Procurement &
Contracts
Framework
Comprehensive strategies for procurement and contracts, moving beyond traditional practices to embrace collaborative, value-based approaches that support productization, integration, and long-term partnerships.
Introduction to the I5 Procurement & Contracts Framework
Effective procurement and contract strategies are central to realizing the benefits of the I5 Model, which transforms traditional, often adversarial, practices into integrated, productized delivery methods. The I5 Model's procurement approach shifts from a narrow focus on lowest initial price to a strategic, value-based approach that supports long-term standardization and collaboration. This is crucial for enabling collaborative relationships, aligning incentives, and managing risk effectively across the entire delivery ecosystem.
A core principle is that core digital platforms are explicitly owned, procured, administered, updated, and controlled by the owner, who grants appropriate access to partners. The governance of specific construction technologies used by partners is determined by the owner on a case-by-case basis. This ownership model ensures strategic alignment and intellectual property protection.
Framework Overview
- Owner-controlled digital platforms (BoK, VS, DfMA, AEC, SCM)
- Strategic procurement approaches
- Collaborative contract models
- Integrated supply chain management
Key Principles of I5 Procurement
The transition to productized delivery is guided by key principles:
Value Definition
Shifts from focusing on the lowest initial cost to optimizing for lifecycle value and integration efficiency.
Timing
Emphasizes early supply chain involvement during product definition, rather than traditional engagement after design completion.
Relationship Model
Fosters strategic, program-level partnerships over transactional, project-based relationships.
Scope Delineation
Focuses on integrated scope by functional system or module, rather than fragmented trade disciplines.
Risk Allocation
Promotes collaborative risk management across the team instead of transferring risk down the supply chain.
Performance Measurement
Measures contribution to overall project outcomes (tracked via owner platforms) rather than mere compliance with specifications.
Technology Integration
Mandates defined requirements for partner interaction with owner platforms and establishes owner governance over partner construction technologies.
Integration with Other I5 Frameworks
The Procurement & Contracts Framework is deeply integrated with other core I5 frameworks to operate as a cohesive system:
Core Principles
This framework is the practical application ground for the productization of real estate (treating buildings as standardized, manufactured products) and the implementation of Integrated Project Delivery (IPD) methodologies.
Learn moreDelivery Framework
The success of project delivery hinges on strategies such as early supplier involvement, the adoption of collaborative contracting models, and the establishment of long-term partnerships.
Learn moreOperational Ecosystem
Contracts explicitly address the owner's mandatory use of specified owner platforms (BoK, VS, DfMA, AEC), partner access rights, data ownership, usage rights, confidentiality, integration requirements for partner systems with owner platforms, and cybersecurity requirements.
Learn moreOrganizational Framework
The roles and responsibilities defined within the Organizational Framework directly influence cost management, resource allocation, and financial decision-making within the I5 Model.
Learn moreFinancial Framework
Financial parameters, such as investment frameworks, Return on Investment (ROI) methodologies, and risk contingency management, are directly supported by and integrated with contract structures and payment mechanisms.
Learn moreKPIs & Risk Framework
Project performance is continually monitored using a comprehensive set of Operational, Financial, and Strategic Key Performance Indicators (KPIs) that are crucial for financial assessment.
Learn moreOwner-Controlled Digital Platforms
Central to the I5 Procurement Framework is the strategic role of owner-controlled core digital platforms that enable standardization, integration, and collaborative delivery across the entire ecosystem.
Body of Knowledge (BoK)
Centralized repository for standardized components, materials, and procurement specifications
AEC Platform
Integrated project management and coordination platform for all stakeholders
Design for Manufacturing (DfMA)
Specialized platform for optimizing designs for off-site manufacturing and assembly
Virtual Showroom (VS)
Customer-facing platform for product configuration and client engagement