Opinion
Integrated reward
We must not put cost before value in the procurement process, particularly if we want to foster collaborative working in project teams,
says Matthew Barrett
I
t is interesting to see, in the Journal’s interview with Rob Manning in the May issue (see page 34), that CIBSE’s new president is arguing for a collaborative procurement and contracting process as a key
way of keeping close to a building’s original design intentions. This is, of course, particularly important when it comes to achieving sustainability goals and targets in the built environment. Indeed, much of today’s construction and engineering technology is product and supply chain driven, and the best solutions are therefore achieved by integrated team working between design consultants, contractors and the rest of the supply chain. Building performance is dependent upon the whole building solution, and cannot be achieved by developing designs without specific products and solutions in mind. So-called ‘value engineering’ by contractors and suppliers appointed late in the process causes design havoc and in reality adds little value. When projects are based on the lowest cost option, the complexity of the solutions required is often ignored. With this comes a potentially negative impact on building and end-user business performance. I would argue, moreover, that taking this lowest-cost
approach in today’s construction arena is extremely risky and is likely to lead to an array of issues, such as design flaws, delays, disputes and (more often than not) a defective and badly performing building. The key to successfully integrating building services
into a project is to take an approach based upon collaboration and inclusion – from the first opportunity through to design, project delivery and completion. The result will be a better performing building that is more durable, cheaper to run and more conducive to occupier well-being and productivity. To approach the procurement process as a battle or a contest (possibly by exploiting the current market conditions) will lay the foundations for conflict and poor performance, both during and after construction. So, in practical terms, where should the collaboration
start? Well, a sophisticated planner would consider this at the very beginning. A clear and well thought out procurement strategy that engages the designers,
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contractors and other key elements of the supply chain from day one will ultimately have more chance of success than the traditional approach. A two-stage tender process is a good way of achieving this, and has proven successful in generating a better alignment of all main stakeholders’ objectives from the outset. Unfortunately, these proven methods have fallen
away in the recession. It would seem that the increased level of competition in the market and consequent focus on lowest price is a key cause. The complexity and constraints of the procurement process and choice of contract form can also play a part. Certain frameworks and contracts can help encourage a greater sharing of interests. I believe that project managers involved in the procurement of building services should consider value, too. We need to think beyond construction and consider the life-cycle, energy performance and durability of the systems. Use a framework or two-stage tender process to engage a core team that can collectively work to improve design and building performance. By engaging and integrating the project team from the earliest possible opportunity, the rewards can be step-change improvements, as opposed to marginally reduced capital costs. It would be a vast underestimation to describe the
The key to successfully
integrating building services into a project is to take an approach based upon collaboration and inclusion
recent recession as a detour, but we mustn’t forget the road we were travelling before the credit crunch struck; legislation, climate change targets, energy concerns and corporate responsibility are here to stay – and it is worth considering that when we emerge from the current crisis the pressure will still be on to deliver measurable reductions in environmental impact and enhanced long-term building performance for our clients. l
Matthew Garrett is commercial director at building services provider, NG Bailey.
June 2010 CIBSE Journal
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