Lesson 22, Topic 1
In Progress

Construction Strategy Copy

The latest results show an improvement in cost predictability, while overall time predictability of projects was little changed.

Project costs were on budget or better for 66% of projects. This is an improvement on the 65% seen in
the previous survey.

The predictability of design costs were unchanged on the previous year, coming in on or under budget on 67% of the surveyed projects. Although this is the lowest level since 2010, cost predictability is ahead of pre-2010 survey results.

Predictability in the cost of construction improved, with 66% of projects coming into budget or better.
This compares with 65% of projects in the previous

Projects, as a whole, came in on time or better 63% of the time. This is slightly down on the record high published in the 2017 survey results.

The design phase was delivered on time or better for 53% of all projects. This matches the 2017 result.

The construction phase was on time or better for 59% of projects, down from the record high of 67%
seen in 2017.
There is some published commercial research and data gathered from case studies. The case studies mentioned as ‘key projects’ in the right-hand panel on the previous page have been summarised in the graph (right). The red plot indicates the average saving of projects available for measurement to date, with the green plot indicating potential benefits expected by the early adopter community.

Latham Report – In 1994 the Latham Report ‘Constructing the Team‘ was published. The report was commissioned by the UK government to investigate the perceived problems with the construction industry, which the report’s author, Sir Michael Latham described as ‘ineffective’, ‘adversarial’, ‘fragmented’ and ‘incapable of delivering for its customers.

Egan Report – In the reportSir John Egan suggested that ‘the industry as a whole is under-achieving, and called for ‘dramatic improvements’. He proposed that this would be possible ‘…if we focus all our efforts on delivering the value that our customers need, and if we are prepared to challenge the waste and poor quality arising from our existing structures and working practices’.

Accelerating Change – The report stated that ‘Our vision is for the UK construction industry to realise maximum value for all clientsend-users and stakeholders and exceed their expectations through the consistent delivery of world-class products and services.’

It proposed that:

– By the end of 2004, 20% of construction projects should be undertaken by integrated project teams and integrated supply teams.
– By the end of 2004, 20% of client activity should embrace the principles of the Clients‘ Charter.
– By the end of 2007 both these figures should rise to 50%.
– The industry will recruit and retain 300,000 qualified people by the end of 2006.
– There will be a 50% increase in applications to built environment higher and further education courses by 2007.

Never Waste a Good CrisisNever Waste A Good Crisis‘, written during the worst depths of the credit crunch was intended to assess the progress that the industry has made since Rethinking Construction in 1998 and to set out a series of further improvements that could be made over the next ten years.

Infrastructure Cost Review – The Infrastructure Cost Review was a 2010 report commissioned by the government of the United Kingdom and written by Infrastructure UK to find efficiency savings in the delivery of infrastructure projects. The British government aimed to make savings of up to £3 billion per year on current expenditure by 2015, primarily in the pre-construction phase. The report made a series of recommendations for changes in government procurement and planning. Cost savings were quickly realised and Infrastructure UK reported savings of £1.5 billion at the end of the first reporting year and £3 billion by 2014. The programme was projected to have saved £50 billion in expenditure by the end of the 2010s. Infrastructure UK was absorbed into the Infrastructure and Projects Authority which launched its Transforming Infrastructure Performance in 2017 which aims to make £15 billion in annual savings.

Construction 2025 – Construction 2025 is a partnership between industry and Government to transform the construction industry. Central to the industrial strategy is the development of long-term partnerships between the Government and those sectors which can deliver significant growth. Construction is one of those key sectors.
Government Construction Strategy: 2016 – 2020 was published by the Cabinet Office and the Infrastructure and Projects Authority (IPA) on 23 March 2016, setting out plans to deliver £1.7 billion of efficiencies and 20,000 apprenticeships.
Transforming Infrastructure Performance (TIP) is the IPA’s flagship programme to lead system change in the built environment. Its purpose is to transform how the government and industry decide to intervene in the built environment, to drive a step-change in infrastructure performance.

TIP’s Roadmap to 2030 describes a vision for the future in which we collectively prioritise the societal outcomes we need, and use modern digital approaches and technologies, alongside improved delivery models to achieve them. Achieving that vision requires a system for designing, constructing and operating in the built environment that is more resilient, adaptive and sustainable, and that can better withstand the inevitable shifts and changes we will see in the coming decades.
The Construction Playbook, published on 8 December 2020, sets out plans for how the Government will work with the construction sector to ensure public sector works are delivered faster, better and greener.

The document outlines how the Government will strengthen the financial assessment of all the suppliers it works with to make sure projects are delivered on time and to budget. It also looks to improve productivity and innovation in the sector.

The Construction Playbook is based on discussions between the Government and the construction sector. As a result of this collaborative process, measures in the Playbook have been backed by construction firms and business associations from across the industry.
Design – Deploy digital techniques to design better-performing buildings, homes and infrastructure. Use good practice, secure by default, information management to get data right from the start.

Build – Exploit new and emerging digital construction and manufacturing technologies, processes and techniques. Secure, shared information, enabling clients, design teams, construction teams and the supply chain to work more closely together to improve safety, quality and productivity during construction.

Operate – Use real-time information to transform the performance of the built environment and its social and economic infrastructure. Smart asset management to predict and avoid disruption of services. Digitalisation of existing assets and infrastructure.

Integrate – Understand how spaces and services can improve citizen quality of life. Feed that information into the design and build of our economic and social infrastructure and the operation and integration of services they deliver.