Network Rail – CP5 Multifunctional Framework Contracts - Client of the Year Winner

National Rail
Value: £1.2bn over 4 framework contracts  over 5 years
 
Contracts used: NEC ECC Options A, C and E plus NEC PSC Option E
 
Start/finish: 1 April 2014 to 31 March 2019 with a 1 year extension option
 

PROJECT TEAM

  • Phil Bennett, Finance and Commercial Director
  • Nick Elliott, Regional Director
  • Ian Fry, Andy Duffin, Lenny Aristodemou and Saleem Mohamed - Route Delivery Directors
  • Dawn Hart, Programme Procurement Manager

The above referenced people were involved in the development of the CP5 strategy and aspirations of the Framework. Phil Bennett and Dawn Hart led on the development and implementation of the NEC.  

THE PROJECT

In 2014 Network Rail awarded four 5-year bespoke framework contracts based on the NEC3 form of contract to four Multifunctional Framework Contractors (MFF). These total £1.2bn and cover a portfolio of over 500 projects geographically spread across South East England.

NEC3 was identified as the optimum industry contract form which aligns and facilitates the corporate objective to transition into a more collaborative Client working in a transparent and trusting manner with our suppliers.

COLLABORATION

Innovations identified as a means to increase collaboration are as follows:

  • Identification of suitable contractors  who shared Network Rail’s (NR) vision to work collaboratively, who had individuals with the correct behaviours as well as the right corporate attitude/values was critical. To achieve this the tender placed 25% of the assessment on collaboration to ensure a capability to work in the spirit of mutual trust and co-operation. 
  • Early Contractor Involvement in the design solution ensures safety by design, construction methodology, innovation and technology is considered and optimised during the design phase. The MFF develops both construction and design phases under the PSC to ensure there is no compromise on spend in the design phase due to traditional design budget constraints. 
  • Whole Project Target Cost developed through mutual agreement and open book philosophy between Client and Contractor utilising a bespoke SoCC. The approach enables all costs to be captured within the Target Cost, as opposed to contractor only cost, whilst ensuring mutual incentivisation with shared rewards linked to aligned KPIs.
  • Risk Management is embedded with a collaborative approach taken to identifying and managing risk in a best for project approach with mutual incentivisation. 
  • For the first time we established committed value frameworks to the value of 60% of the 5 year workbank value.  Collaboration though the supply chain utilising a back to back ECS Subcontract with  core values and collaboration approach passed down through all tiers. 
  • Best person for project approach to management of the contracts.  
  • BS11000 accreditation pursued to complement the mutual co-operation philosophy and to drive collaboration which supports the NEC3 approach to contracting.
  • A 3 month NEC3 training programme, client funded, brought together over 300 personnel from the Contractors and NR.  This was followed by an intensive training regime for NR’s Project and Commercial Management team resulting in 9 individuals becoming PMA accredited.   To support this NR have qualified 10 team members as BS11000 approved Collaborative Leaders recognised by the Institute of Collaborative Working.

JUDGES’ COMMENTS 

"Demonstrates how collaboration starts with the selection of the right suppliers with the right culture and capability to deliver innovation at an early stage in a project based on BS11000 collaboration principles and supported by the NEC3.

National Rail

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