CIFNI Procurement agenda in UK

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CIFNI Procurement agenda in UK

• David Adamson
• Director
• Smarter Construction

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H
ERE is Edward Bear, coming downstairs now,
bump, bump, bump, on the back of his head, behind
Christopher Robin. It is, as far as he knows,
the only way of coming downstairs, but sometimes
he feels that there really is another way, if
only he could stop bumping for a moment to think
about it. And then he feels that perhaps there
isn't. Anyhow, here he is at the
bottom. Winnie-The-Pooh by A.A. Milne
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The Decade of Reform of the UK Construction
Industry

• Latham
• Egan
• Consolidation

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Trust and MoneyThe Challenges

• Role of the client
• Fragmentation
• Profit Margins
• Cheapest quoted price
• Litigation
• Lack of training and investment

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Trust and Money Proposals

• Project or serial partnership
• Fair payments open statement of payments
• Whole-life value
• Adjudication
• Enhanced role of CITB Sector Skills Council
  including NI
• Client Group liaison at top level with
  supply-side

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The Performance Gap
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Achieving Excellence

• Launched 1999
• 3 year Action Plan
• Focus on 4 Areas
• Management / Culture change
• Measurement
• Standardisation
• Integration

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Achieving Excellence

• Measurement
• Standard Key Performance Indicators
• Post Project Implementation Reviews
• Client Performance Surveys

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Achieving Excellence

• Standardisation
• Key standard practices on
• Procurement decisions on total value for money
• Use of risk and value management
• Output / performance specifications
• Whole life costing
• Robust change control
• IT and standardised document handling

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Achieving Excellence

• Procurement Guides
• 3 Core Guides
• 01 Initiative into Action
• 02 Project Organisation
• 03 Project Procurement Lifecycle

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Achieving Excellence

• Procurement Guides
• Supporting Guides
• 04 Risk Value Management
• 05 The Integrated Project Team
• 06 Procurement Contract Strategies

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Achieving Excellence

• Procurement Guides
• Supporting Guides
• 07 Whole Life Costing
• 08 Improving Performance
• 09 Design Quality

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Achieving Excellence

• Procurement Guides
• Supporting Guides
• 10 Health Safety
• 11 Sustainability

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UK Public Sector Current Issues

• Consultation Public Sector Construction
  Clients Forum
• Mandate for Focus on Whole Life Value
• - Assessing Benefits
• - Assessing whole life costs
• - Achieving Excellence and Common Minimum
  Standards
• Supply Chain Integration
• Fair Payment
• Project Insurance

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Public Sector Construction Clients Forum

• All central and local Government with RDAs and
  design champion

Working Groups
Supply / Demand Management
Whole-life Value
Wider and Deeper Embedding of Best Practice
WG as required in the future

• 2012 Study

• Especially for occasional clients

• Measuring Benefit
• Budgeting Whole-life Costs
• What benefits you get for what you pay

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UK Public Sector Current Issues

• Consultation Public Sector Construction
  Clients Forum
• Mandate for Focus on Whole Life Value
• - Assessing Benefits
• - Assessing whole life costs
• - Achieving Excellence and Common Minimum
  Standards
• Supply Chain Integration
• Fair Payment
• Project Insurance

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UK Public Sector Current Issues

• Consultation Public Sector Construction
  Clients Forum
• Mandate for Focus on Whole Life Value
• - Assessing Benefits
• - Assessing whole life costs
• - Achieving Excellence and Common Minimum
  Standards
• Supply Chain Integration
• Fair Payment
• Project Insurance

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Supply Chain Integration

• Team continuum from brief to occupancy
• Constructor involvement early but not too early
  for new-build
• Keeping team together through Soft Landings team
  involvement through POE

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UK Public Sector Current Issues

• Consultation Public Sector Construction
  Clients Forum
• Mandate for Focus on Whole Life Value
• - Assessing Benefits
• - Assessing whole life costs
• - Achieving Excellence and Common Minimum
  Standards
• Supply Chain Integration
• Fair Payment
• Project Insurance

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Fair Payment

• Transparent Payments
• Project Bank Accounts
• e.g. Olympic Statement of Procurement Principles

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UK Public Sector Current Issues

• Consultation Public Sector Construction
  Clients Forum
• Mandate for Focus on Whole Life Value
• - Assessing Benefits
• - Assessing whole life costs
• - Achieving Excellence and Common Minimum
  Standards
• Supply Chain Integration
• Fair Payment
• Project Insurance

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Project Insurance

• Increases trust and pro-active effort
• A challenge in UK is the transition from
  fragmented Professional Indemnity Insurance, and
  other insurances
• Success in other countries

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Final thoughts

• Estate management is not easy when it goes well
  the service can be invisible when things go
  wrong memories can be very long
• The Estates Director is only a temporary
  custodian who can take a personal pride of what
  he hands over to his successor
• Will he or she be remembered in 50 years time?
• Hopefully the physical legacy of their tenure
  will be.

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CIFNI Procurement agenda in UK

• David Adamson
• Director
• Smarter Construction