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 and supply chains by the end of 2004, rising to 50% by the end of 2007”. Sir John Egan: Accelerating Change – 2002 Strategic Forum for Construction Integration Task Group

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. Strategic Forum for Construction Integration Task Group

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 Strategic Forum for Construction Integration Task Group

Conclusions Egan Definitions are still valid Case Studies High quality construction Increased cost certainty Increased speed of construction Strategic Forum for Construction Integration Task Group

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 Strategic Forum for Construction Integration Task Group

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. Strategic Forum for Construction Integration Task Group

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. Strategic Forum for Construction Integration Task Group

Barriers Industry Culture Industry Capabilities & Capacity Procurement, Contracts & Payments Engagement with the Supply Chain Understanding the balance between Cost, Value & Risk Strategic Forum for Construction Integration Task Group

Overcoming Barriers Four generic headings (pivotal to the removal of barriers to integration): Procurement & Contracts Training & Coaching New Commercial Levers Promotion & Marketing Strategic Forum for Construction Integration Task Group

Action Plan Initial 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. Strategic Forum for Construction Integration Task Group

Action Plan Initial Priorities 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. Strategic Forum for Construction Integration Task Group

Action Plan Initial Priorities 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. Strategic Forum for Construction Integration Task Group

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. Strategic Forum for Construction Integration Task Group

Action Plan Initial Priorities 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 CE Roadshows 2008 to include integration. Strategic Forum for Construction Integration Task Group