SUPPLY CHAIN ENGINEERING KNOWLEDGE Unwinding the


Supply T


he industry’s supply chain is evolving rapidly to handle the dramatic changes in how building projects are delivered. This is changing traditional


relationships, and contractors – in particular – are facing up to a new set of challenges. ‘Our industry faces totally different technical challenges and project processes to our predecessors,’ says Sue Sharp, president of the Building & Engineering Services Association (B&ES). ‘For example, contractors have the task of integrating renewable technologies into the widest possible range of buildings. ‘We fi nd ourselves discussing the potential of community heating schemes; combined heat and power; smart controls and smart grids. Things that would have been considered the domain of the design professionals in the past are now part of everyday conversation among contractors in partnership with our design colleagues,’ adds Sharp, who is director of ventilation cleaning fi rm Overclean. Contractors are playing a much more in-depth


role in an attempt to improve the thermal performance of the building envelope. For example, they are working more closely with consultants on understanding how natural ventilation, allied to night-time cooling of the thermal mass, will affect heating and air conditioning loads.


Hierarchy ‘The supply chain is no longer a linear hierarchy – it is much more fl uid than the one our Victorian forebears left behind for us and which has dictated the nature of our sector ever since,’ adds Sharp. ‘An antiquated supply chain has little, if any, chance of delivering a sustainable built environment.’


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For instance, the development of the Code for Sustainable Homes has forced house builders to improve their knowledge of the role mechanical ventilation with heat recovery plays in housing, as tough standards of air tightness can increase the threat of airborne pollutants. The growing health aspect to contractors’ work is one reason for involving specialists at an earlier stage. ‘This broad involvement and depth of technical understanding represent a revolution in how contractors go about their business,’ says Sharp. ‘Of course, specialists in key areas continue to play a crucial role, but their specialism is fi rmly part of a broader building strategy.’ Many ventilation hygiene specialists, for example, now cover water systems too and also regard their health and safety role as an integral part of the energy performance strategy. B&ES was formerly known as the HVCA – the


name change, earlier this year, is part of the evolution of the role of the contractor, according to the association. ‘There is very little room for sentimentality in


the modern business setting,’ says Bob Shelley, immediate past president of B&ES. ‘Times have changed – and carry on changing. The twin challenges of sustainability and the current austere economic circumstances mean there is no going back.’ Shelley, who is senior project manager at


Argent FM, believes that the vast majority of M&E and plumbing workers realise that their future depends on them embracing modern approaches, such as integrated project teams where specialist contractors are involved from the earliest stages. However, this means fi rms must invest to improve multi-skilling in order to deliver these more complex demands, but this is hampered by the issue of late payment, which


An antiquated supply chain has no chance of delivering integrated systems engineering, says Ewen Rose


chain


Failing to adapt and modernise is not an option


refuses to go away. In these parlous economic times this is a potentially alarming combination. Just 3% of contractors are paid within 30


days in private sector projects, according to the National Specialist Contractors Council (NSCC). The situation is better in the public sector, where 41% are paid on time. ‘To overcome the effects of the recession, construction industry members need to work together to protect the supply chain,’ says NSCC chief executive Suzannah Nichol. ‘Without a knowledgeable, effi cient and skilled workforce, employed by a multitude of specialist contractors, the industry cannot deliver the infrastructure, facilities and services necessary for our economy to function – let alone grow.


Support ‘Unsurprisingly, this is why fair payment continues to be cited by specialist contractors as the number-one measure that would provide support,’ she adds. There is, unsurprisingly, a growing clamour


among contractors for wider adoption of Project Bank Accounts (PBAs) that remove the control of project money from the main contractor and allow for payments to be staged, thus giving contractors greater security of payment. The traditional project hierarchy is stopping


money fl owing through the supply chain and is putting fi rms in real danger, according to Stacey Spence, managing director of ductwork contractor Ductform.


CIBSE Journal November 2012 27


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