{"id":128199,"date":"2023-06-15T08:40:54","date_gmt":"2023-06-15T07:40:54","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=128199"},"modified":"2023-06-15T09:02:53","modified_gmt":"2023-06-15T08:02:53","slug":"how-can-collaborative-procurement-benefit-construction-project-delivery","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/how-can-collaborative-procurement-benefit-construction-project-delivery\/128199\/","title":{"rendered":"How can collaborative procurement benefit construction project delivery?"},"content":{"rendered":"

With factors ranging from the aftermath of the pandemic on supply chains to inflationary pressures all impacting the delivery of construction projects, how can collaborative procurement keep projects on track?<\/h2>\n

AECOM\u2019s Head of Advisory services for Infrastructure Edd Burton and Tom Douglas, Partner at Eversheds Sutherland specialising in construction and engineering projects, explain more about how collaborative procurement enhances the process across the entire project lifecycle.\u00a0<\/em><\/p>\n

\u00a0<\/strong>To say the delivery of construction projects has become more complex in recent years is somewhat of an understatement. The conflict in Ukraine, Brexit and the Covid-19 pandemic have all caused disruption to labour markets and supply chains, contributing to soaring inflation. Construction projects have also been hit with difficulties in securing planning permission, increasing legislative requirements, such as the recently enacted Building Safety Act, and supply chain complexity.<\/p>\n

The combination of all of these factors creates a very difficult environment<\/a> in which to successfully deliver construction projects. This is feeding into pricing for projects as demonstrated by AECOM\u2019s latest tender price index, which is tracking at 10.7% in the 12 months to Q1 2023.<\/p>\n

Against this backdrop, it\u2019s no surprise that the development and construction industries have been increasingly looking at how to do things differently. While the concept of collaborative procurement isn\u2019t new, it is something the construction sector is increasingly looking to as it seeks to overcome the challenges it faces. It is also being considered as a model which better supports the delivery of environmental, social and governance (ESG) targets.<\/p>\n

The Banwell Report said in the 1960s that the construction industry was not flexible enough to meet modern needs and calling for more collaboration. In the 1990s, the ground-breaking reports by Sir Michael Latham and BAA Chief Executive Sir John Egan \u2013 whom many see as the \u2018godfathers\u2019 of collaboration \u2013 precipitated the unprecedented collaborative behaviour on the successful construction of Terminal 5 at Heathrow, which is often benchmarked as a collaborative gold standard.<\/p>\n

Over the past 20 years, collaborative procurement has entered the lexicon globally as a more proactive way of delivering projects in a range of sectors and markets. Australia has the longest history of modern collaborative contracting for delivering oil, gas and infrastructure projects.<\/p>\n

Today, most major UK infrastructure projects include elements of collaboration in their procurement, contracting or delivery model. In part, this has been driven by the proliferation of the NEC forms of contract, which drive closer working between client and supply chain, and the recommendations in both the public and private sector Construction Playbooks, which champion the benefits of building long-term, mutually beneficial relationships across the entire supply chain.<\/p>\n

In the current climate, we are increasingly seeing clients asking for support on collaborative procurement models<\/a>, as they strive for a solution which can successfully deliver their required outcomes.<\/p>\n

Why should I consider collaborative procurement for my project?<\/h3>\n

Put simply, because it can deliver significant benefits for a project or programme of works. At its heart, collaborative procurement aligns the outputs and incentives for the parties involved.<\/p>\n

Clients and supply chains can lack an understanding of each other\u2019s businesses and their drivers for success, whether that\u2019s the speed of delivery for a developer, return on investment for an investor, or balancing cost and quality for a contractor. Collaborative procurement seeks to improve the trust and understanding between the parties, so that they are pulling in the same direction to achieve mutually beneficial outcomes.<\/p>\n

Some of the more significant benefits that can be delivered through collaborative procurement models include:<\/p>\n