Guild Living has agreed an innovative supply chain framework with its contractors to revolutionise the way that major projects are delivered
The Guild Living Alliance Framework is designed to ensure that key contractors deliver schemes of a higher quality while minimising delays, and ensure work is fair, transparent and “dispute free”.
The framework will be put to use on Guild Living’s first four developments in Bath, Epsom, Uxbridge and Walton-on-Thames.
It aims to overcome problems associated with ‘traditional’ forms of procurement, which too often are focused on achieving the lowest price for contracts and which see risks transferred between parties, rather than being shared.
This fragmented approach can lead to delays and disputes and, as a result, to parties protecting their own interests rather than working in the best interests of the project as a whole.
The Guild Living Alliance Framework has been agreed with Wates Group and Morgan Sindall Construction, Sir Robert McAlpine, and Marchese Partners, through a process facilitated by Cast and supported by Eversheds Sutherland.
One of the key principles is to include contractors at an early stage of the design process before architects have produced detailed designs.
This means any design issues can be addressed early, saving time and enhancing the quality of each development.
Under the framework, risks that can occur during the development process are assessed and allocated to the party who is best placed to manage them. Where no party is best placed to manage the risk, for example, in the event of a pandemic like Covid-19, the risk is shared.
The framework also sets “fixed and appropriate” profit margins from the outset, alongside a commitment to produce best value and a consistent pipeline of work for all framework partners.
Another key principle seeks to set higher standards on health and safety and build quality, and a commitment to ensure that Guild Living retirement communities are committed to net-zero carbon emissions.
Changing the way we build
Phil Bayliss, CEO of later living at Legal & General and chairman of Guild Living, said: “It’s time to change the way we contract to build.
“This is about creating the right behaviours, investing in the future, and seeking out efficiencies in the way we build and manage a major project.
“As long-term investors it is vital that we’re able to embed principles in the way we work with our supply chain partners that help us to achieve the highest standards of delivery.
“This agreement aligns the interests of our partners in a fair and transparent way and puts in place an exceptional team to deliver our first four Guild Living schemes.”
Mike Maxwell, director of construction at Guild Living, added: “Just as Guild Living is pioneering a new way for people to live in later life, we also want to ensure that the way we work with our supply chain breaks new ground.
“This is a true partnership that’s based on fairness, open communication and the shared goal of creating fantastic communities that can support the health and happiness of our older generation.”
Grant Findlay, director of business development and work winning at Sir Robert McAlpine, commented: “We applaud Legal & General and Guild Living taking a leadership role in the development of a new approach to project delivery in the commercial sector.
“We are delighted to be in partnership with them and fellow contractors in this ground-breaking alliance.
“Having seen the benefits it creates, we are advocates of collaborative working early in the development process.”