Constructing the Gold Standard

[edit] Background

The Gold Standard, also known as the Mosey review was commissioned by Lord Agnew, Minister of State at the Cabinet Office and HM Treasury at the end of 2020. Its commissioning was a natural follow-up to the reforms that were outlined in first edition of the government’s Construction Playbook 2020 of the same year.

Published in February 2022, with the subtitle 'An Independent Review of Public Sector Construction Frameworks' it was written by Professor and Director of the Centre of Construction Law & Dispute Resolution at King’s College London, David Mosey. Mosey noted at the time that over 2,000 public sector construction frameworks were active and the costs associated with the consultation processes linked to these alone were considered to account for £180bn of the public sector frameworks costs.

The review contains contributions from 20 major framework providers and over 100 clients, who brought forward framework examples, the most positive aspects of which then contributed to the gold standard. The document explains how contracting authorities might try to adopt policies that draw lessons from these examples through a series of 24 recommendations which are outlined in brief below.

[edit] Recommendations

[edit] Use in The Construction Playbook

Recommendation 1: Use the Gold Standard features of frameworks, framework contracts and action plans to measure Construction Playbook implementation on a ‘comply or explain’ basis (page 12)

[edit] Use for framework comparison

Recommendation 2: Ensure that all Gold Standard features are adopted by clients and suppliers when comparing the different construction frameworks on offer (page 18)

[edit] Safety, net zero and compact with Industry

Recommendation 3: Require that all public sector construction frameworks prioritise safety, net zero carbon and the Compact with Industry (page 23)

[edit] Use as standard form of contract

Recommendation 4: Reduce procurement costs, improve value and reduce risks by wider adoption of a standard form Gold Standard framework alliance contract (page 29)

[edit] Contractually binding economic, social and environmental outcomes

Recommendation 5: Create contractually binding Gold Standard action plans to convert framework objectives into actions and timetables that deliver improved economic, social and environmental outcomes (page 31)

[edit] Value for money for clients and suppliers

Recommendation 6: Invest in framework management that demonstrates value for money for clients and suppliers (page 35)

[edit] Supply Chain Collaboration systems

Recommendation 7: Capture improved value by identifying SME strengths and
use Supply Chain Collaboration systems to maximise social value (page 39)

[edit] Repeat work

Recommendation 8: Avoid wasted procurement costs and improve supplier commitments by ensuring that frameworks offer sustainable pipelines of work (page 41)

[edit] Emerging technologies and innovation

Recommendation 9: Use pre- procurement framework consultation to explore emerging technologies and innovations and to identify opportunities in the market (page 43)

[edit] Longer-term call-off contracts and incentives of additional work

Recommendation 10: Reduce procurement costs and improve value through the award of longer-term call-off contracts and the incentive of additional work (page 46)

[edit] Call-off contracts for MMC and other offsite technologies

Recommendation 11: Improve supplier investments in MMC and other offsite technologies by awarding framework call-off contracts for portfolios of work (page 50)

[edit] Whole life golden thread of asset information using BIM

Recommendation 12: Create a whole life golden thread of asset information using BIM and other digital technologies integrated under a framework alliance contract (page 55)

[edit] Use supply chain collaboration systems in all framework contracts

Recommendation 13: Improve economic, social and environmental outcomes through framework early supply chain involvement (ESI), using Supply Chain Collaboration systems in all framework contracts (page 60)

[edit] Incentivise innovative solutions

Recommendation 14: Incentivise innovative solutions by creating specifications for frameworks and call-offs that focus on required client outcomes (page 63)

[edit] Use delivery model assessments

Recommendation 15: Use delivery model assessments to inform and support framework strategies, procurement, contracting, management and call-off (page 65)

[edit] Evidence-based benchmarks and whole life Should Cost Models

Recommendation 16: Assess and control the costs of framework deliverables through the use of evidence-based benchmarks and whole life Should Cost Models (page 68)

[edit] Integrate mutual commitments through terms

Recommendation 17: Integrate the mutual commitments of framework providers, clients, managers and suppliers through the terms of a Gold Standard framework alliance contract (page 71)

[edit] Use joint framework systems for risk allocation and mitigation

Recommendation 18: Allocate risks based on framework market engagement and use joint framework systems for early risk mitigation and efficient responses to risk events (page 75)

[edit] Transparent pricing mechanisms and call-offs

Recommendation 19: Create transparent pricing mechanisms for frameworks and call-offs that maximise cost certainty and ensure prompt payment (page 79)

[edit] Use PAS91 PQQs or the Common Assessment Standard

Recommendation 20: Reduce procurement costs by consistent and proportionate assessment of economic and financial standing using ‘PAS91’ or the ‘Common Assessment Standard’ (page 81)

[edit] Evaluate proposals on quality, social value and net zero

Recommendation 21: Evaluate proposals for frameworks and call-offs proportionately and consistently using balanced criteria that include quality, social value and net zero GHG emissions (page 85)

[edit] Transparency to manage and mitigate supplier financial risks

Recommendation 22: Establish shared and transparent framework systems through which to manage and mitigate the risks of a supplier’s financial distress (page 87

[edit] Collaborative systems management for framework and supply chain relationships

Recommendation 23: Improve framework outcomes by creating collaborative systems for the management of framework relationships and strategic supply chain relationships (page 91)

[edit] Support with government-led training and guidance

Recommendation 24: Support the adoption of Gold Standard frameworks, framework contracts and action plans through government-led training and guidance (page 93)

[edit] External Link

For further details on any of the individual recommendations the original document can be directly downloaded here

[edit] Related articles on Designing Buildings

• Benchmarking.
• Best practice.
• Collaborative practices.
• Framework contract.
• Golden Thread.
• Independent review of construction frameworks
• Public procurement.
• The Construction Playbook 2020.
• The Construction Playbook 2022.

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