Post on 01-Apr-2015
David Mackness
CEO Scape
EMPA – Making a Difference• Issues to resolve
• A solution from empa
• Improving your project deliver
Issues to resolveCosts• Need for savings• Costs increasing• High aspirations
£
time
Need for savings
Increasing costs of construction
Issues to resolve• An awareness that things
could be done better….Banwell Report 1964, Latham 1994,
Rethinking Construction 1998, Accelerating Change 2002 ….
• Waste– Effort– Materials– Energy
Issues to resolve – BUT
• Deep rooted traditional contracting practises
• Notions of value for money
• Dealing with people who are not convinced about alternatives
Components of a solution:
• Improved processes
• Reduced waste
• Enhanced social and economic sustainability
• Added value into projects (reduce costs)
• Increased certainty with managed risk
• Changed behaviour
Traditional tenders
Partnering
Frameworks
Regional procurement- empa
Partnering approach - advantages– Integrated teams
ClientClient ContractorContractor
Traditional arrangements
Project Manager
Project Manager
SpecialistSpecialist
AcousticAcoustic
StructuralStructural
M&EM&E
QSQS
CoWCoW
ArchitectArchitect
H&SH&S
H&SH&S
EnvironmentEnvironment
QAQA
StructuralStructural
PlannerPlanner
M&EM&E
QSQS
Project Manger
Project Manger
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
ClientClient ContractorContractor
Partnered arrangements 1
Project Manager
Project Manager
SpecialistSpecialist
AcousticAcoustic
StructuralStructural
M&EM&E
QSQS
CoWCoW
ArchitectArchitect
H&SH&S
H&SH&S
EnvironmentEnvironment
QAQA
StructuralStructural
PlannerPlanner
M&EM&E
QSQS
Project Manger
Project Manger
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
ClientClient ContractorContractorClient Manager
Client Manager
SpecialistSpecialist
AcousticAcoustic
StructuralStructural
M&EM&E
QSQS
CoWCoW
ArchitectArchitect
H&SH&S H&SH&S
EnvironmentEnvironment
QAQA
StructuralStructural
PlannerPlanner
M&EM&E
QSQS
Project Manger
Project Manger
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
Partnered arrangements 2
ClientClient ContractorContractorClient Manager
Client Manager
SpecialistSpecialist
AcousticAcoustic
StructuralStructural
M&EM&E
QSQS
CoWCoW
ArchitectArchitect
H&SH&S H&SH&S
EnvironmentEnvironment
QAQA
StructuralStructural
PlannerPlanner
M&EM&E
QSQS
Project Manger
Project Manger
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
SuppliersSuppliers
Partnered arrangements 3
Partnering approach - advantages– Integrated teams– Early contractor involvement
FeasibilityFeasibilityConstruction Construction Preconstruction activityPreconstruction activityOJEU stage1OJEU stage1
Traditional 2 stage tenderContractor
ScopingScoping
FeasibilityFeasibility Pre-contract activityPre-contract activity
Construction Construction TenderingTenderingOJEU processOJEU process
ContractorTraditional single stage tender
Partnering approach - advantages– Integrated teams– Early contractor involvement– A new order required
EMPA/Scape
Design team
Contractor
Client
Supply chain
Existing order for smaller projects
Client
Supply chain
Changed order for larger projects
Design team
Contractor
EMPA/Scape
Partnering approach - evidence
CIRIA 1999 – benefit of selecting contractors by value rather than just price gives better– Team working– Programming– Design and specification– Care of the environment– Budgeting and management of risk and value
2007 Nichols Report for Highways Agency
• preconstruction time savings reduced by 30-40%
2005 National Audit Office – • subcontractors have more to offer than simply
providing a price for another’s design
Consultant time line
0
50
100
150
200
250
300
1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121 126 131 136 141 146 151
Weeks
Hour
s per
wee
k
TraditionalPartnered
(Traditional) (Partnered)Pre Post Total Pre Post Total
Consultant 3154 3300 6454 1793 2125 3919Contractor 1036 7791 8827CLASP 267 178 444 109 96 205
Total 12951
Solution enhanced by frameworks - advantages– Earlier earlier contract involvement
FeasibilityFeasibility Precontract activityPrecontract activity
Construction Construction
Tendering subsTendering subs
Strategic Procurement with Partnering approach
Contractor
FeasibilityFeasibilityConstruction Construction Preconstruction activityPreconstruction activityOJEU stage1OJEU stage1
Traditional 2 stage tenderContractor
ScopingScoping
FeasibilityFeasibility Pre-contract activityPre-contract activity
Construction Construction TenderingTenderingOJEU processOJEU process
ContractorTraditional single stage tender
Solution enhanced by frameworks - advantages– Earlier earlier contract involvement– Continuous improvement on all issues– Wider agenda introduced
Solution enhanced by frameworks - evidence
Solution enhanced by EMPA – Scale - Flow of projects– Providing an infrastructure for management– Common approach to the market– Reduced costs of procurement– Reaching the supply chain
Solution enhanced by EMPA • Training – Skills academy
– Developing the client side– Improving contractors
• Economic and social sustainability
These benefits are not a given - Action is required
DenialListening but not responding
Not cooperating
Pre occupied
Regressive
MalcontentAngry / threatening
Talking but not listening
Dictating
Negative
Cynical
EngagedDialogue
Collaborating
Productive
Respect for people
Clients - keep engaged
Making frameworks deliver you• Programmes
– Think strategically– Streams of work
• Projects– Correct process, a revised order
• People– Changed behaviour and culture– Client’s adopt CABE 10 Keys for
success
CABE’s keys to being a successful client1. Provide strong leadership
2. Give enough time at the right time
3. Learn from your own and others successful projects
4. Develop and communicate a clear brief
5. Make a realistic financial commitment from the outset
CABE’s keys to being a successful client6. Adopt integrated processes
7. Find the right people for the job
8. Respond and contribute to the context
9. Commit to sustainability
10. Sign off all key stages
Partnering and frameworks on a regional basis are delivering benefits:– Reduced cost– Increased certainty– Reduced programme times– Improving performance
But - Changes required from:– Client side– Contractors
With Scape’s energy and EMPA’s commitment everyone benefits.