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TRANSCRIPT
Constructing Excellence South West The Dawn of a New Era
Swindon & Wiltshire Thursday 24th April 2014
Andrew Carpenter
Chief Executive
Constructing Excellence South West
• Introduction to Constructing Excellence
• Collaborative Working
• The future
• The various ‘parts’ of CE
• Demonstration Projects
• CESW
• Q & A
Agenda
“Constructing Excellence”
A national, regional and local (and international)
platform for industry improvement
to deliver better value
for clients, industry and users
through collaborative working
“A BETTER INDUSTRY TOGETHER”
National members Clients
BAE Systems
BBC
Birmingham City Council
Crossrail
East Riding of Yorks Council
EDF Energy (NNB GenCo)
Environment Agency
Heathrow Airport
Highways Agency
Igloo Regeneration
Lambeth Living
London Underground
Magnox
Manchester City Council
Marks & Spencer
Nationwide Building Society
Northumbrian Water
ProCure 21
Rochdale Boroughwide
Royal Mail Group
Sandwell MBC
SCAPE
Westfield Group
Worthing Homes
Yorkshire Water
Consultants
Arup
Capita Symonds
CH2M Hill
Coaction Management
CWC
Davis Langdon
DBD Limited
Eversheds
FaulknerBrowns
Invennt
LCMB
Mott MacDonald
Pick Everard
Rider Levett Bucknall
Room4 Consulting
Ryder Architecture
Scott Brownrigg
SmartBIM Solutions
Synaps
Thurlow Associates
Trowers & Hamlin
Turner & Townsend
Waterman
Wragge
Contractors
Balfour Beatty
Bovis Lend Lease
Bowmer & Kirkland
Cara
Dawnus
Graham
Higgins
Interserve
ISG Cathedral Contracts
ITC Concepts
Keltbray
Kier Group
Mace
McGee
Morrison Galliford Try
Opco
Renovate to Perfection
Shepherd
Skanska Integrated Projects
Stepnell
Thomas Vale Construction
Wates Construction
Willmott Dixon
Manufacturers & Suppliers
4Projects
Astins
Coubari
Graphisoft
Knauf Drywall
Management Process Systems
Polypipe Terrain
Tekla
Structural Timber Association
Waterloo Air Products
Associates
British Property Federation
Chartered Institute of Building
UK Green Building Council
University of Reading
80 national members, 9 regional centres 35 best practice clubs, 380 G4C members 5 international partners
UK construction improvement can be charted by a number of key reports
1994.......1998.......2006…...2009…..2013 Latham Egan Olympics “Crisis” “2025”
Client satisfaction with the service (and the product) they receive is up
63% 63% 65%71% 74% 77% 79%
75% 77%84% 82% 80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
% 8
/10
or b
ette
r
Client Satisfaction - Service
The industry has improved its safety
13541271 1318
12171097
1172
1023901 946
865 906971 967
0
200
400
600
800
1000
1200
1400
1600
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Safety - Industry Accident Incident Rate (AIR)
Three overriding principles of collaborative working
Common vision
and leadership
Processes
and tools
Culture and
behaviours
There are 6 critical success factors for collaborative working
• Early involvement
• Selection by value
• Common processes and tools } BIM, continuous
• Measurement of performance } improvement
• Long-term relationships } => lean
• Aligned commercial arrangements
Piping cost = £155,000
Equivalent length = 700m
Piping cost = £116,000
Equivalent length = 494m
Early involvement - design expertise
‘Economic climate change’ meant companies face a stark choice
Collaborative Working Champions ‘Survival Guide’ 2009
The business case for lowest price tendering? 2011
Plan for Growth (HM Treasury)
Government Construction Strategy (Cabinet Office)
Infrastructure Cost Review (IUK)
Industrial Strategy “Construction 2025” (BIS)
Government policies are aligned
Construction 2025, BIS, 2013
People
Smart
Sustainable
Growth
Leadership
CE VISION OF
EXCELLENCE
The greatest opportunity of a generation
The Government has announced
an increase in government capital
spending plans by £3bn a year,
from 2015, which means an
additional £18bn of investment
over the next parliament.
The global construction market
forecast to grow by over 70 percent
by 2025.
British companies are well-placed to
take advantage of international
opportunities.
Export opportunity
A burning platform for radical change
Willingness to pay and standard of living
No open cheque book
Global funding opportunities
Transparent funding models
An industry that can be trusted to deliver
New market entrants
An industry characterised by:
year on year efficiency
better use of existing assets
increased predictability
measured performance
enhanced data and knowledge
total cost investment decisions
focus on outcomes/benefits
The industry needs to transform its performance
Transforming performance
A fit-for-purpose,
streamlined industry
by 2025
CE vision of the future
Informed clients need
an intelligent sector
with high capability in
2025 –where will you play?
CE role – enabling the change
Constructing Excellence’s role:
collaborative platform – setting the standard
benchmarking industry performance
establishing an industry alliance
supporting clients and suppliers in building capability
brokering and facilitating investment programmes
working with Government and academia to align industry need with policy, regulation and legislation
Core activities
Action research & innovation
KPIs & benchmarking
Demonstrations
Networks
Guidance & training
Leadership & influence
Evidence
Delivery
Six core activities to support continuous improvement
Generation 4 Change
Funding & Finance
BIM(M)
Sustainability Housing
Nuclear
Asset management
National theme groups
Collaborative
Working
Champions
Clients health & safety
Environmental excellence
End user delight
Client/ customer
satisfaction
Sustainable profitability
Attractive industry,
positive profile
Outcome themes
Above all, customers want value and we need to understand how clients and users measure it (£, happy residents, CO2 etc.)
Value =
Benefit
___________
Cost
WHOLE
LIFE
Design
£100K
Construction
The value of client outcomes far outweighs the project costs
“£200M”
Business Costs
“£5M”
Operation and
Maintenance
Process Push
User Pull
Outcomes “£250-£2000M”?
“£1M”
St Francis of Assisi Academy, Liverpool, is a good example of value in practice
“The excellent GCSE results and the fact that our students finished top of the national league tables for progress can rightly be attributed to the impact the building had on their studies”
Green values help academy top new league table “A school which offers its pupils a green-focused education has won
plaudits for having the best teaching standards in the country….”
The Independent, 11 Jan 2007
Demonstrations
• Implementing the principles of Rethinking Construction
• 525 Projects since 1998, incl. 203 housing sector
• Value over £14bn • 430 completed, c100 live, overseen regionally • Involvement of over 1300 organisations UK-wide • 176 case histories • 63 associated reports and publications
• Smaller national “Innovation in Practice” programme with academic partners
Silk Stream Flood Alleviation
Scheme
Demonstration projects have out-performed the rest of the industry
7700
0
50
100
150
200
250
300
350
2006 pan-industry performance = 100
CE 2006 Industry 2006 = 100
Demonstration projects have out-performed the rest of the industry
7700
0
50
100
150
200
250
300
350
2006 pan-industry performance = 100
CE 2006 Industry 2006 = 100
• All LEP regions
• Cornwall & Isles of Scilly
• Heart of the South West (Somerset & Devon)
• Dorset
• Wiltshire
• Gloucestershire
• Bristol
• Channel Islands (to follow)
• Across the supply chain
• Large client to SME supply chain member
CESW Structure
• Chaired by Robert Knight, igloo regeneration (Wiltshire)
• Vice Chairman David Renwick, Advantage South West (Cornwall)
• Andrew Goodenough, Bristol Airport (Bristol)
• Damian Leydon, EDF Energy (Somerset)
• Neil Calderwood, McCarthy & Stone (Dorset)
• John Boughton, Willmott Dixon (Bristol)
• Neil Stevens, Frame UK (Cornwall)
• Bill Button, NVB Architects (Somerset)
• Karsan Vaghani, University of Bristol (Bristol)
• David Snell, Kier Construction (Bristol)
• Rob Benson, Mi-Space (Devon)
• Trish Johnson, ICE (Bristol)
The Board
Direction
• National Members
• Club Representatives
• LEPs
• Local Authorities
• Universities
• Stakeholders (HSE/CITB/CIOB/CIC etc.)
• Professional Bodies/Associations (RIBA/RICS/ICE etc.)
• Professions (Insurance/Legal/Accountancy/Banks/Mortgage Lenders)
• Supply Chain
Steering Group
Detail
• Andrew Carpenter Director
• Admin support (CE Wales)
• Web Site/Event Support/Social Media (CE Midlands)
• Andrew Jarvis Mentor
• Martyn Jones Mentor
• CE Clubs
• CE National
• CERN
• G4C
• CCG
Personnel
Delivery
• 27th January 2014 Board Meeting – University of Bristol
• 27th February 2014 Steering Group Meeting – Burgess Salmon, Bristol
• 27th March 2014 CCG Meeting– EDF-Energy, Bridgwater
• 24th April 2014 Regional Conference – Trowbridge, Wiltshire
• 29th May 2014 Regional Conference – Poole, Dorset
• 11th June 2014 Regional Conference – Exeter, Devon (& Somerset)
• 13th June 2014 South West Built Environment Awards Dinner in conjunction with CIOB – Marriott City Centre Hotel, Bristol
Programme
• 3rd July 2014 Board Meeting – Devon
• 3rd September Steering Group Meeting - Devon
• 24th September 2014 Regional Conference – Cornwall
• 14th October 2014 CCG Meeting - Devon
• 21st October 2014 Regional Conference – Gloucestershire
• 28th October 2014 Proposed Airbus Site Visit - Bristol
• 27th November 2014 AGM – Somerset CCC, Taunton
Proposed Programme
• Embedding the structure of the Board, Steering Group and programme of events
• Revitalising the web site www.constructingexcellencesw.org.uk
• Enlisting administration/secretarial support
• Financing the programme/business model/regional membership fees Inc. Students, HE/FE, Associations, Bodies etc.
• Links with CE National/CERN/existing CE Clubs (Bristol, Gloucester, Plymouth, Devon & Exeter and Swindon & Wiltshire) & Research Establishments
• Government Construction Strategy 2025/Skills Shortages/BIM
• Re-establishing CE Clubs in Cornwall and Dorset.
Priorities
• Setting up of CESW Academy
• CCG South West division/G4C involvement
• A new club in Somerset based at Hinckley Point?
• Built Environment Awards Dinner to move away from Bristol (CIOB & suitable venue permitting)
• Setting up of CE certification to identify excellence in:
• Customer service
• Supply Chain integration
• Staff satisfaction
• Financial security including Fair Payments
• Inward investment for the SW (e.g. MIPIM)
Proposed Priorities (cont.)
Benefits of becoming a member of CESW
Networking
Learn and share best practice principles
Knowledge transfer
Enhance profitability/productivity
Improve understanding
Access to tools
Involvement with Forums (CCGSW, G4CSW, Procurement & BIM4Housing)
Increase business opportunities
Discounted access to conferences, seminars and workshops
Raise profile in the region
Influence the change agenda/industry/Government/LEPs
• Supply Side:
• Contractors & Supplier:
• 1001+ employees £2,072
• 251-1000 employees £1,448
• 51-250 employees £724
• 11-50 employees £414
• 1-10 employees £207
• Consultants
• 501+ employees £2,072
• 101-500 employees £1,448
• 26-100 employees £724
• 11-25 employees £414
• 1-10 employees £207
Fees (20% of national membership)
• Clients
• £501m+ Industry spend £2,072
• £251m - £500m Industry spend £1,448
• £101m - £250m Industry spend £724
• £51m - £100m Industry spend £414
• Up to £50m Industry spend £207
• National Members of Constructing Excellence
• Part of your package and paid for by the centre
• Club Members of Constructing Excellence
• One club membership fee to be subtracted from the regional figure (e.g. Bristol Club Client up to £50m industry spend £207 - £150 = £57)
Fees (20% of national membership)
“Better together”
Better ideas and inspiration
Better evidence and intelligence
Better conversations and connections
Better influence and leadership
For further information www.constructingexcellence.org.uk
or contact [email protected]
constructingexc
Carpe Diem: Andrew Carpenter, Director CESW
2014
Thought for the day:
The opportunity of a lifetime has to
be grasped in the lifetime of the
opportunity
Rethinking Construction