Groundbreaking Framework Alliance Contract to increase opportunities for SMEs

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A Midlands housing association, Futures Housing Group has become the first organisation to adopt the new Framework Alliance Contract (FAC-1), which is intended to make it significantly easier for small and medium sized enterprises (SMEs) to access large contracts.

The FAC-1 Framework Alliance Contract, written by Professor David Mosey PhD, combined with the latest procurement rules, has enabled SMEs to tender for parts of bigger overall frameworks with Futures Housing Group. This has created healthier competition in the marketplace and access to a richer resource pool for the organisation.

John Thornhill, head of procurement at Futures Housing Group, said: “The first contract we’ve put out under these new rules, which was for planned maintenance works, has seen around 90 businesses bid for the contract.

“The changes to the law have put us in touch with smaller businesses that previously weren’t able to afford to work with us.

“Our new contract includes innovative ways of making the bidding process and the use of Lots more attractive, allowing them to compete on a level playing-field against the larger companies.

“The new FAC-1 Framework Alliance Contract is exactly the right tool to ensure this happens. Its language is plain and the possibilities for collaboration across the supply chain are almost endless.

“It’s a win-win situation as it means we have a better selection of contractors, which makes for greater competition in the marketplace and enables smaller firms to generate more income through big contracts and increase their cash flow.”

Read the article here.

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