Evolution Sheets for Five Minutes Five Things

Evolution Sheet Seeing the Bigger Picture Four trends emerging to shape construction future • • • • •

Society and work Most pressing issue is urban crisis and the housing crisis Pressing health and comfort needs. These need new space, new services Illness and the aging population: COPD Dementia Longer Care for the elderly Aging workforce: Master of it all approach: Stops innovation.

All require funding: In an age where we already have stretched finances ‘Required is not just productivity improvements but a new form of more social contract between construction and govt + society’ • Markets and customers • 65 % of the next decades new work opportunities will exist in emerging markets • Annual investments of 1 trillion are predicted to be required for 20 years t meet infrastructure shortfall Industry must mobilise to get into the these markets but not at the expense of home markets ‘Profits should flow back in as investment into not just be extractive Legislation for Greater financial reserves for construction companies should be a target. Certain the Govt. does not want another Carillion

• Sustainability and resilience • • • •

No 1 consumer of raw materials is the construction industry 50% of solid waste is produced by the construction industry 30% of greenhouse gases are attributable to buildings 3x as many natural disasters as in 1980

We must also consider socio-economic sustainability. People want tenure in their working lives, our economy needs tax payers, and companies want a flattening out of the cyclic nature of construction • Politics and regulations • • • • •

Austerity and Brexit: Disruptive events Corruption and criminality Multiple procedures are required to secure permission to advance into construction Local Authority Monopolise approvals typically: Certainly in development controls Impenetrable planning documentation and policy: No design codes!:Think Germany: Much better

Evolution Sheet Making Effective Decisions The construction industry has unique and individual characteristics, which have an impact and bearing on, the decision making needed in delivering transformation • • • • • • • • • • • • •

It’s output is a unit of one No prototyping!

Only industry where the final product is by and large constructed at it’s final point of rest Very conservative appetite for risk both on the client and contractor side Highly fragmented industry with high proportion of SME ‘nobody wants to be a guinea pig” Complicated and long contracts: and: adversarial contract types. Restricts innovation Tendency to move forward into contract with ‘immature information and even worse immature project definition’ Tendency to favour lowest tender: Creates cost increases and claims Low profitability and hence low capitalization Volatile work pipeline: Very cyclic Unstable and peripatetic workforce Very little aftercare

Evolution Sheet Leading & Communicating Will be required from both industry and the Govt. side.

Leadership likely be needed in: Forming partnerships and establishing a cross collaboration in industry Agreeing mutual standards Improved and collaborative marketing Business model innovation Training Culture change and incentives to do so Implementation strategies for innovative collaborative contract types Front end cost consciousness and monitoring Change in the management of subcontractors and suppliers (fairness and openness and transparency in pricing) • Smart hiring • • • • • • • • •

Communication strategies must; • • • •

Elaborate a common framework for project management Help create and establish and Industry wide marketing and branding strategy Be based on effective interactions between the govt, public sector and industry Create co-ordinated communications with civil society

Evolution Sheet Collaborating & Partnering Public Procurement • Funders, customers and industry should be chartered to reach common goals: Policy might do more than signpost this • Collaboration between financial institutions and industry must work together to create reliability in funding • Prudential principles should underpin partnerships and funding might be assured in the long term through a Govt. bond based approach • Contract types should suit innovation and partnerships should promote balanced risk sharing • There should be cross industry collaboration across the value chain • Sharing of best practice should be a requirement • Standards across the industry should be mutual

Evolution Sheet Delivering at pace • Companies must be at the spearhead of transformation • Collaboration on R&D should be encouraged and incentivised • Technology and tools must advance to bring productivity gains • Safety must be upheld • Innovation should be backed and encouraged • Participation with communities must be established to create consensus and de-risk delays though objection. This links to marketing • Modular standardized and pre fabricated components should be more widely used • Regulatory process and sign off should be dead lined to ensure rapid project starts and aligned to permit this • Both advanced traditional materials and newly emerging materials should be used whist products are waiting to become market ready • Both advanced traditional materials and newly emerging materials should be used