Equal Partners The supply side view of the public sector

Why we sponsored the report It is needed It is good for our Clients It is good for our business

Why is it needed? The industry has been inundated with reports over a long period of time – I suspect we need updates every few years The placing and management of building contracts – Sir Ernest Simon – 1944 Committee on the placing and management of contracts for building and civil engineering work – Sir Harold Banwell – 1964 Constructing the team – Sir Michael Latham – 1994 Rethinking construction – Sir John Egan – 1998

Latham’s words still ring true The first words in his executive summary Previous reports have either been implemented incompletely, or the problems have persisted. The opportunity which exists now must not be missed

Egan has a different tone The major Clients have committed themselves to driving forward the construction industry. We look to Government as the largest Client to join us. But we are also issuing a challenge to the construction industry to commit to change. We have repeatedly heard the claim that construction is different from manufacturing because every product is unique. We do not agree.

What the reports tell us That there is a need for change Commitment Hope that improvements can be made The fact that there is a lot to learn from other industries

What the reports lack An acknowledgement that “the show must go on” Any mention of the risks during the period of change Any guidance on how to get from where we are now to where we need to be in the future

The importance of transition Understanding the process of change Understanding the past The importance of people in the process

Why I support the Equal Partners report The title – its about partners The simple aim in the Foreword is to deliver greater value The honesty The balanced view The temperate language The practical action plans The acknowledgement that even radical change has to be approached step by step

Key recommendations There is no need to start from the beginning The call for Suppliers to focus on what the Client needs and to lift standards of service The call for Clients to spend more time analysing and communicating their needs The need to improve communication at the bidding stage (particularly at interviews) The need to keep people in post, to keep relationships intact and to be tolerant about mistakes The call (yet again) for a focus on value, not price

Listening Equal Partners – 2 words that mean a lot Partners communicate throughout a relationship Things I have heard this morning

How will our Clients benefit The report will give them a lot of information from a wide range of public sector areas It will give them a vehicle to encourage discussion with their suppliers It will help to inform them why they do not always align with their suppliers It will give them a draft action plan which will help them to evolve their approach, not to disrupt it. It will help them make the transition

How suppliers will benefit The report will make them think about how they are perceived It will help them to start meaningful discussions with their Clients about the mutual role they need to play in making improvements It will help them to make more Clients happy It will therefore improve their financial position

Summary We will use the report to evolve our relationships with the public sector We will encourage people in Client and Supplier organisations to use it to evolve in a practical manner, to create a more successful and enjoyable industry