Clients split over Egan

Exclusive by David Nunn



With 24 hours to go to the launch of the Egan Report, clients are trying to avert a damaging rift in the industry over the work of the Government's Construction Task Force.

Sir John's report is due to be published tomorrow. Its recommendations will set the industry demanding targets in reducing costs and defects, which will be showcased on £500 million of demonstration projects.

But on the eve of the launch, confidential briefings given to CJ suggested that clients are split down the middle, with some holding deep reservations about the BAA-led Task Force. With a potential row on the cards, even supportive clients are wary of volunteering demonstration projects through which the initiative aims to benchmark performance.

Divisions have arisen among members of the Construction Clients' Forum with some wanting to maintain the consensus approach fostered by the Latham initiative, and others favouring a more robust style of collaboration.

Those leaning towards a more hard-nosed approach include BAA, and other Task Force members, members of the Construction Round Table, and companies such as McDonalds and Grand Metropolitan. They are said to be impatient with the industry and dubious about what the Construction Industry Board can achieve.

Others favouring a more inclusive approach and a central place for the CIB are said to include the Millennium Commission, the Committee of Vice-Chancellors and Principals, the Environment Agency, and the Ministry of Defence. They fear that the hard line being taken by Egan, coupled with the Task Force concentration on power players and huge projects, could lose the industry's support and destroy the work of the Latham initiative.

A senior source from this second spectrum of opinion has made several criticisms of the Task Force, including:

l Lessons will not be disseminated, but will be retained by relatively few leading clients - a "danger of cronyism". Deputy Prime Minister John Prescott has allowed Sir John to hand-pick the Task Force, which in turn wants to choose its own management board to oversee implementation.

l A heavy bias towards large organisations and projects, with "little account taken of occasional or small clients".

l Lack of transparency about how findings have been reached, making it hard to judge whether they are applicable to all kinds of project.

l Concern about BAA's own performance as a client, and its confrontational approach in some partnering arrangements.

The CCF is to issue a statement tomorrow welcoming the general thrust of the Egan report, but will call on Sir John to broaden the demonstration projects to "reflect the range of clients and constructors in the industry." It believes that the recommendations of the Task Force - with only one exception - are already listed in its Constructing Improvement document.

There is deep concern among some influential clients about the style with which the recommendations may be put over at tomorrow's launch and subsequent events. These fears have arisen from a stormy meeting of the CIB at which Sir John previewed his report (see right).

"If Egan delivers his report in the same high-handed and negative way there will be a negative reaction from the supply side. People like Sir Martin Laing are not going to be turned into Aunt Sally's," said one client source.

"They have bent over backwards to be accommodating. If he doesn't give credit for things like the 40 per cent improvement in productivity over the last decade, I believe they will withdraw their co-operation."

The chairmen of the four largest industry bodies were called to a preview of the detail of the report, with DETR, yesterday. Beforehand, there was speculation of a last-minute redraft: "I think some spin-doctoring is going on to make the report more palatable," said a well placed source.