Free ebooks ==> www.Ebook777.com Programme Procurement in Construction www.Ebook777.com Free ebooks ==> www.Ebook777.com JMM – For Jenny, Charlie Elvis and Ruben Tate SG – In memory of my late mother, Mrs Vicky Gruneberg www.Ebook777.com Programme Procurement in Construction Learning from London 2012 John M Mead Part of an International Consultancy, engaged as Principal Programme Supply Chain Manager for the delivery of Crossrail Stephen Gruneberg Reader, School of Architecture and the Built Environment The University of Westminster A John Wiley & Sons, Ltd., Publication This edition first published 2013 © 2013 by John Wiley & Sons, Ltd Registered office: John Wiley & Sons, Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK Editorial offices: 9600 Garsington Road, Oxford, OX4 2DQ, UK The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK 2121 State Avenue, Ames, Iowa 50014-8300, USA For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com/wiley-blackwell The right of the author to be identified as the author of this work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher Designations used by companies to distinguish their products are often claimed as trademarks All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners The publisher is not associated with any product or vendor mentioned in this book This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold on the understanding that the publisher is not engaged in rendering professional services If professional advice or other expert assistance is required, the services of a competent professional should be sought Library of Congress Cataloging-in-Publication Data Mead, John M (Programme manager) Programme procurement in construction : learning from London 2012 / John M Mead, Part of an International Consultancy and at the time of writing engaged as Principal Programme Supply Chain Manager for Crossrail & Stephen Gruneberg, Reader, School of Architecture and the Built Environment, The University of Westminster pages cm Includes bibliographical references and index ISBN 978-0-470-67473-4 (pbk : alk paper) – ISBN 978-1-118-59744-6 (online product) (print) – ISBN 978-1-118-59745-3 (emobi) (print) – ISBN 978-1-118-59746-0 (epub) (print) – ISBN 978-1-118-59747-7 (epdf) (print) Contractors’ operations Construction industry–Management Construction contracts–United Kingdom Public works– England–London Olympic Games (30th : 2012 : London, England) I Gruneberg, Stephen L II Title TA210.M43 2013 343.4207'8624–dc23 2012047263 A catalogue record for this book is available from the British Library Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books Cover image courtesy of John M Mead Cover design by His and Hers Design Set in 10.5/14 pt Trump Mediaeval by Toppan Best-set Premedia Limited 2013 Free ebooks ==> www.Ebook777.com Contents About the authors List of figures and tables Forewords from Sir John Armitt CBE, Howard Shiplee CBE, Martin Rowark and Professor Geoffrey E Petts Preface List of acronyms xi xiii xv xix xxvii Purchase and Supplier Engineering and the London 2012 Olympics Introduction The concept of Purchase and Supplier Engineering Programme organisation – an Olympic case study Procurement organisation structure – the Olympic Delivery Authority 11 Roles and responsibilities 11 Projects and programmes 13 Concluding remarks 14 Reference 15 A framework for understanding markets in construction 17 Introduction 18 Managing the supply market 19 The client and construction 23 Projects, programmes and construction dynamics 25 The client and the supply chain 27 Defining the supply chain 28 Outsourcing and subcontracting 31 Understanding and managing conflict in construction 34 Concluding remarks 39 References 40 The client’s values and the balanced scorecard 43 Introduction 44 Developing a framework for measuring performance 46 www.Ebook777.com vi Contents All from a project vision 47 Performance measurement 50 Using balanced scorecards to communicate values and measure performance 53 Developing a balanced scorecard 56 Measures including key performance indicators 58 Construction KPI measures of economic sustainability 58 Social sustainability: Respect for people KPI measures 59 Environmental sustainability: Environmental KPI measures 59 Creating appropriate KPIs from a project vision and scorecard 62 Concluding remarks 63 References 64 Packaging and contracting strategies 65 Introduction 66 What, why and how to buy 68 Packaging strategy 70 Gestalt theory 73 Programme clusters 75 Programme application 78 Contracting strategy 79 Forms of contract used in the 2012 Olympics procurement 79 Classification of contracts 82 Concluding remarks 85 References 88 Common component and commodity strategies 89 Introduction 90 The benefits of a common component strategy 91 Factors influencing the procurement of common components 93 Market leverage 93 Supply chain security 95 Contents vii Future maintenance and operations 95 Design efficiencies 96 Developing a common component strategy 96 Stage 1: Performance criteria 97 Stage 2: Assessment of benefits of implementing a common component strategy 98 Stage 3: The benefits of a common component purchasing strategy 99 The common component procurement strategy 100 Concluding remarks 102 References 102 Engaging with suppliers: How to attract suppliers and increase interest and awareness 103 Introduction 105 Gathering market intelligence 107 Supplier dialogue 109 One-way supplier dialogue – Supply chain events 110 One-way supplier dialogue – Industry days 110 One way supplier dialogue – One-to-one meetings 111 One-way supplier dialogue – Meet the buyer events 112 One-way supplier dialogue – Meet the contractor events 113 One-way supplier dialogue – Supplier guide 114 One-way supplier dialogue – Business opportunities website 115 One-way supplier dialogue – Opportunity slides 117 Two-way supplier dialogue – Supplier registration and pre-assessment questionnaires 117 Two-way supplier dialogue – Market soundings 120 Concluding remarks 125 Reference 126 eSourcing and process codification: Standardising programme procurements 127 Introduction 128 The guiding principles of a robust procurement process 129 viii Contents Standardising procurement documentation 130 Security of the procurement system 131 Evaluation of tenders 132 The application of electronic tools in the procurement process 133 eSourcing 134 eEvaluation 139 Aspects of managing systematic procurement processes 141 Standard processes 141 Schools of excellence 142 Governance 143 Assurance 144 Training 145 The milestones of procurement reporting 146 Standardisation and codification of the procurement process 147 Stage gate – Agreeing the procurement strategy 148 Stage gate – Tender documentation completion 148 Stage gate – Tender list agreement 149 Stage gate – The tender report 149 Procurement reporting 151 Concluding remarks 151 References 154 Managing supply chain involvement across a programme 155 Introduction 156 Supplier relationship management 157 Remaining in contact with all firms who tender for work 159 Supply chain mapping 162 Concluding remarks 167 Reference 168 Due diligence and the management of capacity 169 Introduction 170 Modelling supplier utilisation 170 Monitoring the financial strength of suppliers 180 Sub-tier supplier engineering 182 Contents ix Identifying critical suppliers 185 Concluding remarks 189 References 191 10 Performance management 193 Introduction 195 The Purchase and Supplier Engineering model and programme management 195 Purchase and Supplier Engineering and the programme management office 197 Performance management within Purchase and Supplier Engineering 197 Analysis 198 Control 199 Performance improvement through Purchase and Supplier Engineering 200 Benchmarking 201 Concluding remarks 201 Index 205 Free ebooks ==> www.Ebook777.com About the authors John M Mead is part of an International Consultancy and has previously led the Supply Chain Management function for the delivery of the infrastructure for the London 2012 Olympic and Paralympic Games At the time of writing this book, he was engaged in a similar role on the £14bn Crossrail construction programme to build a railway which tunnels under London Stephen Gruneberg is a Reader at the University of Westminster and a Visiting Fellow at the Faculty of the Built Environment, Northumbria University Stephen is an industrial economist specialising in the construction and property sectors and has written and co-written numerous books, reports and papers www.Ebook777.com 196   Programme procurement in construction Programme Management Office Programme Strategy Assurance Benefits Realisation Performance Management Procurement Strategy Purchase & Supplier Engineering Figure 10.1  Programme management model could be used to form the basis of improvement throughout all tiers of the supply chain Figure 10.1 illustrates a simplified programme management model, which is divided into three distinct elements The first element is a document, the programme strategy, which sets out the requirements, governance, leadership, direction and structure of a programme The second element is a team of managers, the programme management office (PMO), which defines the control, reporting and decision support processes to ensure the programme delivers the benefits expected from the stated requirements The third element is a strategic approach to the management of programmes, Purchase and Supplier Engineering, (PSE), as described in this book PSE is the element that oversees the process of delivering the appropriate goods and services as required to meet the client’s and stakeholders’ requirements These three distinct elements of programme management overlap to deliver assurance, where the PMO manages the programme within the governance and policies set by the programme leadership structure The procurement strategy is set out through PSE as part of the programme strategy to manage the overall acquisition of goods and services through a packaging strategy, a contracting strategy and the programme supply Free ebooks ==> www.Ebook777.com Performance management 197 chain approach In Figure 10.1 performance management is at the interface of the PMO, which establishes a regime to manage the delivery of the projects by the contracted supply chains and PSE The PMO, PSE and the programme strategy need to be consistent with one another in order to realise the expected benefits of the programme Establishing this alignment is often referred to as benefits realisation management Purchase and Supplier Engineering and the programme management office This chapter shows how an aligned performance management regime can enhance the value already created by the PSE approach, in particular the effort expended at pre-contract stage, collecting information on suppliers and their own commitments to deliver the client’s values and priorities written in their own tender submissions Performance management reinforces benefits realisation management by combining the programme requirements and procurement objectives with the day-today management of the sub-programmes and projects One of the first tasks facing the PMO is to establish a programme management reporting and assurance structure as early as possible in the programme life cycle This creates a governance structure focused on the client’s requirements and the perceived benefits of delivering the programme These requirements and benefits are developed in the early stages of PSE to become the ‘DNA’ of the programme, against which progress is measured and works procured Performance management within Purchase and Supplier Engineering Performance management needs to be based on both quality management and continuous improvement: for example, the DMAIC cycle based on Define – Measure – Analyse – Improve – Control The DMAIC process, illustrated in Figure 10.2, is a problem-solving approach facilitating management decision making based on data collected from the supply chain to eliminate variation in production and the quality of output www.Ebook777.com 198   Programme procurement in construction Define: Identify and develop the requirements Control: Use evidence to influence the delivery of requirements Measure: Establish key performance indicators (KPIs) Value Chain: Contractors/ Subcontractors/ Suppliers Analyse: Review and benchmark: what does good look like? Improve: Capture and share learning and develop suppliers Figure 10.2  The cycle of Defining, Measuring, Analysing, Improving and Controlling for programme supply chains Analysis The use of key performance indicators (KPIs) to monitor performance can highlight gaps in specific areas of delivery These gaps in perform­ ance can then be further investigated to identify specific areas for improvement The level of non-performance and the nature of the issues identified determine the type of corrective intervention required This is often achieved through shared learning, with experience and knowl­ edge drawn from the supply chain itself Action plans may be drawn up by the programme supply chain man­ agement team to make use of shared knowledge, while intervening, Performance management 199 if necessary, with the help of required expertise for specifically identified problems, such as process improvement or value engineering These action plans can be prepared, for example, using an RACI matrix RACI is a systematic method of managing change effectively The term ‘RACI’ is an acronym representing responsible, accountable, consulted and informed, which are the designations assigned to key individuals The first step is to appoint an individual to be responsible and to take charge of the process The second step is to identify a member of staff in authority, who must sign off any decisions and to whom the responsible person reports and is therefore accountable Discussions need to involve others, who are consulted and participate in the process Finally, those who may be affected by the change need to be informed of the decision The implementation and subsequent performance change highlighted in the action plan can then be monitored by the programme supply chain manager responsible for the particular cluster or project In construction, the sharing of knowledge and expertise beyond the usual commercial barriers can help to improve delivery and operational processes If members of the supply chain benefit from their experience of collaborative and integrated working, it can be argued that this could be seen as a legacy of the programme Control Monthly operational data collected by the programme and project supply chain managers informs continuous gap analyses, by frequently comparing the difference between actual and expected or planned performance The monthly monitoring at a project or sub-project level can then be complemented with quarterly meetings of projects or clusters to assess and compare performance The process of measurement, monitoring and management in itself forms a virtuous cycle for continuous improvement and subsequent supplier development Monthly operational KPIs are also submitted to the programme supply chain managers by the contractors and their suppliers The supply chain managers in turn report the headline findings on a regular basis to the client body to demonstrate the strategic delivery and progress of the programme This data can also be published at a headline level to the programme’s external communications team, possibly even on the programme’s own website, to demonstrate transparency, manage expectations and motivate continuous improvement of all stakeholders This 200 Programme procurement in construction process is part of the PMO’s responsibilities and ensures consistency in all forms of reporting and communication Performance improvement through Purchase and Supplier Engineering In many sectors of the economy, including construction, innovation takes place inside individual firms These innovations are then seen and taken up by competitors in an adapted form In construction, where the production processes are fragmented to a great extent, large programmes provide a particular opportunity for the industry to innovate Major complex programmes, such as the BAA London Heathrow Terminal 5, London 2012 Games and the extremely complex Crossrail programme, can act as catalysts for change in construction, affecting both markets and suppliers One of the key outcomes of effective performance management is the early identification of trends and areas for improvement It may be achieved with the help of clear, concise and relevant management information, which relates directly to the client’s objectives for a programme or for their business This applies particularly to the early identification of areas of the supply chain that need to be improved, and equally to areas of the supply chain that may be performing above expectation By measuring performance using simple, industry-accepted standards and indicators, such as the existing standard KPIs, the client can easily compare and benchmark performance against industry best practice This in turn allows the implementation and dissemination of best practice throughout the supply chain To improve efficiency in organisations requires frequent measurement of various aspects of the production and organisational processes As improvement implies change, there is a need to measure the current state of performance and compare it at some point in the future A key part of the management of a culture of continuous improvement are the measures that show how the organisation and the process are progressing towards key productivity or quality gains However, measuring change alone is not sufficient to improve performance Weighing a pig will not make it fatter! As the concept of Purchase and Supplier Engineering implies, a number of other factors need to be taken into account in the pursuit of innovation in construction When agreeing the performance measures, the PMO needs to Performance management 201 ensure that the measures are easily understood by all members of the supply chain and that they reflect the key areas for improvement It is also important to align with the programme and client’s objectives and ensure the measures are directly linked to agreed incentives and the commercial drivers of the programme The measures need to make use of readily available ‘business as usual’ data, avoiding special or bespoke data, and where possible the measures should be representative of the programme as a whole, not just narrow financial or commercial aspects Measuring change is one of the functions of the performance management regime established jointly by the PSE and the PMO, who can identify appropriate sources of information, advise on the relevance of the data to achieving a desired end result, and assist in obtaining the appropriate level of knowledge required to make decisions Another use of measuring performance is to encourage good practice through incentive schemes Achievements can then be suitably rewarded, with a view to motivating individuals to make further improvements at an individual and organisational level To be credible, the measures should also openly reflect and highlight when performance is not adequate or acceptable Benchmarking Benchmarking can provide a direct comparison for similar (and competing) businesses to examine their own performance in a number of given areas; it can identify opportunities for improvement within a firm and often provides a catalyst for implementing change For example, this can be achieved by utilising the KPIs, established as part of the performance measurement regime beyond the useful financial criteria The collection and analysis of data on key areas, such as sustainability (and in particular the ‘triple bottom line’ approach) and standard health and safety metrics (such as accident-free days) are also used to measure and benchmark performance across the UK construction industry Concluding remarks A set of performance measures and a Performance Management system for delivering improvement need to be established early in a programme, 202 Programme procurement in construction as they underpin how the client’s vision is realised This is achieved using scorecards to measure particular aspects of performance Scorecard measures need to align to the programme vision and these measures become a core part of the procurement strategy Once a performance management regime has been established, the data collected through the supply chain can help to identify trends and weaknesses in the market with individual suppliers and even in the supply chains themselves Performance management and gap analysis information can be used to improve the performance of individual suppliers and supply chains, but it needs to be focused and specific, using reliable and widely understood information such as construction industry or standard key performance indicators Performance management can be used not only to monitor progress, but to enable benchmarking, improve performance, encourage innovation and reward achievement as part of incentive schemes Benchmarking can be an effective method of helping businesses compare performance and use ‘lessons learned’ to instigate improvement initiatives It is entirely appropriate to conclude this account of PSE on a note of optimism concerning not only its ability to make improvements on the programmes, where it is used as an approach to management, but also its ability to make a potential contribution to change and innovation in the construction industry in general Performance management 203 Contract Delivery Dos Don’ts Performance Management Ensure project team and suppliers understand the performance management mechanism, system and reporting requirements Use data that emerges from standard processes and is part of natural delivery mechanisms Contract administration Implement contract administration code to ensure a consistent approach across contracts Build contract admin team early and involve in procurement process to ensure familiarity and minimise handover requirement Promote resource continuity by key procurement management staff moving on to perform postcontract roles Provide an appropriate and bespoke level of training for all members of project team responsible for post-contract delivery Create bespoke data requirements Index accessibility 129 acid test, the 180 action plans 198 appetite of firms 21, 105, 117, 121, 123, 159, 160 Aquatics Centre 83, 124 architects 38 assurance review 141, 144 auditability 129 BAA London Heathrow Terminal 200 balanced scorecard 13, 47, 53, 55, 63, 98, 107, 110, 129, 158, 182, 195 basketball 84 benchmarking 101, 201 benefits matrix 98 realisation management 197 BMX 84 board reports 146 bounded rationality 22 bulk purchasing 122 business case 96, 98 business opportunities 115–116 BusinessLink 118 buyers’ market 23, 173 buying club 101 call out flags 166 capability 123 capacity sector 94 suppliers’ 71, 117, 123, 172 capital investment 182 cash flow 183 CH2M Hill 10 challenge, risk of 132, 142, 159 Chambers of Commerce 118 CIOB 37, 40 Civil Engineering Contractors’ Association 125 civil engineering contracts 162 works 84 client body 31 requirements of role of 22, 24, 30 sponsor representatives 101 supply framework 101 team 25, 26 CLM 10 clustering 67 packages 77 clusters 78, 162 Code of Practice for Project Management 36 code of practice, procurement 141 common component procurement strategy 100 strategy 96 common components 90 and commodities 162 common performance specification 99 company registration numbers 186 compensation event process 80 Competefor 78, 118 competition 123 Competition Act, 1998 26 competitive dialogue 84 competitive tension 105, 160 conflict 35 conflicting projects 26 Programme Procurement in Construction: Learning from London 2012, First Edition John M Mead and Stephen Gruneberg © 2013 John Wiley & Sons, Ltd Published 2013 by John Wiley & Sons, Ltd 206 Index construction clusters 75, 76 contracts 162 process 31 procurement 25, 68 programme 32, 70, 71 services 70 training centre 84 value chain Construction Products Association 125 continuous improvement 199, 200 contract administration phase 149 administrator 165 award 146 delivery 195 matrix 85 notice 134, 146, 149, 159 contracting strategy 33, 69, 70, 122, 196 contractor capacity 33 contractors, role of 25 contracts, priced 81, 84–85 cost reimbursable contract 81 credit ratings agencies 181 critical packages 185 critical path 186, 190 critical success factors 49, 62 cross-programme horizontal vision 100 Crossrail 5, 115, 166, 200 cultural values 36 Davis Langdon 10 definition fixity 82 delivery partner 9, 148, 149 model 28 demand 123, 160 elasticity of 21 first law of 20 demonstration projects 57 design 70 and build 81 and town planning board 151 contracts 162 quality indicators 54 teams 99 development requirements stage 69 direct procurement opportunities 116 DMAIC cycle 197 due diligence 34, 170, 182 early contractor involvement 81 early warning notice 80 economic sustainability 54 measures of 58 economies of scale 76 eEvaluation 133, 140 tool 139 electronic brokerage system 118 electronic evaluation 52, 133 electronic sourcing 133 electronic tendering 52 employment 55 enabling works 85 contracts 162 energy centres 85 engineering, procurement and construction contracts 69 engineers 38 environment 55 environmental impact studies 56 environmental impacts, measures of escalator framework contract 101 eSourcing 133, 157, 159 systems 134 Eton Manor 82, 84 EU Procurement legislation 10 EU regulations 102 European Union legislation 159 evaluation management team 132, 142 model 139 exposure levels of 173 tier contractors 188 expression of interest 135 fair competition 159 football analogy 34 forward purchasing 122 game theory 35, 38 gap analysis 199 gearing 180 Gestalt theory 66, 73–75, 100 global ultimate parent 181 global warming 56 governance 143, 148 structure 197 health and safety legislation hedging 122 56 59 Index 207 Highways Agency hockey 84 81 incentive schemes 60 incentives 81, 201 indirect procurement opportunities 116 industry bodies 113 days 110 Industry Standards Group 92, 102 information and communication technology 133 impactedness 22 innovation 165, 200 insolvency 183, 185 risks of contractor 188 integrated working 25, 34, 151, 199 invitation to tender 134, 148, 158 key performance indicators 82, 198 53, 57, 58, Laing O’Rourke 10 landscaping works 84 lead time 190 legacy 47, 55 LEX Consulting 33, 41 Lifts and Elevators Industry Association 125 liquidated and ascertained damages 34, 55 local communities, engagement with 57 logistics 123 logistics contracts 163 London 2012 Learning Legacy 115 Olympic Games 5, 28, 147, 200 London Olympic Games and Paralympic Games Act 2006 London Organising Committee for the Olympic and Paralympic Games 82, 84 Mace 10 main contractors 14, 23 maintenance costs 100 management contracting 85 contracts 81 manufacturing 31 capacity 122 market capacity 105 engagement cycle 108 intelligence 107, 121 leverage 93 soundings 179, 121, 123, 159, 166 markets 23 contestable 23 master schedule 53 meet the buyer events 112 meet the contractor events 113 method statement 83 milestones 146 most economically advantageous tender 132, 175, 182 multiple projects 26 multiplier effect 33 multi-project firms 27 Nash equilibrium 174 National Audit Office 37, 161 National Specialist Contractors’ Council 125 Network Rail 94 New Engineering Contract 68, 79 non-price competition 22 objectives 56 ODA Procurement Code 12 Office for National Statistics 28, 41 Office of Government Commerce 148, 172, 180, 191 Official Journal of the European Union 118, 134, 149, 159 Olympic Delivery Authority 9, 34, 115, 126, 147, 148, 149, 166 Olympic road network Olympics, opening ceremony of 34 one-to-one meetings 111 online registration 118 operational expenditure 182 operational key performance indicators 60 opportunism 22 opportunities 106 opportunity slides 116, 117, 162, 165 optimised contractor involvement 81 organisational supply chains 37, 38 outsourcing 31 expertise Free ebooks ==> www.Ebook777.com 208 Index over-dependency 173 over-exposure 172 packages 69, 165 packaging strategy 7, 33, 69, 70, 71, 106, 122, 162, 196 Paralympic route network parent company guarantees 181 Pareto analysis 185 partnering 35 payment flows, pay when paid 183 performance bonds 181 management 7, 195 regime 50, 201 measures 200 monitoring 58 scorecards 63 planned maintenance cycles 96 post-tender feedback 158 power position 173 pre-assessment questionnaire 118 pre-qualification evaluation report 146 questionnaire 120, 134, 135, 148, 158 return 146 Pricewaterhouse 185, 191 PricewaterhouseCoopers LLP 185 Private Finance Initiative 37 procurement 63 and programme supply chain management team 101 assurance process 144 board 151 code 147 cycle 69 documentation 129 leader 165 milestones 78 plan 122 policy 79 procedure, restricted 83 routes 38–9 schedule 145, 162, 185 strategy 69, 71, 148 time periods 73 productivity 200 programme clustering model 75, 162 complexity 75 demand 94 exposure 171 external communications team 199 management executive 101 model 196 office team 48, 59, 196 manager 34 procurement strategy 69 strategy 196 supply chain approach 196 management team 11, 180, 195 manager 71, 175, 185 team 6, 111, 113, 116, 121, 122, 158, 188 vision 47 website 115 project and programme review clinic 151 controls 146 dictionary 76 initiation document 149 management 6, 13, 27 supply chains 37 projects, portfolio of 26 public contracts regulations 73, 83, 88, 147, 154, 157 public interest 21 public relations, company 58 public sector 24 Public Services (Social Value) Act xvi Purchase and Supplier Engineering xvi, 4, 39, 128, 189, 196 purchase engineering 6, 152 quality 54, 200 RACI matrix 199 Rail Industry Association 125 registration process 119 relational contracting 35 reporting activities 146 resource allocation syndrome 27 respect for people, measures of 59 responsibilities 24 risk 29, 32, 34, 70, 71, 76, 81, 82, 106, 122, 124, 171, 173, 175 transfer of 172 www.Ebook777.com Index 209 Royal Institution of Chartered Surveyors 135 rules of engagement 158 schools of excellence 142, 149 security 55 sellers’ market 23, 173 service clusters 75 shared management approach 189 silo mentality 95, 100, 189 site accommodation 163 small and medium sized enterprises 29, 79, 131 social sustainability 54 solvency 180 sourcing of materials, responsible 57 Specialist Engineering Contractors’ Group 125 specialist labour 29 specifications, alignment of 122 staff training 145 stage gates 148 stakeholders 8, 48, 71, 147, 199 standardisation 147 strategic approach strategic goals 49 subcontractors 14 subject-matter experts 52, 132 success, measure of 52 supplier dialogues one way 109 two way 109 engagement 125 engineering 6, 190 expectations 110 guides 112, 114, 115–116, 158 registration 117 utilisation model 171, 177 supply and demand 20 chain capacity 94 events 110 hierarchy 29 integration 34 management 4, 30, 36, 38 management strategy 33 map 162, 165 networking 111 curve 21 excess 21 law of 20 market 27 pool 190 surplus capacity 21 sustainability 48 indicators 54 systems theory approach 27 target contracts 81, 84 team integration 12 tender documents 51, 148 event schedule 71, 78, 146 issue 146 list 149 approval 146 price 21 report 149 return 146 tenders 132 financial strength of 180 Tenders Electronic Daily 116 Term Service Contracts 82 themes, priority 47 tier contractor supply framework 101 contractors 113, 185 main contractors 28 subcontractor lists 187 supply chain 163 supply chain map 165 tier contractors 29, 113, 180, 183, 185 subcontractor over-commitment 71 tier contractors 29, 180, 183 trade associations 107, 113, 120, 121 package project management 84 training and employment 57 transaction costs 22 Transport for London 101 Transport Plan for the Games triple bottom line sustainability model 57, 201 two stage tendering process 83 uncertainty 22 utilisation ratio 175 210 Index utilities contracts 162 Utilities Contracts Regulations, 2006 85 value 9, 30, 105 velodrome 83 vendor engagement 162 vertical integration 31, 180 vision statement 47, 62 welfare facilities 163 Wembley Stadium 10 winning tender 52 work breakdown structures 165 work packages 76, 78 priced 84 zero sum game 35, 36 67, 76, 78, Free ebooks ==> www.Ebook777.com Keep up with critical fields Would you like to receive up-to-date information on our books, journals and databases in the areas that interest you, direct to your mailbox? Join the Wiley e-mail service - a convenient way to receive updates and exclusive discount offers on products from us Simply visit www.wiley.com/email and register online We won’t bombard you with emails and we’ll only email you with information that’s relevant to you We will ALWAYS respect your e-maill privacy and NEVER sell, rent, or exchange your e-mail address to any y outside company Full details on ourr 17841 privacy policy can be found online www.wiley.com/email Programme Procurement in Construction: Learning from London 2012, First Edition John M Mead and Stephen Gruneberg © 2013 John Wiley & Sons, Ltd Published 2013 by John Wiley & Sons, Ltd www.Ebook777.com ... 25 The client and the supply chain 27 Defining the supply chain 28 Outsourcing and subcontracting 31 Understanding and managing conflict in construction 34 Concluding remarks 39 References 40 The... Managing supply chain involvement across a programme 155 Introduction 156 Supplier relationship management 157 Remaining in contact with all firms who tender for work 159 Supply chain mapping 162... dimensions of in uence Programme management model The cycle of Defining, Measuring, Analysing, Improving and Controlling for programme supply chains Example of an Operational Measurement Programme