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Construction Procurement

This section includes key recent policy documents and case studies, with particular emphasis on the issue of achieving value for money.

(Please note: links on this page will open the page in a new browser window)

List of Resources:
 
Works Reform Business Solution Plan (PDF)
Building Management and Works, Department of Treasury and Finance, 2009
Government of Western Australia
This paper outlines proposed reforms to the planning and project management for the design, construction, maintenance and leasing of government buildings in Western Australia.
Australia
 

Developing the Local Government Services Market: Working Paper on Local Government Asset Management and Construction Services (PDF)
PricewaterhouseCoopers LLP (PwC), 2007
Department of Communities and Local Government (DCLG)
A working paper which proposes greater strategic leadership and use of more integrated and innovative solutions for asset management and construction services.
UK
 

Design quality and the Private Finance Initiative (PDF)
Commission for Architecture and the Built Environment (CABE), 2005
The paper set outs CABE's perspective on the ability of the private finance initiative (PFI) to deliver well-designed public buildings, nd considers what policy interventions are needed to remove the barriers to the delivery of design quality.
UK
 

Improving Public Services Through Better Construction (PDF)
NAO, 2005
The Stationery Office
This NAO report examines the progress of central government departments in construction procurement and looks at the work of the Office of Government Commerce, Public Accounts Committee and NAO in providing guidance in this area. It is the follow-up to the NAO's 2001 report 'Modernising Construction'.
HC 364-I
UK
 

Improving Public Services Through Better Construction - Case Studies (PDF)
National Audit Office (NAO), 2005
The Stationery Office
Case studies used for the NAO report 'Improving Public Services Through Better Construction', which examines the progress of central government departments in construction procurement.
HC 364-II
UK
 

Improving Performance - Project Evaluation and Benchmarking (PDF)
Office of Government Commerce (OGC), 2003
This document is #08 in the OGC's 'Achieving Excellence' procurement guide series. It explains the principles and practice of performance evaluation, outlining the sequence of project performance reviews and providing techniques to tailor measures and targets to individual clients and projects.
UK
 

PFI Construction Performance (PDF)
House of Commons Public Accounts Committee, 2003
The Stationery Office
This report reviews and analyses the performance and performance-measurement of government construction contracts. It considers both contracts undertaken using the Private Finance Initiative (PFI) and alternative policy frameworks.
HC 567
UK
 

PFI Construction Performance (PDF)
National Audit Office (NAO), 2003
The Stationery Office
This NAO report investigates the hypothesis that construction procurement using the Private Finance Initiative (PFI) delivers price certainty for departments and timely delivery of good quality assets. There follows a survey of PFI projects to test this hypothesis. The NAO concludes that the hypothesis is generally supported.
HC 371
UK
 

Trust In Construction: Achieving Cultural Change (PDF)
Swan, Will; McDermott, Dr. Peter; Wood, Graham; Thomas, Andrew and Abbott, Carl, 2002
Centre for Construction Innovation in The North West
Based on interviews with employees on two projects used as case studies, the study looks at issues regarding trust in construction projects. Trust is seen in the reduction of risk and uncertainty via better communication and teaming. The building of trust improves project performance. Trust as part of an organisation's reputation is significant in giving employees an advantage in project teams and forging longer-term relationships with other organisations. In building trust, communication is vital. Trust is also fundamentally connected to money: reducing costs and leading to faster projects.
UK
 

Rethinking Construction 2002: Achievements, Next Steps, Getting Involved (PDF)
Rethinking Construction Group Ltd, 2002
Rethinking Construction was initiated by the 1998 Egan Report to achieve exceptional improvements in the design, customer satisfaction and sustainability of the UK construction industry. This report offers an update on its progress from inception until 2002 as well as outlining strategy for the following two years and offering advice to potential membership organisations.
UK
 

Modernising Construction (PDF)
National Audit Office (NAO), 2001
The Stationery Office
This NAO report examines the benefits of partnering in the construction process, in the context of modernising construction procurement in government departments and agencies. In particular it advances the view that many clients do not understand that lowest tender procurement may not produce the best value for money.
HC 87
UK
 

Measured Partnering: The Only Way to Know Whether you are Succeeding
M41 Case Study Project No. 20, 2000
Constructing Excellence
Constructing Excellence aims to deliver improved industry performance resulting in a demonstrably better built environment. This case study provides guidelines on performance-measurement in partnerships in this sector.
UK
 

Better Public Buildings (Part 1) (PDF)
Finch, Paul, 2000
Department for Culture Media and Sport
A report prepared by the Department for Culture Media and Sport in the UK, for the Better Public Buildings Group, chaired by Lord Falconer. It advocates a step change in the quality of building design in the public sector. Original text by Paul Finch, drawing on material previously prepared by members of the Better Public Buildings Group.
UK
 

Review of Civil Procurement in Central Government (Web Page)
Gershon, Peter, 1999
This is a review of civil procurement in the light of the Government's objectives on efficiency, modernisation and competitiveness. It was conducted in response to the invitation of the Paymaster General and the Parliamentary Secretary to the Cabinet Office. 
UK
 

Second Review of the Private Finance Initiative by Sir Malcolm Bates (Web Page)
Bates, Sir Malcolm, 1999
The Stationery Office
This HM Treasury document provides a series of policy recommendations as well as contract templates for the future conduct of Private Finance Initiative projects. It also includes an update on the original Bates Review. Follow the link to summary page only.
UK
 

Modern Government, Modern Procurement (Word)
Office of Government Commerce (OGC), 1999
This OGC report sets out the key recommendations of the Gershon Review of Civil Government Procurement and the Second Bates Review of the PFI and PPPs, and the Government's plans for their implementation.
UK
 

Rethinking Construction (PDF)
Egan, Sir John , 1998
Department of Trade and Industry (Construction Task Force)
This paper by the Egan Construction Task Force reports on the scope for improving the quality and efficiency of UK construction. Recommended substantial changes in the construction industry's culture and structure, and replacing competitive tendering with long-term relationships based on clear performance measurements and sustained quality and efficiency improvements.
UK
 

The Levene Efficiency Scrutiny into Construction Procurement by Government
Levene, Sir Peter , 1995
This comprehensive review makes a number of recommendations to improve the procurement and management of construction projects, including better communication with the construction industry to reduce conflict; adoption of a more commercial approach; negotiation of deals justified on value for money grounds; and increased training of civil servants on procurement and risk management.
UK
 

Constructing the Team: Final Report of the Government/Industry Review of Procurement and Contractual Arrangements in the UK Construction Industry
Latham, Sir Michael , 1994
This comprehensive review of the UK construction industry puts forward a number of recommendations for future achievement, in particular partnering as a way forward to improve efficiency and profitability in this sector.
UK
 

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  Last Updated: 30 June 2009