Excellence in the New Era for Construction
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Excellence in the new era Don Ward Chief Executive constructingexc
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Transcript of Excellence in the New Era for Construction
Excellence in the new era
Don Ward
Chief Executive
constructingexc
“Constructing Excellence”
A national, regional and local (and international)
platform for industry improvement
to deliver better value
for clients, industry and users
through collaborative working
“A BETTER INDUSTRY TOGETHER”
The CE ‘movement’80 national members, 9 regional Centres35 best practice Clubs, 480 G4C members+ 7 partners in the CE International Alliance
National membersClients at the heart Clients
Acivico (Birmingham CC)
BAE Systems
Battersea Park
Crossrail
East Riding of Yorks BC
EDF Energy (NNB GenCo)
Environment Agency
Fusion 21
Heathrow Airport
Highways Agency
Igloo Regeneration
Imperial University
Kent CC
Lambeth Living
Land Securities
London Underground
Magnox
Northumbrian Water
Nu-Gen
ProCure 21
Rochdale Boroughwide
Royal Mail Group
Sandwell MBC
Consultants
Aecom
Arup
Burges Salmon
Capita
CH2M Hill
Coaction Management
CWC
DBD
FaulknerBrowns
Invennt
LCMB
Lucas Fettes
Pick Everard
Pinsent Masons
Project5
Pw2.0.com
Rider Levett Bucknall
Ryder Architecture
SmartBIM Solutions
Synaps
Temple
Thurlow Associates
Trowers & Hamlin
Turner & Townsend
Visonality
Waterman
Wragge Lawrence Graham
SCAPE
Westfield Group
Worthing Homes
Yorkshire Water
Contractors
Ashleigh (Scotland)
Balfour Beatty
Bowmer & Kirkland
Cara
Costain
Dawnus
Higgins
Interserve
ITC Concepts
Keltbray
Kier Group
Lend Lease
London & London
Mace
McGee
Morrison Galliford Try
Skanska Integrated Projects
Willmott Dixon
Manufacturers & Suppliers
4Projects
Astins
Coubari
FSI Europe
Graphisoft
Knauf Drywall
Management Process Systems
Polypipe Terrain
Tekla
UK Timber Frame Association
Waterloo Air Products
Associates
BRE
British Property Federation
Chartered Institute of Building
CL:AIRE
Glenigan
UK Green Building Council
University of Reading
UK construction improvementcan be charted by a number of key reports
1994.......1998.................2006…....2010…..2013…
Latham…….Egan………………Olympics….’Crisis’…..…’2025’…
1980s...................................................2012+
... and a number of mega-projects
£5.8 bn
£4.3 bn
£9.3 bn
Client satisfaction with the service(and the product) they receive is up
63% 63% 65%71% 74% 77% 79%
75% 77%84% 82% 80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
% 8
/10
or b
ette
r
Client Satisfaction - Service
The industry has improved its safety
13541271 1318
12171097
1172
1023901 946
865 906971 967
0
200
400
600
800
1000
1200
1400
1600
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Safety - Industry Accident Incident Rate (AIR)
Construction output in Great Britain
£0
£5,000
£10,000
£15,000
£20,000
£25,000
£30,000
£35,000
1980 1985 1990 1995 2000 2005 2010
Value of construction output in Great Britain (£M)Current prices, non seasonally adjusted - by sector
BIS May 2014
new repair & maintenance
80
90
100
110
120
1997 1999 2001 2003 2005 2007 2009 2011 2013
Construction output GB(2010 prices index, seasonally adjusted)
Construction output (index linked)
“Six regions hit new house price peak…”BBC News website 16 Sept 2014
‘Economic climate change’meant companies faced a stark choice
Collaborative Working Champions ‘Survival Guide’ , 2009
Never waste a good crisis, 2009
Four ‘blockers’ have slowed the pace of change
Business and economic models
Capability
Delivery model
Industry structure
£2.84 - The “economic multiplier” has made a compelling argument for investment
LEK report for UKCG, 2009/2012 *£1 investment generates nearly £3 of economic impact
Construction is a local industry
56p increased tax take and benefits savings to HMGImports < 8% of total supply
Construction is a domestic industry
Extra £1-£2 end value (eg in better education outcomes)One of the highest such factors
* Construction in the UK economy - The benefits of investment
Plan for Growth (HM Treasury)
Government Construction Strategy (Cabinet Office)
Infrastructure Cost Review (IUK)
Industrial Strategy “Construction 2025” (BIS)
Government policies are aligned
Construction 2025, BIS, 2013
People
Smart
Sustainable
Growth
Leadership
A burning platform for transforming performance
A fit-for-purpose,
streamlined industry
by 2025
Collaborative platform:
coordinated, not fragmented
integrated, not siloed
investing, innovative
enhanced capability
rewarded for the value created
Intelligent industry
Informed intelligent client
Thinks international, long-term, programmes not projects
Demands detailed data about assets and performance
Tests new procurement methods
Builds alliances and an integrated supply chain
Incentivises teams to deliver more efficiently, predictably
Produces outcomes not outputs
Shares the rewards
The value adder
Rewarded for the value created
Collaborative
Innovative
Solution focused
Integrated capability
Strategic business relationship
High levels of investment
Data rich
Lean
The transactional
Commoditised service
Transacted engagement
Lower margins
Clearly defined role
Bought in competition
Informed clients and intelligent industry
Adding value and delivering Construction 2025
People
Smart
Sustainable
Growth
Leadership
CE Vision 2025
Construction Clients’ Group
Regional & National Awards series
Centre for Infrastructure
Development (Manchester
Business School)
G4C
CELL qualifications and training
CCG Health & Safety theme group
CEHE network
BRE Academy
Collaborative Working Champions
BIM theme group
G4C big data theme
Procurement trials for Cabinet Office
Procurement for value
Asset management theme group
CEHE
Sustainability theme group
Funding & Finance theme group
Social value – CE Clubs & Regions
CE International – 8 Alliance partners
Nuclear theme group
SMEs
• CE Regional Network
• local CE Best Practice Clubs
Environmental excellence
End user delight
Client/customer
satisfaction
Sustainable profitability
Attractive industry,
positive profile
Overarching improvement themes 2014+
Sustainability
Housing
Nuclear
BIM
Funding& Finance
Asset management
Generation4 Change
National theme groups
PLUS
Universities (#CEHE)
Procurement
Big data
Collaborative
Working
Champions
Clientshealth &safety
Construction
Clients’
Group
Three overriding principlesof collaborative working
Common vision
and leadership
Processes
and tools
Culture and
behaviours
There are 6 critical success factors for collaborative working
Early involvement
Selection by value
Common processes and tools => BIM
Measurement of performance continuous
Long-term relationships improvement
Aligned commercial arrangements
=> lean
}
Above all, customers want value and we need to understand how clients and users measure it (£, happy residents, CO2, time, social value etc)
Value =
Benefit
___________
Cost
WHOLE
LIFE
Pressures on clients – what can you offer?
Value for money } “more
Economic recession } for
Legislation and regulation } less”
Safety – and health & welfare
Capital costs (capex) vs operation (opex)
Funding and finance
Environmental sustainability – “future proof”
Local employment in the supply chain (SMEs and social value)
Delivering in ‘live’ environments
Pressure to open on time
Growth
Design
£100K
Construction
The value of client outcomes far outweighs the project costs
“£200M”
Business Costs
“£5M”
Operation and
Maintenance
Process Push
User Pull
Outcomes“£250-£2000M”?
“£1M”
Design
Construction
The value of client outcomes far outweighs the project costs
Business Costs
Operation and
Maintenance
Process Push
User Pull
Outcomes
“Better together”
Better ideas and inspiration
Better evidence and intelligence
Better conversations and connections
Better influence and leadership
www.constructingexcellence.org.uk
For further informationwww.constructingexcellence.org.uk
or contact [email protected]
constructingexc
