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Getting to know Construction Clients

Getting to know Construction Clients. Peter Cunningham Chief Executive, Construction Clients’ Group CCG National Conference. Our purpose is to Improve industry performance The outcome will be A demonstrably better built environment. 1994 1998 2001 2003 2005. DBF.

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Getting to know Construction Clients

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  1. Getting to know Construction Clients Peter Cunningham Chief Executive, Construction Clients’ Group CCG National Conference

  2. Our purpose is to Improve industry performance The outcome will be A demonstrably better built environment

  3. 1994 1998 2001 2003 2005 DBF

  4. Promoting Industry Change 1994 1998 2002 2006 2008

  5. The ‘Egan’ vision for change 5 - Key Drivers for 7 - Targets for 4 - Key Project Processes Change Improvement Capital cost -10% Committed leadership Partnering Construction time -10% Product the Focus on the customer development Predictability supply chain +20% Defects -20% Product Team Integration Accidents -20% Project Production of Quality driven agenda implementation components Productivity +10% Commitment to people Turnover & profits +10%

  6. Member forums2007-8 2008-9

  7. What is the CCG? • Enable better value from construction procurement • Provide a learning and sharing network for clients • Promote best practice and industry improvement • Provide a portfolio of products and services for members • Influence • Provides a collective client voice in key representative groups • For private and public sector clients and client representatives “To maximise client outreach and upskill competence”

  8. 2008 Highlights • Health & Safety (CDM 2007, Occupational Health, etc) • Value/Asset management • Construction Clients’ Charter – Clients’ Commitments • Industry representation • Strategic Forum for Construction • Integration; Health & Safety; Sustainability • Influence • BERR Select Committee; Sustainable Construction Strategy • Equal Partners project – private sector procurement • Regional Events • International

  9. International Construction Clients’ Forum • Denmark • Sweden • Netherlands • Belgium • South Africa • Hong Kong • Australia • New Zealand ICCF is the construction client voice to the EU

  10. Our members include… • English Heritage • Grosvenor • Heritage Lottery Fund • Highways Agency • BAA • BBC • Bristol City Council • Defence Estates • Igloo Regeneration • Marks & Spencer • Nationwide • British Property Federation • Olympic Delivery Authority • Leeds City Council • East Riding of Yorkshire Council • CIOB • Segro • Lloyds TSB • Barclays • Westfield • Birmingham Urban Design Partnership • Environment Agency • Royal Mail • Eversheds • Nabarro • London Area Procurement Network • Pfizer • Goldsmiths University • Bae Systems • Sandwell MBC

  11. Our members include… • English Heritage • Heritage Lottery Fund • Highways Agency • Bristol City Council • Igloo Regeneration • Marks & Spencer • Nationwide • British Property Federation • Olympic Delivery Authority • Leeds City Council • East Riding of Yorkshire Council • Lloyds TSB • Westfield • Birmingham Urban Design Partnership • Environment Agency • Eversheds • London Area Procurement Network • Pfizer • Goldsmiths University • Bae Systems • Sandwell MBC

  12. Defining construction clients Frequent Occasional Un-informed Informed

  13. Background to the Charter review • Based on original Egan report • Enabled clients to make a commitment to performance improvement • Progress is measured against increasingly demanding targets • Only 300 users to date • Negative feedback of accreditation process

  14. Review findings • Content is out of date (Egan 1998) • Content too generic and not relevant • Process is too bureaucratic (i.e. too much red tape) which has led to high barriers to use • Relatively low take up (90% social housing) • Complaints regarding the accreditation supplier

  15. Significant developments since the original Charter • Increased partnering and frameworks • Development of longer term working arrangements • Launch of 2012 Commitments • Recognised need to engage supply chain • Utilise experience of frequent/informed clients • Need to influence behaviour of occasional/uninformed clients

  16. Construction Commitmentsand Strategic Forum targets to 2012 • Procurement and integration • Commitment to people • Client leadership • Design quality • Sustainability • Health and safety

  17. Introducing the Clients’ Commitments

  18. Guidance Assurance Tool Occupational health Client PEG to H&S CDM Knowledge portal for clients CHAS Health & Safety Sustainability Training Client Leadership Construction Clients’ Commitments HSE Legal CSCS People Procurement & Integration Design Quality

  19. Next Steps • Launch the Commitments • Communications & marketing • Signpost to practical guidance • Selling the principles • Client (best practice, commitment to change) • Supply chain (want to work for clients that abide by Commitments principles) • Work with CIC re. Commitments register • Generic offering that can be sector be-spoked • Develop signposting resource for clients

  20. In summary, frequent informed clients seek: • Early involvement • paid-for input from specialists including FM with design expertise, appointment of practised teams and pre-formed supply chains • Focus on, and selection by, value • selection on quality (esp of relationship), whole life costs and benefits • Common processes and tools • eg co-location, extranets, single project bank accounts • Measurement of performance • Client-focused KPIs • Long-term relationships • Frameworks, standing supply chains • Modern commercial arrangements • Collaborative form of contract project insurance, open book, target cost, prompt payment mechanisms (eg single project bank account)

  21. Occasional or uninformed clients will: • Early involvement • Historic (“traditional”) design-bid-build • Focus on, and selection by, value • Lowest price tendering focussed on initial capital cost • Common processes and tools • Duplication of roles • Measurement of performance • Long-term relationships • Tendering every package every time • Modern commercial arrangements • A traditional form of contract

  22. 2009 Plans & Activities Launch Client Commitments: Client Leadership Health & Safety Procurement & Integration Sustainability Design Quality Commitment to People Continued CDM work – on-line tool & research launch Local government offering Asset & facilities management offering Inaugural national conference Private sector procurement report launch Ongoing client representation

  23. Getting to know Construction Clients Peter Cunningham Chief Executive, Construction Clients’ Group peter.cunningham@constructingexcellence.org.uk www.constructingexcellence.org.uk

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