Procurement
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Context
Good procurement practice is crucially important to reduce the overall cost of projects, to improve the economic efficiency of the construction industry and to ensure that projects, when complete, are fit for purpose, thereby securing whole life value.
This Strategy seeks to build on a shared commitment to procure in a more sustainable way and focuses on promoting the business case for better procurement practices in the public and private sectors.
Actions and Deliverables
Overarching Target
To achieve improved whole life value through the promotion of best practice construction procurement and supply side integration, by encouraging the adoption of the Construction Commitments in both the public and private sectors and throughout the supply chain.
| List of Actions & Deliverables which contribute to Overarching Target | Body Responsible for each action/ deliverable | Timescale |
|---|
Parts of the industry – clients, consultants, main contractors, specialist contractors*, and product manufacturers and suppliers – to be engaged in supply chains on 30% of construction projects and for 40% of their work to be conducted through integrated project teams
*These targets apply to those specialist contractors involved in Mechanical & Electrical work. For the reminder, the target is to establish by 2012 a mechanism for measuring integration in their sector |
Strategic Forum |
2012 - measured using Constructing Excellence Key Performance Indicator (KPI data) data |
| 35% of client activity, by value, embraces the principles of the Clients’ Commitments |
Strategic Forum |
2010 - Constructing Excellence using the Construction industry KPIs |
| 60% of client activity, by value, embraces the principles of the Clients’ Commitments |
Strategic Forum |
2012 - Constructing Excellence using the Construction industry KPIs |
| BERR/SFfC Integration Demonstration Projects |
BERR/SFfC Integration Task Group |
Ongoing |
| BERR / OGC / Constructing Excellence Best Practice Roadshows |
BERR/OGC |
2009 |
| Review of Procurement Strategies set out in Achieving Excellence to ensure alignment with the delivery of whole life value |
OGC and PSCCF |
2008 |
| Creation of a Centre of Expertise in Sustainable Procurement |
OGC |
2008 / 2009 |
| Development of simple "how to" guidance for clients |
Construction Clients Group |
2009 |
What can Industry do?
- Sign up to the Construction Commitments which seek to drive up procurement standards throughout the supply chain within the construction industry.
- Forward Commitment Procurement is a procurement approach to encourage innovative solutions whilst allocating and managing risk more effectively.
- The BREEAM family of assessment methods and tools are all designed to help construction professionals understand and mitigate the environmental impacts of the developments they design and build.
Further information:
Studies have shown that improving logistics (product transport, handling, delivery and storage) can reduce up to 2.5% of a capital project cost and significantly reduce waste and transport carbon emissions.
Client leadership, procurement and integration are key planks of the Egan industry improvement agenda, read the report here.
The Sustainable Procurement Action Plan sets an aim for the UK Government to be among the European Union (EU) leaders in sustainable procurement and to help achieve a low carbon, more resource efficient public sector.
The 2008 Budget announced a new policy framework for procurement including practical guidance on how to take the environment into account; and a new Centre for Expertise in Sustainable Procurement has been established in the Office of Government Commerce (OGC).
The Sustainable Development Commission (SDC) reports on Departmental progress towards the targets for Sustainable Operations on the Government Estate (SOGE) via its annual Sustainable Development in Government Reports.
As part of the Comprehensive Spending Review, a new set of Public Service Agreements which incorporate the principles of sustainable development have been agreed. Permanent Secretaries are accountable for their departments' overall progress against these agreements to drive the implementation of the Sustainable Procurement Action Plan.
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