Compliance is extremely important for organisations across all industries. For companies operating within the public sector, compliance becomes even more important, given the strict regulations and compliance frameworks they must adhere to.
With frameworks developed to streamline procurement processes and ensure efficiency and transparency for public sector organisations, upkeep is then required to maintain framework compliance.
It’s equally important to understand how frameworks can ensure compliance and protect you from potential risks.
At Procure Partnerships Framework, we follow rigorous guidelines to ensure compliance with Public Sector Regulations 2015 (PCR15) and mandate all contractors on the framework, ensuring project efficiency.
Procure Partnerships Framework plays a key role in the public sector procurement process, so we understand the importance of managing compliance. Read on for more information on how you can maintain compliance when procuring a contractor to deliver your project, whether you are using a framework or an open tender.
Why Is Compliance So Important?
Compliance is important because it ensures that individuals and organisations adhere to laws, regulations, standards, and policies relevant to their operations.
Compliance maintains order and trust within systems, whether they be in business, finance, healthcare, or, in this case, the construction sector. It also protects the interests of employees, customers, investors, and the public, ensuring their rights, safety, and privacy are respected.
Secondly, compliance encourages ethical conduct. It establishes a framework for fair and transparent practices, preventing corruption, fraud, and misconduct. This ultimately builds trust with stakeholders, improving the organisation’s reputation and credibility.
Compliance also boosts operational efficiency. When businesses standardise their processes and procedures, they are ultimately streamlining their operations, reducing errors and optimising resource allocation. Frameworks that adhere to regulatory compliance often include best practices that improve productivity and performance.
The 6 Tips to Maintain Compliance (and Reduce Risk!)
Here are six practical tips to ensure compliance with regulations, optimise processes, reduce risks, and enhance overall project efficiency when procuring a contractor to deliver your project.
Tip 1: Conduct a thorough Vetting Process
Before hiring a contractor for a construction project, be sure to vet contractors against skills and certification requirements. This ensures adherence to industry standards like PAS91 and the Common Assessment Standard, checking things such as health and safety records, certificates & financial stability. It can also check criminal history, giving you assurance that you’re in good hands.
Vetting the contractors thoroughly ahead of the tender process ultimately saves time and assures clients of trusted contractors. At Procure Partnerships Framework, our contractor partners had to undertake a pre-qualification process when tendering to be part of the framework, so you can be assured that all contractors in each region and lot have been vetted against strict industry standards.
Tip 2: Check Contractual and Framework Agreement Requirements
We ensure that all contractors follow specific business rules by having them sign a framework agreement. This agreement covers important aspects like keeping insurance updated, paying suppliers fairly and on time, and meeting diversity standards. This ensures fairness and prompt payment for everyone involved. If they fail to meet the agreement’s requirements, they can be removed from the framework.
Tip 3: Monitor Performance
To make sure projects are delivered on time and within budget, we keep an eye out for problems like increasing costs before they become major issues. We start monitoring contractors at the pre-construction stage, so our clients are protected from the very start of the procurement process.
We regularly monitor project milestones, key performance indicators, social value delivery and subcontractor compliance. This helps us catch problems early, and allows us to intervene.
At Procure Partnerships Framework, we monitor project performance monthly, providing clients with detailed reports through our in-house project management software. We also performance manage all of our contractors on the framework to ensure adherence to the framework agreement.
Tip 4: Complete Relevant Training
It’s important to stay updated on rules and regulations. That’s why we provide Continuing Professional Development (CPD) training to all our clients. This keeps everyone informed about the newest industry standards, helping attendees make informed decisions on their projects.
Tip 5: Consider Hidden Costs
Always consider hidden or unexpected costs – choose a framework where all contractors have fixed hourly rates and overhead and profit (OH&Ps) costs to avoid unwanted surprises.
We recommend utilising strong tools to evaluate bids that ensure you get the best deal. At Procure Partnerships Framework, we have experts and purpose-built tools to help find any inefficiencies in bids and ensure you get the most value for your money.
Tip 6: Mandate Social Value Delivery
Under the Social Value Act 2012, before public sector organisations award contracts, they must consider how they’ll benefit society, the economy, and the environment. Businesses winning contracts should do more than just finish the job – they should also make a positive impact on society while managing costs.
The Social Value Act 2012 requires a minimum weighting of 10% to the tender evaluation criteria. At Procure Partnerships Framework, we aim for higher than the benchmark and require contractors to deliver at least 12% social value add on their projects, which is often surpassed. On average, our contractors achieve 26% social value add across all projects by setting realistic plans, and tracking their progress through the Compliance Chain platform.
Ensure Compliance With Procure Partnerships Framework
Whichever procurement route you take, be it with a framework or via open tender, it is essential for public organisations to uphold compliance standards in their procurement processes.
When you follow these helpful tips, you can mitigate compliance risks and ensure adherence to regulatory requirements.
At Procure Partnerships Framework, we’re committed to assisting public sector organisations in achieving end-to-end project success through proactive, effective, and robust procurement methods.
With our dedicated support and expertise, we continue to empower organisations to navigate complex procurement landscapes with confidence, ensuring seamless project delivery and driving positive outcomes for communities across the UK.
Download our user guide to get started with Procure Partnerships Framework today.
Faye Dolan, an esteemed professional and Framework Director at Procure Partnerships, boasts a rich and diverse career spanning seven years in the construction industry. Faye’s journey within Procure Partnerships began in 2018 as a Key Account Manager, initially overseeing the North West region and later extending her purview to the entire North.
