Demonstrating Excellence Report - Constructing Excellence

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Demonstrating ExcellenceAn Evolution of the Programme of DemonstrationsThe Rethinking Construction demonstrations programme was originally set up in 1998 (initially as an M4I, theMovement for Innovation programme, then followed by The Housing Forum in 1999 and LGTF, the LocalGovernment Task Force in 2000), following a call in the ‘Rethinking Construction‘ report for demonstrationprojects representing £500 million in construction costs to lead a movement for radical change in theconstruction industry.By March 2004, 414 projects representing a total construction value of eight billion pounds had been part ofthis programme across the whole of the UK and there was a total of 151 active projects. All demonstrations arerequired to use the industry headline Key Performance Indicators (KPIs) in order to evaluate their progressagainst the performance of the industry as a whole.This report provides a synopsis of the evolution of the demonstrations programme. It highlights the successes todate of demonstrating the future for the rest of the industry and, through the eyes of the industry leaders, itprovides a glimpse of the future direction for this programme. (A number of progress reports on thedemonstrations programme have been published during the five year period, see page 24.)2004 KPI ResultsDemonstrations compared to the industryDistribution of Demonstrations by Region, March 2004NB Over 100 is a positive scoreNorthern Ireland 6%Scotland 4%London 15%350300Demonstrations 2004 Industry 2004North West 10%North East 5%South East 14%250200150100Yorkshire &Humber 8%East Midlands 4%West Midlands 8%East of England 10%South West 12%Wales 4%500Client Satisfaction – ProductClient Satisfaction – ServiceDefectsSafety Average AIRPredictability Cost – DesignPredictability Cost – ConstructionPredictability Time – DesignPredictability Time – ConstructionProfitabilityProductivityConstruction CostConstruction TimeEnvironmental Impact – ProcessEnvironmental Impact – ProductStaff TurnoverEmployee SatisfactionQualifications & SkillsDistribution of Demonstrations by Sector, March 2004Non Housing47%Non Housing/Local Govt 22%Housing 25%Housing/Local Govt 6%2 Constructing Excellence – Demonstrating Excellence – An Evolution of the Programme of Demonstrations
There is nothing in the world that some man cannotmake a little worse and sell a little cheaper, and hewho considers price only is that man‘s lawful prey.John Ruskin, 1819-1900IntroductionThrough the programme of demonstrations,Constructing Excellence is proving that constructionprojects procured and carried out through integratedtechniques achieve:Better qualityFewer accidentsIncreased productivityA staff turnover that is three times better thanthe industryA more qualified and highly satisfied work forceCompletion in less timethan the rest of the industry which is stilldominated by those using traditional techniques.In spite of this evidence many construction clientscontinue to favour the traditional method ofsegregated teams. This is an inefficient way of working.Although profitability on demonstrations hasremained consistent, there still remains a challenge tothe industry to turn competitive advantage intoimproved profitability. However it is clear from thefigures that many organisations are investing in thelong-term and also many are involved in the earlystages of frame-work agreements, which requires upfrontinvestment.Construction, by its very nature is reliant uponteamwork – many different talents and skillscoming together to provide a service.Traditionally these teams of experts have operatedin segregated silos and have only receivedessential project information shortly before theyare required at the ‘coal face‘.Teamwork requires every member to understandtheir objective and where they fit into the overallstrategy.Greater collaboration also encourages innovation.The evolution of the demonstration programme hasbeen one of continually increased and developedteam integration further down the supply chain andover longer periods of time.Traditional Construction ProcurementTraditional construction procurement is the process bywhich the majority of projects have been delivered inthe past. The process involves a client approaching adesigner to draw up project plans. These plans arethen passed to individual consultants, contractors,suppliers and sub-contractors to gain cost separateestimates. The lowest estimates are then usuallyaccepted. This results in the following:Minimal integration of the project team;activities are segregated and this makes theprocess disjointed.Solely price-based tendering establishes anadversarial relationship with both client andcontractor defending their respective positions,which leads to a neglect of focus on the quality ofthe end product.In turn, this poor communication between theteam and defensive protection of respectivepositions can lead to increased costs and time,and as a result very low client expectations.In today‘s construction environment the client who isadvised to accept the lowest price tender is beinggiven poor guidance, and often pays more in the end.Innovation ■ Best Practice ■ Productivity 3
Page 1 and 2: Demonstrating ExcellenceAn Evolutio
Page 3: ContentsDemonstrating ExcellenceAn
Page 7 and 8: Project Partnering - A more integra
Page 9 and 10: Waterside Foot and Cycle Bridge, Co
Page 11 and 12: Strategic Partnering AlliancesStrat
Page 13 and 14: Mill House, Surrey PlaceJune 2002 -
Page 15 and 16: ConclusionsOrganisations involved i
Page 17 and 18: Accelerating Change commits the ind
Page 19 and 20: The Demonstrations programme has no
Page 21 and 22: Appendix 1: Key Events 1994 - 2004
Page 23 and 24: across the industry and gives emplo
Page 25 and 26: Appendix 2: Corresponding ToolkitsE
Page 27 and 28: Innovation ■ Best Practice ■ Pr

Demonstrating Excellence Report - Constructing Excellence

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