A  Critical  Analysis  of  a  multi-­discipline,  multi-­organisation  Framework   Agreement  on  a  Nuclear  Licensed  Site

Abstract

Within the construction industry, and particularly on government run projects, the use of framework agreements is rapidly extending. It is becoming the preferred way to deliver work. A Framework Agreement is most commonly utilised when the programme of required works is long term, and sometimes can be largely unknown. On the Cumbrian Nuclear Licensed Site, owned currently by Nuclear Decommissioning Authority, Sellafield Ltd are currently overseeing a Multi-­ Discipline Site Works framework at a value of circa £250m. This mulita-­ organisation framework employs 3 Delivery Partners to deliver Decommissioning, Infrastructure and Production Operations to the Sellafield Site. The Framework has been let using this procurement strategy in order to maintain a collaborative working approach to successfully complete necessary works in a safe, cost and schedule efficient manner. Safety, programme, and value for money are key considerations for the Client and as such it is believed this Framework is the most suitable way to deliver these aspirations. However, the main aim of this study is to establish whether, given numerous site constraints due to the nature of the work, the benefits aspired to are realistically achievable. The overall purpose of the study is to establish whether a multi-­organisation, multi-­discipline framework is a suitable solution for delivering government projects of a complex nature on a Nuclear Licensed Site.
The main methods chosen to carry out this research include an in depth review of relevant literature in order to understand any benefits and potential constraints of using framework agreements in this manner. In addition to this, current legal legislation and case law studies (both European and British) have been analysed to establish an appropriate way of administering framework agreements. In order to collect data and opinions from industry experts, a survey was conducted, as well as individual formal interviews with both the Client and a Contractor on the Framework, as well as the Clients Consultant advisors within Mott MacDonald.
The main findings of the study show that a complete understanding and knowledge of OJEU legislation and Award Criteria are vital to ensure the success of a Framework Agreement. Additionally, it was established that a multiorganisation Framework on this constrained site is preferable to a single organisation due to the benefits it has with regards to resource pooling, effective competition and programme requirements.