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Putting it together


Project integration:


Since the mid-1990s, a number of thought- leaders within the construction industry have been championing methods to reduce waste and drive down costs. One such stalwart, Martin Davis – former chairman of the Strategic Forum Integration Task Group – explains why he believes project integration with Integrated Project Insurance is vital


I


n February, the Cabinet Office revealed its commitment to delivering savings of 15-20 per cent from central construction projects by 2014/2015, confirming figures in the government’s 2011 Construction Strategy. At the heart of these moves is the need to introduce


genuine ‘partnering’, where the project is driven by a team of key stakeholders rather than client and main contractor dictating to subservient sub-contractors and suppliers. There is now a real commitment within central government to making this happen. The government has now endorsed three new


procurement models to be tested through pilot projects, and I would argue that the model proposed by the Specialist Engineering Alliance (SEA) is the most radical and far- reaching of these. The purpose of this article is to explain its principles and their relevance to specialist contractors by addressing some key questions.


Q. What are the requirements for true project integration? Two of the key factors are trust and money – without which people will just pay lip service to the concept of project integration. Beyond these you need a fully integrated team, all


48 ECA Today March 2012


Repeating old, fragmented practices won’t cut waste


motivated to meet the objectives of the client and protected from a blame culture. The core team must incorporate the key players in the project, including specialists and manufacturers, working together as a ‘virtual company’ and communicating regularly as colleagues rather than rivals. Another key element of project integration is Integrated


Project Insurance (IPI) – indeed, it could be the key to a successful project.


Q. Why is Integrated Project Insurance so important? Some successful partnering projects have operated a project bank account to reduce risk to individual companies and engender trust. This will certainly be essential to integrated projects, but the concept of IPI takes this peace-of-mind a stage further. Traditionally, each party to a construction project has its


Figure 1. Integrated Project Insurance


Contractor’s All Risks


Third Party


Latent Defects


Professional Indemnity


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