FAC-1 Framework Alliance Contract – what is it all about?

FAC-1 Framework Alliance Contract – what is it all about?

A few months ago, John Hughes-D’Aeth, partner at Berwin Leighton Paisner, considered the introduction of the new standard form FAC-1 Framework Alliance Contract (FAC-1).

In this month’s article, we hear from Professor David Mosey, Director of the Centre of Construction Law and Dispute Resolution at King’s College London, who led the drafting of FAC-1 contract. Professor Mosey provides insight into the use of framework alliance contracts and highlights how FAC-1 can contribute to successful frameworks and projects.

Lexis®PSL subscribers can enjoy expert guidance on similar topics as featured in this article. If you are not a subscriber, you can take a free trial of Lexis®PSL Construction here.

Frameworks and alliance contracts

Framework contracts are entered into with one or more suppliers in order to establish the terms governing project contracts (sometimes called ‘call-offs’) awarded over an agreed period. The importance of integrated and collaborative frameworks was underlined in a 2016 report of the Local Government Association (LGA) and the National Association of Construction Frameworks (NACF):

‘Both the LGA and NACF believe and support the position that significant savings, benefits and other efficiencies in construction can be achieved by effective frameworks through the longer term arrangements, non- adversarial relationships, common incentives, integrated teams and objective assessment of performance associated with such frameworks. Continued pressures on public sector finances means that achieving such benefits and efficiencies will be vital.’

Alliancing contracts are designed to enable participants to cooperate on a project or programme of work. The Infrastructure Client Group Alliancing Code of Practice 2015 defines an alliance as ‘a collaborative and integrated team brought together from across the supply chain. The team share a set of common goals aligned with customer and client outcomes and

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