Constructing Excellence South West The Dawn of a New Era

Swindon & Wiltshire Thursday 24th April 2014

Andrew Carpenter

Chief Executive

Constructing Excellence South West

• Introduction to Constructing Excellence

• Collaborative Working

• The future

• The various ‘parts’ of CE

• Demonstration Projects

• CESW

• Q & A

Agenda

“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”

National members Clients

BAE Systems

BBC

Birmingham City Council

Crossrail

East Riding of Yorks Council

EDF Energy (NNB GenCo)

Environment Agency

Heathrow Airport

Highways Agency

Igloo Regeneration

Lambeth Living

London Underground

Magnox

Manchester City Council

Marks & Spencer

Nationwide Building Society

Northumbrian Water

ProCure 21

Rochdale Boroughwide

Royal Mail Group

Sandwell MBC

SCAPE

Westfield Group

Worthing Homes

Yorkshire Water

Consultants

Arup

Capita Symonds

CH2M Hill

Coaction Management

CWC

Davis Langdon

DBD Limited

Eversheds

FaulknerBrowns

Invennt

LCMB

Mott MacDonald

Pick Everard

Rider Levett Bucknall

Room4 Consulting

Ryder Architecture

Scott Brownrigg

SmartBIM Solutions

Synaps

Thurlow Associates

Trowers & Hamlin

Turner & Townsend

Waterman

Wragge

Contractors

Balfour Beatty

Bovis Lend Lease

Bowmer & Kirkland

Cara

Dawnus

Graham

Higgins

Interserve

ISG Cathedral Contracts

ITC Concepts

Keltbray

Kier Group

Mace

McGee

Morrison Galliford Try

Opco

Renovate to Perfection

Shepherd

Skanska Integrated Projects

Stepnell

Thomas Vale Construction

Wates Construction

Willmott Dixon

Manufacturers & Suppliers

4Projects

Astins

Coubari

Graphisoft

Knauf Drywall

Management Process Systems

Polypipe Terrain

Tekla

Structural Timber Association

Waterloo Air Products

Associates

British Property Federation

Chartered Institute of Building

UK Green Building Council

University of Reading

80 national members, 9 regional centres 35 best practice clubs, 380 G4C members 5 international partners

UK construction improvement can be charted by a number of key reports

1994.......1998.......2006…...2009…..2013 Latham Egan Olympics “Crisis” “2025”

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)

Three overriding principles of 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, continuous

• Measurement of performance } improvement

• Long-term relationships } => lean

• Aligned commercial arrangements

Piping cost = £155,000

Equivalent length = 700m

Piping cost = £116,000

Equivalent length = 494m

Early involvement - design expertise

‘Economic climate change’ meant companies face a stark choice

Collaborative Working Champions ‘Survival Guide’ 2009

The business case for lowest price tendering? 2011

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

CE VISION OF

EXCELLENCE

The greatest opportunity of a generation

The Government has announced

an increase in government capital

spending plans by £3bn a year,

from 2015, which means an

additional £18bn of investment

over the next parliament.

The global construction market

forecast to grow by over 70 percent

by 2025.

British companies are well-placed to

take advantage of international

opportunities.

Export opportunity

A burning platform for radical change

Willingness to pay and standard of living

No open cheque book

Global funding opportunities

Transparent funding models

An industry that can be trusted to deliver

New market entrants

An industry characterised by:

year on year efficiency

better use of existing assets

increased predictability

measured performance

enhanced data and knowledge

total cost investment decisions

focus on outcomes/benefits

The industry needs to transform its performance

Transforming performance

A fit-for-purpose,

streamlined industry

by 2025

CE vision of the future

Informed clients need

an intelligent sector

with high capability in

2025 –where will you play?

CE role – enabling the change

Constructing Excellence’s role:

collaborative platform – setting the standard

benchmarking industry performance

establishing an industry alliance

supporting clients and suppliers in building capability

brokering and facilitating investment programmes

working with Government and academia to align industry need with policy, regulation and legislation

Core activities

Action research & innovation

KPIs & benchmarking

Demonstrations

Networks

Guidance & training

Leadership & influence

Evidence

Delivery

Six core activities to support continuous improvement

Generation 4 Change

Funding & Finance

BIM(M)

Sustainability Housing

Nuclear

Asset management

National theme groups

Collaborative

Working

Champions

Clients health & safety

Environmental excellence

End user delight

Client/ customer

satisfaction

Sustainable profitability

Attractive industry,

positive profile

Outcome themes

Above all, customers want value and we need to understand how clients and users measure it (£, happy residents, CO2 etc.)

Value =

Benefit

___________

Cost

WHOLE

LIFE

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”

St Francis of Assisi Academy, Liverpool, is a good example of value in practice

“The excellent GCSE results and the fact that our students finished top of the national league tables for progress can rightly be attributed to the impact the building had on their studies”

Green values help academy top new league table “A school which offers its pupils a green-focused education has won

plaudits for having the best teaching standards in the country….”

The Independent, 11 Jan 2007

Demonstrations

• Implementing the principles of Rethinking Construction

• 525 Projects since 1998, incl. 203 housing sector

• Value over £14bn • 430 completed, c100 live, overseen regionally • Involvement of over 1300 organisations UK-wide • 176 case histories • 63 associated reports and publications

• Smaller national “Innovation in Practice” programme with academic partners

Silk Stream Flood Alleviation

Scheme

Demonstration projects have out-performed the rest of the industry

7700

0

50

100

150

200

250

300

350

2006 pan-industry performance = 100

CE 2006 Industry 2006 = 100

Demonstration projects have out-performed the rest of the industry

7700

0

50

100

150

200

250

300

350

2006 pan-industry performance = 100

CE 2006 Industry 2006 = 100

• All LEP regions

• Cornwall & Isles of Scilly

• Heart of the South West (Somerset & Devon)

• Dorset

• Wiltshire

• Gloucestershire

• Bristol

• Channel Islands (to follow)

• Across the supply chain

• Large client to SME supply chain member

CESW Structure

• Chaired by Robert Knight, igloo regeneration (Wiltshire)

• Vice Chairman David Renwick, Advantage South West (Cornwall)

• Andrew Goodenough, Bristol Airport (Bristol)

• Damian Leydon, EDF Energy (Somerset)

• Neil Calderwood, McCarthy & Stone (Dorset)

• John Boughton, Willmott Dixon (Bristol)

• Neil Stevens, Frame UK (Cornwall)

• Bill Button, NVB Architects (Somerset)

• Karsan Vaghani, University of Bristol (Bristol)

• David Snell, Kier Construction (Bristol)

• Rob Benson, Mi-Space (Devon)

• Trish Johnson, ICE (Bristol)

The Board

Direction

• National Members

• Club Representatives

• LEPs

• Local Authorities

• Universities

• Stakeholders (HSE/CITB/CIOB/CIC etc.)

• Professional Bodies/Associations (RIBA/RICS/ICE etc.)

• Professions (Insurance/Legal/Accountancy/Banks/Mortgage Lenders)

• Supply Chain

Steering Group

Detail

• Andrew Carpenter Director

• Admin support (CE Wales)

• Web Site/Event Support/Social Media (CE Midlands)

• Andrew Jarvis Mentor

• Martyn Jones Mentor

• CE Clubs

• CE National

• CERN

• G4C

• CCG

Personnel

Delivery

• 27th January 2014 Board Meeting – University of Bristol

• 27th February 2014 Steering Group Meeting – Burgess Salmon, Bristol

• 27th March 2014 CCG Meeting– EDF-Energy, Bridgwater

• 24th April 2014 Regional Conference – Trowbridge, Wiltshire

• 29th May 2014 Regional Conference – Poole, Dorset

• 11th June 2014 Regional Conference – Exeter, Devon (& Somerset)

• 13th June 2014 South West Built Environment Awards Dinner in conjunction with CIOB – Marriott City Centre Hotel, Bristol

Programme

• 3rd July 2014 Board Meeting – Devon

• 3rd September Steering Group Meeting - Devon

• 24th September 2014 Regional Conference – Cornwall

• 14th October 2014 CCG Meeting - Devon

• 21st October 2014 Regional Conference – Gloucestershire

• 28th October 2014 Proposed Airbus Site Visit - Bristol

• 27th November 2014 AGM – Somerset CCC, Taunton

Proposed Programme

• Embedding the structure of the Board, Steering Group and programme of events

• Revitalising the web site www.constructingexcellencesw.org.uk

• Enlisting administration/secretarial support

• Financing the programme/business model/regional membership fees Inc. Students, HE/FE, Associations, Bodies etc.

• Links with CE National/CERN/existing CE Clubs (Bristol, Gloucester, Plymouth, Devon & Exeter and Swindon & Wiltshire) & Research Establishments

• Government Construction Strategy 2025/Skills Shortages/BIM

• Re-establishing CE Clubs in Cornwall and Dorset.

Priorities

• Setting up of CESW Academy

• CCG South West division/G4C involvement

• A new club in Somerset based at Hinckley Point?

• Built Environment Awards Dinner to move away from Bristol (CIOB & suitable venue permitting)

• Setting up of CE certification to identify excellence in:

• Customer service

• Supply Chain integration

• Staff satisfaction

• Financial security including Fair Payments

• Inward investment for the SW (e.g. MIPIM)

Proposed Priorities (cont.)

Benefits of becoming a member of CESW

Networking

Learn and share best practice principles

Knowledge transfer

Enhance profitability/productivity

Improve understanding

Access to tools

Involvement with Forums (CCGSW, G4CSW, Procurement & BIM4Housing)

Increase business opportunities

Discounted access to conferences, seminars and workshops

Raise profile in the region

Influence the change agenda/industry/Government/LEPs

• Supply Side:

• Contractors & Supplier:

• 1001+ employees £2,072

• 251-1000 employees £1,448

• 51-250 employees £724

• 11-50 employees £414

• 1-10 employees £207

• Consultants

• 501+ employees £2,072

• 101-500 employees £1,448

• 26-100 employees £724

• 11-25 employees £414

• 1-10 employees £207

Fees (20% of national membership)

• Clients

• £501m+ Industry spend £2,072

• £251m - £500m Industry spend £1,448

• £101m - £250m Industry spend £724

• £51m - £100m Industry spend £414

• Up to £50m Industry spend £207

• National Members of Constructing Excellence

• Part of your package and paid for by the centre

• Club Members of Constructing Excellence

• One club membership fee to be subtracted from the regional figure (e.g. Bristol Club Client up to £50m industry spend £207 - £150 = £57)

Fees (20% of national membership)

“Better together”

Better ideas and inspiration

Better evidence and intelligence

Better conversations and connections

Better influence and leadership

For further information www.constructingexcellence.org.uk

or contact andrew.carpenter@constructingexcellencesw.org.uk

constructingexc

Carpe Diem: Andrew Carpenter, Director CESW

2014

Thought for the day:

The opportunity of a lifetime has to

be grasped in the lifetime of the

opportunity

Rethinking Construction