never waste a good crisis:
DESCRIPTION
Presentation by Andrew Wolstenholme, author of industry report "Never Waste a Good Crisis. Slides delivered at Constructing Excellence annual convention, at BRE, Watford, UK, on 13 October 2010TRANSCRIPT
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“Never waste agood crisis”
Andrew Wolstenholme
Balfour Beatty
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Constructing Excellence – Members Convention
- How the UK industry has responded to change- NWaGC – a 10 minute summary- Barriers to achieving cost effectiveness- Big themes for the future- Breaking paradigms- Green shoots and quick wins
Delivering better built environmentscost effectively in a new era
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How the Industry responds to change
Construction Industry Reports
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What the Reports highlighted
- Fragmented Industry- Adversarial Relationships- Need to foster trust- Develop a collaborative culture- Recommended new educational standards
- Simon Report 1944- Emerson Report 1962
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How well has the Industry performed since Egan?
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Understanding the evidence
- 10 Industry reports- 1,000 Questionnaires
- 10 years of Industry KPIs
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How well has the Industry done?
Safety Cost and Time
Profitability
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Thesis behind the Report
EganChangeAgenda
- Economic Model
- Capability - Delivery Process- Industry Structure
Exemplars
Blockers
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Never Waste a Good Crisis
Big Themes
- Built environment not construction- Industry road map for a Carbon Agenda
- Business models that force change
- Leaders that get the big picture- Integrate education and training
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Built Environment not ConstructionThe cost of generating Business outcomes
BusinessCosts
O & M
Construction
Design
Delivery cycle Operational life cycle
BusinessOutcomes
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Low carbon construction
BIS Innovation and Growth Team
• Final report in October 2010
• Sector response to the UK’s low carbon transition strategy – “a road map for construction”
• 26% carbon reduction by 2020• 80% by 2050 (1990 baseline)
• Housing, buildings, civil engineering, major projects
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A low Carbon industry – The Opportunity
• a change programme stretching over at least 40 years• cost savings of 10-30% from integration / modernisation• deliver net zero carbon infrastructure for the same price or
less making the low carbon transition affordable• Policies to encourage the industry to be an engine for
economic growth• attract future generations to a noble cause
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Wat
er
Private Funding
Elec
tric
ity
Gas
Airp
orts
Heal
th
Rail
Educ
ation
Road
s
Publ
icBu
ildin
gs
Hous
ing
100%
50%
Priv
ate
Build
ings
Funding UK’s £125bn Industry
Public Funding
Un
- R
egu
late
d
Regu
late
d
PFI
Business Models that force change
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£45bn BSF Programme
Bassetlaw
Islington
Rotherham
North Lanarkshire
Liverpool Harringey
Hackney
Southwark
Ealing
Oldham
Derby
Birmingham
Stoke
Knowsley
Manchester
Every secondary school in England will be re-built or re-furbished by 2023
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Component based system for schools
- Flexible layouts- Focused on business (educational) outcomes- Cost 30% less per m2 – low energy life-cycle
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Terminal 5 – Supply Chain Innovation
- BIM modelling- Full size prototyping- Manufacture and assembly
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£6bn M25 - PFI
- Planning capital projects around traffic management
- Understanding asset renewal- Batched maintenance
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New Birmingham Hospital
- Increasing productivity- Reducing programme time- Eliminating safety risk
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Never Waste a Good Crisis – some ‘green shoots’ appearing
- Clear Vision-Infrastructure UK
-Leadership-Chief Construction Advisor
-Planning-IGT Roadmap for the Carbon Agenda
-Consultation-Finding better ways to deliver BSF - ‘More for
Less’-Incentives
-Policy, Regulation and Smart Procurement-Support
-BIM for all Public Sector projects
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Never Waste a Good Crisis – Some quick wins
- Clients- Business models that demand change- Design for business outcomes- Manage the brief – 50% of your projects are late and over
budget- Industry
-Do not wait for permission to change-Innovate – clients want it but do not know how to ask-Early adopters in the Carbon race will win
- Government- Develop Policies that drive change- Keep strong leaders in place- Role model – the rest will have to follow