What is FAC-1?
FAC-1 is the first standard form of Framework Alliance Contract and follows consultation with 120 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.
How can you use it?
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
What people are saying about FAC-1
“This revolutionises the value of frameworks – and keeps them alive throughout the term. This is the means to align relationships and focus attention collectively in meeting new challenges and rising expectations. I see fantastic potential for insight, value and benefit from such an alliance” – Antony Silk, Director of Procurement, AmicusHorizon
“Evolution and innovation are key to a dynamic construction industry. The new Framework Alliance Contracts combine both and provide an approach to the delivery of infrastructure projects which can be accommodated within and benefit any client’s procurement strategy ” –Dr Nelson Ogunshakin OBE, Chief Executive, Association for Consultancy and Engineering
“I personally value the brevity and logic of the language as well as of course the partnership based approach” – James Dickinson, Head of Legal, British Gas Business Services
“It is wonderfully concise – I look forward to seeing the new form in action” – Paul Greenwood, MD Greenwood Consultants, Accredited BS11000 Collaborative Business Relationships Facilitator
“I like the style which is easy to read. I also like the concept of the Framework Alliance Contract which draws the parties together” – David Ferroussat, Infrastructure Procurement Director, Heathrow Airport
“I like the idea of a standard Framework Alliance Contract, especially one that can also be used with other forms of contract” – Gareth Stephens, Associate Commercial Director-Construction Division, Mulalley and Company
“This is a thoroughly modern contract that reads well and is easy to follow” –Francis Ho, Head of Construction, Olswang solicitors
“Integrated team work is at the heart of both successful projects and longer term arrangements. FAC-1 succinctly creates structures for long term collaboration through its use of core groups and alliance managers. It promotes efficiencies and therefore success through its commitment to shared practices amongst framework members” – Nigel Blundell, Partner, Pinsent Masons solicitors
“The Alliance Contract seems to me a model of clarity” – Lindsay Henshaw, Associate Fellow, Contract Management course leader, MSc in Major Programme Management, Said Business School, University of Oxford
“We see the new Alliance Contracts as a logical iteration following 15 years of partnering” – John Kiely, Director Housing and PublicSector, Savills
“The documents are easy to follow and understand with a clear thread running through them, even for a relative layman” – Jamie Staples, Business Development Manager, SouthernConstruction Framework
“This is a robust and valuable set of contract documents and I look forward to working with them in the near future” – Nigel Barr, Managing Director, Stradia
“Futures Housing Group has adopted the Framework Contract Alliance (FAC-1), which not only makes it easier for small businesses to bid for deals, it sets shared objectives for those on the framework. Alliance members are expected to work together to improve value, share information on suppliers, review and compare prices and tender or renegotiate subcontracts”- Supply Management magazine
“This is an excellent contract. It is a working tool rather than something you sign at the start and forget about unless there is a problem” – Jason Russell, Assistant Director of Highways and Transport, Surrey CountyCouncil
“The FAC-1 system of Supply Chain Collaboration has already delivered major benefits – it makes an important contribution to the success of alliancing” –Assad Maqbool, Trowers & Hamlins solicitors
“The development of the Framework Alliance Contract is a most welcome initiative” – Ellis Baker, Head of Construction and Engineering, London, White & Case solicitors