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1330 Infrastructure in the New Era Executive Summary Alix Newbold May 11 1

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1330 Infrastructure in the New Era Executive Summary Alix Newbold May 11 1 Headline Lorem ipsum dolor sit amet, consectetur adipiscing elit. Pellentesque fringilla pellentesque eros nec facilisis. Nullam elementum mauris ut urna laoreet faucibus nec nec urna. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Fusce non velit urna, nec pharetra tellus. Proin eget varius sem. Etiam vestibulum porttitor purus, in tristique massa varius elementum. Vivamus molestie tempus iaculis. Fusce vestibulum ligula nec nisl laoreet vehicula. Curabitur mollis massa eu ligula semper dignissim. Nullam in lorem nibh, a viverra sapien. Praesent ornare purus nec libero pellentesque eu volutpat eros placerat. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Aliquam et nulla non sapien tincidunt gravida ac iaculis eros. Suspendisse potenti. Suspendisse sem dolor, tempor eu luctus sed, adipiscing in nisi. Pellentesque at ligula ut diam pretium fringilla vitae nec velit. Sed sed dolor tempor mauris porta luctus. Ut purus libero, varius ac feugiat eu, pellentesque nec sem. Nullam sed tincidunt dui. Infrastructure in the New Era Constructing Excellence and Pinsent Masons LLP Acknowledgements This report has been written by a team and is . David Ferroussat, Programme based upon the views and opinions of a wide Commercial Manager – Terminal 2, range of practitioners within the infrastructure Heathrow Airport Limited sector who attended four roundtable discussions, . Mark Hagger, Programme Manager, chaired by Martin Rowark. Environment Agency . Andy Haynes, Head of Commercial, Author Team: Network Rail . Ken Owen, Commercial Director, . Richard Laudy, Head of Construction Sector, CLM London 2012 Pinsent Masons LLP . Andy Quincey, Director of Group . Andrew Roach‐Bowler, Procurement Procurement, Transport for London Manager – Stations, Crossrail Limited . Steve Rice, Programme Director, . Graham Robinson, Global Business Defence Infrastructure Organisation Consultant, Pinsent Masons LLP . Beth West, Head of Commercial . Martin Rowark, Head of Procurement, Procurement, London Underground Limited Crossrail Limited . Don Ward, Chief Executive, Government and Academic: Constructing Excellence . Michael Ankers OBE, Chief Executive, Workshop Leaders: Construction Products Association . Dr Nuno Gill, Director, Centre . Alan Couzens, Project Leader, Infrastructure for Infrastructure Development, UK, H M Treasury, UK Government Manchester Business School . Steve Livingstone, Programmes Controls . John Russell, Project Director, Infrastructure Director, BAA PLC UK, HM Treasury, UK Government . Paul Morrell, Chief Construction Advisor, . Simon Lawrence, Project Director, Department for Business Innovation Infrastructure UK, HM Treasury, and Skills, UK Government UK Government . Mark Reynolds, Deputy Chief Executive, . Denis Walker, Head of Construction Sector, Mace Limited Department of Business, Innovation and . Steve Waltho, Global Head of Infrastructure, Skills, UK Government Davis Langdon An AECOM Company . Keith Waller, Project Director, Infrastructure UK, HM Treasury, UK Government Infrastructure Clients: Infrastructure Consultants: . Martin Buck, Commercial Director, Crossrail Limited . Malcolm Bairstow, Partner, Ernst & Young LLP . Mike Cornelius, Head of Procurement . Madoc Batcup, Managing Director, Synaps & Commercial, Olympic Delivery Authority . Edwin Bergbaum, Director, . Bob Dixon, Quality Control Manager, EDF Waterman Group PLC 1 . David Bucknall, Chairman, . Doug Gillespie, Director, Mace Group Limited Rider Levett Bucknall . Chris House, Major Projects Director, . Jim Cook, Director of Ground Engineering, Aggregate Industries PLC Buro Happold . Chris Hughes, Managing Director, . Paul Dyson, Director – Infrastructure, Morgan Sindall Tunneling Turner & Townsend plc . Peter Mason, Business Development Director, . Sion Edwards, Director, Mott MacDonald Balfour Beatty Civil Engineering Ltd . Chris Ellis, Operations Director ‐ . John Matthews, Managing Director, Infrastructure, Jacobs EMCOR Engineering Services Limited Tom . Asim Gaba, Director, Arup . Terry Nea, Commercial Director, . Shy Jackson, Senior Associate, Mace Plus Limited Pinsent Masons LLP . Steve Nelson, Finance Director, 4Projects . Kevin Joyce, Senior Associate, . Tom Paul, Director, Kingspan Limited Pinsent Masons LLP . Nigel Roberts, Commercial Director, . Neal Morris, Partner, Pinsent Masons LLP Balfour Beatty Civil Engineering Ltd . John Mullee, Partner, Pinsent Masons LLP . Martin Rogers, Executive Board Member, . Rowland Nicholson, Senior Construction Royal BAM Group Manager, Fluor Limited . Declan Sherry, Operations Director, McGee . Kate Rees, Partner, Pinsent Masons LLP . Steve Sparks, Sales director, 4Projects . Murray Rowden, Managing Director – . John Stack, Managing Director, Infrastructure, Turner & Townsend plc J Murphy and Sons Ltd . Steve Rowsell, Director, RowsellWright . Neil Sutehall, Business Strategy Manager, . Jose Sirera, Principal, Gensler J Murphy and Sons Ltd . Michael Spencer, Partner, EC Harris Stuart Togwell, Commercial Director, Wates Construction Limited . Dan Tain, Partner, Pinsent Masons LLP . Richard Vertigan, Chief Executive, 4Projects . Malcolm Taylor, Programme Director, AECOM . Paul Whitmore, Commercial Director, Morgan Sindall Group PLC Infrastructure Supply Chain: . Andrew Wolstenholme, Director of . Rod Bennion, Chairman, Innovation, Balfour Beatty PLC McNicholas Holdings . Chris Boothroyd, Commercial Director, The team is grateful and acknowledges the Vinci Construction UK Limited support of other organisations and people who have supplied material, contributed to production . Patrick Bruce, Group Commercial Director, and provided expert views. Costain Group PLC . Steve Fox, Chief Executive, BAM Nuttall . Steve Fullen, Commercial Director, Kier Construction 2 Executive Summary The current economic crisis has changed the landscape for all involved in the UK construction industry. No longer able to rely on a healthy economy for continuing prosperity companies have to rethink their approach to business and consider how they will survive the recession and maximise the opportunities as we emerge into a new economic and political era. In October 2009, the Constructing Excellence Vision report ‘Never Waste a Good Crisis’, identified that the infrastructure sector had made considerably A vision for ‘Infrastructure in the New Era’ better progress than many other sectors of the emerged from a series of key roundtable construction industry in its attempts to reform discussions. Significant common ground also and improve since the publication of the Egan emerged on an action plan for change and Report over a decade ago. improvement to the way in which infrastructure assets are procured, delivered and managed. This report seeks to understand the key drivers for this change and presents a manifesto for The vision is an infrastructure sector where clients further improvement in the infrastructure sector clearly understand their needs, build on those – a key part of the construction industry. needs to define their requirement in terms of business outcomes and select and work closely Constructing Excellence and Pinsent Masons set with integrated supply-chain teams that develop out to engage with the clients, consultants and and manage infrastructure assets over their supply chain contractors, specialists, product lifetime, to deliver that requirement, supported by manufacturers, suppliers within the infrastructure clear commercial and governance structures. sector to examine the approach being taken towards collaborative working and to understand ‘Intelligent clients’ have a holistic view on the their views to implementing change to the way in core needs of their own business and long-term which infrastructure assets are procured, development programmes that achieve those delivered and managed, particularly in the needs. They have a focus on the performance current economic climate. of infrastructure assets over their lifetime, rather than a narrow focus on projects and capital cost. In undertaking this work, we defined the Intelligent clients are also lean, but bring together infrastructure sector to encompass both in-house inter-related capabilities, including economic and social infrastructure. expertise in procurement and contracting strategy, design and technological know-how, There was a mutual exchange of ideas with capital project and programme management Infrastructure UK throughout the process of our as well as facility management and asset dialogue with all parts of the infrastructure sector management capabilities, knowledge of that informed the development of the project finance, understanding of alternative Infrastructure UK Implementation Plan. models of programme governance, leadership and stakeholder management skills. 3 It is recognised that not all infrastructure Constructing Excellence will work with clients have yet fully developed their in-house Manchester Business School and others to capabilities and developed the inter-related promote collaborative working in the capability as intelligent clients of the future. Many infrastructure sector and to encourage clients have already embarked on change commercial alignment, particularly through programmes that will develop their capability for innovation in funding, contracting and the future, including BAA and the newly formed procurement models. Defence Infrastructure Organisation, which provide models for other clients. The water Compete for Value infrastructure sector and some
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