Constructing Excellence Annual Report 2007 © Constructing Excellence. Requests to reproduce any part of this document should be sent to Constructing Excellence. Published: September 2007. Front cover photographs (from top, clockwise) courtesy of: Lemon Tree House – supplied by William Sutton Homes, The Oxford Castle Malmaison Hotel – supplied by the Osborne Group, NHBC. Constructing Excellence, Warwick House, 25 Buckingham Palace Road, London SW1W 0PP T 0845 605 5556 E [email protected] W www.constructingexcellence.org.uk Constructing Excellence is committed to reducing its carbon impact. Foreword Improving industry performance The last year has been one of significant change as we finished the transition from DTI grant Constructing Excellence is the leading corporate membership organisation dedicated to funding to a thriving membership-governed organisation which also manages government improving performance and showcasing best practice across the UK construction industry. Our programmes and commercial commissions. vision is to inspire a demonstrably better built environment, with members that include clients, contractors, consultants, specialists and suppliers across the housing, buildings and estates and DTI was delighted with the value we gave them under the prior infrastructure sectors. As such, we provide a unique bridge between industry, clients, arrangement, but on 31 March 2007 we reached a major milestone in the history of the industry change movement, becoming an independent and government and the research community at national, regional and local levels across the UK, sustainable organisation able to support a range of customers and supported by a network of 12 regional and national partners and 42 local business clubs. stakeholders with quality objective advice. Of course this is not just a time of change for the organisation but the Constructing Excellence is the custodian of the industry change agenda industry as a whole. If we look back over the last ten years or more since the initiated by the Latham and Egan reports of the mid-late 1990s. A number of Latham and Egan reports in 1994 and 1998 respectively, we have seen cross-industry bodies and initiatives were set up at that time, funded either enormous progress. For example partnering and collaborative working are by government or by industry, including the Construction Best Practice commonplace on the larger construction programmes, as is early Bob White involvement of the supply chain, and KPIs are widely used in all sectors. Programme, Movement for Innovation, The Housing Forum, and Be Chairman Rapid progress is being made, particularly in the field of environmental (previously the Reading Construction Forum and Design Build Foundation). sustainability, but this will be difficult to maintain if we do not continue to All these bodies and others now form Constructing Excellence, a powerful, push the basic essentials of collaborative working and integrated supply and influential organisation for improving the built environment. chains, where procurement is by value and not lowest cost, and the supply The Old Wood Yard, Hargham Our current work programme is based on four core themes: Integration & chain feels ‘safe’ enough to concentrate on adding value for both the client Collaborative Working, Sustainability, Value, and Leadership & People. This and the team. work is delivered for three types of customer: our core membership forums, Our task is far from finished. Inevitably the goal posts have moved, and the government customers and commercial clients. industry faces new challenges from different drivers for change which were neither evident nor established before the turn of the century. These confirm Highlights from all three areas of our work are presented in the growing relevance of the built environment, including societal issues this report, all showing the value added by our evidence- such as climate change and sustainability, as well as skills shortages and the based approach using action research, demonstrations, increased power of the consumer. The activities of the organisation then are Don Ward measurement, guidance, networking and influence. just as relevant today as they were a decade ago and our team is Chief Executive determined to find solutions to securing the organisation’s long term future. Courtesy of Metropolitan Housing Trust We believe we are well placed to do this with our 250-plus member organisations in the lead, out at the forefront of innovation and best practice. Our priorities in the year ahead are to deliver ever-better value for members and to grow our membership as a result, and to seek to make a difference with smaller firms and at a regional level, doing all this whilst keeping our finances on a sustainable basis for the future. This report highlights some of our achievements in the last year, and shows us to be a strong position thanks to the quality of engagement from our members, our customers, our partners and our staff. To all of those who continue to support Skanska Engineers us in improving industry performance and delivering a demonstrably better built environment, we say THANK YOU! Bob White, Chairman, and Don Ward, Chief Executive 2 3 Successful performance Membership overview The funding of our work is changing, with core membership growing as well as other government programmes and In March 2007 our membership passed 250 for the first time. Our members are at the heart of everything we do, from setting the commercial business all expanding. This year was another successful year of delivery. change agenda, research and innovation, measurement and benchmarking, guidance and training, networks and events, demonstrations and showcasing and leadership and influence. Improving value for members Income this year Membership We continuously strive to improve by listening to members’ specific requirements Income was £5.1m compared with £5.4m in 2005/6. Membership is growing by one new member per fortnight. and acting accordingly. Improvements this year included: £m • Members Induction Day. Held three times a year to give new and existing Members 6.0 250 members the opportunity to speak to our experts to learn more about what we do and what we can offer. 5.0 Other 200 Highways Term • Membership Pack. Also available on-line, this includes full details of our Maintenance Association products and services, how to get full benefit from membership, details 4.0 on clubs & regions, future events and contact details and much more. Commercial (gross) Construction Clients' Group Richard Ward, Partner, Head of 150 • A certificate to go in members’ reception areas confirming their Construction & Engineering, 3.0 Other Government programmes Housing Forum membership of Constructing Excellence. Eversheds 100 • Our second annual Members’ Convention in September informing “One of the easiest decisions I have 2.0 DTI core funding Buldings and Estates Forum members of our progress in the preceding year and asking them to shape had this year has been that of renewing our membership with CE. 50 the change agenda for the coming year. 1.0 Membership Group members The advantages of membership have • The number of working groups or similar within Constructing Excellence has far exceeded our expectations and grown as our members highlight further areas for change, and there are now include: Getting a great understanding 0.0 0 2005/6 2006/7 2004/5 2005/6 2006/7 over 20 across the organisation (see page 20). of the key issues facing the industry and very importantly participating in • More events around the country and not just in London, for example the taking those issues forward which is Housing Forum’s regional conferences (see page 18), and ‘Question vital to us in ensuring that our advice Where the money goes Outputs Times’ in Leeds and Bristol. to our clients on procurement takes into account current thinking; Being • Appointment of internal Key Membership Managers to look after individual As a not-for-profit organisation, any surplus that we make is invested back Our productivity is growing across all our core activities. involved all around the country in all members. These managers are always delighted speak to them about their into research or new products and services. the regions where we have offices specific needs. 200 which for Eversheds as a leading national business is critical; Being 180 involved at all levels, with over 70 construction lawyers of different levels Overheads 160 27% Staff costs of experience and different interests, 33% 140 we have found very wide interest across the team in local clubs 120 2005/6 regional events and high level 100 100 100 100 100 100 100 national groups which is great in 2006/7 involving all the team. What we have Marketing 80 2.5% really enjoyed is working with the 60 Constructing Excellence people who are full of ideas and welcome active 40 Consultants members’ participation.” 9.5% Projects 20 events delegates Demonstration press coverage press coverage web hits 28% attending Project - quantity - quality case studies 4 5 Case Study – Colchester Garrison The aim of the Colchester Garrison project was to provide modern serviced accommodation, comprising a total of 3000 units, for the 16th Air Assault Brigade in Colchester. The development released land for housing and commercial uses, and provided new public access to recreational land and facilities. The public were involved in the project from an early stage through open workshops and debates and this led to a wealth of ideas for the site. The main contractor, Sir Robert McAlpine, registered the site to the ‘Considerate Constructor Scheme’ which helped to enhance community relations. The adoption of an offsite solution led to reduced vehicle movements, less tradesmen onsite and less waste, and was driven by the close working relationship between the main contractor and offsite supplier. The campus style layout of the Garrison leaves room for future expansion and the re-invention of the ‘traditional’ military layout has worked well. All the new buildings maximise the use of natural ventilation and daylight and incorporate high levels of Core Themes insulation.