Frameworks offer an essential route for offsite providers into the public sector marketplace. This core component of procurement strategy is often misunderstood outside the procurement profession. Louise Hardcastle, Buyer – Buildings at the YPO, offers some much-needed clarity.
MMC is a rapidly growing part of the construction industry, and the public sector is increasingly recognising the advantages it brings to projects of all sizes. These include faster and more predictable delivery, along with sustainability benefits.
A framework is defined under the Procurement Act 2023 as: “a contract between a contracting authority and one or more suppliers that provides for the future award of contracts by a contracting authority to the supplier or suppliers.” The contracting authority runs a single competition to establish the framework.
Framework users can then award call-off contracts more quickly using the framework’s appointed suppliers. The framework sets out the scope, pricing structure, terms and conditions, and the rules for awarding call-offs. Suppliers appointed to a framework are eligible for call-offs, but the authority is not obliged to award any. All call-off contracts must comply with the rules of the framework.
Market insights
A well-designed framework begins with market engagement. This is where demand is assessed, and the capacity and capability of the supply market are understood. These insights shape the tender documents, which clearly set out the quality, capability, experience, social value and sustainability criteria required to join the framework. Bidders must meet mandatory requirements and will also be evaluated against scored criteria by an evaluation team. Successful suppliers are appointed to the framework and become eligible for call-off opportunities.
Depending on the framework, users may run their own competitive selection process or award without competition, previously known as direct award under the Public Contracts Regulations 2015, in line with the framework rules. The framework owner monitors call-offs, manages key performance indicators and feedback, and carries out ongoing due diligence to ensure suppliers remain capable of delivering. Recent business failures in the modular sector have reinforced the importance of strong due diligence, ongoing monitoring and clear evidence of resilience within the supply base.
Frameworks offer many strategic benefits. The most obvious is speed. Running your own open procedure can take months, including pre-engagement and tender development. Much of this work has already been completed when using a framework, meaning a contract can be awarded in weeks. Suppliers have been pre-vetted, and processes are compliant, which reduces contract risk. Quality is assured, as all suppliers have met a minimum standard. Pricing is transparent, and internal procurement costs are reduced. Frameworks also create space for innovation within the scope, and social value considerations are built in, which is an important factor for the public sector.
The YPO vision
At YPO, we recognised the need within the public sector for an MMC framework that is compliant with the Procurement Act 2023. Through close work with our public sector colleagues, we understand the resource and time pressures they face, and how frameworks can help ease these challenges. The aim was to provide a single, reliable solution that supports consistent quality, reduces procurement burden and gives buyers confidence in a complex and evolving market. We engaged with the market to create a framework that sets a minimum standard while remaining flexible enough to support innovation. We required the Common Assessment Standard as a condition of participation to provide assurance of suppliers’ capability and compliance with building regulations.
The framework has been designed to remain flexible in a market where construction costs and material availability can change quickly. Pricing structures allow for transparency and regular review, helping buyers manage budgets with greater confidence. Our lot structure covers all major building types, including education, healthcare, catering and housing, enabling both market leaders and specialist small and medium-sized enterprises to be appointed. Most lots offer the choice between award without competition or a competitive selection process, and our dedicated team can provide template documentation where needed. Customers gain access to a knowledgeable and rigorously assessed supply base and receive support throughout their procurement, enabling fast, successful and compliant outcomes.
Buyers also need to engage with a framework at the right time. Frameworks are most valuable when used early, not as a rubber-stamp procurement route after the design is already fixed. Many buyers are missing the opportunity to use frameworks and their suppliers as a tool in early engagement to shape the scope of a project and find innovative solutions. Suppliers want the opportunity to showcase their in-house expertise and collaborate with clients from the outset to create a lasting solution.
When frameworks are used intelligently and at the right stage, they become far more than a procurement route. Engage early, use the framework as it was designed, and draw on supplier expertise from the outset. Doing so leads to better-designed projects, stronger partnerships and more successful outcomes.
