Colin Smyth

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Thursday 3 April 2008
Constructing Excellence Supporting the Industry
to Deliver Improved Performance

• Colin Smyth
• Development Manager

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CEni

• Centre of Excellence based at UU
• Funded by DFP initially for a 3 year period
• Successor to Rethinking Construction and the
  Construction Best Practice Programme
• Driven by the industry supported by the public
  sector
• Public Launch of CEni 17 November 2007
• .. Hats off to the Construction Industry
  www.dfp.gov.ni
• Our website www.constructingexcellence.ulster.ac.u
  k

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CEni Approach

• Best Practice, Innovation Best Value
• Independent advice and information to private
  sector clients
• Delivering on the public sector interest
  (industry capacity to deliver Achieving
  Excellence)
• Services for consultants contractors
• Source training opportunities
• Performance Improvement

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CEni Projects 2008/09

• Government Client Construction Maturity Review
• Government Client Performance Measurement (KPI
  analysis)
• Northern Ireland Housing Focus Group
• Modern Methods of Construction (Conference
  Forum)
• Modern Procurement Training Programme
• Exemplar Projects Showcase
• New Demonstration Projects

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Historic industry problems

• Latham, Levene Egan Reports
• Construction on Time - 66 of central government
  projects exceed their completion date by up to
  60
• Construction Cost - 75 of projects exceed their
  budgets by up to 50
• Quality of Construction - design specifications
  over prescriptive and restrict the potentials for
  VfM solutions through supply chain innovation
• Quality of Output - high levels of waste and
  inefficiency
• Health and Safety - 44 deaths and 500 severely
  injured in the last 10 years

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Public Sector Client Programme

• Performance Measurement Continuous Improvement

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Government Construction Client
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Background to PSC Programme

• NAO Improving Public Services Through Better
  Construction Report published 14 March 2005
• Achieving Excellence in Construction Strategic
  Targets
• Potential for further VfM savings from
  application of good practice
• Action which departments need to take to improve
  their construction delivery performance
• Recommendations
• The Annex (The Maturity Grid)

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NAO Recommendations (1)

• Longer term funding and programme planning
• Strengthen leadership and develop management
  capability
• Engage the Gateway Process seek independent
  advice and challenge
• Use Sustainability Action Plans
• Decisions based upon Sustainable Whole Life Value

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NAO Recommendations (2)

• Transparent tender criteria influence supplier
  behaviour
• Maintain competitive tension in framework and
  partnering arrangements
• Encourage collaborative working
• Post completion and occupancy performance reviews
• Develop strategic targets for sustainable
  construction

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NAO Recommendations (3)

• Coordination and leadership to identify good
  practice and drive forward improvement
• Support for organisations doing infrequent
  construction projects
• Find appropriate tools and support to improve
  decision making
• Share good practice across the public sector and
  set performance benchmarks

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The Annex

• Maturity Grid for Departments to gauge
  construction management capability
• Self-assessment tool
• Characteristics of Competence (Column 1)
• Stages or Levels of Maturity (Columns 2 - 6)
• 27 criteria subject to assessment
• The emphasis is to put departments on a path
  to continuous improvement

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ACHIEVING EXCELLENCE 2ND GCCG ACTION PLAN -
MATURITY MATRIX

March
2007 Department/Organisation Name Health
Estates
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In our initial assessment

• Initial findings from interviews indicate
  completion of the matrix has been based upon a
  subjective view
• The determination of the level of maturity must
  be objective, evidence based and representative
  of the whole department
• The terminology used can be related back to the
  AE in Construction Procurement Guides
• The Grid can be broken down into 8 key areas
• Whilst all characteristics of competence have
  importance are some more important than
  others?

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8 Key Areas for Review

• Strategic Objectives
• Strategic Benefits
• Programme Budgets
• Programme Planning
• Programme Management
• Programme Project Organisation
• Procurement
• Performance Improvement

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Performance Measurement
Figure 1 5-6-10 Model (Rethinking Construction
2003)
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Rethinking Construction KPIs
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GCC Group Approach

• Establish principles of Performance Measurement
  KPI Sub Group
• Select appropriate headline indicators
• Procure a system to record data
• All Clients use the system
• Analyse data and use as a basis for continuous
  improvement
• Drive performance improvement through
  benchmarking and reporting

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GCC Group Indicators

• 8 Rethinking Construction Indicators
• Omit Productivity Profitability
• Add two Environment Indicators Product and
  Service
• All capital projects gt1m
• Introduction of additional indicators Housing,
  Respect for People, etc
• Twice yearly reports to Procurement Board

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Thursday 3 April 2008
Constructing Excellence Supporting the Industry
to Deliver Improved Performance

• Colin Smyth
• Development Manager