FAC-1 – Framework Alliance Contract Launched June 2016
The ACA has published a new contract – FAC-1 the first standard form of Framework Alliance Contract and follows consultation with 100 engineering and construction clients, consultants and contractors. FAC-1 covers processes and relationships not dealt with in any existing standard form. It is a multi-party over-arching agreement between any number of framework alliance members, providing a clear basis for:
• award of individual contracts forming part of an agreed framework programme;
• common alliance objectives, success measures , targets and incentives;
• a timetable for stages in the framework programme and shared alliance activities;
• joint commitment of alliance members to work beyond the scope of individual project contracts in seeking to achieve improved value.
FAC-1 is designed for use with any underlying contract form. It is based on successful frameworks and alliances and is compatible with NEC3 as well as with ICC, JCT, PPC and FIDIC forms. It is also suitable for alliances that integrate professional services and supplies, and can be used with any form of consultant appointment or supply chain agreement.
- an alliance manager to integrate the alliance, monitor performance and support joint activities;
- links to building information modelling and strategic asset management;
- a shared over-arching brief among all alliance members, with separate confidential agreement of each alliance member’s prices and proposals;
- provision to bring in additional clients and other additional alliance members under a standard form joining agreement;
- a core group to review new proposals and agree on dispute resolution;
- a separate schedule for the legal requirements of any country and for special contract terms
Available at £35 plus VAT & P&P from 02 June 2016. Email us to order bulk copies or gain various discounts on firstname.lastname@example.org
Electronics Portal and Consutation on new forms June 2014
ACA Launch Digital Contracts Portal
A new Digital Contracts Portal for use with the PPC Suite of Contracts is set to be launched today at the Chartered Institute of Housing annual conference.
The new contract portal offers easy access to innovative contracts for teams to deliver projects on time and with cost savings. This can be found at:www.acarchitects.co.uk/electronic-contracts, and enables users to complete and share their PPC2000 and TPC2005 contracts quickly and effectively.
This user-friendly portal is released with the current versions of the PPC Suite. These are:
PPC2000 – Amended 2013
TPC2005 – Amended 2008
It will shortly be updated to hold the 2015 versions of the PPC contracts.
Consultation on New Contract Forms
The ACA are launching a period of consultation on new contract forms so that views and proposals can be taken into account from current and prospective users and from other
industry representatives. A new “PPC Project Alliance Contract” and “Term Alliance Contract” are both scheduled for publication in October 2015. These forms will provide:
– simpler contracts that are suitable for projects of any size -collaborative contracts designed to support Building Information Modelling -integrated contracts that cover the whole life of an asset
-international contracts that can be used under any legal system
– usable in any jurisdiction, given the growing international interest in PPC (this year from Australia, Germany, Malasia, Sweden, Singapore and Saudi Arabia
– providing a strong basis for BIM levels 2 and 3, given the proven success of the UK Ministry of Justice PPC/BIM Trial Projects
– creating simpler structures, cutting down prescriptive processes and using clearer definitions
– providing the first performance-led strategic alliance standard form;
-supporting a whole-life approach to asset management, given the success of the Surrey Highways Alliance Trial Project using TPC2005 to achieve savings and extended warranties.
Would you or one of your colleagues be interested in being part of a Consultation Group to comment on the draft contracts and related guidance? The ACA would value your input , and can ensure that your comments will be taken into account and duly credited when the new contracts are published in October.
If you are interested in joining this Consultation Group, please contact us as soon as possible on: email@example.com
ACA President Richard Harrison said: “PPC2000 and TPC2005 are the ‘unsung heroes of construction’, proven time and again to offer user-friendly improvement processes and clear provisions for both the public and private sectors. The new contract portal offers easy access to these innovative contracts for teams to deliver projects on time, with cost savings of up to 20%, with more opportunity for sustainable design and with improved employment and skills commitments. The PPC Project Alliance Contract and Term Alliance Contract are major new contenders for consultants and their teams to ensure a simple and effective approach to project delivery”.
Shane Hughes, PPC/TPC Steering Group Chairman added: “The PPC Suite of Partnering Contracts continue to shine as beacons of collaborative working and two stage procurement across the construction sector. The new on-line portal and consultation on the new PPC Project and Term Alliance Forms offer clients, contractors and consultants access to the next generation of collaborative working. I urge you take another look at PPC and TPC when choosing your contract form”.
The new portal was launched by a number of PPC/TPC steering group members including United Living’s Divisional Director (Refurbishment South) Daren Mosley, at the CIH conference at Manchester Central on Wednesday 24 June at the United Living stand G22.
CDM2015 Amendments Issued
The amendments for PPC2000 (amended 2013) and TPC2005 (amended 2008) have been issued to comply with the CDM2015 Regulations which came into force on April 6 2015. These should be used with any contract started after 6 April. Please download them from this link: CDM2015Amendments
EU Procurement Rules Update. 2015
The draft Public Contracts Regulations 2015 (the Regulations) have finally been published, but there’s still no implementation date in sight.
Following the European Commission’s adoption of the new procurement Directives last year, the UK government promised an ambitious implementation timetable. Draft Regulations were published in September, followed by a brief consultation period.
At the date of writing, there’s still no implementation date, though it’s hoped that the Regulations will come into force prior to the general election.
The Directive decreed that Part B Services, currently exempt from the full scope of the rules, must be advertised where their value exceeds E750,000. The Government, tasked with coming up with a procedure to advertise these services, has taken a “light touch” approach. Advertisements should begin with a Contract Notice and end with a Contract Award Notice. Otherwise, contracting authorities can develop their own procedures, provided that they comply with EC Treaty principles of transparency and equal treatment.
In keeping with the Commission’s goal of making public procurement more accessible to SMEs, there are a number of new provisions:
• Contracting authorities are encouraged to divide contracts into lots, and will have to give reasons for why lots are not used. The current “aggregation rule”, which requires grouping of works of a similar nature into larger packages, has been removed from the Regulations, presumably to reflect the push towards use of lots;
• Bidders will be able to self-declare details of economic and financial standing and technical ability in the European Single Procurement Document. As the Commission hasn’t yet published a template, our Government may have to develop a temporary solution.
The most surprising additions to the Regulations are new rules applying to “sub-threshold” public contracts. Central government and local authorities don’t have to advertise contracts less than £25,000 and £10,000 respectively. All other contracting authorities must advertise
sub-threshold contracts in the Contracts Finder, unless they are awarded via a pre- selected list or a framework arrangement.
Pre-qualification stages are prohibited for sub-threshold contracts, though contracting authorities may still ask for “suitability assessment” questions about bidders’ past experience and qualifications. Award decisions must also be advertised in the Contracts Finder.
Contracting authorities must ensure that their contractors and sub-contractors are paid within 30 calendar days of receipt of an undisputed invoice. Authorities who do not follow these rules will be required to publish annual statistics about their failings and levels of penalty interest accrued as a result of their failure to comply.
For more information contact John Forde, Senior Associate, or Rebecca Rees, Partner, Projects and Construction, Trowers & Hamlins
t: 020 7423 8353
email: firstname.lastname@example.org, email@example.com
Incorporation of Terms of Reference – A Guidance Note
The ACA recommend the following as best practice guidance:
1. Ensure you complete and sign an appropriate and current Standard Form of Agreement / Contract at the outset.
This should prevent misunderstandings on what has been agreed.
2. Agree the scope of services within the Agreement / Contract with the Client. Clarify what is included and the cost.
This should avoid the risk of unlimited liability
3. Consider the effect of any proposed amendments to the Standard Form and ensure you take appropriate legal advice.
Avoid jeopardising good working relationships
4. Ensure all terms of any agreement / contract are clearly set out and that none are “incorporated by reference” as these will not appear within what you sign.
If necessary ensure terms of agreement are signed separately.
Don’t waste time and avoid costly disputes
PPC/TPC Annual Conference 2014 – Delivering Social Value through Collaborative Construction – making the money go further
Date: 3 November 2014
Venue: Kings College Great Hall, London
An enticing programme has been developed with a format including both keynote and interactive quick fire panel sessions. Keynote speakers confirmed include Peter Hansford, Government Chief Construction Adviser; Dr Nelson Ogunshakin OBE, Chief Executive ACE and, Richard Harrison, President ACA
This conference will help you learn:
• What is social value and why is it important?
• Can social value can be combined with financial savings?
• What does this mean for local government and housing associations?
• Have social benefits been achieved through new procurement models?
• How is added value being generated on the largest prison project in Europe?
• Do social value initiatives fit with BIM and EU procurement?
• What new opportunities can be created for SMEs?
Panel sessions will debate:
1. The Big Challenge – How to Combine Social and Economic Benefits through Collaborative Construction. Chaired by Terry Stocks, MoJ
2. Social Value, Innovation and BIM – Chaired by Fiona Moore, Director Cirrus CS
3. Social Value – Beyond Apprentices – Chaired by Antony Silk, AmicusHorizonLtd
4. SMEs – New opportunities – Go Grab Them! Chaired by Kim Newman, PML Group
Panel sessions will include quick fire 6 minute presentations from panelists with plenty of opportunity to interact through facilitated discussions from the chairs and expected Q&A from delegates.
For full information visit: www.ppc2000.co.uk/conference.html and download a booking form and stay on and see who the 2014 awards winners will be. Perhaps you have an award you would like to submit – visit www.ppc2000.co.uk/awards.html for application forms.
For all conference enquiries contact: Shona Broughton on firstname.lastname@example.org or by telephone on 020 8466 9079.
PPC/TPC Contracts govern three of the four Government Trial Projects launched at the Government Construction Strategy in July 2013
Association of Consultant Architects
Representing the interests of architects in practice
for immediate publication
INDUSTRIAL STRATEGY FOR CONSTRUCTION TRIAL PROJECTS DEMONSTRATE MAJOR SAVINGS UNDER PPC2000 AND TPC2005
The Government Construction Summit on the 2nd July 2013 has firmly endorsed PPC2000 and TPC2005 contracts directly in line with its recommendations for widespread use of BIM and early contractor involvement.
Of the four trial project Case Studies published by Government (https://www.gov.uk/government/publications/government-construction-strategy-trial-projects) three use PPC2000 and TPC2005 contracts. They achieved 20% and 30% savings on programmes as diverse as roads, prisons and housing as well as improved design under BIM, extended warranties, new jobs and effective risk management. These case studies clearly show how PPC and TPC provide “a complete procurement and delivery system, distinct from other forms of contract available” (Arup Report on Partnering Contracts).
In this important year, the PPC/TPC Steering Group is delighted to announce applications are open for the third annual awards for innovation in partnering using PPC2000 and TPC2005. The winners will be announced at the PPC/TPC Conference on October 7th 2013 in Windsor Great Park, Surrey. Submissions of a case study or research paper of between 1000 and 2000 words are invited for practitioners. Applications should show their relevance to collaborative working and PPC2000 and TPC2005 processes.
The awards will be presented at the opening night of the PPC/TPC User Conference which features Peter Hansford, Government Chief Construction Adviser as the keynote speaker. The closing date for receipt of submissions for the awards is the 6th SEPTEMBER 2013
Dated: Wednesday 17th July, 2013.
LATE PAYMENT OF COMMERCIAL DEBTS (INTEREST) ACT AMENDMENTS BY THE LATE PAYMENT OF COMMERCIAL DEBTS REGULATIONS 2013
On 16 March 2013 changes were made to The Late Payment of Commercial Debts (Interest) Act 1998 (as amended) (the Late Payment Act) by The Late Payment of Commercial Debts Regulations 2013. The changes effectively impose restrictions on what purchasers (in PPC terminology the
‘Client’) can agree in terms of payment dates and interest rates in the event of late payment. There are different restrictions depending on whether the Client is a ‘contracting authority’ or not. For these purposes ‘contracting authority’ has the same meaning as in The Public Contracts Regulations 2006
Trowers & Hamlins LLP and the Association of Consultant Architects do not consider that any changes are needed to PPC2000 where the Client is not a ‘contracting authority’. However, some changes are considered necessary where the Client is a ‘contracting authority’. ‘Contracting authorities’ are required to pay within 30 days of certain ‘trigger dates’ in the revised Late Payment Act. Trowers & Hamlins LLP and the Association of Consultant Architects recommend that the amendments contained in this loose leaf updater are incorporated into PPC2000 for contracts entered into after
BIM Protocol and Employment and Skills Guidance Issued for PPC2000
A BIM protocol has been issued to accompany PPC2000. Please download this from here: BIM Protocol
Additionally CITB – Construction Skills has agreed with the ACA model contract clauses and guidance to enable public sector clients to specify employment and skills requirements for any construction project. These model contract clauses are set out in the document: Employment and Skills and can be included as a Special Term under clause 28 to deal with the implementation by the Constructor of a Client’s Employment and Skills Strategy through the development of an Employment and Skills Plan and supporting Method Statement. An advantage of the PPC2000 two-stage contract is the potential for additional commitments to be secured post-selection during the preconstruction preparatory phase of the Project. The Special Term also identifies requirements for exchange of information, regular reports and appropriate employment and skills KPIs and Targets. Monitoring is through
monthly returns made against the Employment and Skills Plan, showing actual employment and skills outputs against the KPI targeted outputs.
Housing Innovation Awards 2012
Central Housing Investment Consortium (CHIC) has been revealed as a winner at the 2012 Housing Innovation Awards.
CHIC is the proud winner in the “Most Innovative Procurement Model” category and beat off stiff competition from a range of notable nominees that have been delivering innovation across the social housing sector. This news coincides with the announcement that CHIC is also nominated at the GO National Procurement Awards 2012 in the category “collaborative procurement initiative of the year”.
CHIC is a consortium of ten social landlords working in partnership to secure maximum efficiencies across their asset management functions. CHIC has managed to lever typical average savings of circa 25% across asset management materials purchasing by increasing the buying power of its member landlords. So far this year members have secured savings in excess of £1million and are set to see greater savings in the near future. CHIC is working in partnership with other consortia and now reaches over 300,000 homes.
CHIC demonstrated added value through the savings available from its OJEU compliant contracts, which are now accessible to new members. The judges also noted CHIC’s commitment to active resident engagement and to the employment and skills agenda. The CHIC model differs from some other procurement consortia as an emphasis has been placed on employment and skills no matter where the supplier is based or the service delivered. CHIC’s suppliers and contractors are now being monitored and supported to ensure that training and apprenticeships are delivered. Residents have been actively involved from inception and throughout the development of the consortium.
John Fisher, Partner at Ark Housing Consultancy, CHIC’s managing agent commented “we are thrilled to have received this prestigious award and to gain external recognition for CHIC’s innovative approach. Member landlords have shown unrivalled commitment to partnership working in a bid to release cashable savings. As the consortium grows and further savings are realised, these savings will be re-distributed to the benefit of resident communities.” All projects are procured under TPC2005
Alexandra Place, in Woodley, Berkshire, wins a national Housing Innovation Award March 2012
The scheme, which consists of 64 one and two bedroom apartments for 55s and over, was awarded the prize for ‘Most Innovative Supported/Sheltered Housing Scheme’. The scheme was developed through a partnership with Wokingham Borough Council, Central & Cecil, Catalyst Housing Group, Housing 21, Leadbitter Group and PRP Architects. Central & Cecil manage Alexandra Place, with Housing 21 providing the care. The scheme is designed to meet the needs of older people and offers varying levels of care and support on-site, 24 hours a day, 7 days a week. The scheme was built under PPC2000
Hackney City Academy
News flash: Hackney City Academy receives an A-Rated Energy Performace Certificate
HGCRA LDED AND CONSTRUCTION ACT 2009 AMENDMENTS
The amendments necessary for PPC2000 (08 Amendment), TPC2005 (08) Amendment, SCP2005, SPCShort Form, STPC2005 are available from the links below. These must be used in all contracts signed from 1st October 2011. Please note, there are tracked changed versions of the payment clauses attached to the PDF amendments for clarification – this is provided for information only and should not be incorporated into the published form.
PPC2000 (08 Amendment) can be downloaded from this link.
TPC2005 (08 Amendment) can be downloaded from this link.
SPC2000 (08 Amendment) can be downloaded from this link.
SPC Short Form (Issued 2010) can be downloaded from this link.
STPC2005 (Issued 2010) can be downloaded from this link.
October 2010 NOW AVAILABLE – New copies of:
- SPC2000 Short Form – ACA Standard Form of Specialist Contract for Project Partnering
- STPC2005 – ACA Standard Form of Specialist Contract for Term Partnering
- Guide to ACA Term Partnering Contracts TPC2005 and STPC2005
to order copies go to the Publications Order page under Services above.
We would be grateful for your help with a short questionnaire on the PPC/TPC contracts. Additionally, we will be running a workshop in London on the 6th September to help us evaluation the effectiveness of these documents. If you would like to attend please contact us and we will let you have more information. To complete the questionnaire, please follow the following link: PPC/TPC Questionnaire
PPC scores 1st in OGC review
The independent Partnering Contract Review commissioned by OGC from Arup Project Management has confirmed the compliance of PPC2000 with the OGC Achieving Excellence in Construction principles. It recommends that each of PPC2000, NEC3 and JCT Constructing Excellence in their different ways satisfy the OGC Achieving Excellence in Construction requirements. However, on the detailed scoring it is PPC2000 that comes out ahead of the other two forms. Dr. David Mosey of Trowers & Hamlins reports on some of the findings of the Arup report (click here for a link to the article)
NOW AVAILABLE – AMENDED 2008 versions of:
- TPC2005 (launched 5th October)
to order copies go to the Publications Order page under Services above.
To see an outline of the changes have been made following this link: Introduction to amendments to PPC/SPC/TPC-08
Introduction to Pricing under PPC2000 – for use with PPC2000 and PPC International
Now available at £5 a copy (25% discount on orders for 10+ copies)- see Publication order page under ‘Services’. This guide into pricing as a two stage exercise under PPC2000 and PPC International has been written by members of the PPC Steering Group: Phyllis Easey of Catalyst Housing Group; David Mosey of Trowers & Hamlins; Kevin Murray of London & Quadrant Group, Paul Nicholls of United House, Geoff Nobbs of Wates; Neil Thody of Cameron Consulting; Nick Warmington of Philip Pank Partnership and Bob Wren of RJWA Consulting.
Special Terms for PPC2000 and SPC2000 for dealing with Project Bank Accounts – (note these terms are integrated into the updated 2008 editions, but can still be used with pre-2008 editions) Download these special terms from this link: PPC2000 – Special Terms PBA; SPC2000 – Special Terms PBA
PPC International and SPC International NOW AVAILABLE
The conference in 2007 at the Royal College of Physicians, Regents Park, London saw the launch of PPC International and SPC International
These International versions of PPC2000 and SPC2000 have been published by ACA following recent successful trialling in the Middle East by Trowers & Hamlins – most notably on the University Hospital, Dubai, a $900million project which was set up under PPC International.
WHITBREAD ADOPTS TPC2005 FOR REPAIRS AND MAINTENANCE PROGRAMME
Whitbread Group plc has signed TPC2005 Partnering Contracts with Inspace and Enterprise for a three year nationwide programme of reactive repairs, planned repairs and maintenance across its various brands (including Premier Travel Inn, Beefeater, Brewers Fayre, and Costa Coffee). This is a major private sector use for TPC2005, which demonstrates the increasing private sector interest in partnering. A detailed case study follows soon….
SPECIAL TERMS available for:
to comply with CDM2007 after 6 APRIL 2007
You can now download special terms that can be inserted in the agreement part of either PPC2000, SPC2000 or TPC2005 in order to comply with the Construction (Design and Management) Regulations 2007. Special Terms for SPC2000 are also being produced and will be available shortly. Go to ‘Downloads’ and then to ‘Checklists’ on this site for the PDF. (You need to be registered on this site to view Downloads – so log in first)
Approved Code of Practice NOW PUBLISHED
The approved Code of Practice which goes with CDM2007 has been published now and is available from HSE priced £15.00. See article in the latest PPC User Group Newsletter regarding CDM 2007 entitled “The CDM Regulations are changing… how will it affect works under PPC2000 and TPC2005” by Fiona Bishop of Trowers & Hamlins. The Newsletter will be posted to the PPC User Group section of this website under ‘Services’ during April.
Go to Archive for other news about PPC2000