PhD Final Thesis April 2013.pdf - Anglia Ruskin Research Online

Thesis Keith Gale 2013Tesco plc in continually upgrading its grocery superstores. A strong chain ofpreselected suppliers are commissioned for various components involved in therefurbishment process. Long term programmes are issued to the suppliersbut individual projects are called off at short notice. Placing the suppliers on a ‘standby’ basis has reduced delivery times for projects from 40 to 18 weeks (SelectCommittee, 2008, question 445). The client receives priority in delivery in return forcommitment to workload.A transition from framework arrangements into framework agreements followeddevelopment of industry standard legal documentation to encourage wider usage,cumulating in publication of standard contract forms such as the FrameworkAgreement version of the New Engineering Contract 3 rd Edition (NEC, 2005). Thesignificant legal distinction between arrangements and agreements is that the formersupplements other dominant contractual arrangements whereas the latter acts as anumbrella contract with terms outlining engagement and selection methods for callingoff future work packages (OGC, 2008). Maturity of available legal documentationtogether with development of EU Directive 2004/18/EC of the European Parliamentallowed public sector organisations to form framework agreements under strictlyregulated procurement regulations.2.2 Characteristics of framework agreementsFramework agreements are arranged between parties with the intention ofestablishing long term collaborative working arrangements. A client may enter into aframework agreement with a single operator or with several operators. Theframework agreement provides an ‘umbrella’ contract with projects separated intoindividual ‘work packages’ which have discrete conditions of contract, specificationand payment mechanisms.Within the public sector, framework agreements are initiated through one of threedistinct procedures. An open procedure allows all suppliers who can meet minimumstandards to be included within the framework with no restriction upon participantnumbers. A restricted procedure requires suppliers to qualify for a place on a tenderlist by successful completion of a pre-qualification questionnaire. Restrictedprocedures cap the maximum numbers of participants and a tendering processreduces the number of successful suppliers further. An element of financial32