David Mackness

CEO Scape

EMPA – Making a Difference• Issues to resolve

• A solution from empa

• Improving your project deliver

Issues to resolveCosts• Need for savings• Costs increasing• High aspirations

£

time

Need for savings

Increasing costs of construction

Issues to resolve• An awareness that things

could be done better….Banwell Report 1964, Latham 1994,

Rethinking Construction 1998, Accelerating Change 2002 ….

• Waste– Effort– Materials– Energy

Issues to resolve – BUT

• Deep rooted traditional contracting practises

• Notions of value for money

• Dealing with people who are not convinced about alternatives

Components of a solution:

• Improved processes

• Reduced waste

• Enhanced social and economic sustainability

• Added value into projects (reduce costs)

• Increased certainty with managed risk

• Changed behaviour

Traditional tenders

Partnering

Frameworks

Regional procurement- empa

Partnering approach - advantages– Integrated teams

ClientClient ContractorContractor

Traditional arrangements

Project Manager

Project Manager

SpecialistSpecialist

AcousticAcoustic

StructuralStructural

M&EM&E

QSQS

CoWCoW

ArchitectArchitect

H&SH&S

H&SH&S

EnvironmentEnvironment

QAQA

StructuralStructural

PlannerPlanner

M&EM&E

QSQS

Project Manger

Project Manger

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

ClientClient ContractorContractor

Partnered arrangements 1

Project Manager

Project Manager

SpecialistSpecialist

AcousticAcoustic

StructuralStructural

M&EM&E

QSQS

CoWCoW

ArchitectArchitect

H&SH&S

H&SH&S

EnvironmentEnvironment

QAQA

StructuralStructural

PlannerPlanner

M&EM&E

QSQS

Project Manger

Project Manger

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

ClientClient ContractorContractorClient Manager

Client Manager

SpecialistSpecialist

AcousticAcoustic

StructuralStructural

M&EM&E

QSQS

CoWCoW

ArchitectArchitect

H&SH&S H&SH&S

EnvironmentEnvironment

QAQA

StructuralStructural

PlannerPlanner

M&EM&E

QSQS

Project Manger

Project Manger

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

Partnered arrangements 2

ClientClient ContractorContractorClient Manager

Client Manager

SpecialistSpecialist

AcousticAcoustic

StructuralStructural

M&EM&E

QSQS

CoWCoW

ArchitectArchitect

H&SH&S H&SH&S

EnvironmentEnvironment

QAQA

StructuralStructural

PlannerPlanner

M&EM&E

QSQS

Project Manger

Project Manger

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

SuppliersSuppliers

Partnered arrangements 3

Partnering approach - advantages– Integrated teams– Early contractor involvement

FeasibilityFeasibilityConstruction Construction Preconstruction activityPreconstruction activityOJEU stage1OJEU stage1

Traditional 2 stage tenderContractor

ScopingScoping

FeasibilityFeasibility Pre-contract activityPre-contract activity

Construction Construction TenderingTenderingOJEU processOJEU process

ContractorTraditional single stage tender

Partnering approach - advantages– Integrated teams– Early contractor involvement– A new order required

EMPA/Scape

Design team

Contractor

Client

Supply chain

Existing order for smaller projects

Client

Supply chain

Changed order for larger projects

Design team

Contractor

EMPA/Scape

Partnering approach - evidence

CIRIA 1999 – benefit of selecting contractors by value rather than just price gives better– Team working– Programming– Design and specification– Care of the environment– Budgeting and management of risk and value

2007 Nichols Report for Highways Agency

• preconstruction time savings reduced by 30-40%

2005 National Audit Office – • subcontractors have more to offer than simply

providing a price for another’s design

Consultant time line

0

50

100

150

200

250

300

1 6 11 16 21 26 31 36 41 46 51 56 61 66 71 76 81 86 91 96 101 106 111 116 121 126 131 136 141 146 151

Weeks

Hour

s per

wee

k

TraditionalPartnered

(Traditional) (Partnered)Pre Post Total Pre Post Total

Consultant 3154 3300 6454 1793 2125 3919Contractor 1036 7791 8827CLASP 267 178 444 109 96 205

Total 12951

Solution enhanced by frameworks - advantages– Earlier earlier contract involvement

FeasibilityFeasibility Precontract activityPrecontract activity

Construction Construction

Tendering subsTendering subs

Strategic Procurement with Partnering approach

Contractor

FeasibilityFeasibilityConstruction Construction Preconstruction activityPreconstruction activityOJEU stage1OJEU stage1

Traditional 2 stage tenderContractor

ScopingScoping

FeasibilityFeasibility Pre-contract activityPre-contract activity

Construction Construction TenderingTenderingOJEU processOJEU process

ContractorTraditional single stage tender

Solution enhanced by frameworks - advantages– Earlier earlier contract involvement– Continuous improvement on all issues– Wider agenda introduced

Solution enhanced by frameworks - evidence

Solution enhanced by EMPA – Scale - Flow of projects– Providing an infrastructure for management– Common approach to the market– Reduced costs of procurement– Reaching the supply chain

Solution enhanced by EMPA • Training – Skills academy

– Developing the client side– Improving contractors

• Economic and social sustainability

These benefits are not a given - Action is required

DenialListening but not responding

Not cooperating

Pre occupied

Regressive

MalcontentAngry / threatening

Talking but not listening

Dictating

Negative

Cynical

EngagedDialogue

Collaborating

Productive

Respect for people

Clients - keep engaged

Making frameworks deliver you• Programmes

– Think strategically– Streams of work

• Projects– Correct process, a revised order

• People– Changed behaviour and culture– Client’s adopt CABE 10 Keys for

success

CABE’s keys to being a successful client1. Provide strong leadership

2. Give enough time at the right time

3. Learn from your own and others successful projects

4. Develop and communicate a clear brief

5. Make a realistic financial commitment from the outset

CABE’s keys to being a successful client6. Adopt integrated processes

7. Find the right people for the job

8. Respond and contribute to the context

9. Commit to sustainability

10. Sign off all key stages

Partnering and frameworks on a regional basis are delivering benefits:– Reduced cost– Increased certainty– Reduced programme times– Improving performance

But - Changes required from:– Client side– Contractors

With Scape’s energy and EMPA’s commitment everyone benefits.