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Rethinking Construction 10 Years on- what has changed

Paul Reader - Director

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• 1998 Launch of ‘Rethinking construction’

• 2000 launch of Housing Forum

• 2000 launch of Partnering contract

A new dawn

‘Construction industry underperforming, both in terms of its own needs and those of its clients’

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• ‘Rosette’ Partnering

• ‘Lawyer’ Partnering

• ‘Carrot’ Partnering

• ‘Any old project’ Partnering

• ‘Your on your own’ Partnering

• ‘You will save money’ Partnering

• ‘Innovation’ Partnering

• ‘Big Bang’ partnering

2005 - Forms of Partnering2005 - Forms of Partnering

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2006 – Partnering in responsive and planned repairs

‘Organisations have all approached partnering differently therefore understanding of what partnering is about is equally variable’

‘Partnering is not right for everyone and organisations are not always able to quantify the benefits’

‘Partnering in responsive and planned repairs has the potential to deliver efficiency gains and to date these have not always been quantified’

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2008 – Partnering and open book - till dispute do us part

‘So why does partnering fail?

• Lack of effective client input

• Lack of effective leadership

• Failure to define objectives

• Failure to set baseline targets

• Failure to control cost’

‘Open book or open season?’

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2008 – Partnering and open book - till dispute do us part

Overall conclusions

‘There are examples of where partnering is working and working well’

‘Failure is not all the contractors fault! Client-side capacity and competency needs to be developed in order to manage the relationship’

‘Continuous improvement is often not developed and procurement objectives are often lost’

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Quality = value?

• The Interview

• The Presentation

• The scenario tests

• The Site visit

• The Job tests

• The written word / quality bid

• The Resident evaluation / scoring

Quality Evaluation

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Cost – what are you evaluating?

Schedule• Pre priced• Un-priced

Open book• Just overheads• How much is a screw?• How much is a carpenter?• Cost plus

The all inclusive • Lump sum • Cost per property

The Price

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How do you find the right partner?

Procurement to reflect objectives

• Improve PQQ to sort-list potential partners

• Cost model that everyone understands and is practical to use

• Cost model that can deliver your objectives

• Quality method statement that tests contractors ability to achieve objectives

• Don’t ignore TUPE both in cost or quality submission

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• Frameworks

• Procurement Clubs

• Construction line

Things that have changed

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Procurement process

Fluffy contracts

Poorly thought out cost models

Many leaders or no leader

Partnering at the top only

Instant culture change

Performance measurement

Automatic partnering efficiency

What does not work?

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What works?

• Collaborative culture

• Long term contracts

• Open book – it can work!

• Review and act if aims are not being achieved

• Efficiency gains

• Performance management

• Integration of supply chain

• Customer focus / Resident involvement

• Employment and training

• Leadership to drive process

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Besides from partnering?

What else did Egan say 10 years ago?

• Standardisation

• Off site manufacture

• Right first time and defect free

• Measurement of the performance of completed components

• Improving site conditions

• Lean thinking

Targets

• Cost

• Time

• Predictability

• Defects

• Accidents

• Productivity

• Turnover/ Profits

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Has the report had a positive effect?

Partnering is not an elixir

But it is also not the problem

It is how it is used!

Conclusion

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The new economic world may force the whole industry back 10 years

As it has been proved many times in the past 10 years as soon as the going gets tough its easy revert to a blame culture

Will we still be partnering in 10 years time?

Conclusion

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Thank you