Innovative new contract launched for use in construction
The Centre of Construction Law at King's College London and the Association of Consultant Architects officially launched the TAC-1 Term Alliance Contract at an event in Somerset House in London last month.
The launch featured insights from Southern Housing as first industry users of the TAC-1, who shared their experiences of procuring a major term alliance with this new contract form.
TAC-1 is based on the well-established TPC2005 Term Partnering Contract and the more recent FAC-1 Framework Alliance Contract, the first multi-party contract of its kind in the field of construction which has transformed the way multi-party relationships are agreed and managed.
FAC-1 was developed by the research team in the Centre of Construction Law following consultation with over 120 organisations, and was published by the Association of Consultant Architects in 2016. Its success led the Centre's work on TAC-1, which follows closely the provisions of TPC2005 and develops them to incorporate features from FAC-1. The benefits of the new TAC-1 Term Alliance Contract include:
- Clients and their teams are able to obtain better results from their term contracts
- TAC-1 helps integrate a team into an alliance, creating relationships among individuals and stakeholders which support a collaborative culture, resolving problems and preventing disputes.
- TAC-1 provides the means for obtaining improved value through Building Information Modelling (BIM). This aspect is based upon earlier research from the Centre for Construction Law on Enabling BIM Through Procurement and Contracts
- TAC-1 is designed for use in any jurisdiction and so can be used in any country in the world.
The first company to start using TAC-1 is Southern Housing Group, one of the oldest and largest housing associations in the UK. Speaking at the launch, Paul Wenham explained to over 60 delegates that Southern’s objectives, set out in TAC-1, are to 'work collaboratively to achieve value for money, efficiency and best working practices' through an alliance 'dedicated to agreed common goals and an understanding of each other’s expectations and values'.
Southern have awarded the first ever TAC-1 contracts to Amber Construction, Chas Berger, DW Support Services and AD Construction for planned and cyclical asset management with an annual worth over £23 million.
Professor David Mosey, Director of the Centre of Construction Law & Dispute Resolution, said at the launch: 'TAC-1 creates new contractual systems under which a term alliance team can improve value in the delivery of their works, services and supplies. It provides for agreed objectives and success measures, governance by consensus and a timetable for supply chain collaboration and other joint activities.'
Founded in 1987, the Centre of Construction Law has drawn expertise from all sides of the construction industry and its professions, to become a truly interdisciplinary group renowned and respected the world over. Centre members include barristers, solicitors, engineers, surveyors and other related professionals, as well as those with dual qualifications in a range of fields. The Centre celebrated its 30th anniversary in June 2017.
Find out more about the Alliance Contracts developed by King's College London and the Association of Consultant Architects.