Constructing the Gold Standard: What You Need to Know

The Cabinet Office recently published an independent review, developing a new ‘Gold Standard’ for public sector construction frameworks.

The recommendations for the new standard are designed to ensure that public sector developments consistently deliver the best possible outcome, urging the UK Government and construction sector to work together to tackle waste, reduce carbon emissions, drive innovation, and ensure value for money. The Gold Standard is made up of 24 recommendations which include specific activities that should be implemented at each stage if the life of a construction framework, namely its strategy, procurement, contract, and management. Although most Gold Standard recommendations start with framework providers, clients and managers, their successful implementation also depends on suppliers and supply chain members adopting equivalent framework practices and commitments.

So what are the recommendations?

1: Use the Gold Standard features of frameworks, framework contracts and action plans to measure Construction Playbook implementation on a ‘comply or explain’ basis.

2: Ensure that all Gold Standard features are adopted by clients and suppliers when comparing the different construction frameworks on offer.

3: Require that all public sector construction frameworks prioritise safety, net-zero carbon and the Compact with Industry.

4: Reduce procurement costs, improve value and reduce risks by wider adoption of a standard form Gold Standard framework alliance contract.

5: Create contractually binding Gold Standard action plans to convert framework objectives into actions and timetables that deliver improved economic, social, and environmental outcomes.

6: Invest in framework management that demonstrates value for money for clients and suppliers.

7: Capture improved value by identifying SME strengths and using Supply Chain Collaboration systems to maximise social value.

8: Avoid wasted procurement costs and improve supplier commitments by ensuring that frameworks offer sustainable pipelines of work.

9: Use pre-procurement framework consultation to explore emerging technologies and innovations and to identify opportunities in the market.

10: Reduce procurement costs and improve value through the award of longer-term call-off contracts and the incentive of additional work.

11: Improve supplier investments in MMC and other offsite technologies by awarding framework call-off contracts for portfolios of work.

12: Create a whole life golden thread of asset information using BIM and other digital technologies integrated under a framework alliance contract.

13: Improve economic, social, and environmental outcomes through framework early supply chain involvement (ESI), using Supply Chain Collaboration systems in all framework contracts.

14: Incentivise innovative solutions by creating specifications for frameworks and call-offs that focus on required client outcomes.

15: Use delivery model assessments to inform and support framework strategies, procurement, contracting, management and call-off.

16: Assess and control the costs of framework deliverables through the use of evidence-based benchmarks and whole life Should Cost Models.

17: Integrate the mutual commitments of framework providers, clients, managers and suppliers through the terms of a Gold Standard framework alliance contract.

18: Allocate risks based on framework market engagement and use joint framework systems for early risk mitigation and efficient responses to risk events.

19: Create transparent pricing mechanisms for frameworks and call-offs that maximise cost certainty and ensure prompt payment.

20: Reduce procurement costs by consistent and proportionate assessment of economic and financial standing using ‘PAS91’ or the ‘Common Assessment Standard’.

21: Evaluate proposals for frameworks and call-offs proportionately and consistently using balanced criteria that include quality, social value and net-zero GHG emissions.

22: Establish shared and transparent framework systems through which to manage and mitigate the risks of a supplier’s financial distress.

23: Improve framework outcomes by creating collaborative systems for the management of framework relationships and strategic supply chain relationships.

24: Support the adoption of Gold Standard frameworks, framework contracts and action plans through government-led training and guidance.

If you’d like more information on how Invisible Systems solutions can support you as you work towards the Gold Standard, get in touch today.