New forms of building procurement favoured by the Treasury look set
to radically alter the face of construction if applied over a wider
scale. One of these, Prime Contracting (PC), promoted by the
Defence Estates division of The Ministry of Defence (MoD), aims at
achieving an integrated supply chain under the control of a single
point of responsibility known as the prime contractor. Its wider
adoption could alter the role of consultants, especially
architects.
The concept of PC has been dogged by controversy ever since the
introduction in early 1996 of the Building Down Barriers
initiative, which aimed to lay down the principles of supply chain
integration in construction. Some architects were ruffled at the
MoD's initial claim that the role of the designer in a prime
contract would be reduced to that of just another supplier in an
integrated supply chain. But it has since become clear that this
reaction may have been due to widespread misunderstanding of the
term prime contractor.
Many took the term at face value, clinging to the idea that the
main contractor would be the sole point of responsibility to
integrate and manage the entire supply chain at the expense of the
architect. While this may be the case in situations where
aesthetics do not form part of a client's core values, Clive Cain
of the Defence Estates has since gone to great pains to make it
clear that there is no reason why a prime contractor cannot be a
QS, an architect or other design consultant, depending on their
skills and the project requirements.
For instance, on a civil engineering project the design leader can
be the engineer, on a process engineering plant it may be the
mechanical/electrical engineer, and so on. Says Cain: "We used the
term prime contractor in the sense of a party vested with single
point responsibility with whom you have a contract, so a prime
contractor can be a main contractor, but can also be an architect
or other consultant."
Taking stock of the adverse reaction to its original proposals, the
MoD invited feedback from the RIBA and a panel of architects to
discuss and formulate the possible future role of the architect in
a prime contract. The result has been a rethink by the MoD and a
slight reformulation of the original concept of design leadership.
But how have things changed and what are the implications for
architects and designers?
Put simply, Building Down Barriers is a toolkit designed to allow
the industry to deliver the type of savings and improvements
envisaged by Latham and Egan. It is intended not just for MoD use,
but to be applicable to all clients throughout the industry. The
BDB initiative started as a joint venture between the MoD and the
DETR, along with private sector sponsorship from AMEC and
Laing.
What the MoD required was a mechanism for integrating the supply
chain within a construction project, thereby achieving the sort of
improvements that had been envisaged by Latham. Reducing
inefficiency and waste - put at 30% across the industry by Latham -
came as a high priority for the Defence Estates, which annually
spends well over £1bn - half of which is on general
maintenance and refurbishment - on its 3,000 sites.
Cain explains: "We looked at our procurement programme and accepted
that the Latham report was broadly correct and that the situation
demanded radical change. We then looked at other sectors and found
that almost all involved a total integration of design and
manufacture. Nobody in their right mind would commission the design
of a car separate to the manufacture and we agree with Latham that
unless the construction team is totally integrated, there cannot be
serious improvements."
These sentiments were recently echoed by Defence Estates' chief
executive Ian Andrews, who is convinced that achieving the sort of
improvements aimed at by the MoD will only be possible when the
whole design and construction process is integrated within a single
supply chain under the control of one fully accountable prime
contractor.
Yet this could reinforce the fears of those who think that the
architect might end up being just another cog in the supply chain.
Cain refutes this, but concedes that everybody's role must change
without exception, and that includes the architect's. He feels that
not enough effort is being put into what is really meant by
integration of design with construction.
"What we have done in prime contracting", he explains, "is no
different to what was espoused by Egan and Latham. It's nothing
peculiar, just a wish to integrate the entire design and
construction process and bring people together as a team in
long-term relationships. The trouble is the industry is very
resistant to change because it is based on fragmentation and
adversarial relationships. And the assumption is that if anything
new comes along, one part of the industry must be trying to shaft
another."
Confirmation that the initial attempt to define the designer's role
within the prime contracting set up may not have been entirely on
target came last year: following adverse reaction from some
architectural circles, Clive Cain set up a working group of
architects to figure out exactly how the architect would fit into
an integrated supply chain and what the role would entail.
Cain's panel comprised Stefanie Fischer (Burrell Foley Fischer),
Andrew Morris (Richard Rogers Partnership), Richard Saxon (Building
Design Partnership) and from the architects involved on the two BDB
pilot projects came Andrew Kane (FaulknerBrowns) and Paul Weston
(The Charter Partnership). Working alongside the panel was Cain and
Dr Richard Holti of the Tavistock Institute.
The main concept to emerge from the panel was the recognition that
a healthy balance of both design and construction leadership is a
vital part of any integrated supply chain. Thus, the reformulated
prime contracting model involves two key roles, that of design
leadership and construction (or delivery) leadership, both of which
are on an equal footing.
Cain makes a useful analogy with the car industry. When a new car
is on the drawing board, stylists work with market researchers to
establish what will be required by the market. They then work with
engineers to ensure that the final design is buildable, remains
true to the original concept and meets the clients' needs. Design
leadership therefore involves somebody to work with the customer,
the client and the rest of the supply chain to develop a buildable
design that satisfies the clients' needs within budgetary, quality,
maintenance and operational constraints. Building design leadership
will also ensure that what is delivered at the end of the process
is closely aligned with the original concept. That way, there are
no nasty surprises for the client when the building is handed over.
Just how the roles of design and construction leadership are to
interact can be gauged from a new report to be published by CIRIA
in July and written by Dr Holti. The Handbook of Supply Chain
Management Part 1: The Essentials provides an overview of the
general approach that was developed on the two MoD pilot projects
for the garrisons at Aldershot and Wattisham, and sets out to
convey what being a prime contractor involves.
Recognising that entrusting design and construction leadership to
different organisations - as is the general situation in the UK -
can lead to a clash of two sets of priorities, the handbook maps
out the roles of design and construction leadership. The design
leader will engage with client and end-users to set out and clarify
the functional requirements of the building, the design aspirations
and the observation of capital and cost constraints. It will also
involve developing the overall design strategy and monitoring the
design and detailing to ensure they remain true to the overall
concept in the same manner as Cain's car designers.
Success in design leadership must necessarily involve design
management, comprising systems for scheduling, monitoring and
integrating the inter-related design activities.
The construction/delivery leader will be responsible for developing
the overall construction strategy in order to deliver the design
within a target through-life cost. Effective construction
management is also a fundamental part of this process. Both design
and construction leaders are involved in an effective common
dialogue and on an equal footing with one another, but remain under
the overall control of the prime contractor.
He therefore takes overall responsibility, provides design and
construction management and promotes the integrated approach so
that the client's needs are fulfiled.
But how will the process overcome contractors' traditional
suspicions of architects' design leadership that is sometimes
perceived as geared too strongly to esoteric design aspirations at
the cost of buildability and functionality? And what about
architects' experiences of design and build contractors who, as
head of the design process, may have substituted cheaper materials
and thus severely comprised the original design concept?
Distortions such as these can be avoided, according to the
handbook, by both parties establishing the project values with the
client from the outset and comparing notes at regular intervals.
Furthermore, the prime contractor will draw on the expertise of
design and construction leadership to provide the necessary aspects
of leadership appropriate to the project. Cited as examples of this
mechanism are the two BDB pilot projects, where in each case,
organisations that had hitherto operated as contractors took
responsibility not only for design and delivery management, but
also worked closely with an architectural practice as part of the
integrated supply team to provide design leadership. One of the
underlying principles of the process is the long-term strategic
link-ups between the prime contractor and the entire supply chain.
But how you ensure long-standing relationships in a climate of
workload uncertainty is something that remains unresolved.
However, once a chain is in place and has operated successfully for
more than one project, design and construction leaders will have
hopefully established a successful working relationship; the
ability to get on will therefore be a foregone conclusion.
Given this type of set up, there seems no reason why the design
authority that architects have enjoyed as leaders of the building
team cannot be preserved. As design leader, the architect remains
responsible for the design and can exert his professional influence
for the benefit of the project; fears about the demise of design
quality may have been grossly exaggerated. In the words of Richard
Saxon of BDP: "Prime contracting only diminishes the architect in
the eyes of those who think that the architect is God."
It may be that the MoD has hit on a system to ensure it gets the
buildings it needs at the right price. But it will be interesting
to see just how successfully prime contracting can be applied
across different sectors and particularly on smaller projects. But
Cain is confident: "I think PC is the way ahead for all projects,
no matter how complex or aesthetically advanced they may be. I
don't see a problem - it will work for any type of project."