Profiting from Integration - PowerPoint PPT Presentation

1 / 17
About This Presentation
Title:

Profiting from Integration

Description:

Move towards integrated project insurance. Equitable Protection for Consultants ... Lead initiatives for educating future professionals ... – PowerPoint PPT presentation

Number of Views:41
Avg rating:3.0/5.0
Slides: 18
Provided by: www1F2
Category:

less

Transcript and Presenter's Notes

Title: Profiting from Integration


1
  • Profiting from Integration
  • Martin Nielsen

2
Profiting from Integration
  • Reacting to the changing market
  • Advocacy
  • Being treated professionally and equitably
  • Leading to strengthening our industry

3
Why is this important?
  • From a UK perspective -
  • Construction employs 2.8million people
  • Contributes one twelfth of UKs GVA
  • Equivalent to 200 billion (twice the GVA
    produced by energy, automotive and aerospace
    sectors combined)
  • Generates 20 billion in exports
  • The output of the industry accounts for 70 of
    the countrys manufactured wealth

4
More good news?
  • Minister says its importance for Government goes
    way beyond its economic contribution!
  • Construction is vital for the delivery of good
    quality public services
  • Construction features in more than half of the 30
    public service agreements set out in recent Govt
    spending review
  • Improved outcomes for users
  • Enhanced standards of living
  • Lower greenhouse gas emissions

5
But.
  • Industry is highly fragmented
  • 270,000 active enterprises
  • Over 90 of 180,000 contractors employ fewer that
    10
  • 130 companies produce 75 of industry output by
    value
  • Over 20,000 consulting firms, employing 225,000
    people
  • No UK construction firm in the worlds top 20

6
Recent Construction Industry Reforms
  • Sir Michael Latham Constructing the Team (1994)
  • Sir John Egan Rethinking Construction(1998)
  • Sir John Egan Accelerating Change (2002)
  • Martin Nielsen Profiting from Integration
    (2008)

7
(No Transcript)
8
Definition Business Case
  • Dependent on your perspective
  • Integration is about
  • Improving efficiency
  • Eliminating waste
  • Raising safety standards
  • Reducing project delivery risk
  • Strong evidence that integrated working delivers
    discernable and material benefits to each
    contributing party

9
Barriers to Integrated Working
  • Industry culture
  • Capability capacity
  • Procurement methods
  • Contracts
  • Payment systems
  • Early engagement with the supply chain
  • Understanding the balance between cost and value
  • Appreciating equitable distribution of risk

10
Equitable Contracts
  • Address the huge and unnecessary proliferation of
    bespoke contract forms -
  • Insist on appropriate standard forms that align
    interests
  • Improve understanding of how collaborative
    principles are embodied
  • Secure early participation of key suppliers
  • Provide fair and prompt payment and reward
    arrangements
  • Move towards integrated project insurance

11
Equitable Protection for Consultants
  • Standard contract forms
  • Sensible duty of care provisions
  • Non-recourse integrated project insurance
  • Reasonable liability caps
  • Removal of insolvency risk
  • Proportionate liability provisions
  • Elimination of performance bonds and retentions

12
Member Firms Acting Together
  • Become the clients trusted advisor promote
    Selecting the Team
  • Stand firm against bespoke contracts
  • Insist on equitable contract terms

13
Member Associations Educating the Industry
  • Promote wider understanding of the importance of
    equitable contracts including
  • Consultants Duty of Care
  • The relevance of liability caps
  • The links between PI Insurance and Limit of
    Liability
  • The meaning of proportional liability
  • Lead initiatives for educating future
    professionals

14
FIDIC - Making a Difference
  • Build on the success of FIDIC contract adoption
    and Qualitybased Selection methods, adapt and
    adopt
  • Selecting the Team
  • A Guide to Partnering Workshops
  • On-line Integration Toolkit

15
FIDIC Making a Difference
  • Talk to national governments and campaign against
    bespoke contracts
  • Actively promote the use of FIDIC contract forms
  • Actively campaign in relevant markets for
  • Elimination of Fitness for Purpose requirements
    from consultants duty of care
  • Introduction of aggregate liability caps in
    consultants contracts
  • Elimination of requirements to provide
    Performance Bond
  • Elimination of consultants payment retentions

16
(No Transcript)
17
  • References
  • UK Construction Industry Council web site
  • Profiting from Integration
  • www.cic.org.uk/newsevents/reports.shtml
  • A Guide to project team partnering Second edition
    - April 2002
  • A Guide to Partnering Workshops - August 2008
  • Selecting the Team - August 2005
  • www.cicshop.co.uk/acatalog/Books.html
Write a Comment
User Comments (0)
About PowerShow.com