Construction & Asset Management Programme
By working in collaboration with local authorities, the Programme aspires to develop effective contracting and asset management processes around local government 'Built Environment' activity. The aim is to release significant cashable efficiencies and to optimise sustainability and well-being benefits for residents and communities.
Building on Culture Change in the Construction Industry
The construction industry has already been subject to major changes over recent years since "Rethinking Construction" principles were recommended in the Egan Review in the early 1990s.
There is a perception that client/contractor relationships have improved overall, but there are several issues now facing local authorities in procuring Construction projects, including:
- Skills shortages
- The need to seek efficiency savings
- The reducing number of contractors as a result of company mergers
- The effect that this has on competition for projects.
The Programme will engender collaboration and joint working (and joint risk sharing) as well as robust partnering arrangements which are critical to developing the creative, innovative and sustainable solutions to meet these issues.
Building in Sustainability
Sustainability and environmental factors are significant issues for the Construction industry with 'Whole Life Costing' replacing the view that a building value is that of the amount of the initial construction cost.
Recent developments have concentrated on Waste from construction sites. New developments often replace existing structures and the materials from the old buildings can be reused in the new site.
30% of construction spend is on council's and FRS's own buildings. The remainder is via authorities' Development Control powers. There is a clear opportunity for the public sector to ensure that the construction activity under its own control can be used to fulfil part of the objectives of sustaining local economies and providing opportunities for direct employment or to the supply chain.
Meeting Future Challenges
Local government clients must also adapt to changing market conditions and to the needs of an expanding range of stakeholders. For example a brand new school may now have to meet the requirements of educationalists, as well as those with special needs and those of community groups.
Other challenges include encouraging skills development in the workforce, commissioners and designers; improving how authorities engage with the market through common documentation, improving knowledge of spend patterns and exploiting opportunities for collaboration.
The construction industry also faces financial pressure from CSR07 which identified a need to achieve net cash savings of £4.9bn by 2010-11. Business Improvement and Collaboration (BIP) is expected to provide £1.8bn, and smarter procurement to deliver £2.8bn. It is also considered that better management of local authority assets can realise savings of £300m.
The Programme aims to help authorities to face and address all of these pressures and challenges.
Programme Contacts
Programme Manager: Peter Schofield
Telephone: 07801 600 745
Email: Peter.Schofield@northeastcouncils.gov.uk
Local Authority Sponsor/Programme Board Chair:
Amanda Skelton, Chief Executive, Redcar & Cleveland Borough Council
