Two Stage Open Book QA

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Frequently asked questions

1 Are Two Stage Open Book and Supply Chain Collaboration too complicated?

The Trial Projects and this Guidance demonstrate that delivering savings and improved value
through Two Stage Open Book and Supply Chain Collaboration is not a complicated process .
Each model creates commitments to a logical sequence for project planning and the build-up
of an Integrated Team with the benefit of maximum transparent information.

2 If Two Stage Open Book and Supply Chain Collaboration are so good, why is everyone not
using them already?

Processes similar to Two Stage Open Book and Supply Chain Collaboration have been
adopted by public and private sector Clients, but have not previously been tested and
explained as consistent procurement and delivery models. This Guidance describes how a
step by step Client-led contractual approach will enable and support the wider adoption of
Two Stage Open Book and Supply Chain Collaboration.

3 Should we wait to adopt Two Stage Open Book or Supply Chain Collaboration in our next
Procurement/Contract Award Cycle?

It is important for a Client to check its current frameworks/alliances/long-term contracts as


these may already contain procedures and objectives that open the door to Two Stage Open
Book and/or Supply Chain Collaboration.

4 Are Two Stage Open Book and Supply Chain Collaboration only suitable for a particular type
or size of project or programme of work?

The Trial Projects demonstrate that benefits of Two Stage Open Book are not limited to any
particular type of construction or engineering project.

Two Stage Open Book can be applied to an individual project or a programme of work while
Supply Chain Collaboration is designed to be applied to a programme of work.

Both Two Stage Open Book and Supply Chain Collaboration are likely to deliver
proportionately greater savings and improved value if applied to a larger programme of work.

5 Is Two Stage Open Book riskier than a single stage procurement/delivery approach?

If properly structured in accordance with this Guidance, Two Stage Open Book does not
create additional risks for the Client or any Integrated Team member. On the contrary, it uses
Preconstruction Phase processes, including joint risk management activities, to build the
maximum shared information that will minimise risks and priced risk contingencies, and that
will create transparency and consensus to assist in problem resolution.

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6 Can we adopt Two Stage Open Book after the grant of planning permission?

Preconstruction Phase processes can still create savings and improved value after the grant of
planning permission. However, the later in the Preconstruction Phase that the Tier 1
Contractor and Tier 2/3 Subcontractors and Suppliers are appointed, the greater the risk that
the Client and Consultants will lose the benefit of their contributions to the design/cost/risk
management/programming of the project.

7 Do we need additional Consultant advice?

The Trial Projects have been led by Client officers rather than external Consultants. Clients on
Trial Projects have benefitted from periodic training, mentoring and independent gateway
reviews, but otherwise additional Consultant support should not be required by reason of
adopting Two Stage Open Book or Supply Chain Collaboration.

8 Will our Consultants object to Two Stage Open Book or Supply Chain Collaboration?

Consultants may recommend departures from Two Stage Open Book or Supply Chain
Collaboration and may favour their own variant approaches to project procurement and
delivery. It is important for Clients to establish a leading role and to ensure that their
Consultants accept and understand a stable, consistent Client-led approach to Two Stage
Open Book and Supply Chain Collaboration as described in this Guidance.

9 Will Tier 1 Contractors share information regarding their fees/profit/overheads?

For Tier 1 Contractors to preserve their fees/profit/overheads while working in an Integrated


Team that is seeking to save costs and achieve other improved value, it is essential that such
fees/profit/overheads are identified and agreed in advance. The Trial Projects have
demonstrated that Tier 1 Contractors are willing to adopt this approach.

10 Will Tier 1 Contractors share information regarding their Tier 2/3 Subcontractors and
Suppliers?

For the Client to build an Integrated Team, it is essential for Tier 1 Contractors to recognise
that they do not have confidential relationships with Tier 2/3 Subcontractors and Suppliers
and that the Client has a legitimate involvement in their selection and in maximising their
contributions to a project or programme of work. The Trial Projects have demonstrated that
Tier 1 Contractors are willing to adopt a flexible approach in sharing information and in
finalising relationships with Tier 2/3 Subcontractors and Suppliers so as to support successful
Two Stage Open Book and Supply Chain Collaboration.

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