CONSTRUCTION PROCUREMENT GUIDANCE WILL DRIVE FORWARD BEST PRACTICE - ANDREW SMITH

New government guidelines to improve and simplify working practices for the construction procurement industry are unveiled today by Andrew Smith, Chief Secretary to the Treasury.

The three booklets, Nos 7,8 and 9 in the Construction Procurement guidance provide up to date best practice for practitioners in the course of implementing key elements of procurement. They include:

Whole Life Costs
Project evaluation and feedback
Benchmarking

Andrew Smith said:

“The publication of these booklets marks a key stage in the Government’s continued drive to improve best practice throughout the industry. It represents further improvements in the way clients, contractors and consultants work together which is fundamental to its future success. This continued dialogue is essential if we are to deliver innovative approaches to procurement.”

Peter Gershon, Chief Executive of the Office of Government Commerce said:

“This new guidance builds on the success and development of previous guidance in this area. Such has been the successful take up of this in-house guidance that I am confident that the OGC can be at the cutting edge of best practice across the whole area of government procurement.”

Sir John Bourn, Comptroller and Auditor General and head of the National Audit Office said:

“We welcome the contribution that these guides make to encouraging the active management of works contracts which is essential to achieving value for money.”

No. 7, Whole Life Costs, sets out the main principles for preparing whole life cost models. It provides details on the consideration of all costs of a facility over its life so that investment at the beginning can be properly related to returns many years later.

No. 8, Project Evaluation and Feedback, provides advice on how and when to evaluate projects. It also focuses on how to feedback the lessons learned from each project to improve the procurement of future projects across Government where knowledge, practice and understanding of construction procurement in the public sector is advancing rapidly.

No. 9, Benchmarking, provides advice on benchmarking and performance measurement in relation to construction procurement. It describes different types of benchmarking and explains how to get involved in an area where the whole benchmarking process is evolving and continuously improving and the need to monitor the rate at which performance is changing.

The easy to read booklets, endorsed by the National Audit Office, will enable all procurement managers to further develop their skills in the procurement area.

The booklets provide guidance on techniques and approaches which aid effective decision making within projects and will help to provide a clear audit trail which should encourage more innovation.

Today’s second anniversary of ‘Rethinking Construction’ marks the report of Sir John Egan’s Construction Task Force which set the national agenda and a framework for improving the culture and performance of the construction industry.

NOTES TO EDITORS

1. These guidance documents will be updated regularly and it is expected that users will prefer to obtain access to latest versions online rather than rely on hard copies. Online versions will have facility to allow people to add comments and make suggestions for improvements and link to examples of what has been done in practice. It will also provide the backbone for continuous improvement and knowledge on best practice.

2. The publication of Construction Procurement Guidance notes follows directly from the 1995 Levene Report – Scrutiny into Construction Procurement by Government. They are aimed at central Government Departments, their Agencies and Non-Departmental Public Bodies.

3. All three booklets Nos 7,8 and 9 translate the recommendations made in the Efficiency Unit Report ‘Construction Procurement by Government’ into practical proposals for implementation. They all address the recommendations made in the University of Bath School of Management Agile Construction Initiative report ‘Constructing the Government Client (ISBN 0947819614) and the recommendations made in the Construction Taskforce report (Egan Report) ‘Rethinking Construction’ (ISBN 1 85112 094 7). Booklet No 8 partially replaces the old Central Unit on Procurement (now part of OGC) Guidance Note No. 43 ‘Project Evaluation’. Whilst that guidance contains some detailed advice that is still relevant, this guidance takes precedence over it. Booklet No. 9 forms a key part of the Government’s Achieving Excellence Initiative and also addresses the contents of the KPI Report for the Minister for Construction, dated January 2000.

4. Booklets Nos 1, 2 and 3 were launched in December 1997 by the Paymaster General and the Minister for Construction. Booklets Nos 4,5 and 6 were launched at a conference in June 1999 by the Chief Secretary to the Treasury, chaired by Sir Steve Robson and attended by Sir Michael Latham and Sir John Egan.

5. Copies of the new booklets, Nos 7, 8 and 9 are available from Treasury Publications Unit on tel: 020 7270 4558. Copies are available free to the public sector and cost £3.50 each to the Private Sector.

6. Public enquiries to Treasury Public Enquiries on 020 7270 4558 or to Bridghe Ford on 020 7271 2624.

7. Press enquiries to Malcolm Graves on 020 7211 1366.