A rallying call for an “outcome based, transparent and efficient industry” has been made by the Construction Leadership Council (CLC) in a new industry report Procuring for Value authored by CLC member, Global Board Director of Rider Levett Bucknall (RLB) and industry expert Ann Bentley, following on from the launch of the government’s Construction Sector Deal last week.
Hot on the heels of the Public Administration & Constitutional Affairs Committee’s conclusion that government procurement policies contributed to the collapse of Carillion, Bentley promotes a sustainable business model for the whole supply chain. The three-pronged approach includes procuring on the basis of whole-life value and performance; measuring and rewarding good performance and; “getting the basics right”, including fairness of cash-flow and reforms to the practice of retentions.
Highlighting how the industry equates for over 10% of the UK workforce, or the equivalent of £600bn contribution to the economy per annum, Procuring for Value outlines how the industry needs to change to improve productivity, end user satisfaction and safeguard those in the sector. It also estimates that a more “joined up” approach to procurement could result in a saving of over £ 15bn per annum.
Produced by the Construction Leadership Council (CLC)’s Supply Chain and Business Models work stream, the report builds on the Sector Deal’s strategic principles of Digital, Manufacturing and Whole-life Performance and makes practical, long-term recommendations for both government and industry to facilitate change. Procuring for Value follows on the Farmer Review published by the CLC in October 2016 and extends existing government policy to encourage an integrated industry approach.
Ann Bentley comments, “The Procuring for Value report is a fundamental strand of our policy, outlining the best practice for the industry delivered through standardisation and digital technologies. Construction needs to change. Every rung of the supply chain needs to take responsibility and understand their impact on the industry and the larger financial picture that is at play. The report highlights as an industry how we can do just this.”
The Procuring for Value report is available to download from the CLC website here and there will be a number of briefings and roundtables hosted by the CLC for organisations and industry leaders regarding the Construction Deal and the Procuring for Value report.