PhD Final Thesis April 2013.pdf - Anglia Ruskin Research Online

Thesis Keith Gale 2013accepting the lowest price due to the potential for suppliers to ‘underbid’ and theneither cut corners in terms of specification, or try and maximise income by claimingadditional monies. This specific concern was highlighted exactly fifty years later byLatham (1994, p2). Latham stated:‘Many clients still do not understand that fiercely competitive tenders and acceptingthe lowest bid do not provide value for money in construction. Lowest priced tendersmay well contain no margin of profit for the contractor, whose commercial responseis then to try to claw back the margins through variations, claims…..’A second theme which arises is through the numerous and varied use of differentcontrols and information during the construction phase of a project. It isacknowledged that projects, by their nature, are unique in terms of location, design,form and function. Although variables will always exist to an extent, the reportsrecognised that inefficiencies were introduced through the management process. Thissecond theme proposed that standardisation of components, management controlsand engagement of suppliers and sub-contractors using standard forms of contractwill drive out wastage and uncertainty. The proposal of standardisation would applyto all elements of a project – and to all parties - clients, suppliers and designers. Inthe Simon Report (1944, p 21) it was specifically recognised that:“it has become impossible for any single Architect or Builder to have specialistknowledge and experience to deal effectively with all the new processes…… as aresult specialist firms are operating on a substantial scale engaged under differingterms and conditions and to differing standards.”A third area of commonality and potential efficiency contained in the reportsrecognised benefits accrued from a reliable and stable continuous workload. A cycleof ‘boom and bust’ does not encourage efficient and effective long term planning ofresources. Training programmes, procurement systems and standard legaldocumentation require introduction and development over long time scales.Fluctuating economic conditions make continuous long term investment in trainingand development extremely difficult for suppliers and clients alike.15