Sustainability in the supply chain

scapegroup.co.uk The production of this report was supported by the following organisations and their supply chains. Executive Summary is a leading international infrastructure group. With 34,000 employees, we provide innovative and efficient infrastructure that underpins Over a two week period in summer 2016, Scape our daily lives, supports communities and enables economic growth. surveyed over 150 senior managers at public sector We finance, develop, build and maintain complex infrastructure such as organisations across local and central government, transportation, power and utility systems, social and commercial buildings. along with a range of suppliers and subcontractors

Carillion is one of the UK’s leading integrated support delivering built environment services. services companies, with extensive capabilities, a substantial portfolio of Public Private Partnership projects and a These included contractors who provide The responses provide revealing insight sector-leading ability to deliver sustainable solutions. construction and civil engineering into the extent of the skills crisis within services, consultancies who support the the supply chain, the need for greater public sector and facilities management SME engagement, the importance of plc is a leading property, residential, construction and providers. This survey sought the the public sector in providing forward services group which invests in, builds, maintains and renews the opinion of tiers 1, 2 and 3 of the visibility of works to SMEs and the places where we work, live and play. public sector supply chain. growing importance of social value and local economic growth. We asked questions about Willmott Dixon is a privately-owned construction, residential development the tendering process and bid We would like to extend our thanks to and property support services company, with the ambition to create a opportunities, the stability of our national partners and their supply huge and lasting positive impact on our society. This is not only through the supply chain, supply chain chain across the United Kingdom in what we build and maintain; it’s through the fantastic efforts of all our people management, the skills shortage contributing to this research. who make a major contribution to enhancing their local communities. and an investigation into the sector’s reliance on public projects. Faithful+Gould is a worldwide integrated project and programme management consultancy, offering a versatile blend of property related professional services.

Pick Everard is a dynamic, forward thinking practice, providing a comprehensive range of project, cost and construction management, architectural, engineering and strategic consultancy services.

SUSTAINABILITY IN THE SUPPLY CHAIN 3 Contents Introduction A shortage of skilled labour has caused the balance of power within the UK’s supply chain to shift considerably since the 2008 recession, from a top down model to a more collaborative working environment.

5 | Introduction 19 | Case Study The public estate has also changed This report is an investigation into the over this period. After seeing some dynamics of the relationship between 6 | The Public Sector Perspective 20 | Conclusion growth between 2009 and 2011 the the public and private sector and industries that support the public assesses ways in which partnership Tendering Greater forward visibility will support SMEs sector in developing and managing working, true collaboration and open Sustainability in the supply chain Collaboration between the public sector and supply chain their estate and infrastructure – dialogue can help to achieve mutual The skills shortage Supporting skills, apprenticeships and diversity construction, civil engineering, success. The report also seeks to Supply chain management Delivering social value consultancy and facilities management examine the critical challenges facing among others – have been inhibited the industry and proposes some 12 | The Supply Chain Perspective 22 | A Word from the Industry by shifts in government spending. suggestions as to how to address Public sector construction spending is them together in partnership. Reliance on the public sector Mark Robinson, Scape Group still 4% lower than it was in 2008. As a Tendering and bid opportunities Rick Willmott, Willmott Dixon result of these pressures, public sector Dean Banks, Balfour Beatty The skills shortage organisations are putting an even Supply chain management Rob Holt, greater emphasis on achieving value Peter Young, Kier for money, and in ensuring projects 16 | The SME Perspective and programmes not only fulfil the 23 | Case Study Reliance on the public sector material need of the local community, but the local economy also sees a Tendering direct benefit from the project itself. Bid opportunities Skills shortage Supply chain management

“Now more than ever we need to work more closely together in order to deliver for both the public sector and SMEs. We can only achieve sustainable levels of efficiency through a perpetual focus upon true collaboration, partnership and greater engagement with all stakeholders.”

Mark Robinson Scape Group Chief Executive

4 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 5 The Public Sector Perspective To achieve its objectives of maintaining efficient and fit for purpose assets that support the delivery of vital public services, the public sector depends upon a strong, highly capable and responsive supply chain.

However, a sustainable and appropriately skilled local supply Tendering However, a key issue in the chain is also highly valuable to tendering process from the Each year the value of public the public sector because of its perspective of the public sector sector construction activity is fundamental importance to the remains the lack of forward visibility around £30 billion1. It is vital that in local economy. suppliers have of new public austere times for both central and This is particularly the case for local sector work. Of the public sector local government, this investment authorities and Central Government managers who participated attains maximum value from the departments for whom local skills, in our survey, as many as public purse. The public sector economic development and job 28% believe that suppliers should also take an ‘entire lifecycle’ of public sector % creation are primary concerns. are ‘poorly informed’ about view of the built environment so 72organisations use opportunities to bid for work. From the perspective of the public that the local and regional value of Public sector managers are clearly frameworks to procure sector, there are a number of supply facilities management services as aware of the issue and of the goods and services chain challenges, from the stability well as technical specialists and importance of resolving it to ensure Sustainability in the and sustainability of supply chains, consultants, along the full length its supply chain is engaged. Supply Chain Survey 2016 to the skills shortage and wider of the supply chain, are taken supply chain management. into account. One of the available solutions to this challenge is to offer more Our supply chain survey has Frameworks remain one of the information about projects further revealed that the impact of these most successful methods of in advance of the opportunity to issues is already being felt across procuring works and services in bid for work. This enables the the public estate. the public sector with 72% of contractors and service providers public sector organisations to prepare for greater levels of surveyed stating that they use demand in the years ahead and frameworks to procure goods recruit accordingly. Nearly a third and services from suppliers. (32%) of public sector managers Frameworks remain the most who took part in the supply chain flexible and cost effective form survey believe that opportunities of procurement but they also for suppliers to bid for public offer a robust and fair way of sector work should become public appointing contractors for built knowledge more than 12 months environment projects. before the project or contract is due to start.

1ONS, Output in the Construction Industry, 2015.

6 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 7 The Public Sector Perspective

Sustainability in the Skills shortage supply chain The growing shortage of skills in Our survey has demonstrated that the UK construction industry is well ‘sustainability’ in the context of the documented. To meet the rising supply chain has a broad definition. demand for construction services and For the public sector it means much to replace the number of construction more than using sustainable materials workers due to retire in the next five and efficient delivery methods. years, the UK needs to recruit as many as 1 million new workers into Sustainability also means establishing the construction industry by 20202. believe providing long-term% a stable and appropriately skilled 70benefits for the local supply chain that is robust and flexible Professional services are also enough to adapt with the cyclical particularly affected by the loss economy should be one of effects of the economy. of the ‘baby boomer’ generation the biggest priorities for a to retirement, including the many sustainable supply chain Our survey of public sector managers consultancies who support the Sustainability in the revealed that 70% believe providing public sector through design, Supply Chain Survey 2016 long-term benefits for the local project management, quantity economy should be one of the surveying, asset management and biggest priorities for a sustainable other technical services. Facilities supply chain. Furthermore, 54% management operators are also agreed that delivering social value struggling to find staff with the right is one of the biggest priorities. skills to support the public sector However barriers still remain in and manage their buildings, with achieving these desired outcomes. apprenticeship funding not yet The most challenging of which delivering enough new staff to is inadequate visibility of future fill the skills gap. contracts – 79% of public sector Our survey respondents agree, with respondents to our survey cited of public sector respondents% to 42% of public sector managers this as a barrier to delivering a 79our survey cited inadequate highlighting the skills shortage as sustainable supply chain. visibility of future contracts one of the biggest barriers to a as a barrier to delivering a sustainable supply chain for sustainable supply chain their organisation. Sustainability in the 2 Randstad, October 2015. Supply Chain Survey 2016

8 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 9 The Public Sector Perspective

Less documented is the impact this There is a very clear need for the Supply chain skills shortage has already had on supply chain to boost its skills and management public sector projects. Of the public capacity to meet the public sector’s sector managers who responded asset, estate and infrastructure It is clear that the public sector to our survey, 35% rated the skills challenges and ensure high quality expects more than just successful shortage in their local area as project delivery. At the same time, the project delivery from their investment ‘bad’ or ‘severe’. public sector must also see the wider in their built environment. benefits for the local community. This shortage is already impacting on Effective management of the supply 67% of public sector participants delivery quality, with 85% of public chain is seen as a route for the public in our survey believe that using sector respondents saying there sector to deliver local economic local skills and suppliers is the had been some negative impact % benefits and social value.50% of of public sector most important element of a on the quality of workmanship 35managers rate the skills public sector respondents said healthy supply chain. It is obvious they received. As well as the extra shortage in their area that they would typically like to to suggest that a solution to this is costs of poor quality work, the skills as ‘bad’ or ‘severe’ see 50% or more local spend to drive further investment into local within 20 miles of each project. shortage is also putting pressure on Sustainability in the skills, but to have the confidence to local authority budgets, through the Supply Chain Survey 2016 However, 80% of public sector invest in training, local businesses rising cost of skilled labour. Currently respondents believe that the require greater visibility of future bricklayers in the UK can earn as public sector ‘needs to do more’ pipelines of public sector work. This much as £1,000 per week due to to engage with its supply chain. can only be achieved through greater the pressures of the skills shortage3. transparency around upcoming This was reflected in our survey, with projects and contracts. 80% of public sector respondents stating that the skills shortage had a direct impact on their ability to keep projects on budget.

3 Recruitment and Employment Confederation, May 2016.

10 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 11 The Supply Chain Perspective The supply chain serving the built environment is complex and diverse, and includes contractors, consultants, facilities management specialists, architects of varying sizes and specialisms, SMEs and micro-businesses.

Reliance on the Public sector spend across the built Forward visibility of upcoming public sector environment is critical to the continued projects represents a consistent success and growth of large parts of challenge for the supply chain, as Our survey engaged with The public sector remains one of the the industry, and indeed, the economy. well as the public sector. Of the suppliers who would define Tier 1 contractors most important clients for those who Therefore it is in the interests of both contractors and suppliers surveyed, themselves as ‘Tier 1’, ‘Tier 2’ Organisations that have a direct commercial relationship with provide built environment services the public and private sectors that 68% said they typically bid for and ‘Tier 3’. For the purposes of a public sector body and take a leading role in delivering a through the supply chain. However the supply chain has clear visibility of public sector work 6 – 12 months this research, we have applied project or service. They are the main contractor. the nature of the public sector has upcoming projects and contracts, in before a project or contract the following definitions: 1 changed as a result of the financial order to plan ahead. In short, the two starts, but as many as a third (33%) restrictions imposed since 2010; sides must come together to solve believe they should be able to bid and that has also impacted the the industry’s capacity challenge, so for public sector opportunities up Tier 2 suppliers supply chain. that efficient, timely and cost effective to 18 months before a project or Suppliers and subcontractors who have a direct working Of the businesses surveyed, 66% delivery can be consistently achieved. contract starts. relationship with Tier 1 suppliers. They support the main said that less than 50% of their Those who provide built environment contractor to deliver a project or service and may have work currently comes from the Tendering and bid services felt that the supply chain 2 been appointed on the recommendation of the client. public sector. This is a decline from is sufficiently aware of upcoming opportunities ten years ago, when the public sector projects and contracts – 47% of was larger than it is today, but 64% The procurement process through those who took part in our survey of businesses stated that the public which suppliers are appointed has felt that they were well informed Tier 3 suppliers sector funds more than a quarter of an influence on the overall health of about future public sector work their business, highlighting that the the supply chain. Our survey reveals Suppliers and subcontractors working for Tier 2 suppliers. opportunities. Only 20% felt poorly public sector is still a major source that frameworks, already an important They do not have a direct commercial relationship with informed about future work. of work for businesses across way of procuring work for the public of public sector % the public sector organisation. For example they may the country. sector, are increasingly popular with 85managers said quality of 3 be technical specialists, tradesmen, builder’s merchants, contractors and suppliers. work had been affected equipment supply firms etc. by the skills shortage 45% of the businesses surveyed Sustainability in the use frameworks for public Supply Chain Survey 2016 sector projects and contracts, demonstrating that the industry is responding to the growing public sector demand for frameworks.

12 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 13 The Supply Chain Perspective

Skills shortage Supply chain

The stark realities of the skills management shortage are being felt across all Our survey asked those who provide levels, with 58% of the contractors, built environment services for their consultants and service providers views on what the top three priorities we surveyed stating that the for a sustainable supply chain should skills shortage had a ‘negative be. Their response was revealing; impact’ on the quality of their The public and private long term operational stability was workmanship. their core aim (72%), minimising sectors must actively The financial cost of the skills crisis waste and recycling came in of suppliers believe% the work together in is also being felt, with 39% of second (63%), then supporting 75public sector needs to local economies (58%). encouraging more respondents saying that the skills do more to engage with shortage had a negative impact This echoes the view of the public its supply chain young people to train on their ability to keep to budget, sector, but above all else, suppliers with 1 in 10 listing this as a are looking for stability within the Sustainability in the in the industry and ‘critical’ impact on budget. economy and the industry, as are their Supply Chain Survey 2016 promote the wide array employees and supply chain partners A contributory solution to the shortage who require work during a downturn. A large proportion of the contractors, of attractive career is for the public and private sectors to consultants and facilities management actively work together in encouraging prospects available. Again, however, there are significant service providers who responded to more young people to train in the barriers to achieving these aims. 75% our survey, (75%) agreed that the industry and promote the wide of contractors and subcontractors public sector needs to do more to array of attractive career prospects cited inadequate coordination as engage with its supply chain. This available. Although our survey has one of their main obstacles, because is almost equal to the proportion of revealed the positive news that 69% of the level of resources this consumes. public sector managers (80%) who of companies who provide built Forward visibility of future felt the same. This demonstrates the environment services employ contracts was identified by 70% pressing need for both sides to work between 1 and 10 apprentices, of respondents, while the lack of together to understand the issues as many as 19% of supply chain sufficient skills within the industry is and resolve them for the good of the respondents said they did not considered a major barrier for more industry, through initiatives such as have an apprenticeship scheme. than half (55%) of businesses. % ongoing meet the buyer events that of contractors and 19subcontractors do not have Challenging perceptions about the But what makes a healthy supply reveal the long term aspirations for a industry and setting out the benefits of chain? The clear response to this town, city or region. an apprenticeship scheme apprenticeships will be vital and must from the industry was stability. 67% Sustainability in the be sustained in the years ahead. of respondents said stable pricing Supply Chain Survey 2016 was key, while 63% said stable employment patterns. Suppliers also cited time efficient delivery programs (46%), investment in skills and training (45%) and cost effective delivery programmes (41%) as vital in achieving a healthy supply chain.

14 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 15 The SME Perspective Small and medium-sized enterprises (SMEs) are the lifeblood of the UK economy and the construction industry, as well as making up the majority of the supply chain for public sector projects and contracts.

Many of the consultancies who deliver technical expertise on built Tendering Bid opportunities environment projects are SMEs, Frameworks are an important If stability is a major aim for while facilities management way for SMEs to get public sector operators in the public sector requires a strong network of small contracts and 42% of the SMEs supply chain, it is no surprise that local suppliers to support delivery. we surveyed said they received forward visibility of future contracts

work through public sector is important for SMEs looking to Reliance on the frameworks. The open and plan ahead, manage their business public sector high profile nature of frameworks to accommodate future workloads There are clear ongoing risks that increasingly provide opportunities and achieve the growth they seek. for SMEs in improving accessibility face a small firm that is dependent on However, of the SMEs who took to public sector work. This is a public sector projects – particularly part in our survey, 51% said high priority for Scape and other during a period of economic they did not feel well informed framework operators across the uncertainty and austerity. Over a about future public sector United Kingdom. quarter (26%) of the small and contracts. Currently only 7% of medium sized businesses that The benefits of having accessible SME suppliers are aware of we surveyed said that more than and transparent information about public sector projects more 50% of their work comes from future opportunities is important to than 18 months before they can the public sector. This is reflective SMEs, and despite the high value bid for the work, and almost a of the industry as a whole. threshold, over a third (36%) quarter (23%) of SMEs would of SMEs said they learned like to know about contract about new opportunities to opportunities up to two years bid for work through OJEU before the contract is due (The Official Journal of the to start. This major challenge European Union). for SMEs is one that could be addressed by the public sector Traditional means of securing and the industry through digital work still remain important, with means and coordinated meet 88% of SMEs receiving work the buyer forums. through invitations to tender or quote directly by a procuring body or client.

16 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 17 The SME Perspective Case Study The Scape National Major Works framework with Willmott Dixon prioritises work with SMEs from across the country. In Kent, for example, the framework procured DES Electrical, a Lancashire electrical contracting project management company, which is working to deliver considerable gains for Kent’s local economy.

Skills shortage The desire amongst SMEs to upgrade Supply chain Going beyond their current skill sets was very clear Our survey has revealed the scale of management Sean Egan, the company’s Managing from our survey, which revealed that the skills shortage within the industry Director explained: “We bring our 46% of SMEs said investment in Our supply chain survey has and the impact this is already having senior managers with us but use local skills and training was one of the consistently revealed the importance on the public sector and its ability to subcontractors and suppliers, and most important elements of a of stability for both the public sector deliver locally. 48% of SMEs rated the source our labour force through a healthy supply chain. and the contractors and service national skills shortage as ‘severe’. providers who support it. For SMEs local agency. We applied these same However, for SMEs, recruitment can principles throughout our work on The effect is most heavily felt among this is equally important, particularly be challenging and expensive, while Fairfield Pools and Leisure Centre in SMEs, for whom people and skills in relation to skills and employment. the shortage is having an impact on Dartford and Tiger Primary School in development are major financial 64% of SMEs said that stable suppliers’ ability to meet the needs Maidstone, which has enabled us to investments. 57% of SMEs said that employment patterns are the most of their clients. 15% of SMEs said go beyond simply giving back to the the skills shortage was one of the important element of a healthy the skills shortage had a ‘critical local community and be a real asset to biggest barriers to maintaining a supply chain. Stable employment impact’ on their ability to keep to the local economy as well.” sustainable supply chain. patterns occur when the supply chain budget and a majority (58%) said workload is more predictable and The figures are impressive. On the The problem is acute within regional there had been a negative impact subcontracting is less prevalent. Fairfield project alone, DES Electrical businesses, who find it difficult to get on the quality of workmanship as spent over £57,000 on local the right profile of skills they need in their a result of the skills shortage. To continue to deliver for the public labour, around £156,000 with local “We’ve employed about eight local area. 85% of SMEs said there was a sector and provide economic and “We’ve been working in SMEs are nevertheless leading subcontractors and about £99,000 on people for the sites, we’re recruiting skills shortage in their local area. social benefits, SMEs must have clear a wide geographic area the way in creating apprenticeship materials from various local suppliers. two more for the office and we visibility and a positive, long-term since the recession and opportunities, with 76% saying that relationship with their clients. They also spent £25,000 on local anticipate further local recruitment in they employed 1-10 apprentices. 77% of SMEs believe the public accommodation and nearly £7,000 in the near future as well as offering the opportunity to work This is positive and demonstrates the sector needs to do more to local shops and restaurants. an apprenticeship.” on a range of projects long-term view that SMEs take, but engage with its supply chain, Also CMB Engineering based in Wales The firm’s input into the area has also in Kent, including three the reality is that this may be driven by and it is clear that the government has contributed to the local economy. included sourcing supplies from local necessity in an age of declining numbers schools, has enabled us could do more to create the “We’ve been working in a wide companies and branches, employing to open a satellite office of skilled workers relative to capacity. right conditions for the public geographic area since the recession local subcontractors, and using local in Maidstone” sector and SMEs to collaborate. and the opportunity to work on a accommodation and amenities. “We’ve The advancement of digital range of projects in Kent, including had up to 16 rooms booked at local Matthew Clarke communications could help to three schools, has enabled us to hotels for the best part of the last two Regional Managing Director improve engagement with SMEs, open a satellite office in Maidstone”, years and we’ve rented several houses CMB Engineering % and a government-driven digital of SMEs said there is a said Matthew Clarke, the company’s for the same period”, said Matthew. 85skills shortage in their area programme could make information Regional Managing Director. “We all shop and eat out locally too.” Sustainability in the about opportunities much more Supply Chain Survey 2016 accessible and make it easier for businesses to connect with prospective clients and partners.

18 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 19 Conclusion Resolutions for the Public Sector and the Supply Chain In order for the public sector supply chain to deliver projects within strict financial constraints and also simulate local economic growth, this report proposes the following recommendations:

Greater forward visibility Greater collaboration More support for The importance of local Addressing the of project pipelines to between the public SMEs and the public spend and social value skills shortage of the support SMEs sector and supply chain sector on skills must be communicated future, today

SME engagement is vital in generating Greater public sector engagement Throughout the survey, the skills The public sector, by its very nature, It is vital that we ensure the safety of long term financial security in with suppliers, especially SMEs, will shortage resonated as one of the most must deliver greater social value the community when construction the UK. While the complexity of create a stronger supply chain and serious barriers to growth and efficiency through its supply chain and this is works are underway. contracts, high capital investment support efficient delivery. However, within the construction industry. While balanced alongside the increasing Gorse Covert School in Warrington and risk profiles create a challenging our survey has highlighted the current there has been a drive to increase pressure to deliver savings and welcomed Kevin Hutchinson environment for SMEs, our survey mismatch between what the public the number of apprenticeships, more achieve more with less. The supply from our Civil Engineering and has shown that if tenders were sector believes to be important needs to be done. We also need to chain is the vehicle through which Infrastructure partners Balfour Beatty, made public more than 18 months and what the industry believes is address the gender gap within the the public sector can deliver this https://youtu.be/x47a3SKj59c to conduct a safety talk and then in advance it would allow SMEs the necessary. The public sector values industry which is acutely pronounced. extra value and there are greater take part in a fun learning activity. time to plan ahead, form partnerships local investment and social value, but opportunities for those who This activity was delivered as a Both the public and private sectors and increase the likelihood of a the industry is more concerned with understand this key aspiration. In addition to providing important part of the recent Birchwood have a responsibility to ensure that successful bid. It would also allow for stability and pipelines of work. However, our survey has shown safety guidance, these school visits Pinchpoint project in Warrington, men and women from a diverse more stable employment patterns, the public sector needs to clearly are a great way to excite the next led by Balfour Beatty via the Scape Consistent and forward looking range of backgrounds are aware resulting in increased stability in the communicate the value of local generation in considering construction National Civil Engineering and communications through digital of the career opportunities across pricing of contracts across the whole spend and present tangible results as a potential career pathway. Infrastructure framework. means or open access meet the the construction industry through construction industry. which suppliers can relate to. buyer events will be critical inputs in doubling their communications efforts Frameworks offer some visibility addressing this situation. and deploying well-constructed ahead of time, and Scape’s education programmes. It should be a priority for framework framework partners have managers in the public sector to demonstrated that good supply chain effectively measure their engagement management can provide a healthy with SMEs and this is one of Scape’s and manageable pipeline for SMEs in “This valuable report thoroughly explores the Key Performance Indicators (KPIs) particular, allowing them to grow their across its frameworks. Over the past relationship between the private and public sectors businesses in a sustainable way. ten years, Scape has engaged with and how joining things up can bring about significant over 36,000 SMEs. change. It clearly demonstrates the need to prioritise skills and social value as sustainable outcomes from construction and infrastructure programmes and makes recommendations for removing some of the existing barriers facing the industry.”

Christine Townley Construction Youth Trust

20 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 21 A Word from the Industry Case Study “This report lays bare the challenges, but also the opportunities, for both the Select and the West of Scotland public sector and the industry. Stability and sustainability are absolutely vital Housing Association for both sides of the supply chain equation, and collaboration is the key to achieving them. Now the priority must be to push ahead with measures that will drive change – greater engagement, increased education and more long-term planning to boost local economies and deliver for communities.”

Mark Robinson, Scape Group, Chief Executive

“This new and exciting “I am extremely proud of Willmott Dixon’s “Scape’s research reveals a widespread project has already helped achievements through our partnership focus on sustainable construction; that with Scape; our shared values have means supporting local businesses, to improve our business. allowed us to focus not only on offering inspiring a diverse group of talented Since work began we efficient and cost-effective solutions but individuals into the sector and ensuring have employed more also on adding lasting value to the local the future demand for skilled labour is staff and built an even communities we work in. Our common met. We are committed to delivering focus on SME engagement and this as part of the Scape framework.” stronger relationship growth has seen us set and achieve challenging targets Dean Banks, with Carillion through the for local spend. We are not complacent though and will Balfour Beatty, Scape framework. News continue to set a high benchmark that I hope will inspire Managing Director of more work has enabled other companies in our sector as we all use our economic influence to drive growth in the local supply chain.” us to think about future for their tenants in Glasgow, and with plans for the business Rick Willmott, Trusted Partner Willmott Dixon, just 6 weeks from initial meeting to and we are excited about Scape Group’s National Facilities Group Chief Executive starting on site, it was essential to have Management framework, includes entering the next phase a reliable, local supply chain partner Select, a multi-trade contractor, who are in this relationship. We to help complete its first commission working with Carillion, the framework under Scape. are currently working partner, to support the delivery of with Carillion to develop “To generate local employment, “This research offers important planned maintenance services for social The works included replacement their value added plan of kitchens, bathrooms and boilers boost local economies and help us insight into the benefits of working housing provider, the West of Scotland for clients and we’re to engage with the communities in collaboratively with local suppliers Housing Association (WSHA). to around 230 residential housing which we work, we’ve set tough to create a long-term, sustainable units in Glasgow. With a large team of also collaborating on Over many years, Carillion and Select targets to work with local suppliers supply chain. Kier is committed to skilled tradespeople, Select were first a programme of work have forged a close working relationship in delivering work under the Scape working with local businesses and choice as a supply chain partner, and placements, mentoring as a trusted supply chain partner, National Facilities Management suppliers in the communities where they were only too willing and able to and apprenticeships for framework. With a supplier spend we work, which spans projects sharing a dedication to delivering respond to the challenge. Since the of around £3 billion, Carillion firmly believe our supply nationwide from Aberdeen to Truro. Over the last five innovative solutions to challenges young people. We are project began, both the clients and chain partners can help us to make a real impact in years working with Scape, we have delivered 70 percent faced by public sector organisations very excited about the tenants have been very pleased with supporting the UK economy. But, as this report has of project spend within 40 miles of site, with almost half of in Scotland, including a number of how the work has progressed. So next three years of the shown, they need our continued support in order to be our workforce living within 20 miles of our projects, clearly leading social housing providers. able to do so. Using these insights will therefore enable demonstrating our commitment to supporting the local much so, that this relationship has Scape framework.” us to look at the practical ways in which we can all work economy and the valuable role that a key framework can When the WSHA appointed Carillion also helped Carillion to secure more Stuart Currier together to assist the supply chain in achieving success.” play in facilitating local spend and social value.” to carry out a planned maintenance work through Scape with the West of Managing Director contract to improve housing stock Scotland Housing Association. Select Rob Holt, Peter Young, Carillion, Managing Director, Kier, Carillion Community Services Executive Director

22 SUSTAINABILITY IN THE SUPPLY CHAIN SUSTAINABILITY IN THE SUPPLY CHAIN 23 For press enquiries contact Instinctif Partners: 0207 427 1408 [email protected] [email protected]

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