Procuring for value report
In July 2018, the Construction Leadership Council (CLC) published ‘Procuring for Value’, written by Global Board Director of Rider Levett Bucknall (RLB) and industry expert Ann Bentley.
It followed publication of the government’s Construction Sector Deal, and the report of the Public Administration and Constitutional Affairs Committee (PACAC) which found the collapse of Carillion was in part the result of the government’s procurement policies. It also builds on CLC’s 2016 Farmer Review ‘Modernise or Die’.
The report sets out recommendations for maximising the impact of the sector deal and calls for a sustainable business model for the whole supply chain. It recommends the development of an industry-wide definition of value that goes beyond capital cost, allowing procurement on the basis of whole-life value and performance.
The report also proposes further reform and standardisation of the pre-qualification process, steps to measure and reward good performance, reforms to retentions and new forms of contracts.
It suggests that simply bringing the whole industry up to the current average productivity level could save more than £15 bn a year.
Ann Bentley said; “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.”
NB P18 of the report states; 'The widespread and consistent use of industry best practice would produce immediate productivity gains across the whole sector' and suggests that; 'A digital, industry-wide, knowledge platform, where best practice is curated, shared and challenged, that is easy to understand and that is accessible does not currently exist'. We agree with the first point, but strongly disagree with the second.
The report is available to download from the CLC website here.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
A right to light generally refers to the right to receive sufficient light through an opening.
Interference and compatibility - the effects of electromagnetic fields in the workplace.
Important action is being taken to inspire young people to train as engineers.
A survey of Leicester’s historic buildings resulted in local listing being taken more seriously.
Demolition is the most high risk activity in the construction sector. Read our introductory article here.
BSRIA report on the domestic boiler market, with China recording the most 'dynamic market uptake'.
Social value of infrastructure
Do we really know everything important about the impacts of our infrastructure projects? And if we don’t, does it matter?
Former Chief executive Richard Howson blames government for being 'poor payers'.
An environmental plan is an essential tool for setting and managing environmental objectives for a project.
Procuring for value
CLC call for an 'outcome-based, transparent and efficient' industry with new report.