Launch of TAC-1 Term Alliance Contract

Yesterday we heard the first users of the TAC-1 Term Alliance Contract describe their experience of procuring a new term alliance. Paul Wenham of Southern Housing Group explained to over 60 delegates that Southern's objectives, set out in TAC-1 Schedule 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".

In 2016 Southern commissioned soft market-testing as to views on different contract forms and found that over 80% of contractors preferred the TPC2005 term partnering contract compared to the JCT and NEC term contracts. Then, advised by Cameron Consulting, Southern opted to trial the improvements embodied in TAC-1 as the successor contract to TPC2005 even before the new form was published. TAC-1 follows a year of research and industry consultation led by the King's College Centre of Construction Law, creating a new form that combines the best of TPC2005 with the structure and features of the well-received FAC-1 Framework Alliance Contract. Details of both forms are available at www.allianceforms.co.uk.

Southern have now awarded the first ever TAC-1 contracts to Amber Construction, Chas Berger, DW Support Services and AD Construction for planned and cyclical asset management worth over ￡23 million per annum. As TAC-1 "Providers" , the four companies will also undertake design services, will obtain input from early-appointed sub-contractors and will create common supply chains seeking improved value for Southern. These initiatives are supported by the TAC-1 clause 6 system of "Supply Chain Collaboration", with alliance activities mapped out in the Schedule 2 Timetable and Schedule 3 Risk Register.

Already a second client, Catalyst Housing, has selected the TAC-1 contract as the basis for a major programme that will go to the market in August this year.