cpm10-jon-de-souza_2.pdf

7/28/2019 cpm10-jon-de-souza_2.pdf

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Presentation to

Construction Project ManagementConference

Reviewing the OGCs Achieving ExcellenceGuidance

18 February 2010

Jon de Souza


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Our purpose is to

Improve industry performance

The outcome will be

A demonstrably better built environment


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1994 1998 2001 2003 2005 2006

DBF

CRISPNational

Platform
http://images.google.co.uk/imgres?imgurl=http://www.greenfile.net/images/nCRISP_logo.gif&imgrefurl=http://www.greenfile.net/construction/construction.htm&h=54&w=95&sz=2&tbnid=2cnqRmzp9M6oqM:&tbnh=43&tbnw=76&hl=en&start=1&prev=/images%3Fq%3Dncrisp%2Blogo%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN


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The Egan Decade


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Product

development

Production of

components

Project

implementation

Partnering

the

supply chain

Committed leadership

Focus on the customer

Product Team Integration

Quality driven agenda

Commitment to people

5 - Key Drivers forChange 4 - Key ProjectProcesses 7 - Targets forImprovement

Capital cost

Construction time

Predictability

Defects

Accidents

Productivity

Turnover & profits

--10%10%

-10%10%

+20%20%

-20%

-20%

+10%10%

+10%10%

The Egan vision for change


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UK Construction Key Performance Indicators

A Measured Approach

Economic

Client satisfaction

Product and service

Defects

Predictability

Cost and Time

Profitability Productivity

Safety

Construction Cost Construction Time


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Egan comparisons(2000 2008)

Construction cost

Construction time

Predictability cost

Predictability time

Accidents

Productivity

Profit

Defects

Egan Target

-10%

-10%

+20%

+20%

-20%

-20%

+10%

+10%

-57%

2008Target Actual

4% +0.5%

+1%

0%

+6%

-2%

-5%

+7%

+10%

-57% 8%

100% 49%

100% 45%

100% 73%

213 865

58k 46k

9.4% 9.6%

%


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Never Waste a Good

Crisis

Or

A little less conversation, a lot more

action please


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Review of progress since Egan

The review asked...Is the agenda still relevant?

Barriers to progress identified

Business and Economic Models

Capability

Delivery Model

Industry Structure

Never Waste a Good Crisis


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0

50

100

150

200

250

C

lientSat-

Product

ClentSat-

Service

Defects

P

redCost-

Project1

P

redTime-

Project1

Profitability2

Prod

(Current)

Prod(Constant)

3

Economic KPIs

Demonstration v Industry 2009CE 2009 Industry 2009 = 100

Client

Sa

tisfaction-

Product

Client

Sa

tisfaction-

Service

Defects-

Impactat

Handover

Predictability

Cost

Pr

edictability

Time

Profitability

P

roductivity

(Current

Values)

Productivity

(Constant

20

00Values)


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0

50

100

150

200

250

300

350

400

450

Safety-

Overall 4

Safety-All

projects 4

EmpSat StaffT/O Q&S EnvImp-

Product

EnvImp-

Process

Demonstration v Industry 2009CE 2009 Industry 2009 = 100

People and Environment KPIs

2009 Demonstrations outperform the industry by an average of 80%

Safety

OverallSafety - All

Projects

Employee

Satisfaction

Staff Turnover -

Al l Projects

Qualifications &

Skills

Environmental

Impact -

Product

Environmental

Impact -

Construction

Process


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OGC guidance

Achieving Excellence in Construction (AEC):

Initially drafted in 2002

Guidance to public sector clients on how to betterprocure and deliver construction

Promoting the lessons of the Egan/improvement

agendas

Initial OGC review of the Guidance in 2008 Constructing Excellence engaged in March 2009 to

lead process of redrafting and updating of this

Guidance


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OGC guidance

Achieving Excellence in Construction (AEC):

1. Initiative into Action

2. Project Organisation3. Project Procurement Lifecycle

4. Risk and Value Management

5. The Integrated Project Team

6. Procurement and Contract Strategies

7. Whole-Life costing

8. Improving performance

9. Design Quality10.Health and Safety

11.Sustainability


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OGC guidance review

What we did

Initial discussions with OGC regarding expectations forreview

Initial review of existing guidance with key stakeholders

Determining new structure for guidance

Rewriting of guidance

Identification of new case studies for amended content

Second consultation with wider stakeholder group


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OGC guidance review

Initial conclusions

The industry (and client knowledge) had moved onsubstantially since the guidance was first drafted

especially in:

Sustainability

Health and safety

The refreshed guidance should align with other

industry targets and best practice

But retain existing headings as these have become

well known across the public sector


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Construction Commitments

and Strategic Forum targets to 2012

Procurement and integration

Commitment to people

Client leadership

Design quality

Sustainability

Health and safety


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The Clients Commitments


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OGC guidance review

Outcomes

Refreshed guidance aligned with the Construction

and Client Commitments New case studies

Areas considered in more depth within the

guidance:

Collaborative procurement

Resource efficiency

Client health and safety responsibility (CDM2007)

Building Information Modelling Use of lean techniques

Guidance designed to add value to both frequent

informed and occasional clients and their supply

chains


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Influencing behaviour of construction clients

Frequent

Occasional

ExperiencedInexperienced

Intelligent Clients


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OGC guidance review

Key lessons

Acceptance within OGC that traditional lowest costprocurement does not provide best value

More work needs to be done to promote fair

payment practices down the supply chain

While some Government clients are excellentprocurers of construction, others still resort to

lowest cost tendering

There should be a method for assessing

Government client performance


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Economic climate change

Revert to type

Long tender lists

Lowest tender price

Claims

Cost and time

overruns

Abandonsustainability

Shed people

No turning back

Best value/real value

Collaborative working

Target price plus lean

Delivery to all KPI targets

Sustainability remains key

driver

Retain good people

however possible


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Maturity matrix

Developed from NAO maturity matrix

55 questions with 4 levels of maturity

under the 6 headings of the Construction Commitments:

Client Leadership

Procurement and Integration

Design Quality

Commitment to People

Sustainability

Health and safety

Applicable to different roles

Funders, procurers, deliverers Centralised vs. devolved Departments

End users and suppliers able to provide views too


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St Francis of Assisi Academy, Liverpool

The excellent GCSEresults and the fact that

our students finished top

of the national league

tables for progress canrightly be attributed to the

impact the building had on

their studies

Green values help academy top new league table

A school which offers its pupils a green-focused education has wonplaudits for having the best teaching standards in the country.

The Independent, 11 Jan 2007


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Thank you for listening !

[email protected]

BDP

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