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MoD partnership may be a winner by John Leitch



Amec and Laing are in pole position to win a lion's share of the Ministry of Defence's annual œ1.7 billion construction spend, thanks to their willingness to co-operate in the pioneering "best practice" project.

Announcing details of the project last week, Construction Minister Nick Raynsford described the partnership between the two contractors, their suppliers and the MoD as "the shape of the construction industry in the future".

The challenge to Amec and Laing is to design, build and maintain two similar MoD training centres in such a way that Michael Latham's target 30 per cent savings our turned into a reality.

The "Building Down Barriers" initiative started 12 months ago when Laing and Amec approached the MoD to see how the Latham initiative could be taken forward. "The new approach pilots long term benefits to the whole construction industry," said Raynsford.

It is envisaged that Laing and Amec will exchange information during the project. Malcolm Eckershall, Amec director, said: "We did consider having a race but the objective is a complete exchange of views.

Staff at all levels will exchange information as the two teams aim to build a common toolbox." Raynsford described the inevitable future competition between the two teams as "dynamic tension"'

Raynsford said: "Buildings are usually purchased on the basis of lowest construction costs. This project tests out a different approach because it requires the construction company to manage the centres over a period and to make savings, not only in construction costs but running costs as well."

Asked if it was ironic that the MoD had been chosen as the Government department to undertake the example of "best practice" at work - given its reputation amongst many contractors as the most difficult of all public sector clients - Brian Hurst, chief executive of the Defence Estate Organisation said: "We don't go out of our way to be difficult. We are a demanding but well informed client.".

Raynsford said: "Amec and Laing will learn from this experience, though other contractors will recognise the need to keep pace or move ahead."

However Clive Cain, DEO director of technical standards, commented: "We want partnerships with contractors that lasted for more than just one contract." Building Down Barriers is a joint public and private sector research project which aims to put into effect best practice principles in construction procurement.

Also known as the Construction Supply Team Project (CSTP), it consists of two similar training centres for the army at Wattisham and Aldershot worth œ3.5 million and œ5.5 million, respectively. Laing has won the former Amec the latter.

The contractors will compile whole-life costings. Also the Tavistock Institute of Human Relations will monitor both projects and produce "toolbox" of techniques learnt from this project which will be published for use and further development by the construction industry.

While the project is expected to last five years, the first of the interim reports will be made public within six months. Training jv aims to to boost procurement best practice