The Innovative AEC-neutral vendor framework by Constellia is transforming how the public sector procures construction, goods and services
Local authorities, universities, schools, housing associations, NHS trusts, and utilities have hugely benefited from the use of the AEC-neutral vendor framework during 2022.
Set up by an offshoot of Innovate UK (part of UKR&I), the framework was awarded to Constellia in 2020 and launched in 2021 as a means to allow any public sector body to procure and manage from a dynamic pre-approved marketplace via JCT and NEC forms of contracts – with Constellia acting as a “thin prime”.
600 contracts have been awarded via the framework
Over 600 contracts have been awarded via the framework in 2022 alone, ranging from new builds, Salix-funded solar panels and heat pumps, building materials and suppliers, principal designers, asbestos, kitchen fitting for schools, repair and maintenance (for example, electrical managed contracts for 10,000 houses).
Where procurement resource is scarce, organisations are outsourcing activity to Constellia. For example, one county council has mandated the use of the framework for all construction projects between £1m and £5m, and a university has replaced its multi-supplier, minor works frameworks with Constellia’s single supplier neutral vendor framework. This means that procurement should take no more than one month and can be as little as five days.
The framework gives access to the widest possible range of suppliers via the dynamic accredited marketplace. It is well suited to access a broader range of suppliers who are not on frameworks – typically called Tier 2s.
The framework allows for faster, simpler and flexible compliant process
To date, over 90 contracting authorities have used this neutral vendor solution as a compliant means to help deliver their estates objectives with unprecedented simplicity, flexibility and speed.
Constellia’s suite of construction contracts is managed by UK top 100 law firm Ward Hadaway. It works with client-side internal or external solicitors to ensure the contractual structure is simple, in the correct forms (NEC, JCT), and with risk apportioned appropriately.
Alan Ross, partner in the Construction & Engineering team, said: “The neutral vendor model is a simple yet contractually and legally robust route to procurement, which allows public sector bodies to contract for construction works.
“The appeal is in its simplicity. Our teams at Ward Hadaway have in-depth know-how and understanding of the needs of individual authorities, and the templates we have set up with Constellia allow for that flexibility. We work with the suppliers, contracting authorities and their professional and legal advisers on behalf of Constellia to ensure contracts are fit for purpose for all parties to help assure successful project outcomes.”
The framework boosts social value through the use of SME’s
One of the key benefits of the model is in helping better achieve social value outcomes through increased use of SMEs and, therefore, suppliers not found on traditional frameworks.
One such supplier is Maris Interiors. Angus Taylor, senior partner, said: “Working as an accredited supplier via Constellia has enabled us to sell with confidence into the UK education sector. As a result, one of our university clients was able to access our services to deliver their exciting building refurbishment without delay – a process that took a few weeks instead of months. We would urge any public sector body to consider the use of Constellia’s neutral vendor framework when looking at procurement options for any construction projects.”
The framework will run until January 2026
The neutral vendor model has been around for over a decade and for many, has become the default mechanism for buying services. Constellia has pioneered the use of the model for construction projects and, as it stands, is the only organisation in the UK that operates a neutral vendor framework which covers construction, works, services and goods. The AEC framework runs until January 2026 and has a value of £6bn, which can be procured via it, a good job given its growing popularity.
