Strategic Forum for Construction Integration Task Group

Strategic Forum for Construction

Integration Task Group

PROFITING FROM INTEGRATION

Accelerating Change Objective

“…that 20% of construction projects (by value)should be undertaken by integrated teams andsupply chains by the end of 2004, rising to 50% by the end of 2007”.

Sir John Egan: Accelerating Change – 2002



• formed in Spring 2007 • independent chairman - Martin Nielsen• hosted by CIC

Organisations represented: • Construction Clients Group (CCG); • Construction Confederation (CC);• Construction Industry Council (CIC); • Construction Products Association (CPA); • Constructing Excellence (CE); and • Specialist Engineering Contractors Group (SEC) and the National Specialist Contractor’s Council (NSCC)• Plus BERR, OGC, ODA.



Purpose of the ITG…

….to investigate and make recommendations concerning:

• The definition of integration;

• The business case for integration,

identifying case studies where appropriate

• How the business case can be

effectively promoted



Conclusions

• Egan Definitions are still valid

Case Studies

• High quality construction• Increased cost certainty• Increased speed of construction



Benefits

The group has been persuaded by the weight of evidence that material benefits have arisen in almost every instance where parties have taken active and purposeful steps to collaborate



The benefits appear in a number of ways:

• lower capital or operating costs;• improved safety;• higher margins; and • adherence to programme

i.e. a reduction in the seemingly inherent inefficiencies that have categorised the UK construction industry in the past.



Survey Results

Integration Trends

Project team integration is generally increasing across all stakeholders, but perhaps starting to plateau. Supply chain integration is improving across the majority of stakeholders.



Barriers

• Industry Culture

• Industry Capabilities & Capacity

• Procurement, Contracts & Payments

• Engagement with the Supply Chain

• Understanding the balance between Cost,

Value & Risk



Overcoming Barriers Four generic headings (pivotal to the removalof barriers to integration): • Procurement & Contracts

• Training & Coaching

• New Commercial Levers • Promotion & Marketing



Action PlanInitial Priorities

Procurement & Contracts

- Promotion of ‘Selecting the Team’ and monitor take up- Produce a plain English guidance note ‘A brief route to procurement excellence’ to include ‘best value’, open book forms, contracts- Up-date the Integration toolkit.




Training & Coaching

- Include a module on collaborative working in construction industry degree courses.- An initial meeting to be arranged via CIC with their University contacts (Built Environment). - Include this as a theme within the September 2008 Centre for Built Environment conference.




New Commercial Levers

- Support and promote ACE campaign strategy to achieve legal reform on proportionate liability and liability caps.- Support and oversee BERR Demonstration Projects.- Develop the business case for all elements of the supply chain.



Action Plan includes

BERR Demonstration Programme BERR will sponsor a new programme of ten demonstration projects from government departments covering:

• Communities and Local Government, • Health, • Children Schools and Families, • Olympic Delivery Authority,• Defence Estates, and • Housing.




Procurement & Marketing

- A marketing action plan to be developed including:•Publication of Profiting from Integration•Publication of the survey results•BERR demonstration project outcomes•Reporting on Egan targets and new targets.

-The development of a long-term collaborative working award within the ‘Building’ Awards from April 2009.

- CE Roadshows 2008 to include integration.



Documents

Strategic Forum for Construction Integration Task Group