Week 1 lecture- The industry

Importance of UK construction
1. 300,000 firms employing over 2.1 million people
2. £110 b/annum to UK (40% to public sector)
3. Traditional focus of time, cost, quality is changing.
4. Intelligent clients
5. Contributes 8.8% gross value added
Major influences on UK Construction
1. Latham (1994)- Constructing the team
2. Egan (1998)- Re-thinking construction
3. Strategic forum for construction (2002)-Accelerating change
4. Constructing excellence (2009)- Never waste a good crisis
  1. Business and economic models (determine pace of change)
    1. Lack of cohesive industry vision
    2. Construction seen as a commodity purchase
    3. No incentives to change
    4. Few business drivers to improve
    5. Construction 'does not matter'
    6. Industry culture is driven by economic forcs
  2. Capability( to attract, retain and develop more of the right people)
    1. Lack of purpose
    2. Lack of visible leadership
    3. Failure to attract new talent to the industry
    4. Failure to develop talent within the industry
    5. Narrow degree courses prevent hollistic thinking
  3. Delivery model (lack of integration in delivery process impeedes continuous improvement)
    1. Contractors would rather 'push' risk down supply chain than 'pull' opportunities up
    2. Few clients demand a best value solution
    3. Lack of integrated process results in sub-optimal solutions
  4. Big themes for - Industry leaders/ Government/ Clients
    1. Procure value
    2. Intergrate education and training
    3. Develop a new generation of leaders
    4. Adopt new business models that promote change
    5. Understand built environment
    6. Focus much more on the environment
    7. Suppliers take the load
    8. Find a cohesive voice for the industry
  5. Industry structure (diverse/fragmented structure of industry creates competing agendas
    1. Too many industry blockers
    2. Lack of joined up thinking by government and other key stakeholders
    3. Lack of single coherant voice for industry
5. Cabinet Office (2011)- Government construction strategy
6. HM Government (2013)- Construction 2025
  1. Targets
    1. 50% reduction in overall time, from inception to complation, for new build and refurbs
    2. 50% reduction in greenhouse gases emissions in built environment
    3. 50% reduction in trade gap between total exports and total imports for construction products
    4. 33% initial reduction in construction and the whole life cost of built assets
  2. Vision
    1. People- Known for talented/ diverse workforce
    2. Smart- Efficient and technologically advanced
    3. Sustainable- Industry leading the world in low carbon and green construction exports
    4. Growth- Drives growth across the entire economy
    5. Leadership- Industry with clear leadership from construction leadership council
  3. Different
    1. True Partnerships between government and industry
    2. Action plan to get there
Government strategy themes
1. Co-ordination/ Leadership
2. Forward programming and date
3. Governance and client skills
4. Challenge
5. Value for money, standards and benchmarking
6. Efficiency and elimination of waste
7. BIM
8. Allignment of design/construction and operation and asset management
9. Supplier relationship management
10. Competitiveness and reducing duplication
11. New procurement models
12. Client relationship management
13. Implementation of existing and emerging government policy
Relevant Construction bodies
1. Clients: Construction clients group
2. Construction industry council (CIC)
3. UK contractors group
4. National specialist contractors council/ Specialist Engineering and contractors group
5. Construction products assosiation
6. UCATT (union of construction, allied trades and technicians)
7. Constructing Excellence
8. Constrution industry research and information assosiation (CIRIA)
9. Building research establishment (BRE)
10. Commissions for architecture and the built environment (CABE)
11. Professional institutes: ICE/ RICS/ CIOB/ RIBA/ etc
12. Trade institutions: Concrete, Steel, Timber etc)

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Week 1 lecture- The industry

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