Business Models Industry Initiative

Overview

The Business Models workstream has a number of elements to it.  These include, guidance on, and adoption of, collaborative contractual practices, adoption of fairer payment practices, eliminating the need for retentions, supporting the implementation of an industry wide prequalification scheme, identifying new e-commerce platforms for embedding the previously mentioned good practice and improving productivity and supporting the introduction of other complementary procurement approaches such as the Value Toolkit, the Construction Playbook and Project 13.

Objectives

• Minimise the number of insolvencies caused by contractual disputes
• Implement initiatives that bring a collaborative approach to contracts
• Deliver fairer and prompter payment along the supply chain
• Eliminate the need for, and prevent the abuse of cash retentions
• Improve the effectiveness and reduce the bureaucracy of pre-qualification
• Support the introduction of procurement practices based on whole life value
• Identify e-commerce solutions to improve the productivity , collaboration and fairness of key operational and procurement practices.

Current activities

• Driving increased awareness and uptake of contractual guidance for collaboratively dealing with disputes
• Reviewing the impact of the CLC and Government support issued to date, forecasting the likely commercial impact of Covid-19, Brexit and other matters, such as Reverse Charge VAT, and developing further supporting interventions in response
• Developing initiatives for wider coverage and greater transparency on payment performance
• Driving improved compliance with existing payment legislation
• Promoting the exclusion of unfair contractual clauses from contracts
• Looking at how to eliminate the practice of cash retentions

An overview and directory of all COVID-19 contractual guidance and templates can be found here.