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

Thesis Keith Gale 2013systems (for example, internal budgetary approval aligns with tender receipt) will outperform those who do not.A prime characteristic of a framework agreement is the term – the pre-determinedtimescale for operation of the agreement. With public sector agreements, PublicContracts Regulations 2006, and EU Directive 2004/18/EC of the EuropeanParliament of the Council of 31 March 2004 dictate that the maximum term of aframework agreement shall be four years in duration, unless strong exceptions can bedemonstrated. A secondary characteristic of frameworks is that a client may enterinto a number of identical agreements with different suppliers effectively creating aselected community with which to deliver projects.Framework agreements are therefore not intended for single user clients or anindividual project. They are designed for use where similar sets of works or servicesare required of a selected number of suppliers over a period of time. A term of fouryears allow relationships and understanding to be nurtured where focus can be placedupon overall service rather than individual isolated performance of a project.Although framework arrangements are permitted between a single client and singlesupplier, a lack of incentive or competition may affect outcomes. Most frameworkarrangements are therefore between a client (or with conjoined clients) and multiplesuppliers to allow competitive elements to be incorporated.2.3.1 Perceived benefits of a framework agreementA number of perceived benefits are stated to apply through the use of frameworkagreements (Construction Excellence, 2009). These can be summarised as follows:• More effective and efficient tendering procedures for clients• Continuous improvement from engagement of best practice• A greater depth of understanding between all participants due to longer termrelationships• Ability for suppliers to gain a higher success rate with bidding for projects.• A higher level of commitment for a client due to longer term relationshipsNever Waste a Good Crisis – A Review of Progress since Rethinking Constructionand Thoughts for Our Future (Construction Excellence, 2009) approached35