Week 1 lecture- The industry

Week 1 lecture- The industry

1. Importance of UK construction

   • 300,000 firms employing over 2.1 million people
   • £110 b/annum to UK (40% to public sector)
   • Traditional focus of time, cost, quality is changing.
   • Intelligent clients
   • Contributes 8.8% gross value added

2. Major influences on UK Construction

   • Latham (1994)- Constructing the team
   • Egan (1998)- Re-thinking construction
   • Strategic forum for construction (2002)-Accelerating change
   • Constructing excellence (2009)- Never waste a good crisis
     • Business and economic models (determine pace of change)
       • Lack of cohesive industry vision
       • Construction seen as a commodity purchase
       • No incentives to change
       • Few business drivers to improve
       • Construction 'does not matter'
       • Industry culture is driven by economic forcs
     • Capability( to attract, retain and develop more of the right people)
       • Lack of purpose
       • Lack of visible leadership
       • Failure to attract new talent to the industry
       • Failure to develop talent within the industry
       • Narrow degree courses prevent hollistic thinking
     • Delivery model (lack of integration in delivery process impeedes continuous improvement)
       • Contractors would rather 'push' risk down supply chain than 'pull' opportunities up
       • Few clients demand a best value solution
       • Lack of integrated process results in sub-optimal solutions
     • Big themes for - Industry leaders/ Government/ Clients
       • Procure value
       • Intergrate education and training
       • Develop a new generation of leaders
       • Adopt new business models that promote change
       • Understand built environment
       • Focus much more on the environment
       • Suppliers take the load
       • Find a cohesive voice for the industry
     • Industry structure (diverse/fragmented structure of industry creates competing agendas
       • Too many industry blockers
       • Lack of joined up thinking by government and other key stakeholders
       • Lack of single coherant voice for industry
   • Cabinet Office (2011)- Government construction strategy
   • HM Government (2013)- Construction 2025
     • Targets
       • 50% reduction in overall time, from inception to complation, for new build and refurbs
       • 50% reduction in greenhouse gases emissions in built environment
       • 50% reduction in trade gap between total exports and total imports for construction products
       • 33% initial reduction in construction and the whole life cost of built assets
     • Vision
       • People- Known for talented/ diverse workforce
       • Smart- Efficient and technologically advanced
       • Sustainable- Industry leading the world in low carbon and green construction exports
       • Growth- Drives growth across the entire economy
       • Leadership- Industry with clear leadership from construction leadership council
     • Different
       • True Partnerships between government and industry
       • Action plan to get there

3. Government strategy themes

   • Co-ordination/ Leadership
   • Forward programming and date
   • Governance and client skills
   • Challenge
   • Value for money, standards and benchmarking
   • Efficiency and elimination of waste
   • BIM
   • Allignment of design/construction and operation and asset management
   • Supplier relationship management
   • Competitiveness and reducing duplication
   • New procurement models
   • Client relationship management
   • Implementation of existing and emerging government policy

4. Relevant Construction bodies

   • Clients: Construction clients group
   • Construction industry council (CIC)
   • UK contractors group
   • National specialist contractors council/ Specialist Engineering and contractors group
   • Construction products assosiation
   • UCATT (union of construction, allied trades and technicians)
   • Constructing Excellence
   • Constrution industry research and information assosiation (CIRIA)
   • Building research establishment (BRE)
   • Commissions for architecture and the built environment (CABE)
   • Professional institutes: ICE/ RICS/ CIOB/ RIBA/ etc
   • Trade institutions: Concrete, Steel, Timber etc)