The Construction Leadership Council (CLC) has released a new industry report ‘Procuring for Value’, authored by CLC member, Global Board Director of Rider Levett Bucknall (RLB) and industry expert Ann Bentley. This follows the launch of the government’s Construction Sector Deal last week,
As the Public Administration & Constitutional Affairs Committee concludes that government procurement policies contributed to the collapse of the Carillion, Ann 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.
Procuring for Value highlights that the industry accounts for over 10% of the UK workforce (the equivalent of £600 billion contribution to the economy per year), while outlining how it 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 £ 15 billion per annum.
Moreover, 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. Following on the Farmer Review published by the CLC in October 2016, the report extends existing government policy to encourage an integrated industry approach.
“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,” said Ann Bentley.
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.