Overview
ISO 10845-6:2011 - "Construction procurement - Part 6: Participation of targeted partners in joint ventures in contracts" defines a measurable key performance indicator (KPI) for procurement: the contract participation goal (CPG). The standard specifies methods to set, measure, quantify and verify contractor performance in engaging targeted partners as joint-venture participants for the provision of goods, services or engineering and construction works. It supports two distinct targeting strategies (A and B) and provides forms, implementation guidance and verification processes to make such social and economic objectives auditable in procurement.
Key topics and technical requirements
- Contract participation goal (CPG): a KPI expressed as the sum of participation parameters multiplied by the contract amount (expressed as a percentage). (See Clause 3 and definition 2.4.)
- Targeting strategies:
- Targeting strategy A - CPG based on tendered contract amount; can be linked to tender evaluation points or minimum contract performance targets.
- Targeting strategy B - CPG based on final contract value and can be linked to financial incentives or reporting.
- Joint venture requirements: Contractors must enter into joint ventures with targeted partners and demonstrate meaningful participation in ownership, control and commercially useful functions (Clause 3.2.3).
- Verification and documentation: Contractors submit targeted partner affidavits, joint venture disclosure forms and, for strategy A, an implementation plan (Annexes C and D). Requirements include scheduled submissions, monthly supporting documentation, certification of credits, and record-keeping (Clauses 3–5).
- Compliance and sanctions: Procedures for assessing compliance, substitutions, bona fides and sanctions for non‑fulfilment are included (Clauses 4–6).
- Supporting material: Informative annexes provide commentary, examples, tender schedules and sample contract provisions (Annexes A, E–I).
Practical applications
ISO 10845-6 is designed for procurement processes that incorporate social, local economic or industry development objectives through joint-venture participation. Typical uses:
- Embedding a measurable KPI (CPG) into construction, engineering and service contracts.
- Establishing tender evaluation criteria that reward bidders for including targeted joint-venture partners.
- Structuring contract clauses, disclosure forms and verification workflows to ensure auditable contractor performance.
- Monitoring and reporting contractor performance against agreed participation targets.
Who should use this standard
- Public and private sector employers procuring construction, engineering and related services
- Procurement officers, bid evaluators and contract managers
- Contractors and joint-venture partners preparing tenders and compliance documentation
- Auditors and compliance officers validating targeted partner engagement
Related standards
ISO 10845 series (Construction procurement): Parts 1–8 (e.g., Part 1 Processes; Part 5 Participation of targeted enterprises; Part 7 Local enterprises and labour). Use ISO 10845-6 together with other parts when developing procurement documentation and evaluation procedures.