Independent Review of Construction Frameworks

(Limited Text - Ministerial Extracts only)

Thursday 16th December 2021 Written Statements

[The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Steve Barclay)]

My noble Friend the Minister for Efficiency and Transformation, Lord Agnew Kt, has today made the following written statement:

The Government have today published the “Independent Review of Construction Frameworks Report”. The review is a key part of implementing the Construction Playbook which was published in December 2020 to deliver the Government’s ambition of transforming how we assess, procure and deliver public works projects and programmes. This work has been led by Professor David Mosey of King’s College London and supported by the invaluable input of over 120 participants from across the construction industry and public sector. The recommendations in the review will help to ensure the principles of the Construction Playbook apply to the many projects that utilise commercial frameworks and not only those that run standalone procurement exercises. This will help change the face of the construction industry and enable better, faster and greener project outcomes.

The review reflects the Government’s focus on delivering for the taxpayer by getting projects right from the start, driving better outcomes and achieving a more productive and sustainable construction sector. It sets out the components of a gold standard framework that will help the Government to make informed procurement and contracting decisions. The report makes specific recommendations and highlights examples of good practice that provide value for money through reducing waste and supporting innovation.

Applying the gold standard will enable us to easily identify those frameworks which embody the policies and principles of best practice while providing a number of options to ensure competition and flexibility. This will be achieved through:

An outcome-based strategic approach that drives economic, social and environmental value;

Collaborative, multi-party relationships that align objectives, success measures, targets and incentives with commitments to jointly work on improving value and reducing risk;

Improved framework call-off systems, cost models and incentives that provide a fair return for suppliers and that drive value rather than a race to the bottom.

Construction is a key UK industry and we are committed to underpinning the economy through investing in infrastructure. By improving our approach to construction frameworks, we will progress towards a sustainable and more productive construction sector which benefits all of our citizens. A full list of the recommendations is available as part of the report published today on gov.uk.

A copy of the “Independent Review of Construction Frameworks Report” has been placed in the Libraries of both Houses.

[HCWS502]