In
2011, the Government published its Construction Strategy which set out clear
objectives to promote efficiency and reform in Government construction,
alongside innovation and growth in the construction sector. The strategy called for profound changes in
the way government and industry work together to achieve these aims. In response to this, Government has worked
with industry to develop a long term vision resulting in the publication
earlier this month of ‘Construction 2025’, a strategy which is billed as a
partnership between Government and industry setting out a vision and plan for long-term strategic
action by Government and industry to continue to work together to promote the
success of the UK construction sector with focus on key growth markets in smart
technology, green construction and overseas trade.
The overall objective of the
strategy is to put the UK construction industry at the forefront of the global
market in an effort to achieve and deliver significant growth. With the global
construction market forecast to grow by over 70% by 2025, the strategy sets out
its vision for the industry to exploit its strengths in the global market to
ensure British companies are well placed to take advantage of the opportunities
being created by changes in the international market.
Construction 2025 does not
replace the 2011 Construction Strategy but rather supplements it, building its foundations
and the Government’s Plan for Growth giving it a broader momentum to drive
lasting change through reform. It
outlines the vision for a more attractive and technologically advanced industry
that through integration and collaboration will allow the construction industry to
grow sustainably and make a long-term contribution to growth in addition to mapping
out an action plan for delivering this. The Strategy envisages clear benefits for
industry from the realisation of these aspirations by delivering better, faster, cheaper
and greener products for the industry’s clients.
However, the aspirations are lofty to say the least
and the ambitions for 2025 are deliberately stretching. Through Government working in partnership with the
industry the strategy is built around achieving four headline objectives by
2025:
- Lower costs: a 33% reduction in initial costs of construction
and the whole life cost of built assets
- Faster delivery: a 50% reduction in the overall
time from inception to completion for new build and refurbished assets
- Lower emissions: a 50% reduction in greenhouse
gases emission in the built environment
- Improvement in exports: a 50% reduction in
the trade gap between total exports and total imports
While
the drive towards lower costs is nothing new, a 20% reduction by the end of
this Parliament having already been identified in the 2011 Government
Construction Strategy, the industrial strategy stretches the target to 33%
albeit over a longer period of time.
Building
Information Modelling (BIM) is inevitably a key thread running through the
strategy and is one of the mechanisms by which the Government hopes its
efficiency targets will be met. The strategy reiterates the move to BIM Level 2
by 2016 as well as targeting Government and industry moving to Level 3 BIM
between 2016 and 2025. The commitment to supporting the industry in
implementing BIM remains.
Achieving
a 50% reduction in greenhouse gas emissions to meet the strategy’s low carbon
and sustainability objectives relies heavily on a successful delivery of the
Green Deal to improve the existing housing stock. There is no doubt of the
potential of Green Deal to reduce emissions and to provide employment over a
significant time period but the Government’s own figures on its take up are not
encouraging. Much will also depend on the work of the Green Construction Board,
which has identified the areas of greatest potential opportunity for the
industry. However, moving towards the 50% reduction target in the strategy in
addition to the longer term targets of the Climate Change Act will require clear
leadership from Government and private sector construction clients.
The
strategy acknowledges the important role clients must play in transforming the
construction industry thereby aligning it with the commitments made in the
Government Construction Strategy in 2011. It is perhaps surprising therefore,
that the proposals in this area are not more robust, although the Government is
pressing on with a number of trial projects assessing three new models of
construction procurement (Two Stage Open Book; Cost Led Procurement; and
Integrated Project Insurance.)
Allied
to this is ensuring the industry retains a diverse and resilient supply chain
and it won’t come as any surprise the strategy identifies access to finance and
cash flow as significant ongoing issues for the industry. Project Bank Accounts
and Supply Chain Finance Initiatives are two key mechanisms that the strategy
champions to address these issues.
It
is encouraging that the strategy recognises the need for investment, both
financial and political, in training and development activities. After all, the
industry needs good people and a robust framework to attract and retain new
entrants. The strategy will be followed by the publication of the Government’s
implementation plan for apprenticeships later in 2013 which should provide
further impetus along with proposals for a more strategic approach to
Continuing Professional Development.
The
ultimate test of the success of the strategy will be whether it delivers
against the challenges is sets for both industry and Government. This will be
predicated on strong leadership. Driving the delivery of the
“Construction 2025” action plan and its strategic priorities will be the
Construction Leadership Council, a joint Government and industry body. The Leadership Council will
take the reins in driving forward the changes although actions will be owned
and delivered by industry bodies with accountability for their implementation
to the Council.
Clearly, some of the
responsibility lies with the industry itself. After five years of being
buffeted by the global economic storm there are growing signs that the outlook
is becoming more favourable. In this respect the strategy can be seen as a real
opportunity for the industry to grasp and what the sector looks like in 2025
will come down to how industry embraces this roadmap for change.
Our clients have had a number of successes recently. In particular a huge congratulations to Liquid Roofing Ltd who were successful in their bid to get a place on the City West Framework. A major success for a small specialist contractor working in the public sector!
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