Thomas Telford Ltd, the commercial arm of the Institution of Civil Engineers and publisher of the NEC Contract suite, has announced today its acquisition of the Framework Alliance Contract (FAC-1) and the Term Alliance Contract (TAC-1). The strategic move also sees King’s College London Emeritus Professor David Mosey CBE FICE, who played a leading role in the creation of FAC-1 and TAC-1, join the NEC4 Contract Board. The acquisition means users will benefit from a single, trusted source of collaborative framework and term contract solutions, as well as advice and training.
The acquisition more closely aligns these contract options and, crucially, adds a framework alliance contract into the NEC suite. NEC has long championed a collaborative approach to project management and delivery in its 30-year history, and offers a contract suite for works, services and supply.
In 2016, FAC-1 and TAC-1 were developed and launched by a research team led by Professor David Mosey, and they have since gained widespread recognition. The multiparty FAC-1 helps to achieve better results through shared goals, effective communication, supply chain integration and improved learning among alliance members. Meanwhile, TAC-1 provides a versatile standard form term alliance contract that combines call-off with team integration and systems designed to achieve improved value.
The acquisition of the two contracts from the Association of Consultant Architects (ACA) will further strengthen and enhance NEC’s offering to the market. The integration of FAC-1 and TAC-1 with NEC will provide multi-party contract options that extend alliance arrangements within the NEC suite of contracts.
“NEC4 contracts, FAC-1 and TAC-1 are ideally suited to work hand-in-hand.” explained Rekha Thawrani OBE, Global Director at NEC Contracts. “This acquisition will have a positive impact on user experience and ensure that we can offer an integrated, highly experienced and specialist team with an unrivalled level of knowledge when it comes to collaborative contracting and supporting customers throughout project lifecycles.”
Professor David Mosey, who has spent two decades working on collaborative projects, also commented: “The FAC-1 and TAC-1 alliance contract forms have gained extensive traction in the UK and other jurisdictions, including a strong recommendation of FAC-1 in the UK Construction Playbook. As lead author of both forms, I am delighted that Thomas Telford Limited and the Association of Consultant Architects are collaborating to offer FAC-1 and TAC-1 to a wider client group as part of the NEC family of contracts. I look forward to supporting this initiative.”
Andrea Naylor, Managing Director, Thomas Telford Limited, concluded: “This is welcome news for the industry. The challenges and complexities of delivering successful construction projects today are vast, and the need to address decarbonisation and sustainability is critical. Ensuring that professionals can draw upon a comprehensive suite of contracts from the NEC family will make it even easier to facilitate the collaborative behaviours and processes needed to achieve true project potential. This acquisition confirms Thomas Telford Ltd as the home of collaborative contracting.”
FAC-1 and TAC-1 will be available for purchase alongside the existing suite of NEC contracts. To view the joint guidance on the use of NEC contracts with FAC-1 visit: www.neccontract.com/news/fac1-guidance
