FAC-1 Framework Alliance Contract: A Handbook

This handbook explores the FAC-1 Framework Alliance Contract as a multi-party umbrella that connects the team members engaged in any project or program of works, services, or supplies. It explains the FAC-1 processes for planning, joint working, contract award, performance review, problem-solving, and shared learning, and it illustrates how FAC-1 helps to attract investment, motivate innovation, improve value, manage risks, and achieve net zero carbon targets.

FAC-1 has been adopted on procurements worth more than £100 billion in the UK and in other jurisdictions, and this handbook explains what is different about FAC-1, how it is used in practice, and how it works clause by clause. With 30 case studies and 46 practice notes, the handbook provides an introduction for those who are new to FAC-1, a refresher for current users, and practical tips for teams engaged in any FAC-1 project or program of works, services, or supplies in any sector.

This handbook is designed for use by framework providers, clients, designers, managers, contractors, specialists, operators, and legal advisers. It includes the features of FAC-1 as a ‘Gold Standard’ framework contract recommended by the UK government, and it explains how it can improve the efficiency of digital information management. It also provides templates, diagrams, and checklists that show how to complete FAC-1, how to use it alongside FIDIC, JCT, NEC, PPC, and TAC contract forms, and how to bring its relationships and processes to life.

Contents:

Part 1 What is Different About FAC-1?
Chapter 1 – What is FAC-1?
Chapter 2 – What is a Gold Standard framework alliance contract?
Chapter 3 – How does FAC-1 improve strategic contracting?
Chapter 4 – How do you navigate FAC-1?
Chapter 5 – How and when do you procure FAC-1?
Chapter 6 – How does FAC-1 enable successful collaboration?
Chapter 7 – How does FAC-1 drive Improved Value and Risk Management?
Chapter 8 – How does FAC-1 drive net zero carbon and improved Sustainability?
Chapter 9 – How does FAC-1 support SMEs and social value?
Chapter 10 – How does FAC-1 provide flexibility for different users and different countries?

Part 2 How is FAC-1 Used in Practice?
Chapter 11 – How does FAC-1 integrate a program of multiple Projects?
Chapter 12 – How does FAC-1 integrate the components of one or more complex projects?
Chapter 13 – How does FAC-1 create an action plan under existing contracts?
Chapter 14 – How does FAC-1 improve digital information management and whole life value?
Chapter 15 – How does FAC-1 support manufacturing and offsite construction?

Part 3 How does FAC-1 Work clause by clause?
Chapter 16 – Who are the Alliance Members?
Chapter 17 – What are the Framework program and projects?
Chapter 18 – What are Framework Brief and the Framework Proposals?
Chapter 19 – How does FAC-1 align a multiparty structure with the two-party relationship?
Chapter 20 – What are the FAC-1 Project Contracts and Template Project Documents?
Chapter 21 – What is the role of the Core Group?
Chapter 22 – What are the Objectives, Success Measures, and Targets?
Chapter 23 – How do the Incentives work?
Chapter 24 – How does the Timetable work?
Chapter 25 – What are the roles of the Alliance Manager and the Independent Adviser?
Chapter 26 – How does FAC-1 manage costs and prices?
Chapter 27 – How does FAC-1 establish Agreed Prices for each project?
Chapter 28 – How are the Project Contracts awarded?
Chapter 29 – What are the Alliance Activities?
Chapter 30 – How Does Supply Chain Collaboration Work?
Chapter 31 – What are the Orders and Pre-Contract Activities?
Chapter 32 – How does FAC-1 manage payment?
Chapter 33 – How does FAC-1 manage change?
Chapter 34 – What are the processes for Early Warning and Risk management?
Chapter 35 – What are the duties of care between Alliance Members?
Chapter 36 – How are Intellectual Property Rights & confidentiality protected?
Chapter 37 – What are the FAC-1 insurances?
Chapter 38 – How does FAC-1 state applicable laws, legal Requirements, and Special Terms?
Chapter 39 – How does FAC-1 manage duration and termination?
Chapter 40 – What are the FAC-1 processes for problem-solving and dispute resolution?