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Rethinking Construction

Where has it come from?

Rethinking construction reflects the recommendations made in a report under that title produced in 1998 by a taskforce led by Sir John Egan. It was commissioned by the Deputy Prime Minister to assess the efficiency of the UK construction industry. The report, whilst acknowledging that some parts were world class, concluded that most of the industry was failing to perform satisfactorily, particularly in terms of cost, quality and time and that therefore it should:

• Address the needs and expectations of the end-user more closely
• Move away from traditional ways of doing business, which are restrictive and confrontational
• Aim to achieve targets for:-
  • Reductions in costs, time, accidents and defects
  • Increases in predictability of cost and time, productivity and profitability.

Already the report has been one of the most significant drivers for change in UK construction.

What is Rethinking Construction?

Rethinking Construction is the banner under which the construction industry, its clients and the government are working together to improve UK construction performance.

Rethinking Construction was initiated by the report of the Construction Task Force charied by Sir John Egan 1998.

The principles are simple:

• Client leadership
• Integrated teams throughout the delivery chain, and
• Respect for people

The objectives are to achieve radical improvements in the design, quality, customer satisfaction and sustainability of UK construction and to be able to recruit and retain a skilled workforce at all levels by improving its employment practices and health and safety performance.

The task force proposed seven targets for improvement, which underpin Rethinking Construction.

• Reduced capital cost
• Reduced construction time
• Better predictability
• Fewer defects
• Fewer accidents
• Increased productivity
• Increased turnover and profit

Why Salford City Council is Rethinking Construction

Salford City Council has commissioned Urban Vision to implement Re-thinking Construction Partnering on its behalf.

The reasons for this are:

Because: It's in Salford's and its community's best interest since Rethinking Construction leads to:

• Better value for money - capital and revenue
• Improved predictability of out-turn costs and time
• Better design
• Higher quality
• Less defects
• More effective procurement
• Fewer disputes
• Reduced accidents
• Better use of scarce resources
• Increased client and community satisfaction
• Better whole life value
• More respect for people

Because: Central Whitehall departments are adopting these principles and will increasingly tie grant regimes to the use of Rethinking Construction's innovative procurement methods.

Because: The Best Value Inspectors will check to ensure that Salford's Procurement Strategies incorporate Rethinking Construction.

Because: The annual Best Value audit of Salford's Best Value Performance Plan will check to see that it reflects Rethinking Construction.

Because: Salford - with as many as five roles to play in construction -

• Client
• Funder
• Consultation/designer
• Service provider/contractor
• Operator/end-user

It has a lot to gain by introducing Rethinking Construction principles and a lot to lose by ignoring it.

Because: The old traditional ways of "us and them" are past their sell-by dates. There are now proven more effective ways of procuring and managing construction just waiting to be adopted.

For these reasons, Salford City Council's cabinet on 11th September 2001, approved the adoption of the principles of Rethinking Construction for to the procurement of construction work by the city council.

The old way of doing things was based on the following approach:

• Sequential
• Competitive
• Contractually confrontational
• Conventional

And led to unpredictability of out-turn costs and time, poor quality, waste, disputes, accidents, claims - you name it, it did it!

The NEW way of doing things - based on Rethinking Construction principles:

• Integration - not separation
• Quality - not cost alone
• Partnering - not confrontation
• Innovation - not the conventional
• Performance management · Customer Focus
• Commitment to people
• All backed up by targets for improvement

Capital cost:-	10%
Construction time:-	10%
Predictability:-	+20%
Defects:-	20%
Accidents:-	20%
Productivity:-	+10%
Turnover & Profits:-	+10%

Instead of dealing with parties sequentially, integrate the processes and the team around the service/project from the start - at conception. Get them to work together - pull together - with a common vision/goal. And once together - encourage them to try and stay together - to learn and develop so that they become a team, building on each other's strengths. Using:

• The insights of the client  
• The needs and experiences of the end-user/operator
• The skills and imagination of the designer
• The know-how, buildability and project management expertise of the contractor
• The knowledge and foresight of suppliers and specialist sub-contractors  
• The financial flair of the funder utilising whole-life costings partnership - working towards common objectives, utilising each other's skills and supporting their needs. Integrating the process - the team - around the project - the service - focusing on the client and end-users.

Further Information

• Download a copy of the review www.berr.gov.uk/files/file14364.pdf

Who to contact

Paul Mallinder
Urban Vision Partnership Ltd
Associate Director of Business Development
Business Strategy & Development
Emerson House
Albert Street
Eccles
SALFORD
M30 0TE

tel: 0161-779 6132
email: paul.mallinder@urbanvision.org.uk

This page was last updated on 02 November 2007

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