to be a good thing.