Construction Project Management An Integrated Approach by Fewings, Peter Henjewele, Christian

Construction Project Management
Construction Project Management: An Integrated Approach is a management approach

to leading projects and the effective choice and use of project management tools and
techniques. It seeks to push the boundaries of project management to take on board future
needs and user issues.
Integration of the construction project, meaning closer relations between the project team,
the supply chain and the client, is long overdue; however, despite some signs of growth in
this area, the industry nonetheless remains fragmented in its approach. The role of the project
manager is to integrate diverse interests and unify objectives to achieve a common goal. This
has now broadened to include a responsibility, on the parts of both client and team, to ensure
that construction addresses current and future societal needs. From an economic perspective,
a great deal of waste is connected with conflict, thus a holistic approach that increases the effi-
ciency and effectiveness of the task at hand will inject energy into project management. This
third edition now takes on board the impact of technology in building information modelling
and other digitised technologies such as artificial intelligence. Together, they open up avenues
for more direct and incisive action to test creative design, manufacture directly and communi-
cate spontaneously and intuitively. In time, such technologies will change the role of project
managers but will never take away their responsibility to be passionate about construction and
to integrate the team. A new chapter has been added that considers future societal needs. This
edition is also reordered to make the project life cycle and process chapters clearer.
This book combines best practice in construction with the theories underpinning pro-
ject management and presents a wealth of practical case studies – many new. It focuses
on all construction disciplines that may manage projects. The book is of unique value to
students in the later years of undergraduate courses and those on specialist postgraduate
courses in project management and also for practitioners in all disciplines and clients who
have experienced the frustration caused by the fragmentation of construction projects.
Peter Fewings has worked in the construction industry for 40 years, including developing
and leading Master’s courses in construction project management for many years. He has led
projects in and lectured to most built environment disciplines. More recently, he acted as the
client’s representative on a new build church, and has also renewed his interest in historic
structures as a practising priest in the Church of England. He is a Myers–Briggs practitioner
and has also published books and chapters in the area of ethics and health and safety. He
worked abroad, in Zambia, for some years.
Christian Henjewele has extensive industrial experience in the construction industry.

He began his career in construction working as a site engineer for leading contractors in
Tanzania. He then joined the public sector to lead and manage infrastructural projects. He
is now leading Master’s courses in Project Management, Construction Project Management
and Construction Management at Anglia Ruskin University.
Construction Project Management
An Integrated Approach
Third Edition
Peter Fewings and Christian Henjewele

Third edition published 2019
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
52 Vanderbilt Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
 2019 Peter Fewings and Christian Henjewele
The right of Peter Fewings and Christian Henjewele to be identified as
authors of this work has been asserted by them in accordance with sections
77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
First edition published by Routledge 2005
Second edition published by Routledge 2013
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Fewings, Peter, author. | Henjewele, Christian, author.
Title: Construction project management : an integrated approach / Peter
Fewings and Christian Henjewele.
Description: Third edition. | Abingdon, Oxon ; New York, NY : Routledge
is an imprint of the Taylor & Francis Group, an Informa Business, 2019.
Identifiers: LCCN 2018049875| ISBN 9780815358640 (hbk) | ISBN
9780815358657 (pbk) | ISBN 9781351122030 (ebk)
Subjects: LCSH: Construction industry—Management. | Project
management. | Building—Superintendence.
Classification: LCC TH438 .F48 2019 | DDC 690.068/4—dc23
LC record available at https://lccn.loc.gov/2018049875
ISBN: 978-0-8153-5864-0 (hbk)

ISBN: 978-0-8153-5865-7 (pbk)
ISBN: 978-1-351-12203-0 (ebk)
Typeset in Times New Roman

by Swales & Willis Ltd, Exeter, Devon, UK
From Peter
To my loving wife Lin and my colleague David, who have generously
let me have time to write.
From Christian
To my wife Aida and my boys, Allan May and Abel Shimwe, for your
unwavering support and love.
Contents
List of illustrations xvii

Acknowledgements xxii
Preface for third edition xxiii
Foreword for third edition xxv
Introduction: an integrated approach 1

Project management process and product 1
Structure of the book 3
Definitions, standards and codes 4
Uses 7
Notes 8
1 Project life cycle and success 9

Project life cycle 9
Integrating construction 12
Project management 14
CASE STUDY 1.1 King Shaka International Airport, Natal 15
Programme and portfolio management 15
Project team roles 16
Project manager skills and functions 17
Ethical project leadership 20
CASE STUDY 1.2 Ethical contracting 21
CASE STUDY 1.3 Affordable rural housing 22
Project complexity 23
CASE STUDY 1.4 Construction complexity 23
Project management maturity models 25
Determining the critical factors for success 27
CASE STUDY 1.5 UK study on construction industry success 29
Conclusion 31
Notes 31
2 Building the client business case 33

Strategic issues: a case for business–project integration 33
Project constraints and client objectives 35
viii Contents
Presenting a business case 40
CASE STUDY 2.1 Testing the feasibility of new student
accommodation 41
Managing change in the business case 44
CASE STUDY 2.2 Olympic business legacy 44
CASE STUDY 2.3 Community infrastructure 45
Developing value in construction: the Gateway framework for
decision making 45
Project stakeholders 47
CASE STUDY 2.4 Stakeholder conflict 49
CASE STUDY 2.5 Stakeholder pressure 50
CASE STUDY 2.6 Internal stakeholder relocates headquarters 51
CASE STUDY 2.7 External stakeholders for a new swimming pool 52
Conclusion 53
Notes 53
3 Project development and evaluation 55

Project definition 55
Scope management 56
Determining the elements of project definition 57
A fuller picture of integration 58
Managing the client 60
Managing the design brief 60
Development management 61
Public view: cost–benefit analysis 62
CASE STUDY 3.1 Flood risk assessment 64
Feasibility and affordability 65
Appraisal techniques 66
CASE STUDY 3.2 Option appraisal for university
accommodation 69
External factors in feasibility assessment 73
Risk-based decision making 76
Conclusion 78
Notes 79
4 Construction procurement 80
Definition of the context 81
Life cycle procurement analysis 83
CASE STUDY 4.1 Procurement of social value 85
Risk and value 86
Change management 89
CASE STUDY 4.2 Client phase change 90
Planning and managing integrated procurement 91
Contents ix
Public–private partnership models 93
CASE STUDY 4.3 Waste management contract 97
CASE STUDY 4.4 Design quality in schools 98
Appointing consultants and contractors 98
Product and services liability 102
Standard construction contracts 103
CASE STUDY 4.5 Contract flexibility in Hong Kong 105
Conclusion 107
Notes 108
5 Planning and control 110

Definition and context 110
Project integration and systems 112
Project scope and breakdown 113
The master plan 115
Risk planning: identification and allocation 115
CASE STUDY 5.1 Political risk 116
CASE STUDY 5.2 Bridge revenues 117
CASE STUDY 5.3 Technology risk 117
CASE STUDY 5.4 Operational/design risk 118
CASE STUDY 5.5 Design risk 118
Project control 118
Time schedule (programme) 121
CASE STUDY 5.6 Slippage in design programme 122
CASE STUDY 5.7 Construction time schedule
management 123
Cost planning and control 125
CASE STUDY 5.8 Cost control or disaster 126
Quality planning and control 131
CASE STUDY 5.9 Example extranet protocol 135
CASE STUDY 5.10 An expert system for project cost 137
Conclusion 138
Notes 139
Appendix: the critical path method (CPM) 140
6 Design management and value 143

Nature of design 143
Integrated design 145
Design management 145
CASE STUDY 6.1 Design co-location 148
Client value systems 149
Value in design 149
Buildability 150
x Contents
Evidence-based design 150
CASE STUDY 6.2 Evidence-based design in hospitals and
faster healing 151
Ethics of design and value enhancement 151
CASE STUDY 6.3 Private housing development 152
CASE STUDY 6.4 A failed bridge 152
Design and construction integration 152
CASE STUDY 6.5 Design construction integration for a
specialist physical research facility 153
Offsite manufacture (OSM) 156
CASE STUDY 6.6 Panelised construction 157
CASE STUDY 6.7 Component-type prefabrication 157
Standardised design solutions 158
CASE STUDY 6.8 Standardised schools 158
Futuristic and innovative design 158
CASE STUDY 6.9 Winsun 3D printed house 160
CASE STUDY 6.10 Elon Musk tunnelling 160
Information flow 161
Change management in design 163
CASE STUDY 6.11 Design development change 165
The role of urban design 166
CASE STUDY 6.12 Quality of the built environment in the UK 167
CASE STUDY 6.13 City centre mixed-use development 168
Conclusion 169
Notes 170
7 Project organisation and leadership 172

Organisational structure 172
CASE STUDY 7.1 Typical seconded matrix organisation 176
CASE STUDY 7.2 Organisational structure of major
development projects 178
CASE STUDY 7.3 Optimising project organisational structures
in Egypt 179
CASE STUDY 7.4 Multi-project mixed-use development 181
Supply chain management 183
CASE STUDY 7.5 The ten commandments of the supply
chain alliance 185
Corporate culture and the business environment 186
International considerations 189
The role of partnering 190
CASE STUDY 7.6 BAA’s Pavement Team 193
CASE STUDY 7.7 Partnership testing and research feedback 194
CASE STUDY 7.8 Partnering contract for Terminal 5 194
CASE STUDY 7.9 Strategic business units 196
Contents xi
World-class performance 196
CASE STUDY 7.10 Highways Agency capability assessment 199
Leadership of projects 199
CASE STUDY 7.11 What it feels like to be led 202
CASE STUDY 7.12 Leadership survey 204
CASE STUDY 7.13 Richard Branson 205
CASE STUDY 7.14 National transformation 206
What is an integrated project team? 207
CASE STUDY 7.15 The collapsed tunnel of the Heathrow Express 207
Conclusion 208
Notes 209
8 Engineering the psycho-productive environment 212

Teamwork 213
Team leadership 215
Proactive behaviour 216
Motivation 217
Managing conflict 218
Stress and conflict 218
CASE STUDY 8.1 Stress in the construction industry 218
CASE STUDY 8.2 Negotiation to receive timely information 222
Communication 223
CASE STUDY 8.3 Health and safety information 226
Meetings 228
CASE STUDY 8.4 Communication in project meetings 228
Psycho-engineering the team 229
CASE STUDY 8.5 Typical characteristics of a common
Myers–Briggs type 233
Appreciative inquiry 236
CASE STUDY 8.6 Hypothetical AI for renewing schools for
a more sustainable future 237
Developing an integrated project culture 237
CASE STUDY 8.7 NEC use by EDF Energy at Heathrow
Terminal 5 239
Conclusion 239
Notes 240
9 Engineering the production process 242

Construction production process 242
Construction industry performance 243
CASE STUDY 9.1 Great structures 244
CASE STUDY 9.2 Striving for continuous performance 246
Measuring performance 246
CASE STUDY 9.3 Benchmarking and continuous improvement 247
xii Contents
Mapping the process 250
CASE STUDY 9.4 Estate management process map 250
Principles of lean and value 252
CASE STUDY 9.5 Toyota production improvements 254
CASE STUDY 9.6 Cultural development waste 255
CASE STUDY 9.7 Refurbishment of job centres 257
CASE STUDY 9.8 JIT accommodation 258
Lean construction 259
Modern methods of construction 263
CASE STUDY 9.9 Global cost comparisons 265
Construction performance 265
CASE STUDY 9.10 Logistical planning on construction
management fit-out 266
CASE STUDY 9.11 Prefabricated construction 267
CASE STUDY 9.12 Quality control of piling 269
Conclusion 270
Notes 271
10 Managing risk and value 274

Risk and value imperatives 275
Approaches to risk and value management 276
Integrating risk and value 278
CASE STUDY 10.1 Managing integrated risk and value 279
Sustainable value and the whole life cycle 280
The value management process 283
CASE STUDY 10.2 Functional definition 289
CASE STUDY 10.3 Value management at the early
concept stage 290
Definition and evaluation of risk 293
The risk management process 296
CASE STUDY 10.4 Inappropriate risk transfer 298
Risk attitude 298
Risk response and management 299
CASE STUDY 10.5 Asbestos management 300
Risk management techniques 301
Conclusion 305
Notes 306
11 Project safety, health and the environment 308

CASE STUDY 11.1 Accident figures in the UK, 2010–15 309
Accidents and near misses 310
CASE STUDY 11.2 Work-related stress and mental illness 311
Principles of modern health and safety 312
Health and Safety at Work Act 1970 (HSWA) 312
Contents xiii
Organisation of health and safety 314
CASE STUDY 11.3 Timber yard worker involvement 316
CASE STUDY 11.4 Bricklayers taking ownership of health
and safety 316
CASE STUDY 11.5 Manchester Royal Infirmary 317
Construction (Design and Management) Regulations (CDM) 319
Health and safety behaviour and culture 324
CASE STUDY 11.6 Pearl Gas to Liquids (GTL) Project in Qatar 325
CASE STUDY 11.7 Cultural development of health and safety 326
Behavioural health and safety 327
CASE STUDY 11.8 Motivation for personal safety 328
Product safety and liability 329
CASE STUDY 11.9 Door set compliance 329
Risk assessing health and safety 330
Risk controls 330
CASE STUDY 11.10 A risk assessment pro forma 332
CASE STUDY 11.11 Major disaster reports 333
Active and reactive measurement 334
Using causal factors to improve H&S 335
Good practice 336
CASE STUDY 11.12 Staircase collapse (hypothetical) 336
CASE STUDY 11.13 Plasterboard fixing improvements 337
Inspection and supervision: human factors 338
Conclusion 340
Notes 342
Appendix A: health and safety legislation 345
Appendix B: corporate manslaughter 346
CASE STUDY 11B.1 The first conviction under the
corporate manslaughter legislation (UK) 347
12 Sustainable delivery of construction projects 348

The scope of sustainability in construction design and delivery 348
Government targets 350
CASE STUDY 12.1 UK government targets 350
CASE STUDY 12.2 Greater Manchester housing retrofit partnership 350
The development control system and sustainability 352
Corporate social responsibility (CSR) 353
CASE STUDY 12.3 New corporate headquarters 353
Environmental assessment schemes 354
CASE STUDY 12.4 Kai Tak Nullah (KTN) river reconstruction 355
CASE STUDY 12.5 Comparison of Green Globe and BREEAM ratings 356
CASE STUDY 12.6 The United Welsh Passivhaus 357
CASE STUDY 12.7 BREEAM assessment for a further
education college 361
xiv Contents
Carbon use in the construction industry 362
CASE STUDY 12.8 The Leadenhall building 363
CASE STUDY 12.9 Sustainable school design to improve learning 364
Sustainability onsite 365
CASE STUDY 12.10 Considerate Constructor Scheme 366
CASE STUDY 12.11 Clayfield Construction 366
Sustainable procurement 367
CASE STUDY 12.12 The 2012 London Olympics 367
CASE STUDY 12.13 Eco Reinforcement company registration scheme 370
CASE STUDY 12.14 Local straw bale modular panels 371
Carbon reduction and climate change in delivery 372
CASE STUDY 12.15 Zero-carbon building targets: the case
for NHS England 372
CASE STUDY 12.16 Biomass boiler 374
Carbon reduction in design and services 376
CASE STUDY 12.17 Asda Stockton retail base case 376
Carbon reduction in production 377
Environmental management systems (EMSs) 380
CASE STUDY 12.18 Large contractor environment
management system 380
Conclusion 381
Notes 382
13 Digital construction 385
Digital construction strategies 386

CASE STUDY 13.1 Building information management
in the UK 387
Integration and collaboration 388
Cloud technology 390
Building information modelling (BIM) 390
CASE STUDY 13.2 Utilising BIM to reduce work and collect
digital design data 395
CASE STUDY 13.3 BIMXtra: Springfield Primary School 400
CASE STUDY 13.4 BIM process in building the Shanghai
Tower 402
CASE STUDY 13.5 Information modelling ownership in NEC4 404
Digital information management 405
CASE STUDY 13.6 Social data to democratise approval 406
Other technologies 407
CASE STUDY 13.7 Site layout logistics 409
CASE STUDY 13.8 SAM 100, the robotic bricklayer 411
CASE STUDY 13.9 Singapore’s digital twin 412
Conclusion 413
Notes 414
Contents xv
14 Quality and customer care 417
Definition 418
The threshold for construction quality 418
CASE STUDY 14.1 UK government Common Minimum
Standards and quality 418
CASE STUDY 14.2 Sustainable standards 419
CASE STUDY 14.3 UK construction waste and rework 420
Handy’s principles of customer care 421
CASE STUDY 14.4 The Skye Bridge 422
CASE STUDY 14.5 Customer care in private housing 423
CASE STUDY 14.6 Client satisfaction: use of a pact to gain
mutual commitment 424
Quality management 427
CASE STUDY 14.7 Quality control of piling 428
Quality management and culture 430
CASE STUDY 14.8 Quality improvement through teamworking 431
CASE STUDY 14.9 Bekaert Fencing 433
CASE STUDY 14.10 Developing the TQM culture 434
Implementing a construction project quality plan 434
CASE STUDY 14.11 Client accounts 435
Conclusion 436
Notes 437
15 Project close out and systems improvement 439

Completion stages 440
CASE STUDY 15.1 Centre for Mathematical Sciences 442
CASE STUDY 15.2 Stage visits on a housing project 444
Soft landings 446
Project reviews and benefit realisation 449
CASE STUDY 15.3 Heathrow Terminal 5 451
CASE STUDY 15.4 Learning from hospital design 453
CASE STUDY 15.5 Double-loop learning leading to innovation 454
CASE STUDY 15.6 SMEs sharing best practice 456
CASE STUDY 15.7 Degree apprenticeship at the University
of Brighton 457
Integrating facilities management issues 459
Conclusion 461
Notes 463
16 Conclusion: future construction 465

Future city systems 467
Explaining the model 468
CASE STUDY 16.1 Risk and value: the Andover North Site
Redevelopment 468
xvi Contents
CASE STUDY 16.2 HS2 and its impact on future flourishing of
Northern cities 470
CASE STUDY 16.3 Worldwide Responsible Accredited Production
(WRAP) scheme 470
Quality 471
CASE STUDY 16.4 The Edge, Amsterdam 473
Considerate contractors 474
CASE STUDY 16.5 High-performing sustainable buildings 475
CASE STUDY 16.6 Resilient buildings 476
CASE STUDY 16.7 Transformative ability for community
development 477
CASE STUDY 16.8 The Bemrose School 479
CASE STUDY 16.9 Development control and wellbeing 480
Ownership 480
Conclusion 481
Notes 481
Glossary 483
Index 489
Illustrations
Plates
9.1 Panelised concrete in construction 259
9.2 Panelised concrete in construction 259
13.1 Artist’s impression of Shanghai Tower (right) 403
Figures
0.1 Structure of PRINCE2 themes and processes 6
1.1 Life cycle of construction projects 10
1.2 The three dimensions of project management control 14
1.3 Project structure diagram: executive PM model 16
1.4 Factors of success 28
2.1 Project development process 34
2.2 Balancing constraints and objectives 36
2.3 Process of developing brief from objectives 37
2.4 Project objectives: time, cost and quality 39
2.5 A single priority for the local authority 39
2.6 A double priority for the National Olympic Organising Committee 39
2.7 The Gateway procurement life cycle 46
2.8 Internal and external stakeholders 48
2.9 Matrix for mapping stakeholders 48
3.1 Integration of project scope with life cycle 57
3.2 Development of brief showing early RIBA Plan of Work stages 58
3.3 Project definition process 59
3.4 Cost–benefit matrix 63
3.5 Projects for external clients 73
3.6 Complex relationships 74
3.7 The cost of change 77
3.8 Risk-based decision making. 77
4.1 Selection of the project team 84
4.2 Procurement and the allocation of risk 87
4.3 Relationship of risk attitude to risk behaviour 89
4.4 Procurement sequencing showing risk distribution in procurement types 93
xviii List of illustrations
4.5 PPP versus conventional capital project procurement options 94
4.6 Key stages of a typical competitive dialogue process 96
5.1 Elements of planning and control at different stages 111
5.2 The basic system 112
5.3 Construction control systems: (a) time subsystem and (b) cost subsystem 112
5.4 Project subsystems 113
5.5 Integration of project scope with life cycle 114
5.6 Work breakdown structure for a clean room facility design 114
5.7 Feedback control system 119
5.8 Feed-forward control system 119
5.9 Control bands 120
5.10 Reprogramming within the critical stage dates 122
5.11 Earned value cash flow chart from contractor’s viewpoint 128
5.12 Connection between client cash flow forecast, budget, commitment
and payment 130
5.13 Quality planning and delivery 132
5.14 Hierarchy of PMISs in relation to the database management system 133
A5.1 Gantt chart activity 140
A5.2 Two Gantt chart activities with a logical link 140
A5.3 Precedence activity: activity on node 141
A5.4 Links between activities 141
A5.5 A precedence: (a) lead link and (b) lag link 141
A5.6 Critical path A–B–D 141
6.1 Iterative design process 144
6.2 Comparison of design development methods 144
6.3 Stages of the RIBA Plan of Work 147
6.4 (a) Project information flow and (b) information flow with BIM 162
6.5 Procurement programme for construction work 162
7.1 Authority: functional, project and matrix organisation types 174
7.2 Typical organisational structure for a medium-sized project 176
7.3 (a) Centralisation and (b) decentralisation 178
7.4 A construction project involves a number of independent organisations 180
7.5 Complex matrix of firms and projects 181
7.6 Multi-project organisational structure 182
7.7 Project supply chain 183
7.8 Role of SCM in addressing the key problems in construction 184
7.9 The relationship between business environment and business culture 186
7.10 Hofstede’s cultural dimensions 189
7.11 The key elements of partnering 191
7.12 EFQM model for business excellence™ 198
7.13 Relationship change, innovation, learning and leading 205
8.1 Adaptation of Tuckman’s four stages of team development 214
8.2 Project leadership 215
8.3 Different ways to resolve conflict 221
List of illustrations xix
8.4 A general communication system 224
8.5 Belbin’s nine roles 230
8.6 Myers–Briggs type table 233
8.7 Killin and Murphy conflict pairs 235
8.8 Montgomery’s summary of temperament compared with the
MBTI’s types 235
9.1 Project stage KPIs and sustainability 249
9.2 Process map for small projects using design services 251
9.3 Deming’s cycle of learning 253
9.4 Balanced flow for next planning period with an overlapping series
of activities 261
9.5 Comparison of the lead-in and construction times of different MMC
and traditional construction 264
9.6 Diagrammatic view of a corridor unit 267
9.7 Steel framework with unit within 268
10.1 The cost of change 276
10.2 The make up of value 277
10.3 Value–risk prioritisation 279
10.4 Indicative range of cost and value over a building’s life cycle 281
10.5 Relationship of function analysis to project life cycle (traditional) 288
10.6 FAST example of a system to keep a building at a constant temperature 290
10.7 Office refurbishment 291
10.8 The risk management process 296
10.9 Rating significant risk 296
11.1 (a) Relationship between reportable and non-reportable accidents and
(b) relationship between near misses and reportable accidents 311
11.2 Organisation to show responsibilities 315
11.3 CDM co-ordinating process 320
11.4 A management framework for health and safety 324
11.5 Risk priority grid 331
11.6 Alternative risk priority grid 332
11.7 Diagrammatic of staircase 337
A11.1 The framework directive and daughter directives 345
12.1 Proportionality of total carbon emissions 349
12.2 Life cycle model of carbon use showing embodied energy 351
12.3 Cross-section of the river and culvert overflow 355
12.4 Integrating the carbon saving effort in buildings 362
12.5 Procurement process and sustainability input 367
12.6 SWMP monitoring table to track and target waste material 379
12.7 Typical waste management layout 379
12.8 EMS process chart 380
13.1 Integrated construction environment 389
13.2 BIM common data environment 392
13.3 BIM maturity diagram levels 0–3 397
xx List of illustrations
13.4 The BIM process 401
13.5 BIM execution plan in NEC4 405
14.1 Components of quality and their outcomes 425
14.2 The Pareto principle for defects and causes 426
14.3 Deming’s PDSA cycle 427
14.4 Quality assurance system 430
15.1 Chain of commissioning and completion 440
15.2 Construction inspection and commissioning 443
15.3 Soft landings: review and feedback 448
15.4 Benefit management plan 451
15.5 Learning by doing 455
15.6 BIM model exchange 461
16.1 Future cities and wellbeing 466
16.2 Intelligent design 472
16.3 Timeline of the Bemrose School project 479
Tables
1.1 Integration variables connected to terms used in this book 13
1.2 Role of project team members at each stage of implementation 18
1.3 Comparison of building complexity 24
1.4 Project maturity levels 26
1.5 Selected research into factors for success in projects 27
1.6 Some reports indicating the need to improve construction success in the UK 29
2.1 The difference between client and project objectives 35
3.1 Comparative examples of the elements of cost–benefit analysis 63
3.2 Hierarchy of investment appraisal techniques 66
3.3 Payback method 66
3.4 Net present value method for capital cost and five-year income 67
3.5 Example of IRR on the example above, but with six-year income 68
3.6 Sensitivity analysis for financial factors on option appraisal 71
3.7 Developer’s budget for office block 72
4.1 Client priorities linked with procurement features 85
4.2 Comparative financial risk to client of different procurement types 88
4.3 Illustrative example of a balanced scorecard 101
4.4 Four internationally adopted collaborative construction contracts 103
5.1 Hierarchy of time schedule control 124
5.2 Pre-contract cost planning 125
5.3 Cost management during construction 126
5.4 PMIS matrix 134
5.5 Communication plan 136
6.1 Comparison of different standard design school systems 159
6.2 Freeze points for change 164
6.3 Impact of building on the environment 166
List of illustrations xxi
7.1 Influence of organisational structure type on projects 175
7.2 Roles assigned in Case study 7.1 177
7.3 Handy’s cultural categories: advantages and disadvantages 187
8.1 Main causes of conflict at various stages of the project life cycle 219
9.1 Method statement to build a plastered wall using resource levelling 262
10.1 Life cycle cost elemental breakdown 283
10.2 Functional analysis levels 288
10.3 Continuum of VM workshops through the project life cycle 292
10.4 Risk assessed by monetary value 297
10.5 Assessment methods for speculative risk 302
10.6 Assessment methods for risk management during the project 303
11.1 Enforcement regimes in five countries 312
11.2 Action planning for the health and safety policy 315
12.1 Comparison of main sustainability criteria 356
12.2 Comparison of the metrics for LEED, BREEAM, Greenstar and
CASBEE 359
12.3 BREEAM 2008 environmental weightings 360
12.4 Sustainable materials management 369
16.1 Anatomy of high-performing buildings 475
Acknowledgements
We would like to acknowledge the many people who have provided information for our
case studies. We are also grateful that we could access information on the internet concern-
ing other case studies to inform our own research. This sharing of experiences helped bring
the book to life. We have tried to be faithful to the spirit of each case study and apologise if
inaccuracies have crept in. The case studies are intended to demonstrate best practice and any
mistakes are ours alone.
Our thanks to Roger Flanagan, Past President of the Chartered Institute of Building, who
was kind enough to write our Foreword, and the Chartered Institute of Building, which sup-
ported us. We mention Dr Georgios Kapogiannis, who kindly agreed to write a chapter on
building information modelling (BIM); however, for the sake of consistency it was replaced
by a chapter on digital construction. We would also like to thank Simon Sherratt who patiently
read through many of the chapters for lucidity.
We are grateful to our editor, Ed, for affording us accommodation in the Oxford office
so that we could meet as widely separated co-authors, and also for the wise counsel he and
others gave to us, and to Patrick and Catherine who provided administrative support. Also
thanks to Kate for her unstinting work on our manuscript to make it flow better.
We especially thank our families who have put up with us being constantly preoccupied
with our deliberations and our managers who have afforded us writing time. We hope that the
new edition will be worth it and add to a wider debate.

Preface for third edition
Integrated project management

In this third edition we welcome the new emphasis on integration in the construction industry,
which we have always espoused as the close working relationship between the client, design
and the delivery supply chain so that objectives and information are transparent throughout.
We make our argument for integration clearer throughout the text and have introduced a
model for integrated building design and delivery in Chapter 1. Traditional procurement is
still used alongside broader approaches; however, clients commissioning medium to large
projects are now increasingly entering the process more fully and insisting on the use of inte-
grated modelling of information so that the benefits of digitised construction can offer new
solutions and maximise building productivity. These more direct methods of manufacture
have the potential to change the role of the project manager and widen their skills. The plan-
ning for future construction in the final chapter emphasises and promotes wellbeing as well as
sustainability. The drive for economic prosperity is tempered by public interest in enhancing
quality of life, which may be achieved in part through the quality and appropriateness of the
built environment and the effective ordering of new neighbourhoods and workplaces that
fulfil greater expectations to balance leisure, family and work activities.
We have reflected digitised construction by introducing a chapter including information
on building information modelling and also a specific chapter on procurement choices that
meet different client objectives and ways of working. We have incorporated our comments on
supply chain management and public–private partnerships (PPPs) in the procurement chap-
ter more broadly and supply chain management in the organisation chapter. Attempts are
made to give some international perspective to the chapter discussions by describing country-
specific initiatives in case studies. These case studies do have a degree of bias focused on
the UK and its procurement systems; however, where material has been accessible to us we
have broadened the examples given or used comparisons where systems vary from country
to country. PPPs are used widely across many countries and we have used our own research
to critically appraise examples that show different uses.
Sustainable design is important at both the global level, in terms of the impact of building
emissions on climate change, and the individual country level, in relation to responsible use
of scarce resources in construction. We now address the issue of meeting carbon reduction
targets in construction projects.
Some of the structural revision evident in this third edition is in response to feedback
requesting that more explanatory material be provided. As a result, this edition will be even
more useful for both university students and practitioners. For example, some chapters have
been renamed to reflect course material and a clearer definition of the integrated approach is
xxiv Preface for third edition
modelled in Chapter 1 and embedded in each chapter. More case studies have been provided
throughout, illustrating global best practice to aid understanding. The life cycle approach of
the Chartered Institute of Building (CIOB) is used in this book to maintain a link with its
Code of Practice for Project Management and Development, and reference is also made to
its various project management bodies of knowledge (BoK). Chapters can stand alone but
some concepts extend across chapters and cross-references are thus supplied in addition to
the Index to enable the reader to navigate the material.
Christian Henjewele is now a co-author of this edition, bringing with him a wealth of
international experience.

Foreword for third edition
Designing and delivering construction projects is getting more complex, caused by a

fast-moving and changing world, with more legislation and regulations, and increasing gov-
ernance requirements. Both public and private sector clients expect more; they want high
quality, environmentally-friendly projects, delivered on time and on budget, with no sur-
prises. Safety, health and well-being on the job site is important. Digitisation has changed the
way projects are designed and information communicated. It requires reliable, robust, fast
and effective communication systems. It is no longer an excuse to say something is in the
post! Sustainability matters to everyone, with the minimisation of waste, recycling of materi-
als, elimination of pollution, harvesting of rainwater, responsible use of energy and reduction
of carbon footprints all pre-requisites for good projects.
Project management processes must adapt to this new world. The time–cost–quality tri-
angle is still at the core, but sustainability, health and safety, ethical requirements, social
responsibility and security are firmly embedded within it. The keyword is integration; that is
why this book is so valuable. Project managers of tomorrow need new competencies and new
ways of working that embrace modern technology and communication systems.
Integrating the different and fragmented processes in the supply chain and within the
design team is the responsibility of the project manager. No longer can project managers
monitor events; they must manage events, using dynamic tools. The Oxford Dictionary states
that integration is to: ‘combine [one thing] with another to form a whole, bring (people or
groups with particular characteristics or needs) into equal parts, to mix with and join society
or a group of people, often changing to suit their way of life, habits, and customs.’ A good
definition, but most importantly this book describes how to integrate.
Construction Project Management provides a good overview of the project management
process from different perspectives. It uses case studies to make ideas come alive. It is a
good blend of theory and practice. Project managers today must deal with new procurement
approaches, new technologies and the management of uncertainty and risk. Design for manu-
facturing and assembly means more off-site assembly, which requires the project manager to
integrate off-site with on-site requirements. The text considers how digitisation is changing
the design and production process, with integration the key. Good project management is
about creating a vibrant, fully-integrated, more predictable and productive industry such that
traditional working and new approaches can co-exist and complement each other, driving
longer-term benefits for the client and society.
Societal pressures require social responsibility on the part of the design and construction
team. Construction work is highly disruptive, whether that be as the result of noise, vibra-
tion, pollution or congestion. Companies are looking at how they can give something back
to society and how projects can create work opportunities for different sectors of society.
xxvi Foreword for third edition
The book clearly states that project management must address the changing and wide-ranging
needs of society.
The authors have a lot of practical experience and this third edition is built upon two
previous editions that were widely recognised as excellent. The book makes a valuable con-
tribution to knowledge. We often over-estimate our abilities and under-estimate what can
go wrong. This may be the result of naivety or just plain wishful thinking, without taking
adequate account of the risks involved in delivering a construction project. This book fills the
gap between theory and practice; it helps to ensure the project manager has the right tools and
techniques, grounded in reality. I am pleased to recommend it to aspiring and experienced
project managers.
Roger Flanagan Past President of the Chartered

Institute of Building
November 2018
Introduction
An integrated approach
Many books have been written on project management and there are two approaches. One
deals mainly with the tools and techniques of project management and provides instruction
on what they are and how to use them. The other approach takes a managerial viewpoint
and is concerned more with the context and the way in which decisions are made and the
tools which are most appropriate in that situation. The third edition of this book remains
allied to the integrated managerial approach, analysing how techniques have been applied in
traditional and best practice and synthesising additional guidance on evaluating contextual
factors that make each construction project unique and meet the client requirements. An
integrated approach is about bringing the client into the project team and defragmenting
the separation of design and construction, client and users. Many processes also need to
be integrated, such as risk and value, time and cost, quality and functionality, and we have
attempted to provide a hierarchy of integration relevant to construction project management
in Chapter 1. We have also added a social, human model for future construction at the end.
Project management process and product

It is important to look at both the functionality of the product (effectiveness) and the effi-
ciency of the process, and this means a closer relationship between the client and the whole
project team, including during the processes of definition (briefing), strategy, design and con-
struction. Project management has an important role to play here in terms of understanding
the client’s business as well as the project objectives and incorporating these in the design,
method and sequence of the finished construction.
In construction there is a long history of project management and standard systems have
been set up that have become comfortable but have not always produced best value for the
client. Every project is different and has a unique location and final product. That means pro-
jects test the prototype in the process of delivery, so construction is a constant learning curve.
Right first time is a particular challenge to an industry that has not standardised its products.
The industry is also quite fragmented, with many inexperienced clients, separate develop-
ment control, and design and construction organisations. The development control process
can be complex and elongated for the client who wants to release their business objectives
to capture a current market but has to satisfy a wider range of stakeholders, including the
planning authority. The supply chain can often be quite long with some detailed design pro-
vided at a second- and third-tier level of engagement with little direct labour provided by
the main contractor. This presents additional challenges to the construction project manager
who needs to co-ordinate the design and construction sides and make decisions based on the
promises of others.
2 Introduction
Delivering to the tight time, cost and quality targets that are set by most clients is a particu-
lar challenge. In response, construction has had to adopt a much more client-orientated view.
This view allows for alternative procurement strategies whereby design and construction are
much more integrated and opportunities for the development of the brief are recognised in
order to take account of project constraints and ongoing business opportunities. Risk man-
agement is about managing uncertainty and opportunity in the context of increasing client
value. Each risk needs to be owned by the party who has the most experience to manage it.
Value management in its simplest sense is a way of reducing waste in order to maximise pro-
ductive output. Recession is also likely to affect supply chain relationships and may weaken
collaboration between the client and the contractor, where competition is desperate and trans-
parency is reduced. Trust can be negatively affected in these circumstances.
An integrated approach is ideally one that draws the client, designer and contractors into
a virtual organisation that is able to effectively share information and ideas to produce an
optimum and efficient solution regardless of market conditions. On balance, this happens as a
result of trust built up through ongoing partnerships that produce an improvement continuum
to everyone’s benefit.
Blockages in construction
Wolstenholme1 suggests that there are four blockers in construction:
• Business and economic models used by clients to drive development are based on short-
term aims and construction is viewed as a commodity and not a driver to improve quality
and lever value during the life of a building.
• The industry is not good at attracting and retaining capable leadership and talent; is
limited by its poor image, lack of holistic thinking and purpose; and its narrow degree
courses and inferior graduate development means no one leads.
• Not integrating standard delivery models (procurement) has impeded the improvement
cycle and produced poor value, poor focus on preplanning and a lack of transparency
that fails to drive out waste in design and construction.
• Lack of a single coherent voice means that the complex nature of construction projects
fragments the industry and pushes different disciplines and clients into silos so that co-
ordinated improvements are difficult to achieve because the big picture is obscured.
Some countries have successfully tackled elements of these blockers, which are not inevita-
ble, and governments, project managers and clients all have roles to play.
People
Project management is at least 50 per cent people management. This book emphasises the
importance of people skills, organisational structures, leadership and trust. Interpersonal
skills are gained from experience so the purpose of the discussion is to raise awareness of the
importance of these skills and the ways in which they might be developed in different situ-
ations. It will cover the issues that arise in managing a supply network and communicating
across a broad inter-professional team. It will support the concept of leadership and innova-
tion and look at ways of developing competence in negotiation, delegation and motivating
teamwork in the specific context of construction and engineering projects. It evaluates some
formal structures and processes that recognise the increasingly key role of developing people
Introduction 3
for the project. With leadership and better communication these have the potential to improve
teamwork and interpersonal skills in construction projects where there are complex diverse
specialisms. The development of leadership in the context of project structures and culture
is covered in Chapter 7; synergistic teamwork is of particular interest in Chapter 8; and a
cultivation of productivity using the lean construction approach is described in Chapter 9.
Sustainability
Sustainable buildings are achieved by integrating strategies for design, delivery and build-
ing use. These strategies can interfere with each other, but a passion and desire to educate
and change attitudes begins in the business case. Buildings as major energy users with large
carbon footprints need to be appropriately designed to promote responsible use of scarce
resources throughout the life of the building. They have major potential to improve ecol-
ogy locally and to reduce pollution globally. However, lifestyle changes go hand in hand
to reduce consumption such as waste reduction and recycling. These changes are gradually
introduced and in time familiarity reduces the costs to normal. Climate change is a key design
factor in new buildings and may require modification to existing building designs. Health
and safety improvements are seen as integrally tied up with sustainability, but are dealt with
separately in Chapter 11.
Structure of the book

Some chapters of this book refer to the life cycle stages of a construction project so that the
reader can cross-reference the material with the Chartered Institute of Building’s Code of
Practice for Project Management for Construction and Development. However, this book is
designed to stand alone in offering best practice guidance for construction professionals and
our views are not necessarily those held by the CIOB Working Group. We have tried to use
the same terminology as the CIOB2 in our life cycle diagram to ease cross-referencing. The
managerial approach focuses on decision making; other chapters refer to processes.
The chapters which address the construction project life cycle directly are as follows:
• Inception (2)
• Feasibility (3)
• Strategy/planning (5)
• Procurement and design (4 and 6)
• Production (9)
• Testing and commissioning (15)
• Completion, handover and post-completion review (15)
Many chapters develop specific themes, such as project organisation and supply chain man-
agement (7), people (8), risk and value management (10), health and safety (11), sustainable
delivery (12), information modelling (13) and quality (14), which can be applied to many life
cycle stages. These chapters are integrated with the life cycle chapters and cover themes that
are relevant at several life cycle stages.
The key features that together differentiate this book from other texts are the provision of:
• An integrated approach to hard and soft management issues at all stages of the construc-
tion project cycle, including building information modelling (BIM).
4 Introduction
• An open systems approach emphasising the key role of managing external factors and
sustainability in achieving project success and levering business case building benefit.
• An acknowledgement of the key role of integrated forms of procurement, such as part-
nering and public–private partnerships (PPPs), as a means to encourage clients and
project professionals to work together more closely and to induce longer-term commit-
ment to the asset (Chapter 4).
• A recognition of the need to engineer environments in production and people manage-
ment that raise productivity (Chapters 8 and 9).
• An integration of the societal impact on the built environment (Chapters 12 and 16).
Definitions, standards and codes

A project is defined in BS 6079-1:20103 as
A unique set of co-ordinated activities with definite starting and finishing points, under-
taken by an individual or organisation to meet specific objectives within defined schedule,
cost and performance parameters.
It is important to understand how the definition of a project can apply to many types of activ-
ity and not just construction. A project manages change. Features of a project may include
aspects of uniqueness and uncertainty, but all projects are goal-orientated, encounter a par-
ticular set of constraints, must produce measurable output and involve the formation of a
temporary organisation.4
The CIOB5 defines project management as follows:
The overall planning, co-ordination and control of a project from inception to comple-
tion, aimed at meeting a client’s requirements in order to produce a functionally and
financially viable project that will be completed safely, on time, within authorised cost
and to the required quality standards.
On the other hand, it is important to recognise the independent role of mediating the client’s
interests within the specifics of managing and integrating the project team, giving considera-
tion to the needs of the eventual user and providing feedback from other stakeholders who
will also need to be managed.
Programme management is the management of several related parallel or sequential
projects. A programme provides co-ordinated management for projects of a similar nature
in different locations, such as fitting out a series of banking outlets. Alternatively, the pro-
gramme will relate a construction project to ensuing projects, which build on the construction
project but are delivered by different project teams, such as IT provision.
Portfolio management is a senior management process that ensures that the right pro-
grammes and projects are selected to realise the optimum benefits to the organisation. It is
a co-ordinated collection of strategic processes and decisions that together enable the most
effective balance of organisational change and use of resources.6 It is about choosing the right
change and timing of subsequent projects and not the change management process itself. It
typically manages all the organisation’s projects, but may be broken down geographically or
strategically in very large organisations.
Project definition is the development of the project brief and scope. In this phase the
project requirements are tested and specified as clearly as possible, so that the risks have been
identified and the value for money has been optimised to suit business needs.
Introduction 5
Agile project management or agility is the process of a project that has only rough
requirements and works iteratively in short bursts to clarify the project deliverables that meet
the client’s requirements. In one scenario, a democratic stakeholder process, such as a com-
munity project, would establish a firm plan by working through a series of alternatives that
will then be managed to optimise value. In another scenario, the fast pace of change in busi-
ness environments requires a flexible approach to the end project.
Benefits management is defined as the management of ‘the improvement resulting
from an outcome perceived as an advantage by one or more stakeholders, which con-
tributes towards one or more organisational objectives’,7 which is client-orientated in
justifying expenditure in tangible ways over the life cycle of the asset. There is also a need
to define success.
Body of knowledge (BoK) methodologies

The three well-known project management institutions that support and certify the area
of project management – the Chartered Institute of Building, the Chartered Association
for Project Management and the American Project Management Institute – have produced
documentation called body of knowledge (BoK) that defines the generic competencies of
a project manager. They also offer project management training in competently acting as a
member of a team and in assessing their level of competence. Each of these has an interna-
tional readership as membership is worldwide.
The CIOB’s Code of Practice for Project Management for Construction and Development8
is regularly updated, specific to construction project management and uses the language of
construction and civil engineering, which makes it most relevant to this book. It follows a
life cycle approach of eight sequential stages, from inception to completion, with a series of
briefing notes that cover the relevant processes.
The Association for Project Management APMBoK (sixth edition)9 breaks down 69
competencies into four sections – context, people, delivery and interfaces. It is internation-
ally recognised through the International Project Management Association (IPMA). The
APMP exam is a test on the knowledge of these areas internationally accepted at entry
level D. Level A recognises mature advanced practice. It will launch its seventh edition in
2019,10 which is divided into more sections, but particularly takes on board ‘an increasingly
volatile, uncertain, complex and volatile world’. The APM operates on the basis of a series
of special interest groups.
The American Project Management Institute PMBoK (fifth edition)11 is generic and talks
about five basic processes: initiating, planning, executing, monitoring and controlling, and
closing. These are clearly linked to the life cycle of a project mentioned earlier. Processes
overlap and interact in each phase and include inputs, tools and techniques applied and
outputs. These project management knowledge areas refer to the processes relevant to that
area. There are equivalent tests of competence in knowledge and practice in the Project
Management Institute (PMI) BoK documentation.
PRINCE2® methodology12
PRINCE2:2009®13 is termed a ‘process-based method’ for project management and the
acronym stands for PRojects IN Controlled Environments. It was authored by the Office
of Government Commerce (OGC) but is now run by Axelos, which provides training and
certification of practitioners. It describes procedures, roles and responsibilities to co-ordinate
people and activities in a project, including designing, supervising and change management.
6 Introduction
Corporate programme management

authorise. Appoint PM
Change control Business case
Directing a project DP
Organisation
Controlling a Managing
Starting up a Initiating a
stage of project stage SB
project SU project IP
CS boundaries Closing a
project CP
Quality
Plans
Managing MP
Management
product delivery
of risk
Controls
Planning PL
Figure 0.1 Structure of PRINCE2® themes and processes (adapted from PRINCE Crown Copyright)
It recognises the six variables of time, cost, quality, scope, risks and benefits. The common
language is useful as it is widely used; however, it is not so well used in construction projects
but may be better recognised by clients. It does not deal with competencies and as such is
not a BoK. It gives a flexible framework to work within for all sizes of project, including
agile projects, but does not tell you how to do it. It identifies the life cycle stages of starting
up, initiating, controlling, managing stage boundaries and closing a project. The format of
PRINCE2® is as adapted in Figure 0.1.
The project manager is responsible for directing the project for its entire duration and for-
mally starts up the project by producing the risk log and the project brief, initiating a project
team and outlining a plan for the initiation stage. The initiation stage develops the business
case and the detailed project plan making sure of a management structure. They work with
and report to the project board.
Managing stage boundaries is a scoping, viability and progress exercise to ensure the brief
and other parameters are up to date, whilst controlling a stage of a project is a much more
detailed control of the life cycle stage in procuring packages to do a work stage and review-
ing time, cost, quality, risk and value in an integrative way. The managing stage boundaries
report may cause the project board to terminate a project. The managing product delivery is
a subset of control with ongoing managing of the detail of the package programme, cost and
quality to deliver the product.
Closing a project means bringing it to an end and handing over to the user in an ordered way.
The planning process is product based and determines the products needed, their content
and their sequencing. However, it does consider things like risk and change control needed
to manage the product sequence, cost and specification. This leads to a consideration of
PRINCE2® components now known as themes. In PRINCE2® these are a mixture of manage-
ment and technical stages:
Introduction 7
• Management components are planning, organisation, management of risk and controls.
Management stages are a project stage that spans two important management decision
points identified on the overall programme. They identify roles and detailed product
sequences and regular controls and report on progress to facilitate decisions such as
change and work package authorisation.
• Technical components are required to develop the products through the technical life
cycle stages of design, build and implementation and deal with the quality reviews and
costing of the various work packages. This requires the application of change control for
each product outcome.
An extensive glossary of terms has been concisely defined for use in PRINCE2® projects.
For example, an exception report is one that explains an issue which falls outside the band of
tolerance for its performance. This common language is a useful tool where so many terms
have different applications in different project environments. However, this benefit also leads
to it being described as a bureaucratic system. This can be tackled by simplifying it to suit the
size and uniqueness of a particular project. PRINCE2® is used internationally. Certification is
available at foundation, practitioner and agile levels.
The CIOB’s Code of Practice for Project Management for Construction and Development
(CPCPM), mentioned previously,represents best practice for construction and property and
as such has a very similar role to that of PRINCE2®. The BoKs have been derived to define
the competency of its members and their use is similar and covers a lot of the same material.
The profusion of different guides can cause confusion due to the different use of language
so, in this book, the language of the CPCPM14 has been primarily used as it is sector-specific.
Some comparison with the other sources have been made in order to illuminate best practice.
An international project management code is now available: ISO 21500.15
Uses
The text should be of great use to those who are completing their studies in construction
and project management or newly-emerging practitioners. To support this aim, key concepts
have been introduced and developed at the beginning of each chapter. This will also give a
proper foundation for the development of innovative practice, which will be discussed in
some chapters, drawing on current research and appraising the way forward for practitioners.
Although much reference is made to documentation and case studies in the UK and European
context, the research carried out suggests that the practical applications and challenges for an
integrated project management approach apply to most countries, so it is hoped that a wider
readership will be able to use this book fruitfully.
In its digital version the chapters are stand-alone and topics can be searched through a
series of key words added to each chapter. Any comments on the book will be welcome.
It is assumed that the reader has some knowledge of construction terms, but a wider
Glossary is available at the end of the book to make these clearer. Key definitions and
concepts have been covered in the text and a particular feature of the text is to relate
construction project management to management theory where relevant for greater under-
standing of the context.

January 2019
8 Introduction
Notes
1 Wolstenholme A. (2009) Never Waste a Good Crisis: A Review of Progress since Rethinking
Construction and Thoughts for Our Future. London, Constructing Excellence.
2 Chartered Institute of Building (CIOB) (2014) Code of Practice for Project Management for
Construction and Development. 5th edn. Chichester, Wiley-Blackwell, Figure 0.2, p. 4.
3 British Standards Institution (2010) BS6079-1: Principles and Guidelines for the Management of
Projects. London, BSI.
4 Maylor H. (2003) Project Management. 4th edn. Harlow, Financial Times Prentice Hall, pp. 4–5.
5 CIOB (2014), pp. 2, 5.
6 Office of Government Commerce (OGC) (2011) Management of Portfolios. London, The Stationery
Office.
7 Infrastructure and Projects Authority (IPA) (2017) Guide for Effective Benefits Management.
London, IPA.
8 CIOB (2014).
9 Association for Project Management (APM) (2012) Project Management Body of Knowledge. 6th
edn. High Wycombe, APM.
10 Association for Project Management (APM) (2018) APM Body of Knowledge. 7th edn. Consultation
Report, June. High Wycombe, APM.
11 Haughey D. (2013) Project Management Body of Knowledge. 5th edn. Upper Darby, PA, Project
Management Institute.
12 ILX Group (2009) PRINCE2® 2009 Foundation User Guide. Nantwich, ILX Group.
13 Office of Government Commerce (OGC) (2009) PRINCE2:2009 Refresh. London, The Stationery
Office.
14 2014 version.
15 International Organization for Standardization (ISO) (2012) ISO 21500:2012 – Guidance on
Project Management. Technical Committee ISO/TC258.
1 Project life cycle and success
Project management (PM) is not a new concept, but it has emerged since the Second World
War as a methodology that can be applied to intensive periods of bounded work with a spe-
cific objective, which can be isolated from general management so that expenditure can be
ring-fenced and the synergy of a team is engaged. By definition it is temporary, with a start
and a finish, and it integrates across specialities to deliver a whole. However, not all manag-
ers are able to cope with the dynamic nature of projects, where decisions have to be made
fast and planning and control have to be very tight. Large projects such as the NASA space
programme, the Polaris submarine programme and the Channel Tunnel developed techniques
for project management that have set a pattern for subsequent ones. These projects have also
had to develop specific roles and create management structures to suit and satisfy various
interests, both within the project and contract and outside. Many tools and techniques are
specific to PM, but some have been borrowed from general management. Construction work
in particular lends itself to project management because of its temporary and unique nature,
but sometimes fails in its collaborative aspects. Project management, though, is an effective
management process used in many contexts.
This chapter will look at the project as a whole from inception to completion. The
objectives are to:
• define integration and the construction project life cycle

• distinguish specific project management activities and roles in the life cycle
• investigate factors which affect the way that projects are managed
• understand complexity and maturity models for project management
• discuss critical factors for project success.
Project life cycle

The life cycle of a construction project from a client’s point of view starts when there is a
formal recognition of project objectives, generally termed inception, when a project team is
assembled, through to the delivery of these objectives, called completion or project deliv-
ery. Activities relating to the conception of a project take place over an extended period
before the project starts. Figure 1.1 indicates the main elements of its life cycle. At the end
of the life cycle there is a commissioning process in order to ensure everything is working
and to hand over the completed project with its associated documentation so that it can be
used effectively.
The life cycle of a project varies depending upon the viewpoint of the participant.
Different parts of a life cycle are often managed by different people and not all organisations
C Feasibility
O Inception
N
C Strategy
E
P Design and
T tendering
I
O Construction
N
Engineering Completion Client occupation
commission and handover and commission
Figure 1.1 Life cycle of construction projects

Source: Developed from the CIOB Code of Practice for Project Management for Construction and Development.
are involved in the project all the way through from inception to completion of a building
project. For example, a main contractor gets involved from tendering through to handover
of the building before the client’s fitting out – just two parts of the client’s project life cycle.
For contractors, it is a complete project with an inception and a completion with handover of
their work. Traditional procurement puts an emphasis on this fragmented view of the project
life cycle where most are involved for only a part of it.
There is a need to be flexible in the construction project life cycle, as there are now many
different forms of procurement, which put a different emphasis on who leads the different
stages of the cycle than the traditional approach. For example, design and build is more
integrated with the client as the designer, the contractor and the client are all involved at an
early stage. The project life cycle model in Figure 1.1, by indicating a possible overlap of
the phases, is robust enough to cover a wide variety of procurement approaches and allows
for the development of innovative approaches to best meet client requirements. The develop-
ment cycle is wider and tracks the building or structure to a change of use or to demolition
and recycling for the next development opportunity (this is better shown in Figure 12.1, in
Chapter 12). The end of a construction project is the handover to a facilities management
team, which maintains the structure and services.
The life cycle of construction projects starts at inception, at the stage where a client’s
business case for a building or refurbishment is communicated to a professional team to
develop the constraints. Outline planning consent may have been achieved, but only if a site
has already been chosen. The inception process may involve an extended period to outline a
business case. Keeping the client fully involved in all stages is the key to integrated projects.
In order to proceed, a client needs to test the feasibility of their business case. The funda-
mental go ahead is in place by the beginning of the inception stage and the main focus for
the project manager at this stage is to define options for project feasibility and their financial
viability or benefits. The feasibility stage can include investigation of new build or refurbish-
ment, alternative site locations, funding options, design option appraisal, value enhancement,
comparative estimates and life cycle costing. It considers the associated project constraints
and marketing implications and is closely tied up with the strategy for the project. At the
end of this period a feasibility study tests affordability (fit within an outline budget and cash
flow), within project constraints. It may only become financially feasible by adjusting scope
and the client needs to make critical decisions that suit the needs of their business. A key part
Project life cycle and success 11
of this is to identify and allocate risks and to carry out a functional analysis to optimise value
for money. The user or facilities management groups may be involved at this stage. Early
stage feasibility in complex projects is sensitive to political, economic and market changes.
Typical outputs at this stage are a funding source, a basic risk assessment of external
and internal factors, design drawings and a concept statement, which are discussed with
the development control authorities, and a discounted net cash flow or cost–benefit analysis
within a budget. Feasibility is time-sensitive.
Strategy is a parallel activity to feasibility as the viability is often dependent on the strat-
egy. For example, the funding of the project is tied up with the time schedule and the cash
flow availability. It deals with how a project is carried out and controlled, including the cor-
rect procurement route, setting up the budget, deciding on methodology and setting control
systems in place for time, cost and quality. Strategy also needs to determine the organisational
structure of the project. Strategy lends itself to a digitised approach whereby different inputs
can be integrated and many iterations compared quickly. The brief needs to be developed
to ensure a full understanding of the client’s requirements and the design and construction
strategies need to be co-ordinated within the project constraints. The brief can be frozen at the
completion of feasibility and strategy. Value is tested and design adjusted.
A key output at this stage is the project execution plan (PEP), which identifies and allo-
cates the risk issues. It also specifies how the project is going to be scheduled and organised
through the subsequent stages of its life cycle in a master programme that shows key dates for
approvals and presents an outline design. If a construction manager can be brought in at this
stage, more reliable information is available for construction scheduling and methodology.
Pre-construction (design and tendering) appoints the full design and construction team and
includes the full development of the design scheme, detailed drawings, tendering and mobilisa-
tion of resources for construction and discussions with regulating authorities. There is a clear
responsibility to manage design and early procurement lead times and to identify a start date
for construction that is related to the handover and occupation of the building. Risk and value
factors continue to be managed so that the client gets best value. Outputs include statutory per-
missions, such as full development approval, building regulations, integrated design drawings,
tender documents and tender information for a later health and safety plan, contractor appoint-
ment, an agreed contract price and contract programme and a risk register. It is notoriously
difficult to control diverse design activity to meet deadlines, anticipate the timing and nature of
statutory consents and predict a market price that will comply with budget constraints.
The construction phase is self-explanatory, but it has a particular emphasis on the detailed
control of time, quality and cost and the management of many other issues such as the sup-
ply chain, health and safety planning, the environment and change. Outputs at the beginning
of the construction include construction stage programmes, construction health and safety
plans, method statements, cash flow forecasts, quality assurance schemes and change orders.
In taking on a contractor, there is a risk of conflict if information is not available, if things get
changed a lot or if the project is delayed. Conflict management, leadership and team-building
skills are used a lot in this stage. Building is ready to test.
Engineering commissioning is distinctive as its outputs should include the efficient func-
tioning of the building. The management of the process includes the signing off of various
regulatory requirements, such as building regulations, fire and water certificates, gas and
electrical tests, airtightness and meeting the conditions for product warranties. The outputs
are working systems.
Practical completion is certified by the project manager for the formal handover of the
fabric and systems to the facilities team and may be phased. Liability is not limited by
occupation and there is a responsibility to put defects right if and when they occur after
handover. Documentation and a health and safety file are handed over for the safe and
efficient use of the building’s systems and maintenance schedules. Handover is sometimes
called close out, because it suggests a focused period of preparation to ensure the project
and the documentation are in order and the facilities team and users are properly briefed
and inducted. A defects liability period protects the client from unexpected malfunctions
or defects.
The main output, apart from documentation, is to pass on the knowledge for running the
building safely and efficiently. The principal designer1 (see Glossary) and principal con-
tractor work hand in hand to get the documents together in a useful format and to train the
facilities staff.
The client’s occupational fit out follows full or sectional completion of the contractor
work and may well involve a new project team. This period often involves intensive collabo-
ration with user groups and facilities management teams. During this period there is a need to
commission equipment, move personnel and induct occupiers in the use of the building and
its emergency procedures. Outputs include fitting out and space management and the produc-
tion of health and safety policies, user manuals and training programmes.
The final stage is post-project appraisal and review. The objective is to evaluate success
in meeting the objectives as set out in the business case/project brief, to look at lessons learnt
and to carry forward improvements, where relevant, to the next project or phase. Outputs
from this stage are client satisfaction surveys, benefit evaluation, production incentives and
project process reports, which may inform future projects. You will see these life cycle stages
play out in sequence in some of the chapters (as explained in the Introduction).
Integrating construction
Integrated project management refers to the inclusion of the client in the project team and
the better co-ordination of previously fragmented processes that have split the professional
participants. This is proposed to increase the synergy and productivity of the project with
reference to a number of the different project processes listed in the first row of Table 1.1
which can be used to access relevant chapters. The integration categories in the second row
operate throughout all of the project stages, but the order followed left to right is relevant
to those first engaged. The key words and phrases in the table connect the categories with
frequently-used words in the book.
Integration means that those fulfilling professional roles have a duty to be involved in the
early stages of the project’s life cycle to facilitate a co-ordinated approach. This is dependent
on the client. In the UK and elsewhere, the use of collaborative digitised systems (such as
building information modelling – BIM) is compulsory in public commissions and requires
early multi-professional inputs to produce reliable modelling.
Particular links are made between the categories. These are indicated as dependencies in
the final row of Table 1.1. Risk management is an example of a variable that operates across
the categories as it needs to be defined, allocated and controlled. It comes under the per-
formance, contractual, project value and role categories. Development controls are not just
permissions to guide the design process, but will also impact on strategic feasibility, external
stakeholders and users. Project development and appraisal often leads to a dialogue between
the project objectives and the functional and value/risk categories where the cost and value
aspects are tested. A procurement system can be chosen that brings production expertise in at
an early stage to assess the programme. This early integrated assessment requires the services
of the project manager, who co-ordinates the parties at different stages of the project.
Table 1.1 Integration variables connected to terms used in this book
Integration Project Product client Value and risk Processes Contractual Organisation People Environment
sequence (Chs 2, 11) definition (Chs 9, 10, 14) (Chs 5, 13, 15) (Chs 4, 13) (Chs 7, 16) (Ch 8) (Chs 12, 16)
(Chs 2, 3, 5, 6, 9)
Integration Contextual Functional Performance System Relational Organisation Role integration Normative
category integration integration integration integration integration integration integration
Integrated Objectives Develop/design Quality/ value Planning and Integrated Organisational Leadership Sustainability
variables constraints Project Needs/scope control procurement structure Motivation Ecology
Business definition VFM system Client/architect/ Leadership Co-location Ethics and
goals Project constraint Risk reduction Decision contractor/ Trust and Competence/ moral
Development Design Innovation and making FM/ partnering training Resilience
Control and and values management Stakeholder designer/user Conflict Culture Sourcing
building Functionality Customer care management Information/ resolution Diversity Economics
regulations Benefit analysis Building Digital BIM/ Stakeholders Morals/ethics Community
Health and Funding Appraisal operations construction/ copyright Logistics Communication Social quality
safety Environmental and BIM Supply chain Autonomy Teamwork Recycling
regulations scan maintenance Standardisation Partnering Societal/social Health and Urban design
Scoping Production Productivity Operations Rights/liabilities FM/user safety culture Future cities
Offsite/MMC Design/production and management Risk behaviour experience Conflict/risk Climate change
Legacy Time/cost/quality workflow Interdependence Health and management Legacy
Risk ownership Buildability Project review System safety
Productivity Lean improvement management
System Realisable Soft landings Scope
co-ordination benefits Project review management
Durability Health and Political risk
Risk assessment safety
planning
Risk planning
Dependencies Contract, Value, project Process, People, product Project, Environment, Organisation, Value, product
process product, organisation project contracts
people
Each chapter seeks to use the principle of integration and examine the issues. The final
chapter looks at how integration can benefit the process of construction, and the quality of
life of users.
Project management
Project management involves not only the application of a specific set of tools but also the
motivation of people and the responsibility to achieve goals and to perform within con-
straints. It requires proactive and reactive behaviour in a dynamic situation. It is an integrated
approach that brings many different parts together. The following definitions may be useful;
project management is
• the application of knowledge, skills and techniques to execute projects effectively and
efficiently. It is a strategic competency for organisations, enabling them to tie project
results to business goals.2
• the application of methods, tools, techniques and competences to a project to
achieve goals . . . [it] includes the integration of the various phases of the project life
cycle . . . [and] ensures efficient use of resources, satisfying the needs of the project
stakeholders.3
• the planning, organising, monitoring and controlling of all aspects of a project and the
management and leadership of all involved to achieve the project objectives, safely and
within agreed criteria for time, cost, scope and performance/quality.4
The common elements of project management, as defined above by the International

Project Management Association and the Chartered Institute of Building and mentioned in
the Introduction, are time, cost and quality/performance management. These can be viewed
as a triangle, as shown in Figure 1.2. Scope and satisfaction could be added as per the Project
Management Institute definition.
These three dimensions of control – time, cost and quality – represent the specific project
efficiency factors. They are managed for the satisfaction of the client’s requirements, but in
themselves are secondary to the client’s business needs, which are likely to be determined
by the market. For example, time schedule control is a subset of finishing in time for the
Christmas sales period when dealing with a retail client. Quality is not absolute, but related
to the need for a building’s cladding to efficiently keep out the weather, not catch fire and still
look good for 10 years before the next refurbishment. It is likely that the client will prioritise
Cost
Time Quality
Figure 1.2 The three dimensions of project management control

one or two dimensions more than another. Thus an Olympic stadium will prioritise time over
cost and it will also be a showcase so will need to look good. Capital cost is important, but if
income suffers then it dissolves into relative insignificance.
Another aspect portrayed in the PMI definition is the management of the “knowledge
skills and techniques”. This means understanding how participants from different organi-
sations work together and having the skill to direct them towards common project goals,
without upsetting them.
Project management is about balancing the needs of all participants in the project. Forcing
the pace of design for the sake of construction or vice versa may mean inefficiencies later.
There is a need to integrate the needs of contractors and consultants with the business needs
of the client. However, the project manager’s prime concern is to try to achieve value for
the client and on occasions conflict may arise within the project team. On these occasions
conflict needs to be fairly managed so as not to de-motivate the project team. This in itself is
counter-productive. Case study 1.1 indicates how important it is to manage the project to suit
the context and priority and to integrate the team.
Case study 1.1 King Shaka International Airport, Natal

A new $1 billion airport was built from scratch in the South African wilderness to accom-
modate 7.5 million passengers per year. The business objective was to support tourism
in the area and the 2010 FIFA World Cup hosted by South Africa provided momentum
for permission to be granted.
The contract was won by a South African-led consortium, which included British
professional project management services. The project priorities were for time and
quality. Budget was a secondary consideration. The 32-week programme was tight
and the project manager focused on assembling a team that could work to urgent
deadlines and be relied upon to produce accurate documentation first time around.
The subsequent project team was multinational, with a local contractor who had a large
direct workforce. The project manager relied on online meetings using an intranet sys-
tem. Meetings involved knowledge sharing, including standardising the culture of the
project to suit local conditions. The project was located in an area of outstanding natu-
ral beauty, which required close liaison with the Department of Environmental Affairs
but special requirements delayed the project substantially. In fact, this liaison resulted
in the project failing to agree on an acceptable design within 77 days, as stipulated in
the contract. Informal clusters of design, construction and cost managers helped to
control costs, but also to build relationships between different disciplines and cultures
for defined sections of the project.
Acknowledgements to APM case studies and Turner & Townsend5
Programme and portfolio management

Today, project management also has to be viewed in the light of the larger client’s programme
of projects. Portfolio management is a strategic planning aspect that requires resources in the
commissioning organisation to be balanced between their different projects. This applies to
the way in which projects are allocated in the client organisation as well as the sequencing to
suit the cash flow and overall organisational budget.
Programme management involves a series of related projects that are controlled by a pro-
gramme manager to help this process and adjudicate where there are conflicting demands on
personnel and budget. A larger client will have a project office to facilitate this. The project
office may also standardise processes and make sure that quality standards are equitable and
appropriate for the work to be done and promote organisational learning in projects compa-
nywide. Public projects are divided by department with cross-government standards.
Project team roles

The project manager is the leader of the team and acts on behalf of the client as well as try-
ing to maintain an efficient project team. It is acknowledged above that the leadership of the
construction project may change during the project life cycle under some types of procure-
ment. For example, in the traditional procurement process applied in the UK, it is most likely
that the architect or engineer will take the lead in the inception and design stages and will
act on behalf of the client. During construction, the main contractor will have a leading role.
For large or complex projects, the client appoints an executive project manager with direct
leadership of the project team through whom the client communicates.
The project manager will be a single point of contact for the client, co-ordinating the
design, construction and other professional roles shown in Figure 1.3. This figure defines
the communication channels, but the actual contract is signed by the client with individual
organisations and so there are differing contractual links and communication links. The pro-
ject manager is likely to also play a design role in smaller projects.
The supply chain is managed day to day through the communication links and things
can go badly wrong if the client is allowed to pursue direct contact through their contrac-
tual links, thus undermining the co-ordination role of their project manager and the design
and construction managers. The construction and design sides need to co-ordinate their
KEY
Communication link Client
Contractual link
Project sponsor
Project manager
Project team
Design team leader Construction team leader
QS Architect Engineer Specialist Specialist Specialist
Design co-ordination Construction co-ordination of supply chain
Figure 1.3 Project structure diagram: executive PM model

operations throughout the life cycle through the executive project manager and directly
onsite, keeping the project manager in the loop.
In the traditional system the lead designer tends to assume the project management role
by default and hands over the baton to the main contractor during the post-tender stage. This
creates problems when the design is changed and the impacts on construction time, quality,
cost and health and safety are not reassessed. On a complex project the extra cost of a project
manager is well worth it.
The lead designer’s role is to co-ordinate the various design functions and, if necessary,
specialist design expertise as and when needed. This role is also traditional. The main con-
tractor’s or construction manager’s role is to tender specialist packages, set up site procedures
and integrate the construction programme and the interfaces between specialist packages.
They are accountable for meeting the contract programme and budget and working with the
design team to implement a quality product.
Conciliation is a key role for the project manager in terms of dealing with disputes, dis-
crepancies, omissions and changes so that the team works smoothly. When there is a lack
of trust and respect between the designer and the contractor, or the contractor and the client,
the culture can become ‘them and us’ and costs and time constraints are often at risk to the
disadvantage of the client.
It is normal in construction for roles to be assigned to different members of an inter-
organisational team, e.g. the quantity surveyor, engineer/architect, construction manager and
client. The project manager is the leader of the project team with a single point of contact
with the client.
It is important to try to standardise some definitions in order to understand project manage-
ment because people use particular terms to mean a lot of different things. We need to consider
the roles in the context of the client’s total view of a project, i.e. a finished building or facility,
not our view, which covers just the length of a participant’s involvement. For example, a con-
tractor and a subcontractor both call the person they appoint to run the contract for them the
project manager, and the former in a traditional contract only spans the construction phase and
the latter only covers the length of time the specialist installation is on site. Some of the most
important of these definitions are provided in the Glossary at the end of the book.
Table 1.2 illustrates how different members of the team play leading roles in the activities
that are predominant in each of the life cycle stages, assuming a project structure using an
executive project manager. This is not meant to be an exhaustive coverage of the activities
that the team performs. However, it does give you an idea of the main connections between
the different players. It is based on the Royal Institute of British Architects (RIBA) plan of
work stages,6 which are similar to the life cycle elements in Figure 1.1.
The client has a continuing interaction with the project team and may even take a lead role
in project management. Their essential role is to sign off each stage so that work may pro-
ceed to the next stage. These are called client approval points or gateway reviews. For more
specific reference to the public procurement gateway review system, see Chapter 2. The final
gateway review is the post-project appraisal.
Project manager skills and functions

Choosing the right project manager will have a significant effect on the culture of the project
and doing so is the responsibility of the client with guidance from advisors. It is quite com-
mon for legal or other professionals to provide advice early on in the selection process. So,
what is required of the project manager?
Table 1.2 Role of project team members at each stage of implementation
Life cycle stage Role Client Leader

approvals
Inception 2013 plan of work:

strategic definition
Client objectives interpreted in relation to Client/Advisor
strategic brief
Professional interpretation and development of PM
brief to determine value and performance
Outline planning CA1 Lead designer
Feasibility 2013 plan of work:
concept design
Test for viability and/or option appraisal PM
Project risks assessed PM/Lead designer
Outline design and cost plan Lead designer/QS
Funding and location CA2 Client
Appoint professional design team PM/Client
Strategy Decide on procurement route, risk manage, PM/(CM)/QS
master plan, cost control and quality, manage
planning application CA3 Client
Scheme design 2013 plan of work:
developed design
Create a scheme design and planning application PM/Design team leader
Cost plan and cost checks – iterative with client QS/PM
Buildability testing CM
Building regulations approval
Health and safety co-ordination PD
Tender 2013 plan of work:
technical design
Prepare detailed design and bill of quantities CA4 Architect/QS
Tender documents Client
Pre-tender health and safety plan CA4a PD/Client
Construction Appoint contractor(s) Construction
Architect/Client
Mobilise construction process, tender CM
Subcontractors, health and safety plan CM/PC
Time, quality and cost control CA5 CM/QS
Commissioning Test and snag all systems 2013 plan of work:
and handover and close out
handover Practical completion Architect
Compliance and efficiency to meet client objectives CM
Handover CA6 Client/CM
Post-project Feed back into future projects
review – Lessons for client Client
– Lessons for PM PM/Project team
Occupation Recheck ‘under use’ conditions 2013 plan of work: in use
Manuals and training Client/User
Key: PM = project manager; CM = construction manager; QS = quantity surveyor; CA = client approval; PD = principal designer;
PC = principal contractor.
Source: RIBA (2013).7
The Association for Project Management (APM), in its body of knowledge (BoK),8 lists
eight interpersonal skills required of the project manager: the ability to communicate, manage
conflict, delegate, influence, lead, negotiate and work as a member of a team. Naybour9 sug-
gests that the following functional skills are also desirable: being able to plan, be accountable,
trade off risk and reward, monitor and control, be commercially astute, gather information to
support decisions, handle problems, be proactive and be objective.
From a client’s point of view these qualities will make the project manager easier to work
with and more reliable and realistic. However, they might want to add ‘a willingness to see
those things which are important to their business and to adapt the system and parameters of
the project to suit’ The client also needs to be assured of the project manager’s general com-
petence and experience, especially in dealing with projects that have similar characteristics
to their own. From a project team point of view, being open minded and taking the lead in
fairness and commitment are expected of someone who has high expectations of their perfor-
mance and has to deserve their loyalty.
The project manager’s role will be related to the procurement route chosen by the client.
In the case of an executive structure (Figure 1.3), the project manager manages all aspects of
the project from inception to completion. In less integrated procurement, the project manager
changes at different stages of the project life cycle. Either way, there are four key tasks for
the project manager acting on behalf of the client:
1 Guide and advise the client.

2 Manage the resources to carry out project activities.
3 Build the project team.
4 Ensure customer requirements are met.
Without a project manager there is the potential for points (1), (3) and (4) to be dealt with
in a piecemeal way. The appointment of a dedicated project manager should help to provide
customer focus and to draw the client into the team. This gives more certainty to the client
approval process.
Meeting customer requirements means gaining knowledge of the customer’s business,
sharing problems at an early stage, so that trust is built up and reviewing project goals at
regular intervals to make sure that the developing brief meets expectations. Guiding and
advising the client is of particular importance, referring back to the need to reconcile the
client’s brief with construction constraints. Building the project team is about developing
relationships between professionals and ensuring efficient communications between diverse
and numerous participating designers and contractors.
The resources managed will have a different focus at different stages of the life cycle. For
example, at the inception stage managing funding is critical; at the design stage it is a matter of
managing information; at the construction stage physical resources, such as materials, plant and
labour, become important. With the introduction of integrating technology, many more of these
factors are digitally integrated in the planning and design stages of the project, with potential for
more collaborative offline manufacture and also automated assembly. Here, the project manager
can potentially move away from traditional solutions to utilise radically different approaches that
both meet client requirements for more reliable structures and contribute to post-project asset
management. The impact of these digitised technologies is discussed in Chapter 13.
So, how important is it that a project manager has a technical background? Can a construc-
tion project be managed by a generic project manager? Are there certain types of people or
personalities that are better at managing construction projects?
Certainly, points (3) and (4) could be fulfilled by any experienced project manager, and
production management experience will help with (2). Point (1) is likely to require industry
knowledge of how procedures work and what the economic, technological and legal constraints
are. Because of the technical knowledge required the project manager cannot be completely
impartial when making decisions and an ethical code needs to be established between profes-
sional conduct as a construction professional and decision making as a manager based on
co-ordinating expert response. Here, it is probable that a competent technical training is not
sufficient for reading economic situations or providing broad enough advice to a client who
wants to push technological frontiers. In this sense, technical knowledge is important, but very
much part of a range of skills and experience that will apply to construction projects as much
as they will to any project.
Ethical project leadership

Ethics in construction is often connected with the professional status of a manager in terms
of providing client confidentiality and updating knowledge under a code of professional con-
duct. In respect to leadership, there is a strong point to be made for a code of ethics to lead
by example and engender trust. The Project Management Institute (PMI) defines and justifies
ethics as,
making the best possible decisions concerning, people, resources and the environ-
ment. Ethical choices diminish risk, advance positive results, increase trust, deter-
mine long term success and build reputations. Leadership is absolutely dependent on
ethical choices.10
The PMI states that a sense of responsibility, respect, fairness and honesty drive ethical
conduct. The Royal Academy of Engineering (RAE)11 identifies similar ethical principles:
honesty and integrity; respect for life, law, the environment and the public good; accuracy
and rigour; and leadership and communication. Ireland et al.12 suggest that accountability is
crucial in maintaining high standards, in conduct and leadership of the team, in relations with
employers and clients, and in relation to the wider community and the reputation of the pro-
fession. In terms of ethics, the project manager is positioned in the middle and represents the
interests of all parties. They must be accountable to employers and clients; deal with issues
such as confidentiality and impartiality; make fair judgements; be accountable to the wider
community and the profession; consider adequate research; be knowledgeable and have ade-
quate experience; be aware of wider stakeholders; and be able to balance requirements. They
must also be able to manage disputes, engage in fair competition, respect social diversity and
communicate transparently in terms of the strengths and weaknesses of a solution.
Some of the issues that are common in project management will be common to other pro-
fessions and will often be expressed as a code of conduct and competence. Some ethical codes
address wider issues than professional incompetence. For example, contractors may offer
pricing promises with hidden costs or that involve additional lubricating payments; take short
cuts that reduce quality; follow poor employer practice, such as using unpaid apprentices and
requiring that staff work long hours; source materials and dispose of waste inappropriately;
make late payments to and bully subcontractors; fail to pay into employer pensions; or deal
with the financial management of long-term benefits inappropriately. Agencies may be used
to avoid responsibilities to employers, such as holiday pay and reimbursement of expenses.
Design may be shoddy and quickly lead to the frustration of users; the final product may
wear out, be cramped or unsympathetic to the spatial requirements of community living. On
a societal level, unsustainable design and execution and non-consideration of neighbours
are clear environmental concerns. For developers, schemes which give something back to
society and are not minimalistic in community provision can become part of corporate social
responsibility policy.
Sustainable delivery is an important ethical consideration that is dealt with in Chapter 12.
The trend is for greater standards of sustainability to meet regulatory, political and interna-
tional targets. Respect for equality and diversity is a pressing ethical issue, which is being
examined more closely by legislation and supply chain tracking. From an ethical perspective,
leadership may also actually choose to go further than mere compliance in terms of fairness
and establishing equal opportunities.
Professional institutional codes of conduct are not always effective. They are often hard to
police because of very subjective statements and commercial forces are given undue weight-
ing so that client demands may be used to justify action that is much less acceptable to the
community. This may particularly occur in the area of sustainable development where every
building newly constructed or refurbished should be able to demonstrate an ability to be appro-
priately sustainable, not only in compliance to current codes, but to aid future tougher targets
by exceeding current ones. Consequently, some institutions, such as the Chartered Institute
of Building, the Royal Academy of Engineering and the Society for Construction Law, have
introduced the idea of an additional ethical code suggesting actions that are more than compli-
ant and are the result of more significant involvement in the design and briefing process for
contractors and involvement in the construction and maintenance process for designers.
Ethical leadership is discussed by Fewings13 and covers the two key areas of openness
to learn and courage to stand up against traditional and currently compliant practice that is
not ethical. Foresight can be exercised in introducing environmental management systems.
Differentiating a company or a project in this way on the basis of ethical principles may not
be financially easy in a highly competitive environment, but awareness of future ethical issues
and the ability to take action to deal with them can also result in market leadership. In the case
of a client, a reputation for adhering to ethical principles may enhance opportunities for future
work. Many public bodies requires that companies demonstrate their ethical principles before
they gain a place on their tender lists. Case study 1.2 describes a well-known scheme that was
initiated in the United Kingdom and is now being adopted in other European countries.
Case study 1.2 Ethical contracting

In the UK, the Considerate Constructor Scheme (CCS) works to engage community
stakeholders and ensure that worker and public health and safety is enhanced and site
work is delivered more sustainably. This is a popular voluntary scheme, which awards
prizes for achievement in a variety of categories. Over a number of years the CCS
has been adopted by a majority of contractors in urban areas because it helps to build
relationships with communities, which pays dividends in terms of reducing conflict, for
example related to the nuisance associated with construction work. Association with
the CCS can enhance the reputation of both public and private clients; it can also be
beneficial in value-driven tenders. In terms of sustainability the CCS helps to encourage
recycling and reduce waste.
However, ethical leadership may also be motivated by unexpected retrospective action,
such as the Office of Fair Trading (OFT) investigation into bidding practices (mostly in cover
pricing) in the UK,14 in light of European Union requirements for more transparent tendering.
In Malaysia, a survey conducted by Hamzah et al.15 revealed that construction quality suffered
as a result of unethical procurement behaviour and lackadaisical supervision of work com-
pleted. They describe the construction industry as having a propensity for unethical behaviour
because of the low price mentality, fierce competition and low margins, which lead contrac-
tors to undercut bids and collude. In addition, Transparency International has identified the
construction industry as being one of the worst perpetrators of bribery16 and the Organisation
for Economic Co-operation and Development (OECD)17 has created strong measures to curb
multinational companies offering bribes in the procurement of international projects by sign-
ing up developing countries to sanctions such as withdrawing export credit cover. The Bribery
Act 2010 was subsequently introduced in the UK to require appropriate preventative govern-
ance in all industries to reasonably raise awareness and to dis-incentivise bribery.
The CIOB’s own survey18 identified unexpectedly great awareness of corrupt practice in the
UK construction industry. Consequently, the Royal Institution of Chartered Surveyors (RICS)
and others have instigated an international coalition of professionals19 to upgrade global ethi-
cal standards in construction to address bribary and provide a more level playing field when it
comes to bidding. The coming together of institutions within the construction industry is also
intended to engender public trust. Some courses also encourage discussion, better practice and
activism in response to bad practice. Part of the issue is developing an awareness of our own
ethical standards and asking key questions about our impact on other parties such as clients,
employees and society. There is less commitment if we are just followers of minimum standards
set by others. Project managers who create a culture of ethical engagement within individual pro-
jects can turn theory into reality. A personal decision-making framework for solutions to practical
ethical issues leads the way for all. Case study 1.3 describes the ethics of development control.
Case study 1.3 Affordable rural housing

A local parish council observed the exodus of young people from a particular village and
noticed that, although quite a few of them got jobs locally and wanted to live there, they
could not afford to do so. The council members carried out some research to see how
many affordable homes were needed and, after much discussion in open meetings,
put forward a proposal to a specialist housing developer to build on land that would be
sold to it cheaply on condition it provided the requisite number of affordable houses.
The housing developer identified a commercial opportunity to sell desirable properties
alongside the affordable houses in order to make the project viable and made an offer
to build 12 of each on the land available. Some locals felt that the character of the vil-
lage would be compromised by the development of an additional 24 properties and
objected to the planning application. The developer adjusted the plan and offered fewer
luxurious properties but also fewer affordable houses. Obviously, the parish council was
unhappy with this proposal because it would not address local need. Finally, an arbitra-
tor managed to gain from the developer some additional small benefits for the village
and enough people agreed for the work to go ahead. No cap was placed on the price of
the affordable houses and buyers had to sign a five- year covenant forbidding them to
sell them on for a profit during that period.
The project manager knew that the developer was making a bit more profit because it
had acquired the land considerably cheaper than would have been the case in a desirable
local area commanding premium prices. The developer’s design for the affordable houses
was quite basic and it also offered some financing perks to help with the marketing.
In this situation, should a professional step in and challenge the 50:50 offer and
help the villagers gain the number of affordable houses they originally desired at a truly
affordable rate? Should the villagers accept this deal?
Project complexity
The degree of project complexity is not directly dependent on value. The overall rating has
been shown to be useful for assessing the experience of staff required, the workload generated
and the degree of systemisation and formality required. Maylor20 speaks of organisational,
resource and technical complexity. He makes an overall rating by multiplying them together
for comparison of project complexity.
Organisational complexity increases with the number of organisations and stakeholders
involved and the degree of integration of their work – high for a construction project even
of a small size. According to Graicunias’s theoretical formula, six organisations, quite basic
for construction, gives 222 inter-relationships between the different supervisors and the roles
that are played.21 Non-standard building contracts take people out of their comfort zone and
create further complexity.
Resource complexity increases with the value of the project, its significance and the range
of resources used. In terms of construction size, it ranges from very small to extremely large.
A site manager will be assigned full time to a project with a value that exceeds £2–3 million
or an infrastructural project worth £4 million.
Technical complexity increases with the use of non-standard technology, the building con-
straints which exist and the complexity of the technology. Compare, for example, the repair of a
historic building’s roof with the use of prefabricated trusses. The combination of high ratings for
at least two areas makes a lot of difference. Innovation requires additional research and testing.
Political complexity is another factor defined as an external project environment which
is sensitive and leads to outside interference, a complicated communication process or high
expectations such as preservation of original features. A project is not stand-alone and
requires lots of external inputs. For example, the construction of a bridge close to a bird sanc-
tuary would require careful negotiation with pressure groups, innovative methods to reduce
traffic noise and compensation to pay for disruption and protection of the reserve. Political
impacts also occur because of cost reduction in the choice and impact of cuts on the projects.
Case study 1.4 gives a comparison using these parameters.
Case study 1.4 Construction complexity

If we compare two small projects we can illustrate the complexity index that emerges
using Maylor’s overall complexity measure in Table 1.3.
(continued)
(continued)
Table 1.3 Comparison of building complexity22
Complexity Organisational Resource Technical Combined index

factor
Case study
description
Construction of There is a full range of trade Value £2.5m The innovative design has involved 4 × 6 × 5 = 120
a primary organisations working Fast programme a long developmental process and
care doctor’s closely together on a Good quality went through planning with some
surgery and range of different spaces. Wide range of resources qualifications for redesign. The
pharmacyFeatures There is storage and Rating 6/10 building uses modern materials
atrium, low access on the car park, and prefabricated components.
energy usage and where offices can be Redesign to improve BREEAM
novel design. Fast accommodated rating
programme on Rating 4/10 Good service to the community
new site. Rating 5/10
Refurbishment of There are a limited Value = £800,000 The design of the roof is complex and 6 × 4 × 9 = 216
historic church number of specialist Range of resources is quite uses large non-standard timbers
hall. Features subcontractors (12 are low and made to measure stonework
new roof, repair involved) as there is a Programme affects use of the involving advanced craft
of stonework, limited range of finishes. building so time is tight techniques Innovative technology
demolition and Space is very limited and High quality required for forming the basement
creation of new the site is cramped with Rating 4/10 Long gestation period but planning
basement area no outside storage in the acceptable as brings building back
under the floor. city centre. into community use
Rating 6/10 Rating 9/10
The first project has demanding requirements but is not unusual for most contractors. The
rating will go up with the combination of greater speed and innovation and quality.
The complexity factors are increased for the second case study because of the organisa-
tional and technical factors and these are despite the size of the project. The projects are
equally affected by social/political factors.
Organisational complexity is very dependent on the unique features of the site and
often quite small projects offer almost insuperable problems, as illustrated in Table 1.3.
The fragmentation between design and construction often means that insufficient build-
ability has been achieved at design stage, exacerbating the execution stages with later
design adjustments that can create conflict. On a conservation project this is usual, but tar-
gets are harder to achieve and need more experience and supervision for the size of the
job. The tender price will increase with complexity and reduce with contractor experience.
Difficult technical solutions make a lot of difference to construction projects as resources –

craftsmen and materials in particular are geared up for standard building construction.
Project management maturity models

Successful projects require a mature management approach which integrates clients and contrac-
tors. For an immature client, project managers are likely to be fire-fighting reactively rather than
taking a proactive approach to problems and the quality of the outcomes (e.g. an inappropriate
specification) is more likely to be compromised through a lack of preparedness and integration.
Immature contractors can lack adequate control systems, which may result in programme over-
runs, cost escalation and poor quality. The Office of Government Commerce (OGC) Portfolio,
Programme and Project Management Maturity Model (P3M3) measures the six processes of
management control: benefits management, financial management, stakeholder management,
risk management, organisational governance and resource management. A maturity model is
used to assess an organisation’s level of capability with regard to defining and managing its
projects; it also defines the level of capability needed to manage a particular project.
Design and definition failure are the most common causes of problems within pro-
grammes and projects, including issues with scope; decision-making failure connected with
lack of senior management commitment; discipline failure connected with poor risk manage-
ment; supplier management failure connected with poor contract terms and understanding of
commercial imperatives; and people failure connected with poor stakeholder management,
cultural issues and lack of ownership.23
A mature organisation requires management processes, clear roles and a proven control
system to evaluate and regulate the status and health of the project. It will also have learned
and be learning from its mistakes and continuously improving. It will have a sound briefing
and value/risk assessment process to assure best value in what it asks for.
There are five levels of maturity in the P3M3 model in Table 1.4 and these measure an
organisation’s capability; thus, a low level indicates that help is needed, a medium level
can deal with simple to standard projects and repeat successes and an advanced level can
deal with complex and fast-paced projects with changing requirements and can optimise
its projects and continuously improve. This model is still used by a variety of consult-
ants to identify areas of improvement in numerous project management functions, e.g. by
Manchester City Council.24
Table 1.4 Project maturity levels25
Level Process Repeatability of Training in Standard Planning and Risk Top management
documents success place terminology control management commitment
Level 1 Subjective, few Poor Minimal None Based on None
Awareness documents individuals
Level 2 Basic resource Hit and miss Generic Yes Major milestones Significant Some leads
Repeatable and budget Not consistent
process tracking
Level 3 Good Some Established and Able to tailor to Quality More Consistent
Defined process understanding specific suit specifics management co-ordinated engagement
of the process better
Level 4 Full set of Quantitative Established Yes Fuller metrics for Good Proactive and
Managed process measurable management and more improvement innovative
requirements specific and adaptation
Level 5 Full set Full understanding Anticipate Innovative Quantitatively Knowledge Seen as
Optimised of cause and future needs managed management exemplars
external factors
Determining the critical factors for success
If we take success as the delivery of a product that meets the expectations of the client
whilst simultaneously giving profitable business to the provider, the facts clearly demon-
strate that the construction industry has a flawed record in this regard. Major projects have
been subject to cost and time overruns and the performance of the product has often fallen
short of the client’s criteria let alone their expectations. To add to this, the profitability of
the industry has been in question and major investors are reconsidering their exposure to
certain sectors of it.
What is it that makes a project a success for the various parties involved? Are there inher-
ent management or process factors common to all projects or is it in the nature of the project?
Are the factors within the control of the project team or are they, as in the case of political
factors, to be responded to? Do you select projects that have built in success and by definition
avoid others?
Industry-wide studies
Many wider consensus reports have been heralded in principle but have failed when there has
been an attempt to implement the details. It can be difficult to harmonise interpretation of the
reports between different parties to the contract. The factors of success have been reviewed
in the context of many different reports in recent years. Many of them are industry-wide. The
results of these reports have often depended on the viewpoint of the party who has commis-
sioned them. They are summarised in Table 1.5. These three reports identify research into
success factors.
Critical success factors (CSFs) are often categorised in different ways. Slevin and
Pinto’s26 10 factors of success, as determined from a survey of project managers and shown
in Figure 1.4, were ranked. The 10 factors were grouped as:
• strategic factors critical in the early stages of the life cycle

• tactical factors (shaded) which became most important in the latter stages.
Table 1.5 Selected research into factors for success in projects
Report and title Broad findings

Morris and Hough (1987) A review of five major project case studies and the issues that
Anatomy of Major caused success or failure and indicated planning for external
Projects factors.
Slevin and Pinto (1986–88) A 50-item instrument was developed to measure a project’s score
Several reports on on each of 10 factors and was applied to over 400 projects.
determination of critical Report concludes that strategic issues are important throughout
success factors the whole life cycle, with tactical issues being equal only in the
later stages.
The Linden Bovis Report A report that made unfavourable comparisons between the
(1992) productivity of UK and US industries.
Top management support, detailed programmes and budgets for control were the strategic
factors and these remained critical and most important throughout the project. Interestingly,
the next most important issue was the involvement of the client in the project team.
Troubleshooting was ranked lowest.
Others,27 however, have stated that factors are different for different industries and fail-
ure may also be defined in different ways. Pinto and Mantel28 identify three fundamental
causes of failure across industries: poor planning, insufficient senior management support
and appointing the wrong project manager.
Applying these findings to construction, it is clear that the brief and its interpretation,
effective scheduling and control, and continued client involvement at the highest levels are
all critical to success. The idea has been broached that success can be seen from different
stakeholders’ points of view, the main ones being the client/user and the project manage-
ment team. Morris and Hough29 identify responding to external factors as a critical issue in
the success of projects and cite the Thames Barrier project as successful even though it took
twice the planned time and cost four times more than the original budget because it provided
a profit for most contractors.
There is much literature on CSFs and some of it is conflicting. Tsiga et al.30 gathered
58 success factors culled from existing literature, orderedthem in 11 groups and added risk
management and requirements management. They used these to survey project managers in
the construction industry with an average of 15 years’ experience spanning over 15 projects.
The five most important factors, in order of significance, were: project organisation, project
management competence, project risk management, project team competence and require-
ments management.
Detailed
scheduling
Project
Top mgmt.
objectives
support
clearly defined
Monitoring
Client Technology and

Communications
acceptance expertise
Feedback
Client Correctly trained

consultation personnel
Troubleshoot
(ability to handle
unexpected
crises)
Figure 1.4 Factors of success

Source: Adapted from Slevin and Pinto (1986).
Country-wide study of success factors
Morris and Hough31 identified external factors as having the greatest impact on project success.
Case study 1.5 is a country-wide longitudinal record of various UK government interventions
intended to meet wider country objectives and improve the productivity and effectiveness
of the construction industry. These reports cover different economic climates in the UK and
respond to different political party measures for the industry. Between 2008 and 2010 the
effects of a worldwide decline in economic activity and changes in government policy, fol-
lowing a long period of boom, were experienced by the construction industry in particular.
Behaviour in the construction industry is a leading indicator of the state of the economy; it rep-
resents business confidence in terms of willingness to expand and to invest in new built assets.
Case study 1.5 UK study on construction industry

success
The UK reports record a country-wide case study of government-motivated efforts to
encourage project success in the industry as a whole over a 20-year period, 1997–2017,
as shown in Table 1.6.
Table 1.6 Some reports indicating the need to improve construction success in the UK
Reading Building 2000 Identified the major issues to address by the year 2000 to
Report (1990) keep UK industry competitive world wide. It was eclipsed
by the Latham and Egan Reports.
The Latham Report (1994) Suggested that a productivity improvement of 30 per cent was
Constructing the Team needed and possible by re-engineering the construction
process to eliminate confrontational contracts and
relationships and introduce partnering and contract change
following the passing of the Housing Grants, Construction
and Regeneration Act 1996, which was intended to
improve payments.
The Egan Report (1998) Supported value and process improvements, including
Rethinking Construction introducing selection on value to reduce defects,
increasing safety and introducing benchmarking to make it
possible to track continuous improvement. Introduced five
drivers for success and the enhancement of client value for
money. Targets set similar to Latham.
The Construction Clients Called for a pact to be made between the client and supply
Forum Report (1998) side designed to improve value for money and the
Constructing Improvement profitability of the supply side. Larger developers created
more integrated relationships with their suppliers.
Modernising Construction National Audit Office identified major inefficiencies in public
(1999) National Audit procurement, with three-quarters of buildings exceeding
Office their budgets by 50 per cent and two-thirds exceeding
their programme by 63 per cent. Some improvements
were made, with more partnering and good practice
guides, but still some slippage.
(continued)
(continued)
Accelerating Construction Measured improvements over the intervening four years

Egan update report since 1998 and indicated that demonstration projects
(2002) practising Egan principles had reached the targets set and
far exceeded industry averages.
Strategic Forum for Set up a toolkit for the integration of the project team
Construction (2003) in the better delivery of a project in partnership. The
parameters that it set were very wide, but it represented
a methodology to integrate the client and the team in a
continuous improvement culture in pursuance of the goals
set by the Egan and Construction Clients Forum reports.
Construction Matters Report compiled for the Parliamentary Select Committee
(2008)32 that looked at the impact of the built environment as a
whole (20 per cent of GDP) and considered the need for
sustainability in buildings as a key to meeting the UK
carbon reduction target and more efficient construction.
Wolstenholme Report Determined the level of industry progress, rated at 4/10, since
(2010)33 Egan and to define the improvement agenda for the next
10 years.
Global Construction By 2025 the construction industry is predicted to grow
Perspectives to 2025 from $6.5 to $15 trillion, with the US showing 40 per
Oxford Economics (2013) cent growth and emerging economies like India, China,
Indonesia, Russia and Mexico raising 60 per cent of
construction value. Affordable housing will be a large
element of this growth. European values are expected to
be 5 per cent less.
UK Government Sets out plans to improve delivery and training. It plans to
Construction Strategy deliver £1.7 billion worth of efficiencies in public works,
2016–202034 Construction with 20,000 apprenticeships. The previous plan, 2011–15
2025 delivered 20 per cent savings on public construction
expenditure. It plans to derive benefits from progress made
from BIM levels 2 to 3. It also plans to provide better
training and fair payment for small subcontractors, and
better carbon reduction for buildings, in spite of the dilution
of greenhouse gas reduction targets. The jury is still out.
UK Government White Reform to stimulate the housing market. Aims to double
Paper: Fixing our Broken output by building houses faster by using offsite and
Housing Market 201735 releasing land more easily, addressing skills shortages
and diversifying the market with a fund to help smaller
builders challenge the oligopoly of major developers and
encouraging institutional investors into housing. Some
indication of more offsite productivity.
The reports in Case study 1.5 give an idea of how improvements have developed in one
country. There is a particular concern to improve productivity and increase value for money,
to reduce conflict, to establish a sustainable industry because buildings use a high proportion
of energy and to increase quality.
Conclusion
Project management has been around for a long time in the construction industry but has
not always delivered the value that clients have been promised. The unique nature of the
product needs to be properly planned for success and understanding the client business and
not ignoring the key role of external events are crucial. The move is for large clients to
seek to enhance value and not to tolerate under-performance. Integrating the events in the
project life cycle more fully (especially design and construction) moves away from tradi-
tional procurement methods so it is important to look at more innovative ways to deliver
projects. Clients need to be clear about the impact of the approvals and decisions they are
making. Later chapters connect risk management with value management and also look
more closely at design management and the supply chain and how procurement can be
managed in a better way.
Professional roles in projects are changing, but there is a need to manage a fragmented
process seamlessly and to this end Chapter 4 deals with procurement. The development of
a strategic plan is important for all areas of project management, indicating the organisa-
tional structure, culture and leadership, the strategy for more sustainable building and the
promotion of effective teams. The credibility of a project manager depends not just on their
technical ability, but also on their ability to provide an ethically sensitive service to all parties
to the contract and to deliver client satisfaction and advice.
Project success is the subject of many industry reports, and it is clear that success depends
upon external factors as well as the degree of strategic planning, the ability to integrate and
getting the right person to match the job, in order to achieve the process-focused improve-
ments that are being recommended by the reports. As a leading indicator for new investment,
governments have intervened in construction to try to stimulate investment after periods of
economic depression.
Notes
1 This is a term culled from the Construction Design and Management Regulations, 2015. Available
online at: www.legislation.gov.uk/uksi/2015/51/pdfs/uksi_20150051_en.pdf (accessed 18 August
2018).
2 Project Management Institute (PMI) (2008) A Guide to the PMBOK. 5th edn. Newtown Square, PA,
PMI Publishing.
3 International Organization for Standardization (2012) ISO 21500:2012
Guidance on Project Management. Available online at: www.iso.org/standard/50003.html
(accessed 18 August 2018).
4 International Project Management Association (IPMA) (2015) International Competence Baseline
for Project, Programme and Portfolio Management, Holland Version 4.0, p. 36.
5 APM (2010) APM Project Management Awards, Winner of the Overseas Project of the Year,
King Shaka International Airport, Turner & Townsend. Available online at: www.apm.org.uk/
media/1196/overseas-project-of-the-year-2010-turner-townsend.pdf (accessed 23 July 2018).
6 Royal Institute of British Architects (RIBA) (2013) Plan of Work. Available online at: www.
RIBAplanofwork.com (accessed 23 July 2017). A RIBA Small Project Plan of Work (2016) is
also available; go to www.architecture.com/-/media/gathercontent/riba-plan-of-work/additional-
documents/ribasmallprojectplanofworkonlinepdf.pdf.
7 Introduction to Plan of Work. www.RIBAplanofwork.com.
9 Naybour P. (2016) Project Management Skills: The Hard, the Soft and the In-between. Available
online at: www.apm.org.uk/blog/project-management-skills-the-hard-the-soft-and-the-in-between/
(accessed 23 July 2018).
10 Project Management Institute (PMI) (2018) Code of Ethics and Professional Conduct. Available
online at: www.pmi.org/-/media/pmi/documents/public/pdf/ethics/pmi-code-of-ethics.pdf?sc_
lang_temp=en (accessed 24 July 2018).
11 Royal Academy of Engineering (2017) Statement of Ethical Principles for the Engineering
Profession. Engineering Council and RAE. Available online at:http://www.raeng.org.uk/
publications/reports/statement-of-ethical-principles (accessed 24 July 2017).
12 Ireland L. R., Pike W. J. and Shrock J. L. (1982) Ethics for Project Managers. Proceedings of the
1982 PMI Seminar/Symposium on Project Management, Toronto, Canada.
13 Fewings P. (2008) Ethics for the Built Environment. Abingdon, Routledge, p. 109.
14 Office of Fair Trading (2009) CE/4237-04 Construction Industry in England: Bid Rigging. A
Competition Act 1998 case imposing fines totalling £129.2 million on 103 construction firms that
had colluded with competitors on building contracts. Available online at: www.gov.uk/cma-cases/
construction-industry-in-england-bid-rigging (accessed 24 July 2018).
15 Hamzah A. R., Saipol B. A. K., Mohd S. M. D., Mohammed A. B. and Yap X. W. (2007) Does
Professional Ethics Affect Construction Quality? Proceedings of Quantity Surveying International
Conference, 4–5 September, Kuala Lumpur, Malaysia.
16 Transparency International (2005) Transparency International and the Global Report on
Construction 2005. Available online at: http://unpan1.un.org/intradoc/groups/public/documents/
UN/UNPAN021255.pdf (accessed 24 July 2018).
17 The Organisation for Economic Co-operation and Development (OECD) (1997) Convention for
Combating Bribery Against Foreign Public Officials in International Business Transactions, 17
December, signed by the OECD countries and Brazil, Argentina, Bulgaria, Chile and the Slovak
Republic.
18 Chartered Institute of Building (CIOB) (2006) Corruption in the Construction Industry Survey.
Ascot, CIOB.
19 International Ethics Standard Coalition (2014) Global Code of Professional Ethics. Available
online at: from www.ies-coalition.org (accessed 24 July 2018).
20 Maylor H. (2003) Project Management. 3rd edn. Financial Times Prentice Hall, p. 37.
21 Gracunias V. A. (1937) Relationship in Organization. In Gulick, L. H., Urwick L. F. and Carl H
Pforzheimer C. H., Papers on the Science of Administration. New York, Institute of Public
Administration, University of Columbia.
22 Based on Maylor (2003), Table 2.5.
23 Office of Government Commerce (OGC) (2008) Portfolio, Programme and Project Management
Maturity Model, Public Consultation Draft v 2.0. London, The Stationery Office.
24 Fletcher K. (2011) Use of P3M3 at Manchester City Council Capital Programme Group. Available
online at: www.axelos.com/case-studies-and-white-papers/p3m3-manchester-city-council-case-
study (accessed 23 July 2018).
25 Based on OGC P3M3 model (2008).
26 Pinto J. K. and Slevin D. P. (1986) Critical Factors in Successful Project Implementation. IEEE
Transactions on Engineering Management, 22–27. doi.org/10.1002/9780470172353.ch20
27 Baker N. R., Green S. G., Bean A. S., Blank W. and Tadisina S. K. (1983) Sources of First Suggestion
and Project Failure/Success. Industrial Research: Conference on the Management of Technological
Innovation, Washington, DC.
28 Pinto J. K. and Mantel S. J. (1990) The Causes of Project Failure. IEEE Transactions on Engineering
Management, 37, 269–276.
29 Morris P. W. G. and Hough G. H. (1986). Anatomy of Major Projects. Chichester, Wiley.
30 Tsiga Z., Emes M. and Smith A. (2016) Critical Factors for the Construction Industry. PM World
Journal, V(VIII). Available online at: https://pmworldlibrary.net/article/critical-success-factors-
for-the-construction-industry/ (accessed 24 July 2018).
31 Anatomy of Major Projects, 1986.
32 House of Commons Business and Enterprise Committee (2008) Construction Matters: Ninth Report
of Session 2007–08. Available online at: http://www.publications.parliament.uk/pa/cm200708/
cmselect/cmberr/127/127i.pdf (accessed 24 July 2018).
34 Cabinet Office and Infrastructure and Projects Authority (2016) Government Construction Strategy:
2016–2020. London, The Stationery Office.
35 Department for Communities and Local Government (2017) Fixing our Broken Housing Market.
White Paper. London, The Stationery Office.
2 Building the client business case
Why? Implementing a construction project is a major decision, which the client has to make
after careful consideration of a need. For many clients, this could be a lifetime decision and
therefore it is important that the project manager is familiar with aspirations for the project.
The project manager’s role at the inception stage is limited and, where it is provided for
in the terms of reference, they should be able to provide professional advice on how the
project brings physical changes as well as changes to a client’s value system.
What? The term business case implies a justified need for the project based on three meas-
ures of project success: what is to be produced by the project (output), how this will be used
by the organisation (outcomes) and how the use will make a difference (benefits). Clients,
public or private, will have a business case that will define their objectives in the context of
the project. The objectives of this chapter are to:
• understand client objectives as an outcome of client values and type

• balance project constraints and objectives
• present a business case
• present the context of decision making using stage gate reviews
• benchmark and build value in the business case
• identify and manage project stakeholders.
These issues are supplemented with some case studies as a way of illustrating the theory and
presenting current practice in commissioning building work.
How? This chapter looks at the concept of project management to fulfil a client’s business
objectives, as the project manager works with the client to develop a suitable business case
and define the overall scope of the project. The business case will determine the choice of
design solutions, shape how the project will be procured and identify the focus for ongoing
monitoring and control during the project delivery and use stages. The ALIGN (Assess, Link,
Involve, Generate and Renew) approach will ensure that clients are able to quality check the
business case. The step-by-step DRIVE (Develop, Review, Improve, Validate and Evaluate)
process is a mechanism to enhance value throughout the project life cycle. Clients may be
classified into public and private, profit and not-for-profit. Construction projects are complex
and expensive and need to justify their expenditure and need.
Strategic issues: a case for business–project integration

Masterman and Gameson1 classified clients on a two-dimensional grid as experienced or
inexperienced and primary (wanting buildings because they trade in buildings) and secondary
(using buildings to house their business). Boyd and Chinyio 2 distinguish clients on the basis
of pursuit of profit. A project business case developed for a not-for-profit client will differ
from one that is made by a for-profit client, but in both cases it justifies the merits of an
investment. We envisage a construction project as an aspiration for a change. A business case
links means and ends to achieve such an aspiration. Means include methods, actions and rea-
sons justifying the decision, which could be influenced by both clients’ internal factors and
external PESTLE (Political, Economic, Social, Technological, Legal and Environmental)
factors. Ends are the expectations of value, such as growth in market share, increase in profits
and dividends and improved performance and customer satisfaction.
Hansson3 offered an interesting summary on how decisions are made in practice. A busi-
ness case is often not completely formed at the beginning because it is inadequately informed
and the end outcomes are not clear. Using modern decision theory we can forge an integra-
tion between strategic needs and project processes. Figure 2.1 show how business needs are
achieved through project life cycle processes – from inception to a fully-designed scheme
that is ready for construction and commissioning to the client for occupation and use.
Integrated projects are not as linear as suggested by Figure 2.1 and may need to iterate
processes after stakeholder’s feedback. Business planning advice has been well-documented
by many agencies and the Gateway Review™ programme and the government procurement
guides4 are good examples of best practice. A balanced approach is needed in the context
of client type, building uses, project size, public versus private clients and the unique stake-
holders of each. There is also a need to view business planning as an open system that is
heavily affected by project, culture of the client organisation and environmental constraints.
The business case is a starting point or a benchmark for the level of performance required.
It is very easy to erode the value of the business case, but the integrated approach allows for
working together with the project team to preserve and improve that value.
According to Egan,5 value improvements require that performance measurement is carried
out. Maylor6 reminds us that it is easy to measure the wrong things and that real improvements
are made by long-term measurements across projects so that supplier behaviour changes are
permanent and not just reactive. The job of the project manager is to understand client objec-
tives and to ascertain the priorities. It is also to provide a professional service that not only
develops the business case but also applies the right tests to the assumptions made.
Business needs: ALIGN parameters

Construction projects involve a complex chain of values, including the aesthetics of the
building, value to the people using the building, its environmental performance and the
Project Monitoring and control processes
Project definition Project development Project closeout and in-use
Design
Client vision development
and needs
Client
Project concept Procurement occupation
Strategy
and options and contracting
Completion
and handover
Feasibility Project brief and Construction Post-
Use and facilities
analysis Business case completion
management
review
Risk and value Testing and
management commissioning Project
close-out
Figure 2.1 Project development process

Building the client business case 35
enhancement value to the client’s organisation. Processes that identify these needs will there-
fore require that present and future strategic, tactical and operational goals are reviewed and
aligned. Where these are poorly conceived, costly changes will need to be made as the project
progresses. Internal stakeholders have a role to play in identifying correct needs and steering
the project towards what can be afforded by the level of resources available; similarly, exter-
nal stakeholders can influence how these resources will be delivered. Where there is a lack
of consistency in appraising the business case, the ALIGN parameters can help the project
manager to identify and bring to the attention of stakeholders areas to focus on. The ALIGN
process is as follows:
• Assess. Current practices must be assessed to determine the extent to which the busi-
ness case aligns with the facts on the ground and the gaps that exist between day-to-day
operations, expected performance and the needs of the project.
• Link. A link must be established between means and ends to meet client goals, leading to
clear project objectives. Where the project intends to add functionality to core business
objectives, empirical evidence must be considered to substantiate how the proposed pro-
ject intends to solve the existing problem. Within the National Health Service, for example,
design solutions will be reviewed on the basis that they speed up patient recovery time.
• Involve. An inclusive approach must be followed in developing the business case, such
as the ‘soft landing’ discussed in Chapter 15, which will ensure that client, end-users and
the project team collaborate in exploring and exploiting opportunities. The right people,
who can add value to the project, should be appointed to the project team. The manage-
ment of stakeholders and resulting conflicts is discussed later on in this chapter.
• Generate. The business case must encompass a plan to produce tangible and intangible
benefits for the client and the surrounding community. Having the right information
will help to identify, develop and select best project options and design solutions. The
process of feasibility and funding appraisal is dealt with in Chapter 3.
• reNew. A review and improve approach must be followed to unleash expectations of
renewed and improved performance. A business case must be means tested in order to
assess to what degree the ends make a difference. The integration model discussed in
Chapter 1 correlated ‘ends’ and ‘means’ and how they create value for the client; these
should be mapped throughout the project development stages. For example, the develop-
ment of Google’s headquarters in London included gaming areas to demonstrate how a
virtual world can be achieved through a physical world.
Project constraints and client objectives

It is the project manager’s job to understand the client’s objectives and ascertain their priori-
ties. It is also to provide a professional service that not only develops the business case by
applying the right tests to the assumptions made but can also advise on the specific project
constraints and promote technical project objectives. Table 2.1 indicates a balance of project
efficiency with client objectives.
Table 2.1 The difference between client and project objectives
Project objectives Client objectives

Efficiency with regards to time, cost and quality levels Statement of need
Teamwork Functional facility
Technical task Financial viability
These project constraints come in the form of external circumstances and site characteristics
that have an impact on the design and construction process. Project constraints can be clas-
sified as follows:
• Economic factors that affect funding and market prices. Market prices for the tender-
ing of construction work vary significantly according to supply and demand. Positively,
local authorities may recognise employment opportunities and provide tax breaks for
certain locations.
• Ethical and environmental choices to suit sustainable projects.
• Physical site constraints, such as those pertaining to access, might result in extra expense
or place restrictions or limitations on the positioning of the building. Ground conditions
determine the foundations of the building and topography affects its design and bounda-
ries its shape and orientation. Alternative locations could be considered.
• Resource availability such as labour skills and choice of materials.
• Time constraints on achievable goals, from phasing to completion.
• Technical/design issues, such as balancing cost and quality, and life cycle costing.
• Planning constraints on certain types of development, which make gaining permission
for some locations easier than for others. Conditions might be applied; for example,
building height restrictions on certain sites. All developments must show sustainable
strategies to reduce carbon use.
• Local councils, through the planning system, may seek to impose agreements (planning
gain) on developers. These are designed to contribute towards the community created by
the new development in return for the benefits gained in relation to the client’s business
objectives. Highway authorities may require new layouts to improve traffic flow, such as
additional road widening, improvement of junctions or the provision of traffic signalling.
• Neighbour concerns.
• Health and safety issues.
• Legal requirements, such as durability, contamination and sustainability covered by
building regulations and various environmental Acts.
Some of these issues arise out of a technical knowledge of the construction process so will
appear strange to the client. The main role of the project manager is to make these constraints
A clear A clear
statement of statement of
objectives constraints
Project
manager
Figure 2.2 Balancing constraints and objectives

known to the client and to guide them so that they achieve best value whilst maintaining the
real essence of their objectives.
Figure 2.2 provides the context for developing client and project objectives that are
different but nevertheless complementary.
Client objectives
Company goals are a framework and provide some guidance for the direction of the business,
for example the type and location of markets to be in, the investment needs and the growth
rates of the business. Strategic planning does not define the building project but should give
some justification for a project. The client needs to be sure that key assumptions will be tested
and clear requirements given. Management commitment, sufficiently skilled resources and
flexibility of contractual arrangements to cope with change are also necessary. Figure 2.3
shows the steps in the process from moving from client objectives to establishment of the
project brief. Defining the brief is covered in Chapter 3.
Client objectives for a new building project define the business case for it and lead to the
development of a project brief. SMART is a well-known mnemonic that can be applied to
overhauling a client’s objectives to ensure effective implementation:
• Specific. Identify the outcomes clearly (e.g. business volumes, returns and markets).
• Measurable. Ensure that it is possible to monitor attainment, for example a budget or a
functional space (e.g. number of beds or car parking spaces).
• Achievable. Check that different objectives, such as those related to space, budget or
complexity, and time scale do not clash. Ownership of an objective helps to gain com-
mitment to it.
• Realistic. Make sure that aims are feasible in terms of available resources of funding,
time scale, materials, labour and so on.
• Time bound. Create a programme for delivery of the objectives. This will be a high level
programme indicating key dates for attainment of the objectives, such as decanting or
occupation. They should be in the context of the business need.
Client objectives are the starting point for defining the project but may need to be clari-
fied by the project team. Value can be enhanced by optimising solutions to meet essential
requirements and to separate out desirables as a ‘wish list’. Client objectives recognise
external constraints and will inform the commissioning of a specific project. For example,
Project brief defined
Project
Strategy
objectives Outline
Design brief
Company project Project
and outline Scheme Planning
Goals strategic brief and brief detail
design design approval
planning outline development
options
Client planning
Feasibility
objectives
Figure 2.3 Process of developing brief from objectives

Dyson’s objective was to expand its business and to do so it moved production from
Wiltshire to Malaysia, for two reasons: production is cheaper there and gaining planning
permission to expand on the UK site would be an onerous process. Building in Malaysia is
cheaper and Dyson calculated that, even with export costs, it could undercut its competitors
in European markets.
Different types of client have different types of objective. Regardless of their experience
and profit ambitions, the main client types are private, public and developer, so it is important
to ‘get into the client’s shoes’ in order to understand their objectives and the basis of the cli-
ent brief. Below are a few simplistic examples of generic objectives for specific client types:
• A manufacturer needs functional efficiency (value for money) to meet performance

criteria and to start production as soon as possible. They will be a secondary client as the
building is a means to an end.
• A developer needs a cheap, quick and attractive building to sell or to rent economically.
This will be a primary use as the building is being used as a commodity in itself.
• A public body needs a building that lasts a long time, is an efficient use of taxpayers’
money, is within yearly budget and is low cost to run. This is again a secondary use of
the building.
The experience of the client will determine their degree of involvement in developing
objectives. It will also determine their understanding of the project constraints; small manu-
facturers, for example, are unlikely to commission buildings very often and are therefore
inexperienced in this process. Heathrow Airport Holdings, on the other hand, is experienced
and can exert a strong influence on the procurement of its built assets. This analysis is quite
simplistic and Green7 believes that the consumer-led market has resulted in a more organic
iterative approach to arriving at the brief.
Project objectives
Project objectives are associated with the efficiency and effectiveness of the project process.
The project manager has a particular responsibility to meet these as well as to help the cli-
ent meet their own business objectives. These objectives are traditionally to do with project
budget, quality and programme, but there are also other aspects which are important to the
success of the project and these will be considered in Chapter 3.
The time–cost–quality triangle in Figures 2.4–2.6 indicates the need to understand the bal-
ance between each of the parameters in agreement with the client requirements. It is assumed
that all three priorities are equal, but some may be more equal than others in order to make
it easier to make decisions. A single priority is shown by ‘pushing the ball’ into one corner.
A double priority (quite normal) is shown by ‘pushing the ball’ to the middle of one side. It
becomes much more difficult to manage if a triple priority is given. The first two do not imply
that the third factor is unimportant.
Time, cost and quality are all important to a client, but one may be more important than
another. For example, a local authority is almost always tied to the lowest price. Thus, once a
budget is set for a school, exceeding it would be embarrassing because it would mean going
back to central government, providing fewer school places or diverting money from another
scheme. Other things such as durability costs may become important.
Alternatively, an Olympic stadium must be ready in time for the event and its ambas-
sadorial role means that quality is of paramount importance to the government of the day.
Time
Cost Quality
Figure 2.4 Project objectives: time, cost and quality
Time
Cost Quality
Figure 2.5 A single priority for the local authority
Time
Cost Quality
Figure 2.6 A double priority for the National Olympic Organising Committee
This means that the budget will be secondary to the quality and the programme, as shown in
Figure 2.6. Other things such as security are also important.
Project objectives also include managing people and creating synergy in the team to
ensure that there is greater productivity. An open and ‘blame free’ culture, a conducive work-
ing environment, good communication with regular short meetings and agreed document
information distribution all help to create this type of win–win environment.
Poor management of people and lack of trust produces the ‘them and us’ approach. This
approach may occur between the contractor and the client, between the design and construction
teams or between the contractor and their supply chain. In all cases, the effect is unproductive
use of time. For example, a failure to look at ways of getting over problems to mutual advan-
tage and time spent trying to apportion blame and making claims leads to one or both parties
being out of pocket.
At tender stage, the ‘them and us’ approach produces a low bid price and claims for extras.
This produces bad feelings and a ‘win–lose’ or ‘lose–lose’ relationship between the client
and the contractor. This can be avoided by an open attitude on both sides and a commitment
to collaboration.
The project manager may also agree to some task-orientated objectives, such as zero
defects, planning to substantially improve health and safety risks and shared bonuses for
reducing costs below budget. This particular agenda would relate to the improvements
recommended by, amongst others, the Egan reports of 19988 and 2002.9
Presenting a business case

A business case is developed and presented at the inception stage of a construction pro-
ject to confirm the expected returns. By no means is this a final document; rather, it
remains as a reference case in subsequent reviews to check if the assumptions are still
valid and where changes are to be made. It can also help to keep track of these changes.
The DRIVE mechanism summarises the review process so that the business case reflects
the latest agreement:
• Develop. At the inception stage, the project manager and the team work with the cli-
ent to align strategic and business needs. The resulting business case, also known as
the strategic business case (SBC), is preliminary as it is based on limited evidence to
test assumptions.
• Review. The feasibility stage and subsequent stages define the overall scope, develop
the preferred scheme design and decide on the optimum combination of cost, benefit and
risk. This leads to a value and means-tested business case or an outline business case
(OBC). It is useful to freeze design changes before the project enters the bidding stage.
A full business case (FBC) may include the contractor’s design, which will be costly to
make changes to after the financial close.
• Implement. The project manager takes control of the strategy and oversees delivery of
the business case. The project is implemented in accordance with the project execution
plan (PEP) and the project manager manages the design, procurement, construction and
handover stages. Changes made must be value-tested against the latest agreed needs.
• Validate. The project manager’s role is to deliver value for the client and stakeholders.
They act as a facilitator, referee, problem solver and value auditor to verify that the pro-
ject delivers its objectives as planned and within the set budget.
• Evaluation. Commissioning and post-project reviews confirm that the client’s needs
are fully met. Evaluation and feedback ensure that deliverables comply with expected
outcomes and benefits. Deviations from expectations should be considered as an oppor-
tunity to do better next time.
Project constraints
In addition to a statement of need, a business case will contain constraints such as budget lim-
its, date when the building is required and some performance requirements. Business budget
constraints are different from project constraints and refer, for a profit-making venture, to a
profit margin that at least covers the risks of the investment and provides a return to share-
holders. Public ventures need to objectively assess benefits against costs to justify value for
money, which seeks to balance the equation for costs, quality, time, risk and benefits. Non-
profit ventures do not have to cover shareholder expectations, but still need to cover the risk
of not breaking even and the cost of new investment being unaffordable.
Time constraints are often indirectly connected with returns. A new supermarket can
afford greater capital costs if it is able to start trading earlier to a ready market. Every
day saved will equal a profit bonus even if it is shared with the contractor. If the money
is reinvested into capital cost that provides life cycle saving, then continuous cost benefit
is achieved.
Quality constraints are based on balancing the durability of higher cost materials and best
quality workmanship with the reduced maintenance costs. Cheaper materials may be used
where less durability is required or there is a shorter-term interest in the asset or where capital
funds are scarce. The additional benefits of quality are that it projects an attractive image to
the customer.
According to the CIOB,10 a sound business case prepared for presentation at project
inception will:
• be driven by needs
• be based on sound information and reasonable estimation
• contain rational processes
• be aware of associated risks
• have flexibility
• maximise the scope obtaining best value from resources
• utilise previous experiences
• incorporate sustainability cost-effectively.
Such a business case should address the following key questions: what is a reasonable and
affordable budget cost; what are the investment and funding opportunities; and what time
scale is required? We shall now look at Case study 2.1 to test the strength of the business case.
Case study 2.1 Testing the feasibility of new student

accommodation
The business case for the provision of new university student accommodation is to
replace outdated facilities and possibly enhance the location of the residences by
reducing distance from the university and making them viable for alternative use out
of term time. One problem the university faces is the unavailability of borrowed capital
credits and so it must generate capital by selling assets or commission provision on
the basis of a revenue charge, for example leasing or a private finance initiative (PFI),
discussed in Chapter 4). It also needs to consider that, because students now con-
tribute fully to their accommodation and to some of their fees, accommodation has to
(continued)
(continued)
be attractive to draw them to the university. The university investigated the alternative
routes open to them without capital finance and compared them with the cost of doing
nothing. The option to proceed with a leaseback arrangement with a housing associa-
tion was eventually adopted.
The objectives of the university are to provide 400 student places in a safe, secure
and reliable environment under the overall control of the university. It proposes single or
grouped ‘en-suite’ rooms with the provision of catering services to widen use out of term
time for conferences and the provision of laundry and common rooms for communal
purposes. The following issues are addressed in the business case:
• Site opportunities. Some existing sites have restrictive covenants on redevelop-

ment so newer sites may be reviewed.
• The performance of the service will be in accordance with the university design
standards and outside provision of facilities management (FM) services will be
judged against the university’s own FM standards.
• Initial costs and rents must be affordable for students and competitive in the
private market.
• Management of the flats by others, but not in relation to matters of discipline,
pastoral care and leadership, which will involve the university.
• Risks judged to be significant, such as construction cost, timing overruns and sub-
sequent defects in construction, funding and ownership of assets, the standard of
management of the service, long-term maintenance and equipment replacement,
levels of student occupation and out of term use and bad debts from unpaid rents.
• Transfer and retention of risk. To transfer construction problems, the level of availa-
bility and standards of service and out of term use fully to the provider by delegating
FM services as well as property ownership in return for a fixed service charge. In
addition, transfer the risk of below 80 per cent term time occupancy to the provider.
To retain risk for student discipline, pastoral care, rent collection and the provision
of wardens. To provide affordable rents for the students.
In order to keep the service charge down, the university also considered the permanent
transfer of obsolete land to be used for independent development by the provider.
Analysis
If we compare Case study 2.1 with the criteria for a sound business case indicated by the
CIOB Project Management Code of Practice, then we can make some favourable compari-
sons with the points made:
• Driven by need. The university was commissioning new residences because of the
changing demands of more market-orientated students and the rising costs of maintain-
ing a catered service and shared rooms. The desire for renewing stock alone is not a
sufficient driver to attract students, who also have changing needs.
• Flexibility. The danger is that the fashion for single rooms in flats may change again;
for example, students might prefer to pay less and share or to have catering facilities.
Conference use does provide some flexibility.
• Sound information. Reasonable estimation has been used to assess the market, but gen-
eral trends have been quoted and not specific market research for the project. In this case,
a number of options have been presented in the outline business case. Affordable rents
are considered.
• Rational processes. A written business case and the use of option analysis using dis-
counted cash flow allow for a comparison of options and the do-nothing option is a
rational approach so long as the disadvantages of doing nothing are also quantified and
risk transfer is quantified objectively. A tendering process that is competitive or negoti-
ated from a strong position is also important. In this case, there was some concern that
only one housing association was prepared to bid.
• Awareness of associated risk. A risk register associated with a probability index means
that the comparative impact of risk can be assessed. In this case, a range of business,
delivery, property management, occupational and user risks were considered along with
transfer of ownership risks.
• Scope and best value of resources. As the university did not favour rate capital credits or
borrowing rights, it was considering a number of options which provided provision other
than immediate ownership. The release of land to a developer kept rents down, but was
it a short-term view and did the university get value for money as a result?
• Previous experience. This was based on some favourable reviews of a development in
similar circumstances.
• Sustainability. The only real references are to social aspects of sustainability in this case
and these refer to enhancing the communal facilities in the accommodation to enhance
student quality of life and could be extended to choice of location to suit neighbourhood
concerns. Planning requirements today would need evidence of carbon reductions and
the use of renewable energy where possible. This is paid back long term. The earlier this
is done, the lower the cost.
It would be fair to say that there is, on balance, a sound business case. The university has a
strong sense of its requirements and responsibilities.
Business improvement
The Construction Clients’ Group (CCG)11 describes its role ‘as promoting best practice as
a construction client that results in best business improvement through a construction out-
come’. The CCG, together with Constructing Excellence, commits its members to sharing
best practice through benchmarking and training. It recommends:
• Client leadership championing best practice with a clear vision and detailed,
brief, clear financial objectives, client integration in the project team and adequate
client resource.
• Integrated and transparent procurement decision making with selection on best value,
early contractor involvement, collaborative working, fair payment, risk management and
a non-adversarial approach.
• A commitment to people, including community involvement, training and development,
equal opportunities and considerate sites.
• Sustainable buildings that address environmental, social and economic aspects of pro-
jects with waste minimisation and low carbon performance, enhancing and protecting
the natural environment and that of the community.
• Design quality so that designs suit the practical, functional and operational require-
ments of the building to meet client and user needs and to ensure that whole life value
and cost-effective solutions are delivered. Design will be tested by third-party reviews
and other tools.
• An approach to health and safety that involves a register of key risks and projects aspir-
ing to be injury and accident free. The CCG has set up a working group to develop
improvements.
All parties in the construction industry need to abide by these commitments to deliver con-
tinuous improvement, for example a 50 per cent reduction in CO2 emissions.
Managing change in the business case

There is a need to build flexibility into the system so that an all or nothing approach to pro-
jects does not exist at the business case stage. Many business cases suffer from optimism bias
even after they are incepted to a construction stage. The role of a continuous review process
during delivery by senior sponsors allowing withdrawal of funds may seem draconian, but
these reviews can be used as an early warning to adjust funding and design to meet objec-
tives. A change management process can be built into the project procurement and contract
that predicts cost of change ahead of the need to make a decision. Reporting that continuously
monitors benefit realisation at the business development stage and responds strategically to
benefit erosion or enhancement is also needed. Case study 2.2 describes the legacy of the
2012 London Olympic Games.
Case study 2.2 Olympic business legacy

For the 2012 Summer Olympics in London, the project legacy was a key issue to justify
the cost for only a short use of the facilities. The business case for the Olympics was
to reuse facilities by reconfiguring the stadium, student village and media centre to
enhance national facilities and East London for its residents in the long term. A clear
design was commissioned that allowed the 90,000-seat central stadium to be partially
dismantled to create a reduced seating national athletic stadium. This was subsequently
found to be generating insufficient revenue and had to be leased out to a football club
that would allow it to be used for athletics out of season, thereby ensuring that the public
legacy is preserved. Maintaining legacy was a priority over revenue. Negotiations led to
a price cap below the economic value that could be gained for the site to afford funding
other public projects for the good of East Londoners. The final solution was to maintain
a smaller national stadium.
Transformational change management

The process of using a project to bring about fundamental change is well-established.
Construction projects often partly represent the means by which change is achieved through
business transformation by enabling different spatial configurations, recognising more flex-
ible working patterns and allowing a lower carbon building, but also sustainable working in
social and environmental terms. Transformational change manifests itself in the external and
internal product integrity as defined above and makes the project itself, and the way that it is
delivered, an integral part of the equation for business success. Case study 2.3 describes an
example of transformational change in Tanzania.
Case study 2.3 Community infrastructure

A community-based infrastructure upgrading project redeveloped nearly 1000 hectares
of unplanned settlement in the city of Dar-es-Salaam. The project involved 31 communi-
ties with a total population of over 400,000, and its overall scope included a network of
nearly 150 km of link roads, streets and footpaths, over 200 km of street and roadside
drains, 70 solid waste collection centres and nearly 3000 poles for streetlights. The
two-phased project was jointly funded by the World Bank, the Government of Tanzania
and local authorities. Community participation was sought through community planning
meetings and voluntary relocation to allow demolition and re-planning of urban infra-
structure. The overall aim was to improve productivity and the wellbeing of people in the
low-income communities by:
• upgrading the existing unplanned infrastructure

• strengthening the municipal capability to provide and maintain infrastructure and
services
• engaging the community in planning, building, owning and maintaining the social
infrastructure that supports their wellbeing.
The business case for the project was the potential transformation of the wellbeing of
over 70 per cent of the population in the area, who lived below the poverty line and in
poorly serviced and unplanned dwellings, by providing them with essential services such
as road networks, interconnected storm water drainage, clean water kiosks and waste
collection centres. The project outcomes were better facilities to eradicate breeding areas
for water-borne diseases, which would then reduce illness and mortality rates so that
productivity and wellbeing would also improve. Provision of planned roads and footpaths
would make the communities accessible for refuse collection and emergency services.
The project in this case study transformed lives in the communities involved and raised the
value of both the land and properties, thereby contributing to the reduction of poverty. Its
success informed other policy makers on the impact of improved unplanned settlement, and
similar projects were adopted by several other cities in Tanzania and in other developing
countries, including Brazil, India, Kenya and South Africa.
Developing value in construction: the Gateway framework for

decision making
The Gateway Review™12 is a project life cycle procurement guide for public contracts devel-
oped initially by the UK Treasury in order to ensure consistency and value for money in
government and other public contracts. It is used here as a generic model to underline the key
client decision points. There are six decision points, called gateways, described below and
illustrated in Figure 2.7.
• Gateway O establishes whether there is a business need.

• Gateway 1 assesses the high-level business case and budget and makes way for expendi-
ture on outside consultants.
• Gateway 2 assesses the feasibility study and proposed procurement strategy and gives
the critical go ahead to proceed with contract documentation for implementation of the
project. A proper project execution plan should be in place to proceed.
• Gateway 3 assesses the contractor tender bids report and provides the go ahead for
detailed design and construction. (In this integrated model it is assumed that the contrac-
tor produces the scheme design, but a separate design contract could be procured prior
to tender competitions by the contractor.) There are two additional decision points at
completion of planning application and detail design stages.
• Gateway 4 is the acceptance of the finished project either for a separate client fit-out
contract or for occupation.
• Gateway 5 is after occupation when a benefits evaluation takes place.
These gateways are the basis for getting approval to proceed to the next phase of the project
cycle and making sure that there is adequate information available for client decision making
for the viability of the project. This system has several points to assess value, but note the
early and later value management (VM) opportunity for gateways 1 and 3.
The system in Figure 2.7, which has been used by the UK government to promote better
procurement efficiency, would suit some types of non-traditional procurement. This sys-
tem has been set up for the client, but the project manager is appointed after gateway 1. At
this stage a feasibility study is commissioned with an outline design and a risk assessment
and then a more general value management opportunity with the project team appointed. A
project execution plan is prepared, which covers the strategy for the job and considers the
programme, cash flow, procurement strategy, project organisation, health and safety plan,
environmental impact and design management.
The plan establishes how the project is going to be carried out whilst the feasibility
study establishes how the project can be delivered viably and within budget, time and
Gateway 0 Gateway 1 Gateway 2 Gateway 3 Gateway 4

Strategic Business Procurement Investment Readiness
assessment justification strategy decision for service
Prepare Outline design
Set budget business Contract O
Identify case documents Detail design c
Project
business evaluation Output c
Tender on Construction
needs and specification u
Risk & value whole life p
stakeholders Procurement Handover
management costs y
strategy Final account
Client Client Client Client Client
approval to approval to approval to approval to approval to
proceed proceed proceed proceed proceed
Figure 2.7 The Gateway procurement life cycle

quality constraints. A project manager is the key person in providing good advice on the
most suitable procurement strategy and in developing a master plan for delivering the
project to meet the customer’s needs and at the best value.
Value for money is increasingly involving an appraisal of whole life cycle costing (WLC),
which analyses capital costs (CAPEX) and operating and maintenance costs (OPEX). This
puts into question the acceptance of the lowest capital price tender and forces clients to think
through the impact of a building’s design, energy costs, location and financial benefits as a
single entity with the capital value of the building created. The true consideration depends on
reliable figures being available and the value of WLC to the client will vary according to their
post-contract interest in the building. Some procurement options, such as prime contracting
and design, build, finance and operate (DBFO), put the CAPEX and OPEX risk on the pro-
vider and this is another driver for WLC appraisal. OPEX costs are also recognised as needing
to be sustainable in a climate where scarce resources are being increasingly recognised. The
processes of value management and life cycle costing are further discussed in Chapter 10.
Project stakeholders
Stakeholders are those who have an interest in the project process or outcome. The obvious
parties to the contract have an interest in the outcome of the project. The client wants to get a
building that meets expectations, therefore generating expected returns; the member organi-
sations of the project team want to make good returns, gain experience and build a reputation
to gain further work; and users/employees want a resource that is comfortable and conveni-
ent. Those interested in the process might be those in the local community or employees of
the organisation. The community wants minimal disruption for neighbours, courteousness on
the part of project workers and an interesting project that employs people or gives something
back to the community.
Stakeholders are often classified as internal or external. Internal stakeholders are defined
as members of the project coalition and include the project delivery team, the client, sup-
pliers, users and those who provide finance and insurance. External stakeholders are those
outside this inside circle who have a stake in the outcome of the project or may be affected
by it in a significant way. This can be shown in Figure 2.8. They are unlikely to be contracted
into the organisation, but bring pressure to bear in indirect ways such as planning appeals or
raised insurance premiums.
As a project manager working on behalf of the client and responsible for the project
dynamics, both the client’s stakeholders and the project’s stakeholders become important to
manage. The client’s stakeholders, which are established at verification of need stage, need to
be made known to the project manager and will influence the project management approach
indirectly. We will mainly deal here with management of the client’s stakeholders, but some
of the stakeholders are related to the execution of the project and not to the business need.
In addition, there are many external stakeholders who have a direct or indirect impact on
decision making and consultation and it is wise to get to know their views. In the community
these amount to neighbours, users of affected services, local authorities including planning
authorities and regulatory enforcers such as building control, highways and social services.
Developers can expect a lot of discussion prior to the planning phase to determine planning
gains and highway adjustments to reduce traffic impacts of major development.
Johnson and Scholes13 developed a mapping matrix shown in Figure 2.9, which helps to
identify what information should be available to different stakeholders based on their interest
and influence and therefore the priorities which should be put on managing the stakeholders.
Local planning
authority Insurers
Suppliers Consultants
QS
Architect
Legal team
Customers
Services
engineer PM Project
Project board Employees
sponsor
Government Structural Internal

regulations engineer User
Contractor
representative
Competitors Subcontractors
External Pressure groups

Communities
Figure 2.8 Internal and external stakeholders
Interest Predictability
Low High Low High
Minimal Keep Minimal Keep

Low Low
effort informed effort informed
Power Power
Keep Key Keep Key

High High
satisfied player satisfied player
Figure 2.9 Matrix for mapping stakeholders

Source: Based on Johnson and Scholes14 and Newcombe.15
They suggest that there are different requirements for management of stakeholders depend-
ing on their degree of influence (power) and significance, their predictability and interest.
Newcombe16 suggests that there are different requirements for the management of stake-
holders depending on their degree of predictability as well as their interest. There is often a
need to deal with the conflicting requirements of stakeholders – so who do you satisfy and
who do you disappoint? A project manager needs to satisfy the client’s ultimate interests,
which means making decisions to ensure the project’s efficiency objectives do not obliterate
the business effectiveness objectives.
Power may issue from a stakeholder’s ability to take action, which could be helpful or
detrimental to the project outcome. A good example is the planning authority, which can hold
up or stop the project. Legally enforceable action, such as compliance to fire regulations,
may do the same. Excessive interaction may not occur but can nonetheless have significant
adverse impacts.
Interest issues from the effect on working relationships and the amount of interaction that
exists between the stakeholder and the project team. These can have a slowing down and
souring effect that affects the productivity of the project where information is unavailable or
unreliable. An example of this type of stakeholder would be a key specialist contractor who
provides less than full resource requirements.
Unpredictability is an important aspect to manage as ‘sleeping interest’ may emerge where
no concerns existed previously. They may ask for something at a late stage and therefore
become disruptive and powerful stakeholders who are unpredictable; for example, planning
committee members who disagree with the views of planning officers can delay programmes,
escalate costs or even stop a project altogether.
The community is also a stakeholder and may be able to have considerable power where
a group is able to obstruct progress. A client may feel this pressure and make instructions
for change as a powerful stakeholder. A project team will be affected by delays, for example
archaeological finds. Case study 2.4 covers a real case.
Managing stakeholder conflict

A project needs to be further defined by reference to those who will later have an interest in
it. The briefing process is already complex and developmental in order to take on board the
constraints, available resources and opportunities that arise during the developmental period.
Hence it is important at this stage to get past mapping and simple consultation to practised
engagement with multiple parties.
Stakeholders and users in particular need to be handled carefully if they are involved in
the briefing process. Focus groups are good but if they are not handled carefully different
users may come into conflict with each other and compromise may not be easy. If the wrong
questions are asked, e.g. ‘What would you like?’, then expectations can be raised above the
ability of the budget or other constraints to meet it. It is better to err on the negative side.17
Dealing with conflict is another aspect of stakeholder management; for example, a change
made in response to one stakeholder’s preferences may negatively impact the interests of
another, as Case study 2.4 shows. Circumstances can also arise at subsequent stages that
impact funding, as Case study 3.1 shows in the next chapter.
Case study 2.4 Stakeholder conflict

The proposal for sports facilities in the extension plan for a university revolved around the
conditional provision of a community swimming pool based on shared cost between
the university and the local authority that would become available for community use also.
With the opportunity of a new football stadium built on university land for no extra cost
and the offer of free access to university football and rugby matches, the provision of a
swimming pool was seen to be surplus to requirements when there was no local funding
forthcoming for it.
How should this be managed? Which stakeholders will gain at the expense of
others? Will both facilities be expected? These questions could be raised during stake-
holder consultation.
User stakeholders present a more social set of requirements18 from internal stakeholders who
will have clearly defined their business needs. This requires a different type of consulting and
management, which is based more on listening, innovation and mutual acceptable compro-
mise. The proximate placing of wind farms or telephone transmitters near communities is a
typical example of this due to the strong feelings involved. Specific problems and objectives
must be identified and divorced from subjective statements by appointing representatives to
resolve conflict.
Minor stakeholder views may be seen as important in the long term, as illustrated in
Case study 2.5.
Case study 2.5 Stakeholder pressure

Amid the concern that aircraft are noisy and pollute the air by emitting carbon dioxide,
stakeholder engagement is almost superficial and often uninformed. In 2014 some 20,000
protesters took to the streets of Nantes in France to oppose the planned new airport to
replace the existing congested and inefficient airport. Although there may have been some
political motive to the protest, a genuine concern was lack of correct information made
available to the relevant stakeholders. Individuals and pressure groups, such as environ-
mental campaigners, trade unionists, farmers and owners of nearby houses, protested
against relocation and the impact to the environment because they were not convinced by
the economic justification of the project. In their view, the airport was too costly, unfriendly
to the environment and unnecessary, bearing in mind that an underutilised airport is
located nearby. Construction was due to start after a design and build contractor had been
appointed but had to be held back due to this long-standing debate. This resulted in seri-
ous uncertainty surrounding the project, which lead to the target date for the opening of the
airport to be pushed back by at least two years. In the end, the government withdrew the
proposed project and announced that the land would be used for agricultural purposes.
This case is just one of many in which projects are delayed or abandoned as a result of pres-
sure exerted by stakeholders who are sometimes considered to have little power or interest.
Stakeholder analysis will help project managers:
• understand the differing impacts of stakeholders and the conflicts between them, though
some will always be dark horses especially where they are little known
• harness support from powerful stakeholders
• meet the project mission and objectives
• understand community and societal impacts.
Through stakeholder analysis, the project manager can begin to develop a strategy that will
be most beneficial to the client and also ensure they satisfy the key players and manage risk
and uncertainty better so that unpredictable actions are reduced.
Managing stakeholders
Managing stakeholders is important and consists of a mixture of selling the project objectives,
satisfying the customer and compensating those stakeholders who have become dissatisfied.
Making the logic of the project clear (selling) is a longer-term solution as it attempts to
draw stakeholders behind the project and thus avoid wasting resources by taking preventative
rather than reactive action. Compensating stakeholders may be expensive but can result in a
better project solution if other benefits are provided in exchange for lost amenities.
Chinyio and Olomolaiye19 point out that there are multiple ways of categorising and map-
ping project stakeholders and suggest that a multidimensional plot is needed to catch the full
complexity of the interactions of stakeholders before they can be understood and managed.
One particular management requirement is to bring the negatively and neutrally positioned
stakeholders onside, as suggested by Maister’s20 first law of service:
Satisfaction = Perception – Expectation
The first law of service is a good benchmark for managing stakeholders, as it has an effect
on the initial planning. This law distinguishes between what the stakeholder sees as a product
outcome or a level of service with what they were expecting from the project. To achieve
stakeholder satisfaction it is not enough to perform satisfactorily as this will simply neutralise
expectation and provide zero satisfaction. Stakeholder management is about making the sum
positive by exceeding expectations in time, cost and quality. In practice, this means advertis-
ing the core objectives that will be the main outcomes and what must be achieved and setting
about achieving some extras.
From a contractor’s point of view competitive tendering leaves no room for optional extras
for the client, which leaves the area of service as the most powerful way of exceeding expecta-
tions. It is also clear from the second Egan Report21that the exceeding expectations principle is
clearly enshrined in their vision statement so that customer value is optimised. Negotiated ten-
ders (also espoused by Egan) leave more room for the client to arrange a ‘win–win’ situation.
Certainly, research22 clearly demonstrates that how a service is provided and being able
to do what is promised are crucial to keeping stakeholders on the project manager’s side.
Continuing service improvement is also important to maintaining stakeholder satisfaction.
Case study 2.6 refers to the efforts of the client to satisfy internal and external stakeholders
when moving its headquarters.
Case study 2.6 Internal stakeholder relocates

headquarters
A major insurance company made a strategic decision to move its office from the city centre
to a peri-urban position to gain more efficient running expenses, pull all personnel together
in the same building and make efficiency savings. It also took advantage of tax breaks
being offered by the new local authority to gain employment opportunities. The custom-
ers are not affected as most business is conducted remotely and shareholders are happy
because the business will become more efficient and so produce better returns. Existing
employees, however, are mostly disappointed because many of them will have to travel
further and will not have access to the benefits of city centre shopping and amenities in their
lunch breaks and after hours. The new facility will be located within a residential community
and residents are extremely worried that it will cause even worse traffic congestion and
parking problems and impede their view of access to green fields.
(continued)
(continued)
What does the company do?

In its new building plans it offers a gymnasium and additional sportsamenities, ample
car parking space and an interesting ‘street’ environment to compensate employees. It
also develops its grounds to provide a lake, trees, walks and picnic sites that will provide
alternative lunch time activities and encourage wildlife to stay in the area. This will both
partly satisfy the local community and fully satisfy the local planning authority, which
has stated that planning permission will only be granted if such measures are taken in
response to the objections of local residents. The shareholders will suffer no long-term
loss on their returns and the solution will partly alleviate loss to the other stakeholders.
Case study 2.7 looks at the controlling factors for a public client and the need to manage the
various aspects so the satisfaction and project constraints are kept in balance.
Case study 2.7 External stakeholders for a new

swimming pool
A well-publicised intention of a local authority (LA) to supply a 25-metre swimming pool
during 2003 to supplement sports facilities in the area may have helped the councillors
to get elected, but the programme slipped to 2004 as a result of budget availability. In
this case, the stakeholders were the council tax-paying public, neighbours and the LA.
When it opened the swimming pool in the summer of 2004, it decided that it would
compensate locals by fitting out a new fitness training suite to offset the disappointment
caused by the delay. This proposal emerged from earlier consultation with local resi-
dents during the planning stages but was not promised in the final scheme. Stakeholder
satisfaction has been achieved by exceeding outcomes and offering people more own-
ership by consulting them. The provision of a basic 25-metre swimming pool in autumn
2003 might have got councillors re-elected and a basic pool in 2004 would have caused
frustration and possibly dissatisfaction because people would have made plans and had
to alter them.
The LA budget was a major constraint for the project. Councillors wanted to include
the fitness suite, preferably within the same budget. Budget savings could have been
made by considering one or more of the following:
• A value management exercise to question other requirements in the brief, such as

the amount of car parking and the orientation of the building, which could reduce
the length of the access road.
• A life cycle approach that would take the opposite view to achieve reduced running
costs and increased component life. This could be used as an argument for an
increased capital budget.
• A later cost-cutting exercise that would, in contrast, reduce the roof specification,
the thickness of the tarmac and generally reduce the quality and increase the run-
ning costs of the building.
In these circumstances, the first two would now become a specific project design issue
and would have to be levered into the brief development stage. In terms of managing
stakeholders, the client would need to be directed to make these decisions early.
Conclusion
The business planning process begins before the inception stage of the project and informs
the client about the feasibility of the project in outline terms. The briefing and ongoing devel-
opment of the brief takes place in the next phase of feasibility testing when a solution is
engineered by clearly communicating the project objectives and reconciling them with pro-
ject constraints. This stage optimises the value and reviews the effect on the stakeholders to
mitigate the conflicts that may arise.
Egan and the Construction Clients’ Group both issued reports indicating that the integra-
tion of the client into the construction process is a necessary and not an optional development
that must be made if value is to be built into the process. This has brought about the wider use
of negotiation during the procurement process in order to make the client’s objectives more
accessible to the whole supply side and build in value. The integrated project team is seen
as a means of maintaining supply chains from project to project so that its members are not
always learning on the job. This depends a great deal on the greater involvement of the client
in choosing limited partners for repeat work and naming suppliers and a lot of effort needs
to be made to convince one-off clients to be more involved. It also means making a strategic
move away from the single-stage competitive tendering process and selection of the lowest
price. This system ignores other aspects that bring value to the business case, such as an
earlier finish, guaranteed fixed prices, flexibility, sustainability and reduced life cycle costs.
The creation of more strategic long-term relationships is made possible by adopting forms
of contract that allow for more direct contact between the contractors and the client, such as
prime contracting, construction management, design and build and PFI, where appropriate.
Stakeholder mapping and management is seen as increasingly important as external stake-
holders and building users can impact unpredictably on the project outcomes if they are
ignored. One way of managing this issue is to make some concessions or provide com-
pensation as a clear means of negotiation for their support of the main project objectives.
Sustainable outcomes may sometimes clash in the eyes of different stakeholders and the
social outcomes may have to be varied to provide community gains that are not partial to one
party at the expense of another.
Notes
1 Masterman J. and Gameson P. (1994) Client Characteristics and Needs in Relation to their
Selection of Building Procurement Systems. Proceedings of CIB W92 Symposium: East meets
West: Procurement Systems, 4–7 December, Hong Kong.
2 Boyd D. and Chinyio E. (2006). Understanding the Construction Client. Oxford, Blackwell.
3 Hansson S. O. (2005). Decision Theory: A Brief Introduction. Royal Institute of Technology, Stock
holm. Available online at: https://people.kth.se/~soh/decisiontheory.pdf (accessed 23 November 2017).
4 Office of Government Commerce (OGC) (2007). OGC Gateway Review 0: Strategic Assessment
Guidance and Templates. Available online at: http://www.gov.uk/government/publications/ogc-
gateway-review-0-strategic-assessment-guidance-and-templates (accessed 15 August 2018).
5 Egan J. (2002) Accelerating Change. London, Strategic Forum for Construction.
6 Maylor H. (2003) Project Management. 3rd edn. Harlow, Pearson Education.
7 Green S. (1999) Partnering: The Propaganda of Corporatism. Journal of Construction Procurement,
5(2): 177–186.
8 Egan J. (1998) Rethinking Construction. London, Department of the Environment, Transport and
the Regions.
9 Egan J. (2002) Accelerating Change: Consultation Paper by Strategic Forum for Construction.
London, HMSO.
10 Chartered Institute of Building (CIOB) (2014) Code of Practice for Project Management
Construction and Development. 5th edn. Oxford, Blackwell.
11 Construction Clients’ Group (2014) Clients’ Commitments Best Practice Guide. London, CCG.
12 OGC (2004). Achieving Excellence: Project Procurement Lifecycle. London, OGC.
13 Johnson G. and Scholes K. (2002) Exploring Corporate Strategy. Harlow, Pearson Education.
14 Johnson G. and Scholes K. (2002) Exploring Corporate Strategy. Harlow, Pearson Education.
15 Newcombe R. (1999). Stakeholder Management. Keynote address to the CIB65 Conference on
Customer Satisfaction, University of Cape Town, South Africa.
16 Newcombe R. (1999) Stakeholder Management: Keynote Address to the CIB65 Conference on
Customer Satisfaction. Cape Town, University of Cape Town.
17 Barrett, P. S. and Stanley C. A. (1999) Better Construction Briefing. Oxford, Blackwell Science.
18 Rittel H. W. J. and Webber M. M. (1972) Dilemmas in a General Theory of Planning, Working
Paper No. 72–194. Berkeley, CA, University of California.
19 Chinyio E. and Olomolaiye P. (2010) Introducing Stakeholder Management. In E. Chinyio and
P. Olomolaiye (eds.), Construction Stakeholder Management. Oxford, Blackwell-Wiley.
20 Maister D. H. (1984) Managing the Professional Service Firm. New York, Free Press.
21 Egan J. (2002) Accelerating Change. Consultation Paper by Strategic Forum for Construction.
London: HMSO.
22 Office of Fair Trading/Ipsos Mori (2008) Consumer Detriment: Assessment of the Impact of
Consumer Problems with Goods and Services. London, HMSO.
3 Project development and evaluation
What? Project managers must look beyond the brief given as it is not always possible to
develop a full brief at the conception stage. This chapter develops functional integration
by bringing together project management body of knowledge, the RIBA Plan of Work and
the CIOB process framework in developing a project definition. The primary objectives of
the chapter are to:
• determine the elements of project definition

• map the construction process
• assessing project feasibility and affordability
• manage the project scope
• examine project development and evaluation techniques
• deal with external factors
• develop a risk-based decision framework.
How? Developing a project definition is the first stage whereby the client and the project
team develop a shared vision for the project. An integrated approach will ensure that client
value, scope and project objectives are carefully developed, agreed upon and communicated
among the parties to lower the risk of failing to meet long-term business objectives. At the
definition stage crucial decisions are made that must fully comply with both investors’ expec-
tations and regulatory requirements such as national and local planning frameworks.
Why? This chapter draws from the client’s business imperatives to develop a project scope
with a clear objective to be met. Project feasibility analysis gives the client some assurance
that the project will deliver the anticipated benefits congruent to business goals. Feasibility
implies the project is fit for purpose and therefore sets a precedence for the project team to
deliver to the utmost satisfaction of the client.
Project definition
Every construction project needs to have a clear brief that is realistic, derives from the cli-
ent’s objectives and satisfies the business case. The initial brief at inception is verified and
developed in the feasibility and strategy stages. Project definition is a result of carefully
appraised investment options. The appraisal process needs financial and technical aspects
to ensure the viability and achievability of the project from cradle to grave. The project
management body of knowledge identifies definition as one of the most critical stages to get
the project right, through a shared understanding via early consultation with authorities and
engagement with internal and external stakeholders. Project definition is a managed stage
to reach an agreed project scope and strategy, addressing the question, ‘What value does
the project bring to the client organisation?’ by focusing on the outcomes of the end results.
Therefore, it is important that the project definition is founded on the in-use requirements to
build the foundations upon which the overall project scope and the boundaries of the project
management process are determined.
Scope management
Project scope defines what the project will deliver and how the product will be used to meet
needs. Scope definition will include benefits to be realised by both the client and end-user
and has two aspects:
• Product scope. The definition of the product features and functions. This is provided in
initial form by the client and is developed by the project manager and the design team. It
is closely connected with the design brief.
• Project scope. Specifies management or the work that must be done in order to deliver
the project with the features and functions specified. It is the prime concern of the project
management team, guided by client and project constraints (this is covered in depth in
Chapter 5).
The CIOB Code of Practice recognises project scope as a key requirement of the outline
project brief. During project definition it is useful to state what the brief does not cover
as an aid to setting the boundaries for the project. Project scope has the following specific
significances:
• communicates the overall aspirations and expectations

• confirms project requirements that satisfy the need
• defines deliverables in terms of what will be constructed
• identifies the work required to complete the project
• sets boundaries for project inclusions and exclusions
• can be used to agree with the project manager on success criteria
• acts as a starting point to determine design, cost and quality
• is a baseline for change control.
Product scope may be in prescriptive or performance terms. The more the brief is described
in performance terms, the more there is room for developing it and adding value. This gives
a sliding scale in construction from a client who describes their business requirements, such
as ‘produce 100 cars per week’, to a client who hands over the drawings defining the loca-
tion, the building type and preferred material specifications. In practice, a client will use their
experience to specify key product components and put building design in the hands of a team
of specialised designers.
The Project Management Institute (PMI)1 recognises five process groups: initiating, plan-
ning, executing, controlling and closing. These integrate the project life cycle and help to
control the scope. These are related across the life cycle phases in Figure 3.1.
Figure 3.1 clearly shows how scope management is applied across the project life cycle.
A control system ensures that scope does not ‘creep’ and lose value.
The project contract or charter between the client and provider formally recognises the
existence of a project and provides formal reference to the business need the project addresses
Project development and evaluation 57
Design and
CIOB phase Inception Feasibility Strategy Commission
construction
Execution and
PMI process Initiation Planning Close
control
Scope
Example of Client Scope Scope planning Scope
change
scope brief definition OBS and WBS verification
control
Figure 3.1 Integration of project scope with life cycle
and, by reference to other documents, the product description or project brief or perfor-
mance specification. Constraints are recognised in the contract conditions and will refer, for
instance, to a contract sum, a defined time period, recognised behaviour and protocol and
assumptions for managing the contract. Key documents in construction are standard condi-
tions of contract, drawings, specifications and sometimes a contract programme and priced
bill of quantities. The consultants are employed by terms of appointment or by tender. There
are five hierarchical planning and execution stages in scope management:
• At inception the client’s brief is received giving a scope of works. The more performance
based this is the better, as a value and purpose can now be reviewed.
• The feasibility stage will review methodology to achieve project scope; that is, to provide
scope definition.
• Scope planning identifies the strategic relationship between groups of activities and
facilitates decision making. In particular, it should identify the project deliverables and
objectives as well as work breakdown structure (WBS) and organisation breakdown
structure (OBS) and task responsibility.
• Scope change control manages changes in the scope of work that was initially
established in the budget. This becomes most critical after the scheme design, but
significant changes in scope will have a knock-on effect on the scheme design and
detail brief.
• Formal inspection takes place at the end of a project or a phase to verify the scope of
the project.
Determining the elements of project definition

Project definition is carried out in the period from receiving the performance specification
during the inception stages up until the receipt of full planning permission. This is the right
stage for risk and value management workshops. Only then can a working brief be estab-
lished. The RIBA Plan of Work2 lists work stages to reach the planning application stage
when the client’s approval allows a scheme to be submitted. These stages are related to the
traditional forms of contract and procurement and assume a two-way relationship between
the client and their designers. In Figure 3.2 the RIBA plan has been linked to the relevant
project life cycle stages, as follows:
• Strategic definition gathers client’s requirements and possible constraints on develop-
ment and feasibility leading to development of business and initial brief. Mandates and
probable procurement route will also be considered.
• Preparation and brief confirm key requirements and constraints to develop objectives
for the project, including energy performance, and budget ceiling. It also identifies
organisational structure and the range of consultants that might be appointed, including
the lead designer.
• Concept design takes into account the feasible scheme and advice from pre-planning
consultation. Design iterations are possible to meet budgetary and planning require-
ments. In a collaborative project, information and models (such as BIM outputs) will be
exchanged among designers.
• Developed design completes development and completion of the detail brief and applica-
tion for full development control approval. Design and planning processes may involve
several iterations before final sign-off by planners. Completion of design allows for
detailed costing for invitation to tender.
The RIBA Plan of Work stages provide a managed process with a greater emphasis on the
design stages. The appointed project lead will manage the project definition stage and this may
vary with different procurement systems. It is also important to consider the cross-over of the
strategy stage with feasibility and to understand that the programme, the client funding cash flow,
risk and value assessments and organisation of the project may have important impacts on design
and feasibility. The normal way to proceed with the development is to include option appraisal
or an iterative process to develop the design based on the client and site constraints considered.
The outcome should be tested to ensure it most effectively matches the client business
case whilst keeping capital, maintenance and operating costs at efficient levels. The RIBA
considers that the client should freeze information from the brief at the concept design stage
and freeze the design at the end of the developed design stage.
A fuller picture of integration

Integration can be achieved through the client working collaboratively with other internal stake-
holders, including the project manager and consultants, as they progress through the four steps
Feasibility Scheme design:

- finalise brief spatial, structural,
Client’s objectives
- design options services, cost plan,
- comparative cost specifications Development
- location and control/
funding Statutory approvals: approvals
Business case/ - pre-planning advice outline planning, legal,
client’s briefing - risk allocation environmental,
- value management appearance
Stage 0: Stage 1: Stage 3:

Stage 2:
Strategic Preparation and Developed
Concept design
definition brief design
Project definition
RIBA
Figure 3.2 Development of brief showing early RIBA Plan of Work stages
that define requirements: gather requirements from stakeholders, analyse the requirements, jus-
tify the requirements to distinguish needs from wants and baseline the needs. The statement of
needs specifies the requirements that a project has to satisfy; these should be comprehensive,
clear, well-structured, traceable and testable. The testing includes analysis of the feasibility of
the options to satisfy the needs. The outline brief is a reference document for the project man-
ager moving towards a detailed brief after the strategy stage, as shown in Figure 3.3.
The outline brief should cover the client’s objectives, functional requirements and pro-
ject scope business constraints. The development of the brief is a critical stage at which
the scope of the project is properly established and verified by the project constraints (see
Chapter 2), which ultimately leads to planning permission to proceed. This stage is iterative
and requires the involvement of the client with the designer and ideally, if the procurement
method allows, the involvement of the construction manager. The detailed brief provides
resource requirements, risk and value studies, costing, site constraints, feasibility and a full
planning application that is preferably discussed with the development control officer. At the
end of the project definition stage the detailed project brief should have determined scope
as fully as possible, because beyond this stage changes to scope become more expensive.
Sustainable design and an indication of the project’s impact on carbon reduction must also
be included and are crucial to planning consent.
The crossover between strategy and feasibility provides an axis for checking between the
process and the product. It means that:
• Design development must be cost-checked and inform the designer of the impact of
design change on budget.
• Project organisation and communications are properly considered.
• The procurement method can be evaluated to suit the client’s unique requirements.
• The impact of design on construction method and construction time can be assessed.
• A master plan for the key time constraints of the programme and cash flow is in place.
• Risk is identified and allocated.
• Best value is managed.
Feasibility
- Scheme design:
Client’s - finalise brief spatial, structural,
objectives - design options
Clarify services, cost plan,
- comparative cost specs Approval and
brief
pre-construction
Project - location and - Statutory approvals:
funding activities
constraints outline planning,
Client’s - pre-planning advice
- risk allocation legal, environmental,
briefing
appearance
- value management
Strategy
- procurement
- risk and value
- assessment
- access
- team
- cash flow
Outline brief Detailed brief
Figure 3.3 Project definition process

The project manager has a key responsibility to co-ordinate the whole process and to ensure
that the strategic/feasibility issues are properly integrated with the development of the design
proposals. This is also recognised as a separate skill by the RIBA. The following are man-
aged in relation to the external environment:
• clarification of the brief

• feasibility and affordability
• scope management, change and contingency
• risk assessment of external factors
• funding and location
• design management
• stakeholder management
• organisation and culture.
Managing the client

The client’s outline brief is their interpretation of the current problems, needs and possible
choices they are faced with together with the decisions to be made. Ambitious briefs lacking
clarity are common and their failings are often connected with people relationships and ineffec-
tive practice. Barrett and Stanley3 studied a number of problems with briefing for construction
projects and suggested five key solutions that go beyond normal good practice: empowering the
client; appropriate user involvement; managing the project dynamics; appropriate team build-
ing; and using appropriate visualisation techniques. Visualisation is an example of the failure of
‘good practice’; for example, giving the client a 3D walk-through without customised context is
often more confusing for them than being shown photographs of previous buildings. An effective
two-way system to communicate requirements between the client and stakeholders is required.
In getting to know the client, Boyd and Chinyio4 talk about the uniqueness of different types
of client and, in particular, their reaction to change, which is represented by the commissioning
of a construction project. They recommend a process consultation with the client that reveals
how they react to the industry, what their main business concerns are, how they manage conflict
and uncertainty, what drives their objectives, what frustrates them and what they consider to
be a successful outcome. Their research indicates that different types of client have different
levels of uncertainty and different means for dealing with it. This knowledge of the client may
be useful in the physical, emotional and psychological process of good project management.
Pegoraro and Paula5 observed that there is still a lack of formality in the way client briefs
are developed at the beginning of a project. The briefing takes place late in the design pro-
cess, usually before the first drawings, and identifies the design objectives. The stakeholders
should have been defined and their wants, needs and design constraints identified, analysed
and considered. Pegoraro and Paula identified lack of consensus on requirements, persistent
disconnection between problems identified and project solutions provided, unavailability
of formalised methods and limited specialist knowledge among designers as global issues
affecting the development of a client brief.
Informality of the briefing process is an important area of concern and leads to a poor
understanding of client values and an inability to optimise the value of the project. See
Chapter 10 for information on value and risk management.
Managing the design brief

Gray et al.6 talk about three distinct types of knowledge controlling design, which origi-
nate from:
• the client in the early stages of inception
• the individual designers in the concept and scheme design stage
• the design manager/construction manager in the detail design, specialist and construc-
tion stages.
The first two types of knowledge are particularly relevant to project definition, but by no
means exclude the third type.
Hellard7 identifies four possibly conflicting elements of the brief:
• Function: technical and physical requirements to meet the business case.

• Aesthetics: satisfaction of human subjective aspects.
• Cost: both capital and running costs.
• Time: the logistic requirements for commercial completion and occupation.
The client may wish to determine some or all of these elements in the outline brief, depending
on the degree of innovation and flexibility the client wishes to give to the team.
Development management
The Royal Institution of Chartered Surveyors (RICS)8 outlines five phases of the develop-
ment management process: initial concept, site acquisition, outline appraisal, outline planning
permission and full planning permission. These phases cover processes that must be exe-
cuted before the commencement of the tendering process for the construction of the works.
Service-orientated developments, such as public sector development projects, are driven by
impact and affordability while commercial developments, for example a large residential
scheme, will be driven by demand.
Analysis of the market

Market research is an important activity at the initial concept phase to ascertain demand for
the proposed development. The developer’s team, led by a development surveyor, carries out
initial research of the potential market to identify risks and opportunities and then shortlists
suitable sites. Detailed market research of the shortlisted sites will analyse the sites and ascer-
tain the surrounding population mix, its adjoining owners, adjoining uses, comparable rents,
any interested parties and the potential for obtaining planning consent. Access to up-to-date
and good quality information is paramount to assessing and triangulating current and future
demand. Performance and forecast reports published by central banks, public and profes-
sional bodies such as the RICS and other international institutions provide useful resources.
User information collected by estates agents and made available through dedicated websites
is an invaluable source of location-specific data.
Site acquisition and appraisal

In selecting or acquiring the site it is useful to assess its size, location and suitability for the
proposed development and the available budget. Early consultation with the relevant plan-
ning authorities should ascertain the chances of gaining planning permission. The decision to
invest depends on acquisition of the land. The CIOB Code of Practice recommends that three
to four sites should be shortlisted for detailed evaluation against the developer’s criteria.
Leasehold sites must be agreed with the freeholder (land owner) before they are considered
for development.
Isaack et al.9 list seven common constraints that must be assessed: access for pedestri-
ans and vehicles, bearing capacity of the ground, landscape features and surface run-off,
access to amenities, presence of underground services such as drains and cables, risk of
flood risk and ground contaminations. Sites with insurmountable constraints should be
avoided, while ground investigation surveys should be considered for brownfield sites
to detect risk of contamination from previous use. Infill and brownfield sites located
in active locations such as commercial areas involve serious access issues and it may
be useful to consult with the authorities responsible for highways and local plans to
agree on the scope and management of traffic both during construction and generated
after the project is completed. Increasing concern regarding climate change has made it
necessary to investigate exposure to flood risk and consider flood resilience measures.
Flood risk maps produced by relevant authorities should be researched as part of the
appraisal process.
Development control permissions

Planning regimes differ from country to country and among regions. It is inevitable that a
major construction project will be subject to scrutiny against national and local planning
policies and will require consent from the relevant planning authorities. There are two
formal planning stages depending on the size and complexity of the project. The outline
planning permission is the first opportunity to find out whether or not a proposal is likely
to meet the requirements of the planning authority. Outline planning permission verifies
access issues, the size of the development and the character of the building, including
its exterior appearance, layout, height and relation with outside spaces. The application
process is not as onerous as that required for full planning permission and it is useful
for early consultation with key stakeholders and early detection of design- and planning-
related concerns.
Full planning permission specifies how a site should be developed. Chapter 6 provides a
detailed discussion of planning applications. Little difference exists between the application
process for full planning permission for non-profit or public organisations and that for com-
mercial developments. While scheduling for planning application, adequate time should be
allowed for public consultation. The criteria used to assess applications are called material
planning considerations. These address planning policies, impact on surrounding buildings,
noise issues, overshadowing, privacy, loss of sunlight, highway issues, capacity of existing
physical infrastructure, sustainability, adverse impact on the environment, building layout,
design quality and landscaping. At RIBA Stage 3, detailed design is developed that provides
the necessary information. Seeking pre-planning advice also significantly reduces design
changes and saves time.
Public view: cost–benefit analysis

Cost–benefit analysis is a way of taking into account factors other than income that are
included in the wider term of benefits used to justify choice. For example, a bridge may
cut down the journey times of thousands of commuters, save time and money and boost the
local economy. Both financial costs, such as the cost of the bridge and maintenance, and
non-financial costs, such as loss of environmental facilities and homes blighted by additional
noise, are recognised. Benefits are recognised as cutting down journey times for thousands of
commuters and the return on tolls. A cost–benefit analysis is more relevant in the investment
appraisal of a public project that offers socially intangible facilities and would otherwise not
produce an accountable return. At inception stage the main consideration is that an acceptable
business case exists taking into account direct and indirect benefits. The appraised benefits
are then included in the benefit management plan (discussed in Chapter 15) for realisation
and monitoring.
Cost–benefit analysis is typically viewed as a soft management approach to the issue
of feasibility, but in public projects, which are not driven by commercial concerns, the
benefits have to be justified. If comparable projects are to be assessed, it is important that
the factors included are formally validated in the same manner for all projects and intan-
gible benefits are assessed using a standard valuation for comparable projects or options.
Different benefits may cross over and care is needed not to double count. The system is
categorised and valued as shown in Figure 3.4.
If the costs and benefits are as shown in the matrix in Figure 3.4, then:
Costs = 120,000 + 10,000 = £130,000

Benefits = 90,000 + 60,000 = £150,000
Net benefit = £20,000
The example in Table 3.1 shows how costs and benefits are weighted for a flood defence
scheme. Direct costs and benefits are those incurred from the building and direct revenue
for the service. Indirect benefits are those accrued by third parties, such as property own-
ers who are now able to insure or sell their houses. In practice, a lot of weight is put upon
Direct costs Direct benefits

£120,000 £90,000
Indirect costs Indirect benefits

£10,000 £60,000
Figure 3.4 Cost–benefit matrix
Table 3.1 Comparative examples of the elements of cost–benefit analysis
Flood barrier Benefit Cost

Tangible (measurable in Homes protected from flooding Construction costs, land, fees,
financial accounts) Increased value of houses compulsory purchase,
maintenance
Intangible (measurement of Gain on prime development Loss of wildlife habitats if this
financial worth requires land not flooded land now becomes viable
discretion and may vary for building
according to client values)
well-populated areas and less urgency. Therefore, benefit is put on areas with scattered
populations. Case study 3.1 describes flood risk assessment in the UK.
Case study 3.1 Flood risk assessment

A government guide exists for flood defence work in the UK, which weights its benefits,
such as the number of properties that would be saved from flooding. Factories and
offices receive a high weighting and the converse is true for agricultural land. Some
social benefits are also measured to ensure that urban and rural schemes are prioritised
equitably. Third-party costs are those incurred by the Environment Agency when deal-
ing with floods. Isolated houses in coastal areas near crumbling cliffs may be sacrificed
in an ordered retreat that will be less costly than flood defences.
Cost–benefit analysis and value

At the feasibility stage a public body may carry out a cost–benefit analysis where a shortfall
exists between the cost and income. This should be a rigorous and realistic assessment of
the financial worth of the benefits and the cost of intangibles. Mirabel International Airport
in Montreal, Canada, is an example of optimistic assessment of demand while running costs
are undervalued, leading to the impression that the project represents a viable investment in
the short term. The airport was built in 1975, at an estimated cost of $500 million, to service
the Olympic Games. In 2004 it abandoned passenger flights due to lack of demand and the
escalating cost of maintaining terminal buildings. In contrast, Apple Park, Apple’s headquar-
ters in California, cost 10 times more than estimated but its non-financial returns include the
promotion of innovation and collaboration in the high-tech industry.
Public and private developers differ in the manner in which they balance between capital
outlay and project benefits. In the case of a sports centre for a private developer, the income
from fees will offset the building costs, consultant fees and land. However, a private devel-
oper will pay substantial premiums for residential land near water; here, there is a direct
benefit from the saleable price. An indirect benefit is the regeneration of contaminated land
around old docks and recreational access without public cost. A public body can price the
benefit of providing the community with a social amenity that meets council objectives and
reduces crime amongst young people. In both cases the project is designed at minimum cost,
which will allow for the appropriate level of performance and levels of safety and meet the
objectives. In the case of anticipated social cost or an impact on the community, the added
costs are often transferred to the private developer by enforcing the requirements of the legal
system. Under the planning system, a new housing estate may have to provide a proportion
of affordable housing, contributions towards a new school, a better road junction or open
grassed areas. Under environmental law, a new owner is responsible for clearing up site con-
tamination and may have to provide acoustic barriers, holding ponds and flood defences, and
actually improve visual amenity.
In many cases it makes sense to set up a public–private partnership for developments that
are more socially beneficial. Here, a developer is offered an incentive such as tax breaks for
developments in unemployment black spots. Public money may be provided for infrastruc-
tural improvements that make the area newly accessible and clear up major contamination.
The public contribution is based on the final value to the private party – a host of regeneration
monies are available for former industrial and contaminated areas.
Feasibility and affordability

Looking at it proactively, feasibility seeks a solution that is possible within the applicable
constraints whilst simultaneously meeting the client’s objectives. Investigations are carried
out to give an overall picture of the costs and constraints of the project and whether it is finan-
cially, technically, socially and environmentally feasible. It may also be important to consider
the affordability of the schemes by looking at current and future commitments for funding. To
be realistic, a feasibility study should assess a funding appraisal including the expected return.
The CIOB Code of Practice10 describes several activities that are mentioned as part of
the feasibility study report. These investigate scope, risk assessments, stakeholders and pub-
lic consultation, geo-technical study, environmental performance and impact assessment (if
applicable), health and safety study, legal/statutory/planning constraints or requirements,
estimates of capital and operating costs, assessments of potential funding, potential site
assessments and a master development schedule. The feasibility study will give an overall
picture of the costs, risks and constraints of the project and assess whether or not it is viable.
Types of feasibility
At the outline business case stage, the client, before the concept design stage (Figure 3.2),
considers the viability of the project, whether they need the project and whether an invest-
ment in bricks and mortar offers a suitable return. This consideration often takes the form of
a development appraisal whereby the estimated costs of the development are weighed against
the income and benefit of the investment and the period of time over which it will break even
and make a return to the business is estimated. It will assess whether the investors’ minimum
profit margin has been generated. Profits must justify the risk and the additional effort of
investment. In a public sector project, cost–benefit analysis may be used. We shall call this
viability since its core aim is to determine investment potential.
At project feasibility stage a more detailed appraisal combines information from the
outline project brief, design options and procurement options to build a detailed business
case. Essentially, it looks to optimise value within the parameters that have been set, such as
appraisal of different designs, locations, funding and methods. Viable alternatives can now
be assessed against client values. For our purposes, we shall call this feasibility since its core
objective is to uncover the strengths and weaknesses of the options.
Client value is an important concept in feasibility and refers to the underlying beliefs
of the organisation; it may also be emphasised in the individual beliefs of senior managers
responsible for the project. Client values determine the priorities and underlying rationale
for the decisions taken. Typically, the balance between image/aesthetics and function/utility
will determine design acceptance. Other issues are the degree of weight that is afforded to
environmental issues and sustainability. Political and stakeholder values will also have an
influence on the design and choice and are discussed in Chapter 6.
Funding for investment appraisal

A balance between value and development cost should be achieved in order to make a project
viable. This can be carried out by measuring cost and assessing the value or by calculating
Table 3.2 Hierarchy of investment appraisal techniques
Market approach Income approach Cost approach

Example of Comparison methods Repayment methods, e.g. Replacement cost
methods discounted cash flow, method
residual valuation
method, payback
Characteristics Paired comparison on like- These are common Based on
for-like basis investment appraisal depreciated
Relies on historical data, techniques cost of existing
e.g. sales from a similar Income and cost are assumed property
scheme Needs intensive market Assumes a like-for-
Adjustment factors may be research, e.g. current like replacement
necessary prices.
Simple and straightforward May need to simulate market
risks
Suitability and Suitable for simple or less Suitable for most Suitable for service
example complex projects, e.g. investments, e.g. hotels, buildings, e.g. a
small residential scheme commercial estates hospital
the end value and working out a budget to suit. In either case, the value must exceed the
cost to justify the project. The method and source of funding is important in order to assess
cost. There are several tools that may be used to assess this on construction projects. These
are broadly categorised as market approach, income approach and cost approach. Table 3.2
defines their key characteristics.
Appraisal techniques
Commonly used techniques are discussed below using simplified examples.
Payback method
This is a measure for assessing project incomes against project capital cost and possibly run-
ning cost. The payback period is the point at which future incomes equalise the capital costs
expended. In the example below a production profit of £300,000 per year provides enough
payback to cover the capital cost at the end of the fourth year of income. In tabular form, the
cumulative income looks like Table 3.3, which is a simple example of a new building the cost
of which, including fees and fitting out, is £1.2 million. There is a rental income each year.
Table 3.3 Payback method
Investment year Cashflow (income–cost) Cummulative cash flow Comment

0 –1,200,000 –1,200,000.00 Cost only
1 300,000 –900,000.00
2 300,000 –600,000.00
3 300,000 –300,000.00
4 300,000 0 Paid back
5 300,000 +300,000.00 Profit
This method shows how long it takes to pay back (year 4) but fails to indicate, unless incomes
are progressively predicted, what final profit is made. It also does not indicate the declining
value of a sum of money that is paid later. This means that, unless values are discounted, there
is an unrealistic evaluation of the profit received as money in the hand can be invested. This
applies just as much to the use of company reserves as it does to borrowed capital.
Accountancy rate of return

Developers will be interested to know the percentage profit they earn per annum. The
accountancy rate of return (ARR) method calculates the sum of all the income flows (+ve)
and the capital cost outflows (–ve) and calculates any net return that comes to the business.
This is usually expressed on a yearly basis as a percentage. Thus, in the above example profit
is realised in the fifth year.
The net profit would be:
Net profit = £1,500,000 – 1,200,000 = 300,000 over 5 years

Profit per year = £300,000/5 = £60,000
The return is therefore:

ARR = (300,000/1,200,000) × 100% = 25% return on outlay
Again, this method takes no account of the declining value of a sum of money received
in the future or of how many years it takes to make a profit. The 25 per cent return again is
misleading, but is directly comparable with other projects calculated in the same way.
Discount cash flow

The discount cash flow (DCF) method is similar to ARR but operates a discount value equal
to the cost of capital. So, if money can be borrowed on average by the company at 10 per cent,
then the present value (i.e. the value today of money received in the future) is the reciprocal of
compound interest.
Compound interest can be expressed as P(1 – r)n. (where n = number of years invested;
r = rate of interest expressed as a fraction; and P = principal sum invested). Therefore present
value (pv) can be expressed as the inverse of the interest rate, i.e.
1
P(1 - r ) n
Table 3.4 Net present value method for capital cost and five-year income
Investment year Net cashflow (income–cost) Present value (@ 10%)

0 –1,200,000 –1,200,000.0
1 300,000 272,727.3
2 300,000 247,933.9
3 300,000 225,394.4
4 300,000 204,904.0
5 300,000 186,276.4
NPV –£62,763.97
This will be a discounted value taking into account the number of years in the future it is
received. The rate of discount of 10 per cent shown in column five of Table 3.4 reflects the
return available from investing the cash and also includes a premium to allow for the level of
risk of the investment. This rate is set by companies with reference to the cost of borrowing
for them, even if interest rates change. In calculation of present value an undiscounted net
cash flow is used to assess potential gains after all costs have been paid.
When the discounted cash flow and the costs for all years are added up we have what is
called the net present value (NPV) at the end of year 5. Because the income is received in
the future, each year’s cash flow has been adjusted downwards using the formula above or
present value tables available online or in most property valuation textbooks. NPV is sensi-
tive to the discount rate, which reflects the inflation-adjusted interest rate. It is therefore good
practice to simulate the impact of changing interest rates.
Now we can see that the payback over five years at a 10 per cent discount rate is negative
compared with that using the undiscounted cash flow, which therefore reflects the cost of not
receiving the income until future periods. The NPV method is much more robust than the two
previous methods for incomes that are received over an extended period of time. However,
ensuring that the predicted discount rate is correctly reflecting the cost of capital, over the
projected period of five years, can be problematic. If inflation moves in the same direction
as interest rates (the normal situation), then there is no problem. If, as in some economic
scenarios, it moves counter to interest rates, i.e. getting larger as interest rates stay the same,
then this cannot be assumed. It is also possible that the cost of capital may rapidly change,
moving away from the predicted amount. If a range of conditions is likely, then a sensitivity
analysis must be carried out to see how sensitive the return is to an upward change in capital.
Internal rate of return

Internal rate of return (IRR) is the discount rate in the method above that will return a nil
NPV, that is, breakeven. This is often used by investment analysts to compare the discount
rate with the company’s cost of capital. The company will take a view on what return over
and above the cost of capital they require, which, added to the cost of capital, is called the
hurdle rate. So, a cost of capital of 10 percent and an expected profit level of 10 per cent
means a 20 per cent hurdle rate. This will pay a contribution to company overheads of, say,
2 per cent and provide a net contribution to profits of 8 per cent. However, a project with a
greater risk of not receiving the returns will have a higher premium rate. Another risk that
might be reflected at the time of making the decision is interest rate volatility. Both may
cause adjustments to the hurdle rate.
Table 3.5 Example of IRR on the example above, but with six-year income
Investment year Net cashflow (income–cost) Present value (@ 10%)

0 –1,200,000 –1,200,000.0
1 300,000 272,727.3
2 300,000 247,933.9
3 300,000 225,394.4
4 300,000 204,904.0
5 300,000 186,276.4
6 300,000 169,342.2
NPV £ 106,578.21
IRR 12.98%
Taking the example above and allowing another year of income so that we have a
positive result for the NPV, it can be seen in Table 3.5 that the effect of adding another
300,000 income at the 10 per cent rate has addeded only £169,342.2 to make the NPV
positive (i.e. –62,763.97 + 169,342.2 = 106,578.21), because of the substantial discount
in the sixth year.
To make the NPV positive in order to break even in the sixth year, i.e. 0, we raise the discount
rate until that happens. In our example, that will be nearly 13 per cent and this is the internal rate
of return (IRR) for the project. This suggests that the project will make only an additional 3 per
cent contribution towards overheads and profit, which may not be enough for the company to go
ahead until the cost of capital is reduced, project income can be enhanced or capital cost reduced.
The IRR can be misleading for the same reasons as the discounted cash flow method. When
comparing different projects or options it is important to test how sensitive each option is to
changes in any of the factors. If a small change, say, in interest rate, indicates a large change in
the NPV a project becomes more risky, especially if the returns are achieved over the long term.
Case study 3.2 is an example of an options appraisal that has been carried out using
discounted cash flow, which focuses mainly on the direct financial costs and benefits. It
considers several options for a university to see which offers the best discounted cash flow.
Case study 3.2 Option appraisal for university

accommodation
Looking again at the university example in Chapter 2 (Case study 2.1) regarding student
accommodation, the DCF method is initially used for option appraisal. However, other
issues that are relevant to selection are also considered.
The requirement here is the provision of good quality up-to-date accommodation for
400 students. All options have been reviewed against the ‘do nothing’ option as a base
for comparing their suitability. Five options have been considered, five for providing
accommodation on the existing site and one for doing so on a new site, and the costs
of these options are set over 27 years. The existing site has 72 hall spaces and is big
enough to redevelop for all 400 residences, but this would mean knocking down existing
academic services. Options are reviewed, including the cost of reinstating the academic
services elsewhere if required. The options are described below.
Option 1 ‘Do nothing’ – this is the standard to compare against

Option 2 Get rid of all existing halls of residence and then pay leasing costs to use
privately provided residential units. This would emerge as a lease charge for
the university plus the management costs.
Option 3A A split-site service whereby 72 hall spaces are refurbished on an existing site and
328 are new built elsewhere.
Option 3B A split-site service whereby existing halls are demolished and 150 spaces are
rebuilt on existing site and 250 new built elsewhere.
Option 4A A single-site service whereby 72 hall spaces are refurbished and 328 new spaces
are built by demolishing rest of site.
Option 4B A single-site service whereby existing buildings are demolished and 400 spaces
are rebuilt completely on existing site.
Option 4C A new residential site for all bed spaces, with student accommodation on the
existing site converted to academic space.
(continued)
(continued)
All the results in the chart above are given as net present value compared with ‘do
nothing’ and they relate to three different types of procurement. The ‘do nothing’ option
assumes that there will be high ongoing maintenance costs and these must be car-
ried out by the university. In the chart they are reduced to nothing to make other costs
more easily comparable. The NPV values on options 3A and 3B and 4A–C are carried
out over 27 years, including a two-year build period before occupation, a 7.28 per cent
discount rate, which represents real cost to the university, and a positive allowance for
transferred risk in the case of LB/FM and DBFO options.
NPV over 27 years Procurement options

compared with ‘do nothing’
costs £’000
UBR LB/FM DBFO

Option 1 Do nothing 0* This option is actually the
most expensive, except for
conventional funding on the two
new build options
Option 2 Head lease 2962 – –
Option 3A Split-site 827 3537 3337
refurbish and new
Option 3B Split-site 692 3647 3072
new
Option 4A Single-site 1568 4061 4080 The ‘non-own’ options here create
refurbish and new the biggest savings
Option 4B Single-site –622 3322 2686 The all-new DBFO options are more
new expensive than the head lease
Option 4C Single –794 3080 2185
alternative site
*Positive figures mean costs are less than ‘do nothing’.
Key: UBR = conventional loan finance procurement (actually unavailable to university); LB/
FM = private build with facilities management and lease back to the university with a
service charge; DBFO = PFI agreement with private build and facilities management with
building reverting back to the university after capital/service charge has been levied for
25 years.
Analysis of option appraisal

Although conventional loan finance is not available, it is interesting to note that, when all
the costs are taken into account over a 20-year period, this is not actually a cheap option and
the university might as well use a DBFO on option 4A to allow outside private provision of
accommodation for 25 years.
Head lease will give the university a newer facility than the ‘do nothing’ option and
is cheap, but it will not give the university any residual value for an asset, the costs will
continue after 25 years at a high level and the university will also retain quite a lot more
risks and the responsibility for maintaining the properties. The head lease is more expen-
sive than the other ‘non-own’ options.
The private build option 4A with leaseback compares favourably with the DBFO option.
However, with DBFO some opportunity savings may be made if the university is able to
sell off land, which can be developed profitably by the DBFO provider as an alternative
project, e.g. luxury housing. Also the provider might be able to use the student accommoda-
tion for holiday or conference lets, giving dual use during the student holidays on catering,
communal or leisure facilities made available on the site and reducing the DBFO service
charge. These financial analyses should also be subject to a sensitivity analysis on the main
variables as in Table 3.6. These may affect the rankings and Table 3.6 indicates the extent of
the changes tested.
In the sensitivity analysis, the construction costs increasing favoured the head lease option
more as PFI pays back over a long period, but essentially the DBFO and LB/FM options still
remained the cheapest and are the least affected by uncertainty. The DBFO contractor takes
into account the changing interest rate risk.
This type of appraisal provides a strong financial base but other benefits or circumstances
may also influence the final decision to go ahead. The sensitivity analysis is of particular
importance to test the effect of variations in the assumptions made, and on public projects
estimates may be put on non-tangible benefits as suggested in the first example. The opera-
tional and through-life costs are discussed in more detail in Chapter 10, but these will be
important to the development decision, especially if the client is an owner and user of the
building. Discounting already incorporates assumptions for inflation and therefore mainte-
nance and running costs well into the future and feature less strongly in the equation where
there is a large discount rate. In private development projects the net returns are compared
with the company hurdle rates (breakeven plus a suitable margin) to ensure that the risks of
development are adequately covered by the margins expected.
A project with more than normal risk shown by the volatility of a sensitivity analysis is
likely only to be approved in the case of enhanced margins in the appraisal. Lending insti-
tutions will also apply risk assessment when considering borrowing that is secured purely
against the project outcomes. Private development is often more short term in its view of
returns, looking for payback after a short period.
Developer’s budget
A developer’s investment decision for a project is made in the feasibility stage. The basic
costs of a construction project are the land, the design fees, the building costs and the
Table 3.6 Sensitivity analysis for financial factors on option appraisal
Variable Change tested (%)

Construction costs +30
Operational costs +20
Student rental levels +15
Occupancy levels +3
Land values +20
Interest rates +50
fitting-out costs and there are often costs for additional advice. Other things, however, may
influence a project’s costs such as inflation, the interest rates available on borrowed money
and the risk associated with getting a return on investment (this will inflate the rate of inter-
est that is offered for loans). Cash flow is also important and if payments are up-front they
will mean an extended borrowing period. For example, land often has to be bought early,
but if a deposit can secure an option on the land with payment later at an agreed rate this
will be preferable.
Residual method. A developer’s budget sets out the costs and expected income for a pro-
ject and includes the percentage return that a developer would want from the sale or rent of
the building. The value of the land is the residual sum that is the difference between the net
income and costs. A typical developer’s budget is laid out in Table 3.7 for 20 units of mixed
residential units. The site is currently agricultural land located six miles away from a city
centre. The local authority requires under Section 106 of the Town and Country Planning
Act 1990 that new developments must make 20 per cent of the units affordable. The fig-
ures assume cost for building and consultant fees will be borrowed at a variable rate for 18
months. It also assumes that all homes will be sold immediately and that the loan is paid off.
If the building is kept for rent, then borrowing costs continue and rent income builds up
more slowly. Because of the time value of money, both incomes will be discounted to give
net present value; this process is referred to as capitalisation.
Borrowing costs are often judged to be neutral with present value gains. The building
becomes an asset on the balance sheet. The value of the building may increase over and
above the discount value, but this could only be recognised in the accounts for profit if it is
prudently revalued or the building is sold.
Table 3.7 Developer’s budget for office block
Income from 1-bedroom 4 180,000.00 720,000

private 2-bedroom 8 250,000.00 2,000,000
sales 3-bedroom 2 350,000.00 700,000
Subtotal: private sales 3,420,000
Income from 1-bedroom 2 144,000.00 288,000
affordable 2-bedroom 4 200,000.00 800,000
housing Subtotal: affordable housing 1,088,000
Cost of sales Estate agent 51,300
Solicitors/ 68,400
conveyancer
Subtotal: cost of sales 119,700
Income Gross development value (gross income) 4,508,000
summary Net development value (net income) 4,388,300
Development Building cost 20 units (1460 m2) @ £1200/m2 1,752,000
cost Landscaping and @ 8% of building cost 1,401,600
infrastructure
Professional fees 15% of build cost 262,800
Borrowing cost 86,658
Developer’s return 20% of net income 438,830
Summary Total cost including return 3,941,888
Net income 4,388,300
Residual value of land 446,412
External factors in feasibility assessment
Construction projects do not exist in a vacuum. They are influenced by external factors that
directly affect the project conditions, such as the price of materials or the going rate for
labour, or they affect the client’s business and impact upon the scope and specifications of the
project. For example, the need to get to market earlier may reduce project time scales. Clients
are constantly reviewing their investment to increase or reduce their capacity to suit market
demand. If interest rates go up it may well affect the volume and speed of house building that
takes place. If there is a new regulation that makes building more expensive, this may reduce
a developer’s capacity to invest. The government may also increase real estate investment by
providing tax incentives for building in certain areas.
External factors determine the project’s environment and the context within which the
project is conceptualised, developed and implemented. It is important for the project manager
to understand the influence these have on the feasibility, strategy, design implementation and
outcomes of the project and they should be evaluated when assessing options and recom-
mending certain courses of action. External factors in construction projects arise because
projects do not normally exist inside a single business. They are likely to have an external
client and to work with other external organisations in order to deliver the outputs the client
needs; see Figure 3.5.
It is also very likely that a building company will work on more than one project at a time;
for example, an architect is likely to be offered more than one commission at any one time,
and a larger contractor will succeed in winning more than one contract. Thus we can see that
the model in Figure 3.5 should be developed to show this and to demonstrate that more than
one organisation is involved.
In the model in Figure 3.6, the same architect, engineer and main contractor are work-
ing on three of the projects, but the quantity surveyor shares only two. Specialists will
be assigned to projects in accordance with need. The same external environment influ-
ences all four of these projects. The six external influences are often known by the
acronym PESTLE, referring to political, economic, social, technological, legal and ecological
factors.
Organisation
Projects
Figure 3.5 Projects for external clients

Political and
legal factors Economic factors
Specialist Quantity Architect Engineer Main Specialist Quantity

1 surveyor contractor 2 surveyor
2
PROJECT 1
PROJECT 2
PROJECT 3
PROJECT 4
Figure 3.6 Complex relationships
Political factors
Political factors are connected with government policies that might have an influence on the
project. These policies cover all sorts of areas, but a few of them are described below:
• Fiscal policy covers government tax and spending plans that affect the viability of build-
ing work and incentive to build.
• Policies related to training can affect skill levels in the industry in the long term.
That said, many companies are not facing up to their own responsibility to sponsor
training.
• Regeneration policy means that there are plenty of incentives to invigorate and develop
city centres. Many companies have been drawn into dealing with brownfield sites and
decontamination of land.
• Energy policies and subsidies provide shorter payback on renewable energies.
• Landfill tax has encouraged recycling and less waste and aggregates taken to land-
fill sites.
Economic factors
The economy covers inflation and interest rates, which in turn influence economic growth
(GDP), the ability of clients to invest and spend money, the level of house prices and tenders
for business and commercial contracts, the value of stocks and shares, the rate of employ-
ment, exchange rates and the funding that is most economically available. Other things that
might affect the way in which companies invest, or do business, are borrowing limits, which
are directly related to the profits they can make or the bank credit available. The government
either controls interest rates or allows the central bank to set these according to economic
need. Credit facilities affect decisions to invest. Unfavourable economic conditions have
a significant influence on the capital structure of organisations and pricing mechanisms.
Following the 2008 financial crisis and the resulting global recession, ‘suicide bidding’, a
strategic pricing mechanism to keep capacity at a loss, became a new norm.
Social factors
These are related to fashions that can affect market demand and the proportion of money
that is put into housing or other spending. Whether to buy or to rent redistributes the market.
Communities may also put pressure on developers, contractors and designers to meet societal
norms which they feel are acceptable. Environmental concerns show themselves in more
energy-saving designs, using environmentally-sensitive materials and living more simply.
Governments might try to influence social attitudes using fiscal policies and incentives.
Technological factors
Technological factors relate to advances in technology that can affect the methods and
materials used in construction. They may be the prerogative of the client, the designer or
individual specialists in response to new opportunities. These factors allow for innovative
solutions and may or may not be important to the client’s future business. They are likely to
be less influential in the post-design stages of the project. The construction industry has for
many years been reluctant to adopt new technologies and there have therefore been many
calls for the industry to diligently accept the digital revolution to offset the risks of continued
reliance on unproductive and labour-intensive techniques. The industry has to respond to the
technological challenges by investing in training, innovation and raising productivity.
Prefabrication and sustainability are resulting in innovative design and intelligent build-
ings. IT systems that affect the communication capacity of a project and the integration of
individual systems can be important for efficient information flow. Chapter 13 discusses in
detail the benefits of digital technology, including BIM, social networking, mobile technol-
ogy, geographic information systems (GIS) and intelligent buildings.
Legal factors
Interdependence between projects and the impact that building has on the environment and
economy makes it subject to scrutiny in order to ensure that it operates safely and equitably
within the regulatory environment. The examples below highlight the importance of consid-
ering regulatory risks:
• Building regulation changes reinforce concern for fire safety so that building sites are
now limited on storage and use of combustible materials.
• Changes in tax laws are a policy issue but are also legislated. These may affect
profitability.
• The government’s desire to renew school stock and to provide priority funds makes this
sector desirable but vulnerable to governmental changes of mind. This affects all areas
of the public sector.
• Procurement directives, in the EU for example, stipulate a threshold for open competi-
tion in all public procurements across the European Economic Area.
• Health and safety regulations.
• Complying with planning requirements.
Regulations have a major effect on building design, types of work available and the methods
and materials used by contractors. Shortages of skilled labour will also affect project delivery
where there is a restriction on employment of migrant workers.
Ecological factors
Ecological factors determine the overall sustainability of a project and are defined in
Chapter 12. Briefly, these factors address a holistic agenda to use resources appropriately
so as to avoid harming future generations. Sustainable construction covers environmental
factors in a balanced way and therefore is integrated with the economic, social and techno-
logical factors described above. It is recognised that sustainable buildings may have greater
capital cost, though this factor will reduce as products and manufacturing costs reduce with
wider use. Also, fundamental building design changes will become the norm rather than
‘tweakings’ of existing designs. Client and professional attitudes are important and provid-
ing sustainable options and making legal and moral responsibilities clear to the client are
now considered professional ethical behaviour. Better quality of life at home and work is
now also seen as important, and leading companies recognise that fair dealing with employ-
ees includes updating their work environment as well as other conditions of employment to
meet this end; such companies may expect pay back through productivity improvements.
They also recognise life cycle cost reductions in sustainable buildings.
A far-sighted client will still need to balance their business case and briefing is connected
with the existing sustainable values of the client and existing legal requirements such as the
Climate Change Act in the UK that requires a demonstration of environmental improvements
and carbon reduction in use. All new residential and commercial buildings will be required to
lower the energy used to heat them to near zero net energy consumption. Some clients wish
to be industry leaders in meeting targets earlier. Environmental assessment compliance will
also impact on the briefing process, as well as later on.
Risk-based decision making

Eliminating, reducing or protecting from risk at the feasibility stage is closely allied with
the value management process, which seeks to adjust the brief in order to optimise value
for money. There is scope here to produce radical solutions that reduce or eliminate risk
using more holistic solutions that are properly tied into client objectives. Later on, when
the design is firmed up, there is less scope to provide alternatives. A problem-solving rather
than a solution-generating culture is now in place as a result of providing value management
workshops (see Chapter 10).
Figure 3.7 shows the relationship between scope and change, cost of change and the stage
of the project life cycle. However, there is no guarantee that initial assumptions regarding the
scope and use of the building will not change in response to demand. Part of risk management
is to build in flexibility and contingency so that change is possible. Some building projects
are more prone to this than others. Chapter 10 discuss this issue in more detail.
Changes need to take place at the feasibility and strategy stage of the project otherwise
substantial abortive costs are incurred due to the effort that is wasted in redesigning or worse
still in abortive orders or construction work. Value management can also be used to test the
original assumptions made in the brief and early design stages.
Risks assessed in the feasibility stage are less technical and may be mitigated by applying
strategies that reduce them, e.g. choosing a robust project option. The choices are constrained
Potential to
add value
Scope to
change
Cost of
change
Cost of change
Briefing Feasibility and strategy Design and tender Construction Commissioning
Project life cycle
Figure 3.7 The cost of change
by both internal and PESTLE factors, and require balancing several conflicting requirements
in terms of their relative importance and how well they meet expectations. Figure 3.8 illus-
trates a typical risk-based decision-making process.
Risk-based decisions optimise the balance between client value and regulatory require-
ments. The process begins by identifying options and the criteria to gain a clear understanding
Develop project options

Identify and select options and decision criteria
Modelling risk response

Identify and analyse risks for the option. Model risk probability and impact
against decision criteria
Can the risk be managed?
Does it make the project

Terminate/ viable? Yes Red
Kill No Amber Risk register
project Green
Does it optimise client
value?
Does it comply with

regulations?
Avoid Fall-back Transfer/Allocate Accept/Tolerate

Option is cost- Risk is imminent/ Best managed by Risk/reward
ineffective Risk impact others balance
Figure 3.8 Risk-based decision making

of the required input and output for decisions. The options could be, for example, alterna-
tive sites for proposed development, design solutions or various procurement options. For
example, Case study 3.2, earlier in this chapter, appraised the potential return on investment
of various project options for provision of student accommodation, together with some
consideration of risk. A list of options will be evaluated based on objective and subjective
criteria. For example, design options can be compared on the basis of life cycle performance
of the building.
It is useful to prioritise a number of options to be analysed in more detail. It is important
that assessors agree on the probability scale. This standardises the rating to reduce devia-
tions and subjectivity. Most risks are interrelated and may lead to multiple risk situations.
By gauging the risk and impact of each option in relation to the criteria, risk interdependence
can be simulated. For example, a design build procurement may reduce design responsibil-
ity risks for the client but it may also increase the risk that the final design will not meet the
client’s need.
It is also important to consider human motivational factors, such as optimism, risk-aversion
and risk-seeking behaviours, which will influence how risk probability is rated. Open dia-
logue will allow team members to discuss their concerns. Such dialogue will optimally occur
during workshops that adopt consensus approaches, such as the Delphi technique,11 to facili-
tate shared understanding. Experienced professionals and historical data should be consulted
to improve human judgement.
When the decision to proceed is reached the risk response measures are recorded in a suit-
ably structured risk register. In some cases the risk may involve more dangers than allowed
for in the continegency plan and it will be necessary to implement a fall-back plan. Risk that
falls within tolerance can be accepted and managed through reduction, allocation and con-
tinuous monitoring. Risk allocation is particularly important for making sure that residual
risks are the responsibility of those who are best able to manage them. This increases the
probability of keeping the risk low and also those who have the most experience in managing
the risks will price them competitively without a cover contingency. Statutory compliance
with regulatory requirements (e.g. building codes, planning policies and health and safety
regulations) tends to keep the risk low. Chapters 10 deals with the process of risk and value
management in more detail.
Conclusion
Project definition is all about communicating a project brief well, being flexible, carefully
assessing scope and delivering a product that suits purpose but will also maximise value and
be effective. Many projects have failed due to inappropriate design of buildings that have
failed to accommodate client expectations. It is clear that many strategic issues should be
considered in the project definition stage to inform the design so early gaining of advice on
the construction process and specialist design is a recommended practice. A clear definition
of the project minimises dangers of uncontrolled scope creep, which causes frustration due to
projects overrunning cost beyond control.
Financial feasibility is useful for comparing different options, but have the right options
been chosen? Quantitative financial methods are often presented as infallible, but clients are
not warned of the factors that are particularly sensitive to changes in the market, such as
interest rate changes, technological and statutory updates and obsolescence over quite short
periods, which then impact heavily on the feasibility of the project. Taking external factors
into account is vital to the success of the project definition stage. Political, economic, social,
technological, legal and ecological factors can easily change, so it is wise to build in
flexibility and contingency factors.
There is often a lack of communication at the briefing stage in particular because of client
uncertainty, and this needs to be managed in the project definition period. Working collabo-
ratively with the project team and other stakeholders has the capability to improve project
definition and effectively integrate design solutions that are responsive to client value regard-
ing spatial planning and other concerns. User involvement in the briefing process remains
essential and, through continuing stakeholder engagement, a balance needs to be struck to
avoid raising expectations too high. Harnessing the power of digital technology allows an
instant appraisal of the time and cost impact of design options along with updates in the brief-
ing process to address the client’s concerns in order to optimise value and efficiently manage
the life cycle costs.
Clients are sometimes unaware of the need to balance increasing capital costs with sub-
stantially reduced running costs. Indeed, many would connect the latter with the need to
meet sustainability criteria in their built assets to reduce energy use. Responsible clients only
accept capital price rises for sustainable buildings if they can prove the business case and the
payback on such changes. They expect innovative and economic buildings that are also more
sustainable. It is thus important to integrate the economic criteria with environmental and
social credentials. Clients need to be empowered to plan their capital and ongoing budgets
carefully if they are to avoid expensive late changes to the project.
Notes
1 Project Management Institute (PMI) (2013) A Guide to the Project Management Body of Knowledge.
5th edn. Newtown Square, PA, PMI.
2 Sinclair D. (2013) Guide to using the RIBA Plan of Work 2013. London, RIBA Publishing.
3 Barrett P. and Stanley C. (1999) Better Construction Briefing. Oxford, Blackwell.
4 Boyd D. and Chinyio E. (2006) Understanding the Construction Client. Oxford, Blackwell.
5 Pegoraro C. and Paula I. C. (2017) Requirements Processing for Building Design: A Systematic
Review. DOI: 10.1590/0103-6513.212116.
6 Garry C., Hughes W. and Bennett J. (1994) The Successful Management of Design: A Handbook of
Building Design Management. Reading, Centre for Strategic Studies in Construction, University of
Reading.
7 Hellard B. (1997) Total Quality Management in Construction. London, Thomas Telford.
8 Royal Institution of Chartered Surveyors (RICS) (2009). Development Management: A Guidance
Note. London, RICS.
9 Isaack D., O’Leary J. and Daley M. (2010) Property development. 2nd edn. Basingstoke, Palgrave
Macmillan.
Construction and Development (5th edn.). Chichester, Wiley-Blackwell.
11 Delphi techniques allow team members and experts to identify concerns and debate them openly so
that a consensus can be reached.
4 Construction procurement
What? Procurement management is an important aspect of the project manager’s role as they
mobilise the required materials, professional services and contractors needed to undertake a
construction project. This chapter considers outsourcing strategies that create good value for
money. Principles and practices adopted by the public and private procurement around the
world are examined to give an overview that helps to identify effective and ethical appoint-
ment of consultants and contractors. Case studies are used throughout the chapter to provide
clarity and to highlight best practice. The main objectives of the chapter are to:
• contextualise the changing role of construction procurement as a mechanism for bring-

ing to the industry the needed change and innovation
• understand principles and practices for effective procurement
• explore innovations in procurement and options available to promote greater integration
in the delivery of value for money
• understand client value aspirations and how procurement affects management of risk,
change and sustainability
• examine construction contracts to build a culture of mutual trust and interdependence
• develop a coordinated approach that mitigates issues related to off-site pre-fabrication,
logistics and building information modelling (BIM) among the supply chain.
Why? On average, countries spend around 12 per cent of gross domestic product (GDP)
on procurement. At a project level, a large proportion of the budget is spent on direct
or indirect procurement of professional services and work-related materials, machinery
and labour. Integrated procurement directly links core client organisational values and the
day-to-day operations happening in the construction site; it is therefore imperative to inte-
grate project management functions. In essence, procurement involves decisions that have
the potential to increase efficiency and cost-effectiveness and deliver added value to the
surrounding communities and the environment. Procurement is a centre point of project
delivery and key stakeholders will require some assurance that their project will deliver the
expected benefits by looking at how it is procured. The effects of mis-procurement, such
as loss of credibility, trust and stakeholder confidence, are far-reaching and last long after
the project is closed.
How? Procurement is both a strategy and a subsystem that determines the overall success
of any project. It provides resources the project requires, including funding, material and
workforce. Effective procurement planning must provide answers to primary questions such
as who will design the building, who will construct it, who will take responsibility when
design and buildability issues arise, who will appoint the contractor and who will decide what
Construction procurement 81
contract is to be used? It is necessary for the project manager to consider political, economic,
social, technological, legal and environmental (PESTLE) dimensions that have an influence
on procurement and allow adequate time to consult the client for decision and approval.
End of procurement leads to the beginning of a contract that will determine the relation-
ship between the client and consultants, client and contractor and other interested parties.
Different options are explored in this chapter to develop an understanding of suitable con-
tracts that enhance project integration through the whole life cycle of a construction project.
Definition of the context

Traditionally, the contractor is appointed after the design is completed and the construc-
tion stage is about to commence. Whilst this gives the client some assurance of what they
can expect to be delivered by the contractor, the new approach to procurement recognises
that it is a process that should take place over the whole life cycle of a construction pro-
ject from inception through to operations and maintenance. The holistic approach leads to a
greater integration of client value ambitions, effective scheme design and early involvement
of specialist expertise because it gets planned for as soon as the project has received a ‘go-
decision’. On the other hand, the holistic approach gives the project manager an edge in terms
of resources, including professional services, funds for the project, materials and component
parts forming the overall product of construction that are sourced from outside the sponsor-
ing organisation.
Procurement is an inclusive process and has to be thought out and managed for the effi-
cient and effective purchase of all products and services necessary to complete the project.
For example, several options will have to be weighed carefully and a decision made before
specialist expertise is appointed to be part of the project team. The project organisation will
need to weigh the benefits of utilising its own in-house capabilities against outsourcing the
responsibility to an individual or a fully registered specialist consultancy and construction
firm. Likewise, purchase of items for use in the project, such as printers and paper that tend
to consume a significant amount of resources and increase project cost, must be managed to
keep the overall cost under control.
According to Boyd and Chinyio,1 the client procures in order to acquire value by engag-
ing with a diverse group of professionals and business in a contracted relationship. They
describe procurement as a process through which clients build a relationship with the con-
struction industry, about which they may not have a full understanding. Expertise from the
industry offers the client the means to both deliver value from concept (through briefing,
design and construction) and deliver a completed building to satisfy functional and aesthetic
values on time and to agreed cost and quality. Traditionally, this relationship is transactional
and is conducted in a master–servant like manner. Traditional procurement also emphasises
competitive pricing for the construction phase resulting in fragmentation between the design
and actual implementation. Minimum overlap between design and construction contributes
to the projects taking longer to design, tender for and then construct. There is also significant
management cost associated with the risk taken by the client, including frequent changes
made to the design due to buildability problems. Effectively, procurement can be a means
to transfer risk and unknowns to the professionals who are best able- to identify and man-
age them while the client holds only a decision-making role. Clients with a clear view of
what they want the project to deliver can benefit from the competitive nature of industry
by allowing bidders to fight the battle over cost, quality and timescale so that they optimise
value for money.
In large and complex projects involving huge sums of money, procurement management
focuses on the purchase of the materials, professional services and contractors to undertake a
significant volume of work. Procurement is a subsystem in the project system. It is not limited
to purchasing, but typically includes sourcing, contracting, logistics and accounting for the
processes (or sub-products and services) on which we spend resources (inputs). Therefore, it
tends to encompass a wide range of aspects, including social value, sustainability, ethics and
morals, business relationships and value for money (outcomes).
The Project Management Institute’s project management body of knowledge (PMBOK)
recognises that project procurement must include management of upstream and downstream
contracts and control of changes resulting from external influences. Changes may not be
avoidable in a large scale and complex construction project and contracts can be amended
to reflect changes in scope, cost, time, quality and regulatory requirements. In managing
the project procurement process, the project manager plays both an advisory and a special-
ist role and therefore knowledge of regulations governing procurement will be necessary.
Procurement plays a significant role in integrating processes, relationships, information and
cross-organisational teams. In the early stages, procurement can ensure that the team with
adequate specialist skills is appointed to provide professional services, such as architects,
quantity surveyors, engineers, project managers and planners. A carefully planned for pro-
curement process enables the creation of a collaborative working relationship among the key
players and saves time. Also, according to KPMG,2 integrated procurement can save up to
21 per cent of project cost due to an increase in efficiency, better management of risk and
resources and logistics management. The most important role of procurement that is often
overlooked is the impact of the project on the local community and the environment.
Walker and Rowlinson3 assert that procurement is about generating value to customers
(and, in construction, to the client and end-user) and stakeholders. Procurement provides strong
motivation for a commitment to maintain positive relationships among all parties involved in
the project in order to achieve value in four ways:
• First, by producing a tangible construction product that complies with expectations –

to be fit for purpose or even, where possible, to exceed expectations and delight the
customer. This is customarily assessed through the traditional means of delivering the
project on time, within budget and to the satisfaction of the client.
• Second, procurement, if well-managed, delivers a range of intangible results on both
sides of the transaction through improved relationships, leadership, learning, culture and
values, reputation and trust-building.
• Third, procurement is a means for organisations on both the supply and demand sides to
gain competitive advantage. This is increasingly becoming more important as the con-
struction industry strives to embrace more sustainable innovations in order to achieve
near zero-energy targets. Procurement and good relationships promote innovation that
has a two-way effect; on the one hand, information and communication technology
(ICT) can offer new and more effective ways to procure projects; on the other hand,
good relationships encourage more innovation to occur on both sides.
• Fourth, procurement promotes ethical governance through social responsibility, shared
values, transparency, openness and accountability. The Modern Slavery Act 2015 in the
UK challenges project managers to meet their moral obligations in the appointment of
consultants, contractors, subcontractors and suppliers who treat their workforces fairly
and ethically and purchase construction materials that have not been produced using
modern-day slavery practices.
Life cycle procurement analysis
Early involvement of the project manager and their team of specialists has an impact on
value creation and successful project delivery. However, procurement is still considered
a peripheral and supporting service to design and construction. The traditional view of
procurement tends to be that it is transactional and price-based. Chapter 8 describes team
integration so that there is a balance between skills needed and the processes required to
complete the project.
In the CIOB code of practice for project management, the procurement process com-
pletes the assembly of the project team by appointing external team members, starting with
the project manager and then designers, specialist consultants and contractors. Procurement
decisions play a role in terms of team composition, the skills that are needed in the team to
create value for the client, how the team is structured and organised and how communication
is implemented in order to build an effective collaborative environment. Figure 4.1 shows
when consultants and contractors are to be appointed.
Walker and Rowlinson4 argue that the prospect of adding value is highest at the feasibility
stage, and considerations for logistics and planning are likely to bring in significant benefits
to the project because perceptions of the needs driving project feasibility are better under-
stood at this stage. At the feasibility stage, it becomes more effective to combine inputs from
the stakeholders and those of the design team to minimise chances that they will be realised
too late and therefore require expensive alterations and rework. Choosing a procurement
process at this stage can have a significant impact on overall performance before committing
the project to detailed design and tenders.
In the PMI’s PMBOK, project procurement is about selecting, contracting, scheduling and
managing change requests. Procurement draws inputs from the project management plan,
requirement management, risk management, project schedule and programmes, cost man-
agement and stakeholder management. The procurement involves four high-level processes:
planning, procuring, controlling and closing. Procurement planning involves making and
documenting decisions and may involve the following:
• a pre-bid meeting/conference to communicate information equally and fairly to all bidders

• setting evaluation criteria for expert judgement
• cost benchmarking against client budget
• a competition process including advertising in journals, on noticeboards and in print and
virtual media.
Procurement for integration: principles and practices

Procurement of the design and construction work is about reconciling the client’s objec-
tives for the project with the particular characteristics of the procurement system chosen.
Procurement systems are categorised by their ability to deliver good value for money by
integrating processes, information and teams and using strategies such as waste reduction
and addressing of environmental issues. Each of the procurement options has implications
for risk allocation, project organisation and sequence. Many tables are available that match
the attributes of a procurement option to the client’s wishes. Our purpose at this point is
to look at the underlying principles of procurement and how to better integrate design and
construction rather than the detail of a particular system, which may in any case be adapted
for the project.
8. Post -
4–5. Pre- 7.
1. Inception 2–3. 6. Testing completion
construction Completion,
Feasibility and review and use
and handover and
and strategy commissioning handover and
construction operation
operation
FM
FM services Team
FM
PM PS SCM CSC
Occupation co-ordinator
Soft landings
Project Commissioning services Maintenance
Team Estates
Selection of construction and the supply chain management
Client and PM appoint consultants, e.g. feasibility, designers, QS, planners, engineers
Project board and PM appointed
Figure 4.1 Selection of the project team

Key: PM = project manager; PS = professional services contract; SCM = supply chain management, including main
construction contract; CSC = commissioning service contract; FM = facilities management.
An integrated procurement approach can be adopted to unify project systems and subsys-
tems (see Chapter 5) to ensure that all the required inputs, processes and outputs involved
in delivering value for the client are included. This is contingent on the extent to which the
client side builds relationships with the project delivery team to facilitate planning and strat-
egy formation, work co-ordination, shared vision of the project and joint problem solving.
Relationships are discussed further in Chapter 8 when considering the integration of the team
but, for the purpose of procurement, we redefine them under the principles that govern the
various types, including:
• the degree of client involvement, priorities and client objectives

• risk allocation between the client side and the supply side
• the balance between competition and supplier development
• the type of tendering process in use (e.g. single or two-stage, open versus selective,
closed or negotiated)
• whether framework agreements or repeat projects are required
• the degree of integration and collaborative practice required, e.g. partnering
• controlling life cycle costs of the facilities, e.g. energy and maintenance costs.
The main procurement types are matched with the priorities of the client, therefore criteria for
selection may differ depending on which sector is procuring. Decisions made by the private sec-
tor are driven by profit and corporate image because it is less regulated than the public sector.
Private sector clients have the flexibility to select a leaner and more agile procurement system
that quickly responds to changes and provides better returns. A copious amount of regulations,
policies and rules are in place to make public sector procurement transparent, fair and conducted
with integrity. Public sector procurement constantly balances efficiency with auditability of pro-
cedures to satisfy the expectations of political, regulatory and public stakeholders – therefore it
is seen as standardised, inflexible and bureaucratic.
Table 4.1 Client priorities linked with procurement features
Client priorities Example of suitable procurement features

Project time and speed of Overlap design and construction, e.g. management contracting
mobilisation
Single-point responsibility Joint design and build, e.g. design and build, prime contract
or PF2*
Degree of client control over design Independent designer, e.g. traditional
Cost certainty Single responsibility, e.g. design and build (D&B) or PF2
Ability to make late changes Transparent pricing, e.g. new engineering contract (NEC)**
Early involvement of contractor Management fee, e.g. design and construct or construction
management
Reduce confrontation Partner agreements, e.g. use of NEC or prime contract
Facilities contracted out Design, build, finance, operate, e.g. PPP models (PF2, BOT,
BOO)
*Effective from 5 December 2012, PFI was replaced by PF2 following government review of the PFI process. The
new model is an evolutionary change rather than a wholesale replacement. Under PF2, the government takes some
equity stake in the SPV and has removed soft FM services from contracts.
**Version 4 of the New Engineering Contracts was published on 22 June 2017 to replace NEC3, which had been
in use since 2005.
Examples of standardised procurement types or contract forms are shown in Table 4.1.
Tailor-made procurement, though permissible under special circumstances, is less common
because it is difficult to justify working with untested methods.
Choice of procurement system is a major issue in meeting the client’s requirements and it
is important to make sure that they understand the implications of the different approaches.
Case study 4.1 rationalises the choice of design and management approach for a large city
centre mixed-development, broken down into several projects and masterminded by a social
housing developer.
Case study 4.1 Procurement of social value

This case study involves an eight-year mixed-use regeneration project to redevelop a
former university site at the centre of a new city. The site was left vacant after the uni-
versity relocated to a new campus. A two-phase masterplan proposed redevelopment
that included the creation of 645 mixed-tenure residential units, a new commercial
centre providing both office and retail space, and a two-level basement car park. The
first phase delivered 219 new homes, brought some academic and historic buildings
back into use and provided shops, cafés and offices. The second phase delivered 386
new homes, 4900m2 of commercial floor space, new public open spaces and under-
ground parking.
The scheme’s design sought to create a number of areas with distinct characteris-
tics, each built around high quality public open spaces and linking new pedestrian and
cycle routes through and beyond the site. Through partnership and innovation, the old
and new architecture were fused together in the design to set an example of continued
(continued)
(continued)
urban and economic renaissance to the region and beyond. The design blended the
character of the area with the two bordering main roads and railway viaduct. A series
of medium-rise blocks and a 14-storey taller building were proposed to create dwellings
for private rental, social housing, shared ownership and extra care accommodation. Its
city centre location forced a spatial re-planning of buildings and open spaces to form an
attractive environment that would enhance connections with existing key areas of the
city. In approving a regeneration scheme of this magnitude and significance, the Local
Planning Authority (LPA) considered the legal agreements in place and the financial
resources required to provide further improvements in the public realm such as health-
care facilities and affordable housing.
As well as delivering hundreds of new homes across a range of tenures, the project
was also intended to develop a thriving city-centre community. During construction the
contractor forged a positive relationship with the local community by building strong
links with local businesses and inviting residents to a ‘meet the contractor event’, which
allowed residents and business members to view plans and ask any questions about
the development. The scheme was awarded a Royal Town Planning Institute Award for
Planning Excellence in recognition of its promotion of economic growth and provision of
a highly sustainable and accessible location.
One of the UK’s leading property consultancies, local to the area, was appointed to
provide planning advice and project manage delivery of the scheme. The consultants
were engaged on various aspects of the development, including acquisition of the site,
securing planning consent for both phases and creating a major and positive impact on
the city’s changing skyline. The project manager ensured that the client’s key objectives
were met whilst delivering best value. The team, being locally based, was able to call on
local market intelligence to provide multidisciplinary professional advice.
The same architect was engaged in the scheme’s concept design for both phases
to ensure consistency of design and approach. The client then signed a £74,000,000
Joint Contracts Tribunal (JCT) design and build contract with a principal contractor.
The contractor developed relationships with the local community, thereby forging
success through partnerships and collaboration. In order to help build a thriving com-
munity, the contractor also took on local labour from the area through training and
apprenticeship schemes.
A flow chart to help proper selection of procurement systems can be found in the CIOB
CPPMC.5
Risk and value

We have already referred to procurement types in Chapter 2 on strategy. The continuum of
risk and value assessment is carried out at the feasibility stage by considering the whole life
cycle, e.g. development appraisal, design, tender, construction, commissioning and fitting
out and occupancy.. Allocation of risk is a crucial aspect of determining the procurement
system to be used and should match the client’s preferences. Figure 4.2 shows the risks asso-
ciated with various procurement types.
Contractor risk Client risk
Cost plus percentage fee or overhead
Cost plus fixed fee price with target price
Measured term (unit rates x quantity)
Traditional lump sum contract
Design build
BOT or BOOT contract (PPP models)
Prime contract (shared risk)
Figure 4.2 Procurement and the allocation of risk

Source: Adapted from Flanigan and Norman.6
Taken together, Figure 4.2 and Table 4.2 indicate that the client has a wide range of risk
strategies to choose from, but the golden rule is to allocate risk responsibility where it can
be best managed. The bottom line is that clients are looking to deflect risk because of their
experience of having to pick up the ‘tab’ on traditional lump-sum contracts; however, less
involvement may result in fewer opportunities to create value. Another option is to use a
shared risk approach, such as a prime contract that has a built-in pain–gain incentive associ-
ated with a no-blame culture. DBFO contracts often involve an opportunity to negotiate risk
at a very early stage of the development life cycle and the relationship is extended (especially
in the PFI format over a long post-construction occupation phase).
A professional judgement should be made on the tender price. However, the client chooses
how much risk to assume in the form of the degree to which they require the contractors to
guarantee their final price. Changes are inevitable, both in detailed design changes and in
scope, and the risk here needs to be managed.
Mitigating the impact of late changes is the reason why some experienced clients have
chosen to go with construction management or design and manage, bringing contractors
and the whole team together at the value management table early. Clients have more control
over their projects, but take more risk. Design and build has taken most of the risks away
from the client as there is a clear contractor responsibility for the whole design and construc-
tion process, but risk arises from change. In turnkey projects residual building management
risks and capital funding, and sometimes operation of the facility risks, have been handed
over to others. This process has not taken away the value management process as it has all
happened up front around the negotiating table. Prime contracting represents a risk-sharing
approach where there is a particular concern for innovation and developing a value solution.
Table 4.2 Comparative financial risk to client of different procurement types
Type of contract Client financial risk Measures to control

budget
Cost-plus High Day work rates
Difficult to track expenditure and thus control it
except by limiting extent
Measured term Medium-high Measured rates +
Rates control prices, but many rates may not inflation allowance
be covered; work can be limited if budget
exceeded
Traditional lump Medium Contingencies,
sum Quite a wide range of additional rates, e.g. design provisional sums and
changes, unforeseeable events and scope dayworks
changes inevitably push up the ‘lump sum’
Design and build Low if no changes Re-price any scope
Contractor takes on most risks for unforeseen changes on the basis
changes and for aspects of design of known rates
development not to do with scope change
Construction Medium Incentive to share
management (or Specific managed budget and package savings
management procurement; unforeseeable events still
contract) applicable, but more integrated design
Design and manage and construction than lump sum so
opportunities for initial value management;
Construction manager takes no risk, but
may have an incentive contract to share
savings
DBFO or PPP Low Affordable service
Best certainty once figure is agreed; the risk is charged paid yearly
that the negotiated financial close with the by the client, but
preferred bidder may be higher than expected may limit facility in
and client is committed. However, this figure the long term
is regulated for 25 years
New engineering Medium Use of compensation
contract and Better culture for working together to contain to avoid culture of
partnering budget, but no guarantees against poor blame; full access to
contract (PPC planning and unforeseeable events contractor accounts;
2013) culture of continuous
value for money
improvements
This is often associated with long-term strategic partnerships where relationships are built
up, synergy established and the learning process is not started all over again for each project.
However, a client may make different decisions based on the type of project and the degree
of control that is perceived necessary. Clients may have a risk avoidance attitude and this
may be tied up tighter in the type of contract chosen, or opened up as in the case of the NEC
contract and the partnering contract.
Risk behaviour
Risk behaviour is an interesting subject and a lot of research has been done in the area of
health and safety risk, for example driving safety and the area of gambling risk, the latter
perhaps being more akin to the risk management of projects as a whole. Greenwood meas-
ured a difference between the degree of risk we take personally and that taken on behalf of
others, which, in turn, influences decision making in the area of investment, project choice,
the degree of innovation and planning and the response to external risks.7
The context of the risk is very important to the behaviour displayed. Bidding theory iden-
tifying the success of ‘work hungry’ contractors8 indicates the risk of the lowest price being
a loss leader to get into a market or to retain a minimum workload. This, in turn, may lead to
contractor claims to recoup loss. At the other end of the scale, contractors may collude where
there is much demand to share out the work at higher prices. Client risk is increased in both
of these dysfunctional events with regard to time, cost or quality and risk management needs
to be aware of these contexts.
‘Group think’ indicates a greater willingness to ignore risk when reaching group or com-
mittee decisions, especially when the beliefs of an established group converge as a result
of familiarity and the members begin to fail to see the wider picture; the decision to use the
nuclear bomb in the Second World War could have emerged as a ‘group-think’ decision to
the exclusion of other strategies. It might be thought that projects are unlikely to fall into this
category due to the formation of fresh teams, but industry or contract cultures are created that
reinforce contractor claims, project overruns and less than excellent performance, creating
the risk of not meeting project objectives in general by assuming that ‘there is no other way’.
Attitudes towards risk are particularly important when considering when and how to
respond to a risk. Figure 4.3 indicates the influence of attitude on behaviour.
Change management
Change suggests that there should be some flexibility built into a project to take advantage of
rising opportunities to reduce cost or time but also to mitigate the impact of risks, e.g. change
in fire safety regulations leading to change in design and specification. Design and building
procurement can transfer ample design risk to the contractor but tend to be punitive if there
is a later change requested by the client. Change management can be classified as elective
and required change9 The required change comes as the result of an unforeseen event, such
as additional concrete in foundations. Case study 4.2 is an example of managing everyday
change to benefit the project.
Incentives
Control Peer pressure
Sharing Avoidance
Response Risk behaviour Risk attitude
Acceptance Insurance Norms held

Mitigation by others
Figure 4.3 Relationship of risk attitude to risk behaviour

Elective change is a choice and may emerge from the need to do things better. This may
be as a result of a value or risk management exercise or of changing circumstances such as
market forces. In either case, the change should be managed so that its impact is known by
the whole team, including the client, and effective choices made on the basis of full informa-
tion. Lazarus and Clifton10 describe three objectives for change management:
• Avoid the disruption and associated cost escalation that arise in the absence of the man-
agement of change.
• Give clients both control and choice about how their money is spent.
• Avoid clients being committed to the consequences of change without their prior knowl-
edge and approval.
The disruption caused by change is greater if it affects information that has already been
agreed upon (fixed) because resources may already have been expended. Design develop-
ment is excluded from this. It may also disrupt the flow of work, affecting productivity and
confidence in the decision-making process. On the other hand, an open culture is prepared to
work on the causes of ‘post fixity’ change and limit its disruption by not apportioning blame.
Formal approval through gateways is important, as is reviewing the integrity of what is being
approved to limit the disruptive element of change. A value and risk management system
both contributes to reducing the chance of disruptive change and promotes timely elective
change. Another reason for an escalation is a poor match of the contract and procurement
process to the client’s needs. For example, an IT client will need the flexibility to adjust
capacity and processes to match rapidly changing market conditions. Management of design
changes is further discussed in Chapter 6. If the contract is fixed into a single stage design
and build contract it will be very expensive to change after the original contract has been
agreed, as they have committed to a detailed design right from the start – any minor or major
changes will be considered disruptive and expensive. If communication with the client is
poor the brief may be misunderstood, leading to the possibility that major changes will need
to be made late on in the project. Lack of co-ordination can also cause poor design interfaces
and unworkable tolerances that the client has no control over, circumstances that have to be
resolved and may cause a delay and affect the budget.
It could be argued that required change at a later stage is inevitable and acknowledgement
of this risk requires a change management system to be put in place that meets the principles
outlined above. Case study 4.2 indicates how this system might work within these principles.
Case study 4.2 Client phase change

In the development of a postgraduate education centre, a procurement system was
set up that required the individual approval of the client for each of the packages as
they were let. A new engineering contract (NEC) was used that obligated both sides
to advise of compensation events (changes with time and cost implications) via an
early warning system as soon as they were perceived as a problem. The client had an
completely fixed budget on the basis of an agreed mortgage and any additional costs
had to be offset by a saving so that the project remained within the same budget limit.
A contract period was agreed with a single handover.
In the event, the client recognised the necessity to occupy part of the floor area at
an early stage to decant another department that had become ‘homeless’ due to late
completion of another project. It was agreed with the contractor under an early warning
of compensation event to accelerate completion of the top floor, the lift and one set of
stairs so that occupation could take place two months earlier than planned. In order
to compensate for acceleration costs and protected access to the floor, a shell and
core finish was agreed on part of the ground floor to be fitted out under the terms of a
separate contract by the eventual tenant of that area. The NEC system also required
a fast turnaround for costing and reprogramming the change prior to approval of the
change. The contractor reprogrammed to show a phased handover without affecting the
final handover date. Design changes were also necessary, but where these were not
a change in scope they became the responsibility of the contractor. One such change
involved the resizing of masonry to suit the lift door size. This was disruptive but miti-
gated by agreed changes to the lift design.
These types of change cannot be envisaged, but flexible systems and contractual
procedures had been risk-managed to meet the stringent restriction of a totally-fixed
budget and to deal with any contingencies and design changes.
Pre-fixed change opens up the relationship with the client and allows the client choice and
cost control over the design process. Alternatives may be offered with a rationale for choice,
so that savings can be offered by the contractor and possible pain–gain incentive schemes.
Alternatively, the client will be invited into the value management process in order to gain
optimisation of the functionality of the building. Agreed risk sharing to suit the abilities of
each party to manage risk will be less costly than transferring unknown risk, which a contrac-
tor prices at a comfortable rate to cover or insure the risk. Elective change, as an outcome,
is controlled and fully evaluated before implementation. Value management works best for
elective change where there is an open culture and a capacity to bring in a contractor or con-
struction manager early to give a fuller perspective. In repeat contracts or strategic partnering
arrangements, this is a natural move. The open integrated culture will be discussed more
widely in Chapters 7 and 8.
Planning and managing integrated procurement

In the late 1970s and early 1980s it was revealed that traditional projects were taking a
long time to plan, design and construct – and that contractors made huge profits from vari-
ations when designs were changed. The public sector funding approach was short term and
allowed only for project designs to address basic requirements to suit the limited budget.
New buildings rapidly became dilapidated as a result ‘of lack’ of proper maintenance. The
need for competitive procurement in the 1970s and major infrastructure renewal in the
early 1990s made it unsustainable for governments to fund all projects and many countries
considered ways in which to increase collaboration with the private sector through longer-
term relationships, such as design and build frameworks and public–private partnerships
(PPP). In this section we briefly examine innovations in procurement that have furthered
project integration.
Innovation and waste in procurement
The construction industry is known to silo different types of activity as a result of its lack
of interdisciplinary communication. Traditionally, the architect creates the design and does
not think about construction methodology; meanwhile, the contractor is not prepared to
assume responsibility for assessing the buildability of design solutions or is not appointed
early enough to do so. Supply chains do not share in financial or other incentives that emerge
from such thinking but do take on risk and liability for alternative innovation. This process
produces a blame culture and a wasteful passing on of risk down the supply chain or back to
the designers. When things go wrong, delays or abortive work (waste) has already occurred
before the system corrects it.
Traditional procurement exhibits a tripartite arrangement involving the client, designers
and constructor, with limited integration. The client finances all stages of the project by sepa-
rating the budget for the construction phase from that of the design phase. The advantage to
the client is that they commit the constrained resources in phases while maintaining ultimate
control over each value-adding process. The client repeats procurement by appointing a dif-
ferent team at each phase, paid from a specific budgetary allocation, thereby extending the
duration of the project and, most likely, increasing costs.
In the early 1990s it was possible to transfer roles and functions to the contractors through
design and build or management contracting, thereby providing an assurance of better project
integration and early involvement of specialist contractors. Such benefits have resulted in a
steady reduction in use of traditional procurement in favour of design and build. In 1984 only
5 per cent of construction projects were procured on a design and build basis. By 1991 this
had risen to just under 15 per cent and by 2015 39 per cent. The fact that clients and consult-
ants are most likely to use the design and build procurement route indicates the potential for
the industry to develop integrated cost and value models that best reflect whole-life aspects
of construction projects. Strategic procurement decisions consider the suitability of construc-
tion methods, specific project characteristics, benefits to clients and the potential to maximize
value added.
Non-traditional forms of procurement and collaborative working can help to integrate
the objectives of client, consultant, contractor and supply chain by helping all parties
to work together to achieve better performance in project completion, value for money,
quality satisfaction and safe and sustainable construction. Some forms of procurement,
such as design and build, allow overlap of construction and detailed design, which may
save time and, if properly planned, money. PPP models and design and build procurement
help to integrate risk management by putting risk primarily in the hands of two parties.
Construction management allows early contractor involvement, which improves buildabil-
ity. Client risk is far greater than design and build risk but there is an incentive for better
quality and value improvements. The project manager takes control of change resulting
from design changes and value engineering processes, therefore offering more flexibility
in all systems.
Procurement helps to determine value streams in construction as sequences vary, as shown
in Figure 4.4. Three options are shown to indicate the progressive moving away from the silo
effects of traditional procurement, which fragments the parties, towards integrated procure-
ment making lean construction easier as joint solutions can be applied.
Latham11 propounds the use of partnering and more collaborative contracts (e.g. NEC) to
avoid apportioning blame and to concentrate on early warning and problem solving. For exam-
ple, clients may enter into a framework agreement with a design consultant or a construction
(a)
O
p
Briefing Concept Detailed Commission e
Tendering Construction r
process design design and handover
a
t
Traditional: outsourced to different parties, maintain most risk yourself e
(b)
O
p
Tendering Construction
process design design and handover r
a
t
e
PFI or prime contract: outsourced to single party
(c)
O
p
Tendering Construction r
process design design and handover
a
t
e
Design and build: outsourced to one party, maintain some risk yourself
Figure 4.4 Procurement sequencing showing risk distribution in procurement types
framework agreement with a contractor on several projects. Frameworks are a variation to part-
nering options, which increase project integration and promote long-terms relations. A framework
reduces procurement duration but may not guarantee a successful contract as the contractor’s
performance will be reviewed.
Public–private partnership models

A public–private partnership (PPP) can take many forms, but essentially it is a means of
gaining private sector investment in public projects to reduce the public borrowing require-
ment. It also allows the public sector to transfer more risk to the private sector in terms
of creating and looking after or even funding public facilities so that they can concen-
trate on their core business, such as health care, transportation policy or managing justice.
PPP puts into practice core principles for integrated project management, for example
allowing early involvement of contractors, the committed use of risk and value manage-
ment, integrated design and construction, life cycle costing and collaborative relationships.
It is a flexible model and comes in several forms according to client need and might be
expanded further.
The various PPP models and conventionally funded projects are illustrated in Figure 4.5
to show the associated risk allocation mechanisms.
PPP is a partnership that leverages some private funding, and the strengths of private
entrepreneurship and management, for the maximum provision of public services in a
climate of scarce public resources. The co-operation between public authorities and the busi-
ness enterprise gives some assurance that funding, construction, renovation, management or
maintenance of an infrastructure or the provision of a service will be more efficient.
The increased appetite for private financing options is reinforced by the fact that it is an
effective mechanism to transfer risks, such as those related to buildability of the design, inef-
ficient management of the construction process leading to delays or construction of a building
that is too expensive to maintain, has a poor energy rating or even fails to meet the agreed
functionalities. The public sector is more interested in providing services and does not want to
worry about the buildings housing them, e.g. hospital wards, theatres and consultation rooms.
In a school, teachers want to focus on teaching and children’s wellbeing and thus passing
responsibility for the buildings and play areas to an expert contractor. Organisation of the
PPP consortia, also known as the special purpose vehicle (SPV), comes as a full package with
financiers, design partners, a lead contractor and a provider of facilities management services.
Private finance initiatives

The private finance initiative (PFI) is recognised as one of the most successful models
adopted by governments; it has sufficient muscle power to pay for its commitments without
pushing the burden directly on to the public through user tariffs. It was introduced in the UK
in 1992 to reduce public borrowing requirements. Similar to other models, the use of private
funding gives the private sector an incentive to be innovative and efficienct, thereby reduc-
ing the risk of time and budget overruns being funded with taxpayers’ money. One of the
flagships of PFI was the promise that it delivers value for money (VFM). In this long-term
partnership, the private sector brings in risk management skills, design and construction
innovations, which speed up the construction process thereby reducing chances that the pro-
ject will be completed late and over budget. The integration of design, construction and
Private projects. Fully-funded and owned

Private Development by the private sector client.
BOOT – build–own–operate–transfer
PPP projects. Funded by the
BOO – build–own–operate private sector SPV. Partial
ownership by private sector but
BOT – build–operate–transfer responsibilities are shared to
give client some control
PFI – e.g. design–build–finance–operate
Design and build

Conventional capital projects.
Fully funded by the public client. Management contract
Design and construction
contracted out to private sector. Traditional – design–bid–build
Figure 4.5 PPP versus conventional capital project procurement options

facilities management services means the contractor will have a better understanding of the
building and how to operate it than does the public sector.
As global evidence supporting the benefits resulting from PFI became available, so more
UK government departments adopted it. By July 2011 more than 900 PFI contracts had
been signed and £20 billion worth of private capital had been levered into public infra-
structural projects such as schools, roads, bridges and prisons. This situation looks set to
continue. Grimsey and Lewis12 list 28 other countries that use PFI, including advanced
economies, such as Canada, Australia, Italy, France, Germany, Italy, Hong Kong, Spain
and the USA, and emerging countries, such as Argentina, Poland, South Africa, India, the
Philippines and Romania.
Other PPP models

The UK was not the first country to use PPP but, from the early 2000s onwards, it sig-
nificantly influenced other countries to consider this approach. As a result of developing
their own PPP strategies, experts in the UK were invited to share lessons they had learned
from PFI and were thus instrumental in encouraging governments to develop the necessary
political, economic and social context to inspire confidence in the private sector in terms of
investment. Akintoye and Kumaraswami13 provide a summary of state of the art PPP devel-
opments in 20 countries. Here are a few examples:
• Taiwan has adopted different PPP models for central and local government. These
include build–operate–transfer (BOT) and –build–own–operate (BOO). The govern-
ment’s finance ministry offers PPP contracts to allow private investors to procure funding
from financial institutions that refuse to lend money if they are unsecured.
• In the Philippines, PPP contributes around 5 per cent of GDP. The projects are procured
as BOT projects, which are priced well below current tariffs for water and sewerage
projects. The country has a dedicated PPP centre that co-ordinates and monitors all
PPP projects. By the end of 2017 there were 16 confirmed projects at different post-
contract stages.
• The USA offers project-based concessions but the market is fragmented and no fed-
eral rules exist. Build–own–operate–transfer) is a form of PPP that provides a turnkey
facility for infrastructure such as toll bridges and roads. It is often connected with the
operation of a concession to collect tolls or fees for an agreed period in order to recoup
cost in return for private capital. Profit for this service needs to be factored in and the
infrastructure is eventually transferred back to the public authority.
Project development and procurement

Public–private partnerships have been particularly successful in large and complex infra-
structural projects around the world and value for money is achieved via competitive bidding.
The World Bank, in relation to developing countries, offers financial support for PPP as a
preferred alternative to loaning money for development. It is particularly interested in ensur-
ing fair evaluation criteria, such as the cost and magnitude of the private finance offered, the
performance and specifications offered and their benefits relevant to the user and the provider
to ensure VFM for the target government and users. The World Bank requires that the recipi-
ent country complies with its rules14 on international competitive bidding. The OECD15 has
also produced guidance on the use of PFI in international development and demonstrates
that over 60 countries have used this method. The EU procurement directives16 allow pro-
curing authorities to negotiate design solutions with prequalified bidders during the design
competition stage of the competitive dialogue process. Competitive dialogue is a transparent,
negotiated procedure used in complex projects when a performance specification needs to
gain client agreement and achieve best value. Figure 4.6 is a simplified representation of the
competitive dialogue process.
Competitive dialogue, as shown in Figure 4.6, represents one of the most complex pro-
cesses in the procurement of PPP projects. Before procurement commences, the procuring
authority will proceed through several iterative stages to justify that PPP is the right procure-
ment option and develop performance specifications.
Project scope management

Henjewele et al.17 investigated potential causes of scope change during the three key
stages of a PPP project. The first stage is a pre-procurement or project development stage,
which mainly develops client requirements and establishes benchmark variables, such
as cost, quality, risk and timescale, to determine the overall VFM to be achieved. The
second stage is the procurement stage, at which qualified contractors compete to develop
scheme solutions that meet client needs and best address the specified requirements. The
final stage is the operating stage whereby the winning bidder completes the design and
construction stages and also operates the facilities for 20–50 years. The investigation
concluded that changes were inevitable throughout the project’s life but the public sector
would be better shielded from additional cost had it correctly scoped the project at the
early stages.
Developing project requirements involves multiple stakeholders and considerable
expertise. It is standard practice to engage specialist advisors early on and to engage the
general public so they have a say on what is developed. Throughout the world, Examples
abound of projects encountering problems and being delayed as a result of public
dissatisfaction.
Preparation of Opening competitive

ITPD documents dialogue Close of design
3 bidders selected for dialogue
Competitive dialogue stage

Prequalification stage
Interim submission Submission of

Preparation stage
Closing stage
planning
Selection of 2
solutions Design
competition Funding
Scheme and further competition
development dialogue
with
Draft bids and 2 bidders Financial close
Invitation to participate
conclude dialogue
in dialogue (ITPD)
Final bids
Figure 4.6 Key stages of a typical competitive dialogue process

PPP operational challenges
The widespread use of PPPs has created significant public interest, particularly with regard
to the involvement of those people who are meant to be serviced by the projects. There are
many cases from different countries that challenge the notion that PPP represents public
good. Rwelamila et al.18 concluded that most of the concerns raised by the public could
be dealt with by deploying effective stakeholder management at the various project stages.
Chapter 2 discussed managing stakeholders. In practice, the project manager will identify
all possible stakeholders at the earliest opportunity and will involve the project team in pri-
oritising those who can significantly affect the project. Some of these will be invited to a
stakeholders’ workshop to ascertain their expectations and ways in which to address them.
The stakeholders’ management plan and the communication plan will then detail how con-
cerns will be addressed, interests monitored and feedback on agreed actions communicated
back to stakeholders.
PPP contracts are long term and involve complex negotiations, such as sharing financial
gains and refinancing, and may also experience unfavourable demand fluctuation for the
service. A contract period of 20 years is likely to see the private sector wanting to change
its modus operandi or the client withdrawing from the contract due to external and inter-
nal pressures. By 2017 in the UK, 20 PFI contracts were terminated for different reasons
and 54 others were in the process of buyout. These projects were already operating at the
time of termination. Therefore the decision for PPP should not be rushed or too focused
on short-term gains. It is important to consider, for example, the effect of future changes in
government funding, changes of demand due to competing technologies or user behaviours
and policy changes affecting service delivery. The Greater Manchester waste management
contract, discussed in Case study 4.3, illustrates the impact of changes in policy and the busi-
ness environment on PPP.
Case study 4.3 Waste management contract

The 25-year PFI contract for Greater Manchester waste disposal was agreed in 2009.
The overall scope of the project was justified by the need to reduce landfill waste
in response to EU directives and to reduce escalating landfill taxes and penalties.
Immediately following signing of the contract, the project experienced a number of eco-
nomic and technological challenges that ultimately delayed its completion by nearly
two years. Despite the willingness of both parties to exit the contract, the settlement
nonetheless took several years. The negotiated termination considered the contractor’s
inability to provide the services profitably as a result of a fall in the volume of waste –
reality did not reflect the forecast – high repair costs for the rusting treatment plant tanks
and the client’s need to save costs following a budget squeeze. Both parties were in
agreement that such repairs had affected the contractor’s efficiency and that the fall in
market rates for waste disposal made the project poor value for money.
This case study demonstrates the challenges inherent in long-term partnership in pro-
jects that are vulnerable to changing policy, user behaviour and fast-changing technology.
Emerging issues have highlighted the importance of shared responsibility, contractual
flexibility and collaborative partnership. Case study 4.4 describes procurement in which
insufficient emphasis was placed on design.
Case study 4.4 Design quality in schools

In 2011 there were 87 PPP projects in Scotland, 38 of which related to the operation of
over 200 schools. In 2016 17 PFI schools were closed for several weeks when it was
realised that, in an attempt to reduce costs, the contractor had not provided adequate
fire safety protection, which subsequently led to the collapse of walls. This situation
resulted in serious disruptions for more than 8000 school children and their families.
The reputation of the contractor was seriously damaged and they incurred £5 million of
unpaid unitary charges and faced claims for compensation from the client. The client,
meanwhile, had to explain to an angry public why they had failed to manage the work
of the contractor.
This case study highlights the importance of nurturing trust and sharing responsibility for
quality management. PPP clients should not rely on performance-based contracts that pass
responsibilities to the contractor while granting the client compensation in cases where build-
ings become unavailable due to faults. Here, losses such as disruption to schools and parents
were beyond what can reasonably be compensated by the contractor. Such compensation can
only cover direct costs to restore services, which will be deducted from the agreed monthly uni-
tary payment or the cost of replacement facilities. Clients may also be tempted to avoid paying
independent professionals to manage projects, but this will allow design flaws to go undetected,
leading to poor workmanship and defects, lack of communication and unresolved issues.
Long-term projects will be exposed to changing PESTLE issues (see Chapter 3), there-
fore contracts should provide for reasonable flexibility to accommodate changes. The 2009
World Bank annual report on PPPs19 showed that the economic downturn of 2008 caused
a significant shock to PPP projects. The number of projects cancelled before reaching the
procurement stage and prematurely terminated contracts rose significantly. In Australia, for
example, the financial crisis has tightened financial regulations, thereby making it more dif-
ficult for new entrants in the PPP market to access finance amid the high cost of tendering,
which inadvertently affects competition and optimality of VFM. A co-ordinated effort may
be needed to ensure that the number of PPP projects procured at any one time is carefully
managed to reflect the social and economic capabilities of the country in question and the
affordability of its tariffs.
Appointing consultants and contractors

Consultants are appointed by the client or the project manager. Traditionally, construction
consultants are selected on a quality basis for a given fee and contractors are selected on a
price basis in relation to a detailed and prescriptive project specification and drawings or
pricing document. The trend towards VFM means that both could be considered on a quality
and price matrix. The quality issues may be selected by the client, but there is a responsibility
on the part of the client to conduct a selection process that is clear, consistent and complete.
This ensures good competition, provides the basis for a reliable selection process and builds
trust with the service providers. The award of a project to a consultant or contractor needs to
be transparent and fair and, as such, standard rules of appointment and tender are available
for public and private tenders. The rules allow for a choice of procurement but lay down cer-
tain basics. In the EU, compulsory purchasing rules have been standardised for public works
projects in the context of breaking down trading barriers and creating a level playing field.
Private clients will benefit from using standard procedures as these will attract competition,
but may also make known bespoke rules, which fit their situation.
EU purchasing rules
The EU purchasing rules identify open, restrictive (selective), negotiated or competitive dia-
logue tenders as three possible approaches to the appointment of contracting or consultancy
services.20. All public tenders over a certain threshold size need to be advertised in the Official
Journal of the European Union (OJEU) and are listed on the online Tenders Electronic Daily
(TED) service to ensure maximum exposure. The open tender is not recommended in con-
struction because of the extensive work involved in preparing tenders and evaluating them.
The restricted method thus provides outline information about the project and invites expres-
sions of interest. This creates the facility for pre-qualification of the tenders. The restricted or
negotiated tender method can then be operated with a shorter list and tenders invited. Good
practice requires that the lists are restricted to no less than three and up to no more than six.
Prices are made on lowest or most economically advantageous tender (MEAT).
In the case of consultants, the CIOB recommends no more than two consultants on the
shortlist, as these come under Part B of the regulations with less jurisdiction.21 However, in
any one situation a justification may be given for expanding this list. In negotiated tender, the
intention is to carry out a second stage that develops the project VFM. This provides the best
of competitive and negotiated systems, by ensuring more involvement of the contractor in the
development of the project definition.
Private appointment
Consultants are classed as service providers, and selection may be entirely competitive (fee
bidding), or are appointed according to the standard industry codes (e.g. RIBA, NEC, RICS or
ACE). However, it would be unusual not to appoint key consultants based on quality factors
such as their reputation and track record. This brings in an assessment of their experience and
ability regarding the specifics of the project. Other selection techniques may include design
competitions, viewing of previous work or proposals presented during an interview with the
team expected to provide the expert service. These provide a better forum to assess expertise,
compatibility with client objectives and suitability of consultant experience. Project manag-
ers, managing contractors and possibly main contractors also fall within this category.
Clients have to develop their strategy in appointing consultants by deciding:
• Do they want one appointment who contracts with the other consultants and co-ordinates
feedback through a project manager, or do they contract with a circle of consultants who
will provide them with direct advice that they can then manage?
• At what level do they delegate authority for decision making?
• Is the appointment for the whole project life cycle, ongoing phases or on a call-off basis?
• What scope of duties is required of each consultant and do all the consultant briefs cover
all areas without overlapping duties?
• Do they pay consultants on a time basis, lump sum or ad valorem, which means accord-
ing to the value of the project on a percentage basis (clients are now asking whether this
latter method in simple form does in fact motivate VFM)?
• What level of professional indemnity or collateral is required? This relates to the level of
risk that is carried in the case of mismanagement of the project and poor advice.
The procurement strategy is influenced by these decisions. Other techniques such as those for
partnering, dealing with conflict and integration overlay the procurement method.
Selection process
We have already spoken of the need for clarity, consistency and completeness in the selection
procedure and this means that the project brief and scope must be unambiguous and, where
there are queries, that a process of providing answers available to all parties simultaneously is
provided for by having regular mailings or a mid-tender briefing session, to deal with queries
and emerging issues. Best practice requires that a quality threshold is established, especially
where a large number of bidders are likely to be interested. This provides clear criteria for
a select tender list and for shortlisting. According to context (public or private) this may be
pre or post interest qualification. Quality thresholds may include client values such as a wish
to see certain environmentally-friendly project policies, the existence of a third-party quality
assurance scheme, technical suitability, resource availability, financial stability, whole-life
costing and performance in partnering. It is necessary to be client-organisation specific in
order to reflect client values and past experience.
The price, of course, is important and provides an awarding mechanism once a minimum
quality threshold has been achieved. It is obvious that where the quality threshold is judged
only after appointment on the basis of price, the appointment is subject to risk of greater con-
flict as it depends upon contractual interpretation and possibly expensive litigation. In order to
choose between price and quality, it is important to determine the weighting between the two.
The balance of the whole life cost (WLC) factor against capital cost has already been
discussed, but is much more dependent on what type of client is going to use the build-
ing. Another factor in selection is the cost of tendering, which is often associated with the
number of tenders and the complexity of the tender information asked for. If this includes
substantial architectural design elements, such as in design and build, then the cost goes up
and contractors will choose to bid more strategically in order to boost their chance of win-
ning and recouping more of their tender overheads. Clients, on the other hand, may induce
competitiveness as well as design control by appointing a concept designer who novates22 to
a design and build contractor at the scheme/detail design stage. More care in the selection
stage is needed to match the design and build contractor and the designer.
Award of contracts
The award of a project on price and quality involves choosing the best value contractor or
consultant and needs to follow fair and tangible final selection criteria. One way of doing this
is to use a balanced scorecard, comparing contractors by providing a weighted score against
each of the criteria for the quality scores. The weights must add up to 100. These criteria relate
directly to the tendered information and interview processes and are scored on a percentage
and multiplied by the weighting of the criteria. In Table 4.3, if functionality was scored 65 and
weighted as 50 per cent amongst three other criteria at 25, 12.5 and 12.5 per cent, respectively,
Table 4.3 Illustrative example of a balanced scorecard
Quality weighting: 60% Organisation A Organisation B Organisation C

Price weighting: 40%
Quality threshold: 55%
Quality criteria Criteria weight QT reached Score Weighted QT reached Score Weighted QT reached Score Weighted
(%) score score score
Quality scores
Functionality 50 yes 65 33 yes 70 35 Yes 90 45
Programme 25 yes 45 11 yes 50 13 Yes 60 15
Risk management 12.5 yes 45 6 yes 30 4 Yes 60 8
Environment 12.5 yes 50 6 yes 85 11 Yes 65 8
Quality totals 100 56 63 76
Price scores
Tender price £20,000,000 £27,000,000 £22,000,000
Price score 80 30 60
(av. £23 million = 50
Overall weighted score
Quality weighting × quality 60% × 56 = 33.6 60% × 63 = 37.8 60% × 76 = 45.6
score
Price weighting × price score 40% × 80 = 32.0 40% × 30 = 12.0 40% × 60 = 24.0
Overall score 65.6 49.8 69.6
Order of tenders 2 3 1
23
Source: Based on Procurement Guidance 3.
then it would receive a score of 65 × 50 per cent = 33. The other three critieria would then
score as the table shows to give an overall quality score of 56 out of 100 for Organisation A,
63 for organisation B and 76 for organisation C.
Table 4.3 provides comparative data that combines the quality and price ratings. Much
depends on how you rate the criteria, quality and price to provide a weighted score for the
comparative prices. This should be standardised for specific types of project and client values,
according to the tightness of the budget. The more criteria are used, the more likelihood there is
that no single criteria will make much difference to the quality scores. It is therefore important
to check the calculated outcomes using other methods too, such as a face-to-face interview,
and to ascertain the validity of any risks that you have specifically asked those tendering to
price, which are not to be expected. These will give further clues to the validity of a tender
with experience. You may also differentiate between essentials and desirables in the scoring.
Another way of dealing with dual criteria is to use the two envelope system, which means
that quality data is evaluated prior to price data in order to assign additional weight to those
contractors who score highly on quality before the price affords a bias to those with a good
track record. This illustrates the importance of changing cultural norms to bring about VFM
over the life cycle of the project. A public body will have to work harder to demonstrate
objectively that VFM has been achieved where the cheaper short-term solution was not VFM.
Notification and conditions of engagement

Most consultants expect to be appointed on standard terms and conditions, such as RICS,
and would price differently according to the risk involved in accepting non-standard con-
ditions. The basic conditions should refer to the scope of the work and the responsibilities
of the consultant. It is good practice for separate consultants to be aware of each other’s
conditions and for there to be consistency of style between them in order to ensure that
the team of consultants can work together.24 Post-appointment meetings need to negoti-
ate the practical outworking of conditions and need to check the professional indemnity
insurance (PII) and/or all risks insurance, bonds, warranties and other formalities, which
are part of the risk allocation procedure. Further checklists and detailed information about
appointment are available (see the CIOB code, for example).
In some cases, private clients will only be interested in selective lists based on recommenda-
tion, or may wish to further partnering arrangements that share work between a limited number
of framework consultants or contractors. Partnering should be clearly delineated from pre-
qualification, which provides opportunities for pre-qualification for each tender, whilst strategic
partnering pre-qualifies for a period or series of contracts, to build up collaborative working.
Product and services liability

The liability of service providers such as designers and contractors lasts for different periods
in different EU States ranging from contractual obligation only to 15 years (Spain). Ten
years is quite common, though not in the UK. The common denominator for most countries
is a five-year period of liability, which the European Commission cites as covering 75–80
per cent of the liabilities, whereas 90 per cent would emerge in a 10-year period. There
is no agreement on EU-wide liability as yet or on its necessity. Insurance rates may be
prohibitive for underwriting particularly long liability periods. Damages are the most com-
mon outcomes of product and services liability, but there are cases under the Construction
Products Directive that are open to criminal prosecution. In the International Federation
of Consulting Engineers (FIDIC) contract there is a total cap on product liability, which is
agreed in the appendices that default to contract price. Only some of these are relevant to
health and safety. Insurance is usually in the form of all risks or PII.
Standard construction contracts

Construction contracts formalise the relations between the client and the third-party consult-
ants and contractors appointed to carry out the design or construction work. Contracts can be
bespoke or standard. Bespoke or non-standard contracts are designed by the client, with help
from a legal specialist, to meet specific needs. They are costly and time-consuming to draft
and create a large number of legal uncertainties because they are untested. They are only rec-
ommended where amending a standard contract will not be efficient. Standard contracts have
a robust structure, with clear and fair terms on the rights and duties of the parties.
The client (sometimes referred to as the employer or owner) is assured by the terms
(express or implied) of the contracts of a safe and functional design and construction work
completed in accordance with design to satisfy their requirements. Terms of agreement in the
contract have an important role to play in the integration of the team and members’ working
relationships. Allocation and compensation of risk will inevitably determine whether the par-
ties work in an environment of collaboration or adversary.
Standard forms of contract

Standard contracts are prototypes prepared by professional associations to suit the law and
practices of the country of use and can be customised if needed. Standard contracts also have
a tested mechanism to allocate foreseeable and unforeseen risk, e.g. the new engineering con-
tracts (NEC) allow the client and the contractor to negotiate the sharing of responsibility for
risk. Using a standard contract can significantly reduce formidable transaction costs (those
associated with preparing for negotiation, negotiating, drafting and finalising the contract)
and unexpected risks. A survey of some standard construction contracts is given in Table 4.4.
Standard contract forms can be linked to certain types of procurement, but the choice of a
contract depends on how well it complies with the law in the project country.
Table 4.4 Four internationally adopted collaborative construction contracts
Standard Contracts for collaborative projects

contract
International Design and build Framework/ PPP projects
adoption partnering
FIDIC Used widely for The Orange Book No specific The Gold Book
international The Yellow Book provision
contracts The Silver Book
NEC Widely used in Suitable options, Framework contract NEC4 design–build–
many countries e.g. A and C Alliance contract operate contract
EJCDC Mostly for local Design–build No specific P3-508 public–
contractor documents provision within private partnership
(USA) (D-Series) the Series agreement
JCT Can be adopted JCT design and JCT Constructing Not specific provision
with build contract excellence (CE) with the family of
amendments Major project contract contracts
construction Framework
contract agreement (FA)
The Engineers Joint Contract Documents Committee (EJCDC) is an engineer-centred

contract intended for engineered construction projects in the USA. The C-Series is the
most recent edition, written in 2013, and comprises 24 integrated documents. The con-
tract includes provisions for payment alternatives, such as lump-sum and cost-plus, and
considers risk allocation.
Under the Engineering, Procurement and Construction Management (EPCM) contract, an

EPCM consultant undertakes engineering design, advises on procurement, and oversees and
manages construction works, but does not physically construct the plant. The EPCM consult-
ant negotiates construction and supply contracts on behalf of the owner, but each contract is
concluded between the owner and contractor or supplier.
The International Federation of Consulting Engineers (FIDIC) provides a family of
standard forms of contract for civil engineering construction, which are used throughout the
world for both building and civil engineering works. The Joint Contract Tribunal (JCT) also
provides a family of contracts but these are fundamentally for building rather than civil engi-
neering projects. They can be used for projects involving both building and civil engineering
works, however, JCT contracts are becoming more widely used on projects outside the UK
when UK professionals are involved.
The Commission on Commercial Law and Practice (CLP; one of the Commissions
of the ICC),25 based in Paris, is in the process of developing ICC model contracts and
clauses, which give parties a neutral framework for their contractual relationships.
These contracts and clauses are carefully drafted by the experts of the CLP Commission
without expressing a bias for any one particular legal system. The idea behind ICC
model contracts and clauses is to provide a sound legal basis upon which parties to
international contracts can quickly establish an even-handed agreement acceptable to
both sides.
Contracts and collaboration

A survey of the UK’s construction clients, consultants and contractors highlighted that
large projects steadily shift toward more collaborative contracts, e.g. NEC and FIDIC.26
The NEC is a project manager-led contract designed to provide an alternative approach
to the JCT forms, with an emphasis on mutual collaboration. The design and build con-
tract links best with this form and it makes particular provision for the contractor and
the client to forge close relationships, to jointly mitigate risks and to amend the contract
programme (not finish date) to suit the latest information available. It has provisions for
open accounting of changes, where change events are signalled early, and for keeping
accounting transparent, with agreed prices, before changes in scope are agreed. The lan-
guage of the contract is much more open and is designed to encourage more trust between
the parties.
The FIDIC provides a suite of international contracts to suit different procurement situ-
ations but also provides greater protection for contractors working internationally. The
PPC2000 partnering contract is broad-based to support partnering teams in small projects.
Case study 4.5 gives an example of using the more flexible NEC contract.
Case study 4.5 Contract flexibility in Hong Kong

A public sector client opted to use an NEC3 (ECC) Option C contract for a £45 mil-
lion project. The project, spanning three and a half years, developed housing and
community facilities, including a community hall, a sports centre, a public trans-
port interchange, new local distributor roads, noise barriers, footpaths, cycle tracks,
retaining walls, drainage, sewerage, water mains and other ancillary works for a new
territorial city in Hong Kong. The client’s in-house project manager was supported by
a consultant engaged to provide professional advice and training workshops to help
team members familiarise themselves with NEC procedures, including programming,
early warnings, risk reduction, compensation events and open-book accounting. The
employer and contractor sought to use contracts that would foster the spirit of mutual
co-operation to tackle day-to-day site issues that could affect the fast-tracking of site
formation. NEC3 contract demonstrated its benefits as it became apparent that utility
diversion works within the site areas were progressing slower than expected and when
the contractor raised concerns about the potential conflict between the proposed storm
drain and existing utilities.
The spirit of co-operation promoted by the NEC contract made it possible for the
contractor to submit an early warning, and, following a joint risk-reduction meet-
ing, measures were put in place, including trial trenches and a review of construction
methods, that enabled the drain alignment to be adjusted with minimum effect on the
completion date and overall project cost.
Contract and trust

Historically, construction contracts allowed clients to push excessive risk and responsibili-
ties on to the contractor, and they often resulted in delayed payments to contractors and a
lack of trust that escalated confrontations. In the early 2000s construction contracts began to
respond to Egan’s27 challenge to replace the adversarial and conflict-ridden contracts with
better relations. Contracts have increasingly responded with clauses that reward excellence,
while also providing for alternative ways to resolve disputes amicably before they esca-
late and damage trust. Procurement has also evolved to become more welcoming to repeat
business through project partnering and framework agreements. Newer editions of standard
contracts have included express or implied terms that promote the duty of good faith by
requiring all parties to collaborate. For example, the Engineering and Construction Contract
contains an express clause (Clause 10.1) that requires the parties to act in a spirit of mutual
trust and co-operation. The contracts also offer open options for use in both traditional and
design and build projects. There are also options for management contracts and partnering,
e.g. using framework agreements.
Other families of contracts such as the JCT’s standard building contracts (SBCs) and
FIDIC have included the duty of good faith in collaborative framework agreements. These
agreements have proven to be effective in promoting long-term project partnerships.
Partnerships are commended for performance improvement achieved through the use of inte-
grated teams, risk sharing between the employer and the contractor and reward schemes (e.g.
sharing of financial incentives that link the parties to agreed overall outcomes). The JCT
family of contracts also includes a prime cost contract for emergency works that require the
contractor to be involved early. The contract has a reward mechanism for the contractor to
collaborate with its supply chain so that the project is delivered on time, within budget and
to the expectation of the client. The prime contractor is a single point of contact for the cli-
ent and has to maintain a positive working relationship, open communication channels and
methods for resolving disputes.
A trusting relationship is born naturally as both parties sign an agreement to work towards
a common goal. This relationship is enforced by signing a construction contract that basi-
cally acts as a legal safeguard against potential circumstances. It is useful to acknowledge
the fact that construction projects are complex and full of indeterminate risks, which, over
the years, have led to unresolvable disagreements. It is therefore advisable for both parties
to adopt a standard form of contract that best meets their expectations. These contracts have
been developed by credible and professional bodies to resolve common misunderstandings
in areas where a self-interest-seeking party would be likely take unsustainable competitive
advantages over the other. JCT contracts, for example, are designed to address legal chal-
lenges learnt from many decades of lawsuits that reflect the complex legalistic language used
in the clauses.
Effective project management should aim at building trusting relationships within the
project team and between the client and contractors to reduce contract administration costs.
When everyone believes that no signatory will take advantage of another’s commercial
vulnerability, all parties will be more likely to agree to a beneficial contract and to work col-
laboratively. This collaboration is mutually beneficial and will reduce transactional costs and
chances of costly variations. A survey of construction contracts in the UK, carried out by the
NBS in 2015,28 found that 44 per cent of contractors and clients were involved in disputes,
mainly concerning time extensions and the value of the final account.
Lonsdale et al.29 carried out a comprehensive review of procurement and management
of contracts and observed that the concept of trust was open to interpretation. From a rela-
tional perspective, trust can promote good practice in procurement, contract negotiation
and subsequently the administration of the contract during the implementation phase. On
the other hand, trust can easily be tarnished by opportunistic behaviours if the parties have
an excessively internal focus or face external pressures. Lonsdale et al. make five recom-
mendations to promote a change in the prevailing cautious behaviour evident in the industry
and to build trust:
• The dominant player in the procurement process should refrain from aggressive and
controlling behaviour, which promotes fear and results in others lacking the confidence
to negotiate and create a benevolent relationship.
• Use of an open book approach allows the parties to communicate their interests in order
to reduce the chance of misunderstanding; in the process they will be able to explore new
grounds for mutual gains.
• Work must be executed in a non-restrictive manner in order for a trusting relationship
to prevail.
• Design terms of binding contracts need to provide opportunities for the contractor to
innovate and gain from the value they effectively add to the project (mutual gains).
• Mechanisms that maintain trust throughout the project period must be put in place, such
as in terms of negotiating common values and shared strategies so that trust can develop
naturally over time.
Managing a contract
There is an increased overlap between the project manager and contract administrator, as
both roles have a duty of care to the employer and must treat all parties equitably. All major
contracts cover issues of fairness, impartiality, duty of care, due diligence, communication,
liability, respect, problem solving, dispute resolution and liabilities of the parties. Good pro-
ject management practices are highly relevant in administrating a collaborative contact by
putting a team together in order to mitigate risk and resolve conflict. The project manager
enhances effective communications between the parties and stimulates speedy decision mak-
ing. Chapter 13 discusses various digital solutions, such as building information modelling
(BIM), and Chapter 5 describes project management information systems as alternatives to
conventional paper-based methods of contract administration.
Conclusion
Procurement management is one of the core functions of project management. It aims to
provide the project with means and works, such as design solutions, tools and materials along
with the expertise required to deliver value to the client. Best project results can be assured
when decisions are made at the early project stages, as these have a crucial bearing on how
key resources, including design expertise, funding, materials and construction machinery,
will be sourced. Early decision making on procurement basically addresses concerns from
stakeholders and therefore increases the chance that project objectives will be accepted and
the required resources agreed. In the procurement process the client implicitly entrusts a
third party with the success of project. Procurement that recognises the need for a common
understanding of project goals can result in a trusting relationship that benefits both the client
and the contractor. Appointment of lead consultants with knowledge of the local area can
best link innovative solutions to the client’s need and have a positive impact on communities
and the environment.
Procurement is about accounting for how budgetary allocation is spent. For government
bodies, procurement accounts for around 85 per cent of money spent on infrastructural devel-
opment, such as roads, railway lines, hospitals, schools, offices and housing schemes. In cases
where the public sector’s ability to fund projects is limited, PPP is promoted to encourage
funding streams through private sector investment. Alternatively, bilateral funding streams
may be available as a result of low-interest long-term loans offered between governments
or through applying for international funding. Because of the high stakes involved in public
procurement, strict regulations and procedures are necessary to increase transparency and
accountability, especially when public funds are involved. Innovative procurement options
now exist that encourage early and leveraged relationships between client and contractors.
The development of PPP models has meant that large infrastructure projects are now car-
ried out around the world using private sector skills and funding. The desire to establish
a long-term partnership and extended commitment encourages business planning and risk
management at the beginning of the project where problems can be ironed out with less
conflict. Integration between the various parties and the client is much stronger than when
funders, contractors, clients and consultants are all operating under conventional procure-
ment. It is possible that, in some cases, public institutions are overly motivated to attract
public sector funding, but with limited regard for demand and income forecasts that guar-
antee VFM. Collapses in some schemes have justified concerns that handing over excessive
responsibilities to private investors on a long-term basis puts them under pressure to cut
costs, leading to compromised quality.
The project manager has the potential to play a leading role in driving the project by build-
ing a functional platform through which all parties involved in the contract can communicate
more effectively for the common good and overall success of the project. We have described
best practice in administrating contracts and illustrated construction contracts that unify man-
agement responsibilitie to promote integration through all tiers of the project supply chain.
Standard construction contracts that are purposefully designed to mitigate challenges within
the industry have increasingly embraced the duty to act in good faith so that the parties trust
one another when collaborating to solve unanticipated problems. Trust in building teams is
further explored in Chapter 8, which addresses people-related challenges facing the litigious
construction industry.
Notes
1 Boyd D. and Chinyio E. (2006) Understanding the Construction Client. Oxford, Blackwell.
2 KPMG (2016). Increasing Value in Supply Chain Management. Available online at: https://home.
kpmg.com/content/dam/kpmg/pdf/2016/06/KPMG-Ignite-Increasing-value-in-supply-chain-and-
procurement.pdf (accessed 26 July 2018).
3 Walker D. H. T and Rowlinson S. M (2008). Procurement Systems: A Cross-industry Project
Management Perspective. London, Routledge.
4 Ibid.
5 CIOB (2014) Code of Practice for Project Management in Construction and Development. 5th edn.
Oxford, Blackwell, p. 155.
6 Flanigan R. and Norman G. (1993) Risk Management and Construction. Oxford, Wiley-Blackwell.
7 Greenwood M. (1998) Risk Behaviour. Unpublished Master’s Thesis, University of Northumbria.
8 Harris F. and McCaffer R. (2006) Modern Construction Management. 6th edn. Oxford, Wiley-
Blackwell.
9 Lazarus D. and Clifton R. (2001) Managing Project Change: A Best Practice Guide. C556. London,
CIRIA.
10 Lazarus and Clifton (2001).
11 Latham M. (1994). Constructing the Team: Joint Review of Procurement and Contractual
Arrangements in the United Kingdom Construction Industry. London, HMSO.
12 Grimsey G. and Lewis M. (2005) Are Public Private Partnerships Value for Money? Evaluating
Alternative Approaches and Comparing Academic and Practitioner Views. Accounting Forum,
29(4), 345–378.
13 Akintoye A. and Kumaraswamy, M (2016) Public Private Partnerships: CIB TG72 Research
Roadmap. Available online at http://www.irbnet.de/daten/iconda/CIB_DC29669.pdf (accessed 26
October 2017).
14 World Bank (2004) Guidelines: Procurement under IBRD Loans and IDA Credits. Available online
at: http://siteresources.worldbank.org/INTPROCUREMENT/Resources/Procurement-May-2004.
pdf (accessed 10 October 2017), p. 43.
15 OECD (2006) A Policy Framework for Investment. Available online at: http://www.oecd.org/docu
ment/61/0,3746,en_2649_34893_33696253_1_1_1_1,00.html (accessed 10 October 2011).
16 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on
Public Procurement and Repealing Directive 2004/18/EC. Available online at http://eur-lex.europa.
eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0024&from=EN (accessed 16 October 2017).
17 Henjewele C., Sun M. and Fewings P. (2011) Critical Parameters Influencing Value for Money
Variations in PFI Projects in the Healthcare and Transport Sectors. Construction Management and
Economics, 29(8), 825–839.
18 Rwelamila P. D., Fewings P. and Henjewele C. (2013) Addressing the Missing Link in PPP Projects:
What Constitutes the Public? Journal of Management in Engineering, 31(5). doi: 10.1061/(ASCE)
ME.1943-5479.0000330
19 World Bank (2009) Public Private Infrastructure Advisory Facility (PPIAF): Annual Report
2009. Washington, DC, World Bank. Available online at: http://documents.worldbank.org/
curated/en/349951468331014860/Public-Private-Infrastructure-Advisory-Facility-PPIAF-annual-
report-2009 (accessed 16 September 2018).
20 Contractors come under The Public Contract Regulations 2006 and the Utilities Contracts
Regulations 2006. Consultants come under the Services Regulations SI 1993/3228.
21 CIOB (2010, 4th edition) and (2014, 5th edition).
22 Novation is the process whereby the scheme design created by the concept architect employed
by the client is transferred to a design contractor to create a detailed design as part of the contract
conditions.
23 HM Treasury (n.d) Procurement Guidance No 3: Appointment of Contractors and Consultants.
London, HMSO.
24 CIOB (2010, 4th edition) and (2014, 5th edition).
25 See https://www.iccwbo.be/the-commissions/commercial-law-and-practice/ (accessed 16
September 2018).
26 National Building Specification (NBS) (2015) National Construction Contracts and Law Survey
2015. Available online at: https://www.thenbs.com/knowledge/national-construction-contracts-
and-law-survey-2015 (accessed 18 August 2018).
the Regions; and Egan J. (2002) Accelerating Change. London, Strategic Forum for Construction.
28 NBS (2015).
29 Lonsdale C., Sanderson J., Watson G. and Peng F. (2016) Beyond Intentional Trust: Supplier
Opportunism and Management Control Mechanisms in Public Sector Procurement and Contracting.
MPRA Paper 76094, University Library of Munich, Germany. Available online at: https://ideas.
repec.org/p/pra/mprapa/76094.html (accessed 16 September 2018).
5 Planning and control
What? This chapter moves on from looking at the product and its definition and considers the
strategy and planning processes for delivering the product. Control is used to ensure compli-
ance, effectiveness and efficiency through the implementation of design, construction and
handover. Control of scope, time, cost, quality and the allocation of risk is the focus of this
chapter. The objectives of the chapter are to:
• explain the roles of planning and control and its subsystems

• establish the role of control systems
• examine scope and change management
• identify strategic risks and their allocation
• consider techniques for time and cost control
• demonstrate time, cost and quality control systems
• evaluate and improve information systems.
Why? The complexity and sometimes failure of control may be due to lack of planning and
clear objectives, or the impact of one control system on another. For example, reducing cost
or time may affect quality, so an integrated plan and strategy are needed. An approach that
recognises client’s objectives and integrates the different areas of control in the supply chain
will smooth the path of the project manager in terms of co-ordinating these systems and
satisfying the client.
How? Project strategy is expressed in planning and control systems and these systems
must be open and integrated so that external influences are acknowledged and awareness of
their interdependence is recognised in the organisation of construction projects. It defines
useful processes for organisation, which can be controlled with reference to internal and
external factors. The overall planning of a project is sometimes pulled together in a project
execution plan (PEP) or master plan, which integrates the risks that can impact control of
the project from inception to handover. Critically, control systems need to be chosen that are
integrated between design and construction because this approach inspires client confidence
regarding the quality of the final product and its meeting of the target objectives.
Definition and context

Project strategy may be defined as ‘the route to get to where we have determined to go’.
Strategy also concerns the organisation of people and tasks. It follows feasibility and runs
alongside design. Project planning is the process of defining, quantifying, costing and tim-
ing project activities and defining project achievements (events or deliverables), risks and
standards; for example, a time or cost schedule, a cost plan, a risk strategy, a quality plan or
Planning and control 111
a health and safety plan. Project control is the process of adjusting progress to maintain the
plan or schedule.
Planning and control takes into account people, tasks and resources. Project managers
need to place equal emphasis on all three and thus must consider:
• For people – who is responsible, how shall we communicate and achieve standards
consistently?
• For tasks – what activities are needed and how shall they be completed within time, cost
and quality constraints?
• For resources – how to procure them effectively and efficiently?
The project manager also has to ensure that the objectives prioritised by the client are met in
a safe, sustainable and orderly way. Progress should be reported in a way that promotes con-
sistency and confidence. Planning and control needs to respond to external pressures, which
are often less predictable. Thus, planning and control is an open system view that heeds:
• overall client objectives

• impact on external environment
• effectiveness of project.
Ignoring the impact of the external environment has often led to project failure. Although the
external environment is not in the control of the project manager, it can be anticipated so that a
response can be made. For example, a shortage of local skilled labour could lead to the incorpo-
ration of a wider subcontractor tender list or greater mechanisation to ensure a proper service.
Project effectiveness refers to the efficacy of product delivery and proper assessment of the
impact of changes to the client’s objectives on time, cost and quality. Risk reassessment is a
critical process as a side effect of the dynamic environment of control and scope adjustments.
Figure 5.1 shows the main elements to be established in planning and control, together
with the employment of the project team to suit.
Strategy depends upon organisation and control. Key planning processes are managing pro-
ject scope, procuring the contract, setting up control systems and managing time, cost, quality
Stage
Integrated planning and control system MANAGE
Health and Organisation and Supply chain: Time, cost and

4. Control
safety plan information plan procurement plan quality plans
Design Choosing Resource/supply Risk and value

3. Strategy
management procurement route chain management allocation
Scope and
2. Organisation Internal and external constraints
quality definition
1. Constraints Client objectives
Figure 5.1 Elements of planning and control at different stages

and safety. The control emerges from the constraints and the scope definition. The tools and
choices in row three in Figure 5.1 must be managed in tandem and not operate in a vacuum.
Project integration and systems

Systems are used as integrating tools to work out what inputs are needed to achieve objec-
tives. Each system has an input, a managed transforming process and an output. An open
systems approach recognises that systems are influenced by what is going on in the external
environment; for example, the availability of skilled labour or sufficient plant and the impact
of the economy. Figure 5.2 shows what is called an open systems approach recognising the
influence of the environment.
There is an overall system and there are subsystems. In the case of construction projects,
for example, the overall construction system has an input of materials, labour and plant; a
transformation, the process of assembly; and an output, a finished building or structure. In
Figure 5.3(a) we deal with the time schedule control subsystem, which predicts a completion
time taking into account the quantity of work and labour and plant speeds. A programme
is formed based on sequencing and monitoring of the project stages. Project management
ensures programme compliance. Figure 5.3(b) shows that the cost subsystem depends on
programme compliance with cost inputs of labour, plant and materials and a cost plan to
monitor and ensure budget compliance. Both systems are managed by the project manager.
External environment
Internal environment
Transforming
Input Output
process
Figure 5.2 The basic system
INPUT Process OUTPUT
a) Timescale Managed trade

Labour rates skills, time schedule Building on
Plant rates sequence and programme
Material quantity resources
b) Cost of
- materials
Managed budget and Building on
- labour
bills of quantity budget
- preliminaries
- profit
Figure 5.3 Construction control systems: (a) time subsystem and (b) cost subsystem
Overall project
Concept Design Assembly Commission
Concept subsystem
Business Stakeholder Business plan Design brief
need analysis and budget and inception
Design subsystem
Design brief Scheme Approved
design and PA Detail design design and tender
developed
Construction subsystem
Specialist Assembly and Completed
Mobilisation
design control building
Commissioning subsystem
Individual Handover and
Test scheme Integrated tests
tests satisfaction
Figure 5.4 Project subsystems1
The overall project is shown in Figure 5.4, together with its subsystems. It shows the
phases of the project life cycle; that is, concept, design, assembly and handover. Each of the
subsystems has its own inputs, dependent on the previous subsystem, and produces relevant
outputs; for example:
• The output of the concept subsystem is the design brief.

• The output of the design subsystem is the granting of building permission.
• The output of the construction subsystem is the completed building.
• The output of the commissioning system is a working building and a successful hand-
over to the client.
Figure 5.4 is a simplified breakdown of the project life cycle. It illustrates the interconnec-
tions of various product subsystems and shows that it is quite possible for different phases of
the whole project to overlap. These systems provide a strong foundation in terms of under-
standing the scope of the project.
Project scope and breakdown

Control of project scope depends on understanding the detail of the work breakdown, which
identifies a hierarchy of activities that need to be controlled at different levels.
Project scope
Integration of the Project Management Institute’s five life cycle stages of a construction
project,2 discussed in Chapter 3, brings together systems and processes to develop a stable
project scope for effective planning and execution. Figure 5.5 shows the relationship of the
PMI scope stages with the PMI life cycle. The CIOB life cycle for construction projects
(Figure 1.1 in Chapter 1) is superimposed for comparison.
Figure 5.5 clearly shows how scope management is applied across the project life cycle.
A control system ensures that scope does not ‘creep’ and lose value.
Design and
CIOB phase Inception Feasibility Strategy Commission
construction
Execution and
PMI process Initiation Planning Close
control
Scope
Example of Client’s Scope Scope planning Scope
change
scope brief definition OBS and WBS verification
control
Figure 5.5 Integration of project scope with life cycle*

*See also p.57.
Work breakdown structure

The work breakdown structure (WBS) relates to scope planning, and scope definition
provides a sectional breakdown of functional tasks and controls. For example, spatial
design and services design are two elements of a breakdown related to user comfort.
As such, they are separately delivered but also need to be co-ordinated. The WBS also
creates a hierarchy of subsequent detail, as indicated in the clean room project shown
in Figure 5.6.
The primary aim of the lower levels of the WBS is to provide a framework for allocat-
ing tasks, though individual responsibility needs to be connected. At the higher levels it
helps to identify stakeholder requirements. Breakdowns may not be functional as indicated
in Figure 5.6 but may be related to phasing or to subcontract packages. The organisation
breakdown structure (OBS) assigns a hierarchy of management responsibility to each level
of work breakdown. A task responsibility matrix (TRM) will be used for allocating people to
the tasks at each level, so that every activity gets done.
Product scope Project scope

Clean room facility
Scope
planning
Stakeholder
Design plan Construction plan Cost management
management
Scope
definition
Structural design Spatial design Services design Scheme design Cost plan and design
cost checks for budget
Level three
Clean Heating and Detailed cost
Fire Electrical
rooms ventilating estimate for tender
Level four
Clean Sectional cost
Production
technology plans ongoing
Activity
definition
1:100 water 1:50 steam Cost control during
mains drawings mains drawings project for valuation
Figure 5.6 Work breakdown structure for a clean room facility design
The master plan
The master plan, or project execution plan (PEP), is an overall document that includes the
design and execution processes. It concentrates on delivering the design in ‘bricks and mor-
tar’. Reiss3 regards a plan as having three main uses:
• as a thinking mechanism: 50 per cent

• as a communication tool: 25 per cent
• as a yardstick: 25 per cent
In terms of planning, Reiss emphasises thinking through the work ahead in a systematic way
and enhancing the manager’s ability to communicate. A plan represents the thinking process.
It is also a yardstick to act as the basis of checking control.
The Association for Project Management (APM) body of knowledge (APMBOK)4 links
the project master plan with the key success criteria and suggests that key performance indica-
tors should be established in order to monitor the plan as a basis for control and evaluate its
success (yardstick). It is a plan for action and establishes the control criteria. In the Project
Management Institute’s body of knowledge,5 the master plan is called the project execution
plan (PEP). The executive part of the plan answers four main questions in the thinking process:
• How? A procurement process is chosen. A quality plan, sustainability and health and
safety plan track the flow of information to meet client objectives.
• How much? A cost plan and a cash flow are established to suit the client’s budget and
fund availability.
• When? A programme of key activities and events (milestones) is created, including pro-
curement from suppliers, with calendar dates to establish key decision points (gateways)
to ensure an agreed finish date is achievable and to determine resource usage.
• What risk? A risk register is compiled to identify risks and allocate responsibility for
them in the contract.
The PEP is a combination of these individual time schedules and budgets adjusted to suit
the overall budget and programme constraints. A ‘hardening’ of the plan takes place after
consultation and approval by the client. The main stages of approval are shown in Table 1.2
in Chapter 1.
The iterative process of change depends upon good teamwork between many participants.
Freeze dates for any design changes need to be agreed on a procurement programme in order
to avoid abortive costs and to establish client commitment dates. The freeze date should be
directly proportional to the procurement lead-in times. Beyond this stage further significant
changes are formalised by a change order and should be at the prerogative of the client.
ISO 100066 and the OGC Gateway Process7 (Chapter 2, Figure 2.7) give some guidance
regarding what should appear in the project execution plan, but this is an individual preference.
Risk planning: identification and allocation

In the plan risk should be identified, reduced to acceptable levels and allocated. Each risk
should be managed by the party who is best able to deal with it. Risk transfer can be expen-
sive if it means that risks are managed by those who are inexperienced, or who do not have
the influence to reduce its impact or probability. External PESTLE8 factors can affect a current
contract and are not controllable from within; they may, however, be predictable.
Typical risk areas to plan for are client changes due to uncertain business predictions,
user requirements, subcontractor default, technical failure, strikes or other labour short-
ages, bad weather, critical task sequences, tight deadlines, resource limitations, complex
co-ordination requirements, and new complex or unfamiliar tasks. Many of these are not
covered by insurance.
According to Smith,9 risks that appear in the business case can be put into four cat-
egories: financial, revenue, implementation and those connected with the operation of the
finished facility. In a commercial project, the viability of a project depends on revenue that
may be influencd by future economic conditions that should be risk assessed. It is very dif-
ficult to establish a universal risk categorisation. Experienced clients such as the National
Health Service (NHS) have developed standard risk registers that categorise risk to allow
comparison, but allow flexibility for the project team to add and subtract as appropriate.
Every project is different and needs a unique register of risks generated from a knowledge
of the contract and past experience. Edwards10 categorised risk factors as explained in the
following sections.
Legal liability could be allocated to any of the parties and insurance is used to cover events
such as professional indemnity, fire and third-party damage, which are compulsory. Political
events often have a financial effect on the projects operating or financial structure. An exam-
ple of this type of risk is illustrated in Case study 5.1.
Case study 5.1 Political risk

Building Schools for the Future (BSF) was the name given to a multi-billion-pound
project to renew all schools in the UK. Schools were procured in groups by locally-
based educational partnerships. This was an attractive proposition for contractors and
consultants because educational partnerships offered the opportunity for work into the
future and standardisation that could maximise profits that could then be shared with the
client. Contractors invested in specialist systems to suit the rules and types of procure-
ment contract. However, with the coming of a new political regime, inefficiencies were
deemed to exist in the system and all partnerships were stopped quite suddenly, leaving
contractors and consultants with investments for the future that were surplus to require-
ments and in some cases too much dependency on this source of income. It is not easy
to allow for this type of risk except by maintaining a balanced portfolio of projects.
Financial risks are allocated to the financial sponsor of the project, who is usually the cli-
ent in traditional construction procurement. Loan and purchase risks include exchange rates
and interest-level predictions changing significantly. Equity funding may not be taken up as
expected and stock market conditions can destabilise company borrowing levels and cause
lenders to be more wary and their terms more expensive.
Revenue risks are allocated to the client or the facilities manager. Traditionally, revenue is
a risk for the project client who controls the marketing process. It is also important for DBFO
projects that have toll collecting agreements; although there are often let-out clauses, the
main issue is cash flow. Case study 5.2 gives an example of such a risk.
Case study 5.2 Bridge revenues

The Skye Bridge is run by a private consortium that charges tolls. Toll prices, however,
were restricted to index-linked limits for a given period of time, after which tolls would
cease. However, in order to strike the deal, the consortium negotiated for an extended
period of toll collection before handing the bridge back to the Scottish Office. The exten-
sion was needed to cover the extra cost of certain environmental design changes.
Market changes or poor market conditions can severely affect revenues.
The arrangement described in Case study 5.2 is popular worldwide, especially in India
and Canada, and require a concession that is long enough to repay capital, finance and main-
tenance costs. Assets are returned to the government or other client, in good condition, at the
end of the concession. See Chapter 4 for more on procurement.
Implementation risks are those most closely associated with the construction process of
design, tender, construction and commission. They are traditionally shared between the client
and the project team according to standard conditions of contract (see Chapter 4). Broader
forms of procurement transfer liability for all but scope changes to designers and contrac-
tors and provide much better client protection from late design development changes, which
create abortive work with no increase in value to the client. The risk of cost overrun is pro-
portional to the certainty of the design and the pricing model. With uncertainty, the tender
price compared with the earlier approximate estimates may point to cost cuts, as clients will
have budgeted based on early optimistic information. Professional competence requires his-
torical inaccuracies to be considered as project approval may not even go ahead with inflated
early cost appraisals. Cost overruns due to claims should be avoided, but may result from
poor project management.
Technology risks concern teething problems for new products or designs or IT systems
going wrong. These are usually at the risk of the client, but are also related to the design role,
where the project team has a performance brief and is dealing with the development of new
products or is using them in innovative ways. Process technology that misfires or does not
live up to expectations comprises a risk, in terms of investment of time and capital, for the
contractor and designer. Case study 5.3 provides an example.
Case study 5.3 Technology risk

The fire that occurred at Grenfell Tower in London in 2017 is an example of a failure
to address a technology risk. The approved testing system for fire safety failed to take
into account the height of the building and the effect this would have on fire breaks
and evacuation; nor was the flammability of the exterior insulating cladding checked.
A disastrous loss of life was the result. The quality of the insulating material is now being
investigated and the practicality of installing it to such tolerances
Operational risks relevant to the finished building are the shared responsibility of the
designer and the client. They relate to weak and inappropriate design, poor briefing and
scope, lack of co-ordination between design and fitting-out requirements and poor use or
misuse of the building. Plant performance has a major effect and again is related to design.
However, the fitting-out and quality standards specified by the client may have led to opera-
tional unreliability, expensive breakdowns and downtime, excessive running costs or even a
de-motivated workforce. Case studies 5.4 and 5.5 illustrate this type of risk.
Case study 5.4 Operational/design risk

An operational problem occurred in a brand-new building designed and built for a gov-
ernment agency and comprising open plan, sealed and air-conditioned office space.
The building was handed over to the client without fitting-out. At occupation, far more
computers were installed than designed for and the extra heat they generated meant
that, in hot weather, the air-conditioning system was unable to adequately cool the
building. Staff thus endured difficult working conditions during the summer.
A major electrical breakdown also occurred as a result of flooding in the basement,
causing systems to fail during a frenetic weekend. Insufficient back up, lack of co-
ordination and operational changes gave the whole project a bad name and damaged
initial productivity in the new office. Managing risk associated with operational condi-
tions is one of the hardest tasks faced by project managers because they often do not
have access to the final heat loading for the building at design stage.. Here, flooding
protection may have been a design oversight or a budget cut.
Case study 5.5 Design risk

A major health facility suffered the following operational problem. A system to disperse
and neutralise micro-bacteria in a pathology testing laboratory failed at the design stage.
The redesign process led to a delay of almost two years. When staff finally moved in
their productivity and trust in the new facility were compromised by other faults, includ-
ing the inefficient cooling system.
This type of risk is again difficult to assess as it seems to be a one-off. The key issue
was excluding the maintenance team and users from participating in the design process.
Project control
The control system is critical to the health of the project and its choice should influence
the planning processes rather than the other way around. Clients require interim progress
reports resulting from the project control systems. Experienced clients also see the project
team as critical to effective control and wish to vet the personnel at interview stage. It is
also likely that they will insist on approving key suppliers to maintain priority objectives
and relationships.
Construction
Input Output
process
Monitor
Figure 5.7 Feedback control system
Feedback and feed-forward control

Two approaches to control are discussed here: feedback and feed-forward. In construction,
the former method is used much more often; see Figure 5.7. Unless instantaneous feedback is
obtained the system may not produce information quickly enough to take action in a unique
situation. This is because a project’s repetitive activities take place over a relatively short
period of time and, if control is based on finding written reports, corrective action might be
too late.
The feedback control system briefly consists of setting up targets, monitoring perfor-
mance, measuring the gap between planned and achieved targets, identifying the problem
and taking corrective action. A number of issues may inhibit the efficiency of the feedback
control system:
• It can take time before an output is reliably measurable.

• Correction does not spontaneously occur following measurement Frequent checks are
expensive. Four-dimensional BIM could help address both of these issues.
• Control is reactive and investigation of root causes delays correction. For example,
labour productivity, plant suitability, materials availability and delivery are all very dif-
ferent problems. Virtual reality scenarios (what if?) may help here.
• Project activities are often short-lived and not repeated so corrections may be too late
and not relevant.
Feed-forward control involves anticipating problems in advance and taking action to avoid
them. See Figure 5.8.
Construction
Input Output
process
Monitor
Figure 5.8 Feed-forward control system

The key components of the feed-forward system are:
• setting up targets
• anticipating problems meeting targets by discussing causes with the team at regular
intervals before the relevant deadlines
• taking prior management action in order to avoid or mitigate the problem
• monitoring performance to make sure action has worked (feedback)
• making further adjustments if necessary.
A typical feed-forward system is proactive and operated through the establishment of advance
meetings to co-ordinate the activities of different specialists and to consider resources and
information availability and the resolution of current and projected problems. It tests the
robustness of individual plans and concentrates on interfaces where the performance of one
contractor will have an effect on another. It operates on the latest information available and
allows for contingency planning where there are any doubts over performance or issues out-
side the control of the project staff.
In feed-forward systems the emphasis is on thinking through the implications with others
so that communication is implicit rather than explicit. The feed-forward method (predic-
tion) is more efficient as long as there is an openness to discussing problems and to dealing
with them realistically, with a commitment to flexible planning. Other problems with
feed-forward systems are that they are time-consuming if work is simple, they depend on
experience/training and they are expensive. There are other methods of control that are help-
ful in considering effective management.
Other methods of control

Management by exception is a simple principle for releasing management time spent on
monitoring the formal control system. It requires only inputs outside a plus or minus band of
conformity; see Figure 5.9. Detailed control is delegated to the first-line manager.
This system allows for a band of control within which the project manager does not
interfere. It recognises that ‘actual’ will vary from ‘planned’ at times, but that it is the
responsibility of others to let the project manager know when performance is outside certain
limits. This is still a feedback system, but its strength is that the project manager can have
more time for strategic forward-thinking. Delegation of this nature has a motivating effect in
the right climate, allowing responsibility to be granted to more junior staff, thus developing
Upper limit
Planned level
Lower limit
Action required -
outside control limits
Figure 5.9 Control bands

their skills. The weakness of this system, especially for construction projects, is the vari-
able quality of supervision in the context of specialist contractors and the critical effect on
lots of parallel activities if one goes out of control. Also, with one-off projects, it is difficult
to accurately monitor and provide timely feedback on time, cost and quality conformity;
therefore it may not be realised that an activity has gone outside its control band. Repetitive
projects, such as housing, benefit from this looser approach. Case study 9.12 illustrates this
type of control.
Management by objectives (MBO) has a similar goal in transferring responsibility to a
lower level and cutting down the degree of supervision required. Here, a junior manager
will be required to identify performance targets for the section of work for which they are
accountable and to report back at increasingly longer intervals on their achievement. This can
be motivating for the section manager, as it empowers them to make important decisions. It
also requires perception and trust on the part of the senior manager in agreeing achievable
targets, which stretch and do not strain the manager. It works best where there are clear
objectives. To read more about this form of control, see McGregor.11
Earned value control is dealt with later as it specifically deals with cost control and
productivity.
Time schedule (programme)

The time schedule or programme is often presented in the form of a Gantt chart with a list
of grouped activities shown as a bar to represent their duration and on a time scale in order
to indicate their sequence. The schedule shows the best estimate prediction of events and
durations but not their logical relationships, which means they can be misused by overlap-
ping or squashing activities more than logic allows. This hides impossible peaks of resource
use. Linked Gantt charts are superior in that they indicate the critical path sequence (see the
Appendix at the end of this chapter) with a vertical line. Modern, even very simple, pro-
gramming software allows logic constraints and resource loading to be attached to activities
and resource limits to be imposed. The more sophisticated software starts from the work
breakdown structure so that the responsibility and grouping structures are thought through.
The critical path method underpins logic and identifies the shortest possible path through the
programme. However, creative changes to methodology alter the critical path.
There is no one method for creating a time schedule and an essential part of using a Gantt
chart as a baseline for progress is to agree its use with the management team as the method
determines the sequence. A prefabricated panel of bricks instead of in-situ brickwork may
eliminate scaffolding and speed up construction, as a panel of bricks can be treated like a
cladding panel and fixed from scissor lifts. Many other books provide detailed information
on time-scheduling techniques. The Appendix at the end of this chapter provides a simple
guide to using a Gantt chart and the critical path method. Programme types and purpose are
set out below.
The overall programme should be used as a framework for establishing the critical start
and finish times of the project and its major subsections. It sets out design requirements,
construction start and finish dates, specialist start and finish dates and lead-in times for pro-
curing materials and specialists. It gives a basis for reporting to the client. This is the baseline
programme, which is often prepared using the critical path method.
Time schedule control
It is often perceived that a programme carried out at the beginning of the project with lim-
ited information will still be able to predict accurately each detailed activity time. It is also
expected that there is a single logic for the assembly of a construction project. Neither of
these is true and a progressive system like that described below allows more respect for the
planning process and allows response to current data.
The time schedule, like design and cost evaluation, is an iterative process. Iterative means
that later schedules supersede on the basis of more information, non-compliant progress,
methods that change sequence and variations issued. For the purpose of control, the baseline
comparison has critical phased completion dates that should remain. A staged programme
takes into account current progress and, if it is deficient, seeks to load resources and resched-
ule to catch up some or all lost time over a 6- or 12-week period. The client is concerned
with any handover dates and wants to know about actions being taken to make up delays.
Case study 5.6 deals with rescheduling a design slippage in progress.
Case study 5.6 Slippage in design programme

Figure 5.10 illustrates a typical situation for a project falling behind programme and not
meeting the critical construction start date onsite in traditional procurement.
In a feedback system, the programme will be measured now and the programme
will be discovered to have dropped behind. Rescheduling the project to finish the stage
on time depends upon feeding in extra resources (plant or labour), re-sequencing the
logical progression or overlapping activities to a greater extent to catch up. This is a
traditional response.
Using a feed-forward system, communications will be better and design problems
will be picked up before irretrievable lateness becomes a problem. Although extra
resources are fed in, they are not trying to make up time already lost. It is wise to inves-
tigate the reasons for under-resourcing in the first place so the original problem does
not persist.
Traditional contracts mean design must be largely complete to go out to tender,
which means that additional designers must be drafted in to solve this problem under
both systems. Both systems can fall down if there is a lack of communication because
the targets will not be monitored tightly and over-optimistic or misleading information
may be given.
Design stage Construction stage Commission stage
Actual predicted progress Fixed

Re-programme Critical three-week end
programme date
Time now
Check 2
Design just Stage target Stage target
starting must be met must be met
Figure 5.10 Reprogramming within the critical stage dates

Construction time schedules
A baseline construction time schedule will be produced based on start time and finish time
onsite. This will take the form of a Gantt chart underpinned by resource levelling and a logic
critical path programming method and will be progressed on a regular monthly or stage basis.
The procurement schedule is a co-ordinated programme with the designer in order to get
information in time to meet the lead-in times of the overall programme. It provides a back-
ward linkage from the date that materials, components and specialists are required onsite.
Thus, if steel is required onsite in the eleventh month and there is a six-month lead-in time for
its design, manufacture and delivery, then information is required in the third month to allow
two months for tendering, receiving competitive quotes and placing an order.
The stage schedule provides a quarterly timeframe responding to new information and
predicting its impact on activities. Reprogramming may be necessary to maintain correct pro-
gress within that stage to assure progress of the overall programme. This programme takes
into account major changes in scope and looks at programme acceleration or alternative logi-
cal and critical paths, giving time to agree on an alternative methodology and its implications
for health and safety and resources.
A sectional schedule focuses on a particular area of work in more detail so that interacting
packages in this location can be identified more closely. It is likely to relate to a sectional
manager’s area of responsibility. It might be derived from each stage programme.
The monthly schedule fine-tunes the stage programme and gains agreement and sign off for
subcontractor start and finish dates. It shows the detailed integration of activities on a detailed
basis, following discussion with subcontractors. This can be used with the system of interface
planning indicated in Figure 5.11. A monthly programme is five weeks long to interlink them.
The weekly meeting provides an opportunity for the site team to meet all of the supervisors
involved in the current work and to make final adjustments to avoid anticipated last-minute
problems. On a weekly basis, there is an opportunity to discuss whether any of the common
problems of lack of staff, late deliveries, availability of lifting facilities, inefficient manage-
ment, lack of information and poor integration of work are likely to occur and to look at the
impact of unexpected events on planned activities. In this way the team will own the planning
process and not have it imposed on them. The weekly meeting will also bring to light how
well team members are working together.
Feed-forward control (see the Last Planner technique discussed in Chapter 9) is crucial
because of time schedule constraints and extra unplanned resources can be costly. The impor-
tance of tackling slippage on a regular basis to bring the time schedule back into line cannot
be over-emphasised. Feed-forward has the same framework, but tries to stop slippage using
early intervention. It tries to anticipate changes before proceeding. Case study 5.7 refers to a
time schedule control system used by a major contractor.
Case study 5.7 Construction time schedule management

The project is a specialist facility for physical research. The contract is worth £80 million. The
building is circular with many specialist packages and high tolerance requirements. The pro-
gramme time is 55 weeks for the main building, though there are other phases, including an
office block and enabling works. It involves the use of many specialist package contractors.
(continued)
(continued)
Table 5.1 Hierarchy of time schedule control
Time schedule type Time schedule output

Baseline Overall report to client
Contract start and finish
12-weekly review Specialist contractor control and tactical
adjustments
6-week stage review Control and management action
Fortnightly specialist co-ordination schedule Co-ordination and work schedules
A time schedule is applied to the main project, covering all aspects of the 55-week
construction period. It is based on the production needs of the seven key packages that
provide 80 per cent of the work. This amounts to 100+ items. There are also phased
handover dates for each of the sectors. The contractor monitors this programme weekly
and provides a monthly report to the client on each item and overall progress. The mas-
ter programme is linked with the procurement programme in order to determine when
packages need to be let. Table 5.1 illustrates the programming hierarchy.
In order to break down the detail on relevant packages in progress, a 12-week rolling
programme is produced. This is adjusted to current progress and also reviewed every
six weeks. Tactically, it aims to retrieve any programme slippage from the previous
‘stage’ programme. These are also monitored and presented to the project manager for
strategic assessment of reasons for any problems.
A fortnightly programme is also produced and agreed with specialist package
contractors to show the immediate work schedules and their co-ordination with other
contractors. This provides an awareness of the interfaces and critical path of other con-
tractors as well as an opportunity for feed-forward with immediate risk and contingency
management. The weekly meeting considers two weeks ahead each time and provides
an opportunity to discuss any problems and slippage to the programme and to work out
what impact they have and how the programme may be retrieved.
Acknowledgement to the contractor
The hierarchy of control in Table 5.1 recognises the dynamic nature of time scheduling in
order to retain confidence in the programme as a control mechanism for bringing work back
onto programme where there is a slippage. The baseline time schedule is retained for end and
not intermediary control. The short-term time schedules remain realistic statements of agreed
methodologies and target dates using the latest state of progress and can therefore benefit
short-term control and feed-forward systems.
Contingency planning
Contingency means putting in activity buffers on the critical path or, in some very volatile
projects, a ‘Plan B’ for when things go differently from originally planned. Contingency plan-
ning is a way of allowing for adverse changes and generally means making time allowance
for items beyond control, e.g. encountering more rock in excavations. It helps to mitigate
delay risk in certain critical areas of the programme. However, flexible programming or risk
transfer may also be used individually or together. The approach should be specified and
the potential problems should be identified together with the reasonable precautions taken.
Mitigation through insurance is not appropriate in these areas of high risk.
Cost planning and control

Cost management aims to control the project budget that is set after the value management
process and to predict the timing of client payments to suppliers (client cash flow). Budgets
set for the design and construction stages should be monitored and kept within the cost and
cash flow limits set. The valid areas of change are design changes and client scope changes.
Again, there are two systems of control – feedback and feed-forward. At the next level down,
contractors control budgets from actual material and labour costs compared with their tender
price schedule. Contract terms limit what is called an extra, so rising costs may mean sav-
ings in other areas or the use of built-in contingencies. Longer or delayed contracts allow for
additional inflation payments.
Pre-contract cost control

Pre-contract cost control advises the client of the cost based on estimates that are inflation-
adjusted from similar past projects, Many systems are based on creating a project cost plan
with elements or cost centres, collecting cost data by monitoring actual costs and providing
a monthly feedback report to the client and then looking for ways to make savings at a later
stage where there is an overrun on a cost centre. This conforms to a feedback system and
creates problems in projects where there are relatively short activities with limited opportu-
nities to make savings within the latter part of the element or affecting the quality of other
later elements. Cost control is often applied to a specialist package as a whole. Problems are:
• Contingency sums inflate price with resultant uncontrolled extras.

• Feedback provides clear information about problems, but often too late.
• Clients are made to pay for lack of planning by project team.
Once the budget breakdown has been allocated to specialist elements, early expectations of
cost breakdowns are used to limit expenditure in these proportions. If radical value manage-
ment takes place after tender price, the cost plan may be contorted and a second stage of cost
planning is needed, which allows new information about actual prices to adjust elemental
budget allocations. Value management can become a contingency to cover error and erode
the savings gained. Table 5.2 shows two methods of cost planning.
Table 5.2 Pre-contract cost planning
Phase Process Life cycle stage

Outline cost plan Elemental cost breakdown based on outline Feasibility
specification.
Cost checks on design as developed.
Scheme cost plan Elemental cost plan based on approved design, Strategy and design
following value management process. Cost checks on
detailed design. Value engineering. Adjust cost plan
to suit tender price.
Table 5.3 Cost management during construction
Phase Process Life cycle stage

Cash flow Monthly commitment based on baseline time schedule. Detailed design
forecast Update client on contractor progress to allow for delays or Construction
getting ahead of programme. Sometimes earned value used.
Firm cost plan Based on contractor’s tender. Tender reductions if required Construction
before start. Interim valuations with controlled change
management/ adjustments. Cost value reconciliation.
Final account Contractors tender plus extra work agreed with cost specialists End of defects
(quantity surveyor – QS). liability
Final valuation of all approved work.
Construction period cost planning

During this stage a contractor has started on site with an accepted tender price. Differences
are agreed between a cost manager working for the client and contractor, respectively, and
a monthly valuation is agreed for payment. These must be reconciled in response to any
changes. These valuations guide supply chain payments. Table 5.3 shows contractor systems.
In a feed-forward system there is forward planning and warnings can be made. It predicts
areas of critical pressure by assessing the risk and focusing cost management efforts on the
20/80 Pareto principle whereby 20 per cent of the items account for 80 per cent of the cost.
A process of control stages is indicated in Tables 5.6 and 5.7, which encourages the early
prediction of cost critical areas.
From a client’s point of view those cost increases that do not produce extra value for them
are not welcome. Danger areas are:
• misreading the market tender price

• buildability problems inducing contractor delays
• poor planning creating an unpredictable cash flow
• changes made to save money for inferior products
• poor tender documentation inducing additional claims
• abortive work due to late changes or instructions
• claims due to disruption, late information or client risks.
The best approach is to anticipate problems before they occur, so that avoidant rather than
corrective action can be taken. For example, if the cladding chosen is found to cost 30 per
cent more than the scheme cost plan, the first reaction is to find a cheaper alternative to pre-
clude price escalation. If it is cost checked at the point of choice, then it may be possible to
look at a reduction in another element of the building that has less effect on the value; reduce
the amount of cladding; or re-orientate the building to make a cheaper cladding possible.
Case study 5.8 gives an example of disastrous cost control.
Case study 5.8 Cost control or disaster

The refurbishment of some 1970s high rise flats in London may have involved use
of cheaper cladding choices to comply with budget limitations. Several of these flats
have experienced fire spreading from floor to floor, with disastrous consequences for
evacuation. The design principles and the cost control systems have hidden impacts
on each other. Feed-forward may have allowed the stakeholders, including the users,
to have a say.
An integrated feed-forward approach allows for a value decision based on all cli-
ent objectives and not just cost. For example, alternative cladding may result in greater
energy loss, cost more to fit, wear out sooner, delay the contract or be less environmen-
tally acceptable. Cuts in other areas may cause equal problems, in which case the budget
may need to be exceeded or some leeway on completion time may be negotiated to help
to reduce costs.
Cost control measures used by contractors

A number of cost control measures may be used by the contractor, which break down into
systems based on budget reconciliation and systems based on cumulative cost compared with
cumulative earned value.
1 Measures to control budget levels in cost planning. Typical feedback systems are:
•• Cost–value reconciliation based on the monthly or stage valuations process, which
measures the level of spend with the value of the items priced in tender. These are
reconciled with any variations. Often used for valuations, as in Table 5.3. In the
UK, the BOQ can be used.
•• Cost centre control, which is a more sophisticated system and allocates all expendi-
ture to a cost breakdown by activity, for example a subcontract package or trade and
may also break down into elements such as labour, material and overheads. This
needs a baseline cost plan to make comparisons.
2 Cash flow that measures the scheduled value for all costs showing this as a:
•• Monthly or cumulative cost curve of scheduled value against time, as in Figure 5.11,
with a curve for the actual value earned according to the project valuations. This is often
called earned value. In an ideal world this would be the same as the scheduled value
but it assumes exact compliance with programme on time and in sequence. This control
looks forward on the basis of past performance to give a prediction of final cost, which
is just a guide.
•• Reconciled actual expenditure curve, which discounts expenditure not yet valued
(prepayments and retention) or value gained not yet paid for (accruals). This then
makes it fully comparable with the valuation figures and should differ by the margin
expected on the project.
Figure 5.11 is a graphical representation of what a client pays the contractor monthly
shown by the vertical black lines under the dotted curve. These have been cumulated to give
the cumulative earned value ‘S’curve and compared with the cumulative actual costs of the
contractor in the black solid line with square dots. The contractor is currently making a small
profit (earned value – cost).
25
Time now
Forecast value
20
S curve
Cumulative
earned value
15
£m
Cumulative
10 actual cost
Monthly client
Profit payments
5 Monthly
cost plan
0
Nov Feb May Aug Nov
Figure 5.11 Earned value cash flow chart from contractor’s viewpoint
There are two forms of feedback, which can also lead to a feed-forward prediction based
on the current rate of spend:
1 Cost slippage, which measures the difference between actual expenditure and actual
value. This indicates whether the margin is currently being achieved if gross figures
(including retention and any other valuation deductibles are included) are used.
actual value
The cost performance index ( CPI ) = × 100%
actual costst
For example, if the actual value is £2.5 million and the actual cost is £2.2 million and the
margin to be achieved is 10 per cent, then we have
7.5
CPI = × 100% = 110.2% = 10.2% profit
6.8
Therefore, the margin required is being exceeded at the current rate of remuneration. All vari-
ations need to be properly reconciled with the scheduled amounts.
2 Time schedule slippage measures the difference between scheduled value and actual
value, indicating whether the project is running behind or in front according to the
expenditure. This is quite a coarse form of control as cost is not directly connected to
unit production. However, it is a leading indicator and a tool for prediction of comple-
tion at current rate of spend. The schedule performance indicator (SPI) is the scheduled
value/actual value. The formula for calculating time taken at the rate indicated by the
spending rate is
Predicted time period = (scheduled value/actual value) × total scheduled time.
For example, if the actual value on month 7 is £7.5 million and the schedule value is noted
as £7.1 million (not shown on Figure 5.11, but will be above the S curve if there is schedule
loss) and total scheduled time is 60 weeks, then we have:
7.5
Predicted time = × 60 = 63.4 weeks
7.1
Therefore, the project is predicted to be 3.4 weeks behind schedule if the spend rate contin-
ues as it is. This is related to the contractor’s account but may provide useful information
for the client.
“Economic value added (EVA)” is just an indicator of a problem but gives no idea of
cause and changes needing to be reconciled. If extras are added, then baseline and actual
value will show a step change.
Reporting systems to control costs for the client

Cost reporting is needed for interim payment and budget control of extras and variations. The
four stages of cost reporting are:
• design development cost checking in the project definition stage

• confirmation of commercial price and budget when tenders arrive
• cash flow control measures during the construction phase for finance release
• stage or monthly value–budget reconciliation, including variations for payment.
The client’s budget is not finite and any movements need to be planned and managed. At least
80 per cent of the costs are decided in the design development stage so this becomes a critical
stage to control. The tender or market price is the first ‘real cost’ and must be reconciled to
existing forecasts.
In the case of the client, cash flow management is critical. They need to know dates for
financial commitments so funds are made available to pay. Sudden changes in work sequence
that speed up payments need to be agreed and signalled early to allow arrangements to be
made. It is likely that the inexperienced client in particular will latch on to early estimates of
cost and will find it much harder to adjust to the pattern of payment to meet early procure-
ment of equipment and materials. Clients may also wish to make minor variations or changes
in scope to manage their budget during construction and to respond to changes in external
factors that will change the early cost estimates. According to the CIOB Code of Practice,12
cost reporting systems need to regularly provide:
• the established project cost to date

• the anticipated final cost of the project, which should be fixed within reason
• the future cash flow and any risk of expanding costs
• any potential savings or financial extras.
The last three fit in with the idea of feed-forward and provide room for proper budget reor-
dering so that the final cost is contained. Reporting needs to deal with the last date on which
Variations in Project value,

design/scope including site
variations
Client cash
Predicted
flow budget
cost Client
commitment
Client
Freeze Develop payments to
brief design contractor
Develop
design
Fix value
and invoice
Time
Figure 5.12 Connection between client cash flow forecast, budget, commitment and payment
clients can change their minds (commitment) and approximately how much they need to
have each month to pay the bills. They will also know financial implications of any scope
changes, prior to making commitment.
Figure 5.12 indicates the typical cumulative cash flow and the progressive nature of the
client’s commitment. Costs will change but may be managed to create savings to cover esca-
lation, so that the final budget is unaffected. The client is bound to approved design payments
on commitment.
Summary of cost control

Feedback cost control systems are best for interim and final payments. However, if they are
used for budget control, they need to react quickly to give the client information so that they
are able to make decisions on the basis of cost; feed-forward systems are thus better. New
engineering contracts have a compensation event warning system that triggers a cost estimate
for change for approval before go ahead.
The principles for budget and cash flow control are:
• Spend time at the feasibility and design stages on identifying risks to costs, so specific
rather than general contingency planning is possible, for example ground investigation
to reveal rock.
• Contain design inflation in a value for money (VFM) framework (see Chapter 10).
• Assign design and construction risk to one co-ordinating party, if possible.
• Work together to give accurate advance costing information for any changes to the budget,
so decisions are made on the basis of knowledge of expenditure and shared savings.
• Only transfer risk to contractor to cover risk they are used to managing or they will be
budgeted expensively.
• Get reliable information on the distribution of the payment cash flow schedule so that
funding is easily available.
• Consider life cycle costing, if possible, to factor in reduced operational costs for value
management.
Where contractor accounts are made transparent to the client, as in partnering, then infor-
mation about costs and profit are easily available and ‘What if?’ change scenarios can be
calculated together. Close collaboration is needed to be maintain awareness of commitment
dates. Procurement and contract types should take account of the degree of flexibility that is
required by the client. The FIDIC contracts cover a range of different scenarios with standard
conditions depending on the amount of risk transfer to the contractor and involvement of the
client from traditional employer design to contractor design, build and operate (see Chapter 4).
Quality planning and control

Quality is ‘in the eye of the beholder’ depending on their perspective as a stakeholder.
A tradesperson thinks of work that is complying with best practice; a user will be con-
cerned that things work effectively and feel good; an investor will think in terms of value
for money; an architect sees an attractive design that is also functional. Maylor13 distin-
guishes between conformance and performance planning. This may be described as the
difference between quality assurance (QA) and quality improvement (QI). In practice, this
means defining an effective system that is transparently achieved by sufficient checks and
balances without suffocating the service or the delivery. An effective system is much harder
to achieve and requires a consideration of the expectations and perceptions of the customer
and other stakeholders. In bespoke construction projects, this should lead to a dedicated
system adaptation using the project constraints and client requirements, making the sys-
tem dynamic. Quality systems are discussed in detail in Chapter 14 and lean systems that
improve quality in Chapter 9.
A bureaucratic QA system that is inflexible is, at the very least, frustrating and, at worst,
harmful to the efforts of project staff operating within it. Accountability should be assigned at
operational levels for conformity and at project director level for effectiveness. This will be
achieved better on larger projects by using a responsibility matrix that identifies all members
of the delivery team and makes them responsible for the standard of specific tasks. This is
co-ordinated so that workflow is perfected and no job is overlapped or left uncovered. Trade
interfaces are generally resolved by trade-to-trade handovers and understanding each other’s
work. Strategic inputs by management establish good practice and manage scheduling, poor
work, damage, incomplete previous work and conflict.
Quality also needs to be associated with specific customer requirements so that the com-
missioning and testing of the building is fully integrated with various design elements,
ensuring that the finished building is fit for purpose, all systems work and other actions to
control time and cost do not interfere. This is not a static compliance with customer spec-
ifications, but a proactive process in checking that the specification that is being quality
assured fulfils requirements. This might mean questioning durability or suitability. Too often
buildings are failing because requirements are not tested or interpreted fully or poor work
is covered over. The strategy for defining and controlling quality is integration of packages
and maintenance of a close relationship with the client. Stakeholders should be managed in
accordance with their influence and power and users should not be ignored. Quality starts
with defining the brief properly to develop VFM fit for purpose. This leads to three areas of
control and definition, which need to be brought together:
• Awareness of user and external stakeholder expectations based on performance. Perfor

mance levels such as noise levels, aesthetics and operability should be communicated.
• Managing of the project team who arbitrate technical excellence versus expense.
• Satisfying the client who pays for the work and balances the business case, but also subjec-
tive perceptions tied to attractiveness, the right degree of reliability and past experience.
Figure 5.13 makes clear the relationship between quality systems and meeting customer
requirements. It is clear that a range of quality outcomes is possible and, if perceptions are
equal to expectations, satisfaction will result. Maister’s14 law states:
Satisfaction = perception – expectation.
As a minimum, this equation should balance. If there is a negative difference between

perception and expectation, then dissatisfaction will result. If the difference is positive, the
outcome will be customer delight. The promises that are made in terms of how and when
(service) are also strongly related to satisfaction. A customer may well be happy with a
longer contract time or a later start onsite if what is delivered is not later than advised. One
of the problems with competitive tendering is that it often promises more than is delivered
resulting not only in claims but also dissatisfaction. This is a lose–lose or win–lose situation
for contractor or client.
Benchmarking is used as a way of maintaining and improving quality. Key performance
indicators (KPIs) have been developed within organisations in order to measure, objectively
if possible, the level of quality achieved. They are more easily measured where long-term
partnerships exist and set uniform parameters. Clients like the use of third-party accredita-
tion, such as ISO 9002 and the National House Building Council Buildmark.16 They relate to
these more easily and the industry needs to consider their use accordingly (see Chapter 14).
One KPI that tests this is customer satisfaction feedback and QI should be a key contractor
aim, however good they are, because it is efficient. Clients need to tender on the basis of
quality and cost.
A quality plan is likely to list various means for ensuring quality. It describes the process
used for quality assurance, e.g. ISO 9002, activities and processes, the relevant specifications
and standards to be used, the roles of those responsible for quality control and inspection,
materials testing and procedures for dealing with defects and failures. It must also incorpo-
rate the client’s requirements and expectations. At the next layer it needs to integrate the
supplier quality policies and practices.
Performance Delight
Project systems
CUSTOMER constraints (effectiveness)
EXPECTATION
Product Project quality Product quality

specifications** definition Satisfaction
delivery
Service
agreements** Customer/
Conformance
stakeholder
systems
(efficiency) Dissatisfaction
Figure 5.13 Quality planning and delivery15

Note: *Product is in conformance with measurable specifications. **Service is defined as based on stakeholders’
expectations and perceptions.
Project management information systems (PMISs)
Information may be manual or digitised. All PMISs will need to address the following three
aspects of information effectively:
• transaction analysis, such as progress reports on programme and budget updates

• decision support, such as related to risk and value management
• integrated information from different sources to provide executive reporting.
Building information modelling (BIM) is the most advanced form of integrated information
system. It requires a lead-in period to make sure that systems and databases can be properly
populated and integrated. Non-digitised PMISs, however, need to do the same job on simpler
projects and provide a central hub for the timely collection, collation and efficient commu-
nication of information to those who need to receive it. Information management supports
transactions and decision making. Decisions may be programmed or non-routine and may be
required at strategic, tactical and operational levels of management. Information is specific
but starts with processing raw data into a management information database that supports
common decisions. Figure 5.14 shows a basic model.
A database is a collection of structured data. The structure of the data is independent of
any particular application.18 A database management system may draw on organisational
and/or external databases. It integrates the different sources and structures data in the format
required to produce the outputs needed by the organisation. Information needs to be timely
and appropriate for use in either transaction processing or decision support.
A transaction process is routine, such as the financial accounting process to record pay-
ments and receipts and to present final accounts. Management accounting, on the other hand,
needs budget information to make strategic decisions about investments and project selec-
tion. So, for an invoice to be paid for bricks, an accounting department needs to receive it,
but only after deliveries and quality are checked and signed off. An agreed payment period
needs to be fair.
Uses
Type of decision support
End user system Environmental scanning
Strategic Executive information system (EIS)
Control and monitoring

Tactical End user system
Decision support system (DSS)
Control and monitoring
Operational End user system Exception reporting
Programmed decision making
Transaction processing Ad hoc enquiries, e.g. invoice
Organisational External
Database management systems Basic statistics
databases database
Figure 5.14 Hierarchy of PMISs in relation to the database management system

Source: Adapted from Lucey (1991).17
Operational systems are still routine but need to gather information together from many
sources and can be automated with the right programming. Examples are:
• For delivering air-conditioning a contractor needs a specification document, inspection

and testing certificates, sign off, warranty and safety documentation and handling and
maintenance instructions to be handed over to the client with the health and safety file.
• For designing a staircase, a file on building codes including fire, safety and space require-
ments, material alternatives, cost and structural loading has to be integrated to ensure
compliance and fitness for purpose and compiled with and approved by the client.
• For making a decision on a new product, delivery lead-in time, cost, compliance, dura-
bility, testing and fire certification need to be seen to be compliant and compared with
other products to ensure VFM and reduce risk.
Decision support systems (DSSs) are in place to support rather than make tactical or
strategic decisions. In the case of projects, DSSs are a key requirement and because of
the temporary nature of projects needs to feed-back quickly or preferably feed-forward
to be effective for decision making. An example of a tactical DSS relevant to projects
would be an update showing the progress of critical activities. This would pinpoint where
resources are needed most critically to pull the project back on target. An example of a
strategic decision would be an investigation into rising quality defects that have had an
effect on marketing.
Certain questions are relevant in the design of DSS, such as: what type of decision is
needed; does it relate to the long or short term; how long have you got to make the decision;
how is it integrated with those of other decision-makers? These questions can be applied for
the process of setting-up project management information systems (PMISs) that are unique
to the project type.
Executive information systems (EISs) provide selected summary information for the direc-
tor level. In the project context these need to be standardised across projects for comparison.
Key features should be easy to use, provide rapid access to the data that feeds into the report,
provide data analysis – trend and ratio calculations and a quality presentation – that is inter-
esting and understandable, for example use of graphs and colour.
In the case of programme management (multiple projects), the project manager needs to
provide data to the client in a consistent format that is suitable for them in terms of monitor-
ing their business plan and other projects. For example, if a change has been requested in
the scope of works, then the effect of this change could be worked out by the client in terms
relevant to their own EIS, prior to approval. Issues such as client commitment, cash flow,
market considerations and production targets may or may not override extra cost.
Table 5.4 shows a simplistic structure for a PMIS.
Table 5.4 PMIS matrix
Project Functional database

databases
Cost Time Quality Health and safety
Project 1 Price per bed m /hr
3
Accidents/100,000 workers
Project 2 Price per desk m2/hour
Project 3 Price per m2 ± 3mm
Building information modelling (BIM), together with its digital acceptance of the out-
puts of other technologies, has now reached a certain level of acceptance and mandatory
thresholds for integration are being trialled and used to lever new capacities for design and
construction. Better control and capacity is anticipated when the outputs become credible
and the project information system can be made accessible to all subcontractors and design
staff. In particular, the interfaces between specialist consultant firms need to talk to each
other or assume leadership in delivering the product for the use of the whole team. This
means that design and build contractors or projects that can pay for a tailored project platform
demonstrate the most clout in the integration of BIM systems. Small contractors can then par-
ticipate, but a learning curve in terms of using the model effectively needs to be incorporated
for each set of project protocols. Legal contracts need to deal with copyright issues where
multiple disciplines sink their ‘trade secrets’ into a single model. In essence, it is about a new
attitude of open access where non-technical differentiation is marketed. Digital construction
is covered in Chapter 13.
Project information is often digitised to create a web-based database and distribution
called an extranet or ‘cloud’. This provides access to all project information on a controlled
basis to all internet-connected users. There are many commercial templates for extranets or
cloud data exchange, some of which are customised for construction-type information. Many
users will want to do their own customisation to suit the nature of the project and will create
protocols for access. The co-ordinating user will receive and upload information, or in some
cases cloud applications, and add-ons can be tailored to synchronise separate uploads. All
can access and add review information. Mobility is a key issue for use onsite and some appli-
cations are being prepared for smart phones which allow them to utilise virtual reality direct
onsite by downloading the BIM model. One app uses project information and a GPS module
that allows users to ‘see’ through walls by producing visual images of services behind the
walls as the smart phone is in location. This app could be used for future maintenance or for
quality checks. Case study 5.9 is an example of using outdated technology.
Case study 5.9 Example extranet protocol

A services drawing may be uploaded by the consultant that is relevant to the subcon-
tractor. The architect will see it to make sure there are no clashes of services within
the fabric and the structural engineer will be able to see other drawings that are in the
ground or pass through structures, such as walls and floors, to approve routes. The
main contractor/project manager will see it to formally accept it and issue it in agreed
form to relevant parties. Responses to such drawings may be cost- and time-related if
they represent a change to the specification or the scope or are later than requested.
Revisions need to be noted on the drawing. The architect will have a central role in
ensuring it meets the requirements of the client. Information is managed so that spe-
cialist subcontractors will not see drawings unless their content affects their work, thus
avoiding information overload.
Chapter 13 is devoted to BIM because of its increasing importance. Many countries are
now requiring this type of system to be used on public projects.
Communication plan
The communication of information is sensitive to the type of audience and the type of mes-
sage, such as drawings, documents and spoken, digitally-screened or projected information.
Integrated project systems such as BIM will involve a learning curve and suit the more
technically proficient. Reading from the screen is becoming more expected in the days of
paper-saving and as technology improves. Other digitised information can be communicated
live to the point of assembly and used with greater effectiveness. The huge amounts of this
type of information need to target and alert only those who need it, to prevent information
overload and distraction. Decisions are based on competent selection of relevant information.
Motivational communication is usually face to face.
A communication plan identifies the regular forms of communication that most effec-
tively target internal (project team or client) or external stakeholders. Sensitive projects need
sensitive forms of communication. Meetings are fundamental to equality of information,
but they are time-consuming so core teams could organise conference calls or use Facetime.
Information can be disseminated to others in short sharp phases or short specialist meetings.
Only the core team needs the overall picture. Meetings allow discussion and the development
of creative solutions. Integrated digital information needs to be updated in a way that alerts
others to knock-on implications. Reports need to be paraphrased with executive summaries.
Table 5.5 shows some aspects of a communication plan.
Advantages of the system are synchronised receipt of information for checking and
action and the tracking of approvals. The final set of approved drawings needs to be clear by
making them the only ones available. The integration of these drawings with others would
Table 5.5 Communication plan
Deliverable Description (Why?) Media Frequency Responsible persons

Cost and cash To give client update EIS Excel sheet Monthly QS to client and
flow report on budget and digital project manager
variations
Subcontractor To review fortnightly DSS on site Daily Section manager
co-ordination progress Last PlannerR and all relevant
and identify methodology subcontractor
upcoming supervisors
problems
Site procurement To review design DSS formal meeting Fortnightly Package managers,
meeting and integration of with minutes and project manager
packages actions and architects
Site and design Review health DSS informal Weekly Site reps, project
safety and safety meeting but manager, QS,
incidents and with notes to section managers
investigations; motivate those and supervisors,
rewards and responsible for design
disciplinary action improvements co-ordinator,
architect
Site meeting Review design, EIS and DSS formal Monthly All + client
progress, site meeting
activities
Design review Change orders DSS architect’s Fortnightly or All + client
confirmed instruction as needed
benefit from private meetings or restricted viewing whereby major concept issues are to be
resolved by primary parties.
Typical information that is stored, as well as drawings, are change orders, quotations, valuations
and cost control reports, time schedules (programmes), health and safety files and maintenance
manuals, risk assessments and registers, incident reports, purchase and stock control, invoices,
meeting minutes and action plans, short-term and Gantt charts, critical path diagrams, quality
plans, earned value analysis, progress reports and anything else that can be scanned or digitised.
The potential to save paper depends on the size of drawings/documents – it must be pos-
sible to read them comfortably on screen – and how many are required in hard copy on site.
Mobile devices may be used to store and check information that is not a drawing or part of a
drawing at the workface. Pictures and 3D/4D portrayal may be vital to better understanding
and are best viewed on a laptop. Responses to queries are easier and quicker and may reduce
delays and increase productivity/quality. Fast and reliable delivery of information depends
on user confidence. Users need to be able to access information in pdf format or hard copy.
Socio-technical systems are a way of combining the technical hard data of production
outputs with the soft data of relationships and experience. Soft data includes the expectations,
aspirations and value systems of the organisation’s workforce. Speedy response to queries
drives confidence. Face-to-face toolbox talks and supervision are still needed for the work-
face and supervision team to build trust and motivate action. Professional teams may also
build trust through regular face-to-face meetings and visits. Social media platforms provide
opportunities to access instant information (see Chapter 13).
Expert systems, sometimes known as knowledge-based systems (KBSs), are computer-based
systems designed for making more complex decisions more accessible to non-experts. DSSs
may use computer algorithms to interrogate the user using a KBS and thereby become expert
systems. They consist of a knowledge base and an inference engine to apply ‘if–then’ deci-
sions to the data. They are built up by rationalising the steps made by an expert (reflected in
cumulative questions). They take the non-expert through the decision structure based on the
answers given. They can build in ‘what if?’ scenarios as well as provide instant sensitivity
analysis. Solutions are derived by linking with a database, e.g. estimating price book. The user
is not surrendering their judgement but, rather, is using the system to enhance judgement and
improve decision making. Today, expert systems tend to be called ‘rule engines’ and are incor-
porated into wider systems. BIM would qualify as a wider system, which incorporates some rule
engines and is often incorporated in AI software. However, for non-experts the original concept
is useful as a way of accessing parts of a complex project. Case study 5.10 gives an example
of an accessible KBS that gives a basis for pre-contract estimates when little detail is known.
Case study 5.10 An expert system for project cost

This type of expert system interacts with the user to determine project cost and works
through maintaining a knowledge database. It will calculate average cost using the follow-
ing inputs: geographical and relational location of the project, the floor area, the quality of
the finished building, the degree of external works, the nature of the building use, the type
of design, the location and the structural form and the programme time available, if critical.
The expert system then assesses an updated database of costs, such as the Building
Cost Information Service (BCIS),19 in order to provide a range of current construction
(continued)
(continued)
prices. It automatically adds statutory and professional fees and allows a land price to
be added to give total project estimates for that location, building type and size, etc.
A report is generated outlining constraints, an elemental cost breakdown and uncertain-
ties in particular circumstances.
The expert system is not an econometric model so depends on the significance of
current and updated projects in the database for accuracy. A further sensitivity analysis
might be necessary to determine the effects of interest rate changes, inflation, local fac-
tors and non-standard specifications. It does not take direct account of market supply
and demand, which might affect the competitiveness of tender prices or the procure-
ment system used, but an allowance can be made. The tenders may also be adjusted
manually for soft factors such as maintaining client bases, partnership agreements,
client preferences and prestige. These soft factors can be arrived at in discussion with a
professional. Grant regimes and tax breaks may be fed into this type of database if they
are locational, but not if they are negotiated.
Conclusion
Project planning and control is critical at all stages of the project life cycle. Typically, there is a
lot of uncertainty even after feasibility studies are complete and the overlapping planning stage
identifies, prioritises and allocates risk where it can be best managed. Further information on
evaluating and responding to risk and optimising value systems is provided in Chapter 10.
The master plan typically outlines organisational and work breakdown so that respon-
sibilities are clear. It will include a time schedule, a cost plan, a quality plan and a risk
identification and allocation that provide frameworks to optimise the client objectives and
recognises the project constraints.
Taking external factors into account is vital to project success so it is wise to build flex-
ibility and contingency factors in to cost and time schedules. Sometimes professionals have
been criticised for their reluctance to give advice that might seem unpopular, so that clients
are unprepared for steep price rises which exceed budgets and cause expensive late changes,
even though these changes might have been anticipated.
Cost planning needs to take into account the results of an ongoing value exercise to suit the
iterative nature of the design and then must be applied during the construction stage to control
the budgets. The initial outline cost plan budget becomes an important marker for the client.
Market, design and client changes are not seen as reasons for expanding the budget, which
means that value has to be generated and design changes made to still meet client objectives.
A strategy for managing time schedules at this strategic level of detail is more dependent
on reaching critical milestones than it is on calculating durations, and the planning needs to
be iterative and flexible to allow for this. A strategic view at this stage involves being aware
of the linkages between the design, construction, procurement, commissioning and client fit-
out stages. In a climate of ‘time is money’, the work breakdown structure helps to organise
the time schedule in complex projects.
The quality planning process is a strategy for meeting the client’s requirements and expec-
tations and should address service quality as well as product quality if perceptions are not to
fall short of expectations. This is best achieved by maintaining close relationships with the
client throughout the value management process. The quality improvement process has a
role to play in creating a positive culture (see Chapter 14) and also in the organisation of the
project, where lessons are continuously being learnt and simultaneously applied.
A project management information system (PMIS) needs to be integrated across the sup-
ply team, capturing information and keeping the client informed in a format that integrates
with their own reporting and monitoring systems for asset management and the business.
A developing issue in the construction industry is the use of BIM and document distribution
systems so that information can be received electronically and simultaneously in order to
integrate design and construction approaches. This approach helps to change the culture of
fragmented information systems that provide separate reports to the project team and client.
The transparent sharing of project accounts with the client is becoming part of the partner-
ing culture. BIM is discussed in Chapter 13 because of its potential to change approaches to
construction, together with other emerging technologies.
The setting up of structures that promote team work and the integration of project
packages is discussed in Chapter 6 and 7.
Notes
1 Burke R. (2013) Project Management: Planning and Control Techniques. 5th edn. Chichester,
Wiley, p. 32.
2 Project Management Institute (PMI) (2013) A Guide to the Project Management Body of Knowledge.
5th edn. Newtown Square, PA, PMI.
3 Reiss G. (1997). Project Management Demystified. 2nd edn. Abingdon, Routledge.
5 PMI (2012).
6 International Standards Organization (2003) 10006:2003 Quality Management Systems – Guidelines
for Quality Management in Projects. Available online: https://www.iso.org/standard/36643.html
7 Note that the British government OGC Gateway process is now archived because that office has
closed. However, it is still referenced for British public buildings identifying the project management
activities at each phase (gateway) of a complex project. See http://webarchive.nationalarchives.gov.
uk/20100503135839/http://www.ogc.gov.uk/what_is_ogc_gateway_review.asp. Associated guides
on risk, value, procurement and whole-life costing are available too in the Achieving Excellence
guides; see http://webarchive.nationalarchives.gov.uk/20100503135839/http://www.ogc.gov.uk/
ppm_documents_construction.asp.
8 PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It
describes the elements of the external environment that will have an impact on the project, gener-
ally called an environmental scan. This was first mentioned in Chapter 3.
9 Smith N. J. (ed.) (2008) Engineering Project Management. 3rd edn. Oxford, Blackwell Science, pp. 40–42.
10 Edwards L. (1995). Practical Risk Management for the Construction Industry. London, Thomas Telford.
11 McGregor D. (1960) The Human Side of Enterprise. New York, McGraw-Hill.
Construction and Development. 5th edn. Chichester, Wiley-Blackwell.
13 Maylor H. (2010) Project Management. 4th edn. Cambridge, Pearson Education p. 199.
14 Maister D. H. (1993). Managing the Professional Service Firm. New York, Free Press.
15 Based on Maylor H. (2003) Project Management. 3rd edn. Harlow, Financial Times/Prentice Hall, p. 167.
16 National House Building Council (2017) Buildmark: Warranty Agreement for New and Converted
Homes. Available online at: http://nhbccampaigns.co.uk/landingpages/homeowners2017/assets/
pdf/policy-documents/aq-policy-document.pdf (accessed 27 August 2018).
17 Lucey T. (1991) Management Information Systems. London, DP Publications, p. 264.
18 British Computer Society, Kingston, UK.
19 The Building Cost Information Service (BCIS) is a database of historical tender costs maintained
by the Royal Institution of Chartered Surveyors. Data is submitted by members. It is categorised
into different types of building, and location and complexity, all of which can be interrogated or
adjustments made, e.g. similar buildings in London can be used but adjusted to local cost and qual-
ity. For further information, see https://www.rics.org/uk/products/data-products/bcis-construction.
Appendix: the critical path method (CPM)
This appendix looks at the networks used to determine the logic of time scheduling. It assumes
a familiarity with Gantt (bar) charts, which show activities as bars against a horizontal time
scale. Figure A5.1 indicates a five-day activity starting at the beginning of day 1 and finishing
at the end of day 5. Figure A5.2 shows a two-day activity that starts at the beginning of day 6
and finishes at the end of day 7.
An activity on a Gantt chart does not indicate a logical relationship between activities – it is
only assumed to be linked to other activities when they have a finishing point that coincides with
the starting point of a successor. Such a presumption is imprecise and activities may be con-
nected logically to more than one activity by using a linked bar chart, as shown in Figure A5.2.
On complex projects where this is the case, a proper indication of logical links may be
drawn using the critical path method. There are two main formats: the arrow network and the
precedence diagram. The former is sometimes called activity on arrow because the arrow is
the activity and the node is a point in time. The latter is called activity on node because the
activity is the node and activities are shown linked by the arrow. Neither has a timescale. The
main types of links are:
• An activity starts immediately after the predecessor finishes, e.g. formwork to a beam
followed by reinforcement.
• An activity starts after a time lag, e.g. a long trench excavation takes a few days but
drains are laid from the following day.
• An activity can start at the same time as another starts, e.g. when the foundation is fin-
ished the floor slab formwork and the brick work can start.
• An activity can finish at the same time or at a time lag following the finish of another,
e.g. the pipe above can only finish and be tested after the trench has been excavated.
Critical path method precedence diagrams

This is a network for linking activities together logically in sequence, analysing the combined
durations of the activities and identifying activities with critical time or resource constraints.
Several definitions are useful for precedence diagrams.
Day 1 Day 3 Day 5 Day 7

Activity A
Figure A5.1 Gantt chart activity
Day 1 Day 3 Day 5 Day 7

Link
Activity A
Activity B
Figure A5.2 Two Gantt chart activities with a logical link

Activity
Figure A5.3 Precedence activity: activity on node
Link
Activity A Activity B
Means Activity A must be finished before Activity B starts
Figure A5.4 Links between activities
5 days
Activity A Activity A
Activity B Activity B
5 days
Means Activity B can start 5 days after Means Activity B cannot finish until 5 days
Activity A starts after ActivityA has finished
Figure A5.5 A precedence: (a) lead link and (b) lag link
Activity refers to an operation or task carried out using a resource and having a duration.
In the precedent method, an activity is represented by a box. These may be broken down into
sub-activities for more detailed planning. See Figure A5.3.
An event is a point in time (no duration) that will mark the beginning or end of an activity.
A link is a line joining activities together to make a logical sequence from left to right. The
link is based on a finish or start relationship and may include a lead or lag link. See Figures A5.4
and A5.5.
This technique can be used to build up a complete map for the logical sequence of various
activities. More than one activity can be dependent on another; for example, a concrete beam
can depend on the completion of reinforcement and formwork. One activity can also allow
two or more to start.
The critical path is the longest path through the network, which joins the longest activities
together. See Figure A5.6.
Activity B
6 days
Activity A Activity D
9 days 7 days
Activity C
5 days
Figure A5.6 Critical path A–B–D

Here, the longest route through the net is 9 + 6 + 7 = 22 days, which means that A–B–D is
calculated as the critical path and that C can start one day later without affecting the end date.
The resources used in CPM are labour, plant, materials and cash, e.g. activity A could be
the ground floor walls and have a resource of five bricklayers; if the total cost of the labour
plant and materials is £10,000, then this is also a cash (lump) resource. If there are other
activities with the same resource, which have to be carried out at the same time, then the
resources are added together to give a total resource. It is much better to float activities with
the same resource so that they do not overlap. The following definitions apply:
• Total float is applied to an activity or a milestone date and represents the flexibility to
start an activity later without affecting the longest critical route through the project,
i.e. C has a one-day float in Figure A5.6 because A–C–D is a shorter route than the criti-
cal path, by one day.
• A critical activity is one that has no total float, i.e. activities A, B and D.
• Free float represents the flexibility to start an activity later without affecting any other
activity. This is much rarer as it only occurs where an activity is dependent on more than
one activity. In this case, C also has one day of free float.
• Negative float is the period in which a critical activity (or an activity that has been made
critical) has been delayed. The effect is to lengthen the longest critical route through the
project, unless corrective action is taken, e.g. if activity C was delayed by two days it
would become supercritical by one day.
• A supercritical activity is a way of describing an activity with negative float. The only
way to avoid delaying the whole project is to reduce the time taken by a supercritical
activity by using more resources. It is no good using more resources on another route.
Conclusion
Critical path programming is one of several time-scheduling techniques. It is also a good idea
to undertake a resource-loading check in order to calculate that durations of critical activities
have not been compressed to require too many resources for efficient organisation and to
make sure there is a smoothing of resources in the programme. Resource smoothing refers to
not acutely peaking or gapping resources so that resources have to leave site for short periods
of time or flood the site to achieve the desired target. This variation is not efficient and spe-
cialist contractors need to be in on both the resource planning of numbers of people available
and the managing of any peaks and troughs.
6 Design management and value
What? This chapter will investigate the design and value management process and the role
of any professional in the management of the design stage of the project. This will clearly
be of interest to architects and engineers as well as contractors and clients. The objectives of
this chapter are to:
• Model the design process and demonstrate the challenges of improving its efficiency,
including prefabrication and standardisation
• identify client value and its incorporation into the briefing and design concept
• enhance integration between design and construction in the supply chain
• look at the process of design change and scheduling
• examine the impact of information technologies on the integration of the project team
• look at the advantages and pitfalls of building information modelling (BIM) to design
development and integration
• understand the importance of urban design in design quality, sustainability and manag-
ing project stakeholders.
Why? The poor integration of design with construction has often resulted in conflict and
poor communication at a cost to the client. There is thus a need for greater involvement of the
client and the integration of designers and construction managers. Building information mod-
elling (BIM) is not a panacea for integration, but it does bring an imperative to align method,
cost and time scheduling together with the job of design development. Society has also claimed
a larger stake in the impact of new buildings on the space and neighbourhoods around them,
promoting greener buildings and cities. Other digitisation potential is discussed in Chapter 13.
How? The design management process is discussed in the micro-context of client needs
and values and the macro-context of its location. Managing design is iterative, dynamic and
developmental to create value effectively. There is a wider approach to stakeholders who
should be integrated and managed fairly throughout both the project and operational stages.
Nature of design
Caplan defined building design in three dimensions: physical, how building interfaces define
space; sensible, how building interfaces afford experiences for people; and operative, how
building interfaces create environmental interactions.1 Hirano2 defines it more dynamically:
The learning creative-developmental process can be represented as a spiral. Viewed

from the top, a spiral is a moving circle constantly expanding in scope. Viewed from
the side upward movement is evident . . . the addition of experience and understanding.
Design is an iterative process, with the designer producing a working solution that is tested
and improved or redesigned for further review as greater mutual understanding is achieved –
the ‘spiral’ effect of the process shown in Figure 6.1. This could be related to the traditional
stages of the Royal Institute of British Architects (RIBA) plan of work3 or stages in the deep-
ening detail of the life cycle progression.
The role of value analysis illustrated in Figure 6.1 brings together client and designer as a
developmental process and is a vital part of ensuring design meets need without excess at an
early stage and as implemented in the final building. It may be formal (outside facilitator) or
informal (design review with client).
Several related parts of the design could be being developed in parallel subsequent to the
concept design, such as building structure and envelope, building ventilation, heating, cool-
ing, daylighting, power and environmental performance. These will impact on each other
and thus need to be co-ordinated. In addition, constraints such as planning, statutory require-
ments and regulatory control relating to fire, building control and health and safety must be
addressed. In building projects these are specific to location and context.
Alternative design solutions may have been identified post concept design stage due to
location and access, sustainability options and budget. This method of design is called option
appraisal and the choice will be based on client business needs and values as well as effi-
ciency. The two methods are compared in Figure 6.2.
Upward movement
Stage three, etc

Value analysis 2
Stage two, etc Expanding in scope
Value analysis 1
Stage one design
Figure 6.1 Iterative design process
Iterative method Option appraisal

Put idea up for test/criticism Interpretation
Test until it proves unsuitable or dominates Generation of alternatives
Develop final solution (scheme design) Comparison
Develop final solution (scheme design)
Figure 6.2 Comparison of design development methods

Design management and value 145
Given Maguire4 suggests that design emerges from three inputs: the designer, the problem
as iven (brief) and the data about the problem. He admits that not all available data is found
or used, however, and also indicates that there are constraints represented by the site and the
budget/time given.
Integrated design
Gray et al.5 discuss the difference between craft-based construction, using traditional mate-
rials, and engineered technology, with its tighter quality and fit requirements. Traditional
house design is well understood by those who build such houses; however, the use of
engineered components such as steel framing, prefabricated walls or calculated energy
performance involves much more design co-ordination, research and supervision. This
complexity in the detailed design stage increases with the move from standard components
to specially developed components and, of course, with the size of the project. This estab-
lishes a need for:
• an iterative cycle of design development as more detail is received

• a larger, more specialist design team with good communication channels
• many specialist inputs from designer contractors
• many drawings of the manufacturing details
• many designed component interfaces.
Whilst the concept stage is likely to be in the hands of one or two people, the scheme stage
involves much more management due to the greater co-ordination required. Gray and
Hughes6 refer to a co-operative interactive design process based on teamwork that reflects
the more flexible creative structures of design organisations. This approach provides a less
dominant but more integrated process that brings together experts in task forces at the design
scheme stage. Clients take an interest in testing feasibility and business factors that are con-
nected with delivery times and costs in use. Contractors have specific preferences that are
associated with their suppliers. They need flexibility in design to allow for alternatives that
may induce value. Earlier involvement of the construction manager is appropriate where the
design affects the methodology for construction significantly or where the contractor takes
on an engineering design role, as in design and build procurement.
Design management
The CIC7 defines the role of design management as ‘ensuring that the right quality of building
design information is produced at the right time and conveyed to the right people’. It goes on
to say that increased numbers of specialist designers need to be co-ordinated by a single point
of design responsibility to increase efficiency and integration with the construction process
where there are also many subcontractors.
Design management is the application of management control in terms of cost, time, qual-
ity, health and safety and environmental performance and impact of the design process to
ensure that a good design is co-ordinated and well-implemented, both in construction and in
the use of the building. This involves control of information flows between different parties
and the proper involvement of client and supply chain. Designers should, however, be given
time for reflection to keep objectives in focus through an iterative framework, where many
designers and suppliers may be affected by iterations.
Design management is based on an awareness of the key milestones of the master pro-
gramme, such as concept design, value analysis, integrated scheme design, client approval,
outline and full planning submission, and key procurement dates (supplier and contractor).
An integrated system could employ process gates (Chapter 3), which work with the client
and other professionals to integrate design, construction efficacy and user acceptance. These
gates are client approvals that recognise the coming together of parallel processes (simultane-
ous engineering), but should not be allowed to become bottlenecks.
Gray and Hughes8 listed nine essential steps for successful design management:
• Recognise the inherent complexity of design.

• Carefully manage the designer selection process.
• Recognise the changing design leadership role as the design progresses.
• Integrate information supply with construction need.
• Obtain agreement at key decision points.
• Actively manage the integration of contributions.
• Plan at each stage.
• Manage the interfaces.
• Control design development.
Design management and the RIBA Plan of Work

The RIBA Plan of Work9 has been revised to accommodate different types of procurement
that alter the traditional sequential delivery process, as shown in Figure 6.3. It is acknowl-
edged as a valuable framework for understanding the various stages of design.
Figure 6.3 is a bar chart with a left to right sequence based on the various stages of the
RIBA plan of work shown in column 1. It recognises that procurement may vary across
stages 2–4 depending on the procurement type chosen, where design can be led by designer,
contractor or client. Full planning application is a critical activity between developed design
and technical design, though technical design may be furthered where risk is reduced by
pre-discussion and outline permission. The design brief has to be frozen for design to be
developed. The brief may be defined:
• prescriptively by the design team, with full detail

• in outline with performance outcomes needing contractor’s design.
Funding can be provided by the client or contractor. Outline planning approval accommo-
dates the need for an earlier submission and also accommodates the need for some of an
earlier submission of planning proposals in the design process. At the end of each stage there
is a specified information handover. On conservation projects the design may be approved as
construction detailing is uncovered, i.e. ‘on the hoof’, using conservation principles.
Right at the beginning the designer needs to assimilate the business needs and the pro-
ject objectives of the client in the strategic definition. There are two stages to finalise the
brief but it should be frozen by the end of the concept design. Concept design is an outline
design to suit the brief and may provide options. Feasibility is done at the completion
of an initial brief, which is then iterative with concept design and design development.
Developed design integrates the specialist areas of structural, services and civil design.
Other strategic factors such as design context and sustainability proposals would also be
considered at this stage. The full planning application would normally be submitted by the
Time
8 STAGES
0 Strategic Execution plan (PEP)

definition Preplanning application
Strategic brief
1 Preparation Feasibility
Project quality and
and brief Initial project
sustain objective
brief
Risk assessments
2 Concept Project quality Final project brief
design and sustain Project strategies
Design
objectives Preliminary costs
programme
3 Developed Risk assessments
Co-ordinated design
Procurement
design Cost Information
Full planning
application Specialist contractor
4 Technical
design
design
Building regulations
5 Building contract
Construction
Construction Site inspections
programme
Design queries
6 Handover Handover
and close out Conclude contract
Update project drawings
7 In use In-use evaluation

Soft landings
Figure 6.3 Stages of the RIBA Plan of Work
end of the developed design process. Building regulations are submitted later, after the
technical design is complete, and this signals the traditional procurement bidding process.
However, technical design may be subcontracted to a design build contractor. The key
issue in determining who manages design, then, is the form of procurement.
The key areas for management need to be defined project by project. Gray and Hughes10
identify quality as the primary driver for the management of design and it is this concern that
will drive the need to plan in detail, manage the interaction of the design team and ensure the
timely production of the information for its use by others to meet targets for client approval,
tender and production and to work within the key cost parameters. This is followed closely
by the need to ensure that health and safety issues are considered holistically, which does not
remove liability from the individual designer regarding the safety of their design but does
mean an additional role is needed to co-ordinate safe designs. In some design areas, such as
complex service design, a services co-ordinator is also employed to co-ordinate different
services and ensure buildability.
Procurement impact
In traditional procurement, the contract assigns the architect or engineer to co-ordinating
design, managing the budget and liaising closely with the client to manage change. It is
usual to appoint or informally use design contractors to gain access to their specialist inputs.
Traditionally, the contractor manages various product designs submitted by suppliers, which
are then approved by the relevant designers.
Design build procurement is easier to manage due to the executive single point of respon-
sibility assigned to the contractor regarding design and construction. Design and manage
contracts are the same, but in this case there is a consultant project manager similar to an
executive project manager.
In construction management the client is much more closely involved in signing off
packages individually. Theoretically, the client co-ordinates the input of the designers and
contractor. In practice, however, a design manager co-ordinates designers and a construction
manager co-ordinates the different specialist contractor packages so they both report to the
client or a project manager
In DBFO-type contracts, the whole design and briefing role is carried out by the fund-
ing contractor and bidding is carried out earlier on the basis of a contractor-led design. This
approach is more commonly called turnkey. The turnkey developer or contractor subcon-
tracts the design and the construction (see Chapter 4 for information on different forms of
public–private partnership (PPP)).
From a designer’s point of view, flexibility is needed for the creative process and time
is needed if information is to be correct first time. Fast-track projects that overlap design
and construction mean a careful study is required so as not to compromise design time. Fast
construction is a concept to maximise design time at the expense of construction time. This
becomes a reality when contractors are taken on early to be involved in the design process
so that they can procure in advance and so pre-plan the construction phase. For example,
prefabrication and simultaneous engineering techniques may be applied to reduce time onsite
on new build projects with relatively predictable market conditions.
An ideal situation for improving communications and facilitating quick decisions is to
bring the core design team together in one office. However, this co-location is often not
practicable due to its expense, the detachment of designers from their core information and
designers’ need to be available for other project work. Case study 6.1 considers this situation.
BIM is discussed later.
Case study 6.1 Design co-location

A £27 million London office fit-out was carried out under construction management
procurement. Representatives from each of the design consultants were housed in an
open plan office with the construction manager. This proved very effective in manag-
ing the production stages of the design and dealing with client and design change. The
specialist package contractor manager was also allocated open plan office space on the
same floor, making their design and management services accessible. Lead specialist
contractors were responsible for managing the interfaces of other contractors (e.g. M&E
contractor for ceilings, raised floors, partitions, electrical, mechanical, multimedia, sprin-
kler and fire alarms) in a particular zone or area. Monthly meetings were held, although
some client-related decision making was delayed due to the remote location of the cli-
ent, in New York. The project itself was nominated for a management award and coped
with significant client changes without altering agreed targets.
Client value systems
The Institute of Value Management (IVM)11 defines value as ‘the relationship between satisfy-
ing needs and expectations with the resources required to achieve them’. A project has many
stakeholders who may have different values. A client’s value system is derived from integrat-
ing each stakeholder group, e.g. shareholders, customers and employees. Such integration is
necessary to define the strategic project objectives with least waste. The value chain starts in
the briefing and concept design stage and develops in tactical detail as it moves through the
later stages of the project life cycle as indicated by the RIBA plan of work. The objective is
to enhance delivery and value as the building design passes through different hands. Various
external stakeholder interests are related to the sector, such as social housing, school or road
construction, and these need to be reviewed, prioritised and assimilated where appropriate. Each
designer exerts an influence but has a professional responsibility to prioritise value-adding solu-
tions for the client. This balance can be helped greatly by the project manager by determining
the best compliance in terms of the client’s objectives for time, cost, quality and environment.
As well as project value, Simister12 refers to shareholder value based on the distributable
returns from the project and customer value, which recognises the ability to increase the
value the customer also gains from the stripping of waste from the system. This is quite a
useful concept in terms of producing goods more competitively for the consumer. Clients
may increase capital cost to enhance business and operational value, which is a longer term
approach. Capital payback is discounted by inflation, but escalating running costs have the
opposite effect.
Ethically, values may be expressed in the sustainability of the design in respecting the ecol-
ogy, using more renewable resources and fewer non-renewable ones and reducing the carbon
footprint of the building in terms of its construction, e.g. embedded energy and its use and
maintenance. Socially, building design can have an impact on the quality of the working envi-
ronment for employees, the availability of employment and the effect of the building and its
activities on the local community. Businesswise, it may boost the reputation of the designer.
These factors are discussed in more detail in Chapter 12.
Economic and market factors are important to clients and the value gained from business
optimisation, efficient operation of the building and reduction of life cycle costs far exceeds
the construction cost. Thus, if a client is to profit from these efficiencies, a design approach
focusing purely on reducing construction cost is of less value than one aiming at quick com-
pletion or effective operation. A business may also take a flexible approach to location to
benefit from tax breaks offered by the government as an incentive to build in disadvantaged
areas. Such tax breaks may offset setting-up costs. Taking advantage of cheaper production
abroad is another approach to be considered, which is discussed in Chapter 3.
Value in design
Understanding the client value system is crucial to successful design and is central to the
function of value management (VM) that draws design imperatives from the prioritised cli-
ent objectives. Good design integrates the client and optimises their objectives by producing
an elegant solution. Basic design value can be defined as cost divided by function. As such,
value can be maximised by:
• reducing cost and maintaining function

• keeping cost the same and increasing function
• a combination of the above
• increasing function and cost disproportionately in favour of the client.
To make more than mathematical sense of VM, we need to consider the worth of function,
connect this to the client’s values and needs and separate these from the wants that so often
confuse the picture when trying to identify an efficient and effective building.
Technically, building value can be optimised by an efficient choice of materials, optimised
structural solutions, orientation and level of the building to reduce excavation, shielding
and wall to floor ratios. For example, an ‘elegant’ solution on a sloping site may require ‘cut
and fill’; that is, the building can be multi-storey and long and thin across the slope to mini-
mise the cut and maximise light, and have thin floors with services built in to minimise storey
height. Keeping the building light by using steel frames or pre-stressed concrete may mean
that the foundations can also be reduced depending on the ground conditions.
Conflict can be reduced by having appropriate contracts that encourage space for value
engineering; good design–client relationships also aid understanding. Early contractor
involvement in the design process is necessary for continuous improvement throughout the
construction process.
The process and buildability of the building can be optimised for value by efficient con-
trol systems, standardised components and familiar detailing so that waste reduction and
the construction process are more competitive. The designer–contractor interface is criti-
cal and merging the design and assembly functions can help in reducing waste. Detailed
designs following the concept design can be passed on effectively to the contractor and
specialist if information flow is well-controlled. The designer can co-locate with the con-
tractor or use BIM.
Buildability
Buildability has been defined as the integration of thinking and doing.13 Buildability is impor-
tant to the merging of the design process (what to do) and the construction process (how to do
it). In tendering, a contractor will have developed a methodology and a programme in order
to carry out the works efficiently. Contractually, buildability is relevant to the contractor
chosen – their budget restrictions, their experience and their assumptions of the design docu-
mentation. Physically, buildability refers to the location of the building, access to technology,
geomorphology and the context of the building that influences methodology. Socially, build-
ability is also about understanding, competence, health and safety, cost allocation, achieving
quality consistently and effective communication. The early involvement of a contractor
allows a consultation with the designer from this point of view.
Evidence-based design
Evidence-based design involves placing a strong emphasis on research and the feed-
back from the users of buildings for a specific primary purpose, such as faster healing
in hospitals and learning enhancement in schools and universities. This is a pragmatic
approach to making sure that key operational objectives are achieved and it is useful when
making a case for enhancing value in the operational stages of a building. Evidence-
based design brings designers, patients and medical staff closer. Case study 6.2 provides
two examples.
Case study 6.2 Evidence-based design in hospitals and

faster healing
There is plenty of anecdotal evidence of design solutions that do not work well in hos-
pitals, and their unwanted side effects, such as infection and poor environments, can
be experienced by users. A pragmatic approach would involve putting these issues
together and asking what can design do to solve some of them; what evidence shows
that the design is letting down the patients or the hospital staff; and what can be learned
from examples of good practice?
In a hospital, the key concerns have often been functionally defined as diagnosing,
curing and treating. However, patient wellbeing may also be dependent on things such
as infection control; elements of the environment that instils a sense of confidence and
promote well-being, such as space, light, greenery, shading and control of local temper-
atures and noise; getting patients home quicker by eliminating bottlenecks in specialist
machinery use; and providing home care. Some hospitals have a reputation for making
patients sicker. Some have a high readmission rate as a result of inadequate follow-up.
Malawi has the highest infant mortality rate in Africa. The maternity hospital in the
Kasungu district has been redesigned into a maternity waiting village that reflects the
communal space of traditional villages. It is hoped that making a Western style hospi-
tal less intimidating in this way will encourage more expectant mothers to deliver their
babies in this safe environment. Further, peer recommendation will hopefully also pro-
mote its use.
The 2011 earthquake in Haiti caused the Gheskio Tubercolosis Hospital to collapse.
An outbreak of cholera shortly after meant that patients had to be treated in tempo-
rary tents, and the heat and lack of sanitation therein caused the disease to spread.
The replacement hospital has been re-designated as a cholera treatment centre and
designed with adequate ventilation and natural light in mind. An onsite waste water treat-
ment system is also provided to prevent the spread of disease through recontamination.
Can you think of other examples of evidence-based design?
Acknowledgement to Evidence Space14
Ethics of design and value enhancement

The ethical aspects of design and value are enshrined in their continuing fitness for purpose
and their sustainable credentials, so that they do not become environmentally unfriendly on
completion or later on. In enhancing value, design can be too heavily focused on short-term
commercial gain. Buildings are sometimes sold on that demonstrate minimum sustainability
or are dehumanised for users as a result of poor quality design. A good design ethic can be
demonstrated by respect for human rights, support for human effort and delight for human expe-
rience.15 Designers have a responsibility to the user experience as well as to a sustainable future.
Design innovation has a role to play in value management in terms of creating an inte-
grated solution.
Case study 6.3 adds an additional ethical dimension concerned with product qual-
ity and sustainability, which can impact on the reputation and business value of the client
and designer.
Case study 6.3 Private housing development

A housing developer that had gained a good reputation for solid building experienced
a spike in defects that it was slow to address and compensate for. Disgruntled owner-
occupiers who had invested their life savings in the properties perceived that the prices
they had paid for their homes were not commensurate with their quality. A media inves-
tigation into the situation resulted in the company’s share price declining and potential
buyers looking for other developers. It took time for the company to rebuild its reputation
and marketing its products remained difficult even though it improved its designs and
reduced its prices. Indeed, its share price continued to fall. Design and construction
quality are strongly related to ethical values.
Does a balance exist between business efficiency, customer satisfaction and soci-
etal expectations?
Most clients have aspirations for their buildings in accordance with a well thought out cor-
porate responsibility policy. Legislation also exists to ensure less carbon usage, responsibility
for inherited pollution and accountability for managing substances that could be hazardous
to health. Designers may need to make clients aware of their responsibilities as professionals
and this is a difficult call if the client persists in underfunding the building in terms of achiev-
ing ethical outcomes. Case study 6.4 is a more complex example of ethical choice.
Case study 6.4 A failed bridge

A bridge failure in Florida killed several people in 2018. The pedestrian crossing col-
lapsed onto traffic on a busy road soon after opening. The bridge had been intended
to provide safer access for students who lived on the wrong side of the road to a uni-
versity campus. New client technology allowed the use of less concrete in the span of
the bridge; however, the design had been hard to implement successfully and post-
tensioning the structure had become a problem. A crack had been reported, but the
project manager decided it did not require urgent attention. The reason for the failure is
still being investigated, but there could be a case against the designers in terms of duty
of care in using untested technology developed by the client. Unethical design applies
to the process of acceptance as well as to the design itself. In human experience terms,
this project had the potential for delight but failed due to unreliability.
What could have been done to ensure the basic ethical requirement for reliability?
Design and construction integration

One of the key areas of design management is the interface between the design and construction
stages. Traditionally, these are separated and there is thus a need for a robust communication
system to ensure that information arrives when and how it is needed. Particular stress is put
upon this system when a fast-track approach is used requiring construction to take place on
certain elements before the whole design is complete. Some of the areas for co-ordination
are as follows:
• implementation and buildability of design
• communication on health and safety risk exposure and hazardous materials
• innovative or technologically-advanced components
• sequencing and timing impacts
• tolerances
• constraints that affect construction methodology
• material lead in-times
• available or required mechanisation levels
• prefabrication methodology to maintain benefits and timing
• performance of energy-saving technologies in situ.
As a contractor is not often available at the early stages, unilateral design action is often taken
that tries to predict, or later inform, certain construction methods. Contractors need to be aware
of the implications for the constraints of the site and the pre-decisions imposed on the methodol-
ogy when tendering. In an open culture, value may be enhanced where construction management
aspects can be dealt with directly with the contractors at an early stage and productivity improved.
Egan16 concluded that, in general, the performance of the UK construction industry could
be rated at 4/10. The following list indicates where improvements could be made in the co-
ordination of design and construction:
• efficient methods for dealing with design waste elimination

• workable tolerances
• standard components and processes
• offsite production17
• research into new technologies
• better change management to allow some flexibility
• benchmarking
• sustainable approaches to reduce whole life cycle costs
• building information modelling.
Building information modelling (BIM) has made great strides in joining up the inputs of
different designers in 3D format so that clients can visualise both the design process and its
outcomes. BIM also provides early information to the contractor and asset information to the
client. In this chapter we will cover standardisation of design and components, design waste
issues, some aspects of offsite manufacture, including the management of new technology,
some aspects of constructability and change and information management. Case study 6.5
gives an example of design construction co-ordination.
Case study 6.5 Design construction integration for a

specialist physical research facility
Although working within the terms of a traditional contract, the contractor was involved
in the enabling works and therefore played a forward role in checking the buildability of
the drawings for the main structures. The nature of the works was to overlap design with
(continued)
(continued)
construction and to award packages for tender as the design was completed. Care was
needed to ensure integration
At the primary level, the lead designer was responsible for co-ordinating the different
designers and producing a full performance design. Full detailed drawings and speci-
fication were offered to the principal contractor for scrutiny and tender. The principal
contractor was responsible for assessing the buildability of the drawings and the spe-
cialist subcontractor put in a detailed design that suggested minor changes to suit their
working details. The shortlisted contractors were also encouraged to fill in question and
answer sheets in order to provide acceptably detailed proposals.
The need to change to door sets in the dry-lined partitions, to provide consistent
tolerance, was an example of a change made to benefit the buildability and efficiency of
the project package for ceilings and partitions. This would would produce mutual ben-
efits for the contractor’s installation and the quality of the building. Value engineering
contributions by the contractor were restrained because there was no specific system
that defined responsibility for design liability where design had been adjusted by the
contractor. This made it difficult to subcontract design risks to the contractor. Incentives
to share financial benefits with the client helped to cover such risks.
Significantly quicker and cheaper solutions evolved and good co-operation was
achieved between contractor, client and architect. The client made use of the availabil-
ity of the contractor in order to involve them in the design stages of the second phase
of the contract. The experience and availability of the enabling contractor on the site
was also acknowledged by putting them on the tender list for the second-phase con-
struction, which they subsequently won in competition. The informal direct relationship
between the client and the contractor project team ultimately comprised a limited formal
line of command through a project manager. This was also encouraged by direct client
involvement in quality inspections, which meant that the project manager was able to
use contractor expertise.
Design waste
Design waste is created by an inefficient use of resources or by an erroneous interpreta-
tion of requirements. Materials can be wasted if they are used inappropriately in the wrong
position and tolerances are difficult to achieve or the material is not fit for purpose; for
example, window openings do not fit the brick module so that more bricks are cut and
wasted. The use of standardised components, such as standard timber or steel joist lengths
to match structural spans, will reduce waste. The interface of proprietary materials with
the structure requires good design in order to stop leakage and rework. Late design change
creates aborted work and wasted materials. Buildability can be compromised, which results
in wasted effort.
The concept design integrates the whole. However, designers need to have a common
approach to integrate fabric, structure, services and landscape early. Aesthetic elements are
important to both the quality of the building and the quality of life, but should not be given
undue weighting in meeting client and society objectives.
Spatial planning is about providing comfort and efficiency in use, but the principles of
design economics (discussed in Chapter 10) are also important in reducing the use of resources,
optimising the wall to floor ratios and limiting the area of external weather-proofed walls and
roofs. The vertical and horizontal relationships are important.
Detailed architectural design is an important process in order to provide robust details and
elegant solutions. It is closely connected with buildability and the interaction of design, build-
ing price and construction. In the case of new materials, unusual juxtaposition and shaping of
traditional materials or the importation of materials adapted for different building codes, the water-
proofing, durability, health and economy of use need to be tested. Clients may request unusual
detailing where the quality and the detail of the finish are critical, for example ceiling details. In
this case, a mock up for the design should be made to ensure that the requirements are interpreted
correctly and understood by all. This allows for design adjustments before all bulk materials are
ordered. A high proportion of non-standardised components will raise the tender price.
Sustainable design looks at the choice of materials that have low levels of embedded car-
bon and are durable or recyclable. It also considers renewable or low carbon use of energy
so as to minimise the use of fuel. Short duration materials and constant renewal not only
cause disruption but are wasteful in material usage, some of which are non-renewable finite
resources. Reducing operating costs is key to sustainable design.
Structural design needs to be adequate to take static and dynamic loads and to stop exces-
sive flexing and cracking, but not over-specified so that excessive material is used or storey
heights are more than otherwise needed for use, wasting space in ceilings for deep members.
Control of clear floor spans is important so that structures do not become more expensive
than necessary. Foundations that are avoiding other underground structures or obstacles can
also become very expensive, and they are often the product of late discovery of these obsta-
cles. Basements are a result of expensive land prices where space is at a premium. They are
also expensive structures and require the retaining of major lateral loads, more robust water-
proofing and greater excavations and carting away of materials.
Services designed for a comfortable environment may be worth up to 40 per cent of
the contract sum and so savings in avoiding over-specification in plant need to be weighed
against the costs in use. Small proportionate savings will make major contributions to con-
tract sums. Passive heating and cooling is less expensive to install and run. Electrical and
mechanical design need to suit the structure and fabric of the building, such as shallow duct-
ing and building conduit into concrete panels. Sustainable services is a much wider subject
in relation to the building architecture in order to reduce mechanical heating and cooling
requirements, reduce electrical load from lighting and fans and create natural and renewable
fuel alternatives. Technological solutions are becoming more advanced for self-cleaning, and
heat-generating glass, interstitial shading and roofs and walls can now generate electricity.
Ecological and landscape design needs to match the external environment to ‘live’ with
the existing natural flora and fauna. Choosing locations, orientations and time scales to suit
breeding seasons can help. Rainwater can be collected and stored for building occupant
usage. Waste can be treated and eliminated by harnessing and enhancing these environ-
ments to carry out integrated roles in the new facility. Buildings can be shielded from wind
exposure by trees, which can also provide shade. Views can be capitalised by incorporating
geomorphic features such as lakes and using the natural environment to encourage wildlife.
Water run off can be minimised by using fewer hard areas and applying sustainable drainage
design. Recycled industrial sites can be restored ecologically.
Civil engineering design needs to provide efficient infrastructure in reducing service runs,
utilising flexible highway design that reduces surface run-off and flooding, and recycling
rainwater. Buildings have a lot of scope for efﬁciency in material use where design of some
structures is over-speciﬁed because of unknowns and high factors of safety are built in. For
example, there is a tendency to justify larger dams, ever bigger flood defences and huge-span
bridges that are expensive and can be vanity driven. Power stations, dams and reservoirs are
often situated in remote locations so do not have to be elegant; landscaping features are none-
theless important. Wind turbines, airports, aerial masts and pylons are constantly criticised
for ruining areas of outstanding natural beauty and money is spent fighting planning appeals
where people have felt threatened, polluted and demeaned in their environment by these
structures. There is scope for greening concrete specifications by using natural materials,
using more waste wood, recycling and fully evaluating the life cycle costs of civil structures,
as these structures are enormously expensive.
Offsite manufacture (OSM)

Prefabrication is a way of manufacturing larger components offsite in more predictable con-
ditions in order to cut down work onsite where conditions are harsher and less controlled, for
example weather conditions and prolonged working at height. The quality and speed of erec-
tion are also quoted as two advantages. However, this is weighed against a longer pre-delivery
period that requires meticulous and early planning and involves greater manufacturing cost,
though arguably this cost may be offset against less waste and more efficient construction
time to produce a quality product. OSM lends itself to computer aided manufacture (CAM),
which is less labour intensive, has standardised components that are not strait-jacketed and
can be varied in size and has a limited range of strengths. Many larger components are made
offsite in factory conditions and manufactured from digitised drawings. Completely prefab-
ricated houses are commonly built on prepared groundworks.
OSM is generally divided into six types, each of which has advantages and disadvantages:
• Modularised volumetric, which means an element such as a room or a toilet cubicle

is completely finished in the factory and bolted into position on an existing structure.
Elements can also be structural up to a certain height and stacked on top of each other;
for example, multi-storey housing and high-rise student accommodation. Structural in-
situ cores allow greater heights.
• Sectional buildings, which bolt together and are generally structural up to a certain height.
The limitation is the size that can be transported by road or rail. This allows for wider
rooms and complete buildings, such as hospitals, where there are a variety of spaces.
• Pods and other units, which fit into an existing structure and connect up to the services
such as bathrooms and kitchens.
• Panel manufacture, which makes up structural floors, walls and roofs into a complete
building. This is generally structural, is reinforced with structural screeds and bracing and
is covered with cladding. It may be in timber frame or concrete panels (see Case study 6.6).
• Unframed smaller standardised components manufactured in specialist parts, which
‘bolt’ together onsite, such as insulated blocks beams and floor cassettes creating and
forming a kit of parts designed to suit client requirements. There are many forms such as
Dura-Block® or permanent polystyrene formwork, which also insulates the concrete fill
onsite (Case study 6.7).
• 3D printing of building structures in various fluid-setting materials, which work from
digitised design modelling to sculpture buildings in chosen mediums and to check out
structural requirements. It makes it possible to enable futuristic design to be imple-
mented using innovative printing machines to suit component sizes. It is fast and can be
carried out in situ, obviously involving many challenges for complex structures. Winsun
constructed the first 3D printed office in Dubai in 2016. Many others have invented
buildings in this form.
The key to OSM of buildings and structures is to integrate information and bring detailed
decision making forward in the process to allow mechanisation. BIM helps to bring project
information together in a common form using agreed protocols, such as COBie.
Case study 6.6 Panelised construction

In an 18-month period, 1932 student residences were constructed using Buchan pre-cast
concrete panels. Two six-person flats, six to seven storeys high, were built off a central
stairwell. They were joined together in rows to create courtyards enclosing landscaped
areas at ground-floor level with bike stores and a reception area for each courtyard.
Panels were delivered in order to create walls and floors that were reinforced with con-
crete screeds. Windows were already built into the panels and services laid in the floors
and walls. Panels were inclusive of flats and staircase circulation areas. Each panel was
designed to suit the block configuration and delivered in order. Five mobile cranes were
used to lift the panels together onsite and labour worked off the floor below with edge
protection already attached to the wall panels. The basic structural panels were bolted
together and braced. Structural floor screeds were used to stiffen the structure.
Scaffold was later erected to fix the 30 different types of cladding types, which
included different types of brickwork, cedar panelling, reinforced render and tile hang-
ing. Roofing consisted of steel-framed pitched roofs, which were not part of the Buchan
system, and heating and hot water for each block were provided by a ground-floor boiler
room configured into the layout. Internally, the walls were fair-faced concrete that was
painted, and concrete precast staircases were fitted. Toilet pods were used for each
en-suite bedroom.
This was a successful project that fulfilled the needs of the client for a durable design,
which was also delivered and erected at a fast pace. The accommodation is popular
with students and provides a medium-priced solution.
There are a number of components that are flexible to use as fast build. Case study 6.7 is
an example of fast construction using simple engineered components in single skin, cutting
down labour onsite.
Case study 6.7 Component-type prefabrication

Dura-Block® is a large light hollow block with internal insulation. Blocks are made out of
woodchip concrete and cast hollow with internal insulation in those to be used for the
wall or floor. Blocks are hollow for reinforced concrete to bind walls together structurally
and for support columns or lintels. This is strong enough for retaining walls. Blocks are
completely impervious to water but are usually rendered or timber clad on the outside to
give a nice finish. They are also more resilient than concrete to explosive blasts, so they
are being used as shock walls cast in panels and loosely connected. A template for a
colour render has been developed to create the appearance of brick and masonry. The
roof could be of simple truss manufacture and easily fixed from scaffold.
Standardised design solutions
Standard design solutions, previously called system buildings, have a standard approach to
the design of buildings with the use of certain standard components. They incorporate flex-
ibility for the layout and facilities required but try to keep costs down by providing some
standard detailing and/or components. They may use a consortium of suppliers or a joint
venture between a designer and a manufacturer. They are effectively a holistic proprietary
product available from a single source. Some competition can be built in where the contrac-
tor is tendered as an approved supplier. These programmes may offer potential savings on
design fees and on construction where the learning curve has already been discounted from
the full cost of design and risks are expected to be lower. For example, in Case study 6.8, the
old school buildings were limited in layout and depended too heavily on a kit of parts, which
ultimately lacked the durability required. New standardised design systems were then devel-
oped and the case provides examples of four of them. While one of them has been archived,
another has been used in the building of 30 schools.
Case study 6.8 Standardised schools

Currently, a number of solutions have been developed for the schools rebuilding pro-
gramme in the UK. The prices have been predicted to be up to 50 per cent lower
than the bespoke programmes previously used to deliver new schools, and depend
upon local partnerships, private finance initiatives (PFIs) or other facility to group the
schools together into one renewal programme. Table 6.1 shows the relative merits of
four new systems.
From Table 6.1 it is clear that the client for standard design does have several choices
and indeed can induce competition between different systems, together with a review of
which system suits best. The designs are based either on existing products, such as Tarmac’s
TermoDeck®, or they could be based on standardised designs, some of which are modular.
Where designer and contractor familiarity exists, then the learning curve is reduced. Where
there is OSM capability, there is an opportunity for improved quality and speed of erection.
In the OECD report on standardised design for schools,22 several different solutions
emerged from the eight countrywide case studies, all of which had experienced periods when
rising school intakes had created the need for a large number of schools. In this study, the
OECD explored subsequent responses to standardised design. Many of these designs were
delivered by centralised education departments rather than a favoured standardised design
system offered by a design organisation, as in Case study 6.8. Canada favours a single modu-
lar system with flexibility of provision, whilst Ireland has a set of standardised plans that are
adjusted to meet the needs of a particular school, with materials chosen to suit the context.
The most basic modular system consists of relocatable classrooms that are attached to or
removed from the core school to match yearly intakes.
Futuristic and innovative design

Most design in this category is applied to transforming the way buildings are delivered to
save construction time and money, standardise the design process, cut down bureaucratic
Table 6.1 Comparison of different standard design school systems21
Factors Sunesis18 EcoCanopy19 NurtureFuture20 Learning Barn

Who Willmott Dixon and Scape, the Bryden Wood Architects Cartwright Pickard Architects and Scott Brownrigg Architects
developed local authority procurement Tarmac Building Products and BAM Construction
it? company
How does it Off the shelf standardised school Uses 4m × 4m and 4m × 6m Load-bearing concrete tarmac Standardised kit of components
work? design in three models with lightweight bolt-together building products concrete façade including wall panels,
a fixed price. Customisation concrete waffle panels for panels incorporating services, windows and door sets
is limited to colour choices floor and wall to create windows and TermoDeck®, a developed with BIM Revit
for floors, floor finishes, flexible configurations hollow concrete deck promoting in mind. Architects will
doors and outside walls. with an exposed timber heating and cooling to pass draw standard component
Short delivery lead-in of 13 frame roof that allows through the floors using thermal information from model
months because project value quite large spans. It only mass. Fair-face products preclude and create drawings to suit
is pre-tendered. has 10% waste. Clear use of ceilings, raised floors or specific sites. BIM allows
internal spans of 8m. dry-lining. fully-integrated approach
for secondary schools.
Who has used 30 UK schools. Bedford and Ashe Construction has used it Talking to major contractors to take Used by contractor and
it? Croyden have used Sunesis on 9 children’s centres. it forward. architect in Kent schools.
Secondary Schools System
Cost 30% reduction on bespoke £1000/m2 £1400/m2 £1,600/m2
school.
Class leader Low flexibility for space though Low-cost solution which Factory-controlled quality and robust Already has full product
re-configuration is possible is attractive and allows thermo mass of concrete used information allowing early
Fast delivery to site and expansion of space for sustainably with customisable accurate price and reducing
26-week build programme. growing school. design. risk. Either traditional or
offsite delivery.
Possible Looks like an airport terminal The timber canopy roof is Internal concrete walls not flexible Economies of off-site
issues and relies on staff to quite distinctive, but may once built. manufacturing depend upon
configure spaces within not be to everyone’s taste use with multiple schools.
standard shell.
regulatory delays and to use innovative technology often already common in other industries.
The use of 3D printing, renewables or waste products for structural materials and considering
computerised manufacturing methods to optimise space and heating requirements show how
innovative design tackles constraints from different perspectives. Many designs change the
nature of the product to do this. Case study 6.9 illustrates the advantages and challenges of a
printed house in its early stages using 3D printing.
Case study 6.9 Winsun 3D printed house23

In 2013, Winsun, a Chinese building supplies company, built its first 10 3D printed
houses in just 24 hours and its first 3D printed office in 2016, in Dubai. It has also sold
a number of houses. The ‘ink’ it developed consisted of a mix of cement, sand and fibre
together with a proprietary additive. This can have a painted finish or coloured render.
The printer builds the house in the factory in layers to make large components that are
transported to site and assembled. Demolition waste or mine tailings can be substituted
for 50 per cent of the sand to make the house ‘greener’. An advantage of 3D printing is
the low intensity of labour – three work persons built a 1100ft, two storey house in three
days, which was a tailor-made design with zero waste. Once plans are loaded, supervi-
sion and loading of the factory robot are the only human interactions in the factory. The
barriers facing 3D printing are project owners’ scepticism regarding quality, structural
strength and durability and the lack of regulations making it necessary to prove compli-
ance with elements of building codes.
Case study 6.10 is an example of working closely with government authorities to solve a
common problem. It is also an example of other sectors moving into design and construction.
This has happened in housing and in other areas as the ensuing construction product helps
solve a wider problem like traffic congestion and city pollution. New ways of problem solv-
ing can break open existing design controls and challenge bureaucracy.
Case study 6.10 Elon Musk tunnelling24

New players outside the construction industry have been stepping in with innova-
tions that have speeded up the slow process of building. Elon Musk founded Boring
Construction as an experimental effort to supply alternative urban transportation. It uses
‘a series of underground roadways which ferry vehicles to and from destinations using
electric tracks – a high speed subway exclusively for cars’. He has obtained a test cer-
tificate from the Los Angeles civic authorities to showcase a fully-serviced underground
tunnel to help overcome the city’s chronic traffic problems. These tunnels will bypass
congestion hotspots and use the supersonic hyper-loop concept to provide high-speed
(up to 150mph) single-lane transportation on skates travelling on electric tracks with
exit ramps every mile or so. The skates switch to side tunnels to exit and enter, like
motorway slip roads. Test tunnels have been achieved in very short lead-in times. His
test route runs alongside Interstate 405 all the way to Interstate 101. Musk’s project
challenges other civil engineers to put ‘blue sky’ thinking into practice.
A 2017 international White Paper25 identified fundamental challenges for innovative and
sustainable design in construction and connected it with the future of technological transfor-
mation. It deals with innovation in design and project delivery (process). The rate of change
in industry in general needs to be applied to the construction industry to increase quality and
speed and reduce cost by applying digital manufacturing technologies made possible by BIM
and the greater need for creating better performing built assets to ensure that lifetime carbon
emissions are halved by 2030. The key points are:
• Create certainty for project delivery and improve productivity.

• Reduce the life cycle costs of assets by designing updates of existing buildings for reuse.
• Design carbon-neutral buildings and reduce waste in the course of construction.
• Deliver higher quality affordable infrastructure and housing.
• Make infrastructure and buildings resilient to climate change.
• Ensure flexibility and liveability in our infrastructure and buildings to improve the well-
being of occupants and users.
This process involves investing in digitisation, maintaining a long-term perspective and

working with government authorities. For example, in 2018, as part of its Industrial Strategy
Challenge Fund, the UK government provided £72 million to establish an innovation hub to
support collaboration between academia and industry. This hub will encourage adoption of
the latest digital manufacturing technologies to produce more healthy and efficient buildings,
which will help improve productivity. A target has been set to build 50 per cent faster, 33 per
cent cheaper and reducing carbon emissions by 50 per cent.26
Information flow
One of the key areas of design co-ordination is the flow of up to date and timely information
to each designer and contractor and the co-ordination of change implications. This requires
an efficient change management system. Traditionally, designers have done this by careful
issue of drawings to parties that need to know. Digitisation has necessitated an extranet or a
BIM platform with password access for contractors and designers. Changes are controlled
on extranets or in the ‘Cloud’ (see Chapter 13) by the relevant designer submitting a change
to the lead designer. These are then fully integrated in BIM through the interconnection
of objects on each drawing. This makes changes on any drawing the subject of alerts to
all designers whom it affects. Some information is taken straight to manufacture from the
approved drawings. Quality checking is an essential module of any system.
Design information flows through four levels to production, as shown in Figure 6.4.
Production information flow is traditionally requested by an information required schedule
(IRS), which provides a date based on the contractor’s estimation for the lead time for order
and delivery to site (see Figure 6.5). In dealing with technical queries (TQs) about informa-
tion received, a pro forma is used to identify contractor queries and to record a response from
the designer. A timescale is normally indicated. Alternatively, this can be incorporated on an
extranet or BIM platform that alerts the targeted person by email and also provides a record
of the exchange. Under contract, electronic information is normally acceptable as a formal
instruction. The lead designer contacts the client for key design change approval or for addi-
tional information about the existing site and assets.
A procurement schedule programme is helpful. A simple procurement programme is
shown in Figure 6.5. This establishes a framework for the main information requirements and
Client input Client input

Lead designer
Sub-designers Design establishes
Designers BIM platform
protocols and
brief
Component Contractor
procurement
Component Contractor's
CAM procurement
supplier procurement
Production
Production
Figure 6.4 (a) Project information flow and (b) information flow with BIM
Procure 3.10.XX 10.3.XX 17.3.XX 24.3.XX 31.3.XX 7.4.XX
Steelwork
contractor
Roof D
specialist
D
Windows
D Delivery
Design
Order
Manufacture
Figure 6.5 Procurement programme for construction work
allows workload planning by the provider of information. The timeframe between the order
and its delivery is called the lead-in time. Tailor-made lifts may be on a six-month delivery
schedule, bulk facing bricks on a 10-week schedule.
The inputs from design information need critical sequencing and timing. Design infor-
mation from specialist members of the team (consultants and subcontractors) must be
co-ordinated so as not to clash, be incorrect or omit areas. Specialist component information
must be made known to appropriate parties through the contractor, so the information flow
is two-way, iterative and incorporates client comments as appropriate. Information in the
ground or hidden within the structures of refurbishment projects will be revealed from sur-
veys and when construction proceeds.
Building information modelling (BIM)

Building information modelling (BIM) is an overarching information model designed
to integrate communication across disciplines by helping users visualise and explore the
impact of different options using a common database. Because of standard information sets
it can be used to test early stage ‘what if?’ scenarios and manage value in the particular
context of the project objectives. To be credible, BIM needs to update new materials and
products and design rules continuously. To accommodate innovation, design objects and
design rules can be added or amended for a particular project; for example, a new lami-
nated wooden beam may enable an increased span floor, making wooden structures more
viable, or do the same with a more slender section thereby reducing storey heights. National
Building Specification (NBS) has produced a BIM toolkit in the form of a digital plan of
work defining the information requirements at each of the (RIBA) stages. It integrates its
own database and classification of manufacturer technical data with BIM objects and lev-
els of detail for each stage. In addition, it can generate a standard method of measurement
(SMM) for costing purposes.
BIM is useful for design because it is ‘an intelligent 3D model-based process that gives
architecture, engineering and construction professionals the insight to more efficiently plan,
construct and manage buildings and infrastructure’.27 It integrates information flow, standard-
ises information through design, construction and building use and allows remotely located
designers and construction sites to integrate their designs digitally on an agreed web-based
platform such as the common data environment (CDE).
BIM essentially classifies products or materials as design objects, e.g. wall, window, floor,
which have defined 3D properties, performance values, material types and expected lifetimes.
It can produce additional tags that identify location or spaces such as rooms, ‘south block’ or
‘fourth floor’. These defined objects can be placed in the BIM model in multiple locations so
that a consistent response in all locations/defined locations may be obtained if a property of
the object is changed. For instance, if the material of a door set model is changed from metal
to wood, then the model can update the information in other objects in defined locations. The
modelling is intended to integrate design disciplines and construction processes. Currently,
at level 2 application, geometric properties are required as a minimum controlling change of
structural elements, such as a lintel, size of opening, glass requirements, etc.
Parametric properties, such as the cost of and time taken for installation, can be adjusted
and even the colour match of other objects can be changed if there is an interconnecting
algorithm between objects. Technical attributes are more available in design objects than
parametric attributes, which provides room for improvement. For example, construction and
design flaws in inter-floor fire breaks in the insulating material of Grenfell Tower allowed the
flames to spread (see Case study 5.3 in Chapter 5). This terrible event led to the establishment
of new fire safety rules for high multi-storey buildings. Creating the parameters of objects
will speed up design by recognising the most common forms of that object for selection. In
this sense, BIM standardises design to the parameter options defined. A BIM package can
also allow custom-made design. A floor, for example, may be defined as wooden, concrete
or steel – but a museum wants glass. In customising this requirement, the strength, spans,
impacts, cost and time to install glass floors will have to be researched. Standard parameters
can be used in reverse. If I want to reduce storey height to 2.4m, what type of floor could I
have and what are the impacts on structure?
Change management in design

Change is an inevitable part of design development and also of design flexibility, both of
which are part of an open culture encouraging creative design and responding to market
changes during building. Design management seeks to control the boundaries of change
without closing down the options for later specialist input. The RIBA plan of work indicates
three stages of design: concept, developed and technical.28 These stages should have defined
Table 6.2 Freeze points for change
Concept Most scope. Client value system is understood and building location, scope, footprint
and orientation are established. Final brief is proposed. Outline elevations and
layouts based on adjacency plans are proposed and accepted.
Developed Wide scope. Clear site layout, elevations, plans and cross-sections are established with
textures and colours of cladding materials so that scheme is suitable for detailed
planning application, often called freezing the brief. Structural and M&E service
systems have some definition at this stage, especially to assess sustainability.
Specialist contractor design inputs are not usually developed but may have limits,
for example lift choices.
Technical Little scope. Internal spatial layouts are finalised and structure and services are
firmed up with working detail suitable for tender and building regulations. No
major changes should be envisaged. Specialist contractor design inputs provided.
Clarification of detail is given to match type of procurement. In fast-track
construction, design detailing can overlap developed design to suit flow of work
package orders.
‘freeze points’ agreed with the client by use of a gateway system for approval, which fix
change so that the project can consolidate and proceed to the next stage. Table 6.2 is an
example for the boundaries of control.
In today’s markets design specialists are more likely to play a major role in the develop-
ment design stage as proprietary and prefabricated products become more structural and
integrated. This may incur spontaneous engineering when detailed design is incorporated
early and approval gates are foreshortened.
Managed change
As change is inevitable, the key role of change management is to reduce its harmful effects,
such as cost inflation, disruption of workflow and expensive time delays that can amount to
10–15% of cost and more. Ming et al.29 defined four factors needed to standardise an effective
change management model:
• Change dependency framework – defines a standard procedure for managing change in

construction projects and understanding dependencies.
• Change prediction tool – simulates scenarios of likely change and a method for minimis-
ing their impact on the planning or project execution stages.
• Workflow tool – readjusts workflow of teams affected by the change and their inter
dependency so that productivity is maintained or regained quickly.
• Knowledge management guide – helps people to understand reasons for change and
enables them to learn lessons for continuous improvement. Encourages sharing of expe-
rience and being explicit about tacit knowledge.
They also distinguished between elective and required changes; the latter refers to situ-
ations in which change is not a matter of choice. If a change is also unexpected, change
management involves adjusting subsequent parts of the programme and budget to incor-
porate it. There are many direct effects of change, such as addition or deletion of work,
abortive or rework causing delays or disruption, specification change and reorganisation
of schedules. Ming and Howard30 also cite indirect effects such as extra communications,
loss of productivity because of disruption to workflow, change in cash flow, co-ordination
problems, lower workforce morale and loss of float.
In all cases, the impact on time, cost, quality and other factors needs to be evaluated
before the decision to change is confirmed. This needs the co-operation of the client and
the design team in managing change and using an early warning system so that the design
and construction process is not delayed. However, it is critical to control the process using
a change management system or protocol. The NEC contract insists on an early warning
system for problems that occur because of a change or because items then need to be com-
pensated for.
An example of a design development change is given in Case study 6.11.
Case study 6.11 Design development change

The project concerns a specialist facility for physical research. The building is circular
and involves the use of specialist materials, for example heavy concrete. A special
company (the client) has been set up for the purpose of running the laboratory and
commissioning the works. The contract is inspected by technical staff from government
laboratories and the company has also appointed a project manager who is responsible
for vetting the budget and co-ordinating the design and construction at a high level.
Programme time is 55 weeks. Changes have been managed during the design devel-
opment stage.
The system
A no-blame culture was incorporated to account for growing knowledge of a complex
project with a clear definition of project scope. In this case, packages were tendered
separately either on a bill of quantities (ground works) or on drawings and specifications.
Risks were properly allocated to parties in the contract and grey areas adjudicated. The
architect’s instructions (AIs) were to be the official instrument for instructing change. AIs
were used to record all changes, whether financial or non-financial, and were also the
procedure used for issuing drawings.
However, in many cases change was generated by requests for information (RFI)
where there was a lack of clarity in the drawings or specification or a clash between
them or the bill of quantities (BOQ). In these cases, a contractual approach is rarely
helpful and contingency planning was thus employed, which focused on the key objec-
tives of the operational programme, which were to:
• provide quality in the sense of fit for purpose

• work to overall rather than elemental budgets to provide flexibility, i.e. give and take
• assess key client values that may be affected by change
• avoid using contingency sums as changes were encouraged that increased value
and overcame problems.
(continued)
(continued)
Example change
In this case, a late change was made to the foundations in order to cope with the ground
conditions, which pushed out the programme by three weeks. In order to retrieve this
programme loss, the drainage layout was revised with main runs outside the foundations
so that the drains were taken out of the critical path and other works could commence.
This meant that key operational programme objectives could be obtained without
major budget inflation. Success depended on an immediate assessment of the impact
of change. Phased handover is another possible option where scope changes have
expanded the work.
This case study demonstrates the close relationship between design, construc-
tion methodology and cost. In terms of reducing risk, contractors may build in early
programme targets to allow for some time contingency if the programme slips. This
approach is less easy to employ when programme times are already tight.
The role of urban design

One of the key issues that faces a project is acceptance of its impact on the environment on
the part of the local community. Consider the examples in Table 6.3.
Urban design needs to incorporate social values and may influence patterns of land use,
transport provision, building design, landscaping, environmental impact, typography and ori-
entation. These all have the ability to enhance the experience of the occupiers of a building
and those living in the surrounding neighbourhood. Urban projects are normally controlled
by the planning authorities but designed or funded privately so that a tension often exists
between developers wishing to maximise profit and planners trying to maximise amenity,
which results in ugly compromises – more work here is needed.
Most countries exercise town planning. Government initiatives include prioritising brown
field developments, building garden towns to plan on virgin land, extending many small
communities or creating dense suburban settlements to minimise land use, car ownership
and commuter journeys. Case study 6.12 discusses the additional role of a non-governmental
watchdog in the achievement of good design standards.
Table 6.3 Impact of building on the environment
Project Impact
Heathrow new runway Noise and wildlife habitat
Newbury bypass Pollution and wildlife habitat destroyed
Nuclear power stations Fear of major accidents and health fears, visual blight
Green belt housing Urban sprawl, pollution, landscape loss and spreading congestion
City centre development Traffic, car parking, sense of space, noise, community deficit
Onshore wind turbines Visual amenity, noise and wildlife in rural areas
Case study 6.12 Quality of the built environment in

the UK
Design Council Cabe emerged from a government agency in the UK but was set up to
be a neutral gatekeeper for good design in the built environment. It has concern both
for the quality of the building or infrastructure design and its standing and sense of
place in its environment. Design reviews are used to deliver judgements on elected or
key buildings and facilities and to suggest improvements for the social and commercial
potential of places. It has a strong role in the design of open spaces and works with local
authorities in particular to train them to understand and encourage good design through
the planning approval system. It is an exemplar for public architecture. In its report on
purposeful design of homes, Design Council Cabe suggests31:
• Putting people at the heart of the design process.

• Acknowledging diversity and difference.
• Offering a choice of design to accommodate all users.
• Encouraging flexibility in use.
• Providing buildings and environments that are enjoyable for use by everyone.
The ‘impact’ value driver used by Cabe is the capacity to create place, the experience of
users and visitors and enjoyment in the use of the building, its appearance, quality and
‘clarity of composition’ in terms of its detailing and ability to present a distinct corporate
image. It offers a design quality mark.
These aims hint at the connection between good urban building design and the true suc-
cess and sustainability of built environment projects. To achieve such aims, there is a need
for local planning authorities to have the authority to impose on developers the necessity to
tackle poor health and social inequality and to cross-connect different agencies to provide
effective infrastructure. This sometimes requires measures to accelerate the pace of provision
as well as ensure design quality. Local democratic accountability should reflect needs and not
just a resistance to development, which often requires local authorities to present develop-
ment opportunities and seed funding for exemplar developments.
Loosemore et al.32 believe that architects should take a greater interest in urban design issues
because they are in a unique position to develop, if not lead, projects and could have a critical
impact on their success. In a survey of UK local authorities, fewer than half were revealed to
employ an urban designer to assess planning applications for design quality and only 26 per
cent turn down more than 20 projects per year on the basis of poor design. The reasons given by
authorities for allowing poor design are lack of policy guidance and the possibility that other eco-
nomic benefits to the community might be lost if they press too hard. Also, because of resource
pressures, they have not used pre-application negotiation to improve a scheme’s design and help
it to enhance a scheme’s context. This raises another issue about the ability of the public planning
process to filter out poor design and to consider it within a wider context of urban design.
The National Planning Policy Framework (NPPF) in the UK seeks to encourage the devel-
opment of good design in local plans.33 It lists the following planning objectives in relation to
the impact of good design on urban environments:
• local character, including landscape planning
• safe, connected and efficient streets
• network of green spaces and public spaces
• design to prevent crime
• design to promote security
• access and inclusion
• efficient use of natural resources
• cohesive and vibrant neighbourhoods.
These can be adapted to apply to the renewal of existing neighbourhoods as well as new
developments.
The Design Quality Indicator34 uses a six-point scale to assess a scheme’s ability to delight
and its build quality and functionality from the perspective of client, designers and stakehold-
ers. It offers another means of measuring design quality objectively. It has been used on the
briefing, mid-design and post-occupation stages of construction projects to provide a frame-
work and test its success. Case study 6.13 gives an example of the design governance process
as applied to a sensitive urban site.
Case study 6.13 City centre mixed-use development

This £300 million, five-year mixed-use city centre development in the UK was presented
for planning permission by a private property developer with a particular interest in city
centre residential development on brown field land. This was part of a larger scheme
by the city council to regenerate the old industrial area and regain a valuable waterside
site for public enjoyment and allowing better usage of the existing docks and access
to important historical sites. Any developer would receive partnership money towards
the scheme to help the additional infrastructural costs but would also have to sell the
scheme with less parking as a congestion reduction measure.
The scheme was commercially viable, potentially highly advantageous to the city
and was going to clean up an obsolete gas works. However, it took nearly four years to
get through the planning process because of strong community objection to the first two
proposals made, resulting in bad publicity for the developer. The scheme was eventu-
ally passed by the dogged determination of the developer to overcome the hostility
that had now been engendered and using a neutral third party to publicly consult to
uncover the complex set of variables that might satisfy public objections and still remain
viable. The master plan was redone to suit. Simple suggestions were taken on board by
producing better sight lines to the cathedral from key viewpoints, providing more open
residential views and wider ranging public access to the waterside around the residen-
tial areas and offering more car parking.
This scheme presents an obvious case for negotiated urban design even though the
developer thought it had taken into account public access and leisure requirements.
Two reasons have been put forward for the strong public reaction:
• Sense of ownership of an area of the city connected to its history and the need to
enhance this with any new development.
• Co-ordinated lobbying provided by the civic society to organise the latent feeling
that existed and the lost city centre parking that would result.
This case study indicates the range of stakeholders who have a say in the design of a pro-
ject. Not all will be a positive influence but some will have a disproportionate interest in the
compromise that is reached in a final urban planning approval.
The environment around buildings and the importance of creating space and place are
elements of the bigger picture of the effectiveness of infrastructural design. Buildings work
better if they can be accessed easily, add to a pleasant environment and are visually appropri-
ate. Dealing with the impact of additional traffic is important, as is preserving heritage and
community. Sight lines for existing users of other buildings and access around large build-
ings and rights of way can be enhanced.
Conclusion
It is important to understand the iterative nature of a building and the infrastructural design
applied to its environment and allow time for reflection and development. Management
needs to optimise creativity and consider design impact in its assessment of value and per-
formance. Design management by definition is integrative of the complex web of design and
will pay back with long-term benefits, if it is operated equitably to design and construction
objectives and with understanding of client values. There is an expectation for transparency
in design and the need to provide neutral advice that is untarnished by conflicting interests.
Construction has suffered from poor quality design that has resulted in unsafe buildings.
Strict design targets now exist to ensure buildings are more environmentally friendly in terms
of carbon usage, low operating costs and choice of construction materials. Healthy buildings
raise productivity because people like using them; this aspect of design should be given a
higher priority and must be evidence based.
The management of design is most applicable in controlling time, cost and quality from
outline brief to detail stage. It is characterised by the input of many more specialist designers
and suppliers. BIM has been adopted to integrate this work by using a common language and
protocols that are modelled digitally to provide common access to a combined 3D model.
At the detail design stage, management involves a two-way flow between the production
process and direct production of components using computer-aided manufacture (CAM).
A design manager is responsible for ensuring that procured packages have the correct design
inputs and produce their design outputs for approval, which, crucially, means buildability
and the elimination of errors to reduce wasteful rework and delays.
Value management is a key companion to design management and, with its potential to
release more into the budget, manage change and more closely match client requirements, is
certainly a much more integrated approach than a solely client–architect relationship. It has
the potential to look at the strategic process as well as the functional components of design
and to match them to other life cycle and contextual issues, such as urban planning, funding
and tax breaks.
The new challenges for integrated design management are:
• Providing a value enhancing and creative service to the client by understanding their
business and enabling a co-ordinated approach to the elimination of design waste.
• Using information modelling to develop the integrated database resource necessary
because of the wide variety of buildings and the complex interaction of components.
• Teambuilding using excellent communication on complex projects. This can be done
through co-location or virtually by standardising electronic documents. Face-to-face
communication should, however, take place wherever possible.
• Reducing overall project implementation time.
• Working in the context of sustainability and using new technologies to reduce carbon
usage and make buildings more liveable.
• Co-ordinating the backwards linkage of buildings and civil structures with urban design
to achieve true project success, taking into account the final users and the social impacts
of these constructions. Depending on the statutory planning process alone is not effective.
• Gaining the interest of the client and other stakeholders in the design context so that
urban design is enhanced by new buildings that have specifically tried to compliment the
urban sense of place.
Design may be managed effectively by a designer or a non-designer who may be the archi-
tect, the project manager or the design build contractor. Efficient information flow between
clients, designers and contractors is a key aspect of productivity. This may be enhanced by
early involvement of the contractor in the design and the use of a single design and construc-
tion co-ordinator.
Notes
1 Caplan W. (2016) Buildings are for Everyone: Human Ecological Design. Faringdon, Libri
Publishing Ltd.
2 Hirano T. (2000) The Development of Modern Japanese Design. in V. Magolan and R. Buchanan
(eds), The Idea of Design: A Design Issues Reader. Cambridge, MA.
RIBAplanofwork.com (accessed 23 July 2017).
4 Maguire R. (1980) A Conflict between Art and Life. In B. Mikelledes (ed.),Architecture for People.
London, Studio Vista, pp. 130–132.
5 Gray C. and Hughes W. (2001) Building Design Management. Oxford, Butterworth Heinemann.
6 Gray C. and Hughes W. (2013) Building Design Management. 2nd edn. Abingdon, Routledge.
7 Construction Industry Council (2000) Project Management Skills. London, CIC, p. 11.
8 Gray and Hughes (2001).
9 RIBA (2013)
10 Gray and Hughes (2013).
11 Institute of Value Management (2018) What is Value? Available online at: https://ivm.org.uk/what-
is-value-management (accessed 27 March 2018).
12 Simister S. (2007) Managing Value. In R. Turner (ed.), Gower Handbook of Project Management.
Aldershot, Gower, pp. 303–314.
13 Charles Rich Consuultancy (2011) What is buildability? Available online at: http://www.
buildabilityadvice.com/page2.html (accessed 8 August 2011).
14 Evidence Space (2018) Architecture that’s Built to Heal. Available online at: https://www.british-
gypsum.com/evidence-space/heal/architecture-thats-built-to-heal (accessed 29 July 2018).
15 Balkan A. and Kalbag L. (2018) Ethical Design Manifesto Hierarchy. Available online at:
https://2017.ind.ie/ethical-design/ (accessed 27 March 2018).
16 Egan J. (2008), quoted in Wolstenholme A. (2009) Never Waste a Good Crisis: A Review of Progress
since Rethinking Construction and Thoughts for Our Future. London, Constructing Excellence, p. 8.
17 Ibid, pp. 12, 19.
18 Sunesis (2018) Willmott Dixon–Scape Joint Venture. Available online at: https://www.willmottdixon.
co.uk/how-we-do-it/sunesis (accessed 30 July 2018).
19 Bryden Wood (2014) Eco Canopy Primary School Projects. Available online at: https://www.
brydenwood.co.uk/projects/ecocanopy-primary-school-projects/s1238 (accessed 30 July 2018).
20 Cartwright Pickard ((2018) Nurture Future: Standardised Schools Concept. Available online at:
http://www.cartwrightpickard.com/projects/offsite/nurture-future (accessed 30 July 2018).
21 Cousins S. (2011) A New Uniform: Construction Manager, pp. 17–20, June; Tarmac (2010)
Welcome to the Surprising Future of Construction, September.
22 OECD Centre for Effective Learning Environments (2011) Standardised Design for Schools: Old
Solution, New Context? International Web Conference Seminar Series. Available online at http://www.
oecd.org/education/innovation-education/centreforeffectivelearningenvironmentscele/48224041.pdf
(accessed 4 April 2018).
23 Future of Construction (2016) Cases: Winsun. Available online at: https://futureofconstruction.org/
case/winsun (accessed 11 December 2017).
24 Statt R. (2017) quoted in. How Elon Musk and Other Innovators Have Pushed the Needle in
Construction. Available onoline at: http://www.bimplus.co.uk/people/how-elon-musk-and-other-
innovators-have-pushed-needle (accessed 29 March 2018).
25 World Economic Forum (2017) Shaping the Future of Construction: Insights to Redesign Industry.
White Paper. London, The Stationery Office.
26 UK Innovation Funding Service (2018) Establishing a Core Innovation Hub to Transform
UK Construction. Available online at: https://apply-for-innovation-funding.service.gov.uk/
competition/142/overview (accessed 30 July 2018).
27 Autodesk (2018) What is BIM? Available online at: https://www.autodesk.com/solutions/bim
(accessed 27 March 2018).
28 RIBA (2013).
29 Ming S, Anumba M. and Sexton M. (2004) Managing Changes in Construction Projects.
Available online at: https://www.researchgate.net/publication/239927503_Managing_Changes_in_
Construction_Projects/download (accessed 12 August 2018).
30 Sun M. and Howard R. (2003) Understanding IT in Construction. London, E&FN Spon.
31 Design Council Cabe (2017) Purposeful Design for Homes and Communities: Design Council
Response to Housing White Paper. Available online at: https://www.designcouncil.org.uk/sites/
default/files/asset/document/Purposeful%20design%20for%20homes%20and%20communities%20
Design%20Council%20response%20to%20the%20Housing%20White%20Paper.pdf (accessed 12
April 2018).
32 Loosemore M., Cox P. and Graus P. (2004) Embarking on a Project:- The Role of Architects in
Promoting Urban Design as the Foundation of Effective Project Management. in Architects
Handbook of Construction Project Management. Newcastle Upon Tyne, RIBA Enterprises, p. 107.
33 Ministry of Housing, Communities and Local Government (2014) Design Guidance: What
Planning Objectives Can Good Design Achieve? Available online at: https://www.gov.uk/guidance/
design (accessed 12 April 2018).
34 http://dqi.org.uk.
7 Project organisation and leadership
What? This chapter looks at the development of structures and culture that can further integrate
the project organisation and ensure its effectiveness at each stage of its life cycle. This requires
strong ethical leadership. Project teams are usually made up from different functional depart-
ments within the same organisation or from other organisations who are brought together to
deliver a specific project over a set period of time. The objectives of this chapter are to:
• identify different structures under which projects may be run and discuss their impact
• consider the structure of supply chains in construction projects
• define external factors and their effect on organisational structure
• consider the culture and values of project organisations and the factors that are important
for creating an effective project culture that meets the needs of the client and motivates
the project team
• identify the principles and culture of partnering and integrated project teams
• review excellence models and project maturity
• examine the theory and practice of effective project leadership.
Why? Project organisations are structured purposively to complement project goals and the
environmental context. Leadership should be able to effectively communicate and integrate
the goals of varied specialists with the goals of the client. The challenge in construction pro-
jects is to develop a single culture to ensure there is a synergy within the team that removes
opportunistic and adversarial attitudes. This is even more important with technological
changes that require greater integration of construction information. There is also the need
to respond to changing economic conditions and drive out waste. We examine the impact of
integrated teams and collaborative relationships.
How? This culture of greater integration and synergy depends on members of the project
team having good relationships with the client and with each other. Transformational leader-
ship fits with the theme of projects managing change. Clients play a major role in construction
projects and get involved in the value analysis and risk allocation elements of the project. The
structure of a project will vary throughout its life cycle, but the very different organisational
cultures of design and construction need to be integrated and organised flexibly. The project
may also need to adjust in response to changing external and market influences. Chapter 8
complements this chapter by considering the softer skills of people management.
Organisational structure
Organisational structure differentiates specialist skills and seeks to delegate tasks in a
way that ensures coverage and prevents overlap of responsibility. Classically, a chain of
Project organisation and leadership 173
command is created and a regulated span of control of five to six people, so that everyone
restricts the number of relationships they need to engage in. Weber1 developed the term
‘bureaucracy’, defining it as a hierarchical, permanent organisational structure with many
layers and a dependence on procedures. Later research by Woodward2 indicated that a more
modern application of bureaucracy involves an average span of control of 23. This larger
span of control leads to fewer layers of authority and better communication. It is clear that
project organisations thrive on broad spans of control. Toffler3 suggests that a flat, flexible or
organic structure is best able to cope with change.
Project organisation cuts through the principles of business organisation and sets up alter-
native integrated structures because of the need to work with many different organisations at
different levels of authority and to closely co-ordinate interlocking work. However, the exist-
ence of ‘silos’ between disciplines is still common and more integration is needed. Walker4
maintains that, in practice, construction projects have three major components influencing
organisational structures: (1) the way the client and project team relate, (2) the way the design
team is organised and (3) the integration of the contractor into the process. Figure 1.3 in
Chapter 1) is a simple model showing a well-integrated organisational relationship using
a project manager. However, the project manager, as the leader or co-ordinator, often has
other roles to play and varying levels of authority depending on the contract provisions. The
structure of a project and the role of the project manager are partly influenced by the procure-
ment and contract type chosen, but also by the degree of collaboration that overlays it. This
creates a large number of possible combinations. The key issues to address are integration of
structure to suit the client’s priorities and optimisation of working relationships within the
team chosen.
The organisational structure for a project essentially breaks down into three types: func-
tional, matrix or project-based, as shown in Figure 7.1. The matrix organisation arises because
team members are accountable to functional and project authority. The matrix organisation
may be weak or strong in projects depending on whether authority is held by the functional
manager (weak matrix, as 1) or the project manager (strong matrix, as 2). Some organisations
operate as project organisations, where all activities are project-based (as 3). Comparative
authority is indicated in 4.
Construction and engineering project teams have traditionally employed a strong sec-
onded matrix with specialist functional roles drawn from professional specialists with
pronounced differences in values, attitudes and behaviour. Project managers try to build a
project culture.
Of particular interest in the context of this chapter is the degree of authority that the pro-
ject manager exercises, as shown in diagram (d) of Figure 7.1 and therefore the scope of their
leadership. From (d) it can be seen that the project manager’s authority increases if a direct
line exists between them and line management. If they have to use staff from other functional
departments or organisations they need co-ordination skills. If these staff are seconded to the
project, the authority of the project manager is strengthened. Table 7.1 indicates the project
manager’s focus in relation to various types of project. Large projects may aspire to a pure
project structure where the core project team is full time and the project manager has full
authority over seconded personnel from other organisations.
Each of these organisational structures has advantages and disadvantages. In function-
based projects, the project co-ordinator has to be diplomatic if calling on the use of other
functionally-based personnel who are primarily carrying out non-project activities and the
project manager needs to firmly agree resource usage. In matrix organisations, personnel
are assigned to various projects and project managers need to fight to gain priority use of
Chief Project Chief

executive co-ordinator executive
Project 1
Functional Functional Functional Project Project Project

manager 1 manager 2 manager 3 manager 1 manager 2 manager 3
staff staff staff F1 staff F1 staff F1 staff
(a) Functional organisation – weak matrix (c) Project organisation – strong matrix
Key
Senior Chief Chief
staff Staff engaged in a project activity
partners executive executives
Weak authority
Consultant Principal Specialist Full authority
organisations contractor contractors
Full authority
Project
staff staff staff
manager 1
Project
staff staff staff
manager 2
No authority
Project Functional Matrix Pure project
staff staff staff
manager 3
(b) Seconded matrix organisation – strong (d) Comparative authority
Figure 7.1 Authority: functional, project and matrix organisation types
their time, making progress slower than expected. In large projects, personnel are mainly
seconded. Personnel may feel a sense of loyalty to a particular project but also a vulnerability
as they know it will come to an end. Sometimes this situation creates inefficiency towards
the end of a project as organisations look for other work and staff become attached to their
next job.
Special features of the construction industry

Each construction project is temporary, unique and will impose a set of specific objectives.
These influence its organisational principles and leadership structure. Some objectives are
common to one-off projects facing tight time, cost and performance constraints. Others
are specific to the culture of construction, such as low technology. In construction, the
product must be durable, is often constructed in situ with a greater need for contingency
planning, e.g. in response to poor weather, and must be able to deal with larger tolerances.
It has a slow lead-in time during which client objectives and markets might change. The
environment is also dynamic so it has to cope with spontaneous decision making. Contracts
are harsh, with major penalties for failure. However, the construction industry has a track
Table 7.1 Influence of organisational structure type on projects
Function Project type
Functional Matrix Seconded matrix Pure project

Project manager Little or none Low to moderate Contractual High to total
authority
Project personnel 0–25% 15–60% 50–95% 85–100%
involvement
Position of Subservient to Subservient Leadership and Executive decisions
project functional or equal to direction
manager managers functional
managers
Title for project Project Project manager/ Project manager Project manager/
manager role co-ordinator/ project officer project director
project leader
Type of project Minor change Implementing Most types of Very large construction
to existing change to work new build and projects created as
product, e.g. organisation, refurbishment business units or
maintenance e.g. space project singular specialised
upgrading planning and Design and projects such
and implementation construction as IT, roll-out
improvement inputs programmes,
Facilities redecoration and
management refits
Project manager Diplomatic Negotiating Creating an Productivity and
focus approach adequate time integrated teamwork
Integration of allocation team
functions Facilitating good Planning and
communications leadership
record of schedule slippage in time and cost, which produces conflict. Construction projects
have to manage the integration of a large number of specialist organisations thus creating a
particular project culture.
Although some staff will be totally committed to the project, e.g. the project manager,
main supervisors, the contractor’s quantity surveyors, planners and personal staff, other
consultants will spread their time between different projects at the behest of their own
organisations. For example, a consultant quantity surveyor might be committed to valuing
work on two projects and an architect or engineer might be working on two or three smaller
design projects simultaneously. The involvement of some consultants or subcontractors in
the project could be limited to only parts of its life cycle. Project managers need to plan for
this using the master plan to ensure ongoing communication and quality assurance in the
finished project.
Generally, it is assumed that large construction projects have pure project organi-
sations, but due to the specialisation of organisations in the industry and the division
between design and assembly, the authority structure is likely to approximate a seconded
matrix. Normally, functional staff are employed by separate organisations and the project
manager buys in specialist skills for the project. As they deal with outside organisations
they are managing a supply chain, which is subtly different from employing a person,
because the subcontractor is more autonomous in deciding how their service might be
supplied to satisfy the contract. In practice, project managers prefer to focus on a contact
person in the organisation to ensure that team building efforts and motivation are passed
on to the specialist organisation. In supply chain language, design and main contractor
packages are called tier one. These organisations are paid by the client through the project
manager. Tier two structures comprise subcontractors, who are normally paid by tier one
contractors or consultants. The structures can still be varied and complex (see Chapter 4
on procurement).
In the seconded matrix organisation the most direct project personnel are seconded full
time to a project, even if it is for a limited part of that project. Case study 7.1 is an example
of the seconded organisation. Significant small specialists manage their part of the process
by making regular visits.
Case study 7.1 Typical seconded matrix organisation

This is a new build project in the Southwest of England worth £26 million. The client is
a national company and the brief is to construct a new HQ. The project has a seconded
matrix organisational structure (Figure 7.2) and will be managed onsite. The design
and build company needs to employ project personnel, some of whom may need to
be shared with another project. Some shorter-term staff, such as the engineer, may be
employed through an agency.
The staff were directly employed by the design and build company to manage the
site. Responsibility for particular jobs was assigned to each individual to ensure that
each job was covered. In addition, some services were supplied by separate design
personnel not based onsite. This organisation provides an example of a decentralised
site whereby the project manager holds executive control and reports directly to the
design and build director, who is formally accountable for the actions of the company.
Because it is a design and build contract there is a much clearer line of authority even
though some design personnel are supplied by different organisations
Table 7.2 shows the roles that emerged.
Project manager
Procurement and Production Quantity

Job architect
design manager manager surveyor manager
Architectural Architectural Setting-out Trainee

Junior QS Junior QS
technician technician engineer (agency) manager
Section Section
manager manager
Figure 7.2 Typical organisational structure for a medium-sized project

Table 7.2 Roles assigned in Case study 7.1
Project manager and Employed. Executive control of design construction, planning and
health and safety finance and specific accountability for onsite health and safety
officer
Quantity surveyor Employed. Financial control of valuations, change control and
manager estimating
Junior surveyors Employed. Responsible for re-measure and progress onsite,
procurement and checking of materials
Design and procurement Employed. Responsible for initiation of design, management of
manager design process, procurement and tendering within supply chain,
subcontractor selection, drawing up of method statements
Architect, service Seconded. Responsible for scheme and detail design, quality
engineer and inspection and compliance
structural engineer
Production manager Employed. Overall control of production, compliance with
BREEAM rating required, health and safety oversight and
method statement implementation, quality improvement
Section manager (trainee) Employed. Responsible for day to day management of relevant
subcontractors or section of work, management of dimensional
checks, ordering of bulk materials, organising of safety
inspections and records, addressing of technical queries,
dealing with access requirements
Setting-out engineer Agency. Responsible for creating setting-out grid, co-ordinating
stations and level benchmarks, checking critical dimensions
and levels after setting-out by steelworkers, bricklayers,
cladding and ground workers, checking base, floor and roof
levels, plumbing in lift shaft and main elevations and columns,
setting-out of drains, roads and car parks and level checks
Centralisation of authority
The degree of centralisation is very much dependent on the amount of authority given to
the project manager. Under centralisation a contractor will impress procedures and process
on the project set up. Resourcing and other major decisions will be made by the contract
manager. Contractual issues will be dealt with and the supply chain appointed by the office,
including contractual arrangements and supply chain appointments. Day to day co-ordination
with the supply chain and the project team will take place at site level. Small and medium-
sized projects are likely to be centralised to gain from economies of scale. The site culture
is likely to be contractor defined. The client will communicate through the project manager,
who is likely to be the design leader or the design and build contractor. The architect will be
the arbitrator of any disputes and will chair meetings.
Decentralisation refers to the delegation of project control and supply chain procurement
to project level, which allows a more autonomous culture to be developed and a closer under-
standing between the project team members who, although dealing with different levels of
project management, will benefit from a closer knit relationship with all decisions being made
at project level. In this structure a strong leader is required who can handle decisions on the con-
struction and design streams and provide reporting of all direct to the client. The client’s main
Client
Construction Construction
Client Client
director Architect director
Contract manager Contract manager Project Client Project Project

manager manager manager
Site manager Site manager Site manager Site manager Site manager Site manager Site manager
Architect
staff staff staff staff staff staff staff staff staff staff staff staff staff staff
Figure 7.3 (a) Centralisation and (b) decentralisation
point of contact is the project manager, who will distribute all instructions and be responsible
for the flow of information between the project team, although the client may hold contracts
with individual members of that team. This elevates the authority and seniority of the project
manager, who will also chair meetings. This is a common situation for large construction pro-
jects. Decentralisation is compared with centralisation in Figure 7.3.
Case study 7.2 describes an organisation changing its policy in response to developing
multiple projects.
Case study 7.2 Organisational structure of major

development projects
A large developer in the South of England developed its portfolio of building land to take
account of what was becoming available and what would be granted planning permis-
sion to take on mainly brown field development. From a marketing perspective, it noted
the rising demand for (and price of) ‘smart residential’ property in city centres and the
planning authority’s desire to see the decontamination of past industrial sites and their
redevelopment for residential and leisure use. Over a period of time, the developer
has moved from building on small green field sites to engaging in large longer-term
mixed-use schemes. This required moving from standardised footprint designs to more
intensive land use in apartment blocks to cover the cost of redevelopment and address
local housing market demands. Such mixed-use schemes require a comprehensive
master plan to satisfy the planning authority and add value with social amenity. Rate of
build depends on attracting tenants or buyers for commercial, leisure and new industrial
uses, sequencing the whole to suit the general constraints of the market. One of the
major planning conditions was to assure a mixed development offering employment
opportunities and an enhancement of leisure amenities. Developer imperatives meant a
dynamic plan and controlling the rate of house building to suit the market.
One such project involved decontamination and regeneration of a messy industrial
site in the vicinity of obsolete dockyards. It had a £300 million budget over a build period
of four years, with cash breakeven eight years after the project’s inception. The prepa-
ration works included clearing away a disused power station and electrical substations,
demolishing chemical factories and remodelling the dockland area to maximise access
to the new residential and leisure facilities being provided. In its place were constructed
seven to nine storey flats adjacent to the dock area, a new marina and basin, park
and wildlife areas, luxury housing and higher density town houses, a new transport
exchange, shopping and factory facilities. Possible reinstatement of a railway link was
also suggested. The traditional well-defined housing scheme had become a regenera-
tion plan in its own right and mainly at the developer’s expense.
Structure
This development led the company to move away from the typical centralised structure
required for the small to medium-sized housing scheme, utilising onsite managers, bulk
purchasing and standard house designs. This approach was replaced by the estab-
lishment of a suite of operational and executive site offices on the ‘muddy side’ and a
smart sales centre to sell the houses segregated fully from the site traffic. Two directors
were housed alongside the site staff to provide strategic direction for future and ongo-
ing planning, the production and design strategy and sales and marketing. The project
operated as a business in its own right, with direct accountability to the company’s
managing director.
Subsequent to the developments described in this case study, the company decided
to centralise the directors offsite and make them responsible for multiple-project portfo-
lios because it had been given the go ahead to develop a similar scheme in the same
area. Thus project organisation can be adapted to suit varying business circumstances.
The sales office and site offices remained, but the strategic control of the project was
made more remote. It is important to allow for organisational changes during the life
cycle of a project.
Case study 7.3 indicates the contingent approach to choosing an organisational structure
for a large project. The structure is selected by the needs of the project. The project manager
needs to be happy with the structure so that it enhances communication and effectiveness.
Case study 7.3 Optimising project organisational

structures in Egypt5
A study in Egypt tested the use of a tool for selecting appropriate organisational struc-
tures for construction projects. It considered functional, project, matrix and composite
structures and marked them on the basis of project success. The factors used for pre-
dicting selection of a particular organisational structure were project size, percentage
of mother company turnover, length of project and type of project.
The researchers found that, in very large marine projects, a composite of project
and matrix structure was best. In more specialist utilities-related (involving fewer
trades) projects, a pure project organisation worked best. It did not work in a smaller
sanitary project. Choice of structure is also influenced by cultural factors, as projects
are open systems.
Although we have looked at some case studies to illustrate project arrangements, many of
the influences on the organisational structure and culture of projects come from the market
and wider environments in which they operate. Different historic influences, cultural pref-
erences and favoured contractual and procurement arrangements will operate in different
countries. For example, developing countries within the Commonwealth are likely to operate
conservatively as a result of strong historic influences; North America operates a more inte-
grated system using an independent project manager; and Germany expects projects to have
a strong engineering lead. These external influences are considered in Chapter 3.
An integrated partnering approach is more dependent on trust than structure and
requires a strong interdependency built up in a short time. An ultimate illustration of this
situation is given in Case study 7.3. A strategic partnering approach using the same team
on future projects consolidates the learning process that has enhanced trust and reduced
the risks of interdependence. In difficult economic times the temptation to ‘test the mar-
ket’ may break the commitment to ongoing projects as competition will be keener. This
destroys trust and learning.
The inter-organisational context

In construction, in all but the most simple of projects, a project has several organisations
working for it and creates its own structure. Each organisation has its own autonomy but
submits to the authority of the project manager. A contractor co-ordinates this supply chain
(see Figure 7.4). The challenge for the manager of projects involving a number of independ-
ent organisations is to bring together seconded individuals from different organisations and
form them into an effective project team. It is likely that each firm or organisation will have
conflicting aims and objectives, different cultures and varying degrees of allegiance or com-
mitment to the project. Effective project management offers a means of unifying overall
processes and presenting opportunities for participants to place the demands of the project
alongside or even above those of their own enterprise. This complex kind of matrix structure
raises two significant management issues: managing in the context and culture of the firm or
organisation and managing in the context and culture of projects.
A further complexity arises where, as is common in the case of construction, organisations
work in several different projects and so the project manager needs to compete with other
project managers for the services of the same organisation. This can give rise to all sorts of
The inter-organisational context
Org Org Org Org

A B C D
Project
Figure 7.4 A construction project involves a number of independent organisations

Org Org Org Org

A B C D
Org
B Project 1
Project 2 Org
E
Project 3
Project 4
Figure 7.5 Complex matrix of firms and projects
problems between the organisations and creates a potential for conflict between the commit-
ments of each firm and the project. It also means that organisations submit to different project
cultures and personnel must build relationships within each project, which can be confusing.
In most cases project managers try to get a fully seconded manager.
Figure 7.4 has also greatly simplified the situation because it relates to a single project. In
practice, a portfolio of projects may be involved, as shown in Figure 7.5.
Again, Figure 7.5 offers a simplified view as, in reality, sometimes huge numbers of
organisations are involved in one project; however, they do not all work on it at the same
time. Organisation C clearly has the largest network of relationships. In reality, there will be
different mixes of firms involved for each project, each with their own structures, cultures
and behaviours. Case study 7.4 provides an inside view of how one developer organised
multiple projects in an ongoing development.
Case study 7.4 Multi-project mixed-use development

This £350 million project takes place over five years on a prime 16-acre derelict
brown field site in the centre of a provincial city. The site is very sensitive and plan-
ning permission has only been agreed with very stringent conditions to maintain site
lines, properly connect the city centre to the waterside and ensure full public access.
The proposal provides for leisure, retail, commercial and residential use. The latter is
core to the private developer in terms of cash flow and profit. The development links
directly to a highly popular leisure sector and a significant commercial venture already
in place on the site. The site is in a desirable location facing the harbour. A master
plan is in place. Due to the sensitivity of the site in relation to the need to conserve
the character of the city and associated heightened public interest, a development
director has concentrated their efforts on marketing the subsequent phases of the
(continued)
(continued)
development and bringing them through the planning process whilst also maintaining
good relationships with the local community. The development director manages the
public face of external stakeholders to ensure a smooth flow of development authori-
sations during the project’s various phases.
The developer does not employ an extensive project team but seeks instead to
outsource the design and tactical project management. The first phase is procured
by three design and build contracts. The second phase is a residential contract for
the developer built on their behalf but let directly by them. On each of these con-
tracts there is an out-sourced team for the client, consisting of a cost consultant, an
architect and a project manager. These report to the construction director who co-
ordinates the whole. The construction director has taken on the implementation and
later marketing stages of the development and is maintaining the master programme
for parallel and serial projects. Parallel contracts have impacted on each other and
need to comply with the overall constraints of the site. This has led to a loose struc-
tural organisation, which also needs to provide a flexible response to the market
forces that determine the speed of completion of the development and the logistical
access and environmental constraints that affect the methodology and sequence of
separately let contracts.
The design has been spread out between architectural/engineering practices to
reflect specialities and inject variety. Leisure, commercial and residential sections
have been allocated and the master planners have been retained for more detailed
involvement in one area. The process is managed by phasing and allocation of differ-
ent buildings to different contracts, so that design management is linked to the project
procurement route chosen and is not developed centrally. The construction director is
the one main player who co-ordinates the concept design for the developer. Figure 7.6
shows the emerging organisational structure.
Development board
Development director Construction director
Stakeholder Leisure Commercial Residential Infrastructure

management
Planning Concept architect Concept architect Concept architect Civil engineer

permission Cost consultant Cost consultant Cost consultant Cost consultant
phase 1 Services engineer Services engineer Services engineer Services engineer
D&B contractor D&B contractor Developer PM D&B contractor
Planning Supply chain Supply chain Supply chain Supply chain

permission
phase 2
Figure 7.6 Multi-project organisational structure

In the more complex amalgam of firms and projects, developing a greater understanding
of organisational culture and behaviour and the nature of the relationships that exist between
firms is seen as being increasingly important in ensuring project outcomes and raising the
performance of the whole project process. Groups of similar projects are called programmes
and programme managers try to develop a central culture as many organisations move across
a sequence of projects for the same client. In other situations the client may outsource the
whole programme in order to stick to their core business.
Supply chain management

Supply chain management (SCM) encourages collaborative relationships between the differ-
ent organisations involved in a project. A project supply chain can be defined as ‘that set of
firms in external transactions commencing with a principal contractor and terminating when
external transactions switch to internal ones’.6 Traditionally, it ends with the handover of
a finished facility to others. The project supply chain, however, extends from the commis-
sioning client to the suppliers’ suppliers and, in the other direction, to the client’s customer.
Client chains, design chains and construction chains can all exist. Supply chains apply where
the project grows in size and needs to outsource supply beyond the commissioning organisa-
tion. A project supply chain represents a series of subcontracts of specialist functions, which
can extend to several tiers of sub-subcontract (see Figure 7.7) assigning responsibility for
elements of the construction. Most construction projects require specialist suppliers because
they have a wide range of specialisms. Under traditional procurement there is likely to be
a separate design chain and under PPP procurement there may also be an extended chain
to manage and operate the facility on behalf of the client. The structure of supply chains or
matrices can be set out in terms of the project phase and in tiers or levels.
2nd tier
1st tier
Commissioning 2nd tier
Principal
client designer chain
2nd tier
1st tier
2nd tier
Client’s chain
2nd tier
1st tier
2nd tier
Principal
contractor chain
2nd tier
1st tier
2nd tier
2nd tier
1st tier
2nd tier
Commissioning
and operation
2nd tier
1st tier
2nd tier
Figure 7.7 Project supply chain

Project organisations bring together a wide range of specialist services (suppliers), which
need to be structured to work together effectively, including planning, design and execution.
Some of these organisations work together simultaneously and all must pass on a level of
quality and tolerance that provides a foundation for the work of others. This requires account-
ability to project goals and co-operation but also a sense of responsibility towards each other.
The supply chain or coalition as a universal structure recognises the interrelationship at the
various levels and interfaces of work that require organisation. Construction often exhibits
fragmented processes and adversarial relationships. The project manager plays the key lead-
ership role in co-ordinating project goals and managing effective relationships.
The basis of supply chain management is collaboration. It represents a desire to be more
customer focused and to integrate the specialist process into the whole, which assumes that
the customer is the next organisation down the chain. The main objective of supply chain
management is collaboration to provide a win–win competitive advantage for both partners
and savings for the client.
Traditionally, adversarial relationships exist in construction and adopting supply chain
management assumes overcoming these. The key elements of SCM are shown in Figure 7.8.
Jones7 identifies the following specific barriers facing SCM and the establishment of col-
laborative relations:
• Eighty per cent of the industry’s clients work on small or non-repetitive construction
programmes, which means that less than 20 per cent of them have the commitment,
knowledge and necessary leverage to engage in network competition.
• The transient and short-term nature of construction projects, processes, teams and
relationships.
• Present procurement strategies with their emphasis on contracts and competition are
based on price, with few negotiated repeat tenders and a low trust base.
• Deeply embedded adversarial relationships and opportunistic behaviour.
• Fragmented demand, supply systems and processes.
• Lack of possible partners with appropriately developed collaborative capability.
• Multiple and hidden goals.
• Major power imbalances between supply chain members.
• Lack of the contractual competence and trust needed to underpin relationships.
• Insufficient resources and time to build relationships, integrate processes and manage
logistics within a one-off project environment.
• Differences in professional language, culture and procedures, which also lead to
misunderstanding.
• Lack of experience of innovations such as just in time (JIT) and total quality management
(TQM), which is seen as an important prerequisite to adopting SCM in other sectors.
Collaborative relationships
Adversarial relationships
- building trust
- cut-throat tendering
Partnering - inclusive communications
- inflated claims
and SCM - assess change for value
- poor communications
- no blame
- win–lose
- customer satisfaction
- no customer focus
focus
Figure 7.8 Role of SCM in addressing the key problems in construction

These obstacles make adopting SCM difficult, as is also the case in other countries.8
This is also confirmed by Wolstenholme,9 who identified industry fragmentation and a lack
of integration between short-term capital cost and long-term business cost as significant
issues in this regard. This suggests that supply chains should not only seek to integrate
the design and production processes in the project metrics but also the client’s objectives.
Learning to take a collaborative view, which SCM implies, involves a change from tradi-
tional attitudes. To make a good customer and a good supplier, a partnering agreement is
initially required. Case study 7.5 indicates a typical agreement struck between a group of
building-related suppliers in order to overcome industry barriers.
Case study 7.5 The ten commandments of the supply

chain alliance
Baufairbund (BFB) is an association of small and medium-sized companies located in
the North Rhine-Westphalia region of Germany. Members co-operate in the provision
and co-ordination of building and related services. The 15 members have agreed ‘ten
commandments’ to shape their collective behaviours and procedures:
1 We trust and respect each other.

2 We oblige ourselves to behave fairly and honestly within our co-operation
community.
3 We attach great importance to quality in consultation as well as in the application of
building material.
4 We always inform and advise our customers in an integrated, competent and inter-
sectoral manner.
5 We inform transparently about costs and potential savings.
6 We want energy-optimised and eco-friendly construction and redevelopment. We
oblige ourselves to use renewable resources.
7 We inform our customers in a professional and detailed way about sustainable and
energy-saving products.
8 We oblige ourselves to gain constant further education in the field of renewable
energy sources, energy efficiency and ecological building materials.
9 We commit to discuss all kinds of conflicts in an open-minded way to find fair and
suitable solutions.
10 We do our best to achieve our goals and to create a positive, fair and pleasant
atmosphere.
These agreements can be misunderstood as a conspiracy to raise prices thus specific customer–
supplier agreements may be better. The customer and the supplier therefore need to practise
complimentary codes of conduct.
Dubois and Gadde10 identify both tight and loose couplings in supply chains: tight because
of the direct effect of late delivery or poor performance on the other parties and loose because
of long lead times and intermediaries. Loosely coupled supply chains are co-ordinated with
a subsequently reduced control of key aspects such as programme and budget. Within firms
they are likely to operate on more than one project and these may have different cultures for
the reasons given above. A culture may be built up but is difficult to maintain without a com-
mitment to supply chain integration.
Corporate culture and the business environment

Corporate culture consists of an organisation’s norms, values, rules of conduct, management
style, priorities, beliefs and behaviours. The main determinants of business culture are shown
in Figure 7.9.
Figure 7.9 shows that an organisation’s culture is influenced by a combination of its own
inherent characteristics and elements of the external environment (PESTLE), identified in
Chapter 3. Culture is a term that is increasingly used but poorly understood. This is because
an organisation may have a number of cultures within it and even a detailed deconstruction
would provide an inaccurate picture of the totality of the organisation.
Harris and Moran11 identified a number of personal determinants of cultural difference:
• Associations – the various groups with which an individual may be associated, including
disciplines.
• Economy – the type of economy affects the way individuals conduct themselves at work,
how they feel about achievements and their loyalty to their employer.
• Education – the types and amount of educational opportunities.
• Health – recognises the impact of the health of workers on productivity and effectiveness
of the organisation.
• Kinship – the family and its importance in the life of the employee.
• Politics – how the political system impacts on the organisation and the individual worker.
• Recreation – recognises the role of leisure time in the life of a worker and their family.
• Religion – in certain countries this can be the most important cultural variable related not
only to the workplace but also the daily lives of people.
Handy12 usefully grouped organisations into four cultural types in order to identify their dif-
ferent characteristics (see Table 7.3). However, these are too simplistic for organisations to
Economic Political
Inherent
Social characteristics
External
Business culture
environment
Technological Influence, history and
tradition
Environmental
Legal
Figure 7.9 The relationship between business environment and business culture
Table 7.3 Handy’s cultural categories: advantages and disadvantages13
Cultural type Comments and example Advantages Disadvantages

Personal power Frequently centred on a single personality in the Very focused objectives with Control is operated from the
spirit of entrepreneurship. the potential for creativity centre and some may feel
Based on a personality, e.g. property development or and fast growth. strait-jacketed if they do
a small contracting organisation’s projects not share the vision.
Inter-dependence A loosely coupled organisation of equals. Gain from Management and Synergy is difficult to
(person) shared common facilities. Some shared aims and responsibilities are achieve. One tries to take
interests, e.g. design partnership or the culture decentralised, which over. Lack of loyalty,
developed amongst the professional team. allows for flexibility and a break ups or low retention
forum for networking and rate.
recognition. All individuals
are stars.
Position authority Bureaucratic depending on procedures and rules and Stable, predictable and Lack of flexibility and
M formalised structures. The culture is imposed, everyone knows where innovation.
(role)
e.g. large, longer running project where a formal they are.
• PM hierarchy exists.
• sta sta
Team building Aligns to the matrix organisation. Focus on getting Satisfying relationships Short-lived, hard to produce
(task) the job done, seconded personnel. and efficient working economies of scale and
The culture is delegated to working groups, e.g. organisations formed and to develop expertise in
normal construction projects where teams emerge reformed to suit needs. depth. Competition for
with their own synergies and develop from their available resources.
growing knowledge of each other. Depends on
project manager establishing a common objective
and managing interfaces.
fit into them exactly and it is possible that several cultures will emerge, which is a particular
issue between the ‘office’ and the project. Many small businesses are run as power cultures
with a dominant player. In many projects, and for much of the project cycle, there is a task
culture that places more emphasis on the team. This is an effective approach in projects
where there are lots of interlinking tasks that require flexibility. The role culture emphasises
structure and allocates tasks and responsibilities clearly. It is a bureaucratic approach that
can be effective in getting tasks done; however, it can also be obstructive and followed at the
expense of the project team and stakeholders.
Project culture
Project managers need to be aware of culture when managing projects, particularly where
different cultures are involved. Weak matrix management often fails to produce the antici-
pated results because the role-culture of the organisation is overlaid with the task-centred
culture of the project. In relation to quality, the procedures associated with systems are often
applied less effectively in task, person and power cultures, but are most effective in a role-
culture with its formalised and rule-based approach.
The authority exercised by the project manager can vary from co-ordinative to control-
ling, as shown in Figure 7.1. Winch14 refers to projects as a ‘temporary coalition of firms’,
which are brought together for a set time and purpose. Within such a framework, culture can
be harnessed to produce synergies and avoid conflict between those who have different ways
of doing things. Hopkins et al.,15 however, talk of accepted subcultures that can be tolerated
because they do not upset the overall solidarity of the project or challenge its underlying
values. The issue of trust is important for efficiency and has been quoted as a reason for
partnering16 in order to reduce the effects of harmful adversarial relationships in construction
projects.17 Lack of trust between client and contractor due to late changes or claims for extras,
between consultant and contractor over efficiency and buildability, and between contractor
and supply chain over payments and quality are common and need to be managed in order to
improve relationships.
Construction project cultures

Initially, we might automatically assume that a construction project best fits into the task
culture because a project is task orientated. This is not unreasonable, but outsourced sup-
ply chains can achieve characteristics that bend them towards a collection of roles (silos)
rather than teams. Even a large contractor’s organisation can be quite a strong matrix culture
involving different in-house functions. A strong functional influence between professionals
can result in a role-culture of meetings, reporting procedures and approval forms. The advan-
tages and disadvantages of Handy’s four types were shown in Table 7.3 and now are assessed
for construction projects.
Several organisations may be involved in the supply chain of a construction project, which
may conflict culturally or be actively organised by the project manager into a project culture,
sometimes called a virtual organisation. Many small organisations contribute to projects and
they may exhibit a strong person culture that leads to conflict between them. Fragmentation
of project tasks may take place due to the very different culture of learning that exists between
the different professions of engineering, architecture and construction management, the legal
profession and accountants. A small architectural or an engineering organisation is likely to
be a partnership enshrining a culture of entrepreneurship or a loosely coupled organisation of
separate stars. However, different organisational cultural types can be harnessed to comple-
ment each other if respect is demonstrated. Individual agreements may create competition in
the team and a lack of transparency and sharing of information.
As we have already seen, projects and organisations do not exist in a vacuum. They exist
in a much wider external system, which includes governments, competitors, suppliers and
customers. They are also affected and shaped by legal, economic, social and technological
forces. It is this wider external environment that facilitates, constrains and threatens activities
and, of course, provides opportunities.
International considerations
In international projects or multinational labour forces a communication problem sometimes
exists whereby non-verbal signals are misunderstood and there are different approaches to
problems, priorities or the interpretation of words. Behaviour may be misunderstood and
people upset or unwittingly put down. What is required here is an evolved, internationally
acceptable culture, which may require unlearning ‘fixed’ notions in order to generate better
teamwork and engagement.
Hofstede18 noted six factors influencing strategy in different countries informed by differ-
ences in work-related values; see Figure 7.10. Long-term outlook is an additional dimension
covering certain social and political approaches and recognising different emphases on pro-
gramme importance.
Although these may be disputed, and others have come up with slightly different dimen-
sions, Hofstede adopted a sliding scale for each dimension that broadly recognised some
of the critical differences. Internationally, these dimensions could have markedly different
impacts on decision making and negotiation. However, a prevailing internal project culture
at managerial level will be dependent on the client’s perspective and the project team’s strat-
egy. To develop a multicultural approach to work, some of the subliminal issues must be
recognised and agreed approaches understood. All of the dimensions are stereotypical but
do produce a base for discussion. The relative status of the interaction is also covered in
Hofstede’s Culture Compass™ tool and the tailored report it produces on key differences.
Many projects are international and have a multicultural team; for this reason, it must be
Hofstede characteristic Those with more Those with less
Power distance France Spain, China, Iran, Germany, Italy, Australia, USA, GB
Ukraine
Uncertainty avoidance France, Spain, Germany, GB, Latin Canada, Australia, Ireland, Ukraine
Individualism USA, France, Spain, GB Portugal, Hong Kong, India, Greece, China
Masculinity USA, Italy, GB, Germany, Japan, Netherlands, Scandinavia

Australia, Ireland, South Africa
Russia, West Africa, Indonesia,
Long-term outlook (later 2010) China, Japan, Hong Kong France, China, USA
Indulgence (later 2010) GB, USA, Trinidad and Tobago China, Ukraine
Figure 7.10 Hofstede’s cultural dimensions19

borne in mind that all cultural characteristics are in fact generalisations and individuals’
personalities and experiences frame who they are. A Chinese engineer will be influenced by
close family ties, but will quickly adapt to the prevailing project imperatives. On the other
hand, a German architect working with a Chinese construction company will have to under-
stand prevailing corporate culture incorporating the characteristics discussed.
Other obvious factors are language, religious, legal, educational and political differ-
ences, which must be respected in everyday project transactions. These things affect the
motivational climate and communication within a project. A difference in protocol may also
exist reflected in whether business is divorced from personal relationships or the latter are
of greater significance. Two people may share the same language but use different collo-
quialisms, for example ‘the apple of my eye’, that may cause misunderstandings. Project
members taking time to get to know each other will result in shared multicultural sensitiv-
ity and avoidance of cultural collision. Not developing multicultural sensitivity may result
in mistrust, perceived stereotyping and miscommunication, for example failing to agree on
what constitutes an agreement.20
The role of partnering

From the early 1990s a significantly different form of organisational imperative began
to emerge that came to be known as partnering. Partnering was identified by the Latham
Report21 as ‘a way forward in dealing with the conflict in many construction projects’ and by
the CIOB,22 offering a more analytical approach identifying its benefits as ‘a set of actions by
which risk can be distributed and conflict minimised’. Partnering is put in a business context
by Bennett and Jayes23:
[Partnering is] a management approach used by two or more organisations to achieve

specific business objectives by maximising the effectiveness of each participant’s
resources. It requires that the parties work together in an open and trusting relation-
ship based on mutual objectives, an agreed method of problem resolution and an active
search for continuous measurable improvements.
Partnering is based on building up trust and is normally brokered by the signing of a vol-
untary pact. Essentially, it is a risk-sharing approach and is not directly connected with any
particular organisational structure, but rather with a more open culture and effective leader-
ship to ensure that trust is reciprocal and respected. Partnering potentially offers savings
arising from cultural change, which improves collaborative activity based on co-operation
and reduced conflict that cuts out costly contractual procedures. Strategic repeat work with
the same client helps this but is not essential. Trust appears to be a central concept to alliances
and partnerships in mainstream organisational studies literature but comes at a cost that may
well be associated with the risk of trust breaking down between the parties, because trust
requires them ‘to be vulnerable to the actions of another party based on the expectation that
the trustee will perform actions important to the trustor, irrespective of the ability to moni-
tor or control that party’.24 This risk needs to be factored against the savings that may result.
Certain measures have been developed to seal the trust commitment and reduce the risk of
opportunism, including, perhaps not surprisingly, the use of a contract! It is important, how-
ever, to recognise that different levels of trust exist and some see the transaction of partnerships
purely as co-operation, which is a less costly form of trust because the stakes are reciprocated
and controlled. In a more stringent climate of recession it is likely that partnering is going to be
seen as anti-competitive by the client, who may perceive that a short-term gain to get more for
less is to take advantage of a ‘buyer’s market’ and go out to tender to test the market. This type
of action, if genuine, can test the fear that long-term relationships are too cosy and exploit the
client, but if instigated against the agreement terms, it can damage or even destroy a supplier’s
trust if they have genuinely invested heavily in the partnership. Alternatively, this criticism can
be countered by the use of reliable benchmarking (discussed in Chapter 8) to measure improve-
ments that are independent enough to be trusted by all sides.
One of the biggest criticisms of partnering, and there are quite a few, is that powerful part-
ners dictate terms and conditions to weaker partners who depend on them for future work.
Hence partnering is undermined by expecting too much too soon, achieved at the expense
(or even sacrifice) of those who are further down the chain. If not set up well, partnerships
may measure improvements only in those areas easy to measure and not in those that need
improving, e.g. short-term tender price and not level of trust.
Partnering model
The key objectives of partnering, according to Bennett and Peace,25 are mutual objectives,
continuous improvement and empowered decentralised decision making based on the build-
ing up of project teams, as indicated in Figure 7.11.
Decentralised decision making is normally based on a project-level charter that describes
the principles, attitudes and ideals of the partnership, which are intended to promote collabo-
rative working. The mutual objectives are outputs expected to be gained from the partnership,
which will be justified by continuous improvements, say, save 50 per cent of the cost of tradi-
tional contracting on a series of projects over three years. The mutual objectives will provide
other targets, such as reduced programme time, better health and safety, innovative solutions,
better profit levels and fewer defects, as the team seeks to develop win–win solutions rather
Feedback
How good? Who?
Improvement areas
Cost reduction
Decision Continuous
making improvement Fast construction
Better quality
Teambuilding
Partnering Integration of life cycle
costs
Mutual More certainty

Feedback objectives Feedback
How? What? Potential flexibility
How much?
Better information flow
Win–win NOT zero sum More innovative and

sustainable
Figure 7.11 The key elements of partnering26

than zero–sum outputs whereby one party gains at the expense of another. The synergy of
mutual objectives must be proven and comes through hard won collaboration and not by
wishful thinking. Teamwork is the principal delivery platform as it encourages open com-
munication and transparency, flexibility, knowledge management and the establishment of
workshops. Other tools such as extranets or BIM can be less expensively set up if the team is
committed to several projects with the same client and feedback can be used to incrementally
improve systems and catalyse innovation. Strategic partnerships can comprise a common
group of contractors and consultants or, more frequently, framework agreements between a
client and their chosen supply chain.
Partnering tools
Partnering contracts do exist but essentially partnering is a culture rather than an organi-
sational structure. Many tools and procedures are available to help reap the benefits of
partnering. In many cases, partnering uses open-book accounting to motivate partners to
support each other by pooling costs and project insurance transparently in order to share risk
and incentives for suggesting improvements that do not result from traditional adversarial
contracts. Partnering makes it possible to determine the basis for any profit sharing through
either a joint venture partnership between key suppliers (common accounts) or a risk-sharing
‘pain–gain’, ‘loss–profit’ incentive scheme between supplier and client.
The former incurs single accounting for work done and making payments only in propor-
tion to work complete, e.g. completing foundations triggers payment. This method encourages
members of the supply chain to work together. Productive working ‘pain–gain’ agreements
mean that the client partner is prepared to share any savings made on an agreed target budget,
on the basis that the supplier partner is prepared to share any overrun of budget. The propor-
tion of gain–loss is agreed in the contract.
Continuous improvement and value savings are often achieved to a greater extent over
several projects in what is called strategic partnering or a framework agreement, where a
small number of partners share a repeat client’s workload and keep each other competitive.
A common ‘experienced’ client approach is to look at reducing the equivalent project tender
for successive jobs (by, say, 5 per cent) based on identified production or process waste cut-
ting. This can be done by using lessons learnt and applying these to the next project. If both
sides are to be motivated, the efficiency saving needs to be greater than the saving to the cli-
ent so that contractor profitability does not simply decline. Criticism of profitable partnering
is that value is lost due to the lack of competition.
These methods represent the ‘hard nose’ of partnering and are not essential to the
gains that can be made in normal collaborative working. Gaining repeat work with ‘val-
ued clients’ was never called partnering and yet it is a basic tenet of good business
practice to increase certainty of success and cut down extensive tendering costs. Most
prefer a negotiated approach due to the costs of tendering. Indeed, many large contractors
are now reducing their interest in single-stage open or selective competitive tendering
with many bidders.
Partnering, at its best, can result in real value for a project, the benefits of which can be
shared (savings of up to 10 per cent have been claimed for single projects). However, it can
also be a one-sided arrangement whereby a dominant client extracts lower prices out of the
profits of the suppliers in return for the promise of keeping them busy. Real savings of up to
30 per cent (see Case study 7.6) are possible over a gestation period and are made by identify-
ing and cutting out waste in the process, reducing the learning curve of subsequent projects,
gaining a better knowledge of the customer’s real value system, encouraging supply chain
synergy and bulk-buying power.
Framework agreements set up by the client are more exclusive and are designed to award
repeat work to a limited number of contractors and designers. Using this approach, the cli-
ent can formulate a culture in which learning is shared and produces productivity benefits
in subsequent projects. That said, value for money and reduced risk should always be in the
forefront of such agreements. An ethical and professional approach needs to be applied to
this relationship in order to build mutual trust and respect. Partnerships are closely related to
lean production and quality management.
Repetitive projects, supply chains and continuous improvement have the potential to bring
projects to completion sooner and yield business benefits earlier.
Case study 7.6 BAA’s27 Pavement Team28

BAA has employed many successful partnership frameworks whereby repeat contracts
have resulted in proven savings.
From the late 1990s onwards, the BAA Pavement Team carried out 50 projects over
a five-year period. Construction of runways and airport aprons amounted to an average
£35m/year turnover. During this time the team was able to reduce both construction
costs and total time by 30 per cent. Both safety performance and staff productivity
improved, providing value added far greater than the industry average. Other benefits
resulting from these partnerships were the client’s confidence that it was able to gain
value for money and a benchmarking process that allowed measurement against simi-
lar projects in the UK and abroad.
Second-tier suppliers were given management roles in the team. Further challenges
are to integrate the third-tier supply chain into the partnering agreement and to use skills
to further blur management roles in the integrated team, including those of the client and
specialist managers.
In 2008, following the appointment of a new procurement manager, these frame-
works were discontinued in order to allow more competition on major building projects
worth over £25 million that were to be let. This has potential for
• bringing in new blood and innovation

• ensuring that other contractors and consultants who have improved their processes
get a chance to bid for work
• allowing a broader range of procurement and contract arrangements, which may
result in efficiencies in specific conditions.
In this case study we see a moving away from the adversarial nature of construction
and the establishment of a more integrated approach. The company invested heavily in
creating co-operative relationships and win–win objectives to benefit both client and sup-
pliers. Case study 7.7 reveals research findings on the positive characteristics of partnering
projects in Iran and Germany.
Case study 7.7 Partnership testing and research

feedback
Six case studies29 examining partnership arrangements in Iran measured both client
satisfaction and time and cost performance in the hydroelectric and oil infrastruc-
ture industry. Good to excellent results were recorded for satisfaction for five of the
companies, with two of these coming in under budget. One project also gained on
time. Three suffered a 10 per cent delay and two experienced even bigger delays.
An incidental research finding revealed that three of the remaining cases going over
budget suffered further contractual claims, suggesting that partnering terms were
being exploited by contractors.
In Germany, Spang and Rieman)30 identified that very few people had experience of
partnership contracts. They created a partnership guideline identifying seven elements
of this type of working relationship: clear project specifications, defined change control
process, risk management, common data, clear decision making, conflict prevention and
resolution and contractual incentive for improvements. These guidelines were tested
on two road projects of different sizes practising partnership principles. The outcome
confirmed by project participants was more open communication between client and
contractor, fair risk allocation, fast solving of conflicts without litigation, significant cost
savings, better quality and more trust.
Despite being late to embrace partnering, this case study reveals that Iran has achieved
generally positive results. However, not all partnership arrangements result in better out-
comes. Partnership working is assumed to result in the reduced exposure to risk of both
parties involved as a result of their sharing of knowledge and skills; unfortunately, this
assumption is sometimes false.. Case study 7.8 looks at a partnership that tackled the problem
of over-pricing for risk at Heathrow Terminal 5.
Case study 7.8 Partnering contract for Terminal 531

The £4.2 billion construction project at Heathrow’s Terminal 5 involved an innovative
agreement to encourage contractors to work transparently on packages not exceeding
£200 million. Under the terms of the agreement, contractors were committed to reveal-
ing all of their costs, ensuring that risks taken were adequately covered financially and
agreed with BAA and agreeing to ‘demonstrate commitment, trust and teamwork’. On
this basis, BAA agreed to take on the cost of any residual risks that had not been covered
or that exceeded the agreed amount, should they occur and their cause be determined
by proven evidence. This approach took much of the confrontation out of the contracting
process; that is, it sought to prevent risk by managing its cause. This applied to all tiers
of the supply chain so that risk could not be passed down the supply chain. The new
contracts were based on trust and a specific education programme was introduced to
ensure all suppliers understood what they had signed up to. The contractors worked in
integrated teams, including client representatives, with four key elements.
• The client holds all the risk and it is actively managed by the whole team.
• The client underpins all financial risks so that contractors need not worry about
being held financially accountable if things go wrong.
• Contractors work to predetermined profit levels.
• Contractors are expected to work in partnership.
In addition, BAA incentivised suppliers using team targets for performing safely, on time
and to cost and quality that would be rewarded on achievement. BAA also insured its
risk, which helped to break the cycle of risk transfer.
Acknowledgement to the National Audit Office
The criticism that serial partnering does not allow the client to gain from the market can
be addressed by the client being able to engage in market testing and benchmarking against
industry performance. They may also be able to refresh frameworks that are not working by
opening partnerships and bringing in new contractors from time to time. Frameworks can be
valuable in ensuring that repeat work design does not start from scratch and that standardisa-
tion is developed to save fees. Their disadvantages are that they may stop new ideas forming
or fail to eliminate poor performers.
Customer focus
The longer-term relationships associated with strategic partnering allow the development
of a greater focus on the needs of customers. Peters and Waterman32 argued that excellent
companies really do get close to their customers, while others merely talk about it. The cus-
tomer dictates product, quantity, quality and service. The best organisations are alleged to go
to extreme lengths to achieve quality, service and reliability. There is no part of the business
that is closed to customers. In fact, many excellent companies claim to get their best ideas
for new products and services from listening intently and regularly to their customers. Such
companies are driven more by their direct orientation to the customers than by technology or
a desire to be the lowest-cost producer/provider. Over the past few decades or so more and
more companies have sought to change their external relationships by developing closer and
more harmonious links with both their customers and suppliers. Construction organisations
can be seen as having advantages in terms of developing customer focus over organisations
in many other sectors of the economy because their products are normally bespoke for a
specific client with a specific need.
Case study 7.9 describes a large project that involved creating a strategic business
unit to respond to the client’s major requirements. This is a specific way of giving
customer focus and financially protecting the parent company in the event of uncon-
trolled loss on mega projects. It is also a way of responding to the risks in the wider
external environment.
Case study 7.9 Strategic business units

Mega projects where there is a cost of many millions per month are often run as special
projects and are allocated as strategic business units with their own profit centre and
with full accountability. These will be determined where they represent a significant
proportion of the turnover of the company. One such £567 million equivalent project for
a government organisation was built in two years by a PFI consortium led by one of the
largest contractors in the UK (20 per cent of turnover). The project involved the moving
into new buildings of an almost complete government department on a phased basis
and decanting staff from existing buildings on the same site. The construction works
included moving major power lines, putting in new roads and diverting traffic flows,
releasing land for development, and the design, construction and fitting out of high-tec
facilities. During construction the cash flow rose to £22m/month at the peak of the con-
tract when 1200 people were working on the site. At the start of the project, and to suit
phased handover, the speed was much reduced to deal with site and client constraints
and this required careful management of contract personnel.
There was a 150 strong project management team, which was part of a joint venture
company set up to deal with the design, construction and management of a large sup-
ply chain. This company will also continue to manage the facilities for the next 25–30
years of its operation. Major car parks, recruitment teams, training facilities and health
and safety systems were created to cope with the workforce and visitors to the site.
The project organisation was divided into procurement management, design manage-
ment, financial management, sectional management of the construction and facilities
management. A senior project director provided business and strategic leadership sup-
ported by a small team of project managers and sectional construction managers. In
addition to this, a general manager of the joint venture company was responsible for the
strategic-level contact with the client throughout the life cycle of its operation.
A unique logistics network was designed for the new building, which allowed for
the receipt of supplies on its non-secure side, where they were vetted, and then their
delivery by train to various parts of the basement, from where they were taken by lift to
the relevant section. Security is often a major issue on projects and a security recep-
tion was set up to provide identification for, escort and induct into the health and safety
regulations all visitors and new workers onsite. Fire escape routes with fire points and
segregated pedestrian and plant routes were designated to back up the health and
safety and security requirements on a large site.
Although this project is one of only a very few in this size category, it indicates the impor-
tance of creating a fully competent integrated team for a large business undertaking in a very
short period of time. The client required evidence of a world-class organisation that was able
to meet the exacting requirements of a very tight programme, budget and phased changeover
programme to move staff whilst also maintaining security.
World-class performance
Experienced customers are becoming more discerning in what they perceive as high qual-
ity and thus seek more effective methods for choosing between contractors. The following
model is one that has been used widely to identify those companies that are able to provide
the best and most sustainable service.
Customer satisfaction is one measure for identifying a top-performing or world-class
company. Studies show that a typical profile of world-class performers includes the follow-
ing characteristics: strong leadership, motivated employees, a strong and/or rapidly growing
market share, great admiration demonstrated by peer group companies and society at large
and business results that place them in the upper quartile of shareholder value. One way to
address the challenges involved in creating high performance organisations is the European
Foundation for Quality Management (EFQM) model. The Foundation is in the tradition
of the US Malcolm Baldrige Award and was initiated by the European Commission and
14 European multinational organisations in 1988. The EFQM model can be used as a self-
assessment tool on all levels of an organisation as well as an auditing instrument for progress.
It is based on the principle that, in order for an organisation or team to succeed, there are a
number of key enablers and key results on which it should concentrate if improvement goals
are to be achieved.
Achieving organisational excellence demands the following:
• organisational learning
• far-sighted, committed and involved leaders
• clear understanding of the company’s critical success factors (CSFs)
• unambiguous direction setting
• flexible and responsive process management
• people with relevant knowledge and skills
• constant search for improving the ways things are done.
This structure is relevant to a project inputs and outputs. However, the model has been
set up primarily for static permanent organisations and terminology is awkward for tem-
porary project organisations that must be dynamic, with a unique project culture that is
also temporary.
Figure 7.12 shows that organisations can score their performance on the EFQM model
on a scale peaking at 1000 points. The significance of customer satisfaction is demonstrated
by a score of up to 200 points for customer results. This reflects the importance of providing
customers with a product or service that delights them. The best companies in Europe are cur-
rently scoring around 750 points. A score of 500 points is extremely good, and would equate
with one of the best in the UK.
Often used as a diagnostic tool, the model takes a holistic view to enable organisations,
regardless of size or sector, to:
• assess where they are, helping them to understand their key strengths and potential gaps
in performance across the nine criteria
• provide a common vocabulary and way of thinking about the organisation that facilitates
the effective communication of ideas, both within and outside the organisation
• integrate existing and planned initiatives, removing duplication and identifying gaps.
Organisations that have used the EFQM model do demonstrate a commitment and enthusi-
asm to continue to both give a better and better service to their customers and meet the needs
of all stakeholders.
People
People
results
90
90
Products,
Strategy Customer Key
processes
Leadership 80 results business
and
100 200 results
services
150
140
Partnerships
and Society
resources results
90 60
Enablers Results
Figure 7.12 EFQM model for business excellence™33
Project equivalent
Westerveld’s Project Excellence Model34 is equivalent to the EFQM model and is based on
the same structure of enablers and results, which he terms project success criteria and critical
success factors. These easily match the enablers and results of the EFQM model. The model
introduces project-related words such as stakeholder and contracting management in the ena-
blers and specifically extended the stakeholder list to client, project personnel, contracting
partners and other stakeholders in the results. Helpfully, Westerveld distinguishes between
five different types of project. The one that most clearly matches a building project he calls
system organisation and the infrastructure project, e.g. remodelling.
The key enablers are leadership, effective co-ordination of multiple specialist organisa-
tions, resource, risk and contract management. The results are judged narrowly on time, cost
and quality, which are measured by the satisfaction levels of the client and other stakehold-
ers, including users.
Self-assessment
For the project team the project excellence model could be used as a basis for self-assessment,
an exercise in which an organisation or project team grades itself against the criteria.
This exercise helps organisations to identify current strengths and areas for improvement
against the ongoing project or preparations for the next one. This gap analysis then facili-
tates definition and prioritisation of improvement plans to achieve sustainable growth and
enhanced performance.
Zulu35 adopted a similar model when testing the impact of project enablers on project
results. He found that project processes were dependent on the team, which was strongly
dependent on the leader, but that the impact of processes on results was not significant;
instead, they were dependent on a myriad of indirect factors.
The Project Excellence Model could be related to contractors or a service company. The
enablers are similar but reflect project management roles in managing the internal and exter-
nal impacts of the project, such as resources, and collate the various aspects of control. The
results look at the widely trumpeted cost, quality and time target achievements for a project
as measured by the controls, as well as some broader categories like relationships and feed-
back from various partners. Case study 7.10 helps to see how self-assessment has helped
improve organisational excellence.
Case study 7.10 Highways Agency

capability assessment
The agency responsible for roads in England has developed, over a number of years,
a Capability Assessment Toolkit (CAT)36 to identify the competence and capability of
major suppliers and select those most likely to deliver best value solutions and services.
It recognises world-class performance and the contributions made by their suppliers
in the operation, maintenance and improvement of England’s road network. Its CAT 3
assessment is largely based on the principles set out in the EFQM Model. The CAT 3
indicators are:
• direction and leadership

• strategy and planning
• people
• partnerships
• processes and resources.
The scoring factors are:
• Substance – how substantial is what the suppliers do?

• Clarity – how clear is what they do?
• Quality – how good is what they do?
• Value added – how much value is added by what they do?
Suppliers are placed in one of four performance bands: early days/limited; operation-
ally effective; strategically valuable; and external differentiator. The agency is in the
process of developing a new assessment tool – the Strategic Alignment Review Toolkit.
It retains all the categories from the previous tool while introducing new and challenging
indicators in the area of corporate social responsibility.
Leadership of projects
Issues of leadership and associated power lie at the core of group life in a variety of con-
texts. Even the most informal groups typically have some form of leadership within their
organisation. It can be argued that there are three main forces shaping the process of lead-
ership: flatter matrix forms of organisation, the growing number of alliances and informal
networks, and people’s changing expectations and values.
The literature shows that there have been four main ‘waves’ or ‘generations’ of theory
relating to leadership:
• trait theories
• behavioural theories
• contingency theories
• transformational theories.
The earliest approach to leadership was that which focused on traits. It was aligned to
the notion that leaders are born and not made. It emerged mainly in the context of the
military. This view is now contentious and viewed as highly dubious. Maylor argued that,
‘great leaders in all spheres of human endeavour have developed skills and attributes to
the point needed for the task at hand. Both of these are teachable and although intelligence
is one of the few characteristics that cannot be taught, this has rarely been a constraint on
success.’37
In the 1950s and 1960s the dominant thinking shifted from leaders to leadership
style, which emphasised the functional or group approach whereby leadership styles are
grouped within a behavioural category. The four main styles were assumed to be personal
preferences:
• Concern for task – leaders emphasise the achievement of concrete objectives.

• Concern for people – leaders look upon their followers as people and not simply units of
production or a means to an end.
• Autocratic approach – leaders take decisions for others and expect subordinates to fol-
low instructions.
• Participative approach – leaders try to share decision making with others.
Hersey and Blanchard38 advocated a situational leadership approach, proposing that style
was adjusted to suit the team and task. They identified four different leadership styles for
particular situations:
• Telling (high task/low relationship behaviour – this style or approach is characterised by

leaders giving a great deal of direction to subordinates and paying considerable attention
to defining roles and goals.
• Selling (high task/medium relationship behaviour – although direction is provided by the
leader, there is an attempt to encourage people to ‘buy in’ to the task.
• Participating (high relationship/low task behaviour – leaders share options and decision
making with followers and the main role of the leader is to communicate and facilitate.
• Delegating (low relationship/low task behaviour – the leader identifies the problem,
issue or task to be addressed but the responsibility for the given task is passed to
others.
This led to the view that the styles leaders adopt are far more influenced by those they are
working with and the environment within which they are operating. This view places a
premium on leaders who are able to develop the ability to work in different ways to match
different situations or settings. This gave rise to the contingency approach, which can be
seen as appropriate in the context of the construction industry’s diverse projects and pro-
ject cultures.
Fiedler39 argued that the effectiveness of leaders depends on two interacting factors: lead-
ership style and the extent to which the situation gives the leader control and influence. Three
factors are seen as important in the contingency approach:
• The relationship between leaders and followers – if leaders are liked and respected they
are more likely to have the support of others.
• The nature of the task – if the task is clearly spelled out regarding goals, methods and
standards of performance, it is more likely that leaders can exert influence.
• Position power – if powers are conferred on the leader for the purpose of getting the job
done this may well increase the influence of the leader.
It must be borne in mind that cultural constraints also affect leadership behaviour and its
effectiveness. The leadership theories described above have a definite North American
cultural orientation demonstrated by: an individualist rather than collectivist approach;
self rather than duty and loyalty; rules and procedures rather than norms; and rationality
rather than aesthetics, religion or superstition. There are, however, many cultures that
do not share the assumptions on which these theories are based, which has prompted an
increasing amount of research geared towards understanding leadership across different
cultures.
Situational leadership is well-suited to construction projects where there is much vari-
ety and uncertainty and a need to be flexible in approach. During the project life cycle,
however, the leadership style may change; that is, it may be participative in the design
stage and autocratic in the construction stage, when tasks are tightly structured. Modern
collaborative contracts favour developing relationships, whilst integrated working online
requires a high dependency on protocol for information to be delivered in a universally
consistent way.
Project leadership
Buttrick40 argued that leading a project is different from leading an organisation. In terms of
line management, the manager or supervisor has the power and authority to instruct a person
in their duties, a power they most likely should have but often do not. However, delivering
a project involves using a subtler power base more rooted in the commitment of the team
than in the directive of the project manager. Teamwork and team spirit are important in line
management but it could be argued that they are even more important in projects. Reasons for
this include the short timeframe available for developing ‘forming and norming’ behaviours
and optimising performance and the fact that many team members are not dedicated to the
project as they have other duties to attend to.
The project manager must be the leading player in creating and fostering a team spirit and
enrolling the commitment of the project’s participants. Factors contributing to this are clear
communication, realistic work plans and targets and well-defined roles and responsibilities.
Morris41 predicted that, in the twenty-first century, frequent change will become even more
pervasive. Social, economic, demographic and environmental pressures will grow. More
democracies will mean more political change. Technology and communications will become
ever more global. He claimed that:
Projects need strong, experienced people to drive them forward and lead those involved.
Not only must the project be efficiently administered, there should be a high standard
of leadership so that people, both within and outside, accept its goals and work enthu-
siastically towards its realisation. Management drive of an extraordinary order may be
necessary to get the project moving and to produce results of outstanding quality on
time and within budget. To assure the necessary resources and support, the project may
need championing both within the sponsoring organisations and externally, within the
community.42
Construction context
Leadership in construction projects occurs at different levels; however, all leaders must be
able to deal with dynamic environments and many differing tasks that require them to think
on their feet and make quick decisions. The project leader must treat those with whom they
are working with respect as they are dealing with professionals and employees of autono-
mous organisations.
In large projects many organisations work simultaneously and leaders need to commu-
nicate and enforce a plan of work that co-ordinates different teams and commits them to
meeting programme schedules. Negotiating skills are required because the failures of one
party can impact heavily on others resulting in claims for loss and expense. The partnership
approach helps to aid understanding of critical crossover dates and technical interfaces and
prepares team members to help each other. Communication in regular impromptu meetings
aids discussion and problem solving. Leaders need to understand the workflows of each party
and to be motivational and creative when there are delays or cost overruns. Specific experi-
ence in the type of work enables more predictive action, but good relationships provide more
transparency. They also can increase the level of trust demonstrated within a project team –
from contractual to competent to goodwill – as the sense of partnership grows and members
get to know the strengths and weaknesses of each other’s organisations. Trust builds with
time and improvements can be made as a result of it; for example, in strategic partnering
and framework agreements everyone understands the quality levels expected in repeat work
together and fewer checks are thus needed.
Sound professional relationships with individuals are foundational because the efficacy of
the project can be ambushed by anything less. Case study 7.11 is a transcript of what profes-
sional people felt about their leaders and identifies different leadership approaches.
Case study 7.11 What it feels like to be led

The first transcript is an employee’s description of some of the best leaders he has
worked with in his career to date:
Over the years I have reported to many managers. Those who have also been
effective leaders have had a certain something about them. Some of them have been
charismatic, perhaps not in the same league as Nelson Mandela, but they did have this
knack of making you feel optimistic about goals, no matter how tough those goals might
be. Some have not been what you would call charismatic but their personal qualities
still made them effective leaders. These leaders were extremely clear about what we
needed to achieve as a team and then took every opportunity to make sure we under-
stood why our goals were so important and that we were really on board. These leaders
were genuine and you knew they would follow through with what they said. They were
consistent in achieving what was important in terms of targets and values. Their values
influenced everything they did. Their standards of teamwork and behaviour were very
high and they applied exactly the same standards to themselves too.
Here is the transcript of another interview, contrasting two quite different leadership
styles experienced:
My previous manager was . . . tough. You were left feeling that you were just one of
her resources to get her job done. My new manager is tough as well but in a different
way. She doesn’t tell us what to do but does explain why it needs to be done. She doesn’t
just delegate jobs to us and leave us to it but gives each individual just the right amount
of support. Her feedback is different too. My previous manager would really let you know
when something wasn’t right and only every now and then would you get some textbook-
type praise. My new manager helps you reflect on what you’ve done and what you learnt
from it. It’s almost as if she’s not just our leader but also one of our resources to help us
get our job done. Productivity, team spirit and job satisfaction have never been higher.
The next transcript shows how leaders need to shape their approach to both the
individual and circumstances:
I wasn’t sure about our new manager at first. He seemed a bit of a chame-
leon. At times he would be very relaxed and at other times he would be very strict.
Sometimes he would consult with us and at other times he would be very autocratic.
But then . . . the more I thought about it I began to see he was actually being very
consistent about what was important, what we had to achieve and how to achieve it
and so on. He’d only be strict with people who were negative and who undermined
others. He would only be autocratic when we were dwelling on difficulties instead of
creating solutions. He’d cut through the negative stuff and take charge. I realised that
he had very strong principles about our goals, about us as individuals, and about how
we worked as a team. These principles were being upheld through different behaviour
depending on the situation. This underlying consistency was one of the qualities that
made you really respect him.
Acknowledgements to M. Jones43
Try to identify the type of leadership approach indicated by each of these witness
statements.
The emergence of contingency leadership reinforced the view that there is no single
recipe for successful leadership.
Transformational leadership
The emergence of a new paradigm for change from the 1980s onwards gave rise to the theory
of transformational leadership. Here, the leader is seen as an agent of change. Again, this
view resonates with the management of projects, especially as most projects are designed to
bring about change. Transformational leaders also seek to influence the behaviours of others.
Case study 7.12 describes some responses to a survey exploring the type of leaders required
in the construction industry.
Case study 7.12 Leadership survey

According to the CIOB, the issue of leadership in construction has been debated for
some time. It argues that the industry’s need to rise to increasing social, economic
and environmental challenges has fuelled this debate and called into question the
industry’s ability to create leaders who can inspire and effect real change. Research
undertaken by the CIOB44 was based on a sample of 655 construction industry pro-
fessionals. The results suggest that ‘good communication skills’, ‘strategic vision’,
‘understanding of the business’ and the ‘ability to get results’ are the most important
traits for an effective leader in the construction industry.
When asked why some individuals are considered to be the greatest leaders
of all time, respondents identified ‘vision’, ‘integrity’ and ‘communication skills’;
‘charisma’ and being ‘inspirational’ were also ranked highly. ‘Soft’ leadership skills
appeared to be less prevalent in the construction industry, although when asked
about their strongest leadership qualities ‘integrity’, ‘ability to listen’ and ‘under-
standing’ were respondents’ top responses. The results show that the small sample
of women respondents were looking for these ‘softer’ skills in construction industry
leaders; in particular, they rated ‘integrity’ and being ‘open to change’ as key leader-
ship qualities.
Respondents identified ‘new experiences’ as the most valuable way to improve
their leadership ability, with education, skills, qualifications and training also iden-
tified as being important. The main barriers to effective leadership were ‘lack of
opportunity’ and ‘organisational culture’. The respondents were asked whether they
believed that adequate leadership is present in four main areas of the construction
industry: health and safety, business ethics, sustainability, and education and train-
ing. The results show that there was a higher level of leadership at company level
in relation to health and safety, business ethics, sustainability, and education and
training when compared to that at project, UK and international levels. It could be
inferred that there is a greater need to address the lack of leadership at project, UK
and international levels.
The behaviour of leaders needs to be interpersonally orientated and appealing to those

who are motivated to follow. Such behaviours include forming and articulating a collec-
tive vision, infusing the organisation with values and motivating followers to demonstrate
exceptional performance by appealing to their values, emotions and self-concepts. From this
it can be seen that managers provide the intellectual inputs necessary for organisations or pro-
jects to perform effectively whereas leaders set the direction for organisations and projects
and appeal to ideological values, motives and self-perceptions of followers. The relationship
between change, innovation, learning and leading is shown in Figure 7.13.
Influencing through leadership

vision/behaviour
Pressure on
companies and Need for
project teams to innovation
change
Learning to support innovation

and respond to change
Figure 7.13 Relationship change, innovation, learning and leading45
Transformational leadership is an approach whereby leaders work to create change in indi-

viduals and social systems in order to develop leaders. Van Maurik46 identifies three broad
areas of thinking within the theory of transformational leadership: the leader as team leader,
the leader as a catalyst for change and the leader as a strategic visionary. The charismatic
leader and the transformational leader can have many similarities, in that the transforma-
tional leader may well be charismatic. Their main difference lies in their basic focus: whereas
the transformational leader has a basic focus on transforming the organisation and their fol-
lowers, the charismatic leader may not want to change anything.
Having charisma is often seen as an important element of leadership but it is a difficult
quality to understand. If such a leader is well-intentioned towards others, they can elevate
and transform an entire group or organisation. If they are selfish and Machiavellian, they can
create cults within the group and exploit their followers. The other possible weakness is that
their self-belief may be so strong that they come to believe they are infallible, and hence lead
their followers to disaster, even when they have received adequate warning from others. This
self-belief can also lead them into psychotic narcissism, where their self-absorption or need
for admiration and worship can lead to the alienation of their followers. They may also be
intolerant of challengers; however, having seen themselves as indispensable can mean that
there are no successors when they leave. Charismatic leadership is most suited to short-term
projects and those that require energy and talent to effect transformational change.
Case studies 7.13 and 7.14 describe the transformational leadership qualities exhibited by
two practitioners, one of them in the UK construction industry.
Case study 7.13 Richard Branson47

Richard Branson demonstrates an entrepreneurial and transformational leadership
style that is backed up by his four leadership principles:
(continued)
(continued)
• Listening, which enables you to learn from each other, from the market place
and ‘from the mistake which must be made to [get] anywhere that is original and
disruptive’.
• Learning by working for and learning from the world’s most inspiring and inspired
people.
• Laughing, because if you don’t enjoy what you’re doing then you shouldn’t be
doing it.
• Taking risks, because you learn from them if you remember them in the next thing
you do.
Branson talks about doing things differently with no ‘business as usual’. This involves
listening to customers rather than analysing competitors and seeking feedback by lis-
tening so authentic changes can be made. According to Branson, ‘You don’t learn to
walk by following rules. You learn by doing, and by falling over.’
Case study 7.14 National transformation

The honorary knighthood bestowed on the chairman and chief executive of a major con-
struction company was in recognition of his services to the UK construction industry. It
acknowledges his outstanding contribution to the industry over a period spanning more
than 30 years. Under his unique style of leadership, the company is now an important
internationally-focused engineering enterprise, responsible for some of the world’s most
iconic buildings.
He has been a long-standing champion of the government’s construction industry
improvement plan, demonstrating committed leadership, a focus on the customer and a
quality-driven agenda. The company’s early adoption of the latest construction methodol-
ogy, use of lean construction methods and offsite manufacturing helped eliminate waste
and maximise efficiency. Coupled with his commitment to training people, the company
serves as an exemplar for the rest of the industry.
Following a successful career in the military, he assumed responsibilities for the
management of the estates of two leading UK universities, which culminated in the
planning, development and maintenance of an estate of 660,000m2 of built space.
He also had shared responsibility for a £105 million property investment portfo-
lio. As a director of construction for the Office of Government Commerce (OGC),
HM Treasury, he was responsible for leading changes to government construction
procurement, including the development of whole-life procurement policies and
mechanisms, supply/demand management, fair payments in the industry, the prom-
ulgation of best practice, and the development of policies to overcome barriers to
the adoption of more effective and efficient procurement. He continues to influence
construction as it adopts more sustainable policies and the education of the next
generation of construction professionals.
What is an integrated project team?
The integrated project team (IPT) is a term used by the Egan Report but is also referred to
in the PMI BoK as integration management. The Strategic Forum for Construction (SFC)48
defines a fully integrated collaborative team as:
• a single team, including the client, focused on a common set of goals and objectives
delivering benefit for all concerned
• a team so seamless that it appears to operate as if it were a company in its own right
• a team with no apparent boundaries, in which all members have the same opportunity to
contribute and all the skills and capabilities on offer can be utilised to maximum effect
• a team that seeks to break down the traditional barriers between design and construction
and between client and project team.
Integrated project teams (IPTs) break down functional/organisational boundaries by using

cross-functional/organisational teams. Running projects in functional parts with co-ordination
between them slows down progress, produces less satisfactory results and increases the like-
lihood of errors. Lateral co-operation is better than hierarchical communications, which can
become bureaucratic and slow down the project. Increasingly, this involves taking people out
of their functional or organisational locations and grouping them in project work team spaces
(known as collocation). The recent trend has been to tip the balance of power towards the
project and away from the organisation.
When selecting members of the project team, the SFC argues that special attention should
be paid to enthusiasm and commitment, team attitude and communication skills, as well as
technical attributes such as relevant experience and qualifications. It recognises that team
members often have differing and conflicting objectives and see the project manager as play-
ing a key role in overcoming conflict arising from these different objectives. The project
manager should aim to create an environment in which the team member can achieve per-
sonal as well as project goals. This means using a problem-solving and no-blame culture in
which issues are identified, communicated and tackled early on in the project.
Case study 7.15 illustrates the integrated team approach that can lead to the development
of more trusting relationships.
Case study 7.15 The collapsed tunnel of the Heathrow

Express49
In 1994 a tunnel being constructed using the new Austrian tunnelling method (NATM)
collapsed, causing a potential disaster. The incident was duly investigated by the Health
and Safety Executive (HSE). The contractors were lucky that no one was killed but
did suffer huge financial loss and damage to their reputation. An innovative design
approach was needed to restore faith in both their capabilities and the project. The HSE
saw key weaknesses in the management and procurement structure and the principal
contractor was fined £1.2 million and the tunnelling contractor £0.5 million for their part
in the shortcomings of the project even though no injuries had been sustained.
(continued)
(continued)
The client, BAA, the principal contractor and the tunnelling contractor decided that a
no-blame approach was the best way to rescue the situation in the spirit of collabora-
tion of the new engineering contract (NEC). It was hoped that such an approach would
allay the fears of those in the supply chain and avoid recriminations. Ultimately, the
project team was able to complete the Heathrow Express just six months late (rather
than the 18 months estimated) by using a single integrated team approach, with the cli-
ent sharing the project lead. Balfour Beatty and BAA set up a solutions team to review
the working methods of everyone involved, including the client, the contractors, the
designer and the project insurers, who worked together within a cooperative frame-
work. The client agreed to take some of the cost in return for leading the new group.
BAA instituted:
- A new BAA construction director to run the project.

- Training for all personnel provided by a team of specialist change facilitators and
behavioural coaches to change the traditional supply chain adversarial approach.
- Interdisciplinary teams to work collaboratively on the new solutions.
Overcoming the disaster, which finished only six months late even though at its worst
point it was 18 months behind, was considered a huge success by BAA, saving the cost
of more delay and legal battles in court.
Some work has been done to evaluate leadership by embracing the principles of an inte-
grated project team that has been formed on the basis of competitive tendering; however, this
approach does not have the culture or track record for integrated team working and tough,
committed decisions have to be made to gain greater value.50 Leadership in an integrated
context needs to be generous and involved and could be summed up as:
• building and inspiring a team that understands and is able to deliver the project ideals
• being happy for each member of the supply chain to make a profit on the project
• being prepared to work harder on the project to ensure that innovation can flourish and
greater value can be achieved through more collaborative working.
The main challenges facing leaders in the construction industry are exploiting market
opportunities and addressing issues through influencing others, creating high-performance
teams, managing intra- and inter-organisational change and innovation and shaping corpo-
rate, project and supply chain cultures.
Conclusion
Project management is an established management approach in the construction industry and
project leadership is now an established career, with its own promotional path and profes-
sional recognition. Construction has moved from full control of the workforce to a network
of different contractors, specialist managerial and design organisations, which, together, are
called the supply chain. Within this chain personnel will work for more than one project.
There is also a desire to eliminate contractual conflict by promoting partnerships, whereby
partners offer complimentary skills.
The project has unique timing, location and contract conditions that pose different risks and
influence how it is organised. The degree of competition will influence the behaviour of con-
tributing organisations and may restrain a full co-operative environment. Management style
and the authority, position and power of the project manager will influence the way in which
communications occur within the structure and the degree of integration that can take place.
Experienced clients may superimpose certain structures which they believe are critical,
such as value management, user group meetings and conflict panels. The introduction of cus-
tomer framework agreements, incentives, supply chain agreements and partnering are driven
by these customers, who will also favour the use of specific contract conditions that transfer
or share different risks with contractors. Contractors may respond defensively by passing
risk on, using additional insurance and withholding payment to suppliers, or positively by
creating strategic business units, developing trust, abolishing retention, creating single bank
accounts and offering innovation. The culture depends on the preferences of the project team
and client and the culture will be an adjunct of past work experiences and inherent charac-
teristics of members of the project team, such as their education, personality and aspirations.
World-class or ‘best in class’ performance is a stated aim of companies that wish to con-
tinue improving performance and benchmark their performance against leading best practice
across industries. This requires strong leadership to identify how customers can be better
satisfied, champion change, set tough objectives with mechanisms for implementation and
measurements to apply to the training and development of personnel, and connect all of these
to profitable performance by the elimination of waste in the system.
Leadership definitions have been changing to take account of the need to include the role
of champions for change and this better describes the more transformational approach of
project leadership to inspire as well as to provide many management functions. This is espe-
cially so as leadership in projects applies to many different contributing organisations in the
supply chain as well as the project manager. A leader will develop their own style, but needs
to be contingent with different project conditions to be effective. Political awareness with a
small ‘p’ may help the project manager harness the indirect support of stakeholder as well as
manage the visible core team. The project manager also needs to be able to adapt to leading
multinational projects in which cultural misunderstanding my result in different perceptions
regarding personal and project objectives..
Organisations working within construction projects need to communicate effectively and
provide training and management throughout the supply chain to improve control of produc-
tivity and product quality. This leads to the concept of the integrated project team that works
together and has time to develop a tightly defined culture based on trust. The organisations
work together as a single entity in order to produce maximum value from the project.
Chapter 8 considers the specific people management aspects of construction projects, such
as developing trust, dealing with conflict, negotiating and communicating effectively.
Notes
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3 Tofler A. (1970) Future Shock. New York, Random House.
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Projects. International Journal of Engineering Science and Innovative Technology (IJESIT),
2(3), 411.
6 Winch G. (2009) Managing Construction Projects. 2nd edn. Oxford, Wiley-Blackwell, p. 165.
7 M. Jones, mentioned in Fewings, P. (2013) Construction Project Management: An Integrated
Approach. 2nd edn. Abingdon, Routledge.
8 Emuze F. and Smallwood J. (2009) How Can Supply Chain Management Proliferate in South
African Construction? Proceedings of the ARCOM Conference, Manchester.
10 Dubois A. and Gadde L. (2002) The Construction Industry as a Loosely Coupled System:
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621–631.
11 Harris P. R. and Moran R. T. (1987) Managing Cultural Differences. 2nd edn. Houston, Gulf.
12 Handy C. (1993) Understanding Organisations. 4th edn. Harmondsworth, Penguin.
13 Adapted from Handy (1993).
14 Winch (2009), p. 453.
15 Hopkins S., Hopkins W. and Mallette P. (2005) Aligning Subcultures for Competitive Advantage: A
Strategic Change Approach. New York, Basic Books.
16 Latham M. Sir (1994) Constructing the Team: Final Report of the Government/Industry Review of
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17 Walker A. (2015) Project Management in Construction. 6th edn. Oxford, Blackwell.
18 Hofstede G. (2010) Cultures and Organisations: Software of the Mind. 3rd edn. Beverley Hills, CA,
Sage.
19 Holstede G. (2016) Culture Compass Tool: Sample Use. Available online at: https://geert-hofstede.
com/cultural-survey.html (accessed 14 August 2018).
20 Adler N. J., with Gundler A. (2008) International Dimensions of Organizational Behavior. 5th edn.
New York, Cengage Learning.
21 Latham (1994).
Construction and Development. 5th edn. Chichester, Wiley-Blackwell, p. 102; Jayes S. and Bennett
J. (2006) Partnering in the Construction Industry: A Code of Practice for Strategic Collaborative
Working. Oxford, CIOB/ Butterworth-Heinemann.
23 Bennett J. and Jayes S. (1995) Trusting the Team. London, Thomas Telford. They developed
this principle, what they call second-generation partnering, in a later book. The Seven Pillars of
Partnering (1998), which discusses the new demands of clients and the requirements for a higher
level of trust and multi-level partnering.
24 Johnson-George C. and Swap W. (1982) Measurement of Specific Personal Trust: Construction
and Validation of a Scale to Assess Trust in a Specific Other. Journal of Personality and Social
Psychology, 43(6), 1302–1317.
25 Bennett J. and Peace S. (2006) A Code of Practice for Partnering. Oxford, CIOB/Butterworth-
Heinemann.
26 Based on CIOB Code of Practice for Project Management.
27 BAA is now Heathrow Airports Limited.
28 Movement for Innovation. (2000) The Pavements Team: Integrated Team making Airport Pavement
Savings of 30% over 5 Years. Available online at: http://constructingexcellence.org.uk/wp-content/
uploads/2015/10/Pavement-Team.pdf (accessed 18 August 2018).
29 Hasanzadeh S. M., Hosseinalipourb M. and Hafezic M. R. (2014) Partnering in the Iranian
Construction Industry. Procedia – Social and Behavioral Sciences, 119, 811–818.
30 Spang K. and Riemann C. (2014) Partnering in Infrastructure Projects in Germany. Procedia –
Social and Behavioral Sciences, 119, 219–228.
31 National Audit Office (NAO) (2012) Case Study: BAA Terminal 5 Project. Available online at:
https://www.nao.org.uk/defencevfm/wp-content/uploads/sites/16/2013/02/BAAPlcTerminal5.pdf
32 Peters T. J. and Waterman R. H. (1982) In Search of Excellence: Lessons from America’s Best-run
Companies. London, Harper & Rowe.
3 The EFQM excellence model is a registered trademark.
3
34 Westerveld E. (2003) The Project Excellence Model®: Linking success criteria and critical success
factors. International Journal of Project Management, 21, 411–418.
35 Zulu S. (2007) Impact of Project Management on Project Performance: A Structural Equation
Modelling Approach. Proceedings of the 23rd Annual ARCOM Conference, 3–5 September,
Belfast.
36 Highways Agency. CAT3 Content guidance 0806.
37 Maylor H. (2003) Project Management. 4th edn. Harlow, Financial Times Prentice Hall, p. 268.
38 Hersey, P. and Blanchard K. H. (1977) The Management of Organizational Behavior. Upper Saddle
River, NJ, Prentice Hall.
39 Fiedler F. E. (1997) Situational Control and Dynamic Theory of Leadership. In K. Grint (ed.),
Leadership: Classical, Contemporary and Critical Approaches. Oxford, Oxford University Press.
40 Buttrick R. (1997) The Project Workout. London, FT/Pitman.
41 Morris P. W. (1994) The Management of Projects. London, Thomas Telford.
42 Ibid, p. 255.
43 Jones (2013), p. 210.
44 CIOB (2008) Leadership in the Construction Industry. Available online at: https://www.scribd.com/
document/110778625/Leadership-in-the-Construction-Industry-2008 (accessed 18 August 2018).
45 Jones (2013).
46 Van Maurik J. (2001). Writers on Leadership. Harmondsworth, Penguin.
47 Interview with Schawbel Dan (2014) Richard Branson’s Three Most Important Leadership
Principles. Available online at: https://www.forbes.com/sites/danschawbel/2014/09/23/richard-
branson-his-3-most-important-leadership-principles/#503ebab13d50 (accessed 9 August 2017).
48 Strategic Forum for Construction (2003) Integrated Toolkit. Available online at: http://www.
strategicforum.org.uk (accessed 9 August 2017).
49 Standing Committee on Structural Safety (SCOSS) (2006) The Collapse of the NATM Tunnels at
Heathrow Airport. Report SC/06/101. Available online at: http://www.rockmass.net/files/Collapse_
of_NATM_tunnels_at_Heathrow.pdf (accessed 12 August 2017).
50 Constructing Excellence focus group workshop on leadership in the supply chain, 2004.
8 Engineering the psycho-productive
environment
What? At least 50 per cent of project management involves dealing with people and building
relationships. By definition, we are thus interested in managing these relationships to the ben-
efit of the project. In the life of the project the aim should be to achieve better productivity,
but also to look at long-term objectives such as retention of staff, building customer relation-
ships that provide mutual benefits and attracting the best talent for future projects in order to
gain a competitive edge.
The aim of this chapter is to look at various strategies that promote project effective-
ness and efficiency by managing people well. Traditional approaches to communication,
leadership, conflict, team building and problem solving will be considered. New integrated
approaches recognising the dynamics of people working together are applied to team
selection, innovation and negotiation in construction contexts. This chapter complements
Chapter 7 on organisation and leadership to provide a holistic approach to possible changes
that could take place in people management.
The main objectives of the chapter are to:
• develop the role of team building and its leadership

• gain an understanding of the communication process and some techniques developed to
make communication more effective in project relationships
• identify and manage conflict and stress in construction that specifically hit productivity
• review negotiation and other forms of bargaining in resolving conflict
• identify ways in which teams can critically improve productivity using Belbin and
Myers–Briggs and other indicators in determining behaviour
• understand the role of innovation and creativity in construction project problem solving.
Why? People need to be motivated and lead, which means more than simply organising them.
It involves establishing relationships with them, developing their skills and delegating tasks
to them in order that they feel empowered and able to demonstrate their natural abilities.
Leading and motivating can be direct from the front, but in construction also means facilitat-
ing professional teams so that others are empowered to make decisions.
How? An integrated approach to people requires the project manager to involve the team
in the decision-making process. Sometimes the speed of execution requires an autocratic
approach for clarity, but the project manager does not have direct control of personnel.
Flashman1 considers trying to control people by the use of key performance indicators (KPIs)
to be ineffective; rather, it is better to bring them onside and share responsibility for the
project objectives with them. A business needs to measure its ability, but its past work rate
and efficiency is not a motivator on its own and can disenfranchise and demotivate people by
Engineering the psycho-productive environment 213
taking away their responsibility to know the vision. Conflict resolution has traditionally been
contractual between fragmented organisations; however, there are opportunities to pursue
partnership approaches that are informal using early interventions and understanding team
dynamics and project context.
Teamwork
It is important to differentiate between group work and teamwork. Groups are defined as a
number of people working alongside each other, connected by social relationships,2 but per-
haps having little control over their combined outputs. Most work is a group-based activity,
but not necessarily team based. Groups can be informal as well as formal, cutting across the
accepted authority structures. Several groups, such as trade unions, professional clubs and
work teams, may work in parallel with some, but not all, of the same members. A lot has
been written on the characteristics of groups, starting with Mayo’s Hawthorne experiments
(1924–1932), and by writers such as Lewin,3 Likert,4 Tuckman,5 Argyle6 and Argyris7 on
informal groups. These authors cover such things as group types, cohesiveness, commu-
nications, roles, role conflict and group behaviour. Lewin8 stresses the interdependence of
group members and their commitment deriving from the ‘interdependence of fate’ because
people realise they are in the same boat. Allcorn9 differentiates between the intentional group
and other groups. He describes the intentional group as non-defensive, whereby members
accept roles and status that are relevant to the objectives of the group and all members are
responsible. He contrasts this with the defensive nature of other groups. Groups will often
have several possibly conflicting goals, which are then expressed as tensions between mem-
bers. This is called a competitive group and individual goals are hidden or seen as different.
A co-operative group seeks to build up some transparency and the goals of all members are
similar.10 Typical groups in construction are the monthly site meeting, inclusive of the cli-
ent, and the project health and safety group, which feeds back improvements to construction
safety. The effectiveness of groups can be an important factor in our level of satisfaction.
A team goes a stage further, where the members are committed to common aims and are
mutually responsible for their outcome.11 They tend to be more autonomous and set up their
own terms of reference, often to suit unique clients. Members of the group regard themselves
as belonging and having a generic or technical role. It is the latter that is more aligned to
effective project working. However, there is a need to measure the amount of teamwork
and the conditions in which it may flourish. In construction, teams are often formed from
members in different organisations. Typically, the project team refers to the amalgam of
the design and construction professionals who continue to run the project and have fine-
tuned time, cost and quality objectives and depend closely on the performance of each other.
Design teams build on the work of each other and provide a collaborative output. Production
teams may be strengthened by competition, by pitting the outputs of teams against each other
or against target performance.
The level of team working can be measured by the impact on the overall project when
a member drops out – team effectiveness should be adversely affected so that adjustments
have to be made. A team could be improved if a member who is not teamworking is pushed
out. A group of people will not notice the positive or negative effect of such behaviour in the
same way as they will have weaker relationships. What concerns the project manager is to
optimise working relationships of teams and this comes from experience and intuition, but
will be helped by an understanding of individual behaviour and interactions among mem-
bers. Different people react in different ways to stimuli and different mixes of people have a
214 Engineering the psycho-productive environment
different dynamic that may also be affected by the context and working environment of the
project. Managing this is an art. Preoccupation with the fine-tuning of ideal procedures and
procurement systems is a fad and not a cure for the optimum delivery of projects. However,
the people environment can be productively engineered to achieve synergistic behaviour and
attitudes that benefit productivity.
Figure 8.1 shows the development of team maturity as it passes through the first four
stages in Tuckman’s well-known model.12 It suggests the need for a team to move past a
norming or neutral stage to use the synergy of the team to perform. It is still a difficult lesson
to learn as many teams operate at reduced potential because members have not got to know
or trust each other. Critical things that affect this are the quality of the communications, the
leadership, conflict resolution systems and the contractual environment.
Construction faces a particular challenge as pure project teams are often only brought
together for short periods and their membership and the speed and nature of their tasks
are constantly changing in accordance with the different project stages. Tuckman later
added a ‘divorcing’ stage to his model, which represents the completion of a project when
members of the team start to proceed to new non-related project teams. This stage is char-
acterised by a demotivating effect as members become partially concerned with their next
project or their search for employment and leaving the closeness of the team. Reforming
with some of the same team members can be a positive or negative experience depending
on previous relationships.
Project teams are often fragmented because of the break up of the project stages into cli-
ent briefing and concept teams, design teams, construction teams and maintenance teams.
Because of their common status, qualifications and professional standing, teams become
strongly cohesive and competitive in relation to other sub-groups, e.g. design versus produc-
tion teams, creating exclusion or rivalry and developing different sub-objectives that become
removed from the primary client requirements. This is a disadvantage if a project manager
does not take a life cycle view of project integration.
Walker13 and Gardiner14 distinguish between ‘group think’, whereby individuals spend
an inordinate amount of time agreeing with each other, and ‘team think’, whereby there is a
willingness to talk through the issues, be creative and encourage divergent views. Gunning
and Harking15 also emphasise the additional role of the project manager in building the team
by ‘managing their interactions and satisfying their ego needs’. Training will be necessary to
break down defensive behaviour, reduce uncertainty and mediate conflicting demands. They
remind us that meeting face to face still has productive benefits and is not past history.
Forming
Storming
Project life
cycle one
Norming
Synergy barrier
Performing
Divorcing Reforming Project life

cycle two
Figure 8.1 Adaptation of Tuckman’s four stages of team development

Team leadership
Adair’s well-known model16 describes three aspects of team leadership: achieving the task,
managing the team and managing individuals (Figure 8.2). The project manager leads the
different team leaders as the team leaders lead their trade or package teams. In this chapter
the main discussion is around the team and individual issues, which lead to effective project
leadership, although it is acknowledged that leadership also concentrates on the co-ordination
of the different tasks or disciplines that sub-teams are able to contribute. The aim is to redress
the balance and to consider the potential for managing the different human and cultural issues
that are brought less consciously into the construction project team (project objectives). The
context is to better attain client objectives.
The existence of teams does not automatically indicate better productivity. There is a
chance that project team working may contribute to a less profitable outcome if members
do not work together to everyone’s benefit or become too cosy to challenge each other,
and if clear insight and leadership are not imposed. The project manager is a high-level
team member as well as a team leader and the client may also have a similar dual role.
Various sub-teams also exist in various stages of the project life cycle and in various sec-
tions of the building. Each of these teams needs to be lead, interfaces with other teams
managed and overall direction established. The sub-team leaders form the project man-
agement team and may represent very different activities, such as design, construction,
funding and risk management. The leadership role is linked by the Construction Industry
Council18 to the ability to:
• know how the construction industry operates and the roles and responsibilities of the
various parties; this is likely to require technical knowledge from both the client and
the supply side of the business
• build or recruit a team inclusive of the relevant skills and make the relevant appoint-
ments to cover responsibilities
• establish a communication system that is open, honest and engenders trust in the team in
order to maintain and develop effective working relationships
Train
individuals
Task Individual
Leadership
Team
Train Build
team team
Figure 8.2 Project leadership

Source: Adapted from Adair (1979).17
• use motivation and team building theory to enhance the effectiveness of key project
individuals and stakeholders
• manage team knowledge and project interfaces to maximise the proper planning and
execution of the project to meet project and client objectives.
These abilities represent people and planning skills but in the context of construction knowl-
edge and understanding. One other is suggested, which takes into account the uniqueness of
each construction project context:
• facilitate appraisal and training regimes that encourage the development of a defined
project culture.
Cornick and Mather19 suggest that leadership evolves through four main cultures: direct-
ing, whereby very clear instructions come from the leader; coaching, whereby the leader
prescribes advice and exercises to grant more autonomy to inexperienced members of the
team; supporting or facilitating, whereby the leader provides resources and an open door for
consultation, if required, to experienced members; and delegating, whereby the leader is able
to brief the team, agree tasks and become a member of the team.
A team is most transforming when it is open to change and most productive where a
good degree of trust, respect and understanding has been developed. In an effective team,
the output should exceed the sum of the parts and room for further improvements should be
planned. Socially, there is also a sense of supporting each other so that bottlenecks around
the leader can be eliminated by interchanging roles. This has the advantage of creating
more team leaders.
Proactive behaviour
The social behaviour of employees can have a hugely positive impact on a construction pro-
ject’s effectiveness20 particularly in projects that require initiative on the part of leaders and
active participation from team members rather than passive obsequience. Moreover, work-
ing in teams magnifies and intensifies people’s behavioural characteristics as a result of the
close encounters they experience, in terms of both formal and informal attitudes, where rapid
responses/decisions are required for problem resolution.
Crant21 referred to proactive behaviour as ‘taking initiative in improving current cir-
cumstances; it involves challenging the status quo rather than passively adapting present
conditions’. Parker et al.22 defined proactive behaviour as ‘self-initiated and future-oriented
action that aims to change and improve the situation or oneself’. They state that proactive
behaviour is:
• Anticipatory – it involves acting in advance of a future situation rather than merely

reacting.
• Change-orientated – being proactive means taking control and causing something to
happen, rather than just adapting to a situation or waiting for something to happen.
• Self-initiated – the individual does not need to be asked to act, nor do they require
detailed instructions.
The dynamic view of managing projects successfully focuses on enhancing the skills of
the project manager; that is, improving how they exercise control and helping them make
more accurate decisions. What is mainly needed in order to advance the project manager’s
skills is the capability to interact with the other participants or members of the project.
This interaction enhances communication and collaboration and builds trust among the
project manager and participants. What is more, developing the project manager’s skills in
this way will efficiently and effectively capture the benefits of partnership and reduce the
degree of complexity in projects.
Grant and Ashford23 stated that, to enhance trust, communication and collaboration, the
project manager must have anticipatory and self-initiation skills plus an ability to change
orientation. These skills will promote proactive behaviour, allowing the project manager
to become the driving force behind organisational change. Taking a proactive approach
helps project managers to think and act before, during and after a meeting takes place.
Parker et al.24 captured and analysed a proactive cognitive model. It identifies antecedents
of proactive behaviour as proactive personality, job autonomy, co-worker trust, supportive
supervision, self-efficacy, flexible role orientation and control appraisal. They suggest that
these antecedents will help develop a proactive approach within the team.
What can be gathered from the above is the need to focus on low project information matu-
rity in order to enhance the progress of a project. The proactive project manager’s behaviour
aids in developing project information maturity during a meeting. This added value will
afford a higher quality of decisions and better control of operational processes before the
project start and during project progress across its life cycle.
Motivation
The motivational aspects of management have been well documented, but the main motiva-
tional principles in the workplace can be categorised as economic reward or other extrinsic
incentives, intrinsic satisfaction gained from the work and social relationships connected
with the workplace. In the context of project teams, any of the three types of motivation
might be applied. At professional level, it is almost certain that intrinsic satisfaction is
present. Where this team is a close performing team it will also provide satisfaction and
social stimuli. Care should be taken with the notion that a happy team is a productive team
as it might just be comfortable and complacent or into group think. From the individual’s
point of view, the expectations of the psychological contract between them and the project
leader should be positive. Frustration in the balance of personal and organised goals can
be demotivating; on the other hand, problem solving any issues leading to desired goals
leads to constructive behaviour. Maslow25 introduced a theory of satisfying needs and self-
actualisation and Herzberg26 modified it by distinguishing between hygiene or basic-level
factors and those that motivate, thus introducing the idea of dissatisfiers.
McClelland27 described needs in terms of achievements. Other process theories28 looked at
motivation as being dependent on the dynamic relationship between several factors, such as
expectancy, effort, reward and performance. In other words, if the credibility of these factors
is poor, for example the effort expended did not match the reward offered, then frustration
and demotivation set in. It is difficult to ‘put money on’ any one of these theories, but the
instinctive style of the leader should be used to analyse factors that may be causing problems
for the individual or, by extension, the team. It is also clear that individuals may be motivated
in different ways and thus treating them differently is necessary to get the best from them.
Equally important is the principle of equity within a closely knit team, members of which
will see themselves as deserving equal reward. Valuing differences may help to build on
individual strengths to manage conflicts and stress.
Managing conflict
Conflict is not necessarily bad. Conflict can be defined as a difference of opinion or a dif-
ference in objectives. Some conflict is built in and in a healthy competitive form can be
beneficial in terms of improving productivity. The very nature of construction creates con-
tractual parties, which, by definition, have differing objectives. In traditional procurement,
functional conflict is created between the two parties to the contract and also between design
and construction. This form of conflict is an inescapable consequence of the trading rela-
tionship. Dysfunctional conflict refers to unusual actions that have a significant effect on
the project; it must be resolved before it escalates and prompts retaliation. Somerville and
Stocks29 measured conflict on a three-dimensional parameter model that grades complexity of
conflict according to level of certainty, functionality and significance. A significant, dysfunc-
tional conflict with a high level of uncertainty will thus be disruptive and require attention.
Where two of the three factors are present greater attention should be paid to resolving the
conflict. Other conflict may be insignificant or within expectations.
Stress and conflict

Stress is a natural reaction that often enhances performance and thus may be used as a
management tool. However, prolonged or excessive stress can produce adverse physical
or psychological symptoms that have the opposite effect. The Health and Safety Executive
(HSE)30 defines stress as ‘the adverse reaction people have to excessive pressures or other
types of demand placed on them at work’. Individually stressful situations, such as dys-
functional conflict, may result in the de-motivation of staff or, indeed, their absence.
Case study 8.1 gives an example of the significance of stress in European cultures.
Case study 8.1 Stress in the construction industry

The HSE estimated that, in 2015/16, 11.7 million working days were lost to work-related
stress,31 which equates to 45 per cent of all days taken off work due to ill health. On
average, each such period of ill health lasted for 24 days, a significantly longer duration
than for other illness. These figures are higher than those for 2009/10.
The situation in Europe regarding work-related stress is just as bad and costs
employers €94 billion. Figures for the construction industry are particularly high but
those for the teaching and care sectors are considerably higher.32
A survey conducted by the CIOB in 2006 revealed that 68 per cent of the 847 partici-
pants questioned admitted to suffering from occupational stress. Of these, 27 per cent
had sought medical advice but only 6 per cent took time off work as a result, although
nearly half felt that doing so would help them to cope. The implication of this imbalance
is that participants felt that taking time off would have a negative effect on their career.
The main causes of workplace stress in the construction industry were cited as lack of
feedback, poor communication, inadequate staffing, too much work, ambitious dead-
lines and conflicting demands.
In the construction industry, management and design staff are more susceptible to stress than
are the trades. The concept of stress hardiness as a measure of the effect of stress on different
individuals is well known but is also a way of preparing people to react more positively to
stressful situations by not taking them personally and seeing them instead as an opportunity
to learn and grow. It may be possible to increase stress hardiness by understanding the con-
text of the job as part of the whole, accepting the challenge offered by a difficult situation and
controlling it, for example by not expecting to win everything. In addition, a project manager
could teach positive coping strategies to team members, make anonymous stress counselling
available or pair individuals in the team to provide support for each other.
A sense of machismo exists in the construction industry that deems certain levels of stress
the norm. This norm is now being questioned, however, because rather than creating an
environment of toughness and durable productivity, it distracts workers from the job in hand,
causes unnecessary health and safety risks and creates regressive conditions that put off some
from joining the industry. This macho environment may also affect the industry’s ability to
accept and use creative alternative technology and to embrace softer management approaches
that may be more productive and inclusive. Plenty can be done to deliver a non-threatening
culture of continuous improvement and help construction to remain competitive.
Our central thesis, then, for productive working is to psycho-engineer the working
environment by providing individual and team motivation, aware of the need to resolve
dysfunctional conflict and prolonged stressful situations. The Belbin team roles and Myers–
Briggs Type Indicator (MBTI) applied to personality are just two methods that can be used to
measure people’s attributes so that this information can be applied to matching individuals in
teams; such information can also help individuals self-develop. These will be discussed later
in the chapter in dealing with conflict. The following section identifies the particular causes
of conflict on construction projects.
Conflict and the life cycle

Thamhain and Wilemon33 collected data on the frequency and magnitude of various types of
conflict experienced in projects, organised it into categories and used it to produce a measure
of conflict intensity. This measure provides the possibility of heading off conflict at an early
stage when it is most intense. They recognised seven sources of conflict within projects: pro-
ject priorities, procedures, technical options, staffing needs, costing issues, scheduling, costing
issues and personality clashes. These were measured by the degree of average intensity for
each conflict type at each stage of the project life cycle. All conflict types were present in each
life cycle stage, but some demonstrated above-average intensity, as shown in Table 8.1. The
highest average intensity of conflict occurred in the early stages after project formation.
Table 8.1 Main causes of conflict at various stages of the project life cycle34
Project life cycle stage Cause of conflict (significantly exceeding average intensity)
Project formation Priorities
Procedures
Pre-construction (build-up Schedule commitments
phase including design) Priorities
Construction programme Schedule commitments
Technical opinions
Finishing stages Schedule commitments
Personality clashes (average, but still significantly more intense than at
other phases)
The results of Table 8.1 clearly demonstrate the importance of managing time, cost and other
scheduling commitments throughout the executive stages of the life cycle. Procedures, pri-
orities and technical options are sources of conflict that must be addressed in the first three
stages. It is also important to differentiate between the implications of each conflict type for
each life cycle stage. The conflict over priorities at the formation stage concerns making
strategic planning decisions, whilst at the build up stage it is the allocation of resources in
support of these priorities. Schedule conflicts develop from commitments in the formation
stage to the breakdown of packages in the build-up stage, slippage at construction phases and
reallocation and completion at the final stages. Personality clashes are listed as below aver-
age intensity at all stages, but are worst in the frantic finishing stages of the project. Here, the
prime solution to resolving conflict is to utilise interpersonal skills.
Meredith and Mantel35 listed perfectionism, motivation and conflict as being the main
behavioural problems facing the project manager. Others have done similar work for con-
struction projects and have shown how conflict type and intensity vary between projects with
different procurement types. Meredith and Mantel went further and identified three generic
categories of causes of conflict:
• different goals and expectations of individuals or the organisation

• uncertainty about authority to make decisions
• interpersonal issues.
They identified the main parties in conflict as project or senior management versus client
and project management versus senior management. Further conflict takes place between
contractors and between project management and contractors. The matrix nature of supply
chains means that resource priority conflicts result from contractor involvement in several
projects. Unless this is managed by the project manager different goals and expectations
exist for project-based staff creating uncertainty about whether project or employer authority
influences their decisions the most.
To resolve conflicts of authority and objectives, a project manager is likely to use soft
management skills, so that project loyalty is engendered. Disputes between client and pro-
ject about schedule, cost and time objectives and possibly about authority in some of the
technological decisions need to be made clear at the start. These are connected to the degree
of involvement the client has in the project team and the procurement method employed. In
more recent years there is a push towards partnering objectives, whereby the more experi-
enced client is more fully involved in technological decisions that enhance value.
It is important to note that partnering is most likely to lower conflict indirectly because
it changes confrontational attitudes and produces more productive working conditions,
especially as related to personality clashes. It also provides incentives for contractors to
be involved earlier and to make suggestions for technical improvements. Partnering also
involves ‘soft’ management skills and encourages approaches that produce a win–win situa-
tion. It tries to leave behind a competitive win–lose scenario resulting in residual resentments,
but care needs to be exercised where one party is a dominant size.
Personality clashes may appear at first to be the source of all conflict. Meredith and
Mantel, however, suggest that these are mostly created as a subset of technical conflict, the
methods used to implement project results or the approach to problem solving. To resolve
them care is required to determine underlying problems first and personal animosity may
well be resolved as a result. Personality type and behavioural strengths and weaknesses are
discussed later in the chapter.
Principles of negotiation and conflict resolution
In a traditional approach to construction conflict it has been established that many disputes
are put off only to resurface at the final account when the dispute is entrenched. This is
because if the project were not to complete, especially by the time the construction stage
came around, then all parties would incur heavy losses. Conflict resolution at early stages is
based on ‘allowing the conflict to be settled without irreparable harm to the project’s primary
objectives’,36 i.e. finishing the building on time and to cost. Other disputes that involve deter-
mination of contract or unfinished buildings are not the norm. There are five generic ways of
approaching dispute resolution and Figure 8.3 gives the essence of each. Although it points
to one method, this does not indicate that the other methods are bad.
In forcing, a dominant partner insists on a win–lose solution that a weaker partner is not
in a position to refuse. In compromising, two positions of last resort are established and a
halfway point is agreed, commonly applied to financial agreements. In smoothing, persua-
sion is used in order to make it comfortable to accept a win–lose solution, often a short-term
solution with long-term problems. In withdrawal, neither side refuses to admit that a conflict
exists or a conflict is put aside for a time. Where withdrawal is one-sided, it may be similar
to forcing, in that psychological pressure forces one party to not face up to the implications
of disagreement. Finally, gentle confrontation is the opposite to withdrawal, whereby both
sides agree that more effort should be taken to get to the root of the problem to bring about
a win–win solution.
The technique of principled negotiation developed by Fisher and Ury37 is one of gentle
persuasion and is a useful approach for a project with an open culture, seeking to attain a
win–win solution. It involves four steps:
1 Separate the people from the problem.

2 Focus on interests and not positions.
3 Before trying to reach agreement, invent options for mutual gain.
4 Insist on using objective criteria.
Case study 8.2 uses the Fisher and Ury technique and shows that respect and time are needed
to work out the cause and mutually address each other’s problems and expectations.
Compromise
Smoothing
Residual resentment
Forcing
Withdrawal
Gentle confrontation
Figure 8.3 Different ways to resolve conflict

Case study 8.2 Negotiation to receive timely information

A typical construction problem is poor access to information. This can result in abor-
tive work and health and safety problems, for example because a contractor does not
receive their copy of revised drawings from the architect on time. Tempers can run high
and accusations fly. Tools may even be downed until ‘someone sorts the mess out!’
Negotiations are clearly needed.
Step one means sitting down around the negotiation table and allowing an element
of time. In order to calm down emotions that may be running high it is important to define
the actual problem and collect facts. This encourages each party to work on the problem
rather than the feelings. Neutral facilitators are useful here. The problem is more likely
that the architect does not believe the information is needed when asked or has been
pressurised due to a sick colleague.
Step two establishes what both sides feel. One side relates that abortive work has
happened before and they are expecting it to happen again because of poor organi-
sation of requests from the contractor for information. The other side has particular
concerns about the knock-on effects from receiving information late on the programme
and health and safety. This will highlight positions without one-sided blame and refuta-
tion. The matter of abortive work will follow. In focusing on positions, pre-judgements
have already been made. ‘I can’t possibly finish that in the time allocated’ becomes a
barrier if there are heavy liquidated damages. In focusing on the main interest, which is
to finish on time without demotivation, an agreement is possible by removing fears and
agreeing to overtime.
Step three is the creative one and involves lateral thinking. A more watertight system
to avoid this and related problems in the future is clearly the first focus of the negotia-
tion. If more than one viable solution is proffered, then the other party is offered the
dignity of choice. ‘You must remove this architect from the job’ may be countered by a
separate proposal, ‘They are staying, but will complete some design health and safety
training’. Other solutions for mutual gain may emerge by comparing solutions from both
sides and taking the best from each. This is not the same as compromise as residual
resentments arise.
Step four looks at the principles to be used in coming to a financial agreement. It
is clear that financial compromise is often the starting point for thawed relationships,
though paying for abortive work is not a solution that deals with the cause.
Conflict and communication

Information supply is the key to the successful construction project. Any delays disrupt
the whole production process. Information supply is a fundamental prerequisite to raising
productivity.
The Construction Industry Research and Information Association (CIRIA)38 identifies the
need for systematic written communication in order to bring about a co-ordinated under-
standing of requirements across a broad range of organisations and individuals. Today we
might also think of a digital equivalent accessible to all parties.
Typical communication problems consist of poor communications in the early stages, more
changes being made because right first time is not achieved or objectives that are divergent.
There are also particular issues for communication and conflict in the use of fast-track con-
struction whereby building is started at an earlier stage by progressively finishing areas of
the detail design. It is most important that the design team have fully considered the detailed
interfaces of different packages. Particularly helpful is:
• face-to-face meetings and the production of minutes detailing decisions made and
actions to be taken
• a record of formal approvals and changes to approvals and briefs
• open and honest communication, particularly when discussing changes, which so often
produce disputes
• co-location or use of IT tools to enable virtual co-location and better visualisation
• discussion in regular open workshops or routine debates and provision of suggestion
boxes
• circulation of material on ‘need to know’ and information-only lists, with easy access to
further material and involvement of the supply chain.
Procurement models that allow earlier involvement of the contractor and facilities manager
can improve communication between all parties throughout the project life cycle and offer a
greater chance of getting things right first time.
Communication
Effective communication is the lifeblood of a project and the efficiency of the communica-
tion network is critical. This channel can be defined as ‘who said what to whom in what
channel with what effect’.39 Poor communication is the reason for many project failures.
Here, we concentrate on communications at the operational stage.
A communication model
The model in Figure 8.4 illustrates the basic elements of communication, which are:
• sender – who encodes the message into language appropriate to the message and under-
standable to the receiver, taking style and degree of formality into account
• transmitter – who chooses the medium, such as speech, document or phone
• receiver – who decodes the message according to their knowledge, experience, context
and perceptions.
This linear model is simplistic and involves difficulties such as distortion or noise; how-
ever, other psychological factors are also in play. It is likely that communication in the
construction industry suffers from some of the built-in prejudices (distortion) that exist
between different disciplines in the built environment and may also be influenced by the
effect of varying education styles, e.g. between the architect’s studio, the engineer’s labora-
tory and a manager’s office. Individual situations and personal circumstances may affect
the climate of relationships and clearly sub-conscious signals, often called body language
or voice tone, play a more powerful role than words themselves. Many different media can
be used and the correct one should be used for the type of message sent and the impact
required. More than one medium may reinforce the message and also provide feedback to
the sender regarding how accurately the message was received. Because two-dimensional
architects’ drawings are better understood by professionals, other digital forms are now
being used, such as walk throughs and virtual reality, to market or demonstrate critical
issues. In practice, the model is a two-way dynamic as the receiver simultaneously becomes
the sender in responding. Digital communications impact on the frequency of face-to-face
meetings and global teams mean fewer opportunities to bring all consultants together. The
cloud has become a universal access point for written and drawn communications that can
be reviewed and approved online.
Essentially, it is the responsibility of the sender to choose an appropriate medium and to
make reasonable checks that a message is received and understood accurately. When using
non-verbal language, messages may be interpreted in different ways according to the culture
of the receiver; for example, a ‘put off’ may become a ‘come on’!
Inconsistency between actions and words, non-verbal signs, past experience and the rela-
tionship that exists between the sender and receiving audience create noise. The non-verbals
speak louder than words; in spoken and face-to-face communication, tone, facial expressions
or involuntary body movements provide an opportunity for rich interpretation. This also
applies to video-conferencing, though stage management may be possible here. Folded arms,
for example, may be taken as a sign of remaining uninvolved but can also indicate a desire
for privacy. Covering the mouth whilst listening can indicate a lack of belief in what is being
said. Facial expressions and tone make words such as ‘no’ mean entirely different things!
Responsive non-verbals are also likely to influence what you say and the ways in which you
reinforce language.
Noise refers to external elements that have an impact on communication. In its simplest,
physiological, form, a loud noise outside the meeting window means that only two-thirds
of the words are heard or a headache affects concentration. In a more subtle, psychological,
form it is refers to the hidden things that are going on for the receiver or sender outside of
the project. An unresolved domestic row is likely to loom more importantly than accurate
Noise
Distortion TRANSMITTER Distortion

SENDER RECEIVER
Information - understand
Ideas Coded Decoded - meaning
Attitude message message - action required
Desired action MEDIUM
Telephone/video
conference
Online BIM systems
Emails
Reports
Presentations
Demonstration onsite
Virtual augmented reality
Social media
Noise
Figure 8.4 A general communication system40

Source: Adapted from Lucey (2004).
interpretation of work documents. Work on another project that is going wrong may affect
the tolerance of a subcontractor negotiating price changes on the current project. Severe time
constraints may affect the safety of the environment.
Some digital communications are devoid of these additional signs; however, email
exchanges in block capitals can resemble shouting at each other. Sanitised presentations are
deliberately neutral but removal of the underlying passion of tone and facial expressions can
also mean that their intended meaning is difficult to understand without these cues. Tweets
are one-dimensional and can be simply reactive. Emojis are not as intuitive as hoped if the
receiver has not learned the language! These forms of communication are not spontaneous
and can lead to a complex series of guessing games, reactions and counter-reactions, which
may cause entrenched positions in more formal meetings .
Perception is an important element of communication, as explained by Mullins.41 In the
context of communication, perception refers to the unique way in which an individual views
and interprets the world. This means that each individual may apply a different interpreta-
tion to a memorandum or instruction received by all team members, which is influenced by
their personality, attitude, reaction to the current environment or past conditioning. To avoid
misunderstanding in key messages some sort of feedback should be encouraged on receipt.
Meetings are an opportunity for interaction and getting an equal message across to everyone.
Barnlund42 went a stage further and talked about ‘a transactional model where commu-
nication takes place in a common space which allows a continuous reactive communication
which is adjusted for effectiveness by the response given’. The communicator needs an
instantaneous face-to-face, video or phone response. The space-bound aspect of communica-
tion is particularly relevant to project management because many solutions are fine-tuned
during conversations with trades persons. Documented communication is time-bound, in the
form of drawings or contracts, and stands as evidence of intention, even though it may be
ambiguous or contested. Revisions to documentation that defines the project should be tested
in order to maintain compliance with project objectives.
Communication culture
The project manager may attempt to converge individual interpretations by introducing an
inclusive communication system into the project, which encourages respect and attention to
making oneself understood by others. This is harder if each new project has a new team or the
same team works for a different client. It can even be difficult if assumptions about previous
project behaviour do not apply with the same client and team in a different environment and
location. In other words, the dynamics of the situation vary on each occasion and there is only
a limited period in which to develop and understand the culture of each project. It is logical,
then, to carry over a behaviour or protocol that is connected with the client or the previous
project in order to provide some training and feedback in the early stages of the new project.
A feedback loop in the system is an essential requirement in project communications where
drawings have to be checked and approved, receipts of information acknowledged and time-
scales placed on responses, such as technical queries for clarity or requests for information to
comply with contract conditions.
Focused communication
Modern forms of communication have often accentuated parts of the project management
model because of the nature of modern technology. Powerful search machines make it possi-
ble to collect remote information easily and quickly. Social media such as Twitter, Facebook,
blogs and data published on the internet ive senders the option to universalise information
instantaneously. It is also possible to restrict communication to what we want others to hear
or receive and can choose an inner circle of friends with similar objectives or a focused
business circle to market our company information. Gatekeeping may be an important part
of filtering large amounts of information so that what is needed is helpful to the business.
However, there is a danger that a virtual but unreal world picture is received, which, during
the filtering process, may exclude vital information and perpetuate the communication prob-
lem Feedback has become fundamental to the value of our services. Modern communication
is thus concentrated on sharpening the relevance of the message so that it is not only received
but also understood amongst the noise of many other messages. In a project context, this
means using an attractive and focused medium to ensure relevant action. Case Study 8.3
gives an example of health and safety communication so that messages are received, acted
upon and not filtered out.
Case study 8.3 Health and safety information
Common data format

Health and safety (H&S) statistics are expressed in injuries per 100,000 people. In the
construction industry, injuries have declined by 63 per cent in the last 15 years. Further
improvement is still needed, however, because four times as many fatal accidents occur
in construction than the average for all other industries in 2017/18. Sixty per cent of
these non-fatal and fatal accidents are the result of falls, slips and trips. Additionally,
twice as many major injuries occur in construction than in manufacturing.
Communication methods
1 H&S induction and training is given to all new workers onsite and most large sites
require the entire workforce to carry a CSCS card proving that they have passed
an H&S test relevant to their trade.
2 Managers attend a three-day health and safety course each year and inspect
sites daily.
3 Workers on some sites are given a red card similar to that in football if they seri-
ously convene H&S rules and potentially put others at risk. The must retrain if they
show a smaller contravention of the rules.
4 H&S forums encourage workers to report unsafe working that could be improved
and be represented in project safety forums.
5 Some companies have a culture of ‘don’t walk by’ encouraging all workers, visitors
and passers-by to report unsafe events.
6 Some have their own inspectors who are able to shut sites down following signifi-
cant incidents or accidents so that things are made safe before reopening.
7 Some display boardsindicating the number of person days that have been accident
free so far during the project life cycle.
8 Some use incident free or zero harm slogans in order to inculcate a new culture of
ultimate improvement.
9 Some use cognitive methods (behavioural H&S) to develop a culture of respect for
preventative methods.
10 Almost all sites demand a mandatory wearing of personal protective clothing (PPE).
11 Worker engagement schemes allowing training and union representation to develop
worker awareness.
12 Behavioural schemes where supervisors challenge unsafe behaviour to pro-
mote better awareness and commitment, e.g. Bovis’ Incident and Injury Free
programme.43
13 Giving time to workers to complete near-miss reports and improvements with man-
agement feedback, e.g. the Clugston ‘Take Time’ initiative.44
Should this information stop accidents or dangerous incidents occurring in construc-

tion? Why, when so much information is available, do serious accidents still occur in the
construction industry? The Egan Report45 called for a 20 per cent per year reduction in
accidents in 1998, which has still not been achieved. Such a rate of reduction would have
meant the occurrence of 249 accidents within five years and only 81 within 10 years.
Engineering information is often tailor-made for and unique to specific projects. It

needs to be precise, accurate and unambiguously understood by parties with different back-
grounds and educational levels. The medium used to convey such information is critical to
its meaning and effectiveness. Digital communication models make dissemination of inte-
grated and multidimensional information possible, which can be simplified and focused on
individuals or combined and used for the project as a whole. Layered information combin-
ing multidimensional data can be used as a base for virtual reality to create 3D models for
cross-checking information across disciplines. Information may be delivered selectively and
clashes detected. Data collection can be mechanical so that complexity may be expanded as
long as there is tailored access.
Building information modelling (BIM) communication integrates complex interdisci-
plinary communications with standard protocols (see Chapter 13). It needs to be initiated
earlier so that responses and overlays can be fully tested and integrated. The final product
of BIM is communicated in an integrated format that is unfamiliar to most parties who have
only inputted their part of the whole. This requires confidence in the process of integration.
By presenting only multidimensional information to the client, BIM is an attempt to ensure
understanding. However, communications still break down if all parties are not familiar with
the ‘language’ or even if only one party is unable to use this medium.
The ‘cloud’ is also an attempt to make common information more accessible and consist-
ent. It is populated with project information and overcomes the need to standardise different
digitisation protocols if every participant has invested in different technology. These platforms
employ conversion software that co-ordinates different formats. The cost of the software and
associated training may be prohibitive for small organisations, which means the co-ordinating
contractor must pay for it. If they do not, mistakes, poor communication and an erosion of the
efficiencies of integrating information will result. A large or complex project may produce
vast amounts of information, which recipients may find overwhelming; for this reason, a gate-
keeper is required to send information to different users on a need to know basis. A difference
also exists between information only and information that is tagged as needing a response,
perhaps related to priority of actions. Some project members may feel that they are being
manipulated as a result of being excluded from certain types of information.
Meetings
Project teams depend to a significant extent on meetings to develop the design and to pro-
gress construction. They should include different members to suit the subject of the meeting.
Here, we concentrate on construction team meetings that bring together the designer, con-
tractor and subcontractors in different combinations. Meetings are often site-based during the
construction phase, enabling immediate problem solving as required. However, they could
be conducted via video-conference calls as technology is now easily available and mobile
technology can be used onsite to video-record the problem.
During the design phase there is more need to co-ordinate the outputs from BIM or drawings
and to include costing and buildability, as required. Integrated construction projects include
the client in more meetings that deal with final value. Design involvement remains important
in the construction phase, but the emphasis transfers to buildability, quality, progress moni-
toring and problem solving. The meetings may be chaired by an overall project manager, the
contractor or the lead designer, or even rotated depending on emphasis. Change and variation
orders are important aspects to be discussed as there are financial implications that may be mit-
igated. In this respect, the client is also more involved. In non-partnering contracts, the team is
often locked together in a situation in which personalities are not necessary compatible. This
issue should be considered if possible. The following types of meeting may take place:
• design meetings to gain client approval and integrate different design disciplines
• pre-start meetings between the estimator and the construction team
• handover meetings from the designer to the contractor to receive drawings and clarify
briefing
• progress meetings, including the client, to monitor progress and assess the impact of
delays or work in advance
• ongoing technical meetings to ascertain design issues
• valuation and final account to ascertain interim payments between the contractor and
client’s QSs
• subcontractor resource and progress meetings
• subcontractor interim payment meetings
• health and safety forums to assess incidents and make subsequent improvements.
Meetings cost time and money and thus must be co-ordinated to avoid duplication and ensure
efficient use of team members’ time. Many companies are now conducting single-issue meet-
ings via video link or party call to avoid unnecessary journeys. Case study 8.4 gives an
example of good practice.
Case study 8.4 Communication in project meetings

Foley and Macmillan described three different types of team meeting conducted during
a large exhibition centre project: (1) design and technical, (2) construction progress,
and (3) problem solving. In meeting types (1) and (2), they discovered that interactions
were dominated by the sole project manager, the contractor and the architect; the other
five team members played a secondary role where some of the issues were tangen-
tial to them. However, it was a different situation in (3), the problem-solving meeting;
here, team members made equal contributions. The main protagonists, including the
contractor, were multilingual and thus able to communicate with all members of this
multinational team participants.
All team meetings were highly focused and adhered to strict lines of communica-
tion recognised by all team members. Progress meetings, for example, were focused
on a contractor progress report that provided standard information but also highlighted
issues for discussion. This made the contractor the centre of attention in most conversa-
tions. The technical meeting involved many of the same team members but the architect
and contractor dominated proceedings, which necessitated the project manager acting
as mediator. The problem-solving meeting also featured the same team members but
had a looser agenda; much of the interaction involved the client as their approval was
more important to the solution. The project manager again played the role of mediator.
The contractor played a representative role for the specialist contractors at this level
unless there was a technical point to discuss. The agenda for this meeting was generic
and the communication protocol less rigid.
Case study 8.4 shows how communication can be analysed, but also suggests that there are
elements that could be improved so that meetings are productive and all members involved.
Meetings are efficient means of passing on systematic information; however, involving
members who have nothing to contribute is not cost effective.
Psycho-engineering the team

Psycho-engineering in this context refers to the knowledgeable use of psychometric methods
and motivation to build a robust team, which is then able to form good working relationships
and produce enhanced outputs. It is well known that teams may introduce waste (witness four
work persons watching one person dig a hole), but a new team needs to create a synergy that
is more than the sum of its parts to justify its existence.
Psychometric methods can come in the form of behavioural or personality measures. In
this context they are not tests for things such as intelligence, dexterity or spatial capabilities,
but are a much wider concept of understanding and working with the team members around
you. The more you understand your own personality and behavioural preferences and those
of others, the better you realise how others perceive you and how and why they may react
to you. The recognition of generic behavioural strengths and weaknesses can help selection,
organisation and training to improve team performance.
A construction project team is formed by appointing a number of different consultants,
the project manager, the contractors’ managers and possibly the client. It is possible that
a client may specifically request a named individual but this is not the norm. The team
is not usually selected on the basis of personality or as a result of applying psychometric
tests that are common to standard recruitment. The project manager plays a vital role in
creating the team, especially with regard to working relationships and problem solving.
What can a project manager do to ensure a good mix of team roles? How can the project
manager deal with a personality clash, given that they have limited influence on the choice
of personnel?
The following sections describe two models to answer these questions. They are best used
with qualified guidance and follow-up training for real improvements.
Belbin’s team roles

Meredith Belbin46 based his hypothesis on observations of the interaction of management
teams during training exercises at Henley College of Management. He noticed that teams
that were full of clever people were not helpful in terms of identifying solutions to problems.
He also noted that, teams comprised of members with allocated roles who complemented
each other were usually better than those teams made up of team members with similar roles
and who were competing against each other. The roles that he identified as important after
further research connected with the smooth maintenance and better synergy (added energy)
of the team. They are explained in Figure 8.5. In order to assess these reliably, he developed
a self-assessment inventory (based on a questionnaire) designed to measure behavioural
characteristics to help identify the role that each individual would find themselves most
comfortable with. In reality, individuals are comfortable with two or three roles and can
cover their second role where that role is missing. This can work well in smaller teams.
Team observer assessments augment self-assessment to overcome self-bias. Later, it was
recommended that an added 360° assessment47 with manager, peers and subordinates helps
provide a better result, especially in younger workers. It also validates self-assessment with
Plant Creative and able to produce ideas. May be disinclined or too preoccupied to
communicate.
Resource Operates a good network of contacts and good at resourcing ideas. Can lose
investigator interest later, or forget to follow up a lead.
Shaper Drive and enthusiasm and able to motivate the team. Pragmatic. Can be
perceived as aggressive.
Co-ordinator Co-ordinator and listener. Good at drawing people out and summarising for
agreement. Mature and confident. Can over-delegate.
Team worker Willing to support and develop other people’s ideas and encourage working
together to achieve common goals. Co-operative and diplomatic. Can be
indecisive.
Implementer Disciplined application of team aims and objectives. Conservative, efficient and
practical. Can be inflexible and miss changing opportunities.
Monitor/ Able to objectively appraise ideas and keep control of critical parameter costs.
evaluator Strategic and discerning. Can be over critical and slow to decide.
Completer/ Good at finishing off and ensuring the final details are in place to maintain a
finisher working solution. Painstaking and conscientious. Can worry.
Specialist Key knowledge appraisal for technical teams, relevant where specialist
knowledge is required. Developed later. Can overload with information.
Figure 8.5 Belbin’s nine roles

the opinions of others working on the same project. From a cultural perspective, Belbin has
tested the applicability of these roles for reliable international use.
Belbin identified nine roles based on behaviour (see Figure 8.5), which are addressed in
the Belbin Team Role Self-Perception Inventory (BTRSPI). Some of the labels have changed
over the years but these roles have not changed in character.
Belbin consolidated the roles he identified as follows:
• action roles – implementer, shaper and completer-finisher

• social roles – co-ordinator, resource investigator and team worker
• thinking roles – monitor-evaluator, plant and specialist.
Belbin also recognised that the team needed to determine a common goal. The main prob-
lems occurred when there were two or more people fulfilling a dominant team role, such as
the shaper or plant, as these members were less likely to tolerate each other’s ideas or to be
‘shaped’ themselves; sub-dividing the team was the solution here. A set of team workers
without any leadership could also be ineffective; in the absence of team workers and a co-
ordinator, the team was tetchy, indecisive and fragmented. The omission of a finisher meant
that, in complex problems, solutions often omitted vital ingredients and, without monitors,
there was a common problem with schedule overrun. Over time Belbin remixed the teams to
prove a startling improvement in group dynamics that concurred with his theory.
Belbin’s team roles can be applied by trying to pick and mix a team based on the inventory
results, as Belbin did to optimise performance. However, if the team is already established,
members can be made aware of its weaknesses and agree to cover the roles with second and
third preferences. This awareness of team working, together with a desire to work together,
can be as powerful as having natural role players. Roles are reinforced by training and prac-
tice. In addition, the occasional or regular use of an outside facilitator or a creative workshop
may reinforce these roles if they are lacking.
Belbin also considered that roles for any one person are divided into preferred roles,
which can be comfortably and strongly performed; manageable roles, which can be
played if required by the team; and least preferred roles, which require a considerable
effort by the individual performing them and may lead to weaknesses in the team. Using
this knowledge, a team can distribute generic roles to its members in such a way that they
compliment the individuals’ strongest position. Team roles can change from job to job and
subsequent behavioural testing might show a change whereby manageable and preferred
roles swap.48
Here are the main reasons for removing individuals from the team:
• They are not team players.

• A deeply-entrenched personality clash exists, which has been unresolved.
• A failure to accept an open culture by team members.
• An unwillingness to submit to team parameters and objectives.
Obviously, individuals may also remove themselves from the team and on occasion a client
might request that a core member of the project team be moved on. Project disciplines are
relevant in construction projects but functional contribution has already been covered by
appointment. However, by themselves they do not add to the synergy of the team or over-
come human problems.
Myers–Briggs
Another approach to improving productivity is based on Jung’s psychology of in-built per-
sonality type, published in 1921. Jung was a leading thinker and psychoanalyst and his theory
of types was based on identifying a framework of basic characteristics that influence think-
ing and action. The three-dimensional, eight-point scale was neutral and expanded to many
types through context and environmental conditioning. His work on ‘individuation’ was much
wider and recognised the ability of individuals to self-develop in unique directions aided by
self-awareness of their basic type that allowed them to capitalise on their strengths and weak-
nesses. Jung is broadly read for his insights into personality, which help in terms of gaining
a richer understanding of the later psychometric instruments. Jung identified three scales or
dimensions of personality: E–I, S–N and T–F. Subsequently, in 1948, a template was devel-
oped by Isabel Myers and Katharine Briggs to provide an ethical approach to the identification
of personality preferences in four dimensions – they added a J–P dimension to the instrument.
In-built preferences are polarised on each of these four dimensions,
• Extroversion (E) – Introversion (I)

• Sensing (S) – iNtuition (N)
• Thinking (T) – Feeling (F)
• Judging (J) – Perceiving (P)
A self-assessment questionnaire was developed and improved over a period of 60 years,

which has a high reliability factor in determining the polarisation of each dimension.
The combination of letters differentiates 16 foundational personality types, as shown in
Figure 8.6 (MBTI™). The type is not a straitjacket, but a starting point for an individual
to make choices for the development of their personality over time. The type 2 indicator
makes an attempt to subdivide these types, but they are still the basis for developing a
unique individuality. They can point towards strengths and weaknesses, guide individual
choice and help to identify areas requiring further development and the need to improve
interpersonal communication. Ethically, they should not be used for selection as they do
not define behaviour. Behaviour is a function of additional factors, such as environmental
conditioning, experience and choice. If the MBTI™ is used for problem solving in teams,
the resulting mixture of personality types should complement each other and thus arrive
at better solutions. The MBTI™ thus provides a richer understanding than Belbin of why
clashes may occur and how they may be avoided between types.
One of the more powerful applications of the MBTI™ involves a project manager using
an understanding of someone else’s type to adapt their own natural preferences in order to
improve individual communication with that person and to tailor development programmes
to suit their learning styles. This also has implications for improving the outcomes of nego-
tiation in an open culture. Personality type does not explain individual motivation, but it can
give clues to understanding individuals’ actions.
Figure 8.6 indicates the 16 types possible using a letter from each pole of the four dimen-
sions. These combinations represent the foundational preferences of an individual and do not
seek to stereotype individuals, as Jung acknowledges a natural desire for the development
of the personality to master other areas that are not immediate preferences. Many project
leaders will be drawn from the four types in the corners of the table, ISTJ, INTJ, ESTJ and
ENTJ (see Figure 8.6). Their common characteristic is the ‘TJ’, which fits with an ability to
plan and quickly make up the mind. It does not take away from other types that have other
ISTJ ISFJ INFJ INTJ
ISTP ISFP INFP INTP
ESTP ESFP ENFP ENTP
ESTJ ESFJ ENFJ ENTJ
Figure 8.6 Myers–Briggs type table49
characteristics, which are useful in motivation and care for the welfare of the individual (SF
and NF), and those that have powers of analysis and creativity (NT and TP). Case study 8.5
tracks the characteristics of one of the most common types.
Case study 8.5 Typical characteristics of a common

Myers–Briggs type
An ESTJ is one of the most common types found in Western cultures and it may be
interpreted letter by letter.
E indicates the outgoing style of the individual with a tendency to have a wide circle
of friends and contacts that generate their energy. With J, it makes for a quite forceful
personality.
S indicates a strong use of the five senses and provides a practical down to earth
approach based in the here and now evidence with a likely pragmatic problem-solving
style confident in the straightforward problems within ability. They will need the pres-
ence of an N to generate new ideas.
T is the dominant characteristic denoting a thinking, logical approach to issues pre-
senting and is likely to be based on a set of rules, precedence or business case that
together with J is likely to favour step by step planning.
J is a more systematic target-based approach with a strong emphasis on stepped
planning to achieve sub-targets, which may appear as unnecessary pressure to
some others.
The dominant characteristic seen is the thinking one. The ‘S’ side will support this
with a strong desire to celebrate the success of the project.
Approximately, this adds up to a loyal, conservative, practical individual, with a logi-
cal step by step approach and the ability to close out projects and make effective and
systematic decisions. In many cases, they make strong up-front leadership material in a
practical traditional industry, such as construction. Their limitations will be the tendency
to over control, a resistance to not change where it ‘ain’t broke’ and a tunnel vision
rather than a creative outlook. In taking on leadership, it may be necessary to develop
more creative approaches and team-building skills, initially using a deputy who has
complementary skills so that the two can work together and gain confidence in strategic
decision making.
Jung recognised the role of environmental conditioning in individual personalities. For
example, socially there is a need for expressing oneself publicly and this is not the natural
preference of the eight types featuring I at the top of the table in Figure 8.6. These types gain
their energy from within and not from others. This produces a particular twist in that those
with an ‘I’ preference who unconsciously present themselves publicly as something that is
not their most dominant preference and are easily misinterpreted by others. That stated, it is
possible to interpret the behaviour of different types with some degree of training. However,
it is dangerous to guess the type from the behaviour. Environmental conditioning and con-
scious personal development provide depth and uniqueness to individual personalities and,
contrary to popular opinion, have the opposite effect to stereotyping. The MBTI™ can be
used for developing team working, ensuring balanced problem solving, improving commu-
nications and resolving conflict. It is often used for identifying leadership style, but it is not
a measure of good or bad leadership.
Behaviour can also be altered by severe stress and it is possible to cross over from one’s
preferred to one’s least preferred type in stressful circumstances. This can be recognised
when a team member is perceived as acting out of character. For example, a normally placid
ISTJ will take on the extroverted characteristics of an ENFP and will move from present to
future possibilities in negative fashion, warning of doom and gloom. It may also be apparent
when certain personality types are under stress as a result of being asked to go through major
organisational change.
Myers–Briggs, conflict and problem solving

It might be thought that, because having opposite types working together results in conflict,
the natural instinct of the leader will be to keep certain types apart. However, this can not
be the case if progress is to be made in existing teams. Rather, it is beneficial to understand
each other and complement individual strengths and weaknesses. The key is to present a
clear vision and resolve conflict by an understanding of conflict generators for that particular
personality type. A leader will match weakness with strength in the team and, in the longer
term, will thus promote personal development. The most dangerous situation is when the
team is working under significant stress. In this situation, how a person presents may be the
inverse of who they are.
Research conducted by Killen and Murphy50 indicated that the two last letters contribute
most to conflict. They call these the conflict pair. This creates four possible combinations of
TJ, TP, FJ and FP, each showing up in four personality types (see Figure 8.7). In the fourth
dimension, judging types have most difficulty adapting to creating space for decisions to be
made and, vice versa, the perceiving types have most difficulty seeing why there is such a
rush to make decisions and require more time to research and thus verify information. In the
second dimension, which is a function of feeling (F) or thinking (T), a major conflict exists
between the Ts who want to fix what is wrong and the Fs who want to make sure that every-
one is heard and respected. This creates four possible combinations, TJ, TP, FJ and FP, each
showing up in four of the personality types (Figure 8.7). The thinking types’ objections tend
to arise from hurt pride because their authority or trustworthiness have been challenged. The
difference between the TPs and TJs is that the former want a defined process and the latter
want closure and a resolution of conflict. Both detach themselves from emotion. The feeling
type objections arise when people are not listened to. The difference between the FJs and FPs
is that the former desire intact relationships and the latter want open exploration and for all
to be heard. They both accept the valid role of emotions.
ISTJ ISFJ INFJ INTJ
ISTP ISFP INFP INTP
ESTP ESFP ENFP ENTP
ESTJ ESFJ ENFJ ENTJ
Figure 8.7 Killin and Murphy conflict pairs51
By mixing types, it is possible to use conflict creatively and achieve a good mix for
solving problems. Here, it is possible to create space using the Ps, add value by using both
the Ts and Fs and bring about closure by using the Js. This also helps in problem solving
other issues.
Keirsey’s personality types

Keirsey’s personality types are based on the temperaments of individuals and identify the
SP, NT, SJ and NF pairs that emerge from a whole history of research on temperament from
590 BC onwards.
Kiersey’s52 four personality types – artisan, rationalist, guardian and idealist – were
represented in a nutshell by Montgomery53 in Figure 8.8. He tries to explain the impact of
temperament pairing in modern personal and work relationships. These pairs reflect a tension
between pragmatic (rationalist and artisan) and ethical (idealist and guardian) temperaments.
Keirsey renamed the MBTI™ sectors and developed the Kiersey Temperament Sorter™
(KTS–II), which operates in a very similar fashion.
The MBTI™ adopted temperament in its guide to character and provided a simple four-
part breakdown of character as part of its introduction to type.54
Artisan SP
Say what is,
Rationalist NT does what works Idealist NF
Say what’s possible, Say what’s possible,
does what works does what’s right
Guardian SJ
Say what is,
does what’s right
Figure 8.8 Montgomery’s summary of temperament compared with the MBTI’s types55
Myers–Briggs communication and negotiation
Communication may be improved as a result of the sender being aware of the receiver’s
ability to understand the message. The Mobius communication model is another applica-
tion that can be linked with Myers–Briggs.56 This model equates acknowledgement with
perceiving, responsibility with sensing, capability with thinking, judging with commitment,
possibility with intuition and mutual understanding with feeling. Negotiation is a way of
moving communication on to reach an acceptable middle position as a result of more detailed
understanding of the other’s objections and points. The communication approach for Mobius
follows a process of negotiation, as follows:
1 Developing mutual understanding – of likeness and differences; this is designed to cre-

ate an atmosphere of wellbeing. (F)
2 Exploring the possibilities – recognise the common ground. (N)
3 Making a commitment – where choices made within the framework of possibilities get
firmed up. (J)
4 Recognising capabilities – indicating an implementing strategy for deciding on resources
and skills. (T)
5 Assigning responsibility – this commits the ‘who’, ‘what’ and ‘when’’ to the project so
that people are involved in doing it. (S)
6 Acknowledging – a monitoring and feedback action that provides a basis for assessing
success. (P)
It can be seen that this approach is also useable as a win–win negotiation framework, and its
connection with Myers–Briggs suggests that the use of a team of negotiators, each engaged
at the relevant part of the process for using their natural preferences, might be beneficial. The
first three steps of the negotiation process create the agreement and the final steps ensure the
efficient working of that agreement.
Appreciative inquiry
Appreciative inquiry (AI) was developed by David Cooperrider and Suresh Srivastava in the
1980s to deal with change and disappointment. It is based on the theory that ‘organisations
change in the direction in which they inquire’,57 so that looking for problems brings problems
and looking for solutions brings solutions. AI seeks for the best in the project and not the
worst. Seel describes it as essentially ‘life-affirming rather than deficit-based’, thus releasing
more energy for enhancing project performance.
AI is also a method for providing positive feedback by breaking people out of their typi-
cally negative mindset and habits. It looks to the concept of learning opportunities rather than
the more negative concept of problem solving. It encourages positive thinking to draw on
past successes and focus on the possibility of the current project working well. It identifies
the strengths and gifts that everyone has and uses collaboration to compliment them in order
to create cultural change in the project. The main drive is to motivate a no-blame environ-
ment that encourages learning by doing and in which mistakes are seen as tools for teaching.
Cynics may call it the art of ignoring the disgruntled, but this may be countered where there
is a widespread change in culture developing.
Gradually, the 4D model of AI developed: Discover, Dream, Design and Destiny.58 These
steps allow a neutral discussion of the issues that have the potential to be improved, by looking
at what an individual did well in the past under the Discover step; envisioning how the project
can do well in the Dream step; setting up a task force to design ways for this to happen in the
Design step, including iterative improvement; and, finally, implementing the design in the
Destiny step. A brainstorming ‘what if?’ scenario might be useful in the Discover step, which
then needs to identify areas for action and maintenance of better systems. It is also important
to review the results to ensure changes can be sustained.
An example of AI in the context of customer care is to inquire, ‘Describe a time when you
went an extra mile for the customer – what made it possible?’ This provides an opportunity
to explain something that went well and to analyse it to identify the innovative features that
could be reused. A project example is given in Case study 8.6.
Case study 8.6 Hypothetical AI for renewing schools for

a more sustainable future
An example of AI application is the development of a sustainable standardised school
to replace the Building Schools for the Future renewal programme in the UK, which has
become expensive, cumbersome and uncompetitive. There are still many old schools that
have become expensive to run and are believed to hold back learning. There is a need
to provide a positive platform for making financial savings in the delivery of future schools
in the face of scarce resources and recession. The enquiry would start with the question,
‘How do constructors create schools of exceptional value that enhance learning?’
Discovery. Look at successful buildings and examine the elements that created that
success. Standardisation, sustainability and inclusive spaces are selected as key elements.
Dream. Launch a design competition to attract specific ideas. The winner will receive
a steady stream of work, as many schools need to be renewed, which will encourage
them to offer discounts. A consortium of manufacturers and contractors may be estab-
lished that will also provide cost savings and value for money.
Design. The team can use creative technologies so that design savings can be made
and learning curve time reduced. Open up a repetitive supply stream to potential consortia.
Destiny. Let out the work to the most competitive and flexible consortia and bundle
up contracts to make their efforts worthwhile.
These steps harness positivity and creativity and bring in new blood who are pre-
pared to try new ideas and invest to promote their workload and capabilities in a rich
market. The fears of recession and changing government policy need to be removed to
attract new investment and ideas.
The application of appreciate inquiry in teams is well documented. Construction project

reviews can concentrate on successful strategy and teams can partner with the same client at
the discover stage of the next project. Lessons learned can feed in to cost cutting and time
saving in a positive way whilst protecting quality.
Developing an integrated project culture

Part of setting up the project culture is the desire to influence the nature of relationships.
The benefits of the traditional closed culture of contracting theoretically lie in the experience
of professionals in operating the contract, the ‘fixed price’ where little change is likely and
the ability of the project team to proceed without interruption. In reality, these advantages
only exist in some market conditions and over short gestation and construction periods. The
contract title suggesting a fixed price is erroneous as changes and redesign are common and
may create extra cost. In a traditional contract, even with a bill of quantities, revised prices
for change are rarely fully defined prior to go ahead. This makes it difficult for the client to
predict final cost and, in the case of disagreement at final account, one or both parties are
likely to lose out, because saving face induces an entrenched position. The closed culture is
also likely to have infiltrated supply chain relationships and contractor organisations.
Traditional contracts encourage a closed culture with familiar but complex rights and
conditions that place the client on the ‘other side of the fence’ by providing them with a ‘fait
accompli’, which excludes the client from making objective comments for enhancing value
in an improvement cycle. This may be what the client wants, but in larger projects greater
flexibility and integration are required so the client needs to contribute to and communicate
business decisions. A closed culture puts blame and claims at the centre, generating cost
escalation resulting from late changes to meet client’s true requirements.
An additional complexity is the role of third-party design consultants who may have had
a role to play in the creation of additional costs. In short, any one of changing requirements,
competitive tendering conditions, insufficient time and agreement for the design, information
flow, newly-formed project teams and less than competent management can spell disaster.
The discussion here relates to the nature of an open culture and how to move away from
a culture of closed and regulated relationships. The CIRIA C556 report describes a culture
of openness as a blame-free environment, with admission of errors on the basis of agreement
on the best way to move forward.59 It also suggests a single system of reporting to the client,
where a single understanding of the time and cost safety margins is tendered and change is
acknowledged by all parties as a way of continuously enhancing value. This system prompts
changed attitudes and the formation of an integrated team and incentives that encourage
waste-saving improvements and are sustainable for subsequent projects with the same cli-
ent. An open culture needs to recognise a joint responsibility to make change viable. This
depends upon competent management to manage change openly.
The Construction Industry Council (CIC)60 emphasises the need to identify and ensure
standards of specific project management competencies that enable continuous improvement
and the appointment of a project manager with experience fitted to the particular needs of the
client’s project.
Procurement plays a role and an open-book tendering system that allows the client to see
where costs are incurred in the event of changes in rapidly changing markets. In the case of
cost certainty, extras can be balanced by savings and a claims culture should be avoided by
agreeing who takes on the risks and who pays for contingency. The main challenge of an
open culture is sustaining commitment to value within the whole supply chain. A number of
contracts are suitable for an open culture, but they need to be used in a spirit of partnership
to be effective.
The New Engineering Contract (NEC) is people rather than contract-centred as it sets out
early warning systems that allow the two sides to get together and firm up the effect of change
on the programme and budget. It requires a regular resubmission of an agreed programme
and formal approval of revised budgets to proceed. The NEC has, however, been criticised
for its lack of legal clarity if tested in a court of law.
As described in Case study 8.7, the project to construct Heathrow Terminal 5 (T5)
moved away from traditional adversarial working by using the NEC contact. This case
study deals with the ownership of risk and illustrates an integrated approach to creating a
culture whereby ownership of risk is passed to where it can best be managed. It is a positive
people-based solution.
Case study 8.7 NEC use by EDF Energy at Heathrow

Terminal 561
The electrical installation element of the £4 billion Heathrow Terminal 5 contract was
worth £72 million and installed by EDF Energy. The contract included 365-day, 24-hour
maintenance of the occupied airport high voltage and low voltage supplies. This situa-
tion presented many challenges to a traditional contract in providing cost certainty over
a long period, because there were many interfaces between the electrical work and a
complex supply chain. It was claimed that the NEC family of contracts was chosen on
the basis of its virtues of flexibility and clarity and because it embodies the principles
of effective communication. Because of the lack of contractor experience, a joint resi-
dential training course was set up to focus on the practical application of the contract in
providing open accounting to deal with uncertainty in the scope of the electrical work.
The project team accepted that the open, no-blame culture of the NEC contract helped
the resolution of conflicts at package interfaces and enabled cost certainty because
of the quick settlement of claims for compensation. The learning curve, though steep,
was achieved more easily because of the simpler structure of the contract, which suited
those who had no prior experience of contracts.
At the end of this project it was concluded that the initial difficulties in understanding
were more than overcome by the flexibility of the NEC contract, which offered excellent
reporting and visibility. Visibility also enabled substantial additional works to be carried
out at a fair price to the client.62
Conclusion
The industry has gained in the past from the non-bureaucratic relationships that are a charac-
teristic of project work and push team working to the fore. However, the construction industry
has paid only lip service to new ways of changing the confrontational culture that has been
created by the contractual forms commonly used over the last 60 years. Communication in
the construction industry has the opportunity to change with the advent of digitisation and
integration of knowledge bases so that information is used in more creative ways. Good
communication also depends on effective face-to-face interaction, a sensitivity to the way
in which information is understood by others and an understanding of the causes of con-
flict. Communications are also improved by an open culture that provides transparency and
involves the client more closely in the management of projects.
Personality profiling and team-building models provide opportunities to deal with conflict
positively and stop it becoming personal and dysfunctional. What is needed is a wholesale
change in manager attitudes throughout the supply chain, which:
• provides positive training in productive teamwork

• cultivates the mutual benefit of win–win negotiation and understands the importance of
personality in all types of conflict
• relieves excessive stress by encouraging better relationships and positively motivating
teams to work productively.
There is still scope for improving the quality and value of one-off construction projects by
training and motivating the supply team using non-confrontational partnering approaches
so that clients respond and repeat work is generated by their recommendation. ‘Up front’
investment in training people is needed to change attitudes within the construction industry.
Notes
1 Flashman S. (2010). Seven People Management Skills in Construction Marketing. Building
Construction and Built Environment Forum.
2 Forsyth D. (2006) Group Dynamics. Pacific Groves, CA, Brooks Cole.
3 Lewin K. (ed.) (1948) Resolving Social Conflicts: Selected Papers on Group Dynamics. New York,
Harper & Row.
4 Likert R. (1967) The Human Organization: Its Management and Value. New York, McGraw-Hill.
5 Tuckman B. W. (1965) Development Sequence in Small Groups. Psychological Bulletin, 63, 384–389.
6 Argyle M. (1989) The Social Psychology of Work. 2nd edn. Harmondsworth, Penguin.
7 Argyris C. (1964) Integrating the Individual and the Organization. New York, Wiley.
8 Lewin (1948).
9 Allcorn S. (1989) Understanding Groups at Work. Personnel, 6(8), 28–36.
10 Benson J. (2000) Working more Co-operatively with Groups. London, Routledge.
11 Hiley A. (2004) Transferring to Teamwork. CEBE News, 10 June
12 Tuckman (1965).
13 Walker A. (2015). Project Management in Construction. 6th edn. Oxford, Wiley-Blackwell, p. 147.
14 Gardiner P. (2005) Project Management: A Strategic Planning Approach. Basingstoke, Palgrave-
Macmillan.
15 Gunning J. and Harker F. (2004) Building a Project Organisation. In Murray M. and Langford D.
(eds), Architect’s Handbook of Construction Project Management. Newcastle upon Tyne, RIBA
Enterprises.
16 Adair J. (1979) Action-centred Leadership. Aldershot, Gower.
17 Ibid, p. 10.
18 Construction Industry Council (CIC) (2000) Construction Project Management Skills. London,
CIC. This body represents the common voice of built environment professionals such as architects,
construction managers and engineers.
19 Cornick T. and Mather J. (1999) Construction Project Teams: Making Them Work Profitably.
London, Thomas Telford.
20 Bindl U. K. and Parker S. K. (2012). Proactive Work Behaviour: Forward-thinking and
Change Oriented Action in Organizations. In S. Zedeck (ed.), APA Handbook of Industrial and
Organizational Psychology. Washington, DC, American Psychological Association.
21 Crant J. M. (2000) Proactive Behaviour in Organizations. Journal of Management June, 26(23), 436.
22 Parker S. K., Williams H. M. and Turner N. (2006) Modeling the Antecedents of Proactive
Behaviour at Work. Journal of Applied Psychology, 91(3), 636–652.
23 Grant A. M. and Ashford S. J. (2008) The Dynamics of Proactivity at Work. Research in
Organizational Behavior, 28, 3–34.
24 Parker et al. (2006).
25 Maslow A. H. (1943) A Theory of Human Motivation. Psychological Review, 50, 370–396.
26 Herzberg F. (1974) Work and the Nature of Man. Granada Publishing.
27 McClelland D. C. (1988) Human Motivation. Cambridge, Cambridge University Press.
28 Vroom V. H. (1964) Work and Motivation. Chichester, Wiley; Porter L. W. and Lawler E. E.
(1968) Managerial Attitudes and Performance. New York, Irwin; Adams J. S. (1965) Injustice
in Social Exchange. In L. Berkowitz (ed.), Advances in Experimental Social Psychology. New
York, Academic Press, pp. 267–299; Locke E. A. (1968) Towards a Theory of Task Motivation and
Incentives. Organisation and Human Performance, 3, 157–189.
29 Somerville J. and Stocks J. (1992) Psycho-engineering the Productive Environment. Strathclyde
University.
30 Health and Safety Executive (HSE) (2004) Available online at: http://www.hse.gov.uk/stress/index.
htm (accessed 30 November 2017).
31 HSE (2017) Labour Force Survey 2015/16. Available online at: http://www.hse.gov.uk/statistics/
overall/hssh1516.pdf (accessed 27 December 2018).
32 European Agency for Health and Safety at Work (2009) European Risk Observatory Report: Stress
at Work Facts and Figures. Available online at: https://osha.europa.eu/en/node/6862/file_view
(accessed 27 September 2017).
33 Thamhain H. and Wilemon D. (1975) Conflict Management in Project Life Cycles. Sloan
Management Review, Spring, 31–50.
34 Based on Thamhain and Wilemon (1975).
35 Meredith J. R. and Mantel S. J. (2006) Project Management: A Managerial Approach. 6th ed. New
York, Wiley, Chapter 6.
36 Ibid, p. 307.
37 Fisher R. and Ury W. (1983) Getting to Yes. Harmondsworth, Penguin.
38 Lazarus D. and Clifton R. (2001) Managing Project Change: A Best Practice Guide. London,
CIRIA/DTI.
39 Laswell H. D. (1948) The Structure and Function of Communication in Society: The Communication
of Ideas. New York, Institute for Religious and Social Studies, p. 117.
40 Lucey T. (2004) Management Information Systems. 9th edn. Dublin, DPP Publications, pp. 28–31.
Shannon and Weaver are the authors of the classical theory from which this diagram is derived.
41 Mullins L. (2010) Management and Organisational Behaviour. Harlow, Pearson Education, p. 209.
42 Barnlund D. C. (2008). A Transactional Model of Communication. In C. D. Mortensen (eds.),
Communication Theory. 2nd ed. New Brunswick, NJ, Transaction, p. 50.
43 HSE (2006) Worker Engagement Case Study 10. Bovis Lend Lease Ltd: The Manchester Joint
Hospitals Project. Available online at: http://www.hse.gov.uk/construction/engagement/bovis.pdf
44 HSE (2006) Worker Engagement Case Study 7: Clugston Construction. Available online at: http://
www.hse.gov.uk/construction/engagement/clugston.pdf (accessed 9 January 2019).
46 Belbin M. (2010) Management Teams: Why They Succeed or Fail. 3rd edn. Oxford, Butterworth.
47 Belbin Associates (2014) Method, Reliability and Validity, Statistics and Research: A Comprehensive
Review of Belbin Team Roles. Available online at: http://www.belbin.com/media/1158/belbin-
uk-2014-a-comprehensive-review.pdf (accessed 10 September 2018).
48 Ibid.
49 Myers–Briggs Type Indicator (MBTI) is a registered trademark of Consulting Psychologists Press, Inc.
50 Killen D. and Murphy D. (2003) Introduction to Type and Conflict. York, CPP.
51 Adapted from Killen and Murphy (2003).
52 Keirsey D. (1998) Please Understand Me II: Char and Temp Types. Del Mar, CA, Prometheus
Nemesis Book Company.
53 Montgomery S. (2002) People Patterns: A Modern Guide to the Four Temperaments. Del Mar, CA,
Archer Publications.
54 Briggs I. (2000) Introduction to Type: A Guide to Understanding your Results on the MBTI®.
55 Adapted from Montgomery (2002).
56 Stockton W. (1994) Integrating the MBTI with the Mobius Model. St Louis, MN, Mobius Inc.
57 Seel R. (2008) Introduction to Appreciative Inquiry. Available online at: http://new-paradigm.
co.uk/introduction_to_ai.htm (accessed 18 August 2018).
58 Cooperrider D., Whitney D. and Stavros J. (2003) The Appreciative Inquiry Handbook. San
Francisco, CA, Berrett-Koehler.
59 Lazarus and Clifton (2001).
60 CIC (2000).
61 CIOB (2004). Contractors struggled with ECC at Terminal 5 but discovered its benefits in the end.
Available online at: http://www.ciobinternational.org (accessed 18 August 2018).
62 Ibid.
9 Engineering the production process
What? The construction of the project is the most visual phase when work actually starts
onsite. Some highly visible progress is also made in one of the last major stages of the
project life cycle, construction. Construction, however, can start too soon because of an over-
eagerness to demonstrate progress on the project and to make reassuring promises about
programme completion. It is vital, though, to have properly completed the planning stages for
production, so that value can be optimised in the construction process and necessary resource
planning can allow for lead-in time to be in place.
The objectives of this chapter are to:
• understand the performance of the construction industry

• highlight areas and measures of construction performance improvement
• promote an integrated delivery process through analysis and mapping tools
• explain how to reduce waste using an integrated construction process.
Why? Construction needs to prove that it provides value for money as a result of its efficient
systems and continuous improvements in output. Managers must identify and eliminate waste
to remain competitive and benchmark their performance in order to keep themselves abreast
of the expectations of their clients; this is especially so following recent critical reports on
the industry. One aspect of the role of the construction project manager is to be seen as an
industrial expert who is delegated to meet performance expectations of both the client and the
construction industry as a whole.
How? This chapter concentrates on the performance of construction and the potential for
continuous improvements in production management. It deals with how the process aspect of
the integration model meets the need for innovative solutions to improve performance in the
delivery of construction projects. Benefits of both innovation and process improvement are
explored from recent industrial reports to identify improvement areas and case studies will
be used to highlight best practice.
Construction production process

Construction is the delivery process and is the most visible stage of the project life
cycle. Construction implements the design to deliver value for the client. Project manage-
ment co-ordinates between design solutions and production processes to ensure that client
expectations are fully met or exceeded. The project manager plans the delivery process,
co-ordinates and redresses problems using modern innovations and industrial perfor-
mance indicators to ensure that the project not only achieves its goals but also creates new
Engineering the production process 243
innovations for the industry. Construction has always been challenged to improve, and new
reports, including the Global Construction Strategy 2025,1 which set improvement goals of
reducing total construction time by half at a third of overall cost.
For the industry to achieve these improvement targets it has to think beyond its tradi-
tional functions and skill base. The strategy recommends five main areas of improvement:
developing people in construction, particularly young and talented people; adopting new
smart and digital technologies; contributing more to infrastructure-based economic growth;
investing more in suitability and efficiency; and providing strong leadership. Limited inte-
gration in the production delivery process is the primary cause of inefficiency and waste.
Sharing the project’s vision and planning with the supply chain will ensure that subcontrac-
tors and suppliers commit to the project to their mutual benefit when they perceive that they
are valued and their interests taken care of through partnering. Procurement has a role to
play in forging integration among the project team and deciding the nature of relationships
that should be built (a topic covered in Chapter 4). The benefits of innovation and digital
construction technologies, a new and major paradigm shift in the industry for the twenty-
first century going forward, is discussed in greater depth in Chapter 13. The focus in this
chapter is on the ways in which the construction industry could improve its image and make
a more significant contribution to the improvement agenda through waste reduction and a
more efficient project delivery process.
Construction industry performance

Farmer’s review2 of the UK construction industry reminds us of issues surrounding it
that for many years were considered normal. Construction is under pressure to ‘improve
its act’, but there is a great variation in performance on construction projects. Many cli-
ents have had good experiences, but conversely many have been let down on promises
that they believed to be binding and have experienced extended programmes, cost over-
runs and quality problems. The structure of the industry is fragmented between design
and production, which has often meant that the client has been confronted with separate
design and production teams and sometimes a plethora of planning advisers. This has
inhibited an integrated approach to delivering value to the client and prevented openness
and honesty, due to a lack of trust between the separate teams, limited access to the client
and extended communication channels. This structure has often led to a confrontational
approach. The industry’s products are perceived to be too expensive and to take too long
to finish compared to leading practice in other industries. Construction is a significant ele-
ment of national output and productivity, however. Ruddock3 measured the contribution
of the construction industry to international GDP as 5.58–5.95 per cent, with the larger
percentage representing smaller countries.
Koskela et al.4 correlate construction waste with the level of fragmentation in the supply
chain and its management. Integration may be wrongly equated with allocating extra time and
resources to getting the design right, while less time and fewer resources are allocated in the
construction delivery process. When design solutions are not aligned with client value or pro-
ject buildability, actual results will deviate from expected results. Waste occurring as a result
of deviations has a huge effect on productivity. Traditional procurement and contracting prac-
tices create a silo culture among construction professionals, which leads to design solutions
being pushed downwards for the construction delivery team to figure out for themselves. In
this way, a culture of blame may also develop. A chain of waste can accumulate over all life-
cycle stages, which limits the client’s ability to realise value for money. The project manager
can ensure that project planning is interactive and an environment in which the team plans
together and learns from each other is created.
Another area of significant challenge is uncertainty deriving from complex projects. In
the last few decades construction has endured huge pressure to deliver large and complex
projects faster and below the benchmark cost whilst simultaneously exceeding client expec-
tations. Many construction projects can be breath-taking in their size and impact; consider
the following examples:
• Oresund Bridge between Denmark and Sweden, a combined road and rail bridge andtun-
nel. At 7.85 km long, it cost $5.7 billion.
• Burj Khalifa in the United Arab Emirates, the world’s tallest building. At 828 m high,
with 160 storeys, it is almost twice the height of the Empire State Building in New York.
• Petronas Twin Towers in Kuala Lumpa, which were built simultaneously by two differ-
ent contractors. A58.40 msky bridge was constructed between them on the forty-first and
forty-second storeys.
• Chep Lap Kok, Hong Kong’s international airport, which is one of the biggest in the
world and is built on a man-made island.
• Mercedes-Benz Stadium in Atlanta, which was designed to be the greenest ever built.
Indeed, it received Leadership in Energy and Environmental Design (LEED) platinum
certification. However, the complex eight-petal roof leaked and needed repair almost
immediately.
All of these buildings have put their respective cities on the map, but the question is: does
success mean an instantly iconic landmark, a world-beating dimension or an effective and
efficient construction delivery process? In the UK, projects such as the Channel Tunnel, the
Millennium Dome and Terminal 5 at Heathrow Airport have become headline news, not for
their feats of ground-breaking engineering and architectural innovation (which they possess)
but for exceeding both budget and timeframe. Case study 9.1 looks at the credentials of the
Channel Tunnel.
Case study 9.1 Great structures

The ‘Chunnel’ is a joint Anglo-French venture first mooted in Napoleonic times. At
31 miles (50 kilometres), it is one of the longest tunnels in the world, joining Calais
in France and Folkstone in England. It was built over a three-year period at a cost of
$21 billion, making it 700 times more expensive than the Golden Gate Bridge in San
Francisco. It used machines two football pitches in length that could bore 250 feet per
day, hundreds of feet below the seabed. These tunnel borers started either side of the
English Channel and met halfway, lining up exactly. In fact, three tunnels were created:
an East–West-bound tunnel for high-speed trains (100 miles per hour); a central tun-
nel for servicing and to act as an escape route; and cross-over tunnels in between. It
opened in 1994 and in the first five years, in spite of some operating problems, trans-
ported 28 million passengers and £12 million tonnes worth of freight. Three fires have
occurred since 1994; in 2008, 32 passengers were evacuated from a train fire through
the central tunnel and received only minor injuries.
Defining the terms of productivity
Productivity is an overarching principle to improve outputs for the same inputs or to main-
tain outputs for fewer inputs and is generally applied to construction, but has implications
for any process including design. Value is described similarly as function divided by cost
and is generally applied to the design process to optimise it. Factors affecting productivity
have been under scrutiny for many years. The inception of operations management, and
subsequent management theories, can be linked to the improved productivity of both people
and the production process. Productivity can also be affected by the quality of management,
which should be applied to reduce abortive and corrective work. In the construction sector,
integrated management of design and construction was tackled by buildability studies to
optimise the two.
McKinsey has compiled a number of reports,5 together with statistical analysis, on the
productivity crisis facing the industry. The reports estimate that overall productivity has
grown by only 1 per cent since 1995 compared to the global overall average growth of
2.8 per cent, while manufacturing growth reached 3.6 per cent. Common issues include inef-
ficiencies, confrontational relationships and low profit margins, which indicate a persistent
failure to deliver value even though the industry has continued to receive one of the highest
and fastest levels of growth in investment. Inefficiency has made projects cost, on average,
80 per cent more than their budgets, and can be completed up to 20 months late. Large and
complex projects experience the greatest number of problems due to the increased risk they
face: 98 per cent will overrun cost by more than 30 per cent and 77 per cent will suffer a
40 per cent delay. Low productivity improvement and poor value to clients affect contrac-
tors’ profitability and potential for growth. Between 1995 and 2014, only 15 per cent of
construction firms sustained a growth in double-digits, while average growth in other sectors
ranged between 20 and 30 per cent.
Olomolaiye et al.6 distinguished between breakthrough in productivity and control, describ-
ing both as necessary. Breakthrough refers to innovative new approaches to improve systems,
whilst control involves maintaining existing systems but looking at how to make them more
efficient. Control is also necessary for the ground-breaking productivity improvements that
make a difference to productivity. Innovation requires cultural and business change, manage-
ment commitment and changes in attitude, ultimately leading to lean construction.
Environmental and human factors are critical to the pursuit of better performance; they
have a profound effect on the people involved in the construction process. Katzell and
Guzzo7 provide a view of human psychology as it relates to productivity under three metrics:
output, withdrawal and disruption. In construction, output is measured by the quantity and
quality of work achieved and cost-effectiveness in performance. Withdrawal can be meas-
ured by worker turnover and absenteeism. Disruption is measureable in terms of number of
accidents occurring. Management efforts must forge the right balance between productivity
improvements and resourcing for goal setting, design of workflow and workers’ empower-
ment. Workers will have more confidence in managers who exhibit both strong people skills
and technical understanding of construction processes. The drive for smart construction tech-
nologies will have but limited impact on the industry if the culture and skills of its people do
not change.
Problems endured by the construction industry over the years are apparently systemic,
and require a shift away from traditional approaches. It is not surprising that human factors
are the dominant cause of underperformance because we are responsible for the choices we
make, the systems and subsystems we use and the environment we create. Case study 9.2
is a tale of contractor-driven innovations to improve efficiency. There are opportunities for
construction to take a leading role in delivery of the project and to standardise repetitive con-
struction tasks that are often forfeited by lack of buy-in from clients.
Case study 9.2 Striving for continuous improvement

The contractor is a 26-year-old international company operating from five centres
around the world. The company provides a range of professional services, including
consultancy and construction. The company aspires to challenge traditions by finding
better ways to deliver projects for clients and the construction industry by:
• Partnering with clients to create a change in perception regarding offsite manu-

facturing to reduce time onsite and overall cost. This involved the use of precast
concrete components for a 45-storey tower superstructure, construction of offsite
modules for cupboards and bathrooms and sustainable cross-laminated timber
structures.
• Partnering with the supply chain through framework procurement, which resulted in
a cost saving of up to £92 million in a single project, zero disputes and high safety
performance.
• Leading innovation in complex offsite fabrication for a busy international air-
port. The ratio between prefabricated elements to in-situ construction was
3:1, thereby reducing the duration of disruptions to airport operations from six
months to one week.
• Working to achieve continuous improvement through best practice and innovation.
Synchronized procurement, careful planning and logistics and value engineering
won the company an award for the most eco-friendly development in Africa. It was
able to turn geographical challenges into opportunities for innovation that saved a
significant amount of cost and time.
Acknowledgement to the MACE group8
Measuring performance
Performance management allows the project manager to set a baseline plan against which
actual performance can be benchmarked and deviations rectified. Measuring performance
means that the project manager can track the degree to which project goals are being
achieved so that measures can be taken to alleviate deviations if needed. Performance
management is an ongoing task for the project manager as the construction process is
underway. Management attention shifts from planning to monitoring and controlling the
project so that deviations from the plans are seen and problems and their causes identified.
The project manager maintains a communication link with both the prime contractor and
the client to allow for corrective actions that must be taken to optimise value for the cli-
ent. They monitor day-to-day progress against baseline information to ensure targets are
achieved and the project is likely to meet its goals. A number of performance reports are
produced for use not only by the project but also the client’s organisation and the entire
Continuous improvement is one of the key performance indicators (KPIs) used to offer
a better service to the client in the belief that it produces returns. It involves developing a
culture of innovation, target setting, continuous monitoring of standards and reviewed per-
formance. It also recognises the role of the client and the construction/design team working
more closely together to produce improvements and add value. To be successful, benchmark-
ing should be focused and a senior manager needs to select critical areas for improvement
that will impact on the project as a whole. Continuous improvement requires challenging
goals that are achievable, a willingness to change and persistence in getting there. It is not
always going to be possible to improve over the life cycle of one project.
Benchmarks can be applied to various business parameters, such as level of profitability,
respect for people and the environmental impact of the company, or to project parameters,
such as customer satisfaction, predictability of time and cost plan forecasts, number of defects
and accidents recorded. It is the latter that we are interested in here and systems have been set
in place by many national construction industries.
Case study 9.3 is a construction best practice profile indicating the take up of issues that
have become important to competitiveness.
Case study 9.3 Benchmarking and continuous

improvement
This contractor has a £500 million turnover, 40 offices throughout the UK and 3000
employees – statistics that put it into the ‘large’ category of contractors. It has adopted
the maxim, ‘If you look within the sector you are always going to follow. You need to look
outside to lead.’ This has caused it to make cutting-edge improvements by looking to
solutions that have been adopted by firms in other industries that have made substantial
improvements.
Over a period of 12 years, the contractor has steadily introduced a series of initia-
tives that have built upon each other and lead to an integrated process, such as prompt
project completion commitments, process definition and re-engineering, building an
understanding of client requirements and the development of customer service units,
standardisation and lean thinking. Improvements have steadily occurred and client sat-
isfaction currently stands at 87 per cent.
With the publication of the Latham and Egan reports, the contractor revisited its
processes and introduced a programme of lean construction to further remove waste-
ful activities from the whole value chain. This led to an integrated management system
combining quality, health and safety and environmental management. Individual rewards
were given for meeting Egan targets as demonstrated by KPIs. The contractor believes
that the keys to continuous improvement and integrated construction are:
• Top-down commitment – the direct involvement of a director in driving each of the

improvement agendas.
• Bottom-up workshops and team building – the involvement of all in simple on-the-
job improvements.
• Measurement – use of KPIs to demonstrate where improvement is taking place.
These measure the likelihood of repeat business, user friendliness of the business,
environmental awareness and defect levels.
(continued)
(continued)
The company has seen a financial improvement in its results, indicated by fast-growing
profit margins, a continuing increase in turnover, a rising customer satisfaction score,
defects above industry average since 2002 and registration for integrated assessment
by the BSI for quality, safety, health and the environment management systems. Its
accident incident rate has declined, but it is also testing its customers’ perceptions to
ascertain if it is regarded as a ‘safety conscious’ contractor. It wants to extend its use of
KPIs to its supply chain.
Adapted from the Construction Best Practice Profile and Constructing Excellence9
Key performance indicators

Modern performance measurement dates back to the 1900s when it was used to rate workers’
performance so that proportional rewards could be worked out. In the early 1900s man-
agement scientists, including Taylor10 and Mayo,11 used work study methods to measure
efficiency and productivity. Upon identifying the major causes of delay and underper-
formance, managers trained workers so that they performed their tasks more efficiently.
The UK construction industry began using KPIs in 1998, following the publication
of the Egan reports, to maximise productivity and identify target areas for improvement.
Construction KPIs have proven their usefulness in making it possible for an industry-wide
strategy to be developed for continuous improvement. The construction industry KPIs are
published each year by Constructing Excellence12 using performance data collected from
across the UK.
KPIs are developed, amongst other things, for design, construction and facility man-
agement. These can be tailored to suit performance expectations in respective countries.
Different stage KPIs can be combined in a single metric for long-term sustainability, as
shown in Figure 9.1. A construction industry performance report by Glenigan13 indicates that
KPIs have changed over the years to reflect new evidence and policies.
Benchmarking
Benchmarking is a method of improving performance in a systematic and logical way by
measuring and comparing your performance against others, and then using the lessons learnt
from the best to make targeted improvements. It involves answering the questions:
• Who are our competitors?

• Who performs better?
• Why are they better?
• What actions do we need to take in order to improve our performance?
Benchmarking can be used alongside both KPIs and critical success factors to compare your
performance with another of a known standard. A benchmark is a business standard that
resembles an Olympic qualifying standard: unless you meet a certain minimum, you are
unlikely to be a competitor. The standard is also likely to move upwards in a competitive
market. The average of other competitors is only the threshold standard for competing.
Service delivery times; environment;

response times; site security; maintenance
costs; statutory compliance; customer
satisfaction; retention and motivation
FM
KPIs Client satisfaction;
Use; performance;
contractor’s
form and materials;
satisfaction; industry
access; engineering
Construction profitability; industry
systems; internal Design
KPIs productivity; cost
environment; space; KPIs KPIs
predictability; time
construction; urban and
predictability; defects
social integration;
at handover; respect
character and innovation
for people
Environmental
KPIs
Emissions to air; emissions to water;

emissions to land; resource use;
biodiversity; designed energy use; water
efficiency
Figure 9.1 Project stage KPIs and sustainability
These benchmarks may be based on industry, national or global standards. They may also
be compared between organisations in the same sector, same industry or against different
industries. The choice depends on the competition faced. Measuring performance in con-
struction may be based on:
• Internally set targets, which are often based on continuous improvement between pro-
jects, year to year or as a stated target for best practice in the business.
• Performance of others in the construction industry who are carrying out similar activi-
ties, who are the ‘best in class’.
• Financial performance, e.g. by comparing profitability or turnover growth ratios against
those of others.
• Generic targets across industries that represent excellent management achievements,
such as training levels, business results and customer satisfaction.
Where comparable data from previous years or projects exist in an organisation, self-
assessment or internal benchmarking can be performed for production cost per unit area,
productivity rates and achievement of targets for health and safety. A site-level comparison
of concurrent sites or related tasks are compared on a like-for-like basis. Task managers
leading the operations on both cases must commit to collecting high quality information.
Appropriate techniques for work sampling will reduce variability and generate an effective-
ness comparison. Data from time cards, daily or weekly reports and materials can be used
to measure productivity and work progress. It is unlikely such data will be consistent, but if
it is collected over a long period of time the effects of management style and environmental
factors can be minimised. At a project level, data on cost control and productivity can be
assessed. It is important that project-specific conditions, including human factors, weather
and management efforts, are taken into consideration when identifying causes of disparity
in performance.
Mapping the process

Inefficiency, defects and unpredictability of projects correlate with how processes are man-
aged. The problem with fragmentation is that it leads to unco-ordinated efforts as every player
in the project attempts to manage what concerns them. Process mapping is used to model,
visualise, communicate and test systems. In projects, it is used to make sure that all operations
carried out in the project life cycle are planned and covered. Process mapping can take the
form of a flow chart indicating the activities (in rectangles) and key decision points (in dia-
monds). It is often connected with a series of different pro-forma documents. Electronically,
these are accessed as links across the intranet or the project extranet, making it a good com-
munication tool and knowledge base for all members of the project team. Problems that arise
are related to the compatibility of systems and shortfalls in the amount of information acces-
sible. Sophisticated systems may access comprehensive external sources through knowledge
portals. More integrated internal systems may be linked to a knowledge management intranet,
which identifies a wide range of experience and resources within the organisation.
The advantage of formal system such as process mapping is that it works well in quality
assurance. The disadvantage is that the system may become inflexible and discourage inno-
vation and improvement, though it is possible to build in review and improvement stages.
Case study 9.4 describes a formal system for outsourcing to an facilities management organi-
sation carrying out both maintenance and smaller projects not exceeding £300,000 for a
client who has several complex facilities at different locations.
Case study 9.4 Estate management process map

A facilities management company operates a three-year rolling contract extendable
on the basis of performance. The value of work on one of its sites is £5.5 million per
year for which it is paid a fee. The amount of work may vary each year and the fee is
adjusted on a pro-rata basis. Its work is broken down into maintenance and projects.
The proportion by value is approximately 50 per cent for projects and 25 per cent each
for responsive and planned maintenance. There are approximately eight managers and
technical officers employed to supervise projects. The system is quite formal and 33
documents are used to measure the progress of projects from inception to completion;
statutory forms are also needed to cover building regulations and the CDM regula-
tion procedures. Project information has been grouped together in a process map that
covers quality assurance, health and safety, programmed work, planned maintenance,
emergency callout, non-programmed work, financial management, works management
stores and resource management.
The system is linked directly to each of the relevant forms in order to ensure com-
plete use of the system. Looking specifically at the projects, the process map could be
constructed as follows. There are four key players and two audit agencies. The process
map in Figure 9.2 indicates four specific approval stages from initial client request up to
the pre-start meeting and also shows the responsibilities for each stage. This map could
also be linked to the specific contract pro-forma as they become relevant at each of
these stages, in order that the relevant checklists are processed and approvals signed.
There should also be an opportunity for review of this process; for example, when the
job is logged, a checklist of 11 items must be followed showing the extent of the design
services provided and answering questions such as:
• Does the brief need amplification with the client?

• Does the programme need amplification with the client?
• Is contact with the utilities required?
• Is a policy on hazardous material required?
• Has a planning supervisor been appointed?
There is also a sign off for the procurement manager to consider before the subcontrac-
tor starts work. This is called the initial quality check, which covers, for example, safety
checks, statutory requirements and use and protection of existing services.
Fire 10% audit

CDM officer DE
registration audit
FM
Statement of Log job Design to

Sketch design Approval Audit for
Brief functional Meeting
proceed RIBA stage 4 building
PMM requirements between FM
FM-D PMM FM-D regs MA
CWC and FM-D
CDM pre-
tender plan
Technical WSM
analysis
Tender Final stage
Pre-start Select FM Tender period Go ahead
packages checks
meeting contractor PASS PMM
FM FM
FM + C FM Financial
analysis Prepare
Sign off
FM designer detail drawings
+ spec
FM FM-D
Figure 9.2 Process map for small projects using design services
Key: PMM = client site sponsor (property manager); WSM = main FM contractor management team;
CWC = client’s consultant; FM-D = designer (contracted to WSM); MA = building regulations approval
audit; DE = client head office (audit); C = contractor.
Process mapping is a starting point for quality improvement systems because it allows for
effective communication systems and can also easily incorporate the measurement of KPIs
to assess productivity so that different project teams may be compared and lessons learnt.
Encouraging suggestions for adjustments to the system from the workforce improves project
integration as they feel involved and do not simply tolerate flaws, inconsistencies or blocks
in the system.
Analysis
The process mapping in Case study 9.4 indicates the integration of the approval process
with the design process. This indicates a need to have good communications with prompt
responses for the project to proceed efficiently. It is a useful system to have where there are
repeat projects and there is a single designer and some regular subcontractors. Where there is
a broader range, a more flexible system may become necessary to cater for different reporting
and approvals in delivering the final project brief.
Process mapping ensures that a system is adhered to; however, when adopting a qual-
ity assurance system, bottom-up improvements need to be built into the system to avoid
frustration. This system provides two forms of feedback. First, is a customer satisfaction
annual survey, inviting the client to rate characteristics of the service they have received on
a 1–10 basis. They can measure tangibles, reliability, responsiveness, assurance engendered
and empathy, i.e. making the effort to identify customers’ needs. Second, is a form called ‘An
opportunity for improvement’, which refers to the ISO 9001 quality system in place and is
intended to identify technical improvements or cost savings relevant to other contracts. Users
must take responsibility for filling the form in. The attractiveness of the form is that it invites
staff to propose solutions as well as identify problems or queries.
Principles of lean and value

Lean is all about value and the steps that create value more efficiently. The value stream
may be defined as: ‘the sequence of activities required to design, produce and provide a
specific good or service along which information, materials and worth flows’. In customer
terms, it delivers what the customer values efficiently. In construction, value is characterised
through design, procurement, production planning, logistics and construction, and can also
be extended to operations. Success means front loading the resources in design in order to
eliminate waste efficiently in manufacture by planning ahead, facilitating concurrent work-
ing between the designer, manufacturer and supplier and working from a reliable database of
products, systems and components so that there is a carryover of learned systems into new
products and designs.
These are the five lean principles proposed by Womack and Jones14:
1 Define the value needed by the customer.

2 Identify the value stream, challenge every step and eliminate those that do not add value.
3 Line up and balance the flow to eliminate waiting and stock.
4 Let the customer pull the value so that they guide production.
5 Seek perfection by redefining the process for continuous improvement.
Value-focused thinking is a holistic approach to the whole business in order to bring the best
value product to the customer. This means looking at all the processes that bring the product
to the customer. In projects, it means understanding the customer’s business and the wider
organisation of the project, not just applying value to the process itself. A value stream map
(VSM) for the project would consider purchasing, design, production, accounting, recruit-
ment and market factors. Specific projects will also need to incorporate the detail of parallel
activities, such as parallel subcontract actions in the production process and awareness of
critical path due to integrated sequencing and resource constraints. It is important to identify
flows in materials information and other resources and to integrate them to maximise worth
and eliminate waste.
Continuous flow is a key activity that tries to balance connected activities within a
process. In bricklaying, for example, no one should be waiting for, say, mortar or bricks,
and bricks stocks should be eliminated by batching deliveries to suit daily production
(Just in Time or kanban). The customer pull is more subtle in commercial development
projects but on a private housing site houses are produced at the selling rate predicted.
Speed determines the manpower for the following trades: brickwork, first fix, plaster, sec-
ond fix, flooring and painting; each must run at the same speed, sometimes called the line
of balance. On less repetitive jobs, customer pull might relate to phasing requirements.
Production lines run parallel and are interlinked and this is shown through a critical path
method (CPM) diagram. Successful ‘lean production’ construction projects have developed
their own culture.
Taylor had great success concentrating on the production process (time and motion study
and incentive), but value stream mapping (VSM) is a more holistic approach that takes into
account the importance of information flows, business objectives and manufacturing lead
times. These additional issues are critical for construction projects, which need integrated
communication flows and operate with many organisations and often in prototype, where
flows need to be devised as well as fine-tuned.
Toyota is the leading and most used example of a lean production system. Toyota chief
engineer, Taiichi Ohno, made sure that workers were involved in the Plan–Do–Check–Act
(PDCA) cycle, shown in Figure 9.3, developed by Deming,15 because he believed that sepa-
rating planning from doing was a big waste factor.
After the Second World War, Sakichi Toyoda developed the quality and production pro-
cesses used by Toyota cars in response to what he saw as the waste built into the large mass
production of cars in factories throughout the USA. What he saw in the supermarket, that
an empty shelf received prompt restocking (customer pull), was considered to be more cost-
effective than a wasteful push system that built up stock and created a need for excessive
storage. See Case study 9.5.
PLAN
CHECK DO
ACT
Figure 9.3 Deming’s cycle of learning

Case study 9.5 Toyota production improvements

The Toyota production system (TPS) was developed by Toyota and Ohno (its chief
engineer) to tackle crippling problems that existed in many manufacturing systems.
Toyoda wanted to build cars to customer order, deliver them instantly and maintain no
inventories. The new system was competitive based on its three simple principles:
• Eliminate muda (waste).

• Avoid overburdening people or machines (muri) to stop bottlenecks and breakdowns.
• Enable mura (smooth flows) from one process to the next to eliminate waiting and
transport.
The TPS incorporated the idea of production kanban that provided just in time deliveries
for the production process and withdrawal kanban that adjusted production to customer
demand. Its other approach to production, kaizen (continuous improvement), recog-
nised that improvement was always possible through relentless reflection (hansei).
Toyota used its workers to identify and problem solve on areas of waste. In addition
to these productivity improvements, quality had to take precedence.
In 1961 every employee in Toyota produced one car per month (10,000 employees
and 10,000 units/month). As the result of improvements, by 1987 Toyota produced
230,000–250,000 units using 45,000 employees, so that every employee produced five
cars per month. This improvement is critical to competition and ‘best in class’ productiv-
ity without reducing quality, leading to increases in profit margins assuming the same or
more sales are possible.
This type of productivity improvement involves radical changes in people, machines
and material procurement, which are usually dependent on incremental board-level
decisions in the long term. On independent large projects there is more autonomy,
which offers potential for faster radical applications and results.
Other terms that help to develop a defect-free culture include ‘the wind in the sails’, which
refers to the essential human contribution to the system. Two other terms are used by the
Toyota production system to identify elements that eliminate defects and correct human error
without abortive work:
• Jidoka to diagnose and correct human error automatically or stop the process in order to
allow correction, thus allowing wider supervision.
• Poka yoke, which means incorporating failsafe systems to avoid counting, sequencing or
physical attribute errors in the product.
The issue of ‘defect free’ is discussed in greater detail in Chapter 14. Construction, whilst
being less machine orientated, could nevertheless adopt similar principles.
Ohno’s seven wastes

The Japanese term muda is radical as it identifies unnecessary actions in the production pro-
cess that the client is unwilling to pay for. The Toyota view of traditional production is that it
involves only 5 per cent of pure value-adding activity, but is supported by essential activi-
ties such as access scaffolding, lifting, walking to workplace, machine downtime, rest periods
or stacking material. The remainder is outright waste, such as keeping paid workers waiting,
throwing away offcuts, reworking and sweeping up. With support work there are oppor-
tunities for innovative technology and methodology to reduce rest periods and machine
maintenance or to eliminate the need for storage and to make fetching and carrying more
efficient. Method study is used to identify this and make machines and workers more effi-
cient, leading to the use of less material and fewer personnel. Ergonomics may also make the
worker more comfortable and therefore more efficient. There is no excuse for outright waste
but to address it a cultural change in the construction industry is needed; it currently wastes
90 million tonnes of material in the UK alone, 15 million tonnes of which is new unwanted mate-
rials. Case study 9.6 illustrates the attitude to waste of Toyota’s chief engineer, Taiichi Ohno.
Case study 9.6 Cultural development waste

Classically, Ohno observed a worker manning their machine and a conversation such
as the following ensued:
Ohno: How often does your machine break down?

Worker: It never breaks down, Ohno san.
Ohno: Well, then what do you do all day?
Worker: I watch this machine.
Ohno: All day you watch this machine that never breaks down?
Worker: Yes, this is my job.
Ohno is reputed to have termed this situation ‘a terrible waste of humanity’. It really
demonstrated the potential for the worker to be engaged with the planning system as
they had the power to improve it. Using every worker’s thinking capacity more effec-
tively may also motivate them to achieve more.
Acknowledgement to Dennis (2007)16
Ohno identified seven wastes as a way of analysing where work needed to be done to
become more efficient; these are described below in relation to the construction activity17:
• Waiting means machines or people are subject to delays because of lack of materials/
stock or unbalanced production line processes that are dependent on each other. The
solution is to balance resources to make each process matched in length and/or ensure
delivery is reliable so that materials are always there. In construction a series of repeti-
tive trades often follow each other sequentially into each room and each needs to be
resourced to take the same time to avoid fast trades waiting.
• Over-production means that too much work in progress is done in one batch. In con-
struction it does not mean that it is not wanted; rather, it is delivered early so is stored or
damaged, or it is processed early so needs temporary protection and workers are laid off
or inefficiently diverted whilst others catch up. Capital is tied up in paying for it early.
The solution is ‘just in time’ or kanban with a calculated minimum buffer of stock to
allow for unexpected problems or interventions. Flow charts help to identify problems
of non-value-adding storage, protection and damage replacement. Lack of space onsite
and poor storage conditions make the situation worse.
• Rework refers to not getting it right first time and could be the result of quality defects
in workmanship, receiving wrong or late instructions or faulty drawings. The solu-
tion is better preplanning, value management, quality control and feedback, worker
accountability and firm change management control. To assume no change of scope in
construction is counterproductive and flexible planning is effective in terms of keeping
customers on side and stress levels low.
• Motion waste refers to excess fetching, carrying and twisting because of poor layout
and workplace planning and design. Foundation work may force bricklayers to work
in cramped conditions that cut down productivity. Filling up trenches with concrete or
battening the sides may be more expensive but speed up work and save resource costs.
Process layout planning and method study help productive choices to be made; a stand-
ard bill of quantities (BOQ) description does not.
• Over-processing refers to over-specification and doing more than the customer asks for
or needs. A function analysis and a joint customer–designer value appraisal should be a
base for brainstorming a ‘just okay’ design and specification.
• Inventory refers to having to house, stack and multi-handle material whilst it waits to
be used. A solution can be worked around just in time, which strictly means delivering
just enough material for a day’s work. Excess material gets in the way of work in pro-
gress, but in a pull system (call off) excess can be better controlled. A suitable buffer
(contingency) can be built on this but excludes storage costs. Supply chain manage-
ment helps here.
• Conveyance waste is harder to visualise and happens because of unwieldy batches or
targets, so the target is to have smaller batches and to design layouts carefully. It induces
motion, inventory and delay w astes. An example is the use of tower cranes onsite when
one trade ties up the crane for lifting a large load of formwork plywood for the next two
floors of concrete frame. This causes a bottleneck delay for other trades needing to use
the crane daily. The stock also takes up floor space and creates blockage, multi-handling
and diversion of labour from true value-adding activity. A part load with a single lift
supplying a day’s plywood is likely to be less disruptive.
Talent (or resources) has also been added to the above list to recognise that talent needs to
be identified and nurtured where it exists in order to avoid wasting it. This suggests flex-
ibility in working teams and multi-tasking. Each of the wastes needs to be reduced, so, for
example, reducing motion means stopping moving things to storage and eliminating of
multi-handling. These wastes mainly emerge from the production flow and can be quanti-
fied by value stream mapping the production process. Ohno trained the workers at Toyota to
reduce defects (rework) by giving them the power to stop the line if they received a defective
component from ‘upstream’ in the value stream.
Dennis18 also warns against a ‘scavenger hunt for “muda”’ that deflects from the more
proactive management of a process. He called for awareness of waste so that methodology
and worker training are prioritised to incentivise efficient working layouts.
Techniques have been developed, such as the 5S system (described later in this chapter),
to ensure a logical, efficient, transparent and standardised system of work. Case study 9.7
describes a serial project to reduce waste.
Case study 9.7 Refurbishment of job centres

A programme to roll out the reimaging of job centres across the UK was devised by
the Department for Work and Pensions (DWP). It was keen to make this an exem-
plary project and to drive out the waste it saw in the system by integrating the supply
chain across the country. In procuring, it selected on the basis of 40 per cent on price
and 60 per cent on quality. The DWP asked the lead contractor to form an integrated
team comprising consultants, the client and supply chain representatives, with a virtual
company ethos and a shared sense of commitment. Incentives were based on ‘team
output’, which meant that the team worked together to optimise value and maximise
supply chain expertise during the design process. A percentage of progress completed
(PPC) partnering contract was used and an open-book payment system was utilised
whereby contractors were paid actual costs but were also offered financial incentives
to make cost savings. No penalty or retention clauses were used in order to emphasise
the client’s trust in the team. This soft or ‘people’ approach produced impressive results
in relation to the DWP’s demanding targets:
• 12 per cent saving on construction against a target of £80 million.

• 25 per cent reduced component prices on a target of £40 million.
• 89 per cent of job centres finished within target cost.
• 85 per cent of job centres completed on schedule.
• A tenfold improvement on average HSE health and safety statistics.
• No contractual disputes.
Developing closer cross-business relationships and moving away from a hierarchical to

an integrated supply chain resulted in a higher quality result at a lower price. The shar-
ing and communicative culture established across several tiers of the supply chain, the
repetitive nature of the job, meaning that lessons could be learned and applied to the next
location, and team members’ willingness to learn from each other also helped produce
this result. The bulk buying made possible with the DWP’s purchasing power and suppli-
ers’ confidence in the provision of ongoing work both helped to make construction lean.
Visual management and the 5S control system

Visual management refers to the use of diagrams to communicate improvements and change
to workers. 5S is a tool to improve layouts for better productivity. The five Ss are:
• Sort: to remove unnecessary tools and materials from workplaces to create an uncluttered
environment, make choices simple and ensure such equipment is used more effectively.
• Stabilise: to make sure everything has a place and to identify minimum and maximum
stock levels relevant to lead times of materials.
• Shine: to keep clean, to prevent fresh clutter gathering and to fine-tune improvements.
• Standardise: to create meaningful that everyone understands.
• Sustain: to monitor performance and challenge existing practice in the light of feedback
and performance, but also to protect gains made so that the system does not revert.
The 5S system offers the following benefits: it goes beyond worker productivity to look at
constraining factors for the whole team; it encourages ideas from the bottom up, which work-
ers can more easily buy in to; and it puts in place structures, such as visual management, that
make it possible to pass on lessons learned and stop slippage. The last point is particularly
important in construction where teams are changing all the time and a single culture needs to
be established. This system is illustrated in Case study 9.7. In construction, the 5S system is
much more powerful when a subcontractor can take ownership of the solution.
Just in time (JIT)

It could be argued that JIT is a precursor, together with total quality management, of lean
construction. In this chapter, however, it is regarded as part of the process of achieving
lean credentials.
Just in time is defined as getting just enough product on hand that will be needed for that
day’s work. It means that stock levels are reduced and space is saved. Stock levels match
the lead time so that delivery does not hold up production, e.g. if the bricks can be delivered
twice a week, then keep two to three days’ stock. The number of bricks delivered is depend-
ent on the output rate of the final product, e.g. two houses per week.
Optimisation of the just in time cycle depends on resource levelling (heijunka) of the differ-
ent trades involved so that no trade holds up another. This balance can be achieved as follows:
one bricklayer lays 60 bricks/hour (1m2) and two bricklayers lay 120 bricks/hour (2m2). If one
plasterer can then cover 16 m2 in an eight-hour day (five bags of plaster), then you need
one plasterer and two bricklayers. This will amount to 4800 bricks per week and 25 bags of
plaster and, say, 30 bags of cement and two tonnes of sand. This can be delivered as one small
load of bricks and a mixed load of sand and cement. This is efficient as it is sufficient to keep
production going and optimises storage space to about a third, by ordering weekly loads.
Just in time has many implications, as it is a tight control of material suppliers and needs
their support to make it work and to split loads. Alternatively, a contractor can use an inter-
mediate logistics centre that can send materials in mixed loads in exchange for discounted
bulk deliveries from suppliers to pay for it.
The distinction between bulk materials, such as sand and cement, and small multiple high-
value deliveries is important. A bulk low-value delivery takes lots of space and should be JIT.
A bulk highly engineered delivery such as door sets or kitchen units suits JIT with some buffer
built in to allow for faster fix rates and long lead delays. Small complex deliveries can benefit
from initial grouping and labelling by a co-ordinating supplier, such as ironmongery sets for
different door types. This makes sequential delivery much more feasible and saves time, sophis-
ticated storage and retrieval, loss or damage onsite. Case study 9.8 gives an example of JIT.
Case study 9.8 JIT accommodation

A contract for student accommodation in the South-West involved elemental flat-pack
concrete walls, floors and roof units, which slotted together with windows and services
already installed in the units. Accommodation for nearly 2000 students would take the
form of several different multi-storey blocks and time was short. Units were delivered
on edge in small numbers on the back of large articulated low loaders. There were
11,000 units to deliver and 300m2 per day were made at the factory. Four-hundred units

Plate 9.1 and 9.2 Panelised concrete in construction
could be fixed each day, which meant the manufacturer had to stockpile in advance of
delivery.19 The contractor used six 100-tonne cranes. Gangs of workers were needed
to bolt units together, place and structurally screed floors and put up edge protection
for each six-person flat. Units were fair-faced internally and clad later by 25 different
types of external cladding materials, including brick.
Lorries were loaded in the North and informally waited at a nearby service station
on the motorway to take up the buffer of traffic delays. Units were called onsite in the
exact fixing sequence and were lifted up by mobile crane to four different gangs work-
ing simultaneously on separate parts of the site. Lorries delivered to ‘their’ gang at set
intervals and were supported by a crane that lifted units into position and held them
until fixed. Lorries for different gangs waited offsite until they could enter a single site
access and be processed and driven to position. Gangs staggered their work to receive
lorries at different start times and were trained to work to identical targets to maintain
staggered deliveries.
This example of JIT required a high degree of balanced production to keep the lor-
ries flowing at their maximum rate of production. Any unplanned hold ups would have
had drastic knock-on effects for the manufacturer as well as for the progress of the site
in terms of sequencing and stocking at the factory. If the sequence had been changed
or restricted to only some of the blocks, the long turn-around for curing the slabs would
probably have caused delays.
Photographs are reproduced with the permission of Buchan Concrete.
Lean construction
Lean construction is defined by Constructing Excellence20 as ‘managing and improving the
construction process to profitably deliver what the customer needs’.
Lean construction is the application of the principles first propounded by Ohno to elimi-
nate waste from the overall design and production process and deals with the optimisation
of value streams eliminating waste between activities or stages, i.e. the integrated whole.
Value streams also eliminate waste elementally, as might be targeted traditionally in time and
method studies, e.g. the faster laying of bricks. The implementation of lean therefore requires
leadership and organisation.
Construction projects are the equivalent of several production lines. This means identi-
fying related parts of a construction project, e.g. constructing the wall as part of the whole
superstructure, rather than a micro focus on a particular trade. The ‘production lines’ are
related, and these must be co-ordinated where there are interfaces to give production flow
and balance. Koskela21 propounded a new production philosophy for construction based on
the Toyota system and suggested that non-value-adding activities were not recognised as
a problem in traditional control processes and that critical path methods need to sequence
activities to create the most logical flow. Techniques such as Last Planner (discussed later in
this chapter) were further developed by Ballad and Howell to provide a basis for finalising
sequenced JIT with a team of specialists by examining fresh constraints to the programme
immediately prior to production schedules and cutting out the waste of rework.
Lean construction was described by Howell22 as being similar to traffic flow whereby arrival
at the chosen destination at the desired time depends on the speed of the slowest vehicle in
each lane, but is also affected by the smoothness of the driving experience as breaking and
accelerating take time and involve wasteful effort. As interventions in construction projects
are highly likely, they can be controlled by intensive pre-planning using appropriate buffers
between each activity. Small or no buffers (tailgating) increase the likelihood of wasted effort.
Lean construction is also concerned with client values (business, specification, scope and
quality) and overall project efficiency (time and value). As such, it moves away from the
tools of earned value management, elemental cost control, work breakdown structure and
organisation/task responsibility and uses integrated project delivery (IPD) to plan multi-
tasking in detail. To prevent waste there is necessarily greater intensity in the pre-planning
stage as it involves defining (not tweaking) reliable processes that result from the uniqueness
of a project. The following sections deal with specific examples of lean in construction.
Agile Construction Initiative (UK)

The Agile Construction Initiative (ACI), based on the Latham Report, was developed in
order to improve productivity and brought industrial and government partners together with
the University of Bath to ‘utilise the lean production management techniques pioneered in
the automotive industry’.23 It has a particular emphasis on the development of benchmarking
in an integrated way to provide a platform for the introduction of innovation and develop-
ment of the lean concept for the construction sector. Agile’s twin-strand approach was top
down to help improve process productivity, such as in procurement for the client, and bottom
up to build a database of demonstration projects that used good practice aimed at improving
site production processes. ACI research gave senior managers in participating organisations
confidence in the claims made for productivity and quality improvements. It introduced new
ideas for cutting out waste and rework and inducing competitiveness locally and worldwide.
ACI has published several case studies that are available for training.
Last Planner
Last Planner, promulgated by Ballard,24 is a particularly practical development of lean con-
struction that uses some of the paradigms of lean production. It involves five elements:
1 Master scheduling where milestones and long lead items are identified.
2 Phase pull planning where phases are agreed and conflicts in operation identified.
3 Collaborative agreement on planning production tasks.
4 Monitoring of production to make sure that nothing stops planned work.
5 Learning by measuring progress against plan and looking into causes of failure and
methods of improvement.
In other words, Last Planner concentrates on progressive planning stages to ensure readiness.
It has developed its own terms. The system was set up as a way of countering the delay in
feedback systems and developing a right first time approach to increase reliability to 70 per
cent. Ballard’s research also challenged the system to achieve a 90 per cent reliability level.
Collaborative scheduling results in make-ready task sheets that emerge from weekly work
plans feeding forward to the work of the week ahead. A series of promises are extracted from
trade representatives but only after they have negotiated conditions to their satisfaction so that
non-compliance can be eliminated. This is monitored by a percentage of progress completed
(PPC) as a secondary feedback control, which allows continuous improvement to take place
by looking at the reasons for non-compliance. A ‘reasons sheet’ may be generated to plot the
number of occurrences of a particular fault and to provide a Pareto focus. The Pareto principle
(or the 80/20 rule) identifies those few causes that have the most significant effect.
The work-flow control charts balance information and materials in relation to a network
of logically-related production activities and help in determining resource levelling, duration
and sequencing of the activities in the weekly detail plan. This is illustrated in Figure 9.4. The
weekly period planned for is shown between the dotted lines and the sequence flows left to
right as the precedence diagram protocol.
Sequence of activities
Planning period
Last planner:
Activity 4 (75% in period)
Balance
activities and
resources
Lag 1
smoothing to Activity 1
equalise activity
lengths Lead 1
Lag 2
Activity 2
Activity 3 Activity 5
Lead 2
Figure 9.4 Balanced flow for next planning period with an overlapping series of activities
Each subsequent activity is constrained by a minimum start to start lead time from the
previous activity, determining the amount of overlap. The end of the subsequent activity may
also be delayed by the finish to finish lag time from the previous activity.
In Figure 9.4, the critical path passes through activities 1, 2, 3 and 5. Activity 4 is not
critical. The system shows that leads and lags between activities 1 and 2 are equal and leads
and lags between activities 2 and 3 are equal. Activity durations need to be equal in order to
achieve a smooth flow otherwise delays occur waiting for one to finish.
In order to achieve smooth flow in the planning process, a strong commitment to the rate
of work (e.g. m2/hour/person) must be established. Look at the available time for comple-
tion, divide it by the total area in metres and the rate/hour to determine how many people/
machines are required.
Table 9.1 shows how resources need to be levelled to the target time for a component
(rendered brickwork) to be completed. Buffer times need to be allowed in case unforeseeable
delays are encountered in instances of bad weather or sickness.
The system recognises continuous improvement and has an inbuilt feedback review to
learn lessons when things go wrong. Ballard describes the change from the traditional push
system, which plans a ‘should be done’, to a ‘can be done’ input culture the output of which
‘will be done’. The traditional system, with a lower reliability, relied more heavily on time
for corrective action. A ‘will be done’ system has spent this time up front alongside previous
production actions so it is saved from the critical path of production.
Difference between lean manufacturing and lean construction

Lean production has invented certain processes that are based on a manufacturing process
based in a single place where movable products are brought to the work station and passed on
to the next. A lean solution is to improve the layout of the workstations and the efficiency of the
workstations themselves. Koskela25 lists the different characteristics of construction as unique
site-based variable conditions and the temporary working of multiple organisations on one site
location. Ballard and Howell26 describe construction as unique because it has fixed position
manufacture and is rooted in place. In construction, the product is not movable and is built in
position onsite with ‘the stations moving through the whole adding pieces’. Its location has
certain unique characteristics bringing uncertainties, such as weather and ground conditions, so
needs a far more responsive system. Rather than a continuously improving fixed serial layout
there is a need to plan and co-ordinate parallel activities within a larger programme of events
uniquely compiled for the project. The value of a project is related to a specific customer who
wishes to live or work in that particular place. Projects vary in these three respects depending on
their sector, for instance houses can be batched with plenty of repetition, shopping centres are
required to be generally attractive and pipe-laying projects may be less multi-organisational.
Table 9.1 Method statement to build a plastered wall using resource levelling
Activity Quantity Rate to lay (60 Time taken by Target time Resource levelling
bricks/m2) one bricklayer (8-hour day) (column 4/column 5)
(hours)
Laying 12,000 1m2/hour 2000 80 hours 25 bricklayers

bricks bricks (10 days)
Rendering 750m2 16m2/day 46.8 days 10 days 5 plasterers
Waste eradication in this context is a more dynamic learning process, as new teams work
on a unique process and layout created specifically for the project. Ballard and Howell claim
that lean techniques can be applied to much of the construction industry by minimising its
peculiarities by, for example, off-site manufacture and use of standard components so that
the dynamic site process is reduced to assembly and testing. However, there is a remainder
which resists these techniques and fresh ones need to be applied to reduce waste and increase
efficiency in these areas. Here, they suggest the reduction of fragmentation, e.g. between
designer and constructor, and the more intensive application of pre-planning.
Lean construction improvement

Lean construction in the UK is an application of Japanese lean production techniques and its
productivity claims are not without critics; Sarhan et al.,27 for instance, criticise its miscon-
ception in construction. They argue that the term ‘customer’ is defined in a broader sense as
the ‘client’ and only in a few instances does it refer to other stakeholders and the end user
who have a marginal influence on decisions affecting design and construction processes. Not
only that, the whole concept of value is front-loaded to the design stage, which is perceived
to lead to best functionality and significant waste reduction. While a broader view of value
would focus on realistic and long-term performance, which is exactly what the client wants,
their study suggested that waste reduction measures are limited to Ohno’s ‘seven wastes’
only. They suggest including social value and the environment as indicators of long-running
performance and project benefits that the client really wants. These should be accentuated in
the life cycle covering both the project and the product – hence the term from cradle to grave.
The application of lean in construction can be bureaucratic and inflexible if misconstrued.
Lean is a way of thinking pertinently with an agenda for sustainability, client value systems
and better team collaboration. The emphasis on learning by doing also allows lean to evolve
as the culture of the construction industry gradually changes to accommodate new innova-
tions and technologies, such as offsite manufacturing, and other collaborative tools such as
building information modelling (BIM), which are discussed in Chapter 13.
Modern methods of construction

The term modern methods of construction (MMC) covers prefabricated components built off-
site and fast-build components developed onsite, such as tunnel form. Offsite manufacturing
(OSM) techniques were discussed in Chapter 6; here, we will focus more on efficiency and
productivity gains. MMC products can be categorised by location of manufacturing or shape:
• Offsite manufacturing – This is generally divided into three construction systems: vol-
umetric (modular), panellised and hybrid. As the components, such as walls or fitted
rooms, are manufactured in a controlled industrial environment there will be a critical
path for both preparation work onsite and production work offsite. Modules and panels
may be produced using traditional materials, such as timber, steel, bricks and concrete.
The controlled factory environment reduces disruptions from weather, and the complete
modules or wall panels can be assembled fast on arrival to save time and reduce risks.
• Onsite manufacturing – Methods such as insulating constructing formwork (ICF) have
replaced the traditional brick wall in construction of ‘Passivhaus’.28 The insulated form-
work allows for in-situ concrete to be poured continuously for the whole wall. The methods
increase construction speed, reduce material waste and produce high quality concrete.
• Structural frames – Steel and timber frames are produced offsite and transported to site
as complete components. It is also possible to manufacture a complete roofing system
for assembly onsite. Use of offsite structural components allows for processes to take
place concurrently both onsite and offsite, e.g. foundation preparations onsite while
structural frames are being prefabricated offsite.
This type of MMC helps to shorten the construction programme and reduces the impact
of less reliable conditions onsite.29 Design needs to be more complete to allow for lead-in
times. This brings in specialist suppliers early on following concept design so as to cope
with the longer lead-in time of manufacturers and to co-ordinate the structural requirements
and determine sequencing of unit manufacture. Foundations can be constructed during the
manufacture of units and panels, but units need to arrive to suit the sequence as sections of
site work are completed. The volumetric construction system has an even bigger impact
as its detailed design has to be partly completed before infrastructure can be designed and
approvals sorted. Figure 9.5 shows the equivalent lead-in and construction times for MMC
and traditional construction.
Standardisation
Standardisation of construction components is an important aspect of cutting out wasteful
redesigning. In the Lindon Study that compared work by Lehrer McGovern Bovis in South
Carolina and the UK, it became apparent that the buildings in South Carolina were cheaper
because there was much greater standardisation of components, especially the mechani-
cal and electrical systems, and modular division of the buildings. In contrast, tailor-made
Start onsite
Pre-construction/offsite stages
Onsite activity
Approvals 1. Traditional construction
Concept design Detail design
Infrastructure Substructure Superstructure Roof Fit out
Start onsite
Pre-construction/offsite stages
2. Volumetric construction Onsite activity
Approvals
Concept design Detail design
Infrastructure Substructure Super

Roof Fit out
structure
Figure 9.5 Comparison of the lead-in and construction times of different MMC and traditional
construction
mechanical and electrical systems in the UK made design and manufacture expensive.
McDonald’s is another example of modular standard construction; its drive-through outlets
are erected in four weeks.
The foundations for a single-storey building are simple and drainage and utilities merely
need to be provided and connected to the mains; preliminary costs are thus low. Modular
offsite components are expensive because they need to be transported; however, when mod-
ules are repetitive costs can decline while quality remains the same. Case study 9.9 describes
some other global cost comparisons.
Case study 9.9 Global cost comparisons

Turner & Townsend conduct a yearly survey of 43 construction locations on every
continent.30 In 2017, the five most expensive cities in the world in which to build were,
on a simple US$ comparison, and in order of expense: New York, San Francisco,
Zurich, Hong Kong and London. When a measure like PPP is used, which factors living
costs with prices, London tops the bill and New York slips to twenty-first, though the
differences do flatten out. For New York, the market issue is huge, and thus a factor of
productivity, as other places in Britain have roughly the same PPP value as New York.
Building prices inflated on average by 3.5 per cent, 2.7 per cent in advanced econo-
mies, and here building costs generally increase more than inflation. The highest five
building price inflations vary by 6–20 per cent. The five lowest vary by 0–0.5 per cent.
Globally, there is a growth in markets but China is declining from a high 6.5–6%, the
USA is growing (1.5–2.0 per cent) and the Eurozone is shrinking slightly (2–1.5 per cent).
Preliminaries range from 5–15 per cent of construction costs but tend to be highest
in the big cities and advanced economies where labour is expensive. Further away from
cities there is less demand and margins thus tend to be 3–12 per cent lower than in
inner cities. The highest margins are for rapidly growing cities (e.g. Johannesburg and
Buenos Aires).
Large European countries only vary in range from 97–107 per cent of UK prices, with
Eastern Europe up to 45 per cent less. Other sources indicate that the USA averages
are 10 per cent lower than those of the UK, although they vary greatly between cities.
China’s costs are about 50 per cent lower than those of the UK, though Hong Kong
is only 10 per cent lower. The Middle East is broadly similar, with Bahrain being most
expensive at 11 per cent higher.31
Undistorted lower productivity is an important part of winning international contracts. It

also makes a positive contribution to the competitiveness of individual countries’ economies.
Margins are a factor of supply and demand, with the highest margins being in the emerging
economies. Higher preliminaries would seem to match with requirements for more sophisti-
cated infrastructure, the bureaucracy of regulations and the accessibility of sites in big cities.
Construction performance
This section uses case studies to provide illustrative examples of performance in action.
They are real examples of good practice in the construction stages of the project life
cycle. They illustrate areas of logistics, prefabrication, quality control, programming and
package management.
Case study 9.10 Logistical planning on construction

management fit-out
The site is a seventh-floor section of a 12-storey building with double basement and
plant room adjustments, for a prestige client in Canary Wharf. At the height of the work
600 people were working on the site on 30 separate packages, including a logistics
package. The packages were let and managed by a construction manager but each
package contractor had a direct contract with the client. A separate fee was payable to
the construction manager. Cluster co-ordination was carried out by a lead specialist con-
tractor for each zone of work, such as the ceilings, floors and kitchen and canteen areas.
The construction manager developed programmes for each floor broken down into
quadrants as a way of co-ordinating the zones and monitoring progress. These pro-
grammes became the basis for trade contractor co-ordination. For communication
purposes, a trades dated finishing programme was established in order to monitor com-
pletion of individual parts of the programme. This provided a latest finishing date for each
of the trades in a particular sector. The programme was tight, with most of the trades
running on two floors and overlapping the previous trade on each floor. A 25-week turna-
round for each of the follow-on trades was planned within a 38-week programme.
In order to control quality, a mock-up of the office finishes was carried out as a
package at the start of the contract. One problem area in terms of quality had been the
drywall finishes. In some cases, these had to be redone three times to meet a demand-
ing specification, which caused problems by delaying the following trades.
This project is an example of a highly intensive work programme in which any hold ups
affect the critical path. The hands-off nature of the construction management function was
only made possible by the setting up of well-prepared packages and a well-administered
change control system. As most decisions for significant design change had to be made
in New York where the client representative resides, this had the potential to delay the site
team if the problems were not anticipated in good time or client changes were frequent.
However, the co-location of an integrated design and construction management team
onsite helped in getting design decisions implemented immediately. Giving ownership
to the trade contractors by making day-to-day co-ordination their responsibility provided
space for more advanced planning and contingency management. It is probable that
the pure construction management procurement created by letting out all work, includ-
ing logistics, allowed more objective strategic decisions to be made by the construction/
project manager, but this may have cost the client more up front.
Case study 9.10, on logistics, indicates the close association that exists between the design
and construction stages in deciding the most advantageous methodology in running a project.
The construction stage tests the effectiveness of the strategy and pre-construction design and
planning stages. The project manager is faced with a complex organisational challenge when
the supply chain opens out to a wide range of specialist contractors and interacts with differ-
ent parts of the design team in the detailed design. The speed and complexity of construction
means that production targets need to be clearly stated and closely monitored. Feed-forward
control is more effective than feedback given by benchmarking measurements.
Case study 9.11 Prefabricated construction

The Superior Product Team was set up as a consortium of contractors, designers and
the client to provide completed corridor units that fit inside a structural steel frame.
Each prefabricated unit weighed 6.8 tonnes and was 4m long, 7m wide and 2.5m high.
The units could be double-stacked or divided into two narrower corridors 3.5m wide
(Figure 9.6). Each unit was externally cladded and glazed to provide a finished water-
proof product bolted within the onsite in-situ steel frame. The units were complete with
modular plug and fix heating, electrical and IT services. The steel frame was stand-
alone and configured to the route of the corridor, which generally linked two buildings. In
order to install the units within the frame, rails were fixed to the frame at the height of the
floor and units were lifted into the frame by leaving out a section of the top frame struc-
ture (Figure 9.7). Units were lowered onto the rails and pushed along them until they
met up with the last corridor unit; they were then sealed, bolted together and connected
to services. This action was repeated for each corridor unit in both directions up to the
access holes in the steel frame. Tolerance was critical, allowing the steel to be slightly
out of true longitudinally; however, high tolerances were required on the rail level and
the plumb of the structural columns to which the units were bolted top and bottom. Once
a corridor was completed between the two buildings, the services could be hooked up,
tested and commissioned.
The production line was set up in a factory close to site and units were stored for
at least the capacity of a night’s work. Night-time was when free access to the build-
ing works was usually guaranteed and was least disruptive to the client’s business.
A single unit size was designed to fit on the back of a rigid bed lorry, similar in size to
a large open-sided container, so needed to be braced to ensure safe transport. A unit
was lifted straight off the lorries and into the in-situ structural steel frame. A multi-skilled
Plug-in
services
2.5m
4.0m
7.0m
Figure 9.6 Diagrammatic view of a corridor unit
(continued)
(continued)
Hole into main

building
Rails
In-situ steel frame
Corridor unit
Figure 9.7 Steel framework with unit within
production gang received the unit, manhandled it along the rails and installed it. Specialist
‘Hiab’ equipment was used to load and unload the units, saving on the constant hiring of
cranage. The fixing rate grew from two to eight units per night-shift as the gangs became
familiar with the construction process. Approximately two modules were produced per
day in the factory.
The installation programme was quite flexible, because there was a need to cope
with delays for installation to suit onsite progress and client operations. The critical
areas of management were caused by the limited storage capability and the need to
deliver components to the factory in job lots to suit a flexible delivery schedule. This
meant that forward planning was required. This was often achieved by negotiation of
extra site visits if stored units were mounting up. To maintain quality and motivation, the
factory teams and installation teams were interchangable.
Design changes resulted from a better integration of manufacture and installation.
Quality improvement led to the re-engineering of brackets in order to make fixing easier
and to cope with lesser tolerance onsite. The factory management stopped work on an
ad-hoc basis when feedback was given, in order to give the whole workforce ‘one-point
lessons’. This group learning process ensured equal delivery to all on a check, prevent
and repair basis and saved the need for quality inspectors. Another problem was the
deflection of the structural steel when fixing the units in the middle of spans, creating
movement after two corridor units were complete and stressing the sealing between
them. Both the design of the sealing and the rigidity of the structure were reviewed.
Adjustments to the painting methodology were also made to ensure consistency of
finish. The manufacturer is now in the process of extending its operations to other
sites needing the same units and is developing its transport fleet to cope with a longer
turnaround time.
Case study 9.11 illustrates the way in which a flexible installation programme has been
achieved by the coming together of the client, the contractors and the designers to design a
standardised component (corridor units) to create a fast-build scenario to meet a continuing
client requirement to address limited site access. This approach could also be applied produc-
tively to any type of repeat unit needed in a project or preferably series of projects. Another
example is the new Severn Bridge crossing where heavy deck units were standardised and
manufactured on the bank in order to be craned directly onto barges for fixing. In addition,
there is a culture of continuous improvement at the factory, which included motivational as
well as technical considerations.
Detailed preplanning drawing together designer, main contractor and manufacturer, as is
evidenced in the case study on prefabrication, provides a measure of confidence that works
well with the very limited access that is afforded onsite and the speedy installation that takes
place once the units arrive. Case study 9.12 looks at quality control onsite.
Case study 9.12 Quality control of piling

This site consisted of a piling mat comprising 1523 12m and 15m piles to be placed
in a series of concentric circles across the footplate of the building. Continuous flight
auger piles were used. The tolerance for the piles was critical as the scientific use of the
building required high floor-level tolerance and foundation movements were critical to
this. High loadings were expected. An inspection and test plan (ITP) was devised and
supervised by the managing contractor. The specialist contractor was given first-line
responsibility for quality and setting out. The managing contractor acted autonomously
on small discrepancies, but any discrepancies discovered in the piling outside a band of
tolerance required structural engineer involvement and a possible redesign of the piling
pattern to compensate. To ensure the quality of the piles, several checks were made:
• a testing programme for the integrity and movement of the piles

• a testing programme for the strength and slump of the concrete
• a record of the piling operations indicating the pile concrete profile and wet con-
crete pressures
• an interpretation of complex clay and chalk ground conditions to predict different
piling methodologies and concrete slumps.
Each of the above checks provided clues on the success of the pile. Indeed, the last
two measures proved to also be partly preventative because they reduced the cost of
remedial work by taking the more immediate action possible in the circumstances. Test
results were linked to pile information for identification.
Concrete could be rejected if it was not within certain slump limits and cube tests
revealed it was under strength. The slump needed to be higher if it was cast into chalk,
which sucked out the water from the concrete making it stiffen more quickly and causing
problems for the lowering of the reinforcement cage into the concrete. The seven-day
results were tied to other data about the pile from the computerised piling log and the
28-day strength predicted. A bad result or prediction would lead to re-boring the pile.
(continued)
(continued)
Proof testing was carried out on 5 per cent of piles in-situ, using 23-hour load tests
to check friction resistance. Cheaper integrity testing was carried out on all cured piles
using non-destructive testing and measuring toe-seat deflection. Any substandard piles
were supplemented with further adjacent piles.
This regime needed a full-time quality checker onsite on behalf of the main contrac-
tor. This cost was offset by also giving them a planning and monitoring role to predict the
rate of piling progress and to co-ordinate safe, uninterrupted access for three piling rigs,
their associated equipment and concrete lorries. The checker also supervised the pro-
gress of other works and progress of the master programme. All work was completed in
11 weeks at an average rate of 30 piles/day and a maximum of 48 piles/day.
It could be argued that the piling contractor should have been accountable for non-
compliance and no inspection would then be necessary. However, the huge delay and
financial consequences of the foundation works being found faulty at the user stage
justified the extra cost of a single well-trained checker with adequate management
back-up.
Case study 9.12 indicates the intricate nature of quality control and that the need to super-
vise it arises out of the tight tolerances required by the client. However, value has been built
into the process by using the supervisor to also co-ordinate other work. This is an example of
effective feedback control.
The first three reports indicate the interaction of quality and time constraints in particular.
Best practice has been used to reduce cost as well as ensure a sustainable profit level for the
contractor, which means considering the reduction of project waste, not just in materials but
also in the process. Rework and the duplication of management tasks are wastes of resources.
This points to better preplanning and better communications.
Conclusion
This chapter looked at production productivity with special reference to the need to bench-
mark the process for continuous improvement. Lean construction is the current terminology
for driving waste out of the system. The project manager has a significant responsibility, in
their unique position, to influence both the design and construction functions by bringing sav-
ings that better integrate design into construction and generate possibilities for a more open
culture in contracting organisations. Now clients can perceive that service improvements are
possible and that more fundamental changes are required in the construction process to give
them value for money. This has led to a review of lean production methodology and a more
holistic look at systems such as offsite manufacture, defects reduction and more committed
leadership and team building to programme waste reduction into the process.
Construction is a major process of improved integration between designer and contrac-
tor and client and contractor. Forces for change that may break the mould of ‘confrontation
construction’ are the threat of greater international competition, more client willingness to
develop integrated teams, negotiated contracts, the need to conserve natural resources and
both public and private clients’ greater awareness of the need for controlled competition to
meet public expectations in relation to sustainability and investment for the future.
Forces that act against change are business uncertainty and short-termism, along with the
culture of a throwaway society with its avid thirst for new facilities and instinct for bargain hunt-
ing. There is always a desire for cheaper buildings but no widespread commitment to, trust or
belief in leaner construction as a means of providing financial benefit to both client and contrac-
tor. Where framework and partnering agreements exist, those in the supply chain often mistrust
that continuous improvements are brought about by regressive contract conditions between
themselves and the managing contractor, making long-term partnerships less sustainable.
Productivity improvements are brought about by better planning of the workplace so that
workflows are better understood. Value stream mapping can be used and better layouts and
programming shared with those who will be doing the work. Cramped site conditions often
force a reduction in materials storage; however, planning deliveries to arrive as they are
needed means less work in moving them around and also eliminates storing cost. Making
work more comfortable for workers and empowering them to improve productivity means
that many competent minds work together. Prefabrication and offsite manufacture are now
seen as ways in which to reduce uncertainty, speed up work and reduce the skills required
onsite; these practices may also be safer. The extra cost of prefabricated components can be
offset by faster construction times and fewer fixed costs, especially with increased produc-
tion. Added value is gained in improved quality and reduced defects.
Productivity is motivated by continuous improvement, which is achieved by benchmark-
ing performance to the ‘best in class’. It generally means that KPIs will need to be created so
that improvements can be measured and business competitiveness maintained. An average
performance is a minimum and is not enough to improve. Improved quality and reduced
defects, rework and accidents mean that productivity improvements are beneficial to contrac-
tors and can be shared down the supply chain. Gaining top management commitment will
be necessary to pay for the initial capital expense of the new productivity systems. As much
work is carried out by subcontractors, the supply chain will also need to be trained in lean
construction and brought on board in the planning process so that feed-forward systems, such
as Last Planner, are allowed to operate on a regular basis throughout the project.
Greater integration and in-time scheduling should include the design team so that infor-
mation can be co-ordinated and shared throughout the procurement programme. The early
involvement of the contractor in examining buildability, predicting true lead-in periods and
establishing dates for information required is always helpful; it is essential if they are to man-
age the offsite manufacturing process.
Greater respect and long-term commitments between client and contractors are key to
cultural change and the development of trust in these relationships. This is especially the case
for contractors, both large and small, who depend on repeat business. However, as one-off
clients account for a great deal of business, it is also critical to establish ways in which to
create better short-term relationships. This area of collaboration needs to be developed to get
away from the claims culture generated by competition and one-off opportunism. A realistic
first cost with an opportunity for reduction needs to be distinguishable from a low unrealistic
price. This is an ethical and not a market issue so that savings can be generated on a pain
or gain sharing basis, using earlier contractor involvement, value engineering, supply chain
innovation and open-book accounting.
Notes
1 Department for Business, Innovation and Skills (2013) Construction Strategy 2025: Strategy.
London, The Stationery Office.
2 Farmer M (2016) The Farmer Review of the UK Construction Labour Model. Available online at:
http://www.constructionleadershipcouncil.co.uk/wp-content/uploads/2016/10/Farmer-Review.pdf
3 Ruddock l. (2000) Information on the Construction Sector: A World-wide Survey. Available online
at: http://www.arcom.ac.uk/-docs/proceedings/ar2000-177-185_Ruddock.pdf (accessed 23 July
2018).
4 Koskela L., Pikas E., Niiranen J., Ferrantelli A. and Bhargav D. (2017) On epistemology of con-
struction engineering and management. In Proceedings of the 25th Annual Conference of the
International Group for Lean Construction. DOI: 10.24928/2017/0336. Available online at: https://
research.aalto.fi/files/27327956/Koskela_et_al._2017_On_Epistemology_of_Construction_
Engineering_and_Management.pdf (accessed 20 August 2018).
5 Changali S., Mohammad A. and Nieuwland M. (2015) The Construction Productivity Imperative.
Available online at: https://www.mckinsey.com/industries/capital-projects-and-infrastructure/
our-insights/the-construction-productivity-imperative (accessed 20 August 2018); Agarwal R.,
Chandrasekaran S. and Sridhar M. (2016) Imagining Construction’s Digital Future. Available
online: https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%20
Infrastructure/Our%20Insights/Imagining%20constructions%20digital%20future/Imagining-
constructions-digital-future.ashx (accessed 23 July 2018); Barbosa F., Woetzel J., Mischke J.,
Ribeirinho M. J., Sridhar M.,(2017) Reinventing Construction through a Productivity Revolution.
Available online at: https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-
insights/reinventing-construction-through-a-productivity-revolution (accessed 23 July 2018).
6 Olomolaiye P., Jayawardine A. and Harris F. (1998) Construction Productivity Management.
Harlow, Addison Wesley Longman/ CIOB.
7 Katzell R. A. and Guzzo R. A. (1983). A Psychological Approach to Productivity Improvement.
American Psychologist, 38(4), 468–472.
8 See the MACE website: https://www.macegroup.com/projects/highpoint
9 Constructing Excellence (2005) Mansell Turnover Rises on Back of Customer Satisfaction, Case
Study 274. Available online at: http://www.constructingexcellence.org.uk/download.jsp?&url=/pdf/
case_studies/mansell_kpis_274.pdf (accessed 1 December 2011).
10 Taylor F. W. (1911). The Principles of Scientific Management. New York, Harper & Row.
11 Mayo E. (1933). The Human Problems of an Industrial Civilization. Cambridge, MA: Harvard
University Press.
12 Constructing Excellency (2017) KPI and Benchmarking. Available online at: http://constructing
excellence.org.uk/kpis-and-benchmarking/ (accessed 28 December 2017)
13 Glenigan (2015) UK Industry Performance Report: Based on the UK Construction Industry Key
Performance Indicators. Available online at: https://www.glenigan.com/sites/default/files/UK_
Industry_Performance_Report_2015_883.pdf (accessed 31 January 2018).
14 Womack D. and Jones D. (1996) Lean Thinking: Banish Waste and Create Wealth in Your
Corporation. London, Simon & Schuster.
15 Deming W. E. (1950) Elementary Principles of the Statistical Control of Quality, Japanese Union
of Scientists and Engineers (JUSE).
16 Dennis P. (2007) Lean Production Simplified: A Plain Language Guide to the World’s Most
Powerful Production System. 2nd edn. New York, Productivity Press.
17 Ibid.
18 Ibid.
19 Stansfield K. (2005) Precast Student flats at UWE, Bristol. The Structural Engineer, 83.
20 Constructing Excellence (2004) Lean Construction, Fact Sheet, p. 1. Available online at: http://
constructingexcellence.org.uk/wp-content/uploads/2015/03/lean.pdf (accessed 20 December
2018).
21 Koskela L. (1992) Application of the New Production Philosophy to Construction. CIFE Technical
Report 72. Stanford University, Center for Integrated Facility Engineering.
22 Howell G. (1999) What is Lean Construction? Proceedings of the Global Lean Construction
Conference, 26–28 July, Berkeley, CA.
23 Bath University School of Management (2010) Agile Construction Initiative. Available online at:
http://www.bath.ac.uk/management/larg_agile/overview.html (accessed 19 August 2010).
24 Ballard H. G. (2000) The Last Planner System of Production Control. PhD thesis submitted to the
Faculty of Engineering of the University of Birmingham. Available online at: http://etheses.bham.
ac.uk/4789/1/Ballard00PhD.pdf (accessed 16 September 2018).
25 Koskela L. (1997) Lean Production in Construction. In L. Alarcon (ed.), Lean Construction.
Rotterdam, AA Balkerna.
26 Ballard G. and Howell G. (1998) What Kind of Production is Construction? Available online at:
http://leanconstruction.org.uk/media/docs/BallardAndHowell.pdf (accessed 16 September 2018).
27 Sarhan S., Elnokaly A., Pasquire C. and Pretlove S. (2018) Lean Construction and Sustainability
through IGLC Community: A Critical Systematic Review of 25 Years of Experience. In: Proceedings
of the 26th Annual Conference of the International Group for Lean Construction (GLC). Available
online at: https://doi.org/10.24928/2018/0274 (accessed 16 September 2018).
28 The Passivhaus is built to strict wall insulation specifications to minimise heat exchange with the
outside environment.
29 NHBC Foundation (2006) MMC Guide. Available online at: https://www.nhbcfoundation.org/
publication/a-guide-to-modern-methods-of-construction (accessed 17 December 2018).
30 Turner & Townsend (2017) International Construction Market survey 2017: Building Momentum.
Available online at: http://www.turnerandtownsend.com/en/insights/international-construction-
market-survey-2017/ (accessed 16 September 2018).
31 Harris E. C. (2010) Slow Economic Recovery Sees UK Costs Falling by Further 10%. Available
online at: http://www.echarris.com/reference/news/slow_economic_recovery.aspx (accessed 10
August 2010).
10 Managing risk and value
What? Value defines the outcomes and benefits accrued from the building and its use, which
can be expressed in both financial and nonfinancial terms, as well as other imperceptible
gains. Risk, on the other hand, is not a direct opposite of value but a force that affects the
value; if not managed, it can lead to loss of control of the project scope, deliverables, cost,
quality and time schedule. Because risk is inherent in all processes, inputs, outputs and
interactions taking place throughout the project, its management forms an important part of
day-to-day activities of the project manager and their team, and specific ownership of risks
has to be agreed. Risk therefore is a recurring theme throughout this book and needs to be
managed effectively. The main objectives of this chapter are to:
• consider the integrated concept of risk and value, people’s values and attitudes and their
connection with decision making and business planning
• investigate value management techniques and their practical implications in securing the
best value for money
• appraise the responses available for dealing with risk
• demonstrate how risk and opportunity are assessed and managed to reduce uncertainty
in construction projects
• evaluate the tools and techniques used to integrate risk and value management
• examine the effect of risk and response to change in the client brief.
Why? Only 20 per cent of risks are known at the inception stage of a project; the remaining
80 per cent are unknown to the team initially but will progressively unfold at the design,
tendering and construction stages. Awareness of risk and its impact on project value leads
to better decision making and effective implementation of the project. Ability to manage
value and risk in tandem is one of the top attributes of a good project manager. The intention
to produce best value for the client must also be complemented by identifying and manag-
ing risk. Alertness to the potential impact of known and unknown risks on project goals
helps the project manager to make effective decisions leading to better project outcomes, and
will also aid in developing a well-coordinated construction programme. Risk management
involves preparing a strategy to mitigate human, technical and environmental factors to give
the project a better chance to deliver the desired outcomes and satisfy the client and users
with greater certainty. Unmanaged risk causes delays and therefore the need to accelerate the
project and reworks, but if managed well it is critical to delivering good value to the client
and optimising project benefits for all stakeholders involved.
How? Risk and value management processes are consensus-based and a team of experts
must agree on the probabilities, potential impact and priorities to optimise project outcomes.
Managing risk and value 275
It is a common practice for risk to be identified and assessed by a specialist service and
for the project manager to keep a risk register up to date during implementation. As
projects are becoming more complex and client demands higher, there is a need for a
shared approach to managing both risks and value through collaboration, innovation and
efficacious partnering. This is not a ‘how to’ chapter on techniques (though these are
mentioned); rather, it argues the case for a holistic, integrated approach in order to sup-
port effective managerial decision making. Integration involves bringing people together
to make decisions related to productivity, sustainability, safety and benefits in order to
deliver best possible value for money for the client and users. Risk and value management
are integrated with processes and behavioural factors referred to in other chapters; cross-
references are therefore supplied.
Risk and value imperatives

Client value refers to what a building means for them and their business. The value of a new
school building is the learning environment it creates for pupils, teachers and parents. The
school also adds value through the multiplier effect to the community, economy and the envi-
ronment, e.g. the value of properties near the school will rise, which is considered a benefit.
The cost of building the new school will also be compared with that of similar buildings to
determine its value for money. Defining value is not an easy task, partly because it cannot
be measured. For this reason, the client’s business case does not define value, neither do the
appraisal or the feasibility investigations, which mainly consider needs, costs and benefits.
Value can only be perceived by the client, end-user and other stakeholders, therefore manag-
ing value is a complex process that requires a shared perspective beginning with the ends so
that the means to fulfil the need can be derived. Maximising gains for one stakeholder can
have the opposite effect on other stakeholders, which is why value and stakeholder manage-
ment are inseparable; both have an element of risk to be managed.
A few decades ago the application of risk and value management in construction projects
was very limited and the industry has lagged behind others in recognising how critical they
are to building client confidence and in meeting their requirements. Traditionally, risk con-
trol in the construction stage was based on implicit heuristic assumptions and allowed for in
the budget or the programme as a pragmatic contingency, or, in the case of the contractor’s
tender, as a risk premium. Value was considered to be the lowest tender cost.
As clients have become more sophisticated, and more demanding, less room is left for
manoeuvre. These have led to tighter budgets, demand for more quality and less tolerance for
time slippage, such that poor performance results in onerous penalties and loss of business
opportunities. In achieving their business goals, clients expect more innovative technologies
and design to achieve more for less (pull). Legislation and fiscal measures have had an equal
impact and influenced the values of clients, especially in relation to their sustainability goals
(push). The process of understanding and achieving client values is important where there
is a more complex set of objectives, as in stakeholder interest that influences client values.
Stakeholder and external factors cannot be ignored as they impact upon key time, cost and
specification goals and may create loss of opportunity. The project manager responds to and
manages these in the value and risk process to ensure project success.
It is now recognised that the scope for changes in design to provide significant improve-
ments in value occurs mainly at the feasibility and strategy stages; as the design progresses it
becomes more difficult to change previous decisions without causing disruption and increas-
ing costs. This is indicated diagrammatically in Figure 10.1.
Potential to
add value
Scope to
change
Cost of
change
Cost of change
Briefing Feasibility and strategy Design and tender Construction Commissioning
Project life cycle
Figure 10.1 The cost of change*

*See also p.77.
Recognising different interests and managing conflict on the basis of priority and influence
are also elements of assessing value. Value management workshops are offered to integrate
stakeholder value, risk evaluation and site and design constraints with the client’s value.
Value and risk assessment is an essential part of planning and managing complex projects
because of the interdependence of external and internal factors and interests; however, strong
and committed leadership is needed for initial outlays to encourage a level playing field.
Risk assessment makes assumptions about external and internal factors, including the
PESTLE factors discussed in Chapter 3. Risks are first assessed when early feasibility deci-
sions are made and need to be managed throughout the project life cycle as more information
is received and as things change. Risk assessment requires better models that can predict
variability in probability and impact as the project progresses. Simulation may be used to
model scenarios where a number of factors may all change. Experience also plays a role and
risk accountability should be allocated to those who have experience of the type of project
undertaken and cultural mix involved. This experience is often essential when interpreting a
wide range of qualitative and quantitative indicators.
Figure 10.2 shows parameters influencing value, and design is critical to optimising value.
As the figure shows, enhancing design value is about improving the efficiency of function
over cost, and is connected with risk evaluation through the assessment of alternative meth-
odologies and functional value. Risks might be of high impact and diminish value where
there is more probability of them happening. Real cost to the client considers capital and
operational costs, by weighing up value minus the cost of risk. This interdependency of risk
and value is recognised as critical. Client values as a development of the design process are
considered in Chapter 6.
Approaches to risk and value management1
Value management (VM)

Historically, risk control in the construction stage was based on implicit heuristic assump-
tions and allowed for in the budget or the programme as a pragmatic contingency or, in
the case of the contractor’s tender, as a risk premium. In traditional competitive tendering,
value was considered to be the lowest tender cost. It is increasingly being recognised that
Influences on value
Construction
Capital cost Client values
methodology
Stakeholder Design value = Risk evaluation

pressures function + value positive or negative
cost
Buildability
Project value
Life cycle cost
planning Facilities and user
Building
management
value
Figure 10.2 The make up of value
risk management is no longer a specialised consultancy function, but the responsibility of

every party to the contract. It forms an integral part of value management for safety, sustain-
ability and productivity improvement. Creating value entails assessing and accepting risk to
justify a fair compensation for bearing the risk.
The manufacturing industry has made a subtle proposition for value methodologies. Value
engineering (VE), ‘the organised approach to providing the necessary functions at the lowest
cost’, owes it origins to Laurence Miles and his post-war work at General Electric Company
in the USA. Early development of the techniques of value analysis, function analysis and the
value management (VM) job plan was primarily for US military projects. These techniques,
which are characteristic and essential elements of VM methodology, are incorporated in the
VM standards of SAVE International, which describes itself as the premier international
society devoted to the advancement and promotion of VM. Other examples are from car
manufacturers, such as the Japanese firm Toyota whose production system interprets value
from a customer perspective – by removing wastes value is added. Similarly, the German car
industry, exemplified by names like Mercedes-Benz, BMW and Audi, have demonstrated
that the quality and reliability associated with vorsprung durch teknik (progress through tech-
nology) has added value rather than cut the initial purchase cost of these cars
The construction industry was late to adopt VM. In the mid-1980s the construction man-
agement company Bovis teamed up with Lehrer McGovern in the USA to introduce American
techniques to the UK on the Broadgate development in London, a process that included VE
and resulted in innovations such as cladding panels supplied with integral internal finishes,
pre-installed engineering services and the ‘piggy backing’ of multiple floors of steel beams
into position on one crane lift.
In the early 1990s client-led value transformations were promulgated in the UK construc-
tion industry. Effective VM was drawn upon at the strategic project stage so that it could
substantially reduce the potential uncertainty in a project and increase its chances of success.
Client value was optimised by integrating strategies for cost control, procurement, programme
and resource management, management of risks and uncertainties, quality assurance and
safety in the workplace. Dallas2 also argued for the combined management of risk and value
to provide an integrated service. Movement for change in the construction industry resulted
in several initiatives being formed to enhance client value through design and collaboration.
Client leadership and involvement of the project are paramount to enhancing whole life value.
Within such initiatives the new focus was on collaboration, encapsulating the client and the
project delivery team through open negotiations and joint problem solving.
The essence of VM in construction is to question convention and preconceived ideas
by a rigorous process of creative and constructive analysis. VM is therefore adopted as a
group decision support method to improve strategic decision making by project teams. This
gives VM a social value in improving the way the project team members work together
to define criteria for project success and then deliver on these criteria. In this respect, VM
furthers the argument for the provision of value and risk management services in consort.
In the meantime, VE is promoted during design reviews to scale down projects and resolve
problems arising.
Evaluating the business case for a project implies an assessment of the degree of certainty
in the project outcomes. Project uncertainty is the main cause of stress for construction pro-
ject clients; unexpected changes to the programme, cost or expected functionality can result
in client dissatisfaction with the construction process. The process of gateway reviews at
key milestone points is designed to identify and manage project uncertainties, and to allow
projects to be deferred or abandoned if uncertainty is unacceptably high.
An over-arching concern of clients in procuring construction is to achieve added value
from the project. The value of a construction project is determined by the benefits it creates
for the client in relation to the total of discounted costs. Typically, this value is measured
in monetary terms and therefore the value for money (VFM) is the primary concern. The
principle of VFM in public procurement has long been espoused in procurement guidance.
VFM in government projects is a balance of cost and benefits which are then monetised and
measured against cost targets. Competitive tendering is necessary to secure VFM but the
contract is awarded to the best value (BV) bidder who has proven records for quality, safety
and sustainability without undermining risk and cost considerations.
Integrating risk and value

Davis, Langdon and Everest3 describe success as a fusion of managing value, risk and rela-
tionships. The conditions for success are related to a number of factors, including:
• project objectives that are clearly established and understood by all

• reconciliation of stakeholder needs
• reduced risk
• improved communication and understanding
• innovation and creativity
• enhanced team working
• effective use of resources
• elimination of unnecessary costs and waste
• optimised whole-life costs.
The optimum point of success is reached when the value created exceeds the risk taken
to achieve the objectives. The four value quadrants in Kraljic’s4 model can effectively be
used when risk prioritisation is necessary to balance between the added value and efforts to
High value
Leverage tasks Strategic tasks

e.g. value engineering, e.g. sustainable technology,
outsourcing, collaboration synchronised procurement
offsite manufacturing
Low risk High risk
Non-critical tasks Bottleneck tasks

e.g. traditional tasks such e.g. international logistics,
as earthwork, masonry, design aspirations, design
landscaping, roofing mock-ups
Low value
Figure 10.3 Value–risk prioritisation
mitigate risk. This model was developed for procurement but it can also be applied in many
cases where risk and value are conflicting and a decision has to be justified; see Figure 10.3.
Case study 10.1 illustrates how wasteful activities that require more effort than the value
added are discounted using the Kraljic model.
Case study 10.1 Managing integrated risk and value

The One Airport Square project in Accra, Ghana, was implemented by using a blended
team of local and international consultants. A construction project manager was
appointed to provide overall co-ordination and a single point of contact from design
through to construction and project closeout. The project developed 17,000m2 of multi-
functional buildings; of these, 2500m2 were for retail space on the ground floor and nine
floors of offices. The design concept for the project was inspired by the bark of a palm
tree in order to blend in with the character of the area.
The time and resources spent during the design phase included for design mock-
ups and paid off when the project was announced the most eco-friendly development
in Ghana, becoming the first Green Star-rated commercial building in West Africa. The
complex design, in combination with intricate specifications, lead to a careful evalua-
tion of risk and value to be added for each option, as shown in Figure 10.3. The value
quadrants can therefore be defined as:
• Bottleneck tasks: Many of the materials required for the project needed to be imported,
requiring a logistics plan to reduce time slippage. A synchronised procurement plan
(continued)
(continued)
was put in place so that sufficient lead-in times were provided. Some bottlenecks could
arise due to the need to comply with mandatory customs regulations, and these were
managed without a compromise on quality, early completion or safety of workers. Risk
for such activities were mitigated or transferred to a third party for a premium but it was
not possible to avoid them without affecting the project.
• Leverage tasks: These adopted VE so that design, contracts and programmes were
audited to ensure clear roles, processes and deliverables were in place. Through VE,
an innovative seismic isolation technique was used to reduce the effects of ground
vibrations on the building if an earthquake were to happen, and this was achieved with-
out using grid systems. A ‘U-Boot’ reinforced concrete slab system was also adopted
to reduce the weight of the superstructure. This helped to save £21 million in costs
and the project was delivered nearly a month early. Under this category we can also
include offsite manufacturing, which lowers construction risks to save time and money.
• Strategic tasks: Overall success of the project depended on attaining high stand-
ards of quality and sustainability. The project teams deployed some cutting-edge
technologies to save power and water. BIM was deployed during onsite design and
construction to optimise the management of information. The design was meant
to balance advanced technologies with culture and climate. It incorporated sys-
tems that ensured that the building was protected from the high solar radiation of
Equatorial Africa, including a system of natural air circulation, a light and natural
ventilation system and a rainwater harvesting system.
• Non-critical sustainability tasks: These played a significant role in the integra-
tion between space, structure and sustainability targets, a risk that was managed
reasonably well by the experienced project team. A large hall nine storeys high was
designed to provide lighting and to facilitate natural ventilation of the interior. The
gradual variation of depth of shaft gave rise to different office types.
Acknowledgement to MACE group5
Sustainable value and the whole life cycle

Value is connected with life cycle costs, which include maintenance, operation and fund-
ing costs. It is well known that operational or use value most benefits business. Romm6
calculated the proportion of building cost over a 30-year period as 2 per cent design and con-
struction, 6 per cent maintenance and 92 per cent personnel costs (business costs) for running
the business, when energy costs are included in the maintenance figures. Wolstenholme7 (see
Figure 10.4) also suggested that business costs outweigh early capital costs many times over
and therefore small increases in capital cost can provide regular large savings in business
costs. Value is recognised by increasing capital costs in order to create a better operating
environment that impacts on employee productivity, durable components for less mainte-
nance and energy use to keep running costs low, and better layouts for efficient working and
competitiveness to impact favourably on the market or sales (business costs). Governments
may also help reduce operational costs by easing funding cash-flow and giving additional
financial subsidies in low employment areas.
Operation and maintenance efficiencies from Production efficiencies from layout

less cleaning and component renewal and motivational environment
£2%
Business costs
6% 92% Business outcomes
Increase design and Market efficiencies from

construction cost design quality and location
Figure 10.4 Indicative range of cost and value over a building’s life cycle8
Simple example of whole life cycle cost savings for more capital cost
Use Figure 10.4 for relative costs.
1 Standard quality and durability

In the above, if construction and design cost was £10m, then
maintenance and energy use is worth 6/2 × £10m = £30m, and
business costs are worth 92/2 × £10m = £460m.
2 Better quality, insulation and more durable building
If price increases by 50% to £15m for 33% better durability and uses 50% less energy
and creates 6% better business efficiency, then
savings of £660,000, £2m and £27.6m = £30.26m will be made over 30 years (£1m
per year)
The savings will pay for the extra £15 million capital cost in 15 years. This may also be
discounted to net present value (see below).
Whole life costing (WLC)

Life cycle cost is defined in ISO 15686-5:2017 as ‘the cost of an asset, or parts throughout its
life cycle, while fulfilling its performance requirements’. Whole life cycle cost for buildings
also include non-construction costs, externalities (impact on others) and income. Part of the
business plan when commissioning a new building is consideration of a wider set of costs and
incomes that occur over the life cycle of the building through to its disposal. Together, these
costs are greater than the capital cost of the building and so may influence initial expenditure so
that larger amounts of money may be saved later on in the maintenance, operation, occupancy
and end of life costs, as shown in Figure 10.4. The later costs are usually discounted (net pre-
sent value) to make future costs and income comparable with current figures. These combined
discounted costs and incomes are described as whole life costs. Public procurement clients
insist on the WLC approach to assess value for money, which takes into account:
• initial capital cost, including site costs and fees and mitigating grants
• occupation costs, including energy, letting and rates
• operating costs, including maintenance, repair and replacement, security and insurance
• cost or benefit of the eventual disposal of the asset at the end of its life.
These terms are relevant to all building clients whether they will be retaining the building or
not. Making a universal connection with VM is also helpful. Developers who are not retain-
ing buildings for their own use will still need to consider the requirements of those who buy
or let from them; however, they often assess a building on the basis of a short undiscounted
pay back scale (see Chapter 3). One of the problems with WLC is that, apart from public
clients, the process may be too comprehensive and lack of relevant cost data may provide the
wrong information for strategic client decision making.
The advantage of WLC is that it provides better evaluation of the business case because
it considers the whole picture. It also presents a number of barriers, however, as noted by
Pasquire and Swaffield9 and Higham et al.,10 including:
• Lack of reliable data on components, maintenance life and energy consumption before
building occupation.
• Departmentalised budgeting system means those responsible for capital budgeting place
limited emphasis on running costs.
• The separation of capital and revenue budget management, which makes an integrated
approach untenable; companies want to reduce capital costs to impress their shareholders.
• Short-term interest on the part of the client who sells the building on or leases it.
• Taxation and fiscal policy that encourages allowances on capital expenditure; however,
this does not include developers for whom it is ‘stock in trade’.
• Business running and maintenance costs can be set off 100 per cent against corporation
tax immediately it is incurred.
Table 10.1 shows some interesting figures for the relevant costs of the various life cycle elements.11
Life cycle costing uses a number of techniques to determine costs, mostly connected with
discounted cash flow (DCF) techniques. These techniques assess the present value of later
operating and maintenance costs and annualise them in what is called an ‘annual equivalent’,
which can be added to the capital cost. Capital allowance tax, depreciation and inflation/
replacement costs can also be considered in the model by using a sinking fund calculation
and years purchase can be used to calculate how much must be invested now to provide an
income for an annual yearly cost. There are many textbooks that deal with these calculations
in detail and tables are also available to support the calculations.
A key issue is the reliability of data pertaining to the life of components in the building
and for the cost of maintenance, energy and insurance. Where these comply to a trend, his-
toric figures are available. However, steep changes in costs can occur as a result of new taxes,
such as energy tax, and the availability of grants; fiscal changes; new statutory requirements
such as access for the disabled; and the necessity to update in response to new technological
imperatives, such as online networking. New buildings may also be designed for completely
new operating regimes and internal figures will thus not be available. External figures as the
Table 10.1 Life cycle cost elemental breakdown
Relevant cost Proportion of Possible value measures

operating costs
Maintenance Offices: 12% Increasing component lives, such as LED lamps, easy
Homes for the access to replace; automation in landscaped areas, such
aged: 7% as watering/grass-cutting
Laboratories: 30%
Energy and 20–35% There is more scope now to tender competitively with
services comparison sites and special bulk rates may be possible
with direct suppliers. Water, however, is not yet truly
competitive. Energy-saving methods are popular
environmental choices.
Cleaning 10–20% Access is a key cost issue, such as access to windows and
glass roofs. Owners may also choose easy-clean options,
such as self-cleaning glass at greater capital cost.
Security 8–15% The potential for a secure building depends directly on
the design. Significant revenue costs in security staff
can be saved by the use of passive devices. There is a
trade-off between insurance premiums and extra security
investment. Intrusiveness is a factor for productivity as
employees may resent feeling controlled.
Business 15–45% The principal determinant for rates is location. Grants,
rates and capital allowances or rate relief are available in
capital tax regeneration areas in some countries. Short-term relief is
allowances possible offered by councils trying to attract employers.
basis on which to base costs need to be properly adjusted to take account of unique business
and location factors. Other risks are the level of inflation and interest rates and the possibility
of the discount rates not being adequate or out of step with inflation.
This creates the need for a sensitivity analysis to identify which of the assumed factors (or
a combination thereof) has the greatest effect on the overall calculation. There is then a need
to factor in contingency to allow for some unknowns on the basis of probability. Table 10.1
indicated some of the global ranges of cost for different elements of operating cost and is help-
ful in deciding where to concentrate the sensitivity.
The risk is that all parties will continue to work separately and that long-term value
will not be considered important in a culture of rapidly-changing global conditions. In
this context, change will depend upon a powerful communication of the long-term vision
alongside a consistent methodology for attaining this goal. Wolstenholme12 suggests these
important points:
• Clients to procure for best value with performance specifications to promote innovation.
• Suppliers to take the lead in creating best value, offering attractive competitive col-
laborative working, which integrates lean processes and continues to move away from
systems that promote lowest price and maximum claims.
The value management process

Value management refers to a process that maximises value for clients and stakeholders
by focusing on function and performance against the project and client value systems we
discussed in Chapter 6. In a broad sense, VM encompasses other structured methodologies
that audit and improve value for the client, e.g. function analysis, value analysis, benefit
analysis and, in some cases, stakeholder analysis. Value engineering (VE) is another term
for value management, which originated in North America.
Kelly et al.13 identified different value management approaches in various countries,
including the USA and the UK. Central to value management in the USA is a VE team to
audit a design at the scheme design stage. Several US states have made this a requirement
for verifying value for money in publicly-funded construction projects; an example of this
being the procedure followed for prison capital works in New York State. The VM audit is
undertaken by a multidisciplinary team under the direction of a VM team leader, this team of
experts being appointed separately from the design team by the client. The VM fee is often
justified on the basis that it will represent some 10 per cent of the savings identified and the
savings will be at least 10 per cent of the overall project budget. The difficulty is that these
‘savings’ are implicitly a criticism of the original design team.
In the UK, OGC14 guidance 03 on the project procurement life cycle and 04 on risk and
value management tended to promote VM as a service provided within the original design
team as a way of improving understanding of the client’s value system, business process and
the project brief; a way of testing the value for money of the design as it develops; and, in
the process, a way of making a major contribution to team-building and encouraging col-
laborative interdisciplinary teamwork to improve integration of the design and construction
process. The emphasis in public projects is on achieving VFM measured against the project
business case, where life cycle cost considerations can be as important, and even more impor-
tant, than initial cost in determining value for money.
In Australia, VM is mandatory under public procurement regulations, and it is embedded
in the gateway review processes to provide an assurance that value and risk are properly
managed throughout the project. The VM guidelines are provided by Value Management
Standard AS 4183-2007, which prescribes a sequential work plan for VM workshops involv-
ing stakeholders and a VM facilitator. It distinguishes value from VFM and both will be
assessed during the VM study. Value is analysed using non-monetary variables, such as use-
fulness, benefits and importance, while VFM is a quantitative assessment of whole life costs.
Primarily, and this is a notable practice in many countries, VM is the more formal recogni-
tion of the necessity to meet the client’s objectives and requirements in the most effective and
economic way. In creating best value solutions, a critical analysis of needs is undertaken to
test the difference between desirables and properly stated objectives. It takes into account life
cycle costs to promote business efficiency. It is not usually the cheapest capital cost, even for
a developer who sells on. For example, housing developers who reduce their quality and pass
on guarantees to third parties, which are short-term approaches, may suffer loss of reputa-
tion and marketable value. VM is about achieving a desirable balance between the wants and
needs of stakeholders and the resources available to satisfy them. Principal requirements for
implementing VM include the following:
• Value aligned with project management processes to ensure proactivity and integration.
• A clear plan for systematic analysis and review, e.g. stakeholder’s needs, functionality,
project objectives and best value.
• A collaborative and multidisciplinary approach, preferably in the form of representative
workshops (e.g. client, users and project delivery team) and using collaborative tools;
BIM, for example, can be used to instil shared goals.
• Whole life integration of value, risk and cost.
Value management workshops bring the client, facility management and the project team –
designers and constructors – together to interpret other stakeholder needs. It is vital that
the VM facilitator is neutral and encourages participants to share their ideas as equals in a
creative process. Client values still remain at the centre of this approach, as their on-going
approval of the distinct stages of design development is vital. A design freeze is signalled
by the need to make a full planning application to achieve programme objectives. After
this, value enhancement depends on technological change, which has less scope to enhance
value. Good value-adding design should not reduce quality or utility; rather, it should raise
questions regarding necessity and consider other aspects such as buildability, durability and
flexibility to both reduce construction effort and maintenance and prolong building life.
Stakeholders can be internal or external and can also act in proxy on behalf of others,
e.g. the planning authority. Identifying and managing the needs of external stakeholders has
become increasingly important, as securing planning permission no longer guarantees pleas-
ing every stakeholder and pressure groups are more efficient in the use of delaying tactics. To
satisfy community stakeholders, value to society should be integrated within the design and
environmental objectives must be met.
Value engineering (VE)

Value engineering is the next stage of value management. It considers the more detailed
design of the building and generally takes place after the conceptual design of the build-
ing has been fixed and an application for planning permission submitted. Therefore, the
changes made cannot affect the location, aesthetic or fundamental orientation, height, exter-
nal appearance and materials of the building. Design changes can be made in the layout,
finishes and circulation elements (staircases, lifts), and similar materials may be substituted.
Value engineering may also make process changes, such as the use of standard detailing,
prefabrication and quality of materials. It may be possible to omit certain things, such as roof
lights, and to develop sustainable technologies and landscaping materials as alternatives
that do not change the building’s appearance. Value engineering could identify alternatives
for the M&E provisions and finishing materials. For the cynical, it is a cost-cutting exercise;
however, where there is flexibility and better research and access to market products previ-
ously unknown, it offers the prospect of better VFM and, indeed, some manoeuvrability is
desirable but not essential to functionality. For example, it may be desirable to make all site
access roads suitable for heavy lorries but this is not essential if a specific delivery areas
are provided.
The concept of value engineering emerged from companies looking for substitute materi-
als when there were shortages in supply after the Second World War. GEC found that the
alternatives quite often were cheaper or performed better and their use was adopted more per-
manently as a development of traditional product design. Construction design has developed
to accommodate global client requirements for less costly but still good quality buildings
and designers have been forced to look at a wider range of products and methodologies that
incorporate the same functionality at reduced cost.
An element of VE is connected to the concept of lean construction (discussed in
Chapter 9). It tries to eliminate waste in design that is connected to the methodology and
waste reduction process during construction. For example, prefabricated toilet pods may
involve high quality design and simultaneously require less skilled labour and time onsite.
However, they may also be more difficult to maintain if things go wrong due to hidden or
specialist components.
At the post-planning approval stage a further review of value is possible in light of cur-
rent information, drawings that have become available and designers taking into account the
conditions for development control consent and reviewing the efficiency of any changes.
Developed design drawings may be handed over for full detailed design by a contrac-
tor or to the winner of the first stage of a two-stage tender contractor to value engineer the
drawings and make suggestions prior to sending them out to second-stage tender. This is
an interactive process that is particularly useful for the buildability aspects of design and
uses the purchasing knowledge of the general and specialist contractors to obtain VFM with
approved changes of specification. For example, a steelwork frame depends upon availability
of the designed sections, but other profiles may be designed if some are not readily available
or too expensive.
A further review of health and safety of components and methodology may lead to more
design changes, for example the use of lighter blocks or a more easily accessible roof.
Compliance with building regulations means essential reviews of the structural, durability,
fire protection, disability access, energy and emission issues. Applying deemed to satisfy
solutions may not be the best approach and it may be better value to develop a solution
that can be tested for approval using a system such as BBA Agrément Certificates, which
validate independent testing, or EC Certification. Creative solutions particularly apply to
new technologies, and proprietary products associated with sustainable construction are to
be encouraged and proprietary products associated with sustainable construction are to be
encouraged to inspire confidence when in use.
At this stage it should also be possible to conduct a review of construction methodol-
ogy and significant savings may be made overall in terms of the client’s business case. One
route is to consider the time cost savings of prefabrication of some components or to use
robotics onsite.
Value engineering needs commitment. Typically, a designer does not wish to revisit what
they already believe is a robust design, a design that has evolved through the approval and
co-ordination of different parties to the design process. The client may be interested if they
feel they can reduce their budget targets, without compromising quality and the contractor
will be interested if they are given financial incentives to suggest alternatives or at least stop
expensive delays to specified components that are difficult to claw back.
The VM workshop
The term VM study is sometimes used in place of VM process. Kelly et al.15 studied a number
of different approaches to VM, the most common of which is the 40-hour multidiscipli-
nary workshop undertaken in 5 days or in 3 stages over 3–4 weeks (3–2–2 days, so slightly
longer). The timing was 35 per cent of the way through the design when enough was known
about the cost to estimate savings to be made. Savings are claimed to be 5–25 per cent in
North America.16 In the UK, they estimate that the traditional quantity surveyor (QS) cost
planning process makes a probable saving of 5–10 per cent. They argue that the first two
stages of functional analysis are not dealt with in the North American system as 35 per cent
design is too far advanced and basic project definition issues have been completed. They
suggest that the VM process needs to operate earlier in the project life cycle to capitalise on
early gains at the feasibility stage and needs existing QS pre-contract cost control procedures
in the UK to ensure effective implementation.
Value management workshops typically involve the client whose values are tested, the
lead designer and some other key design roles such as architectural, civil/structural, M&E
services and environmental who have the technical know-how. In design and build they will
have the early involvement of the contractor or in traditional procurement they may pay a
construction consultant or contractor. It is necessarily chaired by a neutral facilitator who is
able to push for honest answers to awkward questions. Certain questions need to address dif-
ferent stages of the project,
• What is it for? (the objectives)

• What should it do? (essential functionality)
• What is it worth and how can we maximise value?
• How do various design solutions contribute to achieving value?
This introduces an imperative to consider other alternatives and to be creative. Some tech-
niques have been adapted in the subsequent discussion.
Value management workshops have had some difficulty being accepted in the UK as a
separate discipline. Clients question why they should pay extra for something that the design
and construction should be doing anyway? Also, to some extent, VE has been seen in the UK
as an opportunity to bring a project at tender stage back within budget where the danger is
that participants see this as no more than a multidisciplinary cost-reduction exercise, with lit-
tle rigour in the focus on value and function analysis, little creative thinking and the adoption
of solutions based on previous experience. Alternatively, VM may be viewed as a contractor-
led exercise to improve buildability with a cost-sharing clause added to the contract as an
incentive. However, functional analysis at an early strategic stage is beneficial and opens the
design up to scrutiny by stakeholders.
Functional analysis (FA)

Functional analysis (FA) is a basic process for matching the design to the requirements of
the client. This process is critical to the briefing process and allows the designer and others to
identify what functions are required by the building or infrastructure. Hence, the purpose of
a dam will be to store water but may also be to control water flow in the valley and perhaps
flooding. In addition, a dam provides an opportunity for generating electricity where water
flow is processed through a turbine. Secondary uses, such as sailing and fishing, may also be
envisaged. In order to produce VFM, relative functions must be prioritised. Kelly and Male17
defined VM at four levels, each of which has the capacity at a different level of detail to opti-
mise the process, as shown in Table 10.2.
The levels of consideration are also related to the project life cycle using the latest archi-
tect’s plan of work terminology, as shown in Figure 10.5.18
More fundamentally, FA is used to provide a solution to a problem. It is required to
increase production in a factory or to reduce the incident of water shortage in the case of
our example above. Kelly et al.19 established some rules for FA. First, is to be clear with the
wording by using a clear active verb to precede a noun. For example, ‘Provide economical
lighting’. Second, is to establish a functional definition before coming up with a specific
solution identifying components. Third, is to identify secondary functions or impacts that are
not essential to solving the functional need but are side products of a technical solution. They
might be desirable or undesirable. In Case study 10.2 below, an electric light solution might
produce heat and a natural light solution might produce glare and heat. Fourth, examine the
cost–worth relationship where cost is the price paid and worth is the least cost to provide the
solution for the function needed. Here, an elegant lighting system solves the problem at a
Table 10.2 Functional analysis levels
Kelly and Author comment Office example

Male’s levels
Project task Identifies client objectives for the building High quality head office building
and will have a primary task that can on expensive land in central
then be broken down into secondary business area receiving
tasks. Can question which is the primary important clients.
task and eliminate some secondary tasks
in analysis.
Space and Considers the breakdown of the building Multi-storey building. Reception,
arrangement into floors, rooms and corridors small meeting rooms and
and outside spaces in the spatial utility rooms on ground floor.
arrangements that are most efficient in Open plan offices broken into
terms of the building’s functions and are departments. Director suites
in efficient juxtaposition to other spaces. and boardroom on top floor.
Client is central to the process.
Element Considers the more universal roles for parts Framed structure. Fast smart lift
of the building fabric and structure, such to deliver visitors quickly
as lifts, floors and walls. Their efficiency with smart reception areas on
is more a technical than a client issue. all floors, high quality curtain
Spatial implications for client. wall. Air conditioning. Basic
staircase. Sun shading and
energy-saving features.
Component Down to the sub-element as a deliverable Utility finishes in office areas
to site. Thus a wall may include and panelling in boardroom
masonry, insulation, window and wall and director suites. Heating
plate components. It considers specific and lighting controls in
choices that contribute to the spatial and offices to maintain optimum
key objectives. It is mainly a technical environment. Tea-making
design decision, but also needs a and break-out rooms.
knowledge of contractor methodology Carpets on raised floors for
in defining its form and success. Client flexible services and quiet
choices for finishes. environment. Cafeteria.
Source: Based on Kelly and Male (1993).
Level 1 Concept
Level 2 Spaces
Level 3 Elements
Level 4 Components
Tender
Preparation Concept Developed Technical
documentation Construction
and brief design brief design
and action
Figure 10.5 Relationship of function analysis to project life cycle (traditional)

Source: Based on Kelly, Male and Graham (2015), updated to 2013 RIBA Plan of Work.
greater cost and may have been chosen because it looks nice. If a generic lighting system is
chosen, is there any fundamental loss of function? Therefore, the aesthetic value of previous
provision would need to be justified in other terms, such as reduced harm to the environment.
Case study 10.2 provides an example of secondary function and the impact of improving
lighting for an open-plan office.
Case study 10.2 Functional definition

1 Task level. Provide economical lighting in narrow floor plate office building.
2 Element level. (Open office area) The functional definition might be to provide a
given level of lighting on all desk surfaces. This might be provided by natural light,
by the spatial layout in conjunction with roof lights or windows or by some electric
lighting. If there is only occasional working after daylight hours, then lamps on
desks might be more economical for the few who do. Cuts down heat gain.
3 Component level. (Desk lights) Supply desk lamps to each pair of desks with move-
ment sensors. Basic level cost.
Functional analysis allows for a great deal of choice in how to deliver what the client wants
most efficiently having considered client values and technical solutions. If the client greatly
values sustainable development and has specified that a building achieve BREEAM excel-
lence, then an overlay of additional requirements will be required in terms of the location,
heating and cooling solution, cladding and solar gain and height. Directors may wish to
portray an image of themselves that demonstrates they value sustainability by displaying or
incorporating sustainability features in their own offices, e.g. autocontrol sensors for heating
and lighting.
Functional analysis system technique (FAST)

Bytheway20 developed FAST, which identifies a project in terms of its functions rather than
its activities and interrelates these functions in a flow diagram, as shown in Figure 10.6. If
the objective is expressed on the right, by using the question ‘How?’ related functions can be
identified that achieve that objective going towards the right. The design solution on the right
can be interrogated in a value management exercise using the question ‘Why this way?’ In
order to produce more creative solutions and reduce over-design, resources should be added to
functions and a team consensus can then be gained that is formed from different perspectives.
Figure 10.6 deals with the technical FA in levels 2 and 3. It provides a logical design solu-
tion to the question by moving from an objective ‘to keep temperature constant’ (left-hand
side) and moving (right) towards the questions that need to be asked in order to find a solu-
tion. The VE process deals with optimising the components, asking questions as it moves
from right to left. It may conclude that some of the building does not need a constant tempera-
ture or could exist at a colder temperature. This may maximise user value by fragmenting the
heating system or computerising the controls to react automatically to different room metrics.
Case study 10.3 is a more detailed example of using VM at the early stages of the pro-
ject life cycle, where the biggest scope exists for developing the brief to gain value. It also
Cold water feed

Produce hot
Air heat source pump
air
Electric feed
Room thermostat
Controls to
Time clock
heater
Keep building O/s air temperature
How? at constant Why?
temperature Electric feed
Produce
Cold water feed
cool air
Refrigeration unit
Room thermostat
Controls Time clock
Inhabitant override
Level 1 Level 2 Level 3
Figure 10.6 FAST example of a system to keep a building at a constant temperature
illustrates how a multidisciplinary approach to problem-solving can produce more VFM. It

illustrates a situation where spending more produces higher added value by a factor of two
or more.
Case study 10.3 Value management at the early

concept stage
The situation involves refurbishment of approximately 2,500m2 of office space behind a
listed Victorian façade that has to be retained. The five floors of the building are to be
gutted internally and a new steel frame office is to be built inside the retained façade.
This façade will have to be retained during demolition and rebuilding; an existing party
wall will help to stabilise it during this process, but in this wall there is also a major
central chimney (see Figure 10.7). This central chimney could be removed to increase
space. Will doing so increase value?
The structural engineer advises that if the chimney is retained (Option A) it will save
on demolition costs and provide stability during rebuilding but will also reduce the struc-
tural bracing required in the new steel frame, with a possible saving on the construction
programme of one week. The quantity surveyor assesses the construction costs of the
two options and estimates that Option B, with the central chimney removed, will cost an
extra £15,000 for demolition plus an extra £8,000 for structural bracing to the steelwork.
30.0m 30.0m
5.0 x 6.0 m grid Central chimney

1.0 x 5.0
14.0m
Retained facade
(a) Option A (retain chimney) (b) Option B (chimney removed and more
floor space)
Figure 10.7 Office refurbishment
On the basis of construction costs and the duration of the programme, there is there-
fore a clear argument to recommend Option A. However, during the VE appraisal the
commercial property surveyor raises the issue of the loss of net lettable floor space in
Option A.
But Option B results in the provision of 21m2 more net lettable floor area than Option
A and the developer values this at £71,000, based on a rental of £220/m2 and a yield
of 6.5 per cent.
Calculation
This equates to a year’s purchase of 100/6.5 = 15.38;
15.38 × floor area £220/m2 = £71,055.
After deducting the additional demolition and bracing costs (£23,000), this leaves a
net additional value of £48,055 if Option B is chosen.
By the same means, we can evaluate the benefit to the client of saving a week on the
construction period provided by Option A:
2474m2 at £220/m2 per annum/52 weeks = £10,466
Assuming an immediate let, Option B still provides a net added value of £37,589
(£48,055 – £10,466).
Acknowledgement to Tony Westcott21
The essence of a VM study is to question conventions and preconceived ideas by a rigor-

ous process of creative and constructive analysis, which includes the client’s objectives. It is
vital that the VM facilitator encourages participants to share their ideas as equals in a creative
process. Sustainability is considered value in the long term and can be factored into these
workshops in a qualitative way.
Benefit analysis (BA)
Benefit analysis involves checking that required benefits have been delivered in the solu-
tion delivered to the client. Benefit realisation is another term used interchangeably with
BA but this actually refers to an audit at the completion stage to confirm project outcomes
were achieved (a process discussed in Chapter 15). Benefit needs to be constantly monitored
during the design and construction process. It is also a way of comparing in real terms how
expensive a solution was in comparison with previous provision. As such, it is an audit of
the effectiveness of VM and provides a feedback loop to check VFM. Clients will expect to
see incremental improvement where creative solutions have been successful, which should
be measured against function and need. Design and implementation of the solutions are both
important, as Figure 10.2 suggests. It is, however, possible that change in functional priority
has occurred later during the design and construction process and efforts to incorporate this
may not have optimised the solution.
Value management workshops

To be part of a completely integrated system, VM needs to interface with the project life cycle
at key events. Kelly et al.22 describe a continuum of staged events that need to gather together
stakeholders and relevant project experts. The facilitator needs to be neutral to ensure equal-
ity of contribution. The stages in Table 10.3 are idealistic but nevertheless relevant to the
iterative review.
Table 10.3 Continuum of VM workshops through the project life cycle23
Description Duration Focus Stage

(days)
Pre-brief workshop 0.5 to 1 The strategic brief Clarifying the business need
Brief workshop 1 to 2 The project brief After the initial business case
has been established
Ideas creation 1 to 3 Examination of the brief At the end of briefing, before
workshop or already prepared by others concept design
‘charette’ (as an alternative to the two
workshops above)
Concept design 1 to 2 Outline design Before submission of
workshop planning application
Detailed design 1 to 3 Final proposed design Examination of the design by
workshop functional elements
Implementation 0.5 to 1 Are recommendations being After the detailed design
workshop implemented? workshop
Contractor’s 1 Buildability studies After appointment of
change proposal contractor or in second
stage of two-stage
tender process with a
performance incentive
Post-construction 1 Feedback, especially for ongoing
review programme of capital works
The job plan in the SAVE24 toolbox is commonly described as a five-day workshop, cov-
ering the following phases that have been merged with proposals by Woodhead and Downs25
to provide the following steps for the initial VM workshop:
• Information. Senior managers determine the brief. A base case is determined where the
project team develops an explanation of how they currently propose to deliver the pro-
ject in compliance with the brief. The base case is translated into the functions that the
elements of the project must perform. This functional representation frees the team from
using any particular method (or solution) so that they can later consider alternative ways
of performing the functions.
• Creativity. The team brainstorms different ways of performing the functions that lever-
age value. That is, they target specific functions and ask, ‘In what other ways could we
perform this function?’
• Judgement. The team identifies those ideas on which to spend quality time writing up
considered proposals.
• Development. The team takes the considered proposals and creates a menu from which
to calculate the business results of each scenario and pick those to present to senior man-
agement for approval.
• Recommendation. The team presents recommendations to senior management and the
new base case is decided upon.
The practical difficulties involved in timetabling a meeting of experts, stakeholders and

senior management means that a shorter event is often held but still incorporating many of
the above aspects.
Definition and evaluation of risk

Risk arises out of uncertainty. Risk in the context of project management is a realistic approach
to things that may go wrong on the site and it is used in the context of decision making and in
answer to the question, ‘What happens if. . .?’ Once a risk has been identified and defined it
ceases to be a risk and becomes a management problem. In this context, the risk needs to be
analysed and a response made – usually to accept, mitigate, reduce or transfer it. People’s reac-
tions are important and the response to the same risk varies according to who is affected by it, the
number of people affected and who is responsible for it. This may also lead to the ethical question
of acceptable risk. It is important, then, to classify risks so that appropriate actions can be taken.
It is also important to separate the source of the risk from the consequence of the risk happening:
• Edwards26 classifies risk by source, distinguishing between external risk that is beyond
project manager control, e.g. interest rates; internal risk that is caused by activities con-
nected with the project, e.g. accident damage, design or methodology; and transmitted
risk that has an impact on others, e.g. environmental damage.
• Burke27 classifies risk as the degree of uncertainty, connecting it to the level of available
information about the project. He introduces a risk and flexibility matrix for different
contract strategies.
• Flanagan and Norman28 classify pure and speculative risk. The former typically arises
from the possibility of something going wrong and has no potential gain. The latter is con-
nected with a financial, technical or physical choice and has the possibility of loss or gain.
• US Secretary of Defense, Donald Rumsfeld, as discussed in Meyer et al.,29 classified
level of knowledge as related to risk as varying from unknown unknowns to known
unknowns to all knowns. The risks associated with different categories exhibit different
characteristics and their distinct impacts will affect the level of management effort and
style needed to control the project.
The consequence and probability of the risk happening help us to decide the priority and
assessment of the risk, discussed below. The unpredictability of the risk is going to lead to
less control or to more sophisticated assessment methods to increase predictability. Many
current techniques used in construction projects do not analyse the degree of unpredict-
ability and therefore do not estimate probability correctly. External events tend to be less
predictable and their consequences are likely to be greater, so they cost more when they
occur outside the planned schedule. They also affect a broader range of activities and are
therefore potentially more disruptive. Ignoring or reducing risk by lowering the probabil-
ity of an unknown unknown is foolhardy. A stochastic simulation or sensitivity analysis
approach makes sense in this situation.
Risk can be evaluated via quantitative methods, qualitative methods or both depending
on circumstance and purpose. Quantitative methods allow a tangible value to be attached to
the risk and are suited to weighing options, such as investment choice, or assessing the great-
est probability, as in the timescale for a programme. These often use tools such as expected
monetary value (EMV), project evaluation and review technique (PERT) or Monte Carlo
analysis to provide a range of sensitivities. Qualitative analysis is more holistic and provides
a systematic evaluation of a range of factors and their interaction. Tools such as decision
trees, heuristic analysis and fishbone diagrams provide a logical framework. In both cases,
some subjectivity is involved in assigning priority or a value for probability or financial
impact as in any of the systems mentioned above. Classification then provides a basis for the
proper treatment of risk.
The consequence of a risk in terms of its likelihood and severity may help in deciding
what to do with it. If it is a very frequent risk but does not create a huge financial impact, it is
likely that the risk may be retained and managed better to minimise the impact. If the impact
is larger, harder or more expensive to manage, then insuring against it provides a way of
spreading the cost of the risk. If the impact of the risk is very large, such as an environmental
disaster, and is more than rare, then it may be too expensive to insure against and a decision
may be made to consider an alternative solution where possible. It would be prudent to move
away from that activity or pass it on to someone who specialises in managing it. The case
of asbestos removal is an example of the latter case. Another issue of consequence is the
accuracy with which it is possible to predict such events and their impact – can these ever
be known? Track records should be studied to ascertain the answer to this question, if such
are available.
Theory of constraints
Another approach to studying risk is Goldratt’s30 theory of constraints (TOC), which pro-
vides a framework for identifying critical gatekeeper bottlenecks/risks for focused priority
control. It has some similarities with the critical path method, but instead of building in
buffers for contingency on each activity, which he claims are inaccurate and encourage
Parkinson’s Law to let work expand to the time available, he builds in a project buffer at
the end of each chain of activity (50 per cent) so that any run-over on the activities takes
some of the end buffer. Goldratt claim that if individual activities are planned and monitored
properly, then risks that actually occur have a known impact and can be recorded against the
project buffer and forward action taken more easily to control erosion beyond the total risk
value of the chain allowed. Critical constraints have to be identified and active management
of time consists of working intensively to reduce bottlenecks that are known to slow the
whole production chain. On complex projects there are likely to be several ‘feed-in’ chains
of activity that have ‘feed-in’ buffers before feeding into the critical path.
Insurance and contingency

Risks are often passed on through insurance, but this is an expensive option as someone else
is making money out of project uncertainty. Risks passed on to other suppliers often get
passed down the line to the lowest point of competence and this means poor controls.
Response is usually in terms of reducing the risk by management, spreading the risk (as
in portfolio management between several projects), avoiding the risk, transferring the risk to
others or insuring against it. It is important to note that, in the uncertain and fast-moving cli-
mate of projects, there will always be a residual risk that needs to be managed. Transferring
risk to someone who has no particular experience in managing that risk is likely to be expen-
sive. Not all things can be insured against, including the result of illegal activity and fines.
There are many other areas where insurance costs become prohibitive.
Some insurance, especially for third-party injury or property damage, is compulsory in
construction contracts and is normally taken out by the contractor. Further insurance, such as
a bank bond, may be requested by clients to protect against commercial failure of higher risk
contractors. Professional indemnity insurance (PII) is required by professional organisations
as a condition of fair trading, meaning its members must provide an ethical and professional
service, to cover the impact of human error and negligence. Other insurance may be taken
out on a voluntary basis, but the cost of insurance and the limitations of compulsory excess
and upper limits need to be balanced sensibly with the cost of managing the risk in order to
remain competitive. Insurance blurs the boundary between pure and speculative risk. In cases
of rare catastrophic loss, and as part of the management solution to limit liability for loss, a
subsidiary insurance company known as a captive insurance company may be created.31
A contingency sum is normally allocated to a client’s budget to cover their liability for
risk, such as having to excavate rock rather than soil, exceptionally inclement weather and
other contractual responsibilities. The contractor will build in contingency for labour and
material supply problems, inflation where it is a fixed price and so on. These sums have to
be tightly controlled so as to remain competitive, and tightly planned risk reduction reduces
unexpected events as a way of providing increased profits and returns.
Integration
Any risk management system will cost money to administer and this cost also needs to be
balanced with the cost of the consequences. If everyone insures for risk it is expensive and
one way of saving money is to have a project risk policy with one premium to pay. New
ways of working collaboratively that ultimately reduce risk, such as partnering and repeat
working, also have the potential to reduce costs. Here, the key aspect is the building up of
trust between partners to value manage and to eliminate the risk of dysfunctional conflicts.
Collaborative working should also provide the opportunity for synergistic team working and
of joint insurance coverage in the core team. Unproductive risk transfer may be reduced in
the application of better supply chain management and retention can be used on a voluntary
and not a compulsory basis. In this case, it is likely that the client will insure for the risk at
first-tier level instead of delegating, as in Case study 10.4, later in this chapter.
Subjective delayed payment can also be outlawed more effectively when teams are pre-
pared to work together to provide automatic payment of suppliers from a joint project bank
account, therefore reducing the risk of non-payment as well as reducing specialist tender
bids. This broadens the application of risk management beyond the application of quantita-
tive techniques because, working together, these measures comprise a managed risk that
requires the parties involved to trust each other. However, where collaboration is agreed it is
likely to reduce many risks for both the project team and the client.
The risk management process

The process of managing risk starts with identification, often by brainstorming ideas and
referring to any standard list of risks. A risk register records the significant risks and catego-
rises them in order to try to assess them. Significance is assessed by evaluating predictability,
probability (frequency) and impact. There is then a response to reduce significance by elimi-
nating/reducing risk levels or transferring risk and, finally, managing the residual risk. The
process is shown in Figure 10.8.
Risk assessment
The process of assessment involves finding the level of significance to provide some guid-
ance to the seriousness of the risk. This is usually carried out using some sort of matrix
or scale. Risk significance or severity is a product of impact and probability (S = I*P).
Figure 10.9 shows a simple way of assessing a hierarchy of importance using the rated
significance. A rating of 2 or over would indicate the need for investigation. A rating of 9,
Assess Respond –
Identify risks predictability, Eliminate, Manage
and categorise impact and reduce or residual risk
probability deflect
Risk attitude
Figure 10.8 The risk management process
Impact Low Medium High
Probability
Very unlikely 1 2 3
Occasional 2 4 6
Often 3 6 9
Figure 10.9 Rating significant risk

where impact at three levels is multiplied by probability at three levels, would indicate an
unacceptable level of risk.
Risks become more risky the more uncertain they are, which can be reflected in a subjec-
tive rating of probability, as indicated in the extended monetary value (EMV) method in
Table 10.4. EMV takes each risk, provides a monetary value for its impact and reduces it
by multiplying by the degree of probability. Monetary value is another way to quantify the
impact and probability is rated 0–1. If this is carried out for all items in the risk register, a
total risk transfer value of £311,500 is achieved by summing all the extended values.
The bottom line shows a total valuation of risk, which, if the risk rating is consistently
prepared, may also be used to compare the risk of other options and thus mitigate the deci-
sion making in option appraisal where others have less risk. Risk assessment in this context
particularly varies with the procurement option chosen. Later occupancy or whole life risk
impacts will be better shown as discounted, as we discussed under whole life costs. EMV can
also be used to decide on the contingency sum needed. In such a case, the calculation will con-
sider the remaining (residual) risk after reduction and mitigation measures are implemented.
From a ranking point of view, it must be remembered that these figures might be subjec-
tive in terms of both financial assessment of the impact and probability and can therefore be
unreliable or biased according to the compiler’s subjectivity. This might be the case where
the compilers want a business case to be successful. Objectivity can be built in by forcing
compilers to use standard ranges of values for given common situations32 or interrogated
through a knowledge-based system. Each project, however, is unique and an audit of such a
method is important where the affordability and VFM are strictly required. It is, however, an
easily understood way of assessing risk and the project team can own the results and easily
explain the impact and probability figures. Probability figures may be backed up by normal
distribution and experience, but the final probability should be adjusted for the riskiness, as
discussed above. For example, predictability is affected by the distance of the event away
from the time assessed and the experience of the contractor or client in dealing with that risk.
Risk attitude is important in terms of how the response is managed, as we have seen.
A defensive response to risk is to add a risk premium to the tender, if the risk is sensed to be
abnormal to normal business, or to hold retention or to require bank bonds on a contractor
when the contractor is unknown. Risk transfer may be defensive or good business. Reducing
risk is part of the business of adding value to the contract. The narrower view involves treating
everything that could be a risk as a pure risk. Speculative risk might provide innovation and
value for the project or it might be one risk too far.
Table 10.4 Risk assessed by monetary value
Impact Probability Extended value = impact × Ranking

£’000 0 –1 probability £’000
Client scope change 200 0.9 180 1
Planning qualification 100 0.4 40 2
Planning delay 200 0.1 20 3
Higher cost of construction 600 0.4 24 3
Industrial action 500 0.05 25 3
Latent defect 100 0.2 20 3
Heating failure 50 0.05 2.5 4
Total monetary value £311.50
It is tempting to use contracts to transfer risk of change. However, full-scale transfer of
risk to the contractor for design change often results in heavy premiums unless the contrac-
tor retains a long-term interest, such as in PPP/PFI. Case study 10.4 illustrates this situation.
Case study 10.4 Inappropriate risk transfer

The Ministry of Defence (MoD) prime contract with DML was reported to have been
budgeted at £505 million, with an estimated cost to completion of £650 million at its
inception in 1997. This contract actually cost the MoD at least 50 per cent more by the
time of its completion (2003), with other possible MoD liabilities for additional overruns.
The contract had planned to transfer all risks for overrun to DML, but the MoD ignored
the rule that risk was limited to one-third of the value of the contracting company, which
amounted to only £20 million.
Acknowledgement to CIOB33
The opportunities to change risk attitudes come with integrating risk and VM, so that
there is a positive motivation factor over and above the level playing field of hygiene factors.
The impact of this is to encourage sensible risk in the area of innovation and to build in sys-
tems that properly plan and test the risk and other issues such as quality and environmental
response. Good practice sees risk management as an aspect of good business rather than a
cost to overheads.
The project manager needs experience in order to conduct risk assessment and also an
ability to make executive decisions, which will be coloured by their attitude, and to influence
the client and the project team. In collaborative projects and other negotiated tenders, there
is a chance to develop a common approach to risk and to share it in the most profitable way.
The risk register is most commonly seen in the form of a list of prioritised risks, showing
separately a score for probability and a score for impact and columns for mitigation, risk
responsibility (allocation) and management of residual risk. There may also be a monetary
evaluation of the risk using EVA. The risks need to be categorised and prioritised. Priority
may be shown using a traffic light system, with red for the higher priority risks that require
mitigating action; orange for those risks that must be monitored for the impact of further
change to the project; and green for low-level risks or those that have passed their impact
period. To be useful, the register must be regularly updated at progress meetings during
design and construction.
Risk attitude
Hilston and Murray-Webster34 define risk attitude as the way in which we perceive and
respond to a risk. Perception can be positive, neutral or negative and our response to risk is
influenced by behavioural factors, which can lead to many possible actions. According to
Flanagan and Norman,35 people may be risk loving, risk averse or risk neutral.
It is popular to cite bold risk taking as a feature of successful businesses, but in the con-
text of a project there is a greater tendency to pass risk down the line. The risk allocation
established in traditional contracts is shared. Many clients are taking a risk-averse view and
pass related building risk down the line to contractors by using different contract strategies.
This approach can be successful where the real estate and technical decision making is also
delegated. In PFI, DBFO and BOOT, a facilities solution is offered and agreed upon for
a substantial period of time so that the client can concentrate on their core service and/or
profit making.
A client who views their building as an investment option will apply a risk premium to
their returns, as in the internal rate of return (IRR), if they feel that they are taking more than
normal risk. A client will carry out an investment appraisal to identify the affordability and
returns of a real estate investment and the returns that are likely given market predictions.
A risk premium can be applied through a higher discount rate, which will emphasise the
importance attached to a short payback period and uncertainty in the future. This will raise
the hurdle return on investment by which a project’s viability will be judged.
In a similar way, the contractor will lower their price at the tender evaluation stage in
order to make themselves more competitive or raise the price to cover the perceived higher
risk. ‘Risk loving’ contractors may actually see the higher risk project as an opportunity to
make more money. The danger with a traditional form of construction procurement is that
the client perceives the burden of risk as having been moved to the contractor on a lump-sum
fixed price tender, whilst the contractor perceives that those parts of the building not fully
detailed provide the opportunity to bid low and recover costs on later variations.
A risk-neutral approach could be interpreted as ‘zero-sum’ in discussing risk allocation
in order to benefit all parties and put risk where it can best be managed. It requires an open
attitude and the development of an associated VM approach that, in particular, makes the
early appointment of contractors in the development stage of the contract essential. There is
nothing easy about this type of approach; it requires more effort and greater early commit-
ment, often at a stage prior to finalising contracts.
The choice of procurement system introduces its own risk allocation, which will be
discussed below. This may also be associated with VM as a process tool.
Risk response and management

Risk response occurs to eliminate, mitigate, deflect or accept the risk36 and logically will
reflect the cost benefit of the risk management process. Mitigation is action taken to reduce
the risk and deflection is action taken to transfer the risk. They are not mutually exclusive,
but deflection alone is not a way of reducing the probability. Mitigation may have the effect
of reducing probability and impact. Eliminating risks is often not economic or creates too
many other risks. Certain pure risks, e.g. health and safety, will have legal or social expecta-
tions for mitigating them. Managing residual risk is part of the process of risk management.
Clients may:
• Retain the risk, in which case they have to assess, reduce and manage it.
• Transfer the risk, so that someone else can assess and manage it; this may well appear as
a premium in the price for the services provided so is best done where there is experience
of this type of risk otherwise premiums will be expensive or control chaotic.
• Share the risk with another party so that both gain or pay for the outcome but there is
more control.
• Ignore the risk, which is not recommended unless the cost of controlling this risk is more
than any possible impact, and here a commercial position may be taken as risk manage-
ment is costly.
Flanagan and Norman37 refer to certain rules for risk taking such as, ‘Don’t risk a lot for a
little, don’t take risks purely for reasons of principle or losing face, never risk more than
you can afford to lose, always plan ahead, consider the controllable and uncontrollable parts
of the risk and consider the odds and what your intuition and experience tells you.’ They
also refer to the need to gain knowledge about the risk and to remove ignorance. It is in any
case unlikely that a risk will be eliminated completely without creating other risks. Ethical
and social considerations should be taken into account as well as the business economics in
deciding what level of residual risk is acceptable. The reputations of the client and business
are also at risk.
The difference between pure and speculative risk is important in the response. Speculative
risk will be accepted in order to take advantage of an opportunity. Success in this case will
be in the identification of the risks accepted and mitigation of those that are not acceptable.
Here, a business may build up its reputation by taking the right risks and managing them
successfully. Pure risks are often beyond the control of the project team and can be mitigated
by transfer or insuring it at a higher premium, e.g. removal of deadly asbestos, as discussed
in Case study 10.5.
The transfer of risk by the client is a factor of the procurement method and further risk
may be transferred to the contractors in the negotiated contracts so that VFM in allocating
the risk to the party best able to manage it is gained. It may be further transferred by passing
it down the supply chain, insuring against it or raising a bond. If the client ultimately wants
reliability, the use of inclusive maintenance contracts should also be considered.
Case study 10.5 Asbestos management

Asbestos causes a risk to many people and its inappropriate handling in the past is now
responsible for 1000s deaths per year. In order to counter further risk, most govern-
ments have legislated against the use of asbestos-based products. As many of these
products have been incorporated in existing buildings, owners and tenants are also
subject to managing the process (see Chapter 11). They are also charged with manag-
ing asbestos removal if it is disturbed by subsequent refurbishment or demolition, and
with surveying the condition of asbestos in the building on a regular basis and especially
prior to refurbishment. Only contractors who have been licensed to safely remove and
dispose of hazardous waste in designated tips can remove asbestos. This is an exam-
ple of a pure risk with mandatory controls, restricting further asbestos-linked deaths. It
seeks to protect workers as well as the public. However, removing all asbestos from all
buildings is considered to be economically unviable and, in fact, disturbing asbestos
in safe condition actually creates a larger risk. Placing responsibility for this risk in the
hands of those who are accountable generally encourages a more effective approach
that may be more successful than regulation.
Contractors, designers and clients may also prioritise the same risk in different ways.
For example, the risk of an overrun in budget because of design changes is a risk that will
most affect the client in a traditional contract who is likely to pick up the bill for any design
and scope changes. Design changes can mean extensive reworking of designs with limited
remuneration of the designer. Too many unexpected changes can also affect the reputation
of the designer, for which there is little to balance against elsewhere. The contractor will
also have to suffer disruption if the scope is changed late, with many knock-on effects for
resource management and abortive work. These disruptions may be absorbed or a decision
made to claim for additional payments. Likewise, weather conditions are mainly a contrac-
tor risk, but an extension of time affects all parties involved.
Risk opportunity is connected with speculative risk, which can be illustrated by specula-
tive building developments, where there is a chance to make a lot of money when others
are not prepared to take the risk. Buying land at a low cost without planning permission
and selling high when you gain the permission justifies the risk. However, if planning is
unduly delayed or completely refused, then money can be lost in maintaining the asset. Other
opportunities may arise in the tender process for competitive work whereby taking the risk of
bidding low to get work at a loss and maintain a good turnover results in being offered further
work on that project or even profitable new work.
Risk management techniques

Many textbooks have been written covering different risk techniques and it is here pro-
posed to summarise those techniques that best fit in with a combined risk and value
approach. An example of each application is given, but is not an exclusive use of that
method. Table 10.5 deals with speculative risk methodologies and includes quantitative
and qualitative approaches.
Table 10.5 describes methods used by clients and contractors to assess their exposure to
risk and opportunity when deciding whether or not to take on a project. It is concerned with
the risk of costs, including overheads, exceeding the returns that may be had from investing
in bonds or less risky ventures. A project needs to show economic profit (inclusive of risk
premium) over and above that. Entrepreneurial skills are required over and above the risk
management techniques to maximise opportunities, so on their own these techniques might
help to compare options or to support a business case (Chapter 2) or a key market evalua-
tion. Tender adjudication depends heavily on the market conditions and their predictability is
often assessed by speculative risk assessment techniques. Major innovative methods and life
cycle costs may also be judged to come in the speculative category as they present opportuni-
ties that, over the extended period of the life cycle, are less predictable.
Table 10.6 deals with shorter-term risk assessment and management techniques during
the project, such as inflation and interest hikes, unexpected delays, uncertainty and things
going wrong.
Table 10.6 shows other methods of risk management that can be used at the project defi-
nition and implementation stages of a project in order to differentiate between alternatives.
They have much relevance to the VE approach and can also help in managing the project in
the cost and time control areas.
The challenge for risk management in construction is therefore to challenge and encour-
age collaborative working, to develop a ‘no-blame’ culture of openness and honesty and
to work within procurement strategies that identify and share risk according to the ability
to manage and accept those risks, rather than passing the risk ‘parcel’ down the line to the
weakest member, often the sub-contractor. The difficulty for risk management is that many
of its techniques are based on mathematical analysis of probability and come from the ‘hard’
engineering side of the industry. Whilst techniques such as multiple estimate risk analysis
have a mathematical rigour, their application, and the presentation of their results, is often
Table 10.5 Assessment methods for speculative risk
Title Risk approach Example/application Connection with value management
Investment analysis The project may be assessed on the basis of payback, Assessment of financial payback associated with balancing Excellent for assessing financial risks
net present value or by building a risk premium Capex and Opex38, with income received from a involved in comparative schemes
in the client’s ‘discount hurdle rate’ using IRR or building over a period of time. or assessing costs of an alternative
breakeven. More confidence is achieved by also maintenance regime for WLC.
carrying out a sensitivity analysis.
Gateway reviews The project is reviewed progressively by an Assessment of the business case to confirm need and VFM, It is good practice to monitor value
independent reviewer. At every review gate (see such as cost–benefit analysis to determine affordability. and risk, especially reviews taking
Chapter 3) risk probability and impact are updated It is also possible to confirm capability. place before commencements of
with new information and learning from previous construction activities where changes
process. can be cheaper to incorporate.
Sensitivity analysis This is a mechanism for testing if a small change in one Sensitivity analysis can identify the point at which a This has obvious usage in WLC and may
of the variables has a disproportionate effect on the change in the value of an expected variable changes the help to establish the evidence for
overall result. More sophisticated analysis can also decision to proceed. For example, if the capital cost of the proposed VFMand the optimum
be applied, such as multiple regression and multi- energy insulation was to rise by 20 per cent, it might balance between Capex and Opex.
attribute value theory. facilitate against the additional insulation by cancelling
out discounted savings in heating costs or making the
payback period too long. Each of the variables can be
plotted on a graph of life cycle cost and percentage
variation in parameter.
Optimism bias This is a Green Book technique for public sector Predetermined uplift percentage is used to uplift the net Addresses the risk that costs are
projects in the UK. An uplift is made to the cost present value to inject more realism to predicted market underestimated and benefit value is
to reflect the optimistic level of assessed risks by prices, before inviting tenders. over-measured. Its effectiveness has
proposers. It is also useful for non-standard designs not been verified empirically.
and complex projects.
Stakeholder This methodology assesses the impact of the project Several structured methods exist based on identifying, Stakeholders account for both value
management for both internal and external stakeholders. The analysing and managing stakeholders because of their and risk. Better management of
stakeholders’ risk is assessed and a management ability to affect project outcomes, and required actions stakeholders provides an assurance
action plan drawn up to engage with high influence/ to address their interests and demands. for wider benefits and VFM.
risk stakeholders and manage their expectations.
Environmental Though not a requirement for every project, the Designing out waste and developing a waste management The environment is integral to both
impact risks and impacts of the project in relation to plan reduce consumption of inert resources and increase risk and value. Sustainability has a
assessment the environment and business need to be fully reuse and recycling, which reduces cost and improves significant impact on WLC and VFM.
(EIA) appraised. A full EIA is included in the feasibility value. Extra capital cost can reduce long-
report for consideration by development control term cost.
officers and other regulatory agencies.
Table 10.6 Assessment methods for risk management during the project
Title Risk approach Example/application Connection with VM

Extended monetary A risk register is compiled and a value is attached to Used in a public sector comparator in a PPP Alternative schemes or
value (EMV) the consequences of things going wrong. A decision contract and in comparison of different methodologies can be compared
needs to be made regarding what premium is added to methods of procurement. Also used to cut down the degree of risk or
the project. to fairly balance risk in any contract, probability on the risk register.
many of which have risk allocation and
quantification tables.
Decision analysis A flexible technique for structuring decisions into Used to look at probability and cost of This is very valuable for giving an
‘stages’ and to apply weighted probabilities for alternative ways of doing things, e.g. integrated VM//RM comparison
alternative choices. It takes into account related type of river crossings, such as bridge, for each of the expected monetary
decisions and provides flexibility to allow for risk ferry, and tunnel, or do nothing. Stages values that have been devised.
attitude and subjective impressions. Stages can be might be: Discounting can also be applied if
determined with a means–end chain and there must there are ongoing costs.
1 Which one? What type?
be a similar number of stages for alternative decision
2 Start when? How long?
chains.
3 How much?
Theory of Applied to project management, Goldratt39 based his This has been used holistically to identify This method brings value in itself
constraints project application on identifying the weakest major risk of the weakest link in a by saving on managers’ time and
(TOC) link in the critical chain, where there is most risk, critical chain of programmed events for releasing them for value-adding
and focusing all management effort on that. This major rail infrastructure projects that are activities.
prioritisation is reached after project-wide workshops logistically demanding and fast track,40
that link to value management and stakeholder and to manage it closely on the basis that
management. last past the post is the critical factor for
completion of the whole.
Monte Carlo Stochastic probability model. Generates sets of random The PERT model below is a Monte Carlo Simulation may be limited because it
simulation numbers for each of the variables within a range and simulation making a model for project is difficult to quantify functional
compares the cumulative outcome (e.g. cost, time) on time. The highest frequency of project requirements or clients’ values.
a frequency basis for the total of each of the random time estimates is represented as the best However, simulation can have a
models created. This is most powerful where the estimate of time. role in assessing WLCs.
number of iterations (simulations) generated reaches a
large number, making it statistically significant.
(continued)
Table 10.6 (continued)
Title Risk approach Example/application Connection with VM

Project evaluation PERT is used on schedule planning. It is a probabilistic Some time-scheduling software has This is mainly a scheduling tool,
and review model based on an evenly distributed frequency developed a risk analysis method but could be used to test the time
technique distribution curve with a weighting of most likely, that is able to produce a Monte Carlo schedule or to cost certainties of
(PERT) m = 4, optimistic, a = 1 pessimistic, b = 1 simulation generating a large number different designs.
The equation of combinations of activity time or cost
Expected time/Cost = (a + 4m + b)/6 is built into a within the range for each activity. The
computer program based on a range of values for most probable overall cost or duration
each activity that are usually weighted towards the is given together with the range of
pessimistic end. There is a level of subjectivity in values for a given standard deviation,
choosing the range and its distribution around the e.g. Pertmaster™ generates this on a
mean. triangular distribution.
Multiple estimate This mathematical method is based on calculating a A project approval process might require the The process of identifying the risk
risk analysis risk-free base estimate and an explicit calculation of maximum likely estimate and does not improves project understanding
or a risk allowance rather than an arbitrary percentage exceed the average likely estimate by more and clarity of the brief. The
root mean squared for contingencybased only on experience. The risk than 15 per cent to receive project approval likelihood of successful delivery
technique allowance is calculated by taking the difference to proceed to the next stage. is improved by making potential
between the maximum (90 per cent probability not The method has the benefit of identifying risks more explicit.
to be exceeded) cost of each particular risk and the the extent to which risks have a fixed
average likely (50 per cent probability) cost of the or variable total cost as well as their
risk, taking the square of that difference in cost for probability and cost impact.
each risk, adding the squares for all risks and taking This method is time-consuming but works
the square root of the total. The result is threefold - a well with the power of computing
base estimate, an average likely estimate including so values can be given a sensitivity
risks and a maximum likely estimate. analysis.
viewed by clients and fellow consultants as confusing and overly complex when they are
looking for clear direction and certainty in their project advice. A similar problem has also
been experienced by the medical profession in trying to explain risk in surgical treatment,
vaccines and susceptibility to diseases. The awareness and understanding of risk needs to be
raised in education and professional training and therefore how to develop this ‘soft’ area of
managing culture change with the acceptance of ‘hard’ engineering-based techniques is a
fertile area for research.
Another issue is how to achieve the balance between the independent risk management
facilitator, who may be managing risk in an area outside their particular technical expertise
and needs to charge a separate consultancy fee, with an in-house risk manager, where risk
management is provided as part of a wider project management service.
Conclusion
The various tools and techniques that underpin both value and risk management are well
established in academic and professional literature and are used to promote collaborative
working within an integrated supply chain. The traditionally fragmented and rather adversarial
nature of the construction industry, particularly with its separation of design and construc-
tion, has been both an opportunity for and a constraint on the development of VM and risk
management. Conversely, using these approaches within project management encourages
improvement and best practice. Both are now applied as distinct project services, offering
equally unique and robust methodologies.
Clients are increasingly challenged to procure for best value with more stringent perfor-
mance specifications. Early contractor involvement and tools for collaborative working are
promoted as means for better briefing and to develop a shared strategy for value creation.
It is also clear that risk management has developed a two-edged approach to consider both
opportunities and threats. This has helped to bring it closer to the concept of VM and it now
makes sense to view the techniques as two sides of the same coin.
Risk management and value management are seen as key means of assuring quality in
construction, so that contractors and consultants are selected according to a balance of per-
formance, price and risk control. Value for money is now identified across a broader range
of areas, such as design and construction practices that leverage sustainable and environ-
mental design, ability to finish on time, life cycle costs and energy consumption, promoting
considerate contractors and better and safer assets. These can all be built onto a matrix for
selecting contractors and consultants able to control risk and manage value by bringing the
client, the designers, sub-contractors and other stakeholders together at an early stage of the
project life cycle.
The pitfalls of risk and VM arise out of the late or inappropriate use of these techniques or
the wrong interpretation of client values. Risk evaluation depends on subjective judgements
of impact and probability, and VM may identify optimistic future savings. The increasing
push for sustainable development and social value have also encouraged wider use of VM at
the earliest strategic stages. Both require engagement with a wider stakeholder group, where
identifying and agreeing mission statements and strategic goals will require more robust
and more transparent decision support mechanisms, including identifying value systems to
inform both strategic and more tactical option appraisal and to arrive at best value solutions.
Developers are increasingly being asked to justify their planning applications in terms of
sustainable development assessment and community impact as well as their economic and
ecological impact.
On small projects the cost of such techniques is formidable in terms of work hours and the
cost of specialist advice can be prohibitive. Here, the use of simple but effective heuristics
may be a better approach, with the direct involvement of stakeholders. This is why EMV has
been illustrated. A culture of monitoring and control should also be in place as failure costs
have more impact on a smaller budget.
Notes
1 We acknowledge the contribution of Tony Westcott in this section, as cited in Fewings P. (2005)
Construction Project Management: An Integrated Approach. 2nd edn. Abingdon, Routledge.
2 Dallas M. (2007) Value and Risk Management: A Guide to Best Practice. Oxford, Blackwell.
3 Davis Langdon and Everest (2003) Creating the Conditions for Success. June.
4 Kraljic P. (1983) Purchasing must become Supply Chain Management. Harvard Business Review,
September.
5 MACE (2018) Setting New Standards for Sustainable Developments in West Africa. Available
online at: https://www.macegroup.com/projects/one-airport-square (accessed 25 September 2018).
6 Romm J. (1994) Lean and Clean Management: How to Boost Profits and Productivity by Reducing
Pollution. New York, Kodansher Amer Inc.
8 Adapted from Wolstenholme (2009), p. 25.
9 Pasquire C L. and Swaffield L. M. (2002). Life Cycle/Whole Life Costing. In J. Kelly (ed.), Best
Value in Construction. Chichester, Wiley.
10 Higham A., Fortune C. and James H. (2015) Life Cycle Costing: Evaluating its Use in UK Practice.
Structural Survey, 33(1), 73–87.
11 Kelly J. and Male S. (1993) Value Management in Design and Construction: The Economic
Management of Projects. London, E & FN Spon.
12 Wolstenholme (2009).
13 Kelly J., Male S. and Graham D. (2015) Value Management of Construction Projects. 2nd edn.
Oxford, Wiley Blackwell.
14 Office of Government Commerce (OGC) (2003) Achieving Excellence in Construction. London,
OGC.
15 Kelly et al. (2015).
16 Kelly and Male (1993), p. 174.
17 Kelly and Male (1993).
RIBAplanofwork.com (accessed 23 July 2017).
19 Kelly et al. (2015).
20 Bytheway C. W. (1965) Basic Function Determination Technique, Proceedings of the 5th National
Meeting of the Society of American Value Engineers, 2, 21–23.
21 We acknowledge A. Wescott, as cited inP. Fewings (2005) Construction Project Management: An
Integrated Approach. Abingdon, Routledge, Pp. 190–191.
22 Kelly et al. (2015).
23 Based on Kelly et al. (2015).
24 Society of American Valuation Engineers.
25 Woodhead R. and Downs C. (2001) Value Management: Improving Capabilities. London, Thomas
Telford.
26 Edwards L. (1995) Practical Risk Management in the Construction Industry. London, Thomas
Telford
27 Burke R. (2013) Project Management: Planning and Control Techniques. 5th edn. Chichester,
Wiley.
28 Flanagan R. and Norman G. (1993) Risk Management and Construction. Chichester, Wiley.
29 De Meyer A., Loch C. and Pich M. (2002) Managing Project Uncertainty: From Variation to Chaos.
IEEE Engineering Management Review, 43(3), 91– 91.
30 Goldratt E (1997) Critical Chain: A Business Novel. Great Barrington, North River Press. Also see
Goldratt E. and Cox J. (1984) The Goal: A Process of Ongoing Improvement. New York, Routledge.
1 Edwards (1993).
3
32 HM Treasury (2013) The Green Book: Appraisal and Evaluation in Central Government. London,
The Stationery Office. This is just one example.
33 CIOB International News (2003) Devonport, What Went Wrong? September.
34 Hillson D. and Murray-Webster R. (2005) Understanding and Managing Risk Attitude. Aldershot,
Gower.
35 Flanagan and Norman (2003).
36 Burke (2013).
37 Flanagan and Norman (2003).
38 Capex – capital expenditure (such as total building cost and fees); Opex – operating expenditure
(costs for utilities and facilities management).
39 Goldratt (1997).
40 Gregory A. and Kearney G. (2004) Restriction Buster. Project, 16(10), 20–22.
11 Project safety, health and the environment
What? Construction sites have the potential for serious accidents as there are many people
working closely together, many activities are unpredictable because of the dynamic nature of
project work and tolerance of risk is traditionally quite high. For these reasons, the frequency
of accidents is very high and the impacts often very serious. Health conditions are less visible
but just as critical in terms of improving conditions. Their link with healthy living environ-
ments has also given this issue a higher profile in relation to construction site conditions, the
designer, the finished building user and the maintenance team.
The objectives of this chapter are to:
• analyse the principles of workplace health and safety compliance

• critique effective health and safety policy, planning, risk assessment and worker involvement
• develop principles of safe and healthy buildings and sites
• propose a working system using the Construction (Design and Management) Regulations
• examine the case of SME contractors
• discuss a framework for managing prevention and improvement in relation to health
and safety
• consider the impact of behavioural safety approaches to health and safety.
Why? The mass of legislation designed to reduce accident reduction has not been as effective
as could be hoped and attempts to improve are on-going. Accident prevention, good manage-
ment of health and safety (H&S) and the built environment are the key to improving H&S
and reducing the occurrence of accidents. There are plenty of opportunities to explore fresh
ways of working that involve more than mitigating risk, as reflected in the new international
standard for occupational health and safety, ISO 45001.1
How? Technology is also helping us to better integrate design and execution so that we
can visualise overlapping design and construction activities to a greater degree and flag up
clashes. Occupational health and safety (OHS) management systems are also recognising the
need to manage dynamic and changing conditions so that H&S plans are not stuck in bottom
drawers but, instead, re-assessed regularly so that hazards are prioritised daily. Inspections
and motivated worker engagement feed into continuous improvement. H&S is integrated
into all activities to change behaviours and build up a healthy and positive culture where all
are involved. Competent workers and managers are thus needed to recognise risks and their
consequences and view relentless training as relevant to the task at hand. The essence of
competence is relevance to the workplace.2
The International Labour Organization (ILO)3 estimates that, worldwide, 2.78 million deaths
and 374 million non-fatal work-related injuries and illnesses occur as a result of poor H&S
Project safety, health and the environment 309
practices at work. In financial terms, this equates to 3.94 per cent of global domestic product.
The ILO estimates that 160 million new cases of work-related illnesses occur each year and at
least 60,000 fatal accidents on formal and informal construction sites worldwide. This means
that the construction sector accounts for about 17 per cent of occupational fatal accidents while
it comprises only 7 per cent of the workforce. Health and safety on construction projects have a
notoriously bad record and many countries have a low inspection rate. These estimates include
new categories of illness, such as stress-related disorders and mental health issues.
Construction presents a particularly wide range of hazards related to health and injury,
including the requirement for extended heavy physical work in ergonomically difficult posi-
tions exposed to weather, dust, noise and fumes; the use of many corrosive chemicals; regular
working at height; and the wide use of machinery and power tools in a dynamic environment
in which conditions change regularly. The most common workplace illnesses are various
forms of cancer resulting from exposure to hazardous substances, musculo-skeletal injuries,
circulatory and respiratory diseases, hearing loss and diseases caused by exposure to patho-
gens. The risks most reported by workers are working with machines/tools, lifting, slips and
trips – in fact, also the most common sources of injury. But workers are also reporting time
pressure, difficult customers and long or irregular hours as H&S risks. Stress disorders are
lower than average amongst skilled workers in the industry.
Accident and injury statistics are not the only factor to consider. Workers’ perceptions of
safety often paint a completely different picture to that revealed by ‘good’ statistics because
poor recording of incidents is connected with poor management. A National Institute of
Health Sciences (NIHS) report4 conducted with American construction workers showed that
46 per cent of them thought that their workplace was very safe as compared to 80 per cent
of those in an office environment and the all-occupation average of 61 per cent. Workers
in small to medium-sized enterprises (SMEs) were likely to feel that H&S was not a high
priority with management. A perception of danger can persuade people to leave the industry.
Case study 11.1 provides statistics for the UK.
The number of fatal injuries occuring in the construction sector is twice that of the
occupational average, though in many countries efforts to improve have resulted in a
long-term downward trend. Low-skilled workers in rapidly industrialising countries
experience a particularly high rate of fatal accidents as a direct result of their skill level.
It is acknowledged that SMEs are less organised and more prone to accidents than large
organisations and, for this reason, the ILO focuses to a greater extent on the vast majority
of building organisations that are small.
The financial cost of workplace accidents is spread among the employee’s loss of earn-
ings, the employer’s loss of productivity, the taxpayer’s contribution to medical expenses
and welfare provision and loss of reputation affecting marketing. Accidents also cost
money in the shape of insurance, fines and time off work.
Case study 11.1 Accident figures in the UK, 2010–155

The UK has two ways of recording injury: legally, through employers recording acci-
dents (RIDDOR6), and voluntarily, through labour force surveys (LFSs). Inevitably,
about 30 per cent more injuries are reported through LFSs than through RIDDOR, as
many accidents are not reported to employers.
(continued)
(continued)
The construction industry has improved its accident record in real terms by 30 per
cent over the last decade (RIDDOR)7; however, self-reported injuries (LFSs) levelled out
after a period of reduction. There are 30 per cent fewer accidents now than in 2000/01.
However, fatality rates for the construction industry are still the third-worst in the UK,
after agriculture and mining, although still comparatively good compared to European
levels in general. It is easy to blame a ‘cowboy’ element in the construction industry
for these figures, but it is clear that a major problem still exists. Injury and work-related
illnesses are estimated to cost the industry £1 billion in equal proportions. The 1998
Egan Report8 claimed that accidents can account for 3.6 per cent of project costs, which
provides an economic as well as social and ethical reasons for improving performance.
Health and safety was ranked by managers as fourth in importance after commitment to
people, sustainability and client leadership. Obviously, these can be related.
The prevalence of accidents in the construction industry is declining, but not enough.
Each year around 2.9 per cent of construction workers are injured; however, this figure
rises to 4.1 per cent for workers at the frontline (skilled and building trades). Of these,
25 per cent result in serious injury (requiring more than seven days off work). The cause
of most fatal injuries is falls from height. Non-fatal injuries are spread amongst slips and
trips, carrying objects, falls from height and being struck by moving or falling objects. In
occupational health terms, 65 per cent of injuries/illnesses are accounted for by musculo-
skeletal conditions and respiratory diseases; 15 per cent are stress related.9
Workers are quite motivated to go to work and, in spite the added dangers, only
about 1.1 working days are lost per construction worker, which is broadly equivalent to
all industries (0.96).
Exposure to hazardous materials in the workplace is a great cause for concern. Asbestosis
and related diseases caused by exposure to asbestos are worrying because their gestation
period is so long. This means that, even though asbestos use has been banned for some time
in most countries, it is still responsible for a great many deaths and the figures are still rising.
In the UK, for example, asbestos accounted for 109 deaths in 1978, 400 in 2008 and 467 in
2015.10 Older people and males fare worse. Mesothelioma, a form of cancer, killed a further
2542 in the UK across all industries; a frightening figure considering that all asbestos use
was banned in 1980 (possibly not all cases are asbestos related). An increasing number of
people are legally recognised as disabled as a result of asbestos-related illnesses; 100,000
worldwide. Increasingly, mental health issues and stress disorders are being targeted as areas
of concern for the construction industry.
Accidents and near misses

The Health and Safety Executive (HSE) reviews and reports on the hierarchy of accident
types, with falls from height listed as the most common serious accident, as a result of falls
off or through roofs, scaffolds and ladders or into excavations. Studies seem to agree that
one serious reportable accident occurs for every seven minor, non-reportable accidents that
require only first aid (although one major report put this ratio at 1:16). Considerably more
near misses occur,11 producing an iceberg effect, as shown in Figure 11.1(b).
1 Serious and fatal accidents
3 Other reportable accidents 1 Major or over 3-day injury
50 Non-reportable accidents 7 Minor injuries

Most, not in
Near misses statistics 189 Near misses
400
(some reportable)
Figure 11.1 (a) Relationship between reportable and non-reportable accidents, based on Tye and
Pearson (1975)12 and (b) relationship between near misses and reportable accidents,
based on APAU (1997)13
Stress is another factor that affects workers’ wellbeing; indeed, 30–50 per cent of workers
in industrialised countries complain of psychological stress and overload. There is a connec-
tion here with environmental policy that is also concerned with the impact of buildings on
the health of others. Stress does result in time off work; however, many workers are reluctant
to admit to something that might affect their career. Case study 11.2 refers to this situation
in the UK.
Case study 11.2 Work-related stress and mental illness

A CIOB report14 conducted in 2006 revealed that those 847 members working in
construction interviewed categorised reasons for work-related stress as follows:
(1) physical – lack of privacy, poor temperature control; (2) organisational – inadequate
staffing, lack of feedback, poor communications, poor planning; (3) demands of
the job – too much work, pressure, ambitious deadlines; and (4) role-related –
conflicting demands.
A further survey, conducted in 2016 by UCATT,15 revealed that 76 per cent of con-
struction workers had suffered from stress in the workplace. A further 35 per cent were
suffering from mental health problems; of these, 75 per cent experienced depression,
58 per cent anxiety and 44 per cent had needed to take time off work. These workers
would not have been included in the official statistics because 72 per cent of them did
not even discuss their health issues with their colleagues or management. In addition,
57 per cent believed that management had no interest in their mental health. Mental
health issues are stigmatised and may be a block to career progression even if manage-
ment adopts a compassionate approach.
Both stress and mental health problems can be alleviated by talking about them.
However, the culture of stigmatising those who are suffering is shortsighted because
not only does it not help those particular workers but it also has a significant negative
effect on productivity and creates unsafe situations in the workplace. Those in manage-
ment positions are particularly prone to suffering from the effects of stress and often
they do not have union representation.
Principles of modern health and safety
Prior to 1974 there was a piecemeal approach in the UK and the US construction industries,
with quite antiquated and often contradictory legislation. In the UK, the Factories Act 1890,
which sought to improve factory conditions that had become commonplace in the Industrial
Revolution, applied to construction in terms of lifting, health and welfare and the operating
of machinery, and to a lesser extent the Offices, Shops and Railway Premises Act 1964 were
used as the basis of H&S on construction sites. These Acts were merely prescriptive, and
accidents still occurred through lack of co-ordination and accountability. In 1970 an umbrella
Act was created that placed responsibility for H&S on employers and others – the Health and
Safety at Work Act 1970. This was used to create industry-specific regulations controlled by
the relevant government department.
In the USA, after the civil war factory inspections were instituted in 1857, but between
1890 and 1920 workplace regulations were enacted on a state basis. The Walsh–Healy Public
Contracts Act established H&S requirements for government contractors and a benchmark
law in 1947 granted workers the right to walk off the job if they believed it was unsafe. The
key co-ordinating law was the Occupational Health and Safety Act 1970, which had similar
implications for construction.16
Other countries have similar co-ordinating legislation for occupational health and safety
that provides a framework for construction regulations, as shown in Table 11.1 for 2014.17
The UK and Continental Europe have chosen to follow non-prescriptive H&S legislation,
which will be used here as examples to make points more generally about managing H&S
effectively. They illustrate the integrative nature of umbrella legislation that co-ordinates more
specific regulations covering different contexts. The construction industry is the context here.
Health and Safety at Work Act 1970 (HSWA)

Integrated guidelines to provide simpler H&S legislation with parity across all indus-
tries were required and the resulting Health and Safety at Work Act 1974 (HSWA)
Table 11.1 Enforcement regimes in five countries
Co-ordinating Act Co-ordinating Fatalities/ Budget/100,000

enforcement body 100.000 workers ($/year)
UK (exclude Health and Safety at HSE and HSC provide 0.8 740,829
Northern Work Act 1974 codes of practice and
Ireland) HSE enforces
USA Occupational Health Occupational Safety and 5.0 354,004
and Safety Act Health Administration
1970 enforce and OHSC
for appeals
Australia Safe Work Australia Safe Work Australia 2.0 188,877
Act 2008 but enforced by
individual states
China Work Safety State Administration of 13.2 Inaccessible
Presidential Order Work Safety
Nigeria Factories Acts of 1957, Inspectorate Division of 24.1 9,042
1987 and 1990 Ministry of Labour
and Productivity
in the UK has provided robust forward-looking principles that have allowed modern
regulations to be produced for all industries under the umbrella principles of the Act.
These principles are based on a corporate and personal responsibility and not a pre-
scriptive approach:
• The responsibility of the employer to provide a safe working environment to

employees.
• The responsibility of the employee to comply with all reasonable provisions for their
own safety and to act responsibly towards others.
• The responsibility of the employer and the owner of premises being accessed by others
to ensure that such locations are safe.
• The responsibility of designers, suppliers and plant hirers to provide safe designs, prod-
ucts, machinery and components.
• The responsibility of employers to prepare a safety policy.
The HSWA establishes both criminal and civil liability and enforcement and guidance
agencies have been set up accordingly (see Table 11.1).
The point of this approach is to encourage a risk assessment method that puts the onus on
the employer and building/site owner to adapt and develop measures relevant to their context,
rather than a blind adherence to prescriptive regulatory measure. It also allows for individual
identification of personal accountability, at different levels, for measures that are sufficient
to prevent accidents. The Temporary and Mobile Sites Directive, for instance, which has a
Europe-wide influence on construction sites, espouses the principle of identifying persons
who will assess risks and set up measures to control and reduce them when multiple organisa-
tions are operating onsite. We look at how this works later, under the Construction (Design
and Management) Regulations in the UK.
A raft of legislation has been applied to the European construction industry, generated
by directives issued by the European Union.18 It is important to be aware of the princi-
ples of the Health and Safety at Work Act 1974 (HSWA) because they underpin much of
the European H&S legislation. In the UK, the Act set up a framework for focused non-
prescriptive risk-related regulations that place the onus on the employer to provide a safe
workplace; that is, it is advisory rather than prescriptive. EU directives have not wavered
from this far-sighted principle.
In the UK, the HSE plays an advisory and prosecuting role in construction in accordance
with the HSWA (sections 10–14). Enforcement can lead to a notice to rectify specified faults
promptly, in the form of:
• a warning
• an improvement notice
• a prohibition notice
• prosecution.
A prohibition notice shuts down the site until suitable action has been taken to make the site
safe again. Warnings or improvement notices are served for smaller problems and allow work
to continue with a requirement for action to be taken within a strict time frame. Prosecution
can be imposed in the case of non-compliance to an improvement notice. In the case of acci-
dents resulting in death or serious injury, an employer or their agent can be found criminally
liable and face a large fine or even a custodial sentence.
Health and safety policy
All organisations and businesses employing more than five people require an H&S policy in writ-
ten form. The purpose of the policy is to provide a clear statement of commitment to the H&S of
employees and to direct accountability for safe systems of work to named people. A director or
partner must be named with executive responsibility for the policy being carried out. There is an
H&S manager who is responsible for monitoring H&S systems, receiving feedback, arranging
training and communications and seeking to improve and maintain up to date systems. Smaller
companies often share an agency that provides many of these services for them; however, they are
still accountable for workplace H&S. The six main areas to address for any organisation writing
an H&S policy, including a construction project, are:
• How to prevent accidents?

• What training is necessary to ensure employees are competent?
• How to consult with employees?
• What emergency procedures enable evacuation in case of fire or explosion?
• What basic systems and maintenance responsibilities exist to ensure safe and healthy
conditions?
• Who is responsible for setting up statutory reporting, first aid and accident book
procedures?19
The primary purpose of general policy is to set out an action plan for H&S.20 In order to carry
out the policy it is necessary to conduct a risk assessment asking the following key questions:
• What are the hazards?

• Who might be harmed?
• What can you do to reduce the risk?
• Who is responsible for ensuring that it is working?
Table 11.2 provides an action plan.
Organisation of health and safety

Overall responsibility for policy and implementation lies with a director or senior partner of
the organisation(s) carrying out the work. In a larger organisation they are likely to delegate
the development of co-ordinated arrangements to a senior manager to provide continuity and
parity across projects but will retain organisational accountability. It is also usual to have
safety experts who visit on behalf of the main contractor and subcontractor organisations
onsite and produce reports for improvements. The preference is for the use of competent
employees for H&S advice, rather than external sources, but this may need to be supple-
mented in SMEs.
On a construction project, overall responsibility will lie with the project manager, or other
named person, who will have H&S training. They are responsible for implementation of the
company H&S policy and co-ordinate the project H&S plan. They monitor the system set up
for the project, report and investigate accidents and near misses and receive feedback from
safety representatives and specialist contractors. The principal contractor has special powers
to make site safety rules, recognising the co-ordinating function of a main contractor. The
principal designer retains accountability for the design issues that affect construction and
Table 11.2 Action planning for the health and safety policy
Main action areas Application to construction work

Develops safe systems of working Consult those who are doing work for you. Construction work
onsite through risk assessment is dynamic so each project is assessed on its own H&S plan
and continuously monitored to adapt to conditions. Each
employer supplies written risk assessment and a principal
contractor co-ordinates interfaces, entry, evacuation,
reporting and common areas such as access, delivery and
excluded areas.
Establishes a communication More than paperwork – it is best direct, by using regular
system for informing project inductions and updates and for existing workers and regular
workers of H&S matters toolbox talks. Training courses for managers.
Gives details on who will be Primarily the site manager/project manager is responsible and
responsible for H&S and has to delegate specific areas of work for monitoring and
delegates roles checking.
Stresses the importance of the Set up worker forum that meets monthly or more often on
co-operation of the employees bigger site to analyse failures and identify improvements.
to using these systems
Sets out procedures applicable to Stringent indictment for contravention and reward for best
contravention of safety rules practice and improvements.
Review and analyse statistics Collect accident and near miss statistics and examples of
company-wide and interact good practice. Feed back to contractors and designers for
with design and use issues continuous improvement.
building use, but not construction methodology. Figure 11.2 shows a typical organisation
chart for a contractor.
Worker involvement
The Health and Safety (Consultation with Employees) Regulations 1996 recommend, in the
absence of a formal trade union safety representative, the appointment of project workforce
representatives who may be ‘ears and eyes’ in order to report on unsafe practices onsite.
Director or partner accountable for

health and safety policy
Contract manager
(co-ordination of policy) If design in-house or co-ordinate
Project manager Health and Principal

Other PMs
(principal contractor) safety officer designer
Site safety representative Other

(elected worker) designers
Figure 11.2 Organisation to show responsibilities

This does not take away from the responsibility of all employees and visitors to report
dangerous or unsafe structures or practices that they come across. The HSE encourages
all workers to be involved in their own safety, based on trust, respect and co-operation.
Larger construction companies have developed their own schemes centred on making H&S
everyone’s responsibility. Formally involving workers works well in non-unionised or tem-
porary workforces such as those in construction. Each worker is an individual but engaging
a competent and resourceful workforce trained to build in improvements makes sense and
removes traditional perceptions that H&S is bureaucratic. In some instances, worker safety
advisors are appointed who receive training and act as roving safety representatives. The
starting point should be the writing of risk assessments by workers doing the job, supported
by management, but ISO 45000 takes this further.
The main barriers listed in research conducted by the Royal Society for the Prevention of
Accidents (RoSPA)21 suggested pressure of work, the need to get everyone together, poor
communication, inbuilt and machismo attitudes amongst workers who have done their job
‘in that way’ for a long time and management accountants who see H&S expenditure as
unnecessary. Better management commitment to real communication and valuing worker
feedback and ideas seemed to be reliable means of improving existing systems and keep
things fresh and regenerate interest in employees. One interesting observation made in this
research was that a system of hierarchical committees is likely to mean that ideas get lost or
are meaninglessly diluted and should thus be avoided. To be effective, an H&S scheme must
allow workers to contribute to decisions. Case studies 11.3 and 11.4 illustrate this.
Case study 11.3 Timber yard worker involvement22

A private company that has two timber yards with a turnover of £100 million and 400
employees has an H&S and quality officer on both sites. It runs a forum for the H&S
representatives every six weeks and has an ad hoc safety awareness meeting with the
responsible director. It has attempted to move away from ‘tick box compliance’ and
towards a change in culture to ‘integrate the function into the wider business picture’.
It has a standard agenda to cover statutory issues, general H&S, environment, first aid
and emergency issues. It raises specific issues before the meeting to ensure time for
consultation with the workforce by the representative. Representatives provide direct
feedback to the workforce after the meeting. A small amount of training is given. An
H&S forum for wider worker involvement operates on an ad hoc basis when a particular
issue needs more discussion. There is an H&S suggestion box and an H&S newsletter.
Acknowledgement to RoSPA23
Case Study 11.4 takes a risk profiling approach to H&S. The company liaises with workers
to reduce known risks.
Case study 11.4 Bricklayers taking ownership of health

and safety24
The company has good H&S standards. Unfortunately, supervisors noticed that the
fortnightly toolbox talks, though well attended by the bricklayers, were not acted upon
and workers had lost interest in them. There was a need to develop a sense of shared
responsibility for H&S between leader and worker. The company purchased some
picture-based scenarios as a starting point and developed a fresh programme of tool-
box talks involving:
- consulting with bricklayers to identify what they saw as the top five risks in relation
to accidents and ill health in.
- using tablets to make the toolbox scenarios more interactive and accessible.
- delivering the talks more interactively.
This is called a risk-based approach.
Outcomes
As a result of their involvement in such discussions, the bricklayers developed a more
open attitude to H&S, paid better attention and offered improvements. Supervisors felt
supported in making decisions to halt work if they deemed conditions to be unsafe and
worked with bricklayers to improve efficiency. Other business benefits were:
- a reduction in reporting under RIDDOR.

- repeat business generated as a result of the company’s higher H&S standards.
- supervisors becoming more confident and competent on the job.
Acknowledgement to the HSE Leaders and the Worker Involvement Toolbox programme25
Trade union representation

Trade union safety representatives in the UK are awarded paid time to investigate accidents
and near misses and to inspect their own work premises26 or those of others they have been
appointed to represent. They may also consult with and receive information from enforcement
officers and require meetings with employers to gain information such as risk assessments,
accident reports and hygiene reports. Union representatives are provided with basic 10-day
training and are then able to represent their members in unions such as Unison and the vari-
ous specialist construction unions. Case study 11.5 indicates best practice.
Case study 11.5 Manchester Royal Infirmary27

A trade union specialist was appointed to train and advise site safety representatives
and to chair the site safety forum so that there was an explicit emphasis on the worker
contribution, thereby making it more focused and relevant to them. These representa-
tives are encouraged to propose amendments that produce a better risk assessment
and also to stop work where they think they are ignored. For example, following work-
ers reporting their concern regarding working at height without proper edge protection,
union representatives were able to halt operations while management resolved the
(continued)
(continued)
issue. There was no fear of repercussions in relation to lost work because management
recognised the risks identified by workers and respected their judgement, thereby sup-
porting workers’ ownership of their own safety.
Acknowledgement to the HSE
Nowadays, many construction workers are not members of unions because they work in
small disparate groups for specialist contractors and such employers have a history of resist-
ing training and workplace inspections because they require paid time off work. Clearly, they
miss out on the benefits of representation in relation to workplace safety, which, according to
one survey,28 is a more important function for the unions than addressing workplace condi-
tions and pay.
Reporting and prevention

Reporting of accidents is a statutory requirement in most countries. In Europe, under the
mandatory reporting regulations (RIDDOR),29 the following must be reported for possible
investigation:
• accidents involving death, major injury or the need to take more than three days off
work30
• dangerous occurrences onsite that involve a near miss, even if no injuries are sustained
or damage incurred
• significant health hazards such as poison, bacteria/virus or pollution
• occurrences of a dangerous disease.
Near misses may cause substantial property damage, but reporting should be because of
significant propensity to harm such as collapse of a scaffold. This allows the HSE to inves-
tigate accidents and provide accident statistics. It also allows employers to learn from
the incident and to improve their systems to mitigate future danger. There is, however, a
serious shortfall of reported injuries, which is indicated by the discrepancy between the
annual labour force survey (employee response) and RIDDOR (employer reporting). This
indicates that only 40 per cent of accidents are reported by employers.
All accidents, however small, should be recorded in an accident book. They do not have to
be reported officially if they are outside RIDDOR, but it is important to review any accidents
and reasons that are symptoms to see if there are any patterns which indicate poor practice
that can be improved. Best practice contractors have a system to study the cause of accidents
(see later) and to provide new guidelines to eliminate causes with the potential to recur.
European approach to construction safety

The main H&S issue in the construction industry is the temporary nature of the workplace,
with unique new hazards and the need to fundamentally consider the focus of risk. Even
similar work areas present different hazards as there are physical changes to the site taking
place throughout the progression of a construction project that create a dynamic risk environ-
ment where key hazards need to be communicated daily. In addition, foreign or inexperienced
workers or visitors are at greater risk if they do not understand instructions as a result of
language barriers or lack of awareness of H&S. Here, safety posters in pictorial form can com-
municate universal messages. Having competent people permanently onsite is also crucial
for continuity. The Temporary and Mobile Construction Sites Directive (92/57/EEC) led to
Europe-wide regulations covering construction specifics. For example, the UK Construction
Design and Management Regulations (CDM) are used as an illustration of best practice to
identify management responsibilities for safer construction environments in which many
overlapping hazardous tasks are taking place.
Other European directives relate to specific hazards and limits in relation to the areas
indicated. They also expect that a risk identification and assessment process is put in place,
together with control measures to reduce risk, that training is provided as necessary and that
employees are provided with relevant information. In the UK, this means:
• Specific, but not exclusive regulations, such as lifting equipment (LOLER),31 working
at height (WAHR),32 head protection (CHPR),33 machine safety (PUWER)34 and the
Control of Asbestos Regulations 2012,35 which control the way asbestos is removed and
managed in buildings.
• Management co-ordinating regulations (CDM)36 identifying prime client, designer and
contractor responsibilities, and construction-specific planning and risk assessment.
• CDM Part 4, which now incorporates the specific measures for safe places of work, security,
good order and other construction hazards, stability, demolition, explosives, excavations,
inspections, energy distribution, drowning, traffic routes and health and welfare.
• Non-specific regulations, such as for managing hazardous substances used onsite
(COSHH),37 noise regulations specifying allowable noise levels and worker exposure
time to such noise,38 and regulations pertaining to the safe use of temporary and perma-
nent electrical installations.39
See Appendix A, at the end of this chapter for more details on these regulations.
Construction (Design and Management) Regulations (CDM)

The CDM Regulations40 were developed to establish a transparent set of responsibilities for
the client, the designer, the principal co-ordinating contractor and the individual contractors
to set up clear responsibilities on a multi-organisation temporary worksite such as a construc-
tion project, as shown in Figure 11.3. The principal designer (PD) co-ordinates the design
H&S to pass on to the principal contractor (PC) to ensure knowledgeable construction of
the building. A construction project is a unique workplace and it is compulsory to flag up
existing or design hazards in the tender documents. The PC sets up a construction H&S plan
(HSP) before starting work. A H&S file is produced (HSF) for the client providing instruc-
tions and updated documents.
CDM responsibilities
The CDM Regulations are the key protocol for specific management and design co-ordination
and client responsibilities. It manages the site H&S created by the unique fragmented organi-
sation of construction projects. The PD and PC are the key co-ordinators responsible for
Client appoints competent

designer and contractor
Principal designer
co-ordinates design
for tender
Principal contractor
completes H&S plan
before site start
Ongoing design
co-ordination with Principal contractor
contractors manages H&S
systems onsite
Contractors provide
detailed H&S
Principal designer methodologies and build
co-ordinates H&S
file for user
User receives HSF and

manages H&S in use
Figure 11.3 CDM co-ordinating process
co-ordinating H&S in the design phase and the construction phase, respectively. They are not
directly responsible for the actions of individuals or other employer liabilities, but they do
have a responsibility for interface management and ensuring good communication between
different parties in design and construction.
Before start: The client is accountable for H&S and is responsible for appointing compe-
tent co-ordinators for the design phase (PD) and construction phase (PC) and ensuring that
a co-ordinated HSP has been developed by the principal contractor before the construction
work starts. In practice, the plan is approved on the advice of their professional team and the
PD as the client may not be experienced in construction. The client is liable if they do not pass
on information about hazardous substances or conditions that exist before the site is handed
over. They are also responsible for ensuring that sufficient resources are available to cover the
costs of sensible H&S measures. This will be covered by appointing a main contractor who
has priced and is committed to proper H&S measures as indicated in a properly developed
construction HSP. The PD and others may advise the client when selecting the tender.
During design: The PD is an early design appointment. This person will advise the client
and co-ordinate the individual design function so that it complements assumed H&S with
others. Their responsibility pre-contract is to co-ordinate the H&S aspects of design so that
documents fed into the tender documents for pricing ensure a combined approach to H&S to
provide ‘a level playing field’ for each contractor’s tender. Later, the PD works with the PC
to ensure they are incorporated into the PC’s construction phase HSP. They also collect and
present information from all the designers and contractors, collating as-built drawings into a
health and safety file (HSF) that also contains data on safe use of materials and components
and operating procedures.
The designers and specialist contractors are responsible for assessing risk, and managing
their work and being aware of the effect it has on others. They provide risk assessments to the
co-ordinators who then use them to compile a co-ordinated approach for both construction
activities and when the building is in use. The PD may make recommendations for amended
design or requests for more information but they are not themselves liable for unsafe design
or methods of installation. This liability remains with the designers and contractors who are
considered competent and prepare their own risk assessment. The PD liaises with the PC on
buildability so that structures can be sequenced and accessed safely. Designers are responsi-
ble for temporary structures like formwork or scaffold they have designed.
During construction: The PC is the main contractor who formally manages health and
safety co-ordination onsite. The PC has to produce an HSP before construction starts, miti-
gating risks and managing key residual risks for construction. This plan is reviewed regularly
and when other contractors are appointed. The interfaces between different contractors work-
ing on the project are dynamic and so new risks arise. In practice, this requires all contractors
to produce risk assessments and method statements before they start work, which are inte-
grated or amended by the PC to suit the needs of others. Site rules are established to create
safe overall conditions, safe common access, working platform protocols, escape routes and
fire-fighting, lifting operations and measures to manage access to areas. They also arrange
site-wide information, induction and training to update skills and ensure the wearing of pro-
tective clothing. A card indicating the level of competence in the worker’s trade or manager’s
supervisory skills is compulsory on many sites. Updated trade skills are implicit in safe ways
of working. PCs need to control access to the site, protect the general public and provide
adequate hazard and prevention signs. They pass co-ordinated H&S information to the PD
for the HSF.
The PC is responsible for sequencing events safely, avoiding impossible programming
and juxtaposition of trades that are dangerous in combination, such as flammable paint and
hot work. They need to manage healthy workplaces and ensure the welfare of personnel.
Refurbishment and demolition involve further challenges for protected areas, segregation,
dynamic communications and phased access. For this reason, major demolition is best com-
pleted before other contractors continue.
Contractors have a responsibility to provide safe working methods for their workers and
for others working in the vicinity, including the public. As employers, they must have a
safety policy and provide protective equipment. They must also provide risk assessments and
work methodologies for the PC and other contractors to access. Individual contractors need
to risk assess and manage their work and be aware of the effect it has on others.
Materials: Safe design for the construction phase means selecting materials that are safe
to use, not forcing workers to do heavy lifting or involving details that force non-ergonomic
working. It also requires providing information on hazards and the use of hazardous sub-
stances and full interpretations of surveys that have identified contaminated ground, unsafe
structures or material hazards such as asbestos. Design can assist in reducing work at height
by utilising prefabricated components so less in-situ fixing is required; it can also reduce
component weights so that heavy lifting is not an issue. Safe methodologies are the respon-
sibility of the contractor but important discussions on buildability may result in amendments
to design detailing to ensure safe construction. New technology such as exoskeletal support
and personal lifting aids can transform workers’ lifting ability and may also provide creative
methodology. Contractors need to determine their methodology before pricing.
Building in use: The designers must provide useful information for the HSF on risks
that impact the building’s health and safety in use. They are liable for accidents or health
problems attributable to poor design that contributes to unsafe environments for contractors,
users, maintenance teams and those who demolish the structures.
Services designers also have a role to play in ensuring healthy buildings and preventing
the presence of infections, such as legionella, or general poor conditions sometimes alluded
to as sick building syndrome. Buildings that become very hot or fail to induce sufficient air
circulation can also produce uncomfortable and unhealthy conditions.
The designers must design buildings and structures to ensure they are safe. They are
not responsible for irresponsible building users, but must anticipate risks incurred by their
design, including safe access for controls, repairs and cleaning. Examples of maintenance
hazards are: poor access for cleaning building components; working at height or over glass
roofs; inadequate or unsafe access to services in the ceiling space; plant or machinery on
roofs; access to hot machinery; or contact with hazardous materials. These issues are prop-
erly considered in the scheme design as facilities may feature in the external elevations and
in the spatial arrangements for service installations.
For the user and owner of the building, H&S means providing protection from trip and fall
hazards; users being able to escape safely in the case of fire or explosion; checking and main-
taining systems to avoid electrocution and toxic gases; keeping fire exits clear; and ensuring
that escape exists and doors are in working order. Users have a responsibility to look after the
working function of buildings so that safety systems work and to follow design recommenda-
tions for maintenance and upkeep in the HSF.
Impact of H&S legislation on small contractors (SMEs)

Small to medium-sized enterprises (SMEs) dominate the construction industry in terms of
the number of organisations. They carry out about 60 per cent of the work and, unsurpris-
ingly, experience more accidents. They are, however, notoriously difficult to get on board, in
a formal sense, and tend to be non-complaint with significant parts of the legislation, such as
provision of full personal protective equipment (PPE), safe scaffold, risk assessments, method
statements and paperwork. Research by the HSE41 suggested that three types of philosophy
are evident in SMEs that cause them to react differently to health and safety. These are:
• Duckers and divers (DD) who do have some basics in place but believe they are exempt
from ‘big site’ legislation. They excel at tokenism in order to falsely demonstrate com-
pliance. They do not think they have the authority to insist on common measures and see
others as responsible for their own liabilities.
• Confident captains (CC) who believe strongly in their own regime of health and safety and
will insist on compliance, but who have a sceptical view of the HSE inspectors who they
believe insist on generic conformance, often at the expense of common sense and safety.
• Ex big site conformists (EBSC) who have a remembered régime which they adapt in a
more conformist way to their requirements, such as inductions, risk assessment and a
more uniform use of PPE. They may make some allowances for the site size. Typically,
they run the larger small sites.
In all cases there is an independence of thought with SMEs that moves away from a slavish
‘make sites safer’ approach to ‘remember it’s dangerous’. This emphasises individual account-
ability. It encourages the PC to make and police simple effective common arrangements
understood and adopted by all. For both approaches there is a need to cover the longer-term
‘invisible’ health issues. This is not a DD approach!
The research identified an in-built resistance to the HSE inspector who requires conform-
ance to rules rather than the application of judgement, experience and commonsense. In
contrast, the CC sees such conformance as following procedures that are unsafe, such as
goggles and ear muffs making workers insensitive to each other and gloves interfering with
the sense of exposure. Also some workers perceive that types of non-compliance such as
wearing trainers rather than safety boots on a roof are safe. The context of smaller sites is
important because workers tend to know each other and thus find it easier to look out for each
other. Statistics show that more accidents occur on smaller sites because of the DD approach,
though some are deemed to be safer where there is a team used to working with each other.
The CC in particular take responsibility for their type of risk assessment and control. This
type of assessment is not seen as written, but as a perception of who has the final say. The
DDs might demonstrate token compliance but are less aware of the implications of H&S and
are thus subject to greater risk if they do not take a leadership role. As always, these judge-
ment are dependent on a single person or a few people to make things work and, when a
major accident occurs, it may be possible to learn from near misses; however, any permanent
harm cannot be undone. The middle line is to consider the barriers to better safety and tackle
them and prove to enforcers you have thought the process through.
Barriers to accepting health and safety rules in their entirety are too much paperwork,
removing common sense, not dealing with context, ignorance of the actual rules and the
reasons for them and a feeling that the rules are made by others who have experience that is
alien to the building experience. Other, more uncomfortable barriers, are pride, habit, devolu-
tion of responsibility, negligence to save time or money, reluctance to sack or upset people so
they will not work for you, unwillingness to take advice from unfamiliar people, weariness
of the subject and the expediency of choosing workers who are willing to carry out tasks in
the cheapest and fastest way. There is an emphasis on learning from trusted others and from
your own mistakes. Training needs to back up belief in your own commonsense and the
knowledge of experienced tradespersons.
Health and safety management

Overall health and safety management, including risk assessment, has been addressed generi-
cally by the HSE.42 The approach reflects total quality management processes and tries to
engender a top management commitment to change to a culture that encourages bottom-up
participation that is motivated towards improvement. This makes review an important ele-
ment. Figure 11.4 indicates the HSE’s framework for successful management.
The key management issues are a basic policy framework, accountable persons, safe
designs, comprehensive planning and organisation, good supervision, segregated or restricted
areas, availability of PPE, careful sequencing of activities that impact on each other, and train-
ing and induction processes together with monitoring and checking. The CDM Regulations
2015 and their Approved Code of Practice (ACOP) are also important for a good project
health and safety management system.
The health and safety management system can be applied to the construction process as follows:
• PLAN Most organisations have a system in place that is an improvement cycle to update
requirements and improve performance. This will be most effective if workers are
involved even at this stage.
• DO Implementation of the system is often harder than developing the system as it depends
on creating a better culture of safe working than many construction projects have been
PLAN Determine policy

What do you want to achieve?
Plan for implementation and measurement
Feedback loop to improve
DO Profile risks and manage limitations

Organise for H&S and involve workers
Implement your plan, avoid/prevent
Supervise to ensure compliance
CHECK Measure performance

Investigate after events
Investigate the causes of accidents
Learn from incidents/near misses
ACT Inspect and review performance

Act on lessons learned to update
Risk assessment
Figure 11.4 A management framework for health and safety43
able to manage. Safe design means providing information about the hazards of speci-
fied materials and the risks involved in applying special methods, e.g. manual handling
and contaminated land or asbestos. Many companies have a target-based approach that
involving everyone being aware.
• CHECK Supervision cannot be total but is connected with knowing what is going on.
One way of dealing with this is to require permits to work for particularly hazardous
activities such as deep excavations, hot work, confined spaces, etc. Other activities will
not need to be supervised, but spot checks will need to occur to ensure competent per-
sons are doing their job and that co-ordination with other activities is working. Certain
inspections like scaffold require competent persons, so training is critical.
• ACT Many companies see the importance of creating better working environments that
help them to move away from reactive measures and complying with regulations to tak-
ing proactive measures.
Health and safety behaviour and culture

Wilde44 uses risk homeostasis theory (RHT) to explain health and safety behaviour – that
is, that people compensate for technological improvements to machinery or the environment
so that they nonetheless experience the same level of risk (target risk); this indicates that it
is not easy to change someone’s risk behaviour without changing their attitude. Familiarity
with a task is likely to induce less caution than the approach to innovation. Safety training
can, for example, have a negative effect on behaviour if it induces more confidence and
therefore a greater willingness to engage in risky behaviour because of supposed familiar-
ity with the outcome and thus a loss of fear. Attitudes, on the other hand, are created and
are associated with, say, a greater willingness to use risk management methods or to avoid
certain things altogether. Their correlation to behaviour can be weak as other factors such
as norms and peer/client pressures will have an influence on behaviour too. However, these
attitudes can be iterative with behaviour and result in significant changes in behaviour over
a period of time if there is motivation. There is a need to create a more enlightened culture
in H&S management so that H&S is not seen as just an extra expense for the company but,
rather, as an essential element of good business that motivates the workforce. It should be
seen as earning money and not leaking it away. The HSE45 claims that culture of safety is
built on the ‘individual and group values, attitudes, perceptions, competencies and patterns
of behaviour that determine the commitment to and the style of proficiency of safety and
confidence in the efficacy of preventative measures’.
Culture
An effective H&S culture involves the whole workforce in the planning phase and ensures
that there is a commitment to the on-going training and updating of all involved. To achieve
this, top management support is required so a budget for a quality improvement approach is
committed. Some cultures try to remove supervision and replace it with personal responsible
behaviour both for assessment and implementation. Some risks must be co-ordinated where
many trades are working together in restricted areas and using common access. Some risks
may be made worse through unsafe design requirements or poor information about the exist-
ing site hazards or the products specified for use.
Risk assessment has been added as a separate phase to planning in order to emphasise the
importance of this activity at the start of all planning activities. It can also be the basis for a con-
struction plan that indicates the methodology for reducing risk. Workers may be resistant to an
H&S culture and assessment of risk; however, measuring and reviewing of performance can be
transformative. Time-limited project work needs to be reviewed at regular intervals and, in par-
ticular, when changes are made to the original design or methods. Construction HSPs for small
sites need to be in proportion. The HSE has produced a simple checklist risk assessment.46
Liability in health and safety law can emerge from a number of angles, but the chief of
these is unsafe design, product safety, negligence in not reducing site worker risk, poor site
organisation, emerging health impacts and public safety.
Attitude
Project managers require the support of top management to resource a training programme
to change attitudes onsite and to manage their supply chains to follow suit. There is a need to
create a culture of awareness in the workforce as a whole so that workers are ‘eyes open’ to the
dangers that exist and have been trained in how to mitigate and avoid harm.47 This is a similar
situation to fewer mountaineering accidents happening because a safety regime is strictly
adhered to and, as a result, climbers are more aware of the risks and prepare accordingly.
Case study 11.6 emphasises the involvement of all workers and the training of supervisors.
Case study 11.6 Pearl Gas to Liquids (GTL) Project

in Qatar
This huge and complex project was carried out by Shell using workers from 50 differ-
ent countries. It set a safety record by encouraging worker reporting of incidents likely
(continued)
(continued)
to cause accidents. In one year it reached a record-breaking 77 million worker hours

without an injury requiring time off work. This culture of doing more than following rules
and stressing getting home safely to your family is central to safety training. Training
included bringing in Kapil Dev, a boyhood hero for many of the workers, who told work-
ers, ‘It’s exactly the same as a cricket team; one weak person can affect the whole
team . . . listening to your supervisor is the same as listening to your captain in cricket.’
Shell also instituted a nine-day leadership training course for supervisors, which over
time 5000 completed.48
Acknowledgement to Shell website
The CDM Regulations49 require workers to engage in promoting and developing measures
to ensure their health, safety and welfare and to check their effectiveness. They must also
participate in worker consultation on matters that may affect their health, safety and welfare.
Construction is never a risk-free environment and achieving zero accidents is an attitude
of mind that works better if people complement each other and work to the same culture.
A safe worker is a knowledgeable worker who wishes to see continuous improvement in best
practice. If the project manager can orchestrate a mutual improvement culture in the supply
chain, then bad habits, short cuts and poor planning will be tackled and a bottom-up culture
of improvement can be encouraged through worker forums and spreading of shared learning.
This may be seen as a Deming-type Plan–Do–Check–Act50 cycle whereby previous actions
are monitored and scrutinised for improvement. Accidents can be seen as a loss of manage-
ment control, but they may also be opportunities to learn from mistakes so that future practice
may be tweaked.
A fresh set of eyes to look at better safety can also help and this may include regular
inspections from all levels of management, including directors and non-production staff.
Case study 11.7 shows the development of a healthy culture.
Case study 11.7 Cultural development of health and safety

On a large general hospital site in a northern town, health and safety was taken seriously
in several ways to build up a culture of mutual support and improvement throughout the
whole workforce. This included:
• Strict rules were set by the managing contractor that all package contractors only
started work after attending a project induction session and were handed a site
map with accessible areas and access ways and safety rules.
• Toolbox talks were given regularly by different personnel to give variety and to
match their interests and expertise. Paid time was allowed for this.
• Management personnel were expected to be involved in touring the site in order to
spot poor H&S practice and to suggest alternative improvements.
• Individuals from a wide range of subcontractors were invited onto the workforce
forum, which was chaired by the health and safety officer, but decisions for
implementation were decided democratically so that ideas from all levels were
valued and democratically evaluated by that same forum.
• Directors of the managing contractor and of the supply chain contractors com-
mitted to inspections at regular intervals and to generating ideas for innovative
safe practice.
Refereeing
The health and safety officer of the PC and other specialists also patrolled the site
operating a traffic light system whereby an amber light warned of a mild infringement/
first offence and a re-induction at the employing contractor’s expense; red identified a
further offence or gross infringement that put others and themselves severely at risk,
the result of which was banishment from working on the project; and green recognised
an example of good practice. Gradually, a points system for individual and contractor
award and recognition was built up.
Acknowledgement to Skanska staff 51
The example in Case study 11.7 shows a multiple approach on several fronts to involve
all the people involved in the contract together. In order to ensure improvements are yielding
results, it is necessary to use performance standards to measure the progress made. These are
likely to be measured on a project in terms of man hours worked without an accident or a dan-
gerous incident report. This has some benefit if it is compared with other exemplary projects
where there is a good record because it can induce a competitive spirit which puts pressure
on more poorly-performing contractors to up their game. Other KPIs which might impress
future clients are zero serious accidents per 100,000 people. This can be used corporately to
cumulate a company’s record as better than average with the national statistics. Public coun-
ters can record accident free man hours.
Behavioural health and safety

Other company cultures are to develop behavioural challenges. These contrast with ref-
ereeing and use a reasoning approach for smaller infringements, looking at impact after
unsafe incidents that are spotted or reported to challenge the possible outcome if things
had gone wrong personally, such as personal injury on family life, or on career if others
had been severely injured or killed in the incident, and asking, ‘Is it worth it?’ This has
often proved effective in amending behaviour when used intensively and consistently
so that a major proportion of the workforce is challenged. Behavioural methods look
to prevention, requiring the changing of ingrained bad habits using intensive training
and reinforcement of safe habits. It requires a consistent awareness-raising by managers
and supervisors to communicate the impacts of injuries and poor health on their families
and friends endangered on site by careless and non-thinking habits. This is illustrated in
Case study 11.8.
Case study 11.8 Motivation for personal safety

One campaign concentrated on how accidents and illness impacted on others. It asked
all workers to post on a board at the site entrance pictures of something that was impor-
tant to them and a reason why they wanted to return home each day.52 Another used
visual method statements to encourage interactivity with the workers in terms of making
improvements.53
Acknowledgement to Considerate Constructor Best Practice Hub
A third culture is ‘don’t walk by’ combined with the idea of zero accidents, to challenge
apathy when rules are broken or there is an unsafe environment. This philosophy encour-
ages all workers, and the public and visitors, to report unsafe environments and incidents in
a no-blame way, so that accidents are prevented by taking immediate avoiding action. All
incidents are recorded and analysis done as to the cause to find common ways of avoiding
future incidents.
The CIOB54 has also run a campaign akin to the Considerate Constructors scheme
whereby visitors are encouraged to report untidy sites where housekeeping is poor and to
name and shame the company and management apathy in not keeping order and control on
the site. It argues that a clean site is a safe site and also instils confidence in workers and
visitors for their own safety and in working safely. The CSCS scheme encourages all, even
regular site visitors, to undergo a competence test and to carry a card to prove their knowl-
edge. The CSCS scheme depends on getting through a health and safety test and attending
an induction course before working onsite.
Examples of poor behaviour are cutting corners to save time, poor ergonomic factors in the
design of equipment and access, out of date ‘accepted practice’, supervisors’ reinforcement
of at-risk behaviour, low perceptions of risk in certain tasks and the influence on new work-
ers of experienced workers who take more risks. Behavioural safety works through a group
view of acceptable risk reductions which are constantly reviewed and supervised carefully.
Management drives behavioural safety in a site-wide standard of continuing improvement
and foundational site rules and training, such as:
• tidy sites
• automatic wearing of full PPE
• exclusion areas planned and set up according to daily activity on a formal permit basis
• good practice systems aired in toolbox talks
• health surveillance
• campaigns to provide motivation.
The language of behavioural safety is that there is always a better way and you are the answer
to a safe solution. Management is involved by encouraging workers to take responsibility
into their own hands and to report unsafe incidents. Supervisors through worker reports have
an obligation to stop work if they feel they are unsafe.
Technology can help to improve site safety. Drones can be used to do high level surveys or
site inspections and to quickly spot new site hazards at the beginning of the day. Exoskeletons
can be used to power normal lifting tasks or to pace repetitive actions by reducing the strain
and twist of manual handling. Virtual reality can be used to train personnel interactively with
direct experience of common scenarios. Two examples might be operator training or confined
space scenarios. Smart clothing can be used to monitor health signs in challenging work
conditions. In refurbishment sites, sensors can be mounted throughout the site to monitor
exposure levels to unsafe emissions.
Product safety and liability

The European position on product safety is related to health and safety and the damage caused
by product defects. Accordingly, a construction product safety directive55 was launched in
1991, which emerged from the need to consider the complexity of liability caused by the
interactions of products fixed in the building as a whole. The core of the directive refers to the
six ‘essential requirements’ to ensure the product is fit for the purpose intended when fixed
in the building structure. These are;
• mechanical resistance and stability

• safety in the case of fire
• hygiene, health and the impact on the environment
• safety in use
• protection from noise
• energy, economy and heat retention.
These requirements carry a broad health and safety brief in all six of the requirements for
product quality and put an onus on the manufacturer to incorporate an auditable ‘factory pro-
duction control’ quality assurance (QA) system or compliance with a harmonised standard,
enabling the issue of a conformance certificate. CE labelling is now compulsory for products
with a harmonised European Standard (hEN) or a European Technical Assessment (ETA).
Instructions to encourage correct use must accompany products when they arrive on the
construction site. For example, a pre-cast concrete lintel with two reinforcement bars in the
bottom must be labelled to identify its top and also its safe load-bearing conditions. All trade
with the EU must comply.
Harmonised standards are part of the drive to use ISO or European (EN) standards rather
than national ones. This tries to deal with the hidden problem of products with different stand-
ards of safety moving round the EU as well as encouraging the headline ‘free movement of
goods’. Declarations of performance must be published on company websites. Case Study 11.9
indicates how product safety works.
Case study 11.9 Door set compliance

The performance of a BS476 Part 22 one-hour fire door is well understood in the UK but
not in Germany. The harmonised standard is BSEN 1634-1:2000, conforming Europe-
wide for fire resistance. The internal hinge edge of the door carries a label certifying its
compliance as FD60 and giving the manufacturer’s test certificate number. The test is
invalid if the door is not installed to the manufacturer’s instructions.56 The safety issue
here is expected performance; that is, keeping the fire out for one hour. With freedom of
trade in the EU, the hEN or ETA provides confidence in the safety of foreign products.
Risk assessing health and safety
Risk assessment is a fundamental concept present, for example, in all major occupational
health and safety legislation and ISO 45001. It is important to define the difference between
hazard, harm and significant risk.
A hazard is the potential for harm, but the context and the outcome are not defined, for
example the use of hot bitumen. If this is used by competent people, who have proper protec-
tion and the bitumen is not accessible to others, this is unlikely to be a significant risk. If it
is being used on the roof in windy weather over a busy road many significant risks emerge.
Harm refers to an injury or longer-term health problem. For example, the bitumen might
scald skin, cause a health problem through breathing the fumes or get overheated and cause
a fire that might put others in danger.
A significant risk is the likelihood of harm occurring and follows all the possible harms
inherent in a hazard by reference to the severity and probability of that harm occurring. This
will be affected by the context; for example, being near to many workers or few, nearer to
the public who are more vulnerable, carried out unsupervised or at height or in bad weather
will change the rating of severity and impact. It is these conditions and context that should be
addressed as well as the inherent harm of the product or action.
For this reason, the risk assessment should not be generic and transferred from site to site,
but if possible reference should be made to the methods that are uniquely used by the work-
men and adjusted for conditions of work on a dynamic basis.
The risk assessment process consists of three steps:
• identify the hazards

• assess their significance
• institute control measures to reduce significant risks.
Implement these arrangements by:
• setting up a written plan in order to establish the procedures in juxtaposition to other

work
• train personnel and establish methodology
• organise the staff and assign responsibilities and communicate the information to all
those affected
• monitor and control, making sure the methodology is understood, works and is being
carried out
• review risk control methodology and procedures regularly to make sure they are relevant
and effective.
Risk controls
Control of risks is very similar to the system described in Chapter 10, but more focused on
pure risk because it is unacceptable to injure or kill people or make them ill. However, practi-
cally it is necessary to assess the risks and prioritise them in relation to:
• Probability – how likely is harm?

• Impact – if an accident happens, what is the size and seriousness of the injury and num-
ber of people hurt or killed? Loss and death are more serious than injury and permanent
maiming is more serious than days off following injury. Property damage is less signifi-
cant than both.
• Frequency – how often could it happen?
Frequency and probability are not the same but are often merged; for example, trailing leads
are inevitable on most sites but the probability of tripping is dependent on their route. Merging
must occur only with full awareness of both frequency and probability so the description of
risk is important. Managing a zone with conflicting risks make sense. This could be measured
as an overall impact by using a grid as shown in Figure 11.5.
In a hierarchy of control, risk may be eliminated, reduced, given overall protection against
or addressed by providing personal protective equipment, in this order. It may be possible
to eliminate a risk altogether by, for example, eliminating the use of a particular hazardous
material or redesigning or banning certain methods of working, but the alternative material
or method is also likely to create a level of risk that will need to be assessed. If new materials
or untried methods are proposed, this is almost certainly the case. One contractor’s system
advocates a deeper hierarchy that resonates with the different risk controls of elimination,
substitution, enclosure of hazard, exclusion zone, permit to work, remove, reduce exposure
time, training, safe system of work and personal protective equipment.
The key objective is to reduce significant risks to acceptable levels and to be aware of
the residual risk in managing the workplace. Acceptable risk may also vary with improved
knowledge and technology and so the control measures should be reviewed for effective-
ness. It is perhaps motivational to work towards zero accidents, and then complacency is
controlled by a policy of continuous improvement. A residual risk needs to be assigned to a
responsible person to ensure it is managed and to ensure it stays at acceptable levels.
Those at risk are those carrying out the work, those who work with them (other workers
and managers), and vulnerable groups such as visitors to the workplace who are less famil-
iar with the workplace dangers, young people who have less experience, trespassers on the
construction site who already are taking extra risks, the general public who are unaware and
foreign or inexperienced workers who have less language awareness. The access to risk of
each of these parties needs to be considered separately and not lumped together if proper
controls are to be devised. For example, holes that are fenced, but not completely covered are
likely to be a risk to young trespassers but not to workers; signs that give written warnings
may be misunderstood by immigrant workers newly arrived.
Normally any risk above (2) in Figure 11.5 would have a risk assessment. Higher rat-
ings are dealt with as a matter of some urgency with some residual protection given. For
example, a nuclear risk would be seldom and serious so, although only a (3) on this system,
it would still be necessary to deal with it urgently. A cable across a doorway would be low
severity and a high tripping probability. It should not be left for long as many are exposed to
Impact
Probability
low moderate serious
seldom 1 2 3
occasional 2 4 5
frequent 3 5 6
Figure 11.5 Risk priority grid

this risk and it becomes a critical nuisance and harm. The graph measuring accidents against
number of people onsite is useful in picking up priority actions. The numbers of people at
risk are partly subsumed into the probability axis, but the risk is heightened if the risk was
affecting an unsuspecting public. More public exposure – neighbouring workers/passing
public – increases the frequency and severity of risk as these people are unprotected from
noise or dust as well as unaware of risks. Case study 11.10 describes a risk system.
Case study 11.10 A risk assessment pro forma

A contractor is likely to develop their own risk assessment systems, which they feel
comfortable with and diagram Figure 11.6 is part of a pro-forma risk assessment sheet.
A separate sheet is used for each activity or system onsite. Critically, there is a qualified
person to write out the assessment and take responsibility for implementation. In order
to ensure supervision is in place for hazardous processes, a ‘permit to work’ certificate
needs to be issued.
The graphical effect is useful in picking up priority actions. Probability scores range from
‘unlikely’ (2) to ‘likely to happen at any moment’ (10). The scores of potential outcomes
range from ‘minor injury’ (2) to ‘multiple fatality’ (10). A description of all the actual risks
and proposed measures to reduce them to an acceptable level, length of exposure and
the category of people at risk are separately identified on a risk assessment sheet. The
risk would be heightened if the risk was affecting young people or an unsuspecting public.
For example, in the case of tower crane operations an accident’s outcome are likely
to be classified as serious injuries because of the height and wide exposure to falling
objects of employees and possibly the public, giving a score of 6. Probability of ‘likely
to happen occasionally’ would give a score of 6 (dotted line in Figure 11.6), making it a
medium risk. This score would catalyse actions to reduce this risk to at least the lower
level shown in the diagram.
In this case actions to work on reducing the probability to 4, which is improbable or
unlikely, brings the risk down to the low level shown. This could be achieved by having
strict protocols to supervise loading, inspect and test the crane regularly and exclude
people from working under loads. It would also be illegal to slew over external property
and highways whilst loaded, because the general public are not inducted into looking
out for site dangers, so reducing impact to 4. Falling cranes have increased statistically
(Case study 11.11) and this should inform testing procedures and driver care.
10
Hi
M gh
Residual risk after 8 ed -le
ium ve
mitigating action -le l ris
6 Lo k
ve
w- lr
Probability 4 lev isk
In
sig el
nifi
ris
2 k
ca
nt
0
0 2 4 6 8 10
Impact
Figure 11.6 Alternative risk priority grid

Research has indicated that many accidents take place because of two normal, but
un-coordinated activities, clashing and then creating a hazard. Additional attention is
thus needed to measure overall site co-ordination and any likely conflicting activities –
in Case study 11.10 the use of a mobile crane to deliver material to a fragile roof would
cause additional hazards. Any changes to the programme or the original intentions also
require further risk assessment. For example, a change of crane model may affect the
exclusion zones. Other things that might be exacerbated are unpredictability, length of
exposure, the nature of the risk and the nature of the controls.
Accident prevention
Accident prevention is a primary tool for management effectiveness. The statistics indi-
cate, however, limited success in reducing accidents – so what are the main principles?
The HSE suggests that management action could have prevented seven out of 10 con-
struction site deaths. Accident prevention arises from the focused application of safety
measures to areas where accidents happen regularly. As discussed earlier, injuries and
fatalities from falling or being hit by falling objects consistently account for 5060 per cent
of the total. Management and lack of organisation and planning have consistently been
blamed by reports on health and safety. Successful accident prevention leads to less harm,
such as trips rather than falls.
The strategic approach to prevention mainly espoused by the HSE57 is to connect good busi-
ness with safe business. The system depends on an adequate culture and commitment from top
management to the strategic importance of health and safety systems. Some companies have
committed the necessary resources up front and reaped longer-term business benefits by way
of reducing costs and gaining work on the basis of their reputation for providing a safe work-
ing environment. Most clients do not want their reputations sullied by accidents.
It is also important to learn lessons for the future by investigating the cause and effect of
other accidents and near misses. In particular, individual companies can learn a lot from their
own near misses and accidents. The following are some major accident reports identifying
particular problems more universally. The incidents described in Case study 11.11 point to
key management failures identified by investigations into major accidents.
Case study 11.11 Major disaster reports

New Zealand mine explosion58 An underground coal mine exploded on New Zealand’s
South Island, instantly killing 29 men. The Royal Commission on the Pike River Coal
Mine Tragedy reported that, ‘there was no overall board strategy that set out the
company vision. . . . The health and safety management system was never audited oth-
erwise deficiencies would have been identified. . . . There were too many gaps between
the actual standards and the procedures laid down.
Worldwide crane accidents Between 2000 and 2009, there were 872 tower crane
accidents worldwide causing over 668 deaths. Of these, 42 per cent occurred during
the erection and dismantling cycles and 27 per cent in operation. McGettigan59 cites
some key principles to adhere to when using cranes onsite: – provide thorough training,
(continued)
(continued)
plan carefully, do not allow short cuts, do not fully load the assist crane on dismantling,
and use independent oversight. The HSE investigated 86 incidents worldwide60 and
found that 34 per cent happened during erection, dismantling and extending of cranes,
a further 18 per cent were due to extreme weather and 33 per cent were attributable to
causes unknown.
Ferry disaster The Herald of Free Enterprise sank just after leaving port in Zeebrugge
resulting in a huge loss of life because the ferry doors were not shut properly. According
to the Sheen Report, management, with its absence of safety policies, was ‘infected
with a disease of sloppiness’.61
Underground fire Fire broke out and spread rapidly at King’s Cross underground
station, killing 31 people and injuring a further 60. The fire was the result of someone
discarding a cigarette butt on an escalator, which then ignited the rubbish beneath.
The Fennell Report stated that, ‘London Transport had no system . . . to identify and
promptly eliminate hazards’.62
Oil platform explosion A routine maintenance error led to the deaths of 169 of the
229 people onboard a North Sea drilling platform, the Piper Alpha. The Cullen Report
on the disaster identified, ‘significant flaws in Occidental’s management’.63
Train crash A train crash at Clapham Junction was caused by a signalling fault and
resulted in 35 fatalities and 415 injuries. The Hidden Report concluded that a ‘frighten-
ing lack of organisation and management’ existed.64
The common causes that keep coming up in these reports are not lack of strategies but,
rather, poor implementation and management of H&S procedures in terms of training, audit-
ing systems and their effective application. This situation resulted in limited risk awareness
and lessons were therefore learned too late.
Active and reactive measurement

The HSE distinguishes between active and reactive measurement. One of the key aspects of
active measurement is that monitoring performance allows for preventative action. Reactive
measurement is normally done using KPIs based on past measurement of accidents, ill
health, close misses and other evidence such as past accident reports, which inform future
planning.
Active measurement concerns the standard of planning and organisational procedures
based on best practice and collation of lessons learned from failures. It is based on a test
of manager and worker knowledge of safe practices and regular health and safety training
days, so that development in competence can be assessed. Evidence is demonstrated by the
improvement of objectives and targets for accident prevention. It must include the training
of trades personnel and managers to ensure they are updated on current technology. The
initial training to comply with schemes such as the Construction Skills Certification Scheme
(CSCS) in the UK requires a certain base level of health and safety relevant to the particular
trade and level of supervision being practised. Many larger sites in the UK will not allow
workers onsite without CSCS certification or its equivalent.
An important point identified by the HSE is that a good track record in health and safety
does not necessarily mean that a framework for avoidance in the future is in place. Typical
activities in active monitoring equate to preventative maintenance by the use of inspections
and replacement of components before failure, e.g. cranes. A system that is active provides
continuous updating to the training and uses toolbox talks and other daily or weekly health
and safety activities.
Using causal factors to improve H&S

Causal factors may be applied to an accident or serious incident investigation in order to pro-
vide preventative information. This is common in industry in examining major disasters such
as those listed in Case study 11.11. Factors may be regular, such as a missing action in main-
tenance, or exceptional, such as a unique combination of two factors happening together. It
is useful for construction projects to study a range of incident and accident reports to identify
common causes so as to mitigate for them in advance.
Design: HSE65 research into causal factors of construction confirms the particularly strong
connection of accidents with poor designer awareness of their impact on construction health
and safety. It concluded that, of 100 accidents investigated, 46 per cent were due to per-
manent design issues and a further 36 per cent resulted from lack of attention to design in
temporary structures.
Construction: Two of the most common hazards are the route to the ‘workface’ and
handling materials. The HSE research also suggested that there are many generic site hazards
that will continue to occur because of common poor practice onsite that needs to be attended
to before design changes will have a safety benefit. Originating influences such as poor risk
management were identified as occurring in 94 per cent of the accidents in spite of CDM
responsibilities. However, it found little correlation of accidents with poor weather, as was
generally assumed. This provides conclusions useful for better risk management, such as the
provision of protected routes to and within the building. It also recommended the inclusion
of health and safety items in the bill of quantities (BOQ) that were considered to be key ele-
ments of gaining a safer design.
A later study, by Donaghy,66 concluded that common causes of accidents and injury are
poor experience, information and advice deficiencies, poor risk perception, rescheduling of
work without planning, equipment operability, space, poor PPE use and tools that do not suit
the task and the user. Most of these accidents are preventable.
A prevention focus group study by the HSE67 on falls from height (a major accident type
in construction) estimated that 50 per cent of accidents could be prevented by the application
of risk control measures to just two areas out of seven considered: design process (30 per
cent) and compliance to safety measures onsite (20 per cent). It was found that supervisors
tended not to reprimand experienced workers about poor safety practices, either because they
believed these people could look after themselves or as a result of lack of confidence.
The review of peer influence on construction sites revealed an ‘it won’t happen to me’ atti-
tude among experienced workers, which resulted in failure to assess the scale of risks even
though they were well aware of the hazards. Two key accident prevention measures identi-
fied were that managers and supervisors should lead by example and zero tolerance should be
applied to ignoring of safety measures. A gap exists in the communication process whereby
many accidents that do befall experienced workers happen because they are too confident of
their ability and thus not alert to unusual combinations of activities or circumstances that can
increase the risks associated with a simple job exponentially.
Good practice
Good practice indicates that high-risk operations such as scaffold and lifting equipment are
inspected daily before use by a manager who has been trained to inspect the basics. Tags are
often used to indicate the date and time of inspections. Designed scaffold requires periodic
specialist inspection by the designer and/or specialist scaffolder. A more extensive check is
signed off in a weekly register. Mobile plant and tower cranes require consistent preventative
maintenance and regular inspection. Protection of excavations need to be supervised continu-
ously by using bank persons, designing side supports and issuing permits for work within the
excavations so that people are accompanied and have proper access and help in unexpected
collapse. Other confined spaces, such as drains, also need to be accessed by permit only so
that a ‘surface worker’ can be in attendance. Lifting and manual handling operations all need
to be risk assessed as does working with hazardous substances. Hot work must only be per-
mitted if proper fire precautions are in place. Low risks are dealt with by general inspections.
Building up a knowledgeable culture in which workers are aware of common risks and report
them helps the project manager to exercise far-reaching control.
Reactive measurement and recording can be accused of being too little, too late. However,
recording and analysis of minor injuries and near misses can identify patterns and specific
areas for improvement that can inform proactive action. For example, consistent small injuries
in one trade may point to a shortfall in training, a poor attitude to safe working or inadequate
supervision. The HSE points out that an observant approach on the behalf of workers and a
management response that does not apportion blame encourages open and honest commu-
nication so that improvements are constantly carried out and those affected receive relevant
training. Observation can pinpoint the unsafe and unhealthy parts of a work process.
In terms of investigation, underlying causes are important and these can occur in the:
• person (poor attitudes, behaviour and knowledge)

• organisation (insufficient procedures to ensure a safe working place)
• task (inherent danger in the process or materials/components).
A risk assessment should not be generic; rather, it needs to identify the context of the task with
the person doing it. The question is not what actually happened but what is the worst situation
that could have happened? It also uses feedback from accidents and near misses to improve
processes before further accidents or injuries occur. The influence of company practice and
culture are important here. Case study 11.12 analyses a reactive model for prevention.
Case study 11.12 Staircase collapse (hypothetical)

This is a causal analysis of a near miss.
An escalator with a cantilever dog-leg was to be installed from the first floor of a multi-
storey atrium to the ground. On the way down it passed through a free-standing media
wall providing electronic advertisements to escalator users, as shown in Figure 11.7.
Initially, the escalator was to be made in one piece and a risk assessment deter-
mined a suitable method statement for the fitters. In the event, the escalator was
delivered late and redesigned in pieces in order to get it through existing doors and had
to be bolted together in situ. Cranage and frames were used to lift and support the parts
Third floor
Media screen
Dog-leg
cantilever
escalator Floor and glass
of atrium
Figure 11.7 Diagrammatic of staircase
until they were completely bolted together. At completion, the frame was taken away
and the equipment commissioned by the manufacturer. During its first major usage the
assembly slumped out of line and hit the media screen, which crumpled and could have
hit escalator passengers. The escalator was immediately shut down. It appeared the
redesign of the installation had failed.
The subsequent investigation indicated the shearing of two bolts holding two of the
sections together. These were not the specified friction bolts or tightened to the right
toque. Potential dangers were the complete collapse of a full escalator with subse-
quent injury or death. The accident was the result of a workmanship problem, but with
a narrow margin of safety on the redesign. The risk assessment was carried out by the
installer, who was a subcontractor to the designer. They were unaware of the design
parameters and a hurried change in the design to accommodate the access restrictions
of a nearly finished building had weakened the design safety checks and created a
shortfall. The following questions needed to be asked:
• What can be learned from this near miss incident?

• Who was primarily to blame?
• Should anyone have been prosecuted? Who?
• How could this have been avoided?
The active model is a feed-forward model for prevention that uses both types of meas-
urement and aims to prevent accidents by planning ahead and encouraging self-supervision
rather than intervention. The culture of improvement is foremost. Case study 11.13 describes
an active model.
Case study 11.13 Plasterboard fixing improvements

An example of improvement by observation is the HSE study68 into the manual handling
of plasterboard where there is sustained heavy lifting due to piecework bonus, loading
(continued)
(continued)
out in confined spaces (e.g. upstairs and around landings), awkward extended neck
and body positions in cutting and supporting the board and the repetitive action of ham-
mering nails to fix the boards. It particularly looked at housing practice where there are
tightly limited spaces. Evidence showed that plasterers were among the most vulner-
able to musco-skeletal disorders (MSDs).
The research examined the suitability of manual handling aids and the use of two
people to work together to minimise stretching and weight carried. It also suggested
ways to improve posture when cutting and supporting boards by avoiding awkward
bending. Other suggestions were to avoid awkward loading-up journeys by, for exam-
ple, loading through windows off scaffolds or cutting slots through floorboards to avoid
manoeuvring boards around staircases. Each trade should establish and adhere to its
own standards of good practice.
Inspection and supervision: human factors

Traditionally, workplace inspections are carried out by those who manage the site and are
accountable for health and safety plans. They include mandatory scaffold and excavation
support inspections, PPE checks, vehicle checks and formal investigations after things have
gone wrong. These inspections place the onus on a management-led system whereby the bur-
den of proof lies heavily on relevant competence or experience and time available to check.
Due to other commitments it can either end up in the hands of trainees or become a reactive
rather than preventative activity. To improve inspection:
• Pull in a wider view on safety, including experts (fire officers, insurance assessors) and
members of the workforce (trade union or safety committee representation).
• Establish broader accountability of risk assessment so that authors also inspect.
• Take a general view and form an impression of the efficiency and openness of the imple-
mentation of the system – is it clean and efficient in appearance? What are the risk
assessments like? Are they accessible?
• Make specific third-party inspections and send reports to management and copies to
senior managers with recommendations.
Workplace control and improvement
Communications, information and training

One of the most difficult things to achieve is a fail-safe communication system that provides
a clear understanding of the requirements of the health and safety plan to the whole supply
chain. This must be communicated to supervisors and their workforces. It will be achieved
through co-ordination meetings and regular workforce briefings, posters and signs. Posters
and signs are more effective if they use graphics so that migrant workers can also access
the information. Communications are also about ensuring that amendments made to method
statements to suit design changes are broadly shared with all affected parties.
Basic information about evacuation and site-wide hazards and procedures is delivered
through induction. Site rules need to ensure a stable environment and be sharply focused so
that they are perceived to be relevant. Different employees will have different training needs
and access should depend on competency. The requirements of different companies’ health and
safety systems and specific client requests for health and safety features need to be co-ordinated.
Consultation and informal employee reporting is an upward channel of communication,
which needs to be received gratefully if a system of improvement is to be maintained and
new systems introduced. Co-ordination between the subcontractors is a critical aspect of
workplace health and safety.
Workplace improvement
A high-quality workplace allows every pair of eyes to inspect but also encourages ownership
of health and safety and the establishment of a responsible workforce as a result of peer pres-
sure. This means clearly delineating responsibility for health and safety during a sequence of
different contractors in a work area, which involves:
• a formal handover between different trades working in an area

• a clear connection between method statements so that work overlaps are programmed to
take this into account
• a quality improvement attitude that includes training in health and safety planning
• a drive towards self-supervision to equal or exceed project standards.
The HSE discusses the benefits of self-regulation whereby workers take responsibility for
and pride in their work. This, in turn, will offset the cost of close supervision against the cost
of training. In a project with many different employers, it will be necessary for all contractors
to buy into the self-improvement approach otherwise the workplace handovers will break
down around the weak link. This will need to be driven by the project manager and built into
the contracts of specialist contractors. The HSE points out that there are certain underlying
beliefs that must be understood to make this culture possible. These are:
• all accidents, ill health and incidents are preventable

• all levels of the site organisation are co-operatively involved in reducing health and
safety risks
• trade competence includes safe working risk assessments
• health and safety is of equal importance to production and quality
• competence in health and safety is an essential part of managing construction.
In this context there is a much more fundamental preparation stage than a remote health and
safety plan. Inspection and supervision are shared and discussed and workforce representatives
take a proactive stance with management. The system is not unsupervised because building
up experience is important and training needs to be on-going, but it does set in place a wider
accountability. Teamwork can be important in respecting what can be learnt from others.
Protecting the public

The general public remain a very vulnerable feature of construction projects, particularly if
they are working near or passing close to the site boundaries. They are not issued with PPE,
inducted or trained to deal with the particular hazards of construction and so public space
should be heavily protected and site boundary control in place to exclude unauthorised entry.
They are in particular danger from undermining of the foundations of adjacent occupied
buildings, falling materials, over-sailing loads from crane offloading and lifting, noise, dust
and noxious fumes and explosions. Deliveries for building materials will increase traffic and
provide extra hazards, especially where they are offloaded in the street. Fires in unfinished
buildings, explosions and collapsing building and scaffold structures create major hazards
beyond the site boundaries. Any scaffold on to the street needs special attention to avoid
access by children and others and to make walking under it or around it safe. A number of
scaffold accidents have caused injury and death to passers-by. Road works that are tempo-
rary and are in or adjacent to pavements or public highways need to be safe in use, which
means effective barriers, noise attenuation and control of deliveries, traffic flow and speed.
Excluding traffic completely is not smart and transfers risks in terms of congestion elsewhere,
so overnight work with temporary road closure or shifts is better for public safety. Contractors
are also liable for accidents occurring as a result of trespass onto the site. Trespassers risk fall-
ing off structures or into excavations and these should be properly protected for all.
What is the correct response to protecting the public? The key measures to reduce risk to
the public to acceptable levels are:
• Providing protection in the form of an effective barrier around the site and any other
public areas such as road works and drainage connections, including security guards in
busy areas. Use scaffold fans or gantries to protect from falling debris.
• Supplying information about the hours of work, programme length and activities, and
irreducible levels of noise or dust.
• Providing warning signs and information boards to explain the danger and viewing win-
dows to satisfy curiosity and limit trespass.
• Cutting down pollution levels, e.g. dust and emissions; in particular, exclude any likely
to cause adverse biological or allergic reactions.
• Controlling noise because the public have no PPE; use exclusion zones fairly and limit
hours.
• Controlling toxic or hazardous materials by storing them securely and delivering them safely.
• Agreeing a traffic plan with the local authority for safe egress and access for deliveries
and providing bank persons for reversing vehicles.
• Controlling lifting and limiting any crane slew to site air space except under agreed con-
trol procedures.
• Setting lights on tall temporary structures.
• Excluding public access without protective equipment and ensuring that signs warning
against access are visible.
• Using measures based on total protection, considerate contracting, providing informa-
tion and reducing nuisance, including keeping the site and its environs tidy.
• Ensuring that work is carried out to limit exposure to the public.
• Keeping neighbours well-informed of what is going on and explaining the measures
taken to minimise exposure to the public.
Conclusion
Health and safety regulations have proliferated in recent years, throughout the world, but
statistics have remained stubbornly high and headline incidents cause us to question our
improved systems for site work and later occupation. Because of this, health and safety
training on construction sites is a substantial investment and most large contractors require
evidence of training to a minimum competency for managers and workers. It is however
easy to go through the motions of paperwork and inspections and not develop a rigorous
culture of awareness that changes the behaviour of the entire workforce whereby all work-
ers need to report poor practice and commit to preventing accidents in the first place. This
is difficult given the fragmented nature of the workforce and the many subcontractors in the
supply chain making consistent communications difficult. The principal contractor needs
to take a strong lead in creating a common culture. This culture is communicated through
induction underpinned by specific training and organisation of the work area. Onsite, this is
compounded by the problem of macho and complacent attitudes of workers who believe that
‘it won’t happen to me’, and by supervisors and managers who turn a blind eye to shortcuts
by specialist trades who have the experience to recognise the hazards, but have not entered
the culture of assessing the scale of the risk.
Reports have indicated that many accidents are due to design failures and hidden infor-
mation and these can especially impact on the health and safety of later occupants. The
CDM Regulations provide an integrated framework for the management of construction
project safety, by formally including the client and the designer in the traditional contractor
role in health and safety management and introducing the idea of co-ordination. This rightly
integrates the process throughout the project life cycle from inception to completion. It has
much potential in making sure that health and safety risks are assessed at all stages of the
project cycle and resources are priced adequately in tender prices so that cheapest price is
the least safe. Clients have also been given ultimate accountability. Implementing improved
systems is critical to motivation. Where some organisations do not understand or apply risk
management co-operatively with others and enforce it in an integrated way between client,
design, construction team and facilities management, the outputs will be compromised by
the weakest link.
Some would argue that SMEs want a more prescriptive system where generic stand-
ards become well known and can be used in a directed way to ensure compliance; others
believe that self-regulation is a better way of owning the problem and developing universal
awareness and accountability. As SMEs comprise a major proportion of projects and sub-
contractor organisations on large projects, there is a case for greater prescription. However,
in a prescriptive culture the tendency is to meet minimum standards rather than encourage
continuous improvement. The CHAS accreditation system required by local authorities is a
prequalification measure for SMEs working on smaller projects and recognises training and
an organisational commitment to health and safety where flexibility is important.
Worker engagement is poor in construction due to the fragmented nature of the work-
force and the limited trade union representation. Best practice engagement has advantages in
reducing accidents, especially where workers can be part of the risk assessment and decision
making. The benefit of this is more ownership and integrated feedback by the project work-
force in what is already perceived to be a dangerous environment. Worker committees or
representatives need to be given power to stop unsafe work, change things and be listened to
seriously. In terms of encouraging self-supervision, workers need to be made more account-
able for inspecting their workplace.
The best practice movement is a way of engendering a sense of pride and prompting com-
petition to reach higher standards and to name and shame those who do not. It can encourage
better safety standards and help produce this culture of continuous improvement. This could
work if clients recognise their role in insisting on certain standards of qualifying compliance,
such as the compulsory use of competency cards or pre-site training that evidence minimum
standards of worker and site management competence. Top management commitment to safe
working and an auditable safety management system that monitors and ensures implementa-
tion aids in the development of a preventative safety culture for all. If these requirements are
not part of the selection process in competitive tendering, those who take short cuts on health
and safety will initially have an unfair financial advantage in a competitive market. However,
liability and negligence may be seen as good enforcement tools, but in practice poor quality
and health and safety have eaten up profits and are not seen to be good business. Attention
to management systems is critical to avoid waste in the system and even future loss in an
environment where litigation may become more commonplace.
Notes
1 IS0 45001:2018 Occupational Health and Safety Management Systems, which is based on other
leading standards and ILO OSH guidelines.
2 Hackett J. (2018) Quote from HSE Chair in ‘What is Competence?’. Available online at: http://
www.hse.gov.uk/competence/what-is-competence.htm (accessed 14 July 2018).
3 International Labour Organization (ILO) (2018) Safety and Health at Work. Available online at:
http://www.ilo.org/global/topics/safety-and-health-at-work/lang-en/index.htm (accessed 18 June
2018).
4 Xuanwen S. D and Goldenhar L. M. (2016) Workplace Safety and Health: Perceptions of
Construction Workers. CPWR Quarterly Data Report, 3rd Quarter. Silver Spring, MD, CPWR.
5 Health and Safety Executive (HSE) (2018) Non-fatal Injuries. Available online at: http://www.hse.
gov.uk/statistics/causinj/index.htm (accessed 11 July 2018).
6 Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR).
Available online at: http://www.hse.gov.uk/riddor (accessed 7 February 2018).
7 HSE (2018), Figure 10.
9 HSE (2017) Health and Safety Statistics for the Construction Sector in Great Britain. Available
online at: http://www.hse.gov.uk/statistics/industry/construction.pdf and http://www.hse.gov.uk/
statistics/industry/construction/construction.pdf (accessed 7 February 2018), p. 13. These relate to
self-reported figures.
10 HSE (2017) Asbestos-related Diseases. Available online at: http://www.hse.gov.uk/Statistics/causdis/
asbestos-related-disease.pdf (accessed 7 February 2018), p. 2.
11 Tye and Pearson (1974/75) Management Safety Manual. British Safety Council 5 Star Health and
Safety Management System. London, HSE.
12 Based on Tye and Pearson (1975).
13 Source based on APAU (1997). Successful Health and Safety Management. 2nd edn. London, HSE
Publications.
14 CIOB (2006) Occupational Stress in the Construction Industry. Available online at: https://www.
ciob.org/sites/default/files/CIOB%20research%20-%20Occupational%20Stress%20in%20the%20
Construction%20Industry%202006_0.pdf (accessed 28 December 2018).
15 UCATT (2016) UCATT finds High Levels of Stress and Mental Illness among Construction
Workers. Available online at: https://www.ucatt.org.uk/ucatt-finds-high-levels-stress-and-mental-
illness-among-construction-workers (accessed 17 July 2018).
16 Groetch D. (2003) History and Evolution of Construction Safety Regulations.
17 Abubakar U. (2015) An Overview of the Occupational Safety and Health Systems of Nigeria,
UK, USA, Australia and China: Nigeria Being the Reference Case Study. American Journal of
Educational Research, 3(11), 1350–1358.
18 Fewings P. and Laycock P. (1994). Health and Safety in the Workplace. University of Northumbria
Built Environment Group, pp. 8–10. Twenty-six safety-related directives were adopted in EU coun-
tries in the period 1986–1994 alone. Subsequent to this were regular updatings, e.g. the introduction
of CDM Regulations 1998, updated 2007 and 2015.
19 HSE (2018) Risk assessment and Policy Template. Available online at: http://www.hse.gov.uk/
simple-health-safety/write.htm (accessed 17 July 2018).
0 Fewings and Laycock (1994).
2
21 Fidderman H. and McDonnell K. (2010) Worker Involvement in Health and Safety: What Works? A
report to the HSE, 21 May.
22 Ibid, p. 58.
23 Royal Society for the Prevention of Accidents.
24 HSE (2013) Bricklayers Taking Ownership of Health and Safety in Allgood Service Ltd. Available
online at: http://www.hse.gov.uk/construction/lwit/case-studies/cs2.pdf (accessed 7 February 2018).
25 Ibid.
26 Safety Representation and Safety Committees Regulations. Available online at: http://www.legislation.
gov.uk/uksi/1977/500/made (accessed 8 June 2018).
27 HSE Case Study: UCATT North-West. Worker Involvement Series. Available online at: http://www.
hse.gov.uk/involvement/casestudies/ucatt.htm (accessed 14 November 2011).
28 Trade Union Congress (1995). A commissioned national opinion poll involving 1002 people in the
UK identified that 98 per cent felt they had the right to be represented by a trade union in relation
to health and safety.
29 RIDDOR.
30 Changed to five days in the UK to match self-assessment of sickness rules.
31 Lifting and Lifting Equipment Regulations SI 1998/2307.
32 Working at Height Regulations S12005/735 and SI 2007/114, amendment.
33 Construction (Head Protection) Regulations SI 1989/2209.
34 Provision and Use of Work Equipment Regulations 1998 (PUWER).
35 The Control of Asbestos Regulations SI 2012/632.
36 Construction (Design and Management) Regulations SI 2015/51.
37 The Control of Substances Hazardous to Health Regulations SI 2002/2677 and SI 2003/978 and SI
2004/3386 amendments.
38 The Control of Noise at Work Regulations SI 2005/1643.
39 The Electricity at Work Regulations SI 1989/635.
40 SI 2015/51.
41 Willbourn C. (2009) Report of Qualitative Research amongst ‘Hard to Reach’ Small Construction
Site Operators. RR719. London, HSE.
42 Accident Advisory and Prevention Unit (2013) Managing for Safety and Health. HSG65. 3rd edn.
London, HSE. Edition 3. This edition replaced the 1997 book and changed from a systems and
process orientated to the more behavioural approach of Plan–Do–Check–Act. It is primarily for
leaders, clients and line managers.
43 Adapted from HSE (2013) Successful Health and Safety Management.
44 Wilde G. J. S. (1994) Target Risk: Dealing with the Danger of Death, Disease and Danger in
Everyday Decisions. Toronto, PDE Publications.
45 HSE (2013) ACSNI Study Group on Human Factors, 3rd Report. Quoted in HSE (2013), p. 22.
46 HSE (2015) Construction Phase Plan (CDM 2015): What You Need to Know as a Busy Builder.
Available online at: http://www.hse.gov.uk/pubns/cis80.pdf (accessed 14 July 2018).
47 Fewings P. (2009) Working at Height and Roof Work. InC. McAleenan and D. Oloke (eds), ICE
Manual of Health and Safety in Construction. London, Thomas Telford, pp. 167–180.
48 Shell (2010) Safety Record. Available online at: https://www.shell.com/about-us/major-projects/
pearl-gtl/safety-record.html.
49 SI 51/2015, Regulation 14.
50 https://deming.org/explore/p-d-s-a.
51 https://www.skanska.co.uk.
52 Considerate Constructor Scheme Best Practice Hub (2018) Making Sure Operatives Recognise the
Importance of their Own Safety. Available online at: https://ccsbestpractice.org.uk/entries/making-
sure-operatives-recognise-the-importance-of-their-own-safety/?search_term=behavioural%20
safety (accessed 13 February 2017).
53 Laing O’Rourke (2017) Monitor Report Manchester. Available online https://ccsbestpractice.org.
uk/entries/company-wide-safety-philosophy/?search_term=behavioural%20safety (accessed 13
February 2017).
54 CIOB (2004) Improving Site Conditions: The Construction Manager’s Perspective, based on the
‘Change in our Sites’ workshop 2003 as a contribution to the improving site conditions campaign
run the Strategic Forum for Construction.
55 Regulation EU 305/2011 of the European Parliament and Council (2011) laying down harmonised
conditions for the marketing of construction products and repealing Council Directive 89/106/EEC.
56 Fire Safety Centre (2011) Fire Doors. Available online at: http://www.firesafe.org.uk/fire-doors
57 HSE (2013) Managing Health and Safety..
58 Norton Rose Fulbright (2016) Global Safety Trends in Infrastructure. Available online at: http://www.
nortonrosefulbright.com/knowledge/publications/138635/global-safety-trends-in-infrastructure
59 McGettigan T. (2009) Worldwide Tower Crane Statistics. Available online at: www.Tower Crane
Support.com (accessed 17 June 2018).
60 Isherwood R. (2010) Tower Crane Incidents Worldwide. RR820. London, HSE.
61 Department of Transport (1987) The Merchant Shipping Act 1894, MV Herald of Free Enterprise
Report of Court No 8074 (Sheen Report). London, HMSO.
62 Fennell Report (1988) King’s Cross Fire. London, HMSO.
63 Cullen Report (1990) The Public Inquiry into the Piper Alpha Disaster. London, HMSO.
64 Hidden Report (1989) Investigation into the Clapham Junction Railway Accident. London, HMSO.
65 HSE (2003) Causal Factors in Construction Accidents. RR156. UMIST and Loughborough
Universities.
66 Donaghy R. (2009) One Death Is Too Many: Inquiry into the Underlying Causes of Construction
Fatal Accidents. Report compiled for the Secretary of State for Work and Pensions. London,
HMSO, p. 16.
67 HSE (2004) RR116.
68 HSE (2010) An Investigation into the Use of Plasterboard Manual Handling Aids in the GB
Construction Industry and Helping and Hindering the Practicability of their Application. Health
and Safety Laboratory. RR812. London, HSE.
69 SI 1999/3242 and SI 2006/438 incorporate special sections for young people and expectant moth-
ers. They expect that, where possible, employers should use competent employees to carry out
assessment of risk in order to give them ownership of their own safety. Part 3 of the Fire Precautions
(Workplace) Regulations SI 2003/2457 and 454 have also been incorporated for precaution mea-
sures. Construction sites now have to provide better marked escape routes and site-based firefighting
and alarms in multiple positions on large sites, though they cannot be compartmentalised during
construction. Specific construction applications are envisaged in CDM 2015 Part 4.
70 SI 1998/2306.
71 SI 1996/1592.
72 Fewings (2010).
73 The Control of Substances Hazardous to Health Regulations SI 2002/2677 and amendments SI
2003/978 and SI 2004/3386.
74 The Control of Asbestos Regulations SI 2012/632.
75 Crown Prosecution Service (2010) Corporate Manslaughter Guidelines. Available online at: http://
www.cps.gov.uk/legal/a_to_c/corporate_manslaughter/#a04 (accessed 16 August 2011).
76 Kenny E. and Bridges K. (2011) Corporate Manslaughter Conviction: Would your Health and
Safety Policies Stand Up to Scrutiny? London, Pinsent Masons.
Appendix A: health and safety legislation
EU directives were adopted within UK regulations under the umbrella of the existing HSW
Act 1974 but using the Framework Directive 1992. Both have adapted a pattern of risk
assessment that identifies responsibilities. When the UK leaves the EU these are unlikely to
materially change the process of risk assessment that is enshrined under the HSW Act 1974.
The Framework Directive (89/391/EEC) for ‘measures to encourage improvements in the
health and safety of workers at work’, led in the UK to the Management of the Health and Safety
at Work Regulations 1999 (MHSW).69 These define the risk assessment process and prescribe
generic measures such as training, planning, health surveillance, organisation and monitoring
and escape and the use of workers in risk assessment, which provide principles for a wide range
of more specific regulations.
The Framework Directive also led to six daughter directives applying to any workplace
that deal with areas such as hazardous materials, manual handling, biological agents, use of
work equipment, noise, electricity at work, protective equipment, equipment safety, visual
display screens, pregnant workers, protection of young people at work, safety and health
signs and worker safety representation. Figure A11.1 indicates the principal framework that
is used in Europe together with local UK regulations to provide complying details.
The Lifting Operations and Lifting Equipment Regulations 1998 (LOLER) cover all lift-
ing equipment, including cranes. The Provision and Use of Work Equipment Regulations
1998 (PUWER)70 describe in general terms the safe use of plant and equipment and insist on
use only by competent and trained persons.
WAHR 2005 take over parts of the old CHSW 199671 by stiffening up the definition
of working at height and ensuring proper risk assessment for falls from height and drop-
ping objects, which together are by far the worst cause of accidents on construction sites.
Fewings72 refers to the need to reduce working at height and creating a culture of using more
prefinished components that reduce working time at height.
CDM Part 4 and WAHR provide a prescriptive framework to deal with specific
construction-related risks associated with accidents, health and welfare. Typically, these are
the safety of excavations, stability of structures, demolition, explosives, falling objects, pre-
vention of drowning, vehicle movements, emergency routes and procedures, escape routes
and firefighting, safe work areas, traffic routes, doors and gates, working at height and falls off
scaffolds and roofs, and safety in the use of work equipment. Regular inspection and training
programmes for competent use are a key part of the operation of these regulations and welfare
facilities must be provided and maintained that are adequate for the size of the workforce.
Management of Health and Safety at Work

(Framework Directive)
Non-specific UK Health and Safety at Construct ion-specif ic
Work Act 1974
Temporary and Mobile Sites Directive
Directives (all industries)
92/57/EEC (construction)
e.g. hazardous substances (coshh), noise, Other construction-specific regulations

Management & Coordinating
electricity, machine safety regulations e.g. lifting (LOLER 1998), working at
Regulations 2015 (CDM) i
(PUWER), asbestos height (WAHR 2005)
Revisions Revisions Revisions
Figure A11.1 The framework directive and daughter directives

The Control of Substances Hazardous to Health Regulations 2002 and 2004 (COSHH)73
risk assess the use of substances and provide safe instructions for use, storage and labelling.
For example, paint with volatile fumes has to be justified in relation to the use of water-
based substitutions. It has been regularly updated to keep up to date and now has tougher
standards in relation to exposure to biological dust and fibres, chemical and other corrosive
or dangerous emissions hazardous to health, some of which have special regulations like
those for asbestos.
Asbestos is a special case for regulation and a prescriptive code, the Control of Asbestos
Regulations 201274 is offered to control and restrict its removal so that further areas and peo-
ple are not contaminated and disposal takes place in a safe place. Asbestos was widely used
as insulation and fire protection until its long-term health implications were discovered. Now,
building owners need to manage the impact of asbestos deterioration on their premises by
conducting yearly surveys and sealinging or removing any asbestos disturbed during refur-
bishment and repairs. Asbestos that is not dispersing fibres need not be removed. In the UK,
all asbestos and asbestos use was banned by the end of the 1980s, so only owners of buildings
built before this date need be concerned.
Appendix B: corporate manslaughter

Corporate manslaughter refers to the actions of an organisation that cause the death of an
individual(s) to whom they had a duty of care. It can take into account the organisation’s
policies and resource allocation (for example, of safety equipment). Corporate manslaughter
is based on the concept of a controlling mind or a controlling group and is able to indict an
organisation or a senior responsible person within it that/who caused a restriction of the safe
actions of their delegates. It is not meant to supersede individual criminal acts where neg-
ligent actions or omissions caused the death but, rather, to recognise issues such as lack of
training or resources. It is therefore critical to the area of safety where a jury must decide how
serious the breach is and how much of a risk of death a corporate or director action posed.75
The breach that causes the death must be directly attributable to senior management failure
and the verdict of corporate manslaughter attributes the elements of manslaughter jointly to
a group of people or a management failure. In the UK in 2012, 63 cases of corporate man-
slaughter were opened by the Crown Prosecution Service (CPS) in the UK and a mere 25
cases were prosecuted successfully by the end of 2017. The crime of corporate manslaughter
is applied in different forms in a number of countries to force companies to take remedial
action and avoid scapegoating, though individuals can be prosecuted in tandem. Its most
successful application is the identification doctrine whereby a single individual is sufficiently
senior, e.g. the CEO, to be the controlling mind of the organisation.
The issues that may result in prosecution are a poor or lax approach to H&S and a policy
that encourages the breach or mere tolerance of it. The policy may seriously breach existing
enforcement policy guidance without providing equivalent coverage. Senior management
can include those in the direct line of control as well as those who are responsible for forming
organisational policy, but their relevant role must be significant and substantial. The latter
is wider than the former ‘controlling mind’ concept. It applies to any actions by companies,
home or abroad, that operate in the place where the incident occurred. It applies very strongly
to construction work. The CPS decides whether to prosecute on the basis of corporate man-
slaughter. A guilty outcome can result in unlimited fines and a public order to publicise the
incident and enforce remedial action for the future. The level of fines will be substantial and
will be ratcheted up to match ability to pay and size of company.
Corporate manslaughter is a serious issue. Many companies or clients may have an H&S
policy, which means that their employees are not trained or inspired to respond to accident
and ill health prevention. Alternatively, a company may have an excellent policy but there is
no attempt to allocate the necessary resources and or secure top management commitment.
Updating and reviewing data is an expectation of continuous improvement. Case study 11B.1
describes a case of corporate manslaughter.
Case study 11B.1 The first conviction under the corporate

manslaughter legislation (UK)76
A direct employee of a geotechnical company was crushed when he entered an unsup-
ported trial hole to make observations; he later died. The activity conducted by this
employee – entering a trench on their own with no support – was considered normal
by the company and the jury considered this a gross duty of care because it had not
taken all practical steps to protect someone working in such conditions. The jury found
that this workplace practice was wholly and unnecessarily dangerous and in direct con-
travention of CDM health and safety guidelines; that is, the company should have had
a policy in place for entering trial holes. It was fined £385,000, which amounted to 250
per cent of its turnover. To ensure payment, the judge ruled that this sum had to be paid
over a 10-year period. The severity of this punishment was intended to be an example
to all employers in the construction industry.
In order to avoid manslaughter charges senior managers need to prove that competent
workers were used and that the work was able to be adequately planned, risk assessed and
resourced. Other employees and workers will be interviewed and the case will be treated like
any other manslaughter charge under formal interview. In Case study 11B.1 there was quite
obvious flouting of advice and absence of standard practice at company level. In this case,
although there was no jail sentence, the crippling fine was meant to punish the company direc-
tor personally on an extended basis.Most court cases have involved small companies where
there was hands on involvement of the directors and ‘the controlling mind’. In bigger compa-
nies, it has been difficult to peel off the levels of management in order to prove direct control.
12 Sustainable delivery of construction
projects
What? In 2015, the United Nations established 17 sustainable development goals for 2030,
which were duly adopted worldwide. Two of these directly affect buildings and infrastruc-
ture. They recognise the social impact of developed world actions on the under-developed
world’s progressing welfare and prosperity and encourage more responsible and dispersed
development in infrastructure and industrialisation.1 The Paris Agreement2 to limit the rise
of global temperatures to 20C, was signed by 180 nations. The construction industry can
play its part in addressing global warming. Building design, in particular, affects energy use,
choice of materials, air quality, pollution, water use and social conditions. Users of buildings
also need to be trained to use them in a sustainable manner. The ethical goal for all of us is
to reduce our harmful impact upon others so that it is possible to live on this planet for the
indefinite future.
Why? The construction industry needs to reduce the level of carbon emissions during the
building process. The sustainable building or structure is one that satisfies environmental,
ecological, social and economic concerns in a balanced way. There is a need ‘to promote
sustainable skills and behavior, inspired by creative and critical ways of thinking, in order to
encourage the resolution and management of problems that stand in the way of sustainable
development’.3 Climate change has a disproportionate impact on under-developed countries
and pollution is threatening our planet. However, the building programmes of emerging
economies are resulting in rising levels of carbon emissions. This situation calls for an equiv-
alent reduction of carbon emissions in developed economies to maintain emissions at current
levels.4 Other scarce resources need to be managed through a process of conservation, eco-
logical awareness and waste reduction.
How? A project manager can exert influence by co-ordinating design with the procure-
ment and construction processes to achieve the level of sustainability required of a building
in operational use. Sustainable delivery is critical to ensure that the level envisaged is in fact
achieved in use. This will depend upon the efficacy of the design, the quality and method of
the construction and the way in which the structure is used. Most certification schemes are
now requiring post-occupation testing before releasing final certificates. The Royal Academy
of Engineering offers 12 commonsense guiding principles5 of sustainable development to
promote global long-term provisions, balanced solutions with stakeholder engagement and
cradle to grave planning.
The scope of sustainability in construction design and delivery

Construction is working towards zero carbon solutions, sustainable procurement, local prod-
ucts and waste reduction. On the social side, the workforce needs a safe and healthy working
Sustainable delivery of construction projects 349
Product Distribution
manufacture Refurb
Design Assembly Demolish
onsite
Buildings in
use
0.1% 13% 2% 1% 84% ?%
Figure 12.1 Proportionality of total carbon emissions, adapted from IGT Low Carbon Construction7
environment and effective training in develop their awareness of sustainable design and con-
struction. The industry also has to deal with the health legacies of asbestos pollution and
global warming. Government legislation is an important factor to move things forward, map
out thresholds and monitor targets. Cost-effectiveness in the long term is important to incen-
tivise change for private business and co-ordinated guidelines are needed for public clients.
Clients need to get involved in driving the process if it is to be effective.
Buildings are apparently responsible for 45 per cent of energy consumption.6 Figure 12.1
provides a breakdown of carbon emissions. Construction and product manufacture produce
emissions, but design and construction compliance will heavily influence total life cycle
emissions when buildings are in use and most energy is used. Users need to understand car-
bon reduction strategies for maximum effect.
These are the joint challenges of building and retrofitting efficiently but sustainably dur-
ing the building process and in use:
• Achieving zero carbon building and incentivising new technologies at the design stage,
an integrated task with the client, designer and constructor.
• Innovating technologically using new environmentally-friendly materials and collating
these in energy efficient designs and the use of local materials and sustainable transport.
• Tracking and certifying products from sustainable and ethical sources in a time, cost and
quality efficient way.
• Making voluntary environmental assessments such as BREEAM,8 LEED9 and Passivhaus10
models more attractive for clients and designers so that they are easy to use, supplement
legislation and are effective into the occupation period.
• Creating measurement systems that take into account local conditions and context, for
example rural and urban solutions would be different.
• Having equitable planning control requirements in relation to sustainability that ensure
an incremental improvement in social, environmental and economic outputs without
suppressing entrepreneurial initiative.
• Retrofitting existing building stock to insulate it, make it operate efficiently and reduce its
carbon emissions, and supplementing this approach with incentives for domestic owners.
• Developing effective production plans complying with government fiscal policy to
reduce waste to landfill and increase recycling, avoiding ‘greenwashing’ as a way of
fudging issues.
• Reducing the cost of green buildings so that they are attractive and financially competitive.
• Providing ecologically and socially sound solutions that enhance quality of life in urban
areas at affordable cost and manage the natural environment. (See also Chapters 6
and 16.)
350 Sustainable delivery of construction projects
• Encouraging clients with ‘loud’ corporate social responsibility (CSR) policies to put
their money where their mouth is and set robust budgets for sustainable buildings in spite
of short-term premium costs.
These challenges emerge from the wider world agenda for addressing climate change but
also the desire for living more sustainable lives and maintaining the Brundtland vision of
‘ensuring a legacy for our children’.11 The challenges to reducing carbon emissions are trans-
formational but the change in social attitudes and the willingness of organisations prepared
for longer-term payback by increasing BREEAM ratings are encouraging. However, there is
still a long way to go to reach the long-term target of zero carbon buildings.
Government targets
An overarching government policy is essential to monitor, balance and allocate targets to all
industry sectors, including housing. International agreements help to maintain pressure on
governments by issuing comparison achievements in order to blame and shame. Some devel-
oping economies have further to come and development itself will raise carbon emissions
if help is not given by richer economies to enable them to use innovative technologies that
reduce carbon. Case study 12.1 shows the UK plan for construction sustainability.
Case study 12.1 UK government targets

In the UK, Construction 2025 was issued as a joint government/industry initiative12
providing overarching targets for carbon emission reductions in building, recycling,
procurement, design innovation, climate change mitigation and adaptation of exist-
ing building stock. Notably, these are to reduce waste to landfill to small amounts. By
2025, a 50 per cent reduction in all carbon emissions in the UK is targeted by incenti-
vising growth in green business and resource efficiency as technology improves. The
UK is committed to an 80 per cent mandatory reduction by 2050 under the Climate
Change Act 2008. It will provide financial incentives such as feed-in tariffs for pri-
vate renewable energy production and green deal incentives for retrofitting the 75
per cent of existing building stock likely to be in operation in 2050. These incentives
are to reduce the barriers facing responsible building owners and to reduce payback
periods for capital expense within occupation/ownership averages, including social
landlords who own large building portfolios. The green deal incentive is a financing
mechanism for energy-saving improvement for all homes, which offers reductions to
hard-up households and spreads repayments for others linked to subsequent energy
use to reduce fuel poverty for vulnerable households. It also puts obligations on com-
panies and public organisations to reduce their carbon footprint, the so-called energy
company obligation (ECO).
Case study 12.2 describes a specific project organisational strategy.
Case study 12.2 Greater Manchester housing retrofit

partnership13
A pilot of 16,000 social homes out of 260,000 owned by Greater Manchester Council
was set up, using the Green Deal and ECO, to provide solid wall insulation and efficient
condensing boiler systems to make them energy efficient and reduce carbon emis-
sions. A Green Deal Communities’ Fund grant of £6.1 million was used to help fund
three years’ worth of retrofitting. The scheme created 1800 jobs in construction and
gave a £100 million boost to local business in terms of profit. It was designed to act
as a catalyst for take up and an example of good practice to investors and other social
housing providers. As energy saving measures become more complex a retrofit innova-
tion network can pull in experts in community engagement and retrofit design to support
ongoing schemes and incentivise tenants.
The International Green Construction Board co-ordinates country-wide green boards to

oversee sustainable buildings, enhance co-operation, support research innovation and develop
capacity and skills, especially in the area of building engineering physics and apprentice-
ships. The UK Green Construction Board was created in 2012. This also looks at promoting
innovation, leadership and exporting ideas internationally through existing good practice.
There is now a BSI standard (PAS 205014) and an international standard15 for a consistent
measurement of the carbon footprint of goods and services. There is a desire to close the gap
between modelled (laboratory conditions) and actual (installed and operated) performance.
Figure 12.2 shows where carbon is generated.
The Wolstenholme Report and sustainability

The Wolstenholme Report16 reports on UK industry progress 10 years after Egan’s Rethinking
Construction17 report and reflects on opportunities for further sustainability in a recessionary
climate. Wolstenholme recognised the need to create business models that integrate the client
with the construction process if sustainability is to be tackled effectively. Clients, contractors
and designers need to create opportunities for sustainable solutions taking entrepreneurial
risk. Main contractors need to move away from pushing risk down the chain to subcontrac-
tors and, instead, to sustain collaborative practice where innovation is encouraged. Clients
need value-based, life cycle costing that supports sustainable innovation and reduces long-
term running costs. Wolstenholme sees the BREEAM excellence rating as a starting point
to sustainable delivery of buildings, but a proper understanding of the client’s business is
also needed to maintain life cycle sustainability. The positive focus of sustainability has the
potential for the public to connect sustainability with construction activity and its capability
to generate long-term value for society and the economy.
The G4C (Generation for Collaboration), a group of early-career construction profes-
sionals who began working between 1998 and 2009, has criticised the industry for failing
to create opportunities for sustainable development and a low carbon environment, for
lack of opportunities such as skills development in sustainability and for being too firmly
Transformation
Carbon in law Carbon in Carbon in part Carbon from Carbon in End of life
material material pro- manufacturing assembly on building use recycling
extraction cessing and delivery site carbon
Embodied energy Energy in use Recycling energy
Figure 12.2 Life cycle model of carbon use showing embodied energy
focused on the bottom line. Wolstenholme connects the industry’s poor sustainability
agenda with missing out on an opportunity to attract the best graduates. The report sug-
gests that, ‘adopting carbon as a unit of currency would be a powerful way to promote the
right kind of change for our industry’.18 Using carbon like this would prioritise sustainable
design and construction solutions and could be justified in the business case if decreasing
carbon emissions was incentivised.
Government payments (feed-in tariffs) for renewable energy generated locally help
incentivise renewable energy. Direct government penalties under the carbon reduction com-
mitment where industry has to progressively use less carbon or pay for carbon credits to
cover its shortfall is imposed by government targets across Europe. Designers will need to
work closely with clients on the life cycle payback of energy-efficient solutions and not just
functionally in their value discussions. More use of innovative technology will reduce the
price as a result of economy of size.
The development control system and sustainability

A sustainability statement is a common requirement for development approvals to assess
that a project meets the needs of the future, uses ethically-sourced materials, uses less
energy and attains local development objectives, including renewable technologies. In the
UK, development approvals from local planning authorities require a design and access
statement that provides a reasoned justification of the design in local context, including
how it complies with local imperatives, and a travel plan to maximise public transport
usage and minimise car journeys. The submission presents a balanced recipe of measures
recognising conflicts and an environmental assessment (e.g. BREEAM) to show what
level of compliance the design is likely to attain. A project will require an energy assess-
ment to show the CO2 emissions and a ‘what if?’ of any renewable energy generation
being offered. The level of attainment proposed might be critical to the granting of the
application. Other aspects are also covered in the requirement to survey the plot and exist-
ing buildings for hazardous environments or ecological conservation in flora, fauna or
protected breeding species. In Europe, these are covered by the Environmental Protection
Act 1990 and are administered through local planning authorities with instruments
for appeal.
Large projects will have to undergo an environmental impact assessment (EIA) to deal
with noise, ecology balance and dealing with pollution. The transport impact assessment
is part of this and a Section 255 agreement approves access improvements to the highway.
A Section 106 agreement, sometimes called a ‘planning gain’, is required of private develop-
ers who are gaining profitably from their development in order to contribute to the capital
expense of social development of the site such as schools and community recreation provi-
sion. These add to the sustainable community target.
In granting development approval, planning authorities instigating harsh requirements
need to be aware that, from a financial perspective, they may deter private or public devel-
opers who will analyse whether the cost of compliance is proportional to their anticipated
long-term gain.
Where development approval is locally based, it is important that permission is an equi-
table process and not based on ‘postcode’; that is, levels of sustainable provision may be
acceptable to particular authorities. A review of sustainable alternatives that represent incre-
mental improvement is a recommended option that would open up a debate between planner,
designer and developer. In the UK, there is an opportunity for a pre-planning discussion with
the local planning officer in order to clarify what is acceptable and likely to be approved.
Inappropriate development still remains a risk, however, as development approval is granted
by elected members. For further discussion, see Fewings’ book on ethics.19
Corporate social responsibility (CSR)

A building’s sustainability level is guided by the client’s policies, which are enshrined in their
CSR statement. The EU defines CSR as, ‘The responsibility of enterprises for their impacts
on society’.20 Organisations deliver their CSR on the basis of reduced carbon emissions and
a responsible attitude to procurement, their workforce and the community. A sustainable
design comes in terms of sourcing, carbon emissions, ecology and whole life costs. A project
manager will attempt to deliver the building according to the client’s requirements, but there
are occasions on which there may be an ethical dilemma between the client’s low require-
ment and the reasonable professional perception of what it means to deliver sustainability
within good practice and the national timetable. Some of these issues are dealt with at the
planning application stage and may return as conditions in the development approval, such
as keeping trees or limiting car parking. However, renewable energy is a specific issue that
needs a business case and a payback period. Many client’s have high standards clearly stated
in the brief that require innovative developments within tight budgets far above minimum
compliance. This is good practice.
The client’s CSR policy is a statement of their intention to deliver a programme of eco-
nomic, social and environmental improvements in their business – otherwise known as the
triple bottom line. The development of a new or refurbished asset is a one-off for most who
are not experienced building developers. However, new accommodation is often a response
to a client’s CSR vision because a building’s impact is significant in terms of their ability
to comply to their CSR aspirations environmentally and in relation to their workforce. This
will require some guidance regarding the various elements of the building’s layout, fabric or
infrastructure, which will impact the client’s ability to achieve a low environmental impact,
promote employee satisfaction and reduce the running costs of the building. Case study 12.3
demonstrates this corporate policy.
Case study 12.3 New corporate headquarters

Wessex Water moved its headquarters (HQ) as a statement to support its environmen-
tal credentials in terms of sustainable supply of water and treatment of sewage. The HQ
incorporated state of the art airtight systems, with natural ventilation and high levels of
insulation, grey water systems, renewable energy generation, recycling and shading.
This helped Wessex Water to substantially reduce its carbon emissions and fossil fuel
energy use and to save water in comparison to its previous 1980s air-conditioned office
block. It also initiated discussions with its customers. It encouraged use of public trans-
port via a park and ride scheme and cycling to work. In 2000, Wessex Water won an
award for being the greenest commercial building in the UK. Fifteen years later the pho-
tovoltaic energy system was updated, which made the building almost self-generating
and saved 113 tonnes of CO2 emissions/year.21 It also enabled payback in six years
together with ongoing savings.
Good quality designed environments aim to be motivating and induce productive work.
Operational costs represent 84 per cent of the cost in Figure 12.1, so targeting energy sav-
ings and operational cost savings, even if capital costs increase, will make long-term business
sense. The location of a factory or warehouse is also crucial in terms of the transport impact on
the environment. Actions to achieve these savings need to be incorporated at the project incep-
tion stage. If the design and assembly process in construction is lean to reduce the capital cost,
then money is available for measures to promote operational efficiency through the installation
of more sustainable alternative energy plants with better layout and working environments.
Design is important for minimising carbon and reducing running costs. The right choice of
procurement to meet the client’s needs is important. So a client who knows what they want
environmentally would provide a performance brief including carbon reduction and ecologi-
cal targets. A more flexible form of procurement is needed to help the client interact with the
design to bring in ongoing improvements.
The social issues relate to local employment and being good neighbours within the com-
munity. They also refer to safe working of the employees and the protection of the general
public from unsafe construction environments. The project manager needs to provide assur-
ance on these issues and manage them during construction. Sustainable production systems
onsite may also be expected as part of the equation for contractors to win work, improve
employment conditions and extend neighbourliness.
Environmental assessment schemes
LEED and BREEAM schemes

These two schemes are leading international environmental assessment schemes from the
USA and the UK, with thousands of certifications each. They are both adapted for different
types of building, such as offices, retail, industrial, educational, healthcare and homes. They
award credits on the basis of categories such as:
• energy
• ecology
• materials
• water efficiency
• indoor health/environment.
These translate into performance ratings, including a zero carbon rating of ‘outstanding’.
Rating is performed by a trained assessor or in-house by the project team that is externally
audited. Both have a design assessment to predict environmental performance; however,
they measure it differently. Both schemes, post-2008, now have a further mandatory in-use
assessment to confirm the expected performance. The latter is to take account of the proper
awareness and training of users to ensure optimisation of sustainability in use. Both are used
internationally and some buildings have achieved both LEED and BREEAM certification,
which has shown slightly higher ratings given by BREEAM, though with in-use assessment
this could disappear. The cultures are distinctly different, but in international versions they
do share more features. BREEAM methods are considered to be quite exacting in the UK and
expend considerable effort on corroborating evidence. LEED is policed in terms of perfor-
mance by the US Green Building Council. BRE International has a more academic base than
country-based Green Building Councils and carries substantial weight. Both methods can be
used for new construction and existing buildings.
CEEQUAL and Green Globe
CEEQUAL22 provides an alternative project assessment and award scheme for civil structures
and public realm projects internationally and offers fixed term maintenance assessments for civil
engineering structures and landscaping. It is primarily an environmental quality scheme incor-
porating sustainability. It has 12 categories of assessment that are similar to those of BREEAM
but also include the historic environment. It puts more emphasis on landscape issues. CEEQUAL
was launched in 2004 and by 2008 had carried out £5 billion worth of assessments.23 An
example of a project CEEQUAL award is the Kai Tak Nullah shown in Case study 12.4.
A CEEQUAL organisational award recognises a triple bottom line assessment in respect
of people and society, active environmental care/enhancement, ethical operation and respon-
sible concern for environmental impact in the public and stakeholder realm. The award is
suitable for client, designer and contractor organisations and built environment funders.
Case study 12.4 Kai Tak Nullah (KTN) river

reconstruction24
The reconstruction objective was to green the KTN waterway in Hong Kong and
improve its drainage capacity to resist flooding by desilting compounds and to introduce
a landscaped green corridor through urban areas for public enjoyment in the Kai Tak
development area around the old airport. The project started in 2013 and was phased
to finish in 2018. A design competition was launched to assess options. Innovatively, a
narrower river channel was created with multi-cell culverts buried either side to increase
the capacity for flood alleviation and introduce accessible green open space at the
edge of the channel (see Figure 12.3). Public consultation revealed a strong preference
for a green area providing space for leisure and public events. The CEEQUAL review
provided an opportunity for the project team to review the sustainability aspects of the
project’s ecology, open space and flood protection. A good rating was awarded.
Figure 12.3 Cross-section of the river and culvert overflow

Kai Tak Development Reconstruction and Upgrading of Kai Tak Nullah©
Note: CEEQUAL delivered by BRE, on behalf of the Civil Engineering and Development Department,
Government of the Hong Kong Special Administrative Region.
Green Globe is a similar system to LEED and awards scores out of a hundred for each
category it addresses. It is offered in the UK, Canada and the USA. It assesses seven catego-
ries: energy reduction, environmental purchasing, sustainable site, water performance, low
impact systems and materials, air emissions and occupancy comfort. The system is heavily
weighted towards energy efficiency but it does look at the life cycle cost of green measures
and assesses payback so that ‘what if?’ design scenarios can be compared. It has four differ-
ent categories ranging from one globe (35–54 per cent weighted average), two globes (55–69
per cent weighted average), three globes (70–84 per cent weighted average) and four globes
(85–100 per cent weighted average). Three globes is therefore equivalent to excellent and
four globes to outstanding in the BREEAM system. A questionnaire survey is completed
that generates a report with percentage scores for each section and suggestions for improve-
ment. To gain a rating, a third-party verifier assesses the score. Case study 12.5 compares
BREEAM and Green Globe ratings. Many other certification systems are available and are
used to a lesser or greater extent on a country basis.
Case study 12.5 Comparison of Green Globe and

BREEAM ratings
Two buildings are compared that obtained ratings from these environmental assess-
ment schemes as recorded by the International Facilities Management Association
Foundation (IFMAF).25 Barclays’ new HQ in Canary Wharf is a class A glass and
masonry multi-storey office building in central London, which achieved a BREEAM
‘Excellent’ rating in 2002, and the Walter Cronkite School of Journalism in the Arizona
State University is a public building with ground floor retail space, a working TV station,
a news room, classrooms and offices. It is a six-storey iconic glass and masonry struc-
ture with sunscreens and a prefabricated lightweight steel structure costing $55 million
in downtown Phoenix. Table 12.1 shows wide variation in the ways in which excellent
certification was achieved and it is important to distinguish the business objectives and
the improvements made from existing buildings in assessing carbon savings and sus-
tainability improvements.
Table 12.1 Comparison of main sustainability criteria26
Sustainable Barclays’ global HQ London Walter Cronkite School of Journalism,

features 92,900m2 Phoenix 21,897m2
Rating BREEAM Excellent Two Green Globes
Objective Move office for better working Replace existing worn-out building
environment and consolidation and provide a landmark
of office space. environmentally leading building
Sustainable site Brownfield site; 12 offices Brownfield site minimising
consolidated into one; direct disturbance to topography and
access to underground; reduced ecology and using naturalised
deliveries/week 115 to 7. landscape; near light railway
station.
Scored 71%
Energy 15% reduction of CO2 per m2 165% more energy efficient than
efficiency with heat recovery, daylight similar buildings on energy star
and motion sensors. Five atria and saves 273,000 kg of CO2.
on south side of building for Energy efficient equipment and
thermal buffers and maximum low µ value.
daylight. Scored 62%
Water A green roof to reduce run off. Achieved most stringent water
consumption target with water
saving devices inside and drought
resistant plants to landscape outside.
Scored 84%
Materials Timber sustainable source and Recycling and waste management;
no tropical hardwoods; 80% avoid ozone-depleting refrigerants;
construction waste recycling recycled content in building
and reuse furniture and ongoing materials.
waste management.
Indoor No information. Low volatile organic materials and
environment demand control ventilation to
separately control high and low
pollution areas. Acoustic control.
Scored 78%
Passivhaus
This concept, originating in Germany in the 1990s, is about radical insulation of the house
to stop heat loss in winter and overheating in summer so that minimal top-up heating is
achieved. With mechanical ventilation and air tightness it has been proven that the tem-
perature of a house to Passivhaus standards will not fall below 160C without heating. This
concept works in any country for heating and/or cooling needs. The heating requirement in
a Passivhaus can be achieved solely by post-heating or cooling without the need of a tradi-
tional heating system.27 This represents a reduction in the heating levels defining the German
Passivhaus originally and a minimisation of mechanical cooling by shading and night purg-
ing so that air quality is also enhanced. Natural cross-ventilation is encouraged in hot times
of the year and airtightness in cool times. The standards are designed to work in any climate
in the world. Passivhaus standards require low permeability fabric and air tightness, high
insulation values, high performance windows with ultra-low µ values that work well in terms
of providing heating and preventing overheating. New technologies whereby windows can
heat and shade the house are being developed.28 The standard can be applied to industrial and
commercial buildings. Case study 12.6 provides a comparison of Passivhaus costs.
Case study 12.6 The United Welsh Passivhaus29

The project was funded by the Welsh Assembly and involved two ultra-insulated
detached Passivhaus designs – the three-bedroom Larch house and the two-bedroom
(continued)
(continued)
Lime house. Both houses achieved the Passivhaus standard in heating requirements
but the Larch house had a higher spec. The Lime house achieved a BREEAM sustain-
able rating of level 5 but the Larch house achieved a 6 (zero carbon). Materials were
mainly local, but a German Passivhaus window supplier was used for the Larch house.
A local supplier tooled up to supply windows for the Lime house.
The cost of the contractor-built houses was between £1300–1700/m2 in 2010, which
for the Lime house was only 17 per cent above the guidelines for a level 3 house. The
Larch house was bigger, produced zero carbon and was more costly, at £1700/m2.
However, terraced equivalents and less costly materials could bring this price down
substantially. The Larch house now has a running cost of as little as £80/annum with a
FIT income of £900/annum, even though the prototype was built on a hilltop 1000 feet
above sea level.
The houses were exemplar projects in terms of achieving the two goals of low energy
usage and acceptable cost of social housing.
Acknowledgement to the Welsh Government DCFW30
Business case for high environmental assessment

Most environmental certification is voluntary with the exception of the Gulf ERISDAM sys-
tem, which is enshrined in the building code. There is a strong moral pressure on clients to
insist on a certain level of compliance, but a cost–benefit case needs to be made for the busi-
ness to assess net costs. Energy efficiencies will be a useful way of showing payback for the
capital cost of incorporating environmental features that cut down on heating, lighting and
fuel costs to reduce energy, but also enhance the quality of life for employers at work and res-
idents in their homes. A business will need to balance any increased capital cost with energy
savings and the intangible saving of better productivity resulting from attracting good clients
and employees. Asset values may also be increased. Certification will carry its own costs.
There will still be a need for minimum compliance with legislative requirements designed
to reduce climate change and meet national and global targets, which should be factored out
of the comparison costs in the business case. Cases can be made for moving into new build-
ings or refurbishing existing buildings.
Comparison between LEED and BREEAM

Culturally, LEED awards points for innovation in design and more car parking. BREEAM
awards points for more public transport and assesses site production. BREEAM is based on
carbon reduction and LEED is based on US$ cost of running, which makes BREEAM easier
to adapt to an international assessment. That said, LEED can be recalibrated on different cur-
rencies quite easily.
Ratings range from ‘certified to platinum’ or ‘pass to outstanding’. BREEAM is very
exacting in its standards, which are based on UK building regulations that make co-ordinated
references to BREEAM ratings. As a result of using bespoke categories, BREEAM can be
applied more flexibly internationally. BREEAM has also, in some cases, recalibrated its
Table 12.2 Comparison of the metrics for LEED, BREEAM, Greenstar and CASBEE31
Type of system BREEAM (UK) LEED (US) Greenstar (Australia) CASBEE Comprehensive
Assessment System for Built
Environment Efficiency (Japan)
Standards Legislation and best Based on US ASHRAE, but Nine environmental Sustainable building reporting
practice, e.g. Building optional standards categories system (SBRS) third party
Regulations 2010
Thresholds Quantitative, e.g. credits Percentage of whole Credits and points with Credits
weighting on the basis
of the region
Measurement Management Sustainable sites Based on BREEAM Based on 3–4 levels of weighting for
Health and wellbeing Water efficiency each category
Energy Energy and atmosphere Barrier-free planting
Transport Water Material & resources Earthquake resistance
Materials Waste Indoor environmental quality Use of Rainwater
Land use and ecology Innovation in design Natural ventilation
Pollution Not in BREEAM: Flexibility of
floor layout and storey height
Humidity control
Floor loading
Application UK and international US and country adaptation, Australia and country Mainly Japan
adaptation, voluntary voluntary adaptation, voluntary
Trained Assessor BRE compulsory training Ad hoc training of team with GBC-A assessed JSBC and IBEC certification
and updates assessor support from Handbook
GBC-USA
Adaptability BRE global; widely used Country GBC adapts standard Versions used also in New Expanding to SE Asia and English
internationally internationally to suit. Six regional priority Zealand and South handbook version
bonus credits; ‘4 other Africa
countries adapted’
Lead body Building Research US Green Building Council Australian GBC Institute for Building Environment
Establishment (BRE) (US GBC) and Energy Conservation (IBEC)
Launched 1990 Launched 1998 Launched 2003 Launched 2001
weightings to take account of different climates. The BREEAM applied in the Gulf bears in
mind that water is much more critical and public transport not so critical to credits.
LEED is sometimes seen as a simpler, more intuitive assessment and BREEAM is seen as
requiring more testing. LEED has adapted internationally by creating local versions in each
case, connected to local currency and conditions. Table 12.2 compares four systems on the
basis of seven areas.
In general, it is thought that the dynamic tension between the two systems as they have
moved from their home country to the international stage has produced healthy competition
in terms of improvement and flexibility. The Greenstar and CASBEE systems have been
added to show how other countries have adapted an assessment system. The schemes should
develop in line with increasing knowledge and government commitment but remain simple
to use. Higher scoring buildings represent targets for progressive clients and push the design
process towards sustainability. Other countries operate systems that suit the imperatives of
local circumstances and laws (e.g. water conservation in the Estidama system of the Middle
East) but not all have been developed internationally.
BREEAM assessments
The BREEAM assessments address nine areas of consideration, as shown in Table 12.3,
which cover environmental and social issues. Carbon factors cut across the BREEAM cat-
egories but gain only some credit in relation to building sustainability.
These assessment areas are broken down into 40 sub-assessments. There are also
minimum BREEAM credits, which are required in each section. Example ratings are from 30 –
pass; 70 – excellent; and 85 – outstanding. A score of very good (55) is a minimum target for
a sustainably conscious client. It can be seen in Table 12.3 that the highest scores are those on
energy use and health and wellbeing. Reduction of CO2 emissions has an essential score of
6 to be rated excellent. We will deal with excellent rating as this is generally considered the
top building score economically attainable without significant renewable energy use. We shall
also be discussing the credits for the management section below. It is often hard to obtain the
evidence of provenance needed for the scoring in some areas, such as responsible sourcing and
volatility of proprietary products. Comparatively few points are given for a sustainable con-
struction process but being awarded an excellent score by the Considerate Contractor Scheme
(CCS) is helpful as this is recognised in terms of being awarded environmental and social points.
Table 12.3 BREEAM 2008 environmental weightings
BREEAM section Weighting (%)

Management 12
Health and wellbeing 15
Energy 19
Transport 8
Water 6
Materials 12.5
Waste 7.5
Land use and ecology 10
Pollution 10
Total 100
Low carbon design is critical to climate change but social and ecological benefits have a
large role to play too. Many clients now insist on a subsequent in use assessment and such
information is mandatory in published information. The accessibility of public transport, the
recognition of good local employment and the proper use of the controls means that some of
the building in use figures deteriorate without user training. Training is necessary for the sus-
tainable use of biofuels, which may also be seen as polluting by local building inspectors if
NOx emissions are not controlled. Case study 12.7 is a good example of some of the problems
encountered when trying to meet a certain level of compliance.
Case study 12.7 BREEAM assessment for a further

education college
This is an example of how a design and build contractor seeking to be awarded ‘excel-
lent’ for a further education college was able to use the BREEAM rating system for
educational buildings. Excellent requires a score of 70 credits out of 100. Assessments
are made at the design stage, following construction and in use.
A plan is prepared that is used to target where points can be gained in each section
and sub-section. The particular areas of interest that affect the detailed design and con-
struction are Management section 2, Heat section 1, Materials sections 1, 5 and 6 and
Waste sections 1 and 2. One-third of the points are targeted in these sections. A later
in-use assessment will have to match these points so it is important to have points in
hand because design expectations may not be met as a result of changes and different
interpretations during implementation and use.
A BRE assessor is appointed to calculate and audit the points score so there is
continuing communication and assessment. There is a complex requirement for mini-
mum scores in some sections as well as total scores. Some impacts are assessed as
an integrated whole.
Materials must be compliant with the Green Guide (GG), which provides ratings for
thousands of different common specifications based on the life cycle of the material/
component, termed an environmental profile (EP). Sometimes a specific EP is commis-
sioned for a unique product.
The designer and subcontractor have to submit a chain of custody providing evi-
dence that components and major sub-components are made from sustainable sources.
To get points for management of the process, an environmental management system
needs to be in place for both the managing contractor and the supply chain members
where there is no formal labelling system. For example, a precast concrete supplier
must be able to prove the compliant sourcing of aggregates. This may mean that aggre-
gate quarrying must be sustainable or have some recycled aggregate to gain a credit.
Changes of supplier may take place in order to be able to ensure evidence is available.
Heating and lighting assessment is based on heat gain and loss and natural day-
lighting. These elements clash with each other in that small or fewer windows to reduce
heat loss in winter also means that daylighting in the room is lost because the room
must be shallower. Deeper rooms mean solar heat gain in winter will be limited (more
heating). Shallow floor plans give a smaller floor to wall ratio, which uses more material
for the same space enclosure. This means a sensible trade off is necessary or some
(continued)
(continued)
anomalies are created to maximise sustainability. On this project, windows with lower
window sills were used to increase day lighting and depth of room and a fixed shaded
roof light was allowed to get more light into a restricted area of the room.
To avoid negative ratings, buildings on land liable to flood need to have ground
floors and access roads above expected flood levels.
The waste sections mean that a target of 80 per cent recycling is required.
Postnote: A BREEAM ‘outstanding’ rating requires 85 credits, and these may be
obtained, in particular, by reducing energy emissions further by using renewable
energy or zero-carbon technologies, which will substantially increase capital cost. The
greenfield context is also more costly in terms of land use and ecological effects.
Carbon use in the construction industry

The industry has much scope to reduce carbon use in building construction and use (which
currently accounts for 36 per cent of all CO2 emissions in the EU32 and 39 per cent in the
USA33) and to increase energy efficiency of buildings in use. Suppliers can take the lead and
build on the achievements of innovation in manufacturing and help to enhance take up of
genuinely durable products that are locally procured or are transported sustainably so that
carbon emissions resulting from manufacture and transport are considered equally with cost.
Manufacturing and transport from factory to building energy is called embodied energy. For
example, aluminium has huge embodied energy compared with timber because of its high
energy processing and transport costs. Where materials are sourced globally, robust sustain-
able sourcing and transport policies should be offered. Figure 12.4 shows the many inputs
that feed into the energy saving of a building.
Designers have a large influence on creative solutions that are more energy efficient and
towards zero carbon, more socially sustainable in meeting community aspirations but that are
also cost efficient. They need to balance a reduction in carbon emissions when in use and capi-
tal cost to the client. All this complicates the discounted net cash flow of future incomes. They
need to work more closely with services designers and ecologists to create more integrated
Third-party certification, e.g.

BREEAM or LEED Client CSR and
environmental
Construction management
production
efficiencies Government targets and
regulation
Design technologies for Alternative energy
environmental physics generation
User awareness and
Design and material training
efficiencies with less
embodied energy Local materials to
reduce transport
Figure 12.4 Integrating the carbon saving effort in buildings

designs based on better knowledge of sustainable technology and carbon emissions as well
as eco systems. In many countries, planning authorities are requiring evidence of life cycle
energy use and sustainable strategies in order to approve design schemes. Building regula-
tions require less energy use together with target emission rates (TERs) as assessed using a
standard assessment procedure (SAP). Fundamentally, designers need to design to comply
with a steadily decreasing level of carbon emissions as well as an increasing sense of social
responsibility. In the UK, Part L Building Regulations and the Code for Sustainable Homes
factor in reducing levels of carbon emissions to work towards a zero net target. Designers are
also encouraged by many clients to achieve recognised levels of environmental assessment
accreditation. For example, BREEAM and LEED have a wider remit to assess social and
environmental sustainability and to provide a measured level of attainment. Case study 12.8
illustrates a modern approach to sustainability.
Case study 12.8 The Leadenhall building

The iconic 47-storey Leadenhall building in London, known as the ‘Cheesegrater’, was
developed by British Land and Oxford Properties. Comprising 610,000 square feet, it is
built on a 48 × 62m plot. Eighty-five per cent of the structural and architectural components
were manufactured offsite and assembled onsite, which hugely reduced waste and deliv-
eries. It is triple-glazed, with solar-responsive venetian blinds to control solar warming.
Water consumption is minimised through low-flow water fixtures. It is designed to fit into
its environment by sloping back from St Paul’s Cathedral and by being built on giant legs
to create a 28m high open space under the building allowing a view ‘through’ the building
to other parts of the city. It commands record city rents and was the tallest building in the
city on completion. The building was commissioned as a speculative office building with
premium accommodation. It has an external core giving unimpeded office floor areas.
It was analysed for embodied energy by its owner, British Land. The 92,000
tonnes of embedded carbon associated with its construction and design was appor-
tioned as follows:
Steel structure – 37 per cent

Cement products like concrete – 23 per cent
Internal walls – 13 per cent
Façade and external works – 11 per cent
Manufacture wastage and transport of materials – 9 per cent
Onsite energy use – 7 per cent
This gives an 84 per cent carbon usage in the manufacture and use of materials. The
wastage factor and transport are reduced as a result of using this methodology.
Acknowledgement to British Land and CTBUH34
Clients need to lead the vision for sustainable buildings and facilities because without
their commissioning and funding of suitable designs and underpinning of the additional
costs, low carbon buildings will not be built. Users can use heating and lighting sparingly and
technologies for automatic control of such can also be incorporated in a building; however,
there is still scope for user training. The construction industry needs to become more aware
of sustainability and the desire to gain a BREEAM in use certificate can provide an incentive
for doing so.
Social sustainability
Social sustainability is about raising social standards to improve standards of living, reverse
the marginalisation of communities and build community structures that boost welfare and
achievement. In this context, the built environment has a role to play in constructing buildings
that offer a democratic response to social problems. This is generally measured in terms of
improvement in quality of life, and the provision of sustainable environments that are more
efficient, help overcome social problems and promote social awareness. Case study 12.9
shows how building design can play a role in this aspect of sustainability.
Case study 12.9 Sustainable school design to improve

learning
In Bristol a 10-year local educational partnership (LEP) was formed to renew school
stock in Bristol over a period of time. The first four schools were carried out on a PFI pro-
curement in deprived areas of Bristol in order to restore confidence in failing educational
objectives. Before work started, the LEP team consulted with parents, teachers and
children to obtain their input so that the schools would be fit for purpose. Bullying, lack
of space, vandalism, better IT, more teacher support, better standards of attainment
and lack of facilities emerged as key issues. In response, the objectives became safer
schools, creating active learners, increasing parental engagement, integrated special
needs, learning communities and families and 24/7 access to resources in order to
transform existing facilities. For example, to tackle bullying, some areas of the schools
were made particularly visible – toilet entrances and washrooms could thus be seen
from the staffrooms. Sustainability was made a visible issue by displaying energy usage
on public meters.
Classrooms were made into more flexible spaces and an internal ‘street’ was created
for better interaction with school zoning; home areas were also provided for different
cohorts of children where they could see class tutors in groups of 10. The education
authority and headteachers were anxious to have cheaper running costs and a transpar-
ently sustainable school that displayed energy use comparisons and carbon emissions
that were 40 per cent less than current standards. Biomass boilers were installed and
natural ventilation was designed in by incorporating stacks at the back of each class-
room that drew in fresh warm air which was stored in the mass concrete structure by
omitting ceilings and providing hard finishings; at night the stale air was purged by
opening vents in the roof. Rainwater collection tanks were used to flush the toilets, and
during construction 17–24 per cent of water was recycled. Classroom spaces were also
made much more flexible with multi-purpose laboratories and minimum furniture. The
ICT system was installed and managed by another contractor that provided automatic
registration, administration support, online marking systems and a moneyless system

for buying food and lunches. High quality sports facilities were installed that were open
to the community after school hours and at weekends. The students celebrated their
learning in the form of a mural in the school entrance halls expressing wishes for their
educational outcomes, such as ‘I wish I could find a cure for cancer’ and ‘I wish for world
peace’. Students also had a say in the public art displayed around the schools. A further
nine secondary schools and academies and two primary schools have been completed
in the Bristol LEP.
In the first school, which included integrated provision for those with special needs,
the outcome of the design was that pupil attendances and results went up as bullying
went down and many parents who had been sending their children to schools outside
the area were prepared to send them locally. Students expressing feeling safe rose
from 30 to 87 per cent. There was better retention of teachers and administrative staff
and they also felt supported by the IT systems and able to track and stop pupil disrup-
tion. Vandalism dropped dramatically and self-esteem rose. Students were happier to
come to a school with excellent IT provision and proud to have sporting and other
leading-edge facilities. Headteachers did not have to worry about rising fuel costs under
PFI. Student results improved by 15 per cent within the first year at the first school.
Many administrative chores were assumed by the contractor’s facilities management
team, such as a help desk. The local communities were happy with the new sporting
facilities and felt more engaged with the school.
The schools were built on the playing fields and phasing was used without stopping
use of the previous schools. The schools obtained a BREEAM ‘very good’ rating. The
contractor also found they were able to make improvements to the three other schools
after lessons learnt on the first one, especially in being sure of the BREEAM ‘excel-
lent’ rating and thus kept their design and supply chain together. Only 6.6 per cent of
construction waste was moved from the sites, on average. They felt they had made an
impact with the design. They were also able to get better bulk buy rates.
Acknowledgement to site staff and for information from Building Schools for the
Future35
Sustainability onsite
Contractors have an ethical duty to control waste and keep carbon emissions down dur-
ing construction operations and Case study 12.10 describes a scheme that aims to police
this. In the UK there used to be a mandatory requirement for site management waste plans
to promote recycling and sites can operate sustainable site production including carbon
reduction. In the final stages contractors can help reduce carbon emissions in use by mak-
ing buildings airtight, training facilities staff in effective use of plant and EMS systems
and handing down easily understood documentation. Contractors are also responsible for
procuring materials and establishing a chain of custody that audits sustainable sources
in their supply chain. Although it may not be possible to avoid sub-contracting, there
are opportunities for supply chains to be more tightly managed to ensure compliance
with sourcing requirements and to vet contractor design and early involvement to induce
innovation.
Case study 12.10 Considerate Constructor Scheme

The Considerate Constructor Scheme (CCS)36 is a voluntary scheme for contractors
who demonstrate actions to enhance their impact on the environment, the workforce
and the general public. The CCS awards points for contractors of any size. It has a
20-point code of site care, which includes protect the environment, secure safety for
all, value the workforce. Sites have to get a minimum number of points in each sec-
tion, with a top score of 45. Registered sites are monitored and visited and a score of
three in each category is recognised as being compliant. An important element of the
scheme is releasing staff to make educational site visits, give talks, raise funds for local
charities and projects to increase the visibility of construction projects. The CCS is a
competitive scheme that awards a gold, silver or bronze to construction projects. By the
end of 2017, 100,000 sites had been monitored and the scheme is now being extended
beyond the UK.
There is a push to improve environmental scores by reducing CO2 emissions in the
construction process by improving insulation of site accommodation, using less tempo-
rary generation of electricity and using less fuel to run site machinery, make deliveries
and on long single-driver journeys to work. Sites, of course, face bigger challenges in
this area because many are inaccessible via public transport and employ casual and
itinerant workers from many different organisations. The CCS has developed a best
practice hub to share innovations and examples of successful projects and provide
advisory services. It is promoting its use by SME contractors by awarding on a propor-
tionate scale.
The CCS aims to raise the reputation of the contractor in the local community by being
better neighbours, but also by being proactive in relation to the environment and health and
safety. It particularly focuses on raising awareness, involving the wider workforce in acts
of proactive social sustainability in the community, improving attitudes toward health and
safety, respecting neighbours and reducing nuisance in relation to cleanliness, dress code,
noise, dust, deliveries and public health and safety. The social and community issues include
the creation of employment opportunities during construction. Case study 12.11 provides an
example of best practice according to the CCS scheme.
Case study 12.11 Clayfield Construction

In 2010 there were 580 sites selected for gold, silver, bronze or runner up awards.
Interestingly, a small office built by a local contractor, Clayfield Construction, was rec-
ognised as the most considerate site in 2010; it was recommended for its scrupulous
cleanliness onsite and in the surrounding areas, absence of obstructions, tight waste
control, top score achieved in health and safety as a result of additional features, excep-
tional welfare facilities, active staff and community participation, coaching assistance to
a local football club and school, clearing of Japanese knotweed from the area and the
provision of owl and bat boxes to promote wildlife.
Business Mobilisation and

Feasibility Design Tender
case construction
Key outputs for Sustainable Assess sustainability.

Sustainability test
sustainability specification commitment and capability
Figure 12.5 Procurement process and sustainability input
Sustainable procurement
Sustainable procurement covers a variety of issues in the design approach and good con-
struction practice for sourcing, reducing consumption, improving recycling, reducing carbon
emissions, providing safe environments and looking after the workforce. The cycle of pro-
curement is considered in Figure 12.5.
During the procurement cycle it is necessary to consider:
• Business justification – consider location on a brownfield site, heritage and conservation,

biodiversity, energy and water conservation.
• Economic aspects – gain documents on outputs to give a level playing field with VFM
for whole life costing and procure designers and contractors with ‘green’ credentials.
• Environmental aspects – assess ethical and sustainable sources of materials, embod-
ied energy, transportation, ecology and other environmental aspects of the six essential
requirements of construction product regulations.
• Social aspects – assess, respect for people, health and safety policy, views and requirements
of the stakeholders including the community, culture, team sustainability knowledge,
competence, commitment and resources, supply chain selection, integration and training
for innovation and best practice capability, the safety, health and social aspects of the con-
struction product regulations’ six essential requirements.
These procurement considerations are helpfully broken down to make sure that all angles are
considered; a clear brief exists; a clear, fair and ethical selection process is in place, offer-
ing maximum freedom for innovation; and, once on board, a committed team prepared to
implement honestly and effectively what they have committed to is ready to begin. Often
a sustainable brief is hampered by the budget because of a capital premium for life cycle
capability. Requirements need to be feasible so that key ones are not uneconomically cut at
a ‘cost saving’ stage. Case study 12.12 looks at the London Olympics procurement process.
Case study 12.12 The 2012 London Olympics

The Olympics Delivery Authority (ODA) oversaw the procurement and construction
compliance of the plan. The ODA established 7000 direct contracts worth £6 billion,
which formed supply chains with 75,000 subcontractors. It had aspirational targets of
(continued)
(continued)
zero carbon emissions. Firms tendering for construction work had to prove their sus-
tainability credentials by complying with the sustainable sourcing code and designs
had to ensure a community legacy for the facilities after 2012. Contractors also had to
reduce their carbon footprint in delivery by using the Carbon Trust standard. They were
required to use energy efficient manufacturers and supply chains. The London sustain-
ability policy set out targets for biodiversity, waste reduction, recycling, climate change,
healthy living and legacy for each part of the site. Legacy refers to the reuse of buildings
for similar or modified purposes after the close of the Olympic Games. All eight Olympic
buildings have been reused in the regeneration of East London; a sporting legacy has
also been provided. The reuse of some of these buildings has caused controversy but
mostly the legacy planning was sound. Legacy is a way of looking at how design of the
building can be flexible in terms of encouraging reuse and recycling. Using buildings
for only three weeks and then knocking them down would be unjustifiable in an area of
urban poverty.
Ethical materials sourcing

Contractors are responsible for choice in procuring materials and in establishing chains of
custody that audit sustainable sources in their supply. This is called responsible sourcing,
which is an ethos of supply chain management and product stewardship. Environmental
accreditation schemes such as BREEAM, CEEQUAL and LEED put the onus on a respon-
sible supplier to prove the sustainability of the source and this may mean co-ordinating the
chain of supply back to the raw material. In effect, it is a labelling process for the construction
process. One well-known and effective scheme is the Forestry Stewardship Council (FSC)
certification that tracks timber supply to its source and provides evidence for renewable
production, which generally means protection of rain forests and replanting of timber from
commercial forests. Through effective marketing and reliable monitoring, this is a respected
and well-used system that has developed labelling to make sourcing for timber absolutely
clear. Client education to give an equal basis for bidding is important. There is potential for
most other products to have similar systems.
Concrete products are another area where sustainable sourcing is being forced by the
taxing of new aggregates and limitations on new quarries. Aggregates also impact the road
surfacing industry and recycling is an important consideration. Cement itself depends heav-
ily on quarried limestone, which is a finite product; quarrying can also mar the landscape.
Aggregates appear in many other hybrid products. Natural stone is a non-renewable commod-
ity, but can be reused or recycled in products such as reconstituted stone. Concrete structures
and products can be crushed onsite and used as substitute aggregates and steel reinforcements
can be recycled. Most structural steel, aluminium and glass are recyclable but recycling is an
energy heavy process. Table 12.4 indicates issues for a range of materials.
Contractors are key players in the procurement of materials and schemes like BREEAM
and LEED allow contractors to gain points if they are able to source sustainably and ethically.
In addition, non-volatile materials gain points in ensuring that materials with a tendency for
‘gassing’ do not get used.
Table 12.4 Sustainable materials management
Product Category
Forestry products Need to manage replanting and rate of cutting. Use FSC certified timber
and TRADA reuse schemes.
Woodchip and logs fuel Biomass boilers only if there is a renewable source or plantable
woodland, but NOx emissions need to be cleaned in a suitably
specified biomass boiler or heating system. See Case study 12.12.
Quarry products Stone, marble, metal ores, tarmacadam and asphalt. Many are registered
with BES 6001. Imported stone is not sustainable and local stone has
less embodied energy.
Fossil fuels Finite resource, but also heavy carbon emissions. Generally eliminate
or reduce use to reduce carbon emissions in construction and in
building use.
Pre-cast concrete Need to have responsible sourcing policy to avoid substantial
products (PCC) fossil fuel use in transporting from afar. These products can be
lighter than in situ concrete and save foundation size. PCC piles
can be good but new technology is needed to avoid the noise
and vibration nuisance to neighbours. Less waste than in situ,
recyclable as road base.
Plastic windows Complex component requiring buying from a supplier who has a
responsible supply chain or carrying out full source checks.
Structural steel, cladding, Use of ores that are quarried. Steel may be recycled but process is
reinforcement, energy intensive. Steel cladding coated and needs more processing.
aluminium Use of Eco Reinforcement. See Case study 12.8.
Glass May be recycled but process is energy intensive.
Stone Quarried and recycled product. Also can be used as dust in reconstituted
stone and mortar. Imported stone from emerging economies in
Asia has potential for unfair conditions and health and safety issues
restricting working life to 40 years. Use fair stone standard.
Concrete Elements of cement and aggregate can be substituted for recyclable
products, such as grinding of old concrete, iron filings, pulverized
fuel ash or recycled plastic fibreglass or coconut fibres. Some
processes are quite high energy. Recyclable as road base and
hardcore.
Excess farm products Straw stubble can be usefully used in construction. See Case study 12.12.
Responsible sourcing can be attached to a particular scheme, such as the Forestry

Stewardship Scheme that provides a chain of custody guarantee for trademarked products –
contractors buy these products with full assurance. Alternatively, responsible sourcing
involves checking back individually through a chain of supply that has a quality control
and EMS system to track and assure that sourcing control is in place for each of the suppli-
ers in the chain. The latter is a time-consuming and expensive approach, especially in the
construction industry where such a wide range of products is used and many components
are very complex and have many individual source materials. The scores that are obtained
for schemes such as BES 600137 vary on the basis of the percentage of the materials so
checked. They break down into the categories of organisational management, supply chain
management and environmental and social issues. Scores in compulsory elements must be
reached to comply with the standard, but further scores can be gained for exceeding the
threshold standard. The majority of companies that have registered as suppliers of responsi-
ble construction products are from the aggregate and concrete industries and as such have a
relatively limited supply chain. Company registration with BES 6001 is still at a relatively
young stage. Case study 12.13 indicates an example.
Case study 12.13 Eco Reinforcement company

registration scheme
BRC Ltd obtained a ‘good’ rating through the BES 6001 scheme for their manufac-
ture of eco steel reinforcement products out of a range from ‘good’ to ‘excellent’. Eco
Reinforcement is a trademark, like FSC, for responsibly sourced reinforcing steel,
including recycling from scrap, which addresses greenhouse emissions, transport,
waste management, employment and skills and environmental stewardship such as
water extraction. BRC has (1) third-party assessment by BRE and can prove that it
has a supply chain based entirely on responsible sourcing that can be traced, (2) a
range of environmentally-friendly policies such as relating to waste control and reduc-
ing carbon emissions, and (3) can prove that its business is based on ethical practices.
This has enabled BRC to win contracts and to get onto contractor supplier lists to help
its BREEAM rating, which is sometimes specified by the client. Reinforcement manu-
facturing with Electric Arc Furnace uses 95 per cent recycled steel but also uses large
volumes of water to cool molten metal and more energy.
In a sense, Eco Reinforcement resembles the scheme used by the organic farming
community whereby a contravention of one part of the environmental profile certified will
invalidate the rating. Eco Reinforcement products and organisations are listed in BRE’s
‘GreenBookLive’, which runs the BES standard.38
Social aspects of material production

The term ‘ethical materials’ is assumed to refer to low carbon materials, but it is also con-
cerned with the sustainability of the source in terms of labour wages and social conditions
in manufacturing and whether a supply is creating pollution or destroying habitat for those
living and depending on it and not gaining from its sale. Indiscriminate quarrying of sand-
stone for export is an example of productive land being destroyed and labour being exploited
in some countries. It can also refer to fair payment for goods at source and the boycotting
of products known to be manufactured under corrupt conditions. In order to control this,
there are schemes that track materials sourcing and accredit production methods. Materials
of concern in this area are either non-renewable or have the potential for being mismanaged
so that they need accreditation. The European Building Responsible Competitiveness (BRC)
project in the construction sector used a pilot of five countries to set out responsible sourcing
practices in large companies for dealing with their supply chain. There is also a Worldwide
Responsible Accredited Production (WRAP)39 scheme focusing mainly on employment
conditions, which will affect products supplied to the industry, and a portal for responsible
supply chain management.
Products made in countries utilising child labour are common, but the building industry
itself, in some countries, may depend on under-age and low-wage labour. Modern slavery may
be hidden in any country where vulnerable labour is groomed and forced to work under threat
of violence to their family and given little or no remuneration. Construction work remuner-
ated in cash is particularly commonplace and allows slave masters to operate as labour-only
subcontractors. Bribery is commonplace in many countries, particularly in relation to the
importation of essential goods. International contracts may also turn a blind eye to out of
proportion payments or bribes intended to gain priority for parties’ products. International
exports in developing countries can help their economies and contribute to sustainability, but
must be controlled closely.
A source is deemed acceptable if it is subject to responsible controls, adheres to ethi-
cal and legal systems, effective management systems and sustainable policies encouraged
by themselves and their supply chain. It must demonstrate stakeholder engagement, human
rights compliance, a complaints procedure, a health and safety policy, use sustainable and
ethically sourced resources, operate site stewardship, use water and manage waste efficiently,
consider transport impacts, maintain employee records and contribute to the local community
and built environment.
Localism
Local products are sustainable because they reduce the use of fuel and carbon in transporta-
tion. Their use provides an additional challenge to the design process. It stems from the impact
of globalism, which is economically forcing much of the small-scale local production of mate-
rials out of business and centralising processing so that bulk material is double-transported
long distances to and from the processor. With localism, the use of local stone can blend well
into a design and may cost less if it can be processed in the area. These materials are low car-
bon. Of course, local products may have ecological impacts and may be expensive, but they
will also reduce the pollution caused by distant deliveries and possibly create the opportunity
for small scale landfill on farms for example. If it is possible, sourcing locally would boost the
local economy directly through both employment and sale of building materials. Countering
this is the demand for high quality building products that may have to be processed in centres
of excellence and transported. An example of a controversial use of local agricultural products
is the substitution of local food crops for the growth of oil-producing plants for fuel, but a
good example of localism is indicated in Case study 12.14.
Case study 12.14 Local straw bale modular panels

Modular compacted straw bale panels plastered on the external face have been devel-
oped under patent. Called Modcell©, these panels are prefabricated in temporary local
factories (farm barns) set up for the purpose of supplying a nearby building site. The
straw stubble waste product of food production is harvested for the panels. The large
panels are fixed together onsite to quickly provide an insulated and waterproof wall which
is designed into the structural dimensions and can incorporate windows and doors.
The low-tech panels are constructed using local labour, thus boosting the local
economy. The panels are transported over short distances, are comparatively cheap
to manufacture and are easy to use. The product has been tested extensively and the
requisite quality control is thus well understood and therefore controlled under licence
by site staff.
Carbon reduction and climate change in delivery
The Paris Agreement aims to reduce carbon emissions by 80 per cent by 2050. It applies to all
industry sectors and imposes a cap of 1.5–2o in the rise in global temperatures. Reducing car-
bon use and emissions is essential to capping rising temperatures, the environmental effects
of which are rising sea levels as a result of melting of the polar caps and glaciers, flooding and
more extreme weather events. Broader policies to reduce transport emissions and provide
alternative non-carbon energy sources will help in trying to achieve these targets. The con-
struction process accounts for 10 per cent of carbon emissions and the building throughout
its life accounts for 90 per cent.
Each EU country has a broader national adaption plan, in relation to tackling global
climate change, that establishes, for example, strategies for reducing pollution, increasing
recycling and dealing with its adverse effects such as flooding. At the UN conference in
Katowice in December 2018 a protocol for measuring emissions was agreed internationally.
Carbon reduction is a preferred term to energy use as it represents the impact on climate
change more effectively and a difference exists in the carbon produced by fuels or recognised
as embodied in various materials by non-renewable fuel in manufacture and in that produced
using renewable energy. If products are not sourced locally, transporting them results in
additional carbon use. Energy use in buildings is boosted by heat loss and efficiency of heat-
ing and cooling. There are many other electrical requirements such as lighting. Production
requirements and type of building use are considered separately though there are design
considerations of layout such as day lighting and shading and thermal mass.
The Carbon Reduction Commitment (CRC) initiative began in April 2010 in the UK
and is designed to reach European targets by encouraging companies to adopt good carbon
behaviour. It requires large carbon companies to baseline their use of carbon in the first year
and to progressively reduce their carbon emissions to a target schedule or pay a penalty for
non-compliance. Carbon swaps are possible by making carbon savings in other areas. Case
study 12.15 describes the specific targets of a particular organisation in meeting CRC.
Case study 12.15 Zero-carbon building targets: the case

for NHS England40
Consider the NHS as an example of achieving government targets for reducing CO2
emissions. It accounts for 24.7 million square feet of buildings on 6252 sites, which, in
terms of energy use, collectively produce 4.07 million tonnes of carbon (17 per cent of
their carbon footprint). Further, the NHS could make a 15 per cent saving on procure-
ment (all consumables such as drugs) and by using alternative energy sources and
7 per cent by providing less intensive models of care.
These savings are transformational but still only just about equals the UK target of a
38 per cent saving by 2020 on the 1990 baseline, reducing carbon emissions from 22 to
14 million tonnes because emissions started rising again in 2000. Carbon credits might
be achieved by planting trees, providing sustainable public transport and better waste
reduction facilities and increasing recycling.
For a project manager, there is a need to cover broad sustainable targets in the feasibility and
strategy stage, including building use and user models and then to focus on implementation
strategies in the design and construction phases of the project life cycle to ensure compliance.
The client will be involved mainly in defining targets, but their objectives and user characteris-
tics are important in defining the technology that will implement and procure for these targets.
With time, more efficient technologies will play a growing role in achieving tighter targets.
Renewable technologies
One of the many ways in which to gain credit in environmental assessment is to prove
that you will be sourcing energy from renewable sources. This can be expensive as capital
costs can be quite high in relation to the outputs; however, as the technology becomes more
familiar so costs will fall. In the UK, the government is offering a renewable heat incen-
tive (RHI) that pays a dividend to any metred energy generation that does not use power
from the National Grid. RHI helps to cut down the payback period of capital plant and/
or reduces the cost to the user by giving quarterly or annual cash back. It pays a certain
amount per kilowatte produced over a set period of years, which can be offset against the
capital cost of installation. A feed-in tariff is also offered by the government for local gen-
eration of renewable energy, which is metred and the energy effectively fed back into the
National Grid. Commercial schemes also have some incentives. Typical forms of renew-
able technology are:
• Central heat and power (CHP) systems, which are power plants capturing heat from
the generation process to heat water or air and run heating systems. District systems are
commonly linked with CHP systems. They are better powered by non-fossil fuels.
• Biomass boilers, which are very efficient wood burners using logs, woodchips or pel-
lets, allowing recycling of trimmings from managed woodland. They need a sustainable
timber. Buffer HW tanks are necessary to store off-peak production and to boost peak
supply. They also need to treat the pollutive NOx gases from wood burning. They may
be used for CHP systems also.
• Ground source or air source heating units, which draw latent heat from the air by refrig-
erating an external source and from the ground by using the latent heat sink in the soil.
Ground source requires either a borehole or a piece of landscaped ground to install a set
of buried water pipes that pick up the latent ground heat. Approximately 30–50 per cent
of energy generated is used to run the pumps and fans. In air source heating units, lower
outside air temperature reduces conversion efficiency.
• Wind energy, which is harnessed with a wind turbine. It can be an interrupted supply,
if the rotors are becalmed, and thus needs backup in the form of batteries. Small tur-
bines at low level provide minimal supply. Harnessing off-shore wind provides a more
reliable source but is expensive. Technology such as floating turbines may reduce this
cost difference.
• Wave turbines, which use tidal movements and waves to produce a continuous output.
• Hydro-electric power, which uses gravity-fed water to drive electricity-generating
turbines.
• Solar power, which is a heat source used to boost hot water supply and wet heating
systems.
• Photo voltaic cells, which convert heat to generate electricity, which is then stored in
batteries.
• Biogas waste systems, which capture methane and other waste gases from sewage and
rotting vegetation to produce heat.
Design choice should take into account how a particular type of technology will be used by
the client, the rate of such use and peak use. Capital payback may be over a long period;
however, often the lower running costs make it viable, especially where capital grants are
available to offset steep initial investment, such as in Germany. Small-scale incentives like
RHI make take up of renewable technology initially attractive; however, these are scaled
back as costs decrease. A feed in-tariff (FIT) is based on the value of electricity generated.
Case study 12.16 considers a renewable technology.
Case study 12.16 Biomass boiler

The Royal Agricultural University installed a 220 KWh biomass boiler that heats its
library and three adjacent teaching blocks. The opportunity to do so emerged when
the college needed to change expensive oil-fired boilers at the end of their life and also
reduce its carbon emissions by 34 per cent in compliance with higher education targets
for 2020.
The boiler, two large heat sink facilities for heat storage and a wood chip storage
facility were installed in a new boiler house and district heating pipes ran in shallow
trenches to the adjacent buildings. The project was made affordable by the receipt
of grants to cover some of the extra capital cost. Running costs are expected to be
similar to those for gas but considerably cheaper than oil, which is the only fossil fuel
alternative in this location. Via the RHI scheme, the university will also receive quarterly
cashback. Air quality of emissions is good and the high-quality boiler is 90 per cent
efficient and treats the waste gas for NOx emissions within prescribed limits. It was
necessary to raise the standard flue height to clear the screening effect of nearby trees.
The university has considered the possibility of harvesting its own fuel through the
farms that it owns. This will be the subject of a further cost–benefit analysis. University
buildings use less heat in the evenings and they can reduce output to 30 per cent
without ‘turning off’ the boilers, which means they can store any excess heat in heat
sinks to release during periods of peak demand and to save fuel. The boiler house also
includes two back-up oil-fired boilers for very cold periods and as a back up in case of
fuel shortage or boiler maintenance.
New student accommodation blocks were connected later and the boiler capacity
increased. Some of the capacity was saved because student accommodation required
most heating outside of teaching hours.41
Renewable energy schemes are sometimes difficult to justify because of their capital cost
and wind and solar systems often generate below their predictive capacity and need conven-
tional back up for times when there is no wind or sun. The case for zero carbon is usually
made with renewable power that neutralises the carbon emissions of conventional back ups
by feeding into the National Grid.
Reducing waste and boosting recycling

Reducing waste – that is, by optimising design and wasting less of what is specified – is a
primary and necessary approach to sustainable development, as it represents a more radical
understanding of the limitation of physical resources that can be used in the provision of
the built environment, including buildings and civil engineering, so that less is better than
recycling. It is radical because, taken to its logical conclusion, it challenges our assumptions
of usage. A designer needs to challenge a client by asking if certain things are needed, for
example in terms of electricity use. This approach can be uncomfortable and also affects the
supplier. Specific types of waste have become environmentally unfriendly, such as plastic
products that end up in the sea and have ecological consequences.
Recycling is a pragmatic response to the developed environment as we currently see it and
as projected into the future when trying to mitigate the effects of throwing things away by
reusing them. It is a commonsense approach that also makes economic sense. It challenges
our attitudes on a moral level by asking why we are wasting things and do we even need such
things in the first place, e.g. packaging.
The ‘do you need it?’ approach is applied at the conception and feasibility stage of the project
life cycle and needs to be considered by a client as part of portfolio and programme management
because the answer will affect all current projects as it emerges from organisational strategic
planning. Value analysis at its earliest stage is a necessary tool for considering this and as such
needs to question normal assumptions of usage and present alternative intrinsic innovative solu-
tions that may impact on company ways of doing things and reduce space requirements.
Design to reduce waste, for example reuse of foundations, has maintained similar foot-
prints in new buildings. Technologies to enhance reuse in new contexts are broadening, e.g.
grain from used tyres in asphalt. There is a duty of care to ensure structural stability, health
and safety, life cycle consumption and to reduce embodied energy in recycled materials, espe-
cially if they are sent offsite to be processed. A particularly fruitful consideration is reducing
excavation and its removal from site, which alleviates noise and nuisance to people in the
vicinity and local streets, reduces fuel use and saves on the cost of excavation ‘cart away’
and its associated land fill tax. Excavated soil can be used onsite for sound attenuating bunds
or as a cut and fill exercise on sloping sites. Top soil can be stockpiled for reuse or sold.
Decontamination is also possible through careful sequencing and planning, whereby soil is
‘washed’ to remove chemical contamination and thus no longer needs to be removed and
replaced by imported virgin hardcore. Surface water run off can be reduced by storing it to
recycle as grey water or by using permeable or less paving so that drainage pipes are smaller
(SUDS).42 Planting trees saves carbon and provides shade and wind breaks. People appreciate
the natural environment and may work harder as a result.
Recycling offsite can be a problem because it might not actually happen, products may
be transported long distances for both processing and reuse and the process itself might pro-
duce carbon emissions; plasterboard waste is an example of this. It is sensible to establish
a unique recycling plan for each project, hence the use of dedicated site waste management
plans and the sourcing of local recycling projects. Recycling steel reinforcement or beams
after demolition can be very efficient because doing so is already an established part of the
manufacturing of most new steel. It is more efficient to recycle concrete after it has been
crushed and is still onsite. Recycling onsite, such as the reuse of concrete for aggregates,
may be efficient as it reduces the use of non-renewables, carbon from transport and the harm-
ful impact of quarrying. It is a design and production issue.
Recycling is not a simple issue. For example, offering wasted plasterboard to a local man-
ufacturer for reuse presupposes wasteful site use and/or poor design. Could this issue have
been addressed by using standardised plasterboard sizes, providing more packaging, training
workers so that plasterboard is not damaged during the construction process or simply han-
dling and storing it better? Reducing or omitting cutting, carrying and sorting of plasterboard
also results in a labour saving. Delivery miles and waste costs are saved. A 1960s high rise
building will produce fewer salvaged materials but less energy is needed to demolish it.
The designer’s choice of materials has to balance capital and durability costs against easy
breakage, future recycling possibilities and cost of dismantling and reuse. They need to con-
sider the embodied carbon of recycling such materials as well as in use. In a post-stressed
structure there might be prohibitive dismantling and reuse costs. Can the building be more
sustainably refurbished if the space layouts are flexible for several types of use? Are the costs
of retrofitting better than the costs of rebuilding to offset the level of carbon emissions in new
build? Is space at a premium in a city?
Carbon reduction in design and services

Carbon reduction is considered at the early design stage and also in functional analysis. Prior
to that, strategic planning identifies the impact of expansion and portfolio planning identifies
the interconnection between asset management and provision and the outputs of the com-
pany. Hence, a new office may be reduced in scope and size by ‘hot-desking’. Alternatively,
staff may be encouraged to work from home to reduce office provision and save the carbon
produced by commuting; however, this approach will increase home use of electricity and
heating. Case study 12.17 shows some example costs of reduction.
Case study 12.17 Asda Stockton retail base case

This model case study is an Asda store in Stockton with a floor area of 9,393m2 over
two levels. About three-fifths of this is the sales area and two-fifths is occupied by stor-
age, including cold storage, a staff cafeteria and a bakery. It is a base case analysed for
Target Zero and has a carbon neutral design. It brought up several interesting compara-
tive findings. In order to be compliant with the Building Regulations 2010, it saved 35 per
cent of carbon, 0.36 per cent on capital cost and £973,575 on the NPV cost. The store
would have saved 51 per cent carbon on the Building Regulations 2006 threshold at an
uplift of 0.8 per cent capital cost and 58 per cent carbon at an uplift of 5.2 per cent cost.
On a broader economic, environmental and social scale, the estimated capital uplift
compared with the BREEAM ratings is:
Very good 0.24 per cent uplift of capital cost.

Excellent 1.8 per cent uplift of capital cost.
Outstanding 10.1 per cent uplift of capital cost.
This last figure is far from carbon neutral, so the store would require renewable energy
such as a wind turbine to comply, which would ratchet up cost. Location is important in
relation to public transport credits and ecological enhancement and can vary consider-
ably from site to site. A rural site would lose out on improving existing ecology and on
good public transport. It is predicted in the model that a target of zero carbon use by
2019 will mean an uplift of cost of 14.7 per cent on the 2002 standards. True zero car-
bon without credits will be an even higher cost.
Acknowledgement to Target Zero43
Building engineering physics is closely associated with the design of building fabric to
encourage lower energy buildings and as such covers the areas of energy loss and thermal
performance, air movement, control of moisture, ambient energy in terms of solar heat and
light, acoustics, lighting, climate impacts such as wind and heat gain and day lighting and
human physiology relating to comfort. These may be controlled naturally by encouraging
heat and cooling flows into the fabric and layout or by using heating or cooling systems or a
hybrid of the two. Under sustainable design, it is preferable to reduce dependency on machin-
ery that delivers high carbon usage.
Under natural systems, the exact building requirements need to be modelled and occupant
numbers and habits known. Layout, orientation and shading control are critical and control-
lable purge venting and thermal storage need to be introduced, bringing building engineering
physics considerations into the structural and architectural concept stage of the design.
Planning consent also requires a statement of intent in reducing carbon transmissions and
increasing acceptability of the building form and use in the community. This will involve
both social aspects such as transport and stakeholder consultation, as well as a commitment
to methods of reducing energy use and/or generating renewables in the environment. The
BREEAM provides a complex but still basic assessment of building performance in these
areas and generally a commitment to achieving a particular level, for example ‘excellent’.
Carbon reduction in production

This deals with the construction and procurement stage of construction and, as such, only
really refers to the management section of BREEAM, which covers commissioning, the
Considerate Constructors Scheme, construction site impacts and building user guide. Over
90m tonnes of production and demolition waste is produced each year on UK building sites –
four times the rate of household waste; 13m tonnes of these are unused materials ordered in
error. Nearly one-third of all fly tipping in the UK involves construction or demolition waste.
Site waste management plans (SWMPs)

Site waste management plans (SWMPs) are specific plans that are made for reducing,
recycling and managing waste onsite. They are a sensible planning procedure that gains
BREEAM points. They should be agreed with the client and a specific site manager needs
to be responsible for the plan. On restricted sites it is difficult to accommodate recycling of
all types of waste. The aim is to help reduce construction waste to zero. Site waste can be
determined according to three broad categories:
• Inert waste means waste that does not break down and is cheaper to send to landfill
sites because it does not produce side products like methane. Landfill tax applies at the
lowest rate.
• Active waste is waste that does break down and is subject to an escalating tax rate that
makes dumping progressively expensive.
• Special waste is classed ‘hazardous’ and as such must go for further diagnosis and
special dumping and carrying procedures dependent on the nature of the hazard, e.g.
asbestos or contaminated soil.
Inert waste such as that produced during excavation may also be hazardous; for example,
it may be contaminated on industrial sites or affected by leakages; this may limit its reuse.
Washing down during construction may also be polluting if chemicals are used, such as
façade cleaning and washing out concrete wagons. Wash water may not be accepted in
drains or rejected if it leaches into water courses. Active waste will need to be licensed
and sent to specific tips, which is expensive. Hazardous waste needs to be treated or
dumped at dedicated tips. For this reason, it is more popular to treat contaminated soil
waste onsite and reuse it in situ. Alternatively, contamination is sealed in so that it will
not reach the surface or leach into water courses. There are some unavoidable materials
such as asbestos.
The Environment Protection: Duty of Care Regulations 1991 established compulsory pro-
cedures to ensure waste is categorised, tracked with proper paper work and removed and
dumped in licensed tips by certified contractors. As a part of the sustainable communities
programme, there is a drive to improve brownfield sites as soon as a new development is
mooted, and this is the responsibility of the owner.
Preparation
Site waste management plans are prepared to show where reductions in waste can be made
and to provide a framework for implementing them. They need to be a little challenging
to be effective and must not replicate standard achievements. A continuous improvement
model should be aimed for. A voluntary code of practice for SWMPs44 has been adapted and
described below:
• Appoint an individual to prepare and be responsible for implementing the plan before
construction work begins. This is usually the principal contractor.
• Identify the types and quantities of waste and where you will dispose of them.
• Identify management options and rank them according to a waste treatment hierarchy of
reduce, recycle or dispose.
• Organise your waste and use licensed waste contractors.
• Train staff and subcontractors to identify and segregate waste.
• Measure actual waste streams to compare with targets.
• Monitor implementation and be prepared to update plan during use.
• Put security measures in place to prevent illegal disposal of waste.
• Feed back for next time.
SWMPs will work if good communication exists up and down the supply chain, reaching
down to those tiers that order, produce and install the material. A co-ordinator is appointed
who can establish a recycling centre and improve and incorporate different sub-plans into a
master plan in the manner of health and safety method statements. This master plan should be
integrated for possible site reuse of materials by others. Incentivised targets should be estab-
lished to encourage continuous improvements against the plan and monitoring to address
slippage; once a material is wasted it is difficult to reincarnate. Training can be integrated
through toolbox talks to make sure there is a regular reminder of the need and feedback on
the benefit. Feedback will mean checking the effectiveness and cost of waste dumping and
offsite recycling. Once the client has signed the plan there is a commitment to reach the
targets and a responsibility on behalf of the client to ensure that it happens. Other actions
are to ensure that there is no over-ordering and that the buying department is kept up to date
with recycling and reuse so that long delivery orders are not abortive and suitable credits are
invoiced. Communication is critical in all these areas.
Timely information and change management procedures are important and a client mak-
ing changes at a late stage needs to consider the impact of abortive costs and waste where
the specification changes or work is ripped out. A contractor needs to have a system for fol-
lowing through the impact on existing orders and recycling on the specialist suppliers and
contractors.
Fly tipping is a criminal offence and can be subject to large fines or even imprisonment. It
means dumping waste on ground not licensed for waste or that type of waste and not check-
ing whether someone has a license for waste disposal.
A site management plan is best accompanied by a checklist and a monitoring form, which
may look like Figure 12.6.
In setting up recycling, a reserved area needs to be identified onsite that is accessible
for skip lorries, as shown in Figure 12.7. It is no good having specific skips unless they are
labelled with absolute clarity so that materials can be recycled effectively. Materials also
need to be weighed or measured in each bin and recorded. A sorting area and hard standing
are required.
Waste type Quantity (m3)

Disposal to
Reused onsite Reused offsite Recycled onsite Recycled offsite
landfill
Inert
Active
Hazardous
Type 1
Type 2, etc.
Totals (m3)
Performance
score as %
SWMP targets
Figure 12.6 SWMP monitoring table to track and target waste material
Plaster-
Timber Concrete
board
Sorting and
recycling area
Other Inert Hazardous

Steel material
metal waste
Figure 12.7 Typical waste management layout

Implementation Checking and Management

Environmental
Planning and corrective review
policy
operation action
Continuous improvement
Figure 12.8 EMS process chart45
Environmental management systems (EMSs)

An environmental management system specifies a process for controlling and improving an
organisation’s environmental performance. It will be applied here in the context of project
management. An EMS provides the ability to deal systematically with implementing policy
and complying with complex regulations. It is not compulsory but gains client confidence.
Figure 12.8 indicates the main elements of the system.
ISO14001:201546 is a worldwide standard for managing and mitigating environmental
impact. It requires a formal system of monitoring and reporting by a third party. Its purpose
is to identify how the project impacts upon the environment and the effect of the environment
on the project. The second part has been added in the 2015 version to acknowledge the need
to design for issues such as climate change that are likely to have long-term impacts on new
infrastructures and building users like flooding, rising temperatures and cooling. There is a
need to understand and comply with the laws and regulations that affect these areas, to pro-
duce objectives for improvement and to set up a control system to achieve them. Internal and
external reviews are needed to identify improvements. Care should be exercised in project
work to ensure that the EMS is relevant to the project itself as the system is business orien-
tated. The company needs a sub-structure to develop each of its projects.
The European Eco-management and Audit Scheme (EMAS) is site-based, refers to an
existing company environmental policy and stresses continuous improvement. The process
is identified and quantifiable data is generated on current emissions, environmental effects,
waste generated, raw materials utilised and energy and water consumed. Communication is
an essential factor and motivation will improve if outputs are explained in terms of meeting
project requirements or benefitting future business. An EMAS verifier may be involved to
ensure company statements are correct. Case study 12.18 describes one contractor’s use of
an EMS.
Case study 12.18 Large contractor environment

management system47
A large contractor scores 93 per cent on the assessment to determine if it can be part of
BITC and runs an EMS based on ISO 14001 in the UK and with some of its Canadian
business. This system ensures that it has training and monitoring procedures in place
for all of its projects. It sets targets each year to reduce its carbon footprint and uses
the EMS to comply with government-set carbon reduction commitments (CRCs). It pre-
pares environmental risk plans for each of its projects for which it identifies specific
mitigating actions and the top five risks are considered to be:
• water pollution
• waste management
• impact on wildlife
• environmental nuisance offences
• reducing carbon use.
It provided 600 people hours worth of training to its 4000 employees via team talks, pro-
ject discussions, targeted emails and web conferencing. It uses an outside organisation
to audit its performance. Of its employees, 83 per cent view it as a leader in environ-
mental management.
EMAS is a specific system and a number of other organisations, such as BITC and WWF,
have different standardised requirements and expectations. Case study 12.18 describes the
practical benefits of an EMS connected with other environmental indicators.
The Green Dragon Environmental Standard is a stepped approach to environmental
management systems and audit. It recognises five levels of compliance that smaller or less-
involved organisations can follow to achieve full certification. These are commitment to an
EMS, understanding, managing impacts, establishment of an EMS programme and continu-
ous improvement. In addition, BS 855548 has been developed for SMEs and is much less
cumbersome to develop.
Conclusion
Buildings use 45 per cent of the world’s energy so there is considerable scope to design
buildings that are more energy-efficient in use and to reduce carbon use in their construction.
Sustainability is an important element of the delivery of buildings in social, environmental
and economic terms because it can save money in the long term in the form of paybacks from
less energy use and creation of a positive reputation with desirable clients. Users and facili-
ties staff need to be trained to use the technology in an effective way to achieve predicted life
cycle savings. Environmental assessment systems are being used internationally across the
world to predict levels of excellence and test buildings in use before final rating certificates
are issued. There is still some way to go to make the systems easier to use and to make dif-
ferent systems comparable. Climate and location should be acknowledged in the weighting.
Government policy across the world is mostly attuned to the Paris Agreement. Carbon
reduction commitments mean that buildings need to be zero carbon in use by 2050, which
converts to a 34 per cent reduction on CO2 emissions by 2020 from the 1990 base date. In
the UK, the Carbon Reduction Commitment is a key player in improving private and public
building performance and government strategies provide key documents for ensuring that
sustainability targets are met by restricting carbon emissions. The public sector needs to be
an exemplar for these targets, which some governments have accepted. The development
approval process is often used to ensure that sustainability and environmental impact have
been assessed in design but does not usually make approval dependent on in-use testing.
Building codes can be used to prescribe deemed to satisfy thresholds and to allow more
innovative testing regimes. Design must comply with minimum code requirements and these
thresholds are constantly ratcheted upwards to match cheaper and emerging technologies and
work towards government zero carbon targets. Green Building Councils are used to police
the requirements of environmental assessment, which is one of the few ways to rate building
sustainability.
Environmental assessment methods primarily impact designers in terms of gaining rat-
ings from building use, but cover a wide range of environmental factors beyond carbon
reduction. CEEQUAL is used for civil engineering projects and best covers landscaping.
There is growing confidence in the use of these assessments but they could still be clearer
on the source of materials.
Ethical procurement and sourcing of materials is an important part of social sustainabil-
ity to ensure renewal and equitable conditions of production and reward. There is a need to
track production and identify unfair social conditions. Social conditions of manufacture and
production are of increasing interest to the credibility of sustainable buildings. Sustainable
procurement also covers the area of localism and other community factors, for example local
employment. The project manager has a professional responsibility to ensure that the client
is supportive of sustainability and ethical sourcing by guiding them and making them aware
of good practice.
The environmental management systems (for example, ISO 14001) help strategic plan-
ning and the targets are assessed by a third party. Contracting companies include economic,
environmental and social sustainability in their CSR, but there is still some scepticism that
the reporting is self-serving and ineffective.
There is much that can be improved – for example, better sourcing, more innovative
technology – to attain higher environmental assessment grades routinely and at less cost
and to make sure that smaller companies are able to understand their role in refurbishment
of buildings.
Notes
1 UN Commission for Sustainable Development (2015) Sustainable Development Goals: Goal 9.
Available online at: http://www.un.org/sustainabledevelopment/infrastructure-industrialization/
(accessed 6 December 2017).
2 Using the 2030 Agenda for Sustainable Development, the UN worked to mobilise efforts world-
wide; 180 nations signed up to the Paris Agreement 2016 (the USA withdrew in 2018). Goal 9 refers
to building resilient infrastructure, promoting sustainable industrialisation and fostering innovation;
Goal 11 refers to the need to make cities inclusive, safe, resilient and sustainable.
3 UNESCO (2005) Sustainable Development. Available online at: http://unesdoc.unesco.org/
images/0013/001393/139369e.pdf (accessed 16 November 2011), p. 4.
4 Centre for Science and Environment (2014) 02 Energy and Buildings. New Delhi, Centre for
Science and Environment.
5 Royal Academy of Engineering (2005) Engineering for Sustainability: Guiding Principles. London,
Thomas Telford.
6 King D. (2010) Engineering a Low Carbon Built Environment. London, Royal Academy of
Engineering.
7 Innovation and Growth Team (IGT) (2010) Low Carbon Construction: Emerging Findings. London,
Department for Business Innovation and Skills. Note that preliminary percentage calculations are
available at http://www.bis.gov.uk/constructionigt and are preliminary.
8 Building Research Establishment Environmental Assessment Method.
9 Leadership in Energy and Environmental Design.
10 See http://www.passivhaustrust.org.uk.
11 Brundtland Commission (1987) Our Common Future. World Commission on Environment and
Development. Oxford, Oxford University Press.
12 Department for Business Innovation and Skills (2013) Construction 2025 Industrial Strategy:
Government and Industry in Partnership. London, The Stationery Office.
13 O’Doherty M. (2014) Greater Manchester Goes all Retro(fit). Energy, Housing and Society.
Available online at: http://ontheplatform.org.uk/article/greater-manchester-goes-all-retrofit
14 PAS 2050:2011 Specification for the assessment of the life cycle greenhouse gas emissions of
goods and services. Available online at: http://shop.bsigroup.com/upload/Shop/Download/PAS/
PAS2050.pdf (accessed 12 August 2018).
15 International Organization for Standardization (ISO) (2013) ISO/TS 14067:2013 Greenhouse
Gases – Carbon Footprint of Products – Requirements and Guidelines for Quantification and
Communication. Available online at: https://www.iso.org/standard/59521.html (accessed 14
August 2018).
Construction and Thoughts for Our Future. London, Constructing Excellence, p. 17. This report
concludes that some progress has been made towards achieving targets for better health and safety,
better profitability and productivity but predictability in terms of cost, time and quality has not
been addressed. To focus on issues of sustainability, an integrated business model is required that
involves clients in the bigger process of the built environment and does not regress to competitive
tendering.
the Regions.
18 Wolstenholme, p. 17.
19 Fewings P. (2008) Ethics for the Built Environment. Abingdon, Routledge, pp. 183–184.
20 EC Europa (2018) Corporate Social Responsibility. Available online at: http://ec.europa.eu/growth/
industry/corporate-social-responsibility_en (accessed 16 January 2018).
21 Carling J. (2016) Project Focus: Wessex Water Ops Centre Gets Sustainability Upgrade. Available
online at: https://wwtonline.co.uk/features/project-focus-wessex-water-ops-centre-gets-sustainability-
upgrade (accessed 8 August 2018).
22 CEEQUAL (YEAR) What is CEEQUAL? Available online at: http://www.ceequal.com/what.htm
(accessed 21 November 2017).
23 Venables R. (2009) Compendium of CEEQUAL. New Civil Engineer, 28 May 2009.
24 CEEQUAl (2014) Case Study: Kai Tak Development – Reconstruction of Kai Tak Nullah. Available
online at: http://www.ceequal.com/case-studies/kai-tak-development-reconstruction-and-upgrading-
of-kai-tak-nullah/ (accessed 23 August 2017).
25 IFMA Foundation (2010) Sustainability How-To Guide Series. Green Building Rating Systems.
Available online at: http://www.ifmafoundation.org/documents/public/BuildingRatingSystems.pdf
26 Expanded information from IFMAF.
27 BRE Passivhaus (2014) The Passivhaus Standard. Available online at: http://www.passivhaus.org.
uk/standard.jsp?id=17 (accessed 5 January 2018).
28 Channel 4 (2018) Grand Designs, 4 January 1 2018. The architects for this project were Helen and
Chris Seymour-Smith.
29 United Welsh Housing Association/DCFW (2010) United Welsh Passivhaus: Exemplar Case Study.
Available online at: https://dcfw.org/larch-house/ (accessed 20 August 2018).
30 Design Commission for Wales.
31 Gulacsy E., quoted in Parker J. (2009). BREEAM or LEED: Strengths and Weaknesses of the
Two Main Environmental Assessment Methods. Building Services Research and Information
Association (BSRIA). Available online at: http://www.bsria.co.uk/news/breeam-or-leed/ (accessed
24 June 2018).
32 European Union Directive on Energy Performance of Buildings (2002/91/EC).
33 Robbins M. (2014) 8 Tips to Reduce Your Building Carbon Footprint. Metal Architecture.
Available online at: https://www.metalarchitecture.com/articles/8-tips-to-reduce-your-building-
carbon-footprint (accessed 30 September 2018).
34 Young A., Annereau N.., Butler A. and Smith B. (2013) Case Study: The Leadenhall Building.
International Journal on Tall Buildings and Urban Habitat. Available online at: http://global.ctbuh.
org/resources/papers/download/19-case-study-the-leadenhall-building-london.pdf. (accessed 11
June 2017).
35 Building Schools for the Future (2009) Case Study on Brislington Enterprise College delivered by
Bristol LEP. Available online at: http://www.se-ed.co.uk/sites/default/files/resources/Brislington_
Enterprise%20College%20March%202009.pdf (accessed 16 January 2018).
36 Considerate Constructor Scheme (2018). Code of Practice Available online at: https://www.
ccscheme.org.uk/ccs-ltd/code-of-considerate-practice-2/ (accessed 8 August 2018).
37 BES 6001 (2014) BRE Environment and Sustainability Standard. Issue 3: Framework Standard for
Responsible Sourcing. Available online at: http://www.greenbooklive.com/filelibrary/responsible_
sourcing/BES-6001-Issue-3-Final.pdf (accessed 5 January 2018).
38 BRE 6001 (20014) BRE Environment and Sustainability Standard. Available online at: http://
www.greenbooklive.com/filelibrary/responsible_sourcing/BES-6001-Issue-3-Final.pdf (accessed
14 September 2018).
39 Worldwide Responsible Accredited Production. Available online at: http://www.wrapcompliance.
org/12-principles (accessed 16 January 2018).
40 Sustainable Development Unit (2012) Carbon Footprint Update for the NHS in England, quoted in
NAO Briefing for the House of Commons Environmental Audit Committee 2015.
41 Royal Agricultural University (2018) Sustainability at RAU. Available online at: https://www.rau.
ac.uk/about/organisation/public-information/sustainability-rau (accessed 29 June 2018).
42 Sustainable Urban Drainage System.
43 Target Zero (2011) Guidance on the Sustainable Construction, Low Carbon Supermarket Buildings,
Supermarket base case, p. 9.
44 Department of Trade and Industry (DTI) (2017) A Simple Guide to Site Waste Management Plans.
Available online at: http://www.netregs.gov.uk/media/1114/swmp_simple_guide.pdf (accessed 12
July 2018).
45 IEMA (2008) EMS Explained. Available online at: http://www.iema.net/ems/emsexplained
(accessed 1 February 2018).
46 ISO 14001:2015.
47 Carillion (2010) Sustainability Report: Environmental Management System. Available online at:
http://sustainability12.carillionplc.com/downloads/carillion-sr2010-environment.pdf (accessed 21
November 2011), p. 81.
48 BS 8555 (2003) Environmental Management Systems. Guide to the Phased Implementation of an
Environmental Management System Including the Use of Environmental Performance Evaluation.
Available to purchase at: https://shop.bsigroup.com.
13 Digital construction
The digital construction agenda aims to radically transform construction through the use of
many autonomous technologies, such as building information modelling (BIM), as strategic
integration tools to co-ordinate the delivery and maintenance of built assets. The need to
eliminate waste, add value and improve safety has provided the momentum for building in
‘smarter’ ways.
What? Digital construction is an intentionally broad heading for an integrated approach
to the new technologies that are beginning to infiltrate building and civil engineering in
order to make building safer and more productive. Computer-guided manufacturing offers
opportunities for robot-controlled manufacturing. Artificial intelligence (AI) offers the pros-
pect of machines that take out some of the repetitive, dangerous and routine tasks that are
involved in design, control systems, manufacture and assembly, adding, in the process, a
new level of analysis. Virtual reality (VR) offers help in visualisation and supports the design
and decision-making process. Drones and laser measurement offer digital approaches to sur-
veying by providing direct graphical representations of topography and the setting out and
recording of already existing built structures. Combined with structural design programmes
such as BIM they can set up structural alternatives for innovative design and automated
offsite manufacture. The building Internet of Things (IoT) offers further connectivity, which
allows for the collection of information to enhance the user’s ability to control access, meas-
ure outputs and energy use and provide more efficient ways of managing security, fire safety
and energy saving. Ultimately, this technology can provide a feedback loop into the design
process for improving the sustainability of future buildings and neighbourhoods. The univer-
sal collection and integration of data in BIM also impacts on the ethics of privacy, security
and copyright. Use of social media can also provide a way forward for soft communications.
This chapter provides an overview of the processes that are being developed that will aid,
but also transform, construction methods and boost productivity by:
• promoting the significance of digital construction

• developing an understanding of BIM as a management tool for construction project
managers
• demonstrating the integrated processes and applications of other digital technologies
• relating the need for transformation with information management.
Why? Digitised construction is a way of widening communication channels and integrating

the working relationship between various members of the project so that there is a more
transparent collaborative culture that can access the power of modern forms of communica-
tion. It should not be a ‘takeover’ of existing attempts to work within more collaborative
contracts, but a tool that is able to encourage early planning and interoperability between
sometimes exclusive technologies. More importantly, it has the power to be more predictive,
to improve asset utilisation, unite the team vertically throughout the project life cycle and be
inclusive of the operational life cycle. AI and VR should help to engender a knowledge-based
approach by providing a virtual test bed for untested and unique projects. This would help
the quality and safety agenda and improve the ability to assess risks more robustly. There
is potential, therefore, to improve the reputation of the industry. However, the technology
needs to be used intelligently and developed incrementally to allow the culture of the indus-
try to change so that the new ways of working can take up the slack of low productivity and
fragmentation. A non-integrated, over-layered approach would add more bureaucracy to the
How? The construction industry has lagged behind in the adoption of technologies such as
BIM, computer-directed manufacture and quality assurance so there is a continuing process
of convincing a broader spectrum of players, even though the take up is increasing and more
tools have been dedicated to the specific challenges of construction. Given that this tech-
nology is now used extensively by early adopters, and to some extent by the early and late
majority through regulation, appropriate use is important so that it creates value. The process
needs to streamline the workflow and integrate processes and knowledge that move away
from the ‘over the wall’ mentality of silo thinking and protected design copyright to the crea-
tion and operation of complete models. As this is a book on project management, workflow
process and behaviour will be the focus of this chapter. Digital construction will be applied in
case study examples to different parts of the project cycle and to the different processes that
need to be integrated, e.g. quality assurance, risk and schedule. Project execution efficiency
has to be integrated with the management of the building post-handover, where much effi-
ciency can be derived from passing on rather than recreating the information of a rich BIM
model (see Chapter 15). Collaborative technologies like BIM require the early integration of
design and construction teams, which, in a fragmented industry, should avoid some conflict,
particularly if clients are prepared to underpin this philosophy and become part of the team.
This means a cultural change for all in terms of both transparency and trust.
We will take an incremental approach to transformation. There are many other textbooks
that can give space to specialist and detailed technological commentary and process trans-
formation.1,2 BSI 1192-2:20133 is the standard for BIM adoption level 2 and ISO 19650-1-54
are the international standards currently being developed. The BIM Task Group5 is another
important supplier of protocol information.
Digital construction strategies

Technology has been a strong driver for industrial efficiency in the twenty-first century.
Rapid growth in the manufacturing sector is synonymous with both disruptive and supportive
technologies to semi-automate operations. The automotive sector, for example, has rapidly
risen to the challenge of buyers demanding a more digitalised experience when looking to
buy the next car. We could argue that construction is different because the properties devel-
oped have to last for several generations, but this argument is counter-intuitive. Think of a
house buyer who, after years of saving, buys a property that does not provide the experience
they enjoy in their car and then has to spend more money on remodelling it. Although this
may sound unrealistic as most homes still rely on add-ons to provide a comfortable living
space, construction cannot afford to be stuck in the past and must transform in terms of effec-
tiveness, efficiency and sustainability.
Digital construction 387
The World Economic Forum6 has developed a transformation framework for construction
listing 30 measures of best practice. It highlights three important changes for the industry.
First, it has to be open to innovation so that opportunities provided by new technologies,
materials and tools are harnessed to reduce overall production cost. Second, it has to adopt
mechanised and semi-automatic production systems alongside offsite construction techniques
for faster project completion in a collaborative environment. Every single construction pro-
ject involves a number of strategic and operational decisions made by the client, designers,
contractors and the supply chain, which, through vertical and horizontal collaboration pro-
cesses and resources, will be optimised to deliver what the client wants. Inadvertently, these
decisions generate a volume of data that needs to be integrated and communicated across a
spread of stakeholders, so that solutions are agreed on and value is created effectively.
The integration model we discussed in Chapter 1 highlights the need to bring together
people, processes and products of the construction project to deliver value to the client in a
more efficient and sustainable way. The third area pivots the role of project management so
that design and planning are conscious of cost and procurement, and contracts are designed
in such a way that optimum risk sharing across the supply chain and monitoring benchmarks
are agreed. Embracing digital approaches to construction is increasingly producing positive
results and a growing number of projects that would otherwise pose a high risk of cost over-
run are being delivered on time and to budget. Digitalisation of the procurement process
through, for example, e-procurement, e-tender and e-sourcing have increased co-operation
between the client and contractors as a result of the confidence developed through the sharing
of accurate data and clarity of information so that misunderstandings and cultural barriers are
managed. As a result of all the aforementioned, challenges have to be resolved in a way that
assures project completion by meeting the client’s requirements within the terms and condi-
tions of the contract. Case study 13.1 indicates how the UK government is encouraging the
digitising of construction to make it more cost-effective.
Case study 13.1 Building information management in

the UK
Buildings strategy
Since 2016 achieving BIM level 2 is mandatory in the UK for all new government projects
to target 33 per cent cost reduction and develop faster delivery schedules that will reduce
overall project duration by 50 per cent and emissions by 50 per cent.7 The UK construc-
tion industry has embraced BIM and it is considered instrumental in achieving the goals
set by the Construction 2025: Strategy. In a survey of more than 1000 active BIM users
in the UK, the NBS8 concluded that BIM has been accepted as a useful strategy for
cost-effectiveness and reduction of time from inception to completion. This conclusion
was drawn from the fact that 70 per cent of participants believe BIM reduced develop-
ment costs, including the initial cost of construction, and the whole life cost of built assets.
Another 60 per cent agreed that BIM reduces overall time, from inception to completion,
for new build and refurbished assets and helps to meet the initial target of a 33 per cent
reduction. Not only is BIM accepted in the UK but its impact is felt in many other countries.
(continued)
(continued)
Manchester Town Hall

Manchester Town Hall was a pilot heritage building project that required sympathetic
modernisation for twenty-first century business. BIM allowed a comprehensive laser
scan of existing structures to be assimilated to model existing structures so that a true
understanding of the structure could be employed to advise design changes and to
satisfy English Heritage that this historic building would be respected and protected.
Virtual ‘walk through’ allowed the client to visualise the proposed changes and make
knowledgeable approvals. BIM also informed the production delivery stages so that
adequate support and temporary works could be applied efficiently to generate savings
in both time and money. Energy modelling was possible to inform design and advise
where savings could be made most efficiently. This modernisation project was delivered
in nine months with minimal disruption.9
Future cities
This project applies the Smart City Strategy for integrating smart systems into the physi-
cal infrastructure of UK cities. It involves improvements in transport and construction
of smart buildings that share data with each other and the authorities in order to regu-
late the internal and external environment to improve the quality of life of inhabitants.
Interoperability is a long way off due to the lack of open data in individually-owned
buildings and between authorities, but Digital Building Britain (DBB) is a government
initiative that has this in its sights.
Integration and collaboration

The many stakeholders involved in the scope definition, briefing, designing, construction and
commissioning of the project means that there will be varied interests. Traditional delivery
fragmentation has often starved projects of collaboration that would otherwise bridge com-
munication gaps. If the client shares with the construction team the common goal to complete
the project successfully, the project stands a better chance of experiencing fewer frictions and
faster completion. Stakeholders are an asset to the project when effective channels of com-
munication are developed, so that data and information held by different players are accessed
by everyone in order to make durable key decisions. Tuomi10 refers to the continuum from
data to information to knowledge as the hierarchy of human understanding. A collaborative
team must maintain unlimited access to data and information to enhance its collective knowl-
edge in dealing with problems, thus supporting both decision making and problem solving.
Digital sifting and analysis of data enriches team knowledge.
Front loading time to design and plan for the project in the definition phase will pay off in
the long run as managers and the team are able to anticipate risk and set contingency plans for
problems that can delay and cost 10 times more to rectify if identified after construction has
commenced. Technology enhances solutions through the use of more data and simulation to
pre-identify problems, but also to fast track the construction stage and provide useful, acces-
sible information that will enhance operation and maintenance.
Figure 13.1 underpins the importance of the product as an integrator of technology,
people, processes and organisations within the construction environment. Getting product
performance right is more important than the technology and choices that have to be made,
therefore it is necessary to choose the technology to suit the client and optimise value.
Technology encompasses hardware, software and services provided by technology ven-
dors. These are important tools that enable the process of creating a model that can capture
information and store it in ways that make it sharable in the integrated construction envi-
ronment. Technology enhances the visibility of production systems and subsystems so that
clashes are detected beforehand and resolved. Logistics can be co-ordinated with greater
efficiency so that a quality culture is enhanced across the supply chain.
A construction project is a temporary organisation formed by players from several organi-
sations that contribute the resources needed to achieve the goals of the project. Adopting new
technology has a reciprocal effect on the organisation. First, it may change the way organi-
sations operate in a technologically-enhanced environment, leading to further decisions
regarding what technology should be adopted; second, decisions are made that ultimately
depend on both what they are willing (or able) to afford and accept.
Processes refer to the protocols and standards that are required to manage the workflow
and products in ways that are accessible and do not cause conflict, but reflect change.
The interaction and behaviour of people in the construction process is important because
they can support or reject digitised construction. Without them, technology cannot function
and the processes will stall. It is widely hoped that the people who use these systems will
build up an ability to adapt to new cultures and add value whilst enhancing performance.
It is important to have clear objectives that motivate people to use the new technology.
Communication keeps key players informed and their delegated responsibilities specified
ORGANISATIONS
(Relational integration)
PRODUCT
PEOPLE PROCESS
(Performance
(Role integration) (System integration)
integration)
TECHNOLOGY
(Normative integration)
Figure 13.1 Integrated construction environment

through the channels of communication. Formal and informal sharing of data and informa-
tion is enhanced by ICT in terms of greater understanding.
Cloud technology
Cloud technology provides access to applications or software from any computer connected
to the internet. The user does not need to own the computer but can access information
such as BIM models, emails and drawings from anywhere in the world. This makes it pos-
sible to work remotely using different but compatible hardware. It also provides back-up in
case personal digital devices are lost or damaged. Uptake of cloud technology is increasing
and the construction industry is leading the trend. In 2016, Sage11 published a report based
on a survey of 1500 construction firms in the USA. The report showed that construction
is increasingly using cloud-hosted software for planning and costing, which means daily
site reports, drawings, tender documents, photos and videos are shared online using emails
and mobile apps. The project manager can exchange information with both the client and
the project team through the cloud to speed up critical decisions. E-procurement is a com-
mon practice in many countries. It allows tenders and quotations to be submitted through
an online portal. From 2018 onwards public procurement in the European Economic Area
(EEA) will be submitted online. E-procurement simplifies the publication of contracts and
increases the efficiency and transparency of procurement processes. According to the new
public procurement directive,12 electronic submissions will:
• save cost for both the clients and bidding contractors

• simplify tendering processes and make them shorter
• reduce administration
• increase transparency
• boost innovation
• increase access of SMEs to public procurement markets.
Among consultants and contractors, and their corresponding supply chains, competition is
the main driving force behind reliance on technology but there is also a shortage of appropri-
ate skills and thus a need to work more flexibly.
Building information modelling (BIM)

Building information modelling is a radical technology that has changed the way in which
design, construction and facilities management are executed. It deals with information rather
than raw data. Bew et al.13 define BIM as ‘the process of generating and managing infor-
mation about a building during its entire life cycle’. The Construction Project Information
Committee (CPIC)14 defines it more precisely as,
digital representation of physical and functional characteristics of a facility creating a

shared knowledge resource for information about it and forming a reliable basis for deci-
sions during its life cycle, from earliest conception to demolition.
BIM is radically different from 3D CAD in that it assigns information to objects that can be
selected and have particular properties, e.g. a wall. The properties are standardised for each
object, so a wall would have dimensions (length, height and thickness) but also be made of a
certain material (brick, stone, insulation or a combination thereof). In buildings, an external
wall would be a different object to an internal wall and may incorporate other objects such
as windows or vents. In addition, under the common entity–relationship model, BIM incor-
porates other objects that might create a space, such as a room incorporating a whole range
of objects like an intermediate floor, a ceiling or a door. This 3D approach is now a space.
Spaces can be related to other spaces and to the people who use them, such as a study space or
a bedroom space. This parametric modelling allows either standardisation or choice within
certain constraints. An office space can offer desks and chairs and a bedroom space can offer
beds and limited visibility. A designer can also create new objects, spaces, relationships or
properties. This approach would amount to level 1 BIM. To use it productively, common data
banks and protocols are required. In the UK, the National Building Specification (NBS)15 is
an example of a consistent approach to parametric modelling tied into international protocols.
Eastman16 recognises four unique characteristics of BIM:
• Building components that have intelligent digital representation that ‘knows’ what
they are and can be associated with computable graphic and data attributes and para-
metric rules.
• Components that include data that describes how they behave.
• Consistent and non-redundant data used across components.
• Co-ordinated data that represents views of a model in a co-ordinated way.
Building information models and objects are currently built into as architectural information
models (AIM), building service information models (BSIM) and structural informational
models (SIM) to match the individual specialities that exist in buildings. For real efficiency
gains and clash detection, it is important that standard protocols are used which allow for
integrating and recognising the models and relationships between each of the different dis-
ciplines. These are upheld in the Construction Operations Building Information Exchange
(COBIE) protocol, which has been developed by the BIM Task Force and enshrined in BSI
PAS 1192 so that a layered model can be developed which recognises the objects, compo-
nents and elements that are used by each discipline (and others). Also, relationships need
to be established between, say, a central heating object, a wall object and lighting, heating,
floors, beams and rooms that allow spaces to be populated with objects in sensible ways.
This can be described as a BIM level 2 approach. Ownership of elements of design can still
be maintained, but also an automatic ‘what if?’ facility that is integrated across disciplines.
Standard building contracts can cope with BIM level 2 with minimal adjustment.
In an integrated BIM environment (iBIM) the challenge is to move away from individual
ownership of design to provide a broader trialling of alternatives and option analysis. This
allows radical design changes for optimisation of value within a more detailed system of rules
and dependency on tools and technology. This level of integration requires greater trust and
detailed relationship rules between disciplines. This leads to a BIM level 3 approach, but is
exponentially more difficult to achieve, partly because data levels have to be so much higher
and copyright becomes more blurred. It does, however, have huge potential for optimising
design and execution. Building information models are behind on this level of modelling
partly because of the complexity of the product. Standard contracts need to adjust to estab-
lishing a much more collaborative liability between disciplines and client. The behaviour of
the industry needs to be transformed.
BIM level 3 can be used seamlessly within FM programmes that require integrated room-
based management of the building. For more efficient building use, building managers’
involvement in the planning of the building is critical as at least 60 per cent of cost, and all
ongoing energy use, lies in the operation of the building. Ultimately, high-level understand-
ing may lead to what is termed AI in technology programming.
The common data environment (CDE)

An integrated BIM environment is a virtual workplace that creates a common data environ-
ment (CDE) to facilitate an efficient two-way exchange of data and models. Figure13.2 is
an input (data) process model illustrating a BIM environment. The most important aspect of
BIM integration is that it briefs the project team on the needs of the client to align BIM with
post-project operations. Input data from fully 2D and 3D geometric models from designers
can be output data for other specialist designers, or the construction teams for feedback or
inputs, without affecting data quality and with a reduced risk of data loss.
Why BIM?
The main efficiencies are likely to be:
• automatic elimination of clashes between designers

• standard object-orientated elements of buildings and structures giving instant building
blocks so reducing research on future buildings or generating alternatives.
• standardised distribution of clash-free information for the manufacturing of components
and assembly down the line.
This should produce a pre-checkable quality assurance system along with the radical reduc-
tion of defects and the development of algorithms for repetitive features and complex shapes.
Client’s review and Integrated

quality procedure procurement
BIM
execution Digitalised
plan construction
BIM Strategy
Project/asset
Employer’s information
Common data model
information
environment
requirement
Smart asset
BIM Protocol management
Master
information
delivery plan
Information exchange Smart design
and collaboration
process
Figure 13.2 BIM common data environment

Component interoperability. This new approach to construction, however, has the
potential for introducing radical changes in production as well as for extending the scope
of design, and its spontaneous translation into computer-guided manufacture. This takes it
beyond CAM and increases the complexity of components through new technologies such as
3D printing. In turn, this widens the raw materials used for construction and could perhaps
combine traditional elements, e.g. structure and envelope may be combined in one object.
Data is collected from the different designers and co-ordinated into formats that are inter-
operable in a CDE with agreed labels. This data can describe the object physically (weight,
volume, dimensions, location, colour and size) or in other dimensions such as quantity, cost,
availability, rate of installation, dependency, fire rating and so on, and access external data
bases such as standards and building codes. These can be grouped into categories of infor-
mation that can be accessed individually for clarity or layered depending on the depth of
information required. Problems may be that it is not viable to have accurate information for
all categories and all objects and so there is a degree of estimation. Also there may not be
sufficient benefit or time to populate such a model with full detail through standardisation.
A visual model of structures and services can be shared during the design stage to help the
trade contractors involved envisage the layout, identify possible clashes and reroute services
without having to incur additional cost. This early detection reduces mistakes and improves
productivity, leading to a reduction in blame and wasted time. The cost of keeping workers
safe onsite can be lowered through improved visibility of the work environment and faster
access to health and safety toolkits.
Benefits and challenges of BIM use

A BIM environment comprises computer-aided design tools to provide a better understand-
ing of design and construction sequences through a virtual representation of the built asset
so that the construction team, owners and operators can take part in detecting and resolving
conflicts. As a concept, it needs very close alignment of the project team, the supply chain
and the client.
Challenges facing the introduction of BIM

The process for the adoption of BIM tools need to be strategically integrated into individual
organisations that fulfil organisational objectives and aid project collaboration. Nevertheless,
there are challenges to face before BIM can be used across the building supply chain, such as:
• Many suppliers and subcontractors in the building industry are small and their specialist
knowledge defines them. Offering this knowledge up to a CDE takes away value they
have fought for to give them marketability.
• No single organisation has the financial muscle to influence or enforce industry-wide
standards for information exchange, although in many countries public clients are using
their substantial market share to require greater collaboration and the use of standard pro-
tocols to qualify for tender (Case study 13.1). The supply side, however, is fragmented.
• The tools that are used should be accessible to others and have efficacy for the organisa-
tion in terms of building on knowledge and efficiently delivering information. Knowledge
of a common protocol in collaborative use across the whole construction industry is thus
required. Most companies use COBIE, which is a non-proprietary code. Owing to the
complexity of the construction industry, which uses large numbers of suppliers, as well
as the fragmentation of design, construction and ownership, this process has to be quite
robust at its highest level of use. This signals the need for a broad training base for many
users and systems and interoperability of knowledge and data sources.
• Interoperability of tools, software and the client is essential and preferably the use of
cloud-based storage that is accessible to a scattered project team. The organisation of
material for navigation on dedicated project sites needs to afford priority rating for rel-
evant parties so that information is managed to avoid overload. The cloud affords access
for inter-project and FM-project sharing.
• Seamless reuse of BIM in the operability stage of the life cycle is necessary so that it can
be adopted by the facilities management team.
• Thinking that goes beyond the traditional trade outlook and professional boundaries is
an essential condition for the technological aspect of BIM to be transformative.
Challenges facing the use of BIM

Earlier misconceptions about BIM were that it was all about technology and that its growth
would be driven solely by advances in information and communication technology. There is,
however, an increasing recognition that the greatest need in the construction industry is col-
laboration, in which technology plays less than a 10 per cent role. Collaborative behaviours and
culture develop as the result of more partnering and long-term relationships (discussed in previ-
ous chapters). Project teams and the client must seek to understand each other and their common
goals and must have a will to use the best of their specialist skills and resources to achieve them.
BIM has evolved around technology and this is a concern among new and small busi-
nesses. This technology requires a colossal investment upfront and continuous upgrading of
both software and hardware, which are rapidly changing. The analogue ‘build twice’ – build
digitally during design and build again physically onsite – illustrates the cost concern. The
seed investment by specialist designers and trade contractors is recoverable through a multi-
plier effect; that is, £1 invested in BIM will generate an overall cost saving of £20 down the
line through reducing changes, addressing time-related preliminaries and boosting efficiency
gains. It is imperative that technology should reverse the rising design fees and overhead cost
for acceptability. Tendering and contractual procedures need to be synchronised to allow
models developed in the BIM environment to be part of the binding contract.
Skill development in construction is predominantly vocational, which poses another chal-
lenge of its own. Tacit knowledge is passed on from an experienced builder to a novice through
interaction onsite. Previous construction experience is a requirement in promoting workers to
a senior position with more decision-making responsibilities. The UK’s Construction Industry
Training Board (CITB)17 identifies cost as a significant barrier to providing training that meets
the needs of the industry. Other costs relate to the expense of accessing digital infrastructures
and building the capacity to develop effective cross-sector collaboration. Consider, for exam-
ple, the cost to a small to medium-sized contractor installing heating and ventilation services
if they need to access this different technology and provide training. An ongoing supply chain
network with an overarching training programme would make the situation much easier.
Benefits arising from the use of BIM

In the subsequent discussion we will demonstrate how BIM and digital technologies play a
role in delivering value for the client. Benefits are clear in the design process but they tran-
scend across the whole project by:
• Eliminating costly and timely design evaluations or mock-ups.
• Simplifying the production of design options so that alternatives can easily be altered
during design reviews by other users through feedback from the end users or owner.
• Making the design review process interactive and collaborative, which means that it is eas-
ier, faster and more efficient leading to fewer requests for information during construction.
• Omitting the need for face-to-face design review meetings.
• Modelling alternative systems in response to health, safety and welfare, such as the per-
formance of sprinkler systems and alternate stair layouts.
• Simplifying communication leading to instant feedback so that scheduled milestones can
be met in a timely fashion.
• Increasing co-ordination and communication leading to better decision making.
Some companies have already reported a significant time and cost saving, as shown in
Case study 13.2.
Case study 13.2 Utilising BIM to reduce work and collect

digital design data
In the construction of a building at the junction of Victoria Street and Buckingham Gate
in London, BIM helped to reduce the production time of installation drawings from eight
to four months, thereby realising an overall time saving of 50 per cent.18 In Hong Kong
a building contractor was able to strip the formwork five days earlier after monitoring the
concrete curing process using wireless concrete strength sensor technology instead of
relying on traditional cube tests. It is evident that digital technology increases efficiency
in the production process beyond the design.
BIM data, information and 3D models are key inputs to computerised maintenance man-
agement systems (CMMSs). Traditionally, management information was manually extracted
from static as-built drawings and specifications after the handover. BIM simplifies that pro-
cess and produces more reliable, updated and flexible data for building components and
services that can be linked with other computerised systems. Atkin and Brooks19 identified
the following advantages from incorporating BIM in facilities management:
• It integrates data from architects, service engineers and the contractor in a digitised for-
mat for use by the maintenance team.
• It provides reliable and flexible as-built information that can be easily updated and
coordinated.
• It provides baseline information for better management of changes and better-informed
future decisions.
• It simplifies integration of commercial data for inclusion in enterprise resource planning
(ERP).
The most commonly used applications of BIM technologies according to Kumar20 are
design visualisation, material and cost estimation, quantity take offs, clash detection,
consistent drawings, incorporation of additional information and knowledge early on
for use downstream or in simultaneous design. Further uses are feeding in laser scans
of existing buildings, health and safety, integrated design and fabrication and integrated
energy performance analysis.
Dimensions of BIM
Current levels are not specific about dimensions but 3D is a basic model at level 2 (3D means
length × height × width). Each additional dimension signifies an extra layer of information
informing a particular task such as time and cost. These are often referred to as the fourth and
fifth dimensions, respectively.
The fourth dimension is time. Time information needs to have associated data that are
quantitative and that are added to the properties of components, e.g. volume of concrete
is context-related, e.g. in a ground floor slab, high working off scaffold or in confined
places like a trench. The key logic of the construction time schedule is expressed in ele-
ments (collections of objects such as a room) of activities; that is, events recognised by
the model. Construction methodology is a key competitive tool. Schedule information may
also depend on lead-in time availability of elements and objects.
The fifth dimension is cost. Cost model objects must have cost information added to
their properties. A summary of objects can be made to produce elemental cost modelling.
Of course, market cost is commercial so this is relevant to early stage cost planning and
not tender cost. However, contractor-based modules may be instructed to price the BIM
model for tendering in the absence of bill of quantities (BOQ) information. Constructors
may add their modules for prelims, set up and added profit. Cost modelling can usually
be done earlier with BIM because of the front-end design motivation using objects with
standard costs. Care is needed to understand non-standard contexts, such as those men-
tioned under time.
The sixth dimension sometimes refers to the populating of the model with GIS and space
information to suit asset management in the operating stage of the building life cycle. The
nD dimension refers to energy data attached to objects, which could include building energy
use or material embedded energy. With this dimension iterations of design can be tested for
optimising reduction of carbon.
Other construction dimensions can be enhanced using radio-frequency identification
(RFID) tagging on material and component delivery to enable delivery laydown to suit
assembly sequencing and location, e.g. steel and rebar delivery. Scanning data digitally adds
to existing topography and structures. Health and safety modules and quality surveys can be
added to record and compare actual with expected results. Scaffold inspections with drone
surveys, for example, will make inspection safer. Procurement dimensions will speed up sup-
ply chain management. Object information may need to be selectively available, e.g. no cost
information made available to tenderers.
BIM maturity
BIM was developed in the USA by AIA, which ran with the idea of object-orientated 3D
design and developed platforms and tools that were able to develop information from data
collection in a more intelligent way. Maturity level was distinguished by the extent of col-
laboration in projects. The three levels of BIM, as indicated by Bew and Richards,21 are
simplified in Figure 13.3 and have been discussed.
LEVEL 0 LEVEL 1 LEVEL 2 LEVEL 3
No Little collaboration Collaborative Collaboration & interoperability

collaboration environment
BIM models IBIM
◊ Architectural STANDARDS FOR

INTEROPERABILITY
◊ Structural ◊ IFC—Industry Foundation

Class
◊ Facilities ◊ IFC—International Frame-work

management for Dictionaries
◊ 2D ◊ Building services ◊ IDM—Information Delivery

Manual
CAD ◊ 3D ◊ Bridging information ASSET LIFECYCLE MANAGEMENT

drawings
Figure 13.3 BIM maturity diagram levels 0–322
At low levels such as 0 and 1, digital technology is used to develop geometric models in 2D
and 3D in an uncoordinated manner. During level 1 it moves beyond 2D CAD representations
with limited or no collaboration possible. There was a particularly big take up of BIM in 2008/9.
Since this time level 2 has been more rapidly developed in the UK as a result of the government
push for the use of BIM in all public buildings by 2016. This period has allowed for an incremen-
tal level of development to allow for a catch up in data collection and storage in BIM formats.
A gradual introduction of BIM is preferred in order to meet the increasing amount of data
entered into the models as the properties of each object need to be tagged and integrated
with numerous other inputs from different stakeholders. This happens at level 2 and beyond,
where benefits of BIM begin to be realised. Data and models created begin to be recognised
and integrated among project documents. At level 2, the project manager and their team
agree on a common data environment and exchange data and information without relying on
paper-based handouts. Level 2 is governed by standards such as PAS 1192, BIM protocols
and the digital plan of work (DPW). Some basic layering of different disciplines is achieved
to operate clash detection and to accept inputs from other technologies such as laser scans.
At level 3, a higher degree of collaboration allows individual design inputs to be combined
and layered for sophisticated access to external data bases. This level will definitely include
further dimensions, including integrating programme and cost information to generate 4D
and 5D models, respectively. Level 3 is about functional improvement such as use of open
data standards that are interoperable across smart cities.
The next stage of integration, iBIM, is a way off, for reasons mentioned above (contrac-
tual, cultural change and copyright integration), though integrative software is developing
fast that serves the particular needs of building and construction.
Integration with the RIBA Plan of Work

In the RIBA Plan of Work, Sinclair23 provides for an overlap of stages with BIM tools, as follows:
• Stages 0–1: Preparation and brief. formalise the BIM mandate. BIM can be adopted at
any stage within the asset development process, but to benefit most from BIM it would
be useful to introduce it at the strategic definition or inception stage so that the client has
adequate time to prepare requirements and resources that will facilitate aligning BIM
with asset management systems.
• Stage 2: Concept design. Develop the BIM integration strategy. The concept design
is prepared using BIM and creates an environment for project integration. The strat-
egy will identify the extent to which BIM will be used. It should also assess BIM
capabilities in terms of expected product outcomes, required training, communication
channels, roles and responsibilities and BIM tools used. Use of performance-based
BIM specifications, focusing on product outcome, have added advantages over pre-
scriptive requirements for software. BIM will also be used by the lead designer as a
design tool and to communicate design solutions with the project’s internal stakehold-
ers to better facilitate decision making.
• Stages 3–4: Developed design and technical design. Integrate BIM fully during the
developed design stage, which is characterised by increased information exchange
between the designers and quantity surveyors. A virtual value engineering process will
simulate design solutions for cost affordability. Consideration of design options can
benefit from visual models, shared for analysis and risk reduction. Multidisciplinary
3D geometric models can be created with other designers and the construction
teams through a shared BIM environment so that buildability issues, along with
impact to the environment, can be assessed. Due to the number of exchanges in a
co-ordinated design, a high level of design agility can be attained by rapidly adopt-
ing changes from peer reviewers so that design development cycle time can be
significantly reduced.
• Stage 5: Construction. Contractors and their supply chain take on board all of the mod-
elled information to manage construction – the building process – in an efficient way.
Tablet and mobile technology also enable the team to manage the control process, qual-
ity assurance, productivity, efficiency and buildability effectively.
• Stage 6–7: Close out and in use. Update as-constructed drawings and information in
response to ongoing client feedback and maintenance or operational developments.
BIM protocols
BIM protocols set out more formalised procedures, rules and guidance for its implemen-
tation. Policy and delivery protocols exist. Policy protocols are generic and provide best
practice guidance that can be tailored for use in projects. The Construction Industry Council
(CIC) published the first BIM protocol in 2013, which was then updated in 2018. The CIC
protocol 201824 is not a standard contract but sets out a framework for terms and conditions
that need to be agreed by the client, designers, contractors and the supply chain with regard
to the production of digital information. It models how they are processed, hosted, shared and
managed. The guidance addresses the following:
• contractual obligations on sharing information in the BIM environment

• rights and liabilities of the parties with regard to the production and use of information
and models
• information requirements and specific responsibilities for the parties
• security standards and processes.
A delivery protocol is a document tailored to the project. It defines the procedures, processes
and responsibilities of the parties involved, which will typically be included in the agreed
contract. According to Hudson,25 a project BIM protocol can be open or closed. In a closed
protocol all trades involved in the project use the same, or compatible, software, often from
a named vendor. The employer’s information requirements (EIRs) prescribe what software
can be used by all participants. Sharing of information within the common data environment
is restricted, which can lead to disconnected communication. A closed protocol can be used
when compatible software is rolled out for all trades to use. It is also possible to use a closed
protocol in a partnering relationship where project participants have worked together in the
past and therefore are likely to use the same application. It helps to reduce interoperability
problems and file conversion will not be required. Open protocol BIM uses neutral file for-
mats or interoperability software. Participants are not bound to use prescribed software so
long as they can convert their model to a compatible file format that can be accessed by others
within the common data environment. EIR will be designed and developed in the same way
as performance specifications. Open protocol gives participants the flexibility to use software
platforms they are familiar with, which then requires minimum training. They will also spend
more time on productive work and collaboration instead of on learning prescribed software.
The Architectural, Engineering and Construction (AEC) protocol,26 for example, is
designed to provide technical guidance, including on software interoperability issues and
technical methodologies. This protocol sets requirements but it is the project manager and the
team who will agree on the operational issues.
The process of BIM

In order to use BIM, it is necessary to unify the processes, which means establishing a CDE
that is accessible to all. The CDE is programmed to be interactive to receive and provide
interactive input/output. Most projects are not standardised and will need to add a lot of data
to the CDE. The project manager and team may then mandate use of a common set of BIM
tools or it may choose to use subsidiary tools in order to import data into a central platform
from varied BIM software users. The latter is a more usual approach as many subcontractors
and suppliers are involved. The formation of a BIM execution plan (BEP) establishes objec-
tives and then provides a map of what tools are used by the project team and client (employer)
EIR. It also identifies how they may be converted/recognised by the central platform. This
integrative platform will then be used to plug in other specialist sources of data, such as sur-
vey scans, integrated manufacturing tools, health and safety, security, cost planning and time
scheduling. This platform acts as an intelligent extranet and is likely to be accessible to all
project members through ‘cloud technology’. Key players can access the platform and use
it to optimise and analyse set scenarios; others simply need a stream of authorised informa-
tion to enable manufacture, timely supply and installation. Protocols based on the COBIE
standard should be set up to allow access and delivery of information to specified parties in
specified forms.
COBIE is a simplified spreadsheet that captures and documents non-geometric data about
the building and its services in the format that facilitates its exchange during the opera-
tion phase. Advance forms of COBIE contain comprehensive building and asset services
data extracted automatically from as-built drawings and 3D models to improve reliability of
the data. COBIE spreadsheets potentially resolve the fragmentation of data available to the
facilities team because the client specifies a data format that is consistent and structured to
meet existing applications.
Education and training are required to ensure smooth delivery and orderly depositing of
information, so that information remains easily accessible in expected places. Tailored BIM
technology is a significant investment, thus its advertised efficiencies must be achieved by
setting up an effective CDE and the BEP that does not create tasks without saving tasks.
Foundations are built and lessons learned from early piloting. Case study 13.3 describes a
practical application of a tailored BIM, which was led by the contractor and client at the early
stage of BIM level 2.
Case study 13.3 BIMXtra: Springfield Primary School

This project was set up to meet BIM level 2 and the principal contractor thus reset its
traditional procurement to allow early access to suppliers who provided design inputs.
In particular, it was intended to ensure full integration of the M&E supply chain to facili-
tate a BIM-driven asset management system for the client. To keep costs down, the
contractor used its own BIMXtra platform free of charge to provide open access for the
supply chain and offered training and support in its use. By using BIM, and helping to
develop technology strategies for design consultants, two key objectives were met: to
reduce the preconstruction period by half, from eight to four months, and to enable early
involvement of specialist contractors. BIM procedure set up a workflow for the project
and populated the activities with data available. Procurement packages were generated
directly from the CDE. During H&S risk assessment a beam was strengthened and lou-
vres replaced in the roof by a mechanical solution to reduce working at height. These
changes, together with value-adding design changes, were communicated through
BIMXtra automatically. The platform automatically used the change management mod-
ule to communicate to those affected and operated an automatic clash detection service
using the same method. Over £80,000 was saved on a £4.5 million project. On top
of the achievement of cost and time savings, the principal contractor gained from the
experience of managing conflict and building competitive advantage as part of the prac-
tice of BIM, the training of its supply chain, partnering with consultants and client and
sharing best practice with its peers nationally and regionally. This cultural shift was initi-
ated by contractor development and client enthusiasm for the potential benefits offered
by BIM. The contractor has used this experience to store KPIs on the platform and drive
company performance.
Acknowledgement to Kier and Constructing Excellence27
According to PAS 1192, the process of BIM follows a number of particular documents, as
shown in Figure 13.4. We have already dealt with the EIR, so we shall now look more closely
at managing information with the BIM execution plan, the master information delivery plan
and the project information model.
1. PROJECT INFORMATION MODEL
Information is delivered by the various members of the project team on the basis of the
employer’s requirements. The project information model (PIM) captures progressive models
developed during the design and construction stages of decision making. The asset information
Information Employer information

need requirements (EIR)
Information Information
execution plan delivery
BIM execution
Design Construction Operations
plan (BEP)
Project information Asset information

model (PIM) model (AIM)
Master
Project
information
implementation
delivery plan
plan (PIP)
(MIDP)
Figure 13.4 The BIM process28
model (AIM) captures as-built information in object form for maintenance and operation of the
building. AIM is a collective term for any other information sources for managing the building,
including real estate information, energy management information, maintenance management
information and others.
2. BIM EXECUTION PLAN
The BIM execution plan (BEP) is a digital strategy that fits in with the main project execu-
tion plan (PEP) document discussed in Chapter 5. The NBS defines the BEP as the response
of designers and contractors to the EIR. It will be prepared as part of the project implementa-
tion plan in the pre-contract stage and will be updated after the contract is signed. The BEP
communicates the approach to data exchange and confirms the ability of the designer or
contractor to meet the expectations of the client.
The development process for the plan is provided in PAS 1192-2:201329 and will detail
the project deliverables stipulated by the contract and the information exchange requirements
detailed in a BIM protocol. The plan outlines the core requirements to support collaborative
processes to produce the information required by the client for the project and provide sup-
port to the contract co-ordinator throughout the project life cycle. These include:
• responsibilities
• requirements and processes
• best practices
• methods and protocols
• relevant business processes
• supporting software requirements.
In addition, use of the BEP document should be considered for supporting information pro-
vided for further consultant and contractor appointments and helping to define requirements
for consultant deliverables.
3. MASTER INFORMATION DELIVERY PLAN
It is inevitable that a huge volume of information will be exchanged through several itera-
tions of value engineering taking place during the design process and as the work commences
onsite. The iterative process will assure the client that the final design is optimum and guar-
antees good value for money. To streamline the communication of information during the
design and construction processes, the project manager will develop and maintain a master
information delivery plan (MIDP), with a focus on information exchange with main collabo-
rators. Although responsibility lies with the project manager, this is a collaborative document
and should be developed jointly with managers leading the design, construction and procure-
ment stages. This plan answers information exchange questions such as, ‘Who is creating a
3D model; when will it be prepared; on what procedures is it based; how can other design
inputs be incorporated?’ and so on. The plan must be specific on the deliverables, including
models, drawings, specifications and whether they will form part of the tender documents
to be distributed to bidders. A more detailed delivery plan will be agreed upon by a team of
designers and other consultants post-contract to aid the main contractor and supply chain in
accessing and contributing information.
Case study 13.4 describes the co-ordinated use of BIM for a complex design and delivery
project that also employed direct manufacturing offsite for non-structural components.
Case study 13.4 BIM process in building the

Shanghai Tower
This is one of the tallest skyscrapers in China, at 121 storeys and 632m high and has a
complex transparent outer skin that twists and tapers as it rises. It has 575,000 square
feet of mixed-use space, including a hotel, a conference centre, public gardens, retail
and cultural venues, together creating the sense of a self-contained city. The sheer size
of the project, complexity of the design and aspiration to be sustainable created an ideal
situation in which to choose the integrated approach of BIM technology because it could
represent a complex 3D design from the input of a large number of dispersed designers
and the co-ordination of a complex construction process. The structural shape required
sophisticated constructional design tools so that offsite manufacturing for major compo-
nents could be carried out directly and computer guided.
The CDE provided geometric sizes and design data for calculation and analysis. The
construction management team needed to produce a complex workflow and information
distribution schedule that did not overload individual contributors and provided real-time
Plate 13.1 Artist’s impression of Shanghai Tower (right)

Image courtesy of Shanghai Tower Construction and Development Co., Ltd. Rendering by Gensler
clash detection and document control for thousands of documents. The project team
identified that use of BIM resulted in enhanced co-ordination of the design and the vari-
ous subcontractor fabrication drawings so that only seven residual clashes occurred in
design development and none in construction. In terms of energy saving, the ability of the
software to develop simulations and conduct analysis for the whole building during the
design stage meant the project team could visually inform the developers and thereby
inform their decision making on this issue. For example, BIM provided the ability to test
and optimise reduction of wind loading and reduction of reflective glare by simulation
the effects on other buildings in the city. Iterations of the design were easily achieved to
reduce the material in the structural frame by 32 per cent, which was seen as good in
terms of design, cost and saving energy. Upon completion, the owners continued to use
the BIM model as a dynamic tool for facilities management and maintenance.
Acknowledgements to Autodesk and Shanghai Tower Construction and Develop
ment Co. Ltd30
BIM and standard forms of contract

BIM reflects an implied agreement that parties to the contract will commit to work col-
laboratively in the BIM environment and to share data, information and models openly for
the benefit of the project. Sharing information through a common repository such as the
CDE has the potential to impact on the way projects will be procured and contracts are set
in response to Trant v Mott MacDonald.31 This was the first case of its kind involving BIM
in the UK. Trant Engineering Limited was the main contractor and Mott MacDonald was
the contractor’s design consultant. The ‘design consultant’ proposed the CDE, set it up and
gave ‘the contractor’ a password to access the information. When the dispute arose ‘the
designer’ denied ‘the contractor’ access to the repository so the contractor and other third
parties were unable to progress. The contractor applied to the Technology and Construction
Court (TCC) for an interim injunction to access the design data. The contractor argued that
the terms of the agreement gave them the right to the designer’s intellectual property in
connection with the project. They also argued that the designer had performed their duties
in accordance with the agreed schedule and had accepted payment for it. The TCC ordered
the designer to give the contractor access to the design data.
BIM has been able to work within the existing legal framework without the need to
change copyright law. However, as the Trant v Mott MacDonald case points out, some
legal ramifications still need to be considered in the design of standard forms of contract,
especially on the issue of hosting, ownership and right to access information and shared
models. Detailed guidance is provided in the PAS1192-2:2013 and also in the protocols
that need to be integrated in the standard construction contract to resolve issues around the
intellectual property rights of the various parties, liabilities for faults and insurance for the
data shared on the platform. It is important to agree on the order of precedence of contract
documents and how discrepancies in information, BIM execution plans and models will be
resolved where they are part of the binding contract in order to avoid the risk of disputes
escalating. Case study 13.5 is a typical example of contracts adopting protocols to embrace
digital technologies.
Case study 13.5 Information modelling ownership

in NEC4
NEC4 was launched in 2017 to further the spirit of collaboration for the whole life cycle
and across the supply chain. NEC4 therefore added a design–build–operate (DBO)
clause that recognises the integration of the operating phase and also subcontracts for
both professional services and term services to integrate the supply chain.
In NEC4, BIM is referred to under the generic term ‘Information Modelling’ and a
secondary option X10 (Figure 13.5) is added to all contracts. NEC4 allows for BIM
documentation to be part of recognised contract documents. This can be specified dur-
ing the selection of the contractor or can be added later by adopting the X10 option. The
BIM execution plan (referred to in the contract as the ‘Information Execution Plan’) sets
out ‘how’ the information model will be delivered without having to specify ‘when’. It is,
however, revised in the same way as the programme. The secondary option includes
the provisions described below.
The contractor must submit the IEP for acceptance by the project manager and it
must be kept up to date. The IEP must comply with the client’s information and it must
be fit for purpose. The client owns the information model and assumes liability for its
faults. The contractor has the right to own project information and is liable for its faults.
No
Are the EIR and IEP
No BIM
developed?
Yes
Was the BEP specified as a No No

selection requirement at the Option X10 used?
tender stage?
Yes Yes
BEP identified in contract

Contractor to submit BEP
data
Revise
Yes No
Review and update BEP BEP accepted by
accordingly the project manager?
Figure 13.5 BIM execution plan in NEC4
Changes to the IEP can lead to a quotation for fair compensation. Parties have a
responsibility to notify each other (early warning) of any matters that could adversely
affect the performance of the information model.
Digital information management

Information management takes several forms for different uses. Some of these are discussed
below:
• Decision support systems (DSSs) are an analytical and predictive technique that allows
a large volume of data and options to be modelled and simulated. DSSs can facilitate
several management decisions, including risk management, sourcing of materials and
schedule optimisation to increase the level of accuracy and speed up decision making.
Developing a DSS will require some specialist software, but the decision maker has to
accurately map the decision process and identify sources of valid information.
• Predictive analytics, such as data-mining techniques, can produce predictive cost mod-
els based on current and historical data. Intelligent computer programs can learn and
analyse design options to make predictions on buildability and energy performance. In
the construction phase, time schedules can be simulated using risk scenarios to reduce
the risk profile of the schedule. In the maintenance phase Yamaguchi University utilised
deep learning techniques in 201532 on a bridge project to detect internal damage invis-
ible to the human eye. Sensors were attached to the bridge that measured vibrations and
fatigue degradation and the results were used to plan maintenance activities.
• User interface technologies using biometric data, such as facial recognition, fingerprints
and speech recognition techniques, are common in the aviation industry but can also be
used by contractors in high security projects such as airport maintenance to speed up
staff checking-in, which saves time and reduces queuing.
• GPS tracking systems can be used alongside construction logic planning for just in time
delivery and to control material stocks.
• Infographics are compatible with project dashboards, a useful tool to communicate com-
plex information visually. By aggregating construction programmes, cost models and
site workforce daily progress reports can be produced and shared for better co-ordination
of work and site safety.
It is important to emphasise that the collaboration process will involve multidisciplinary teams
such as technical designers, cost consultants, facility managers, planners and other reviewers,
each of them using a different software platform based in different geographic locations. A
typical example would be a 3D geometrical model produced by the architect, a model that
could be peer-reviewed by other designers before final approval by the client. It could also be
modified by other users when a clash is detected. Information exchange in a BIM environment
is likely to lead to series of issues. It is now possible to adopt a BIM integrated system that
supports multiple applications. Another challenge will be multiple users modifying the model
concurrently, thereby creating version conflicts. A lockable BIM integrated system is prefer-
able in this case to reduce conflict and residual data loss. The exchanged data and models are
often large files and if shared using internet-based technologies may result in a system slow-
down and security issues which the adopted BIM system has to revolve proactively. Although
the name may seem to suggest BIM is all about buildings in practice, it applies to all types of
infrastructure, including highways, ports and railways, as discussed in Case study 13.6.
Social data
More work will be needed to develop flexible and social information management systems
that will accommodate social media feeds, such as capturing feedback from public consulta-
tions and feeding it into the BIM information suite. Information management in the project
environment is increasingly becoming inclusive, flexible, adaptable and sociable. Press
releases can be automatically generated to provide information for the public. Case study 13.6
is an example of using social media to collect and manage information.
Case study 13.6 Social data to democratise approval

The California High-Speed Rail (CAHSR), a three-phased, high-speed railway 800 miles
long with up to 24 stations, was estimated to cost $77.3 billion to construct. Initial public
consultation polls in 2008 revealed that people approved of the project and viewed it
as a beneficial development. Delays, rising costs and conflicting media reports made
it necessary to monitor public acceptance of the project because it was intended to be
operated by a private sector developer on a PPP agreement. In addition, representa-

tives of the communities affected by the project had filed an unsuccessful lawsuit to
challenge the project, causing significant delays and incurring extra cost to the project.
An independent investigator developed a system to capture social media posts
discussing the project, which were then analysed. With software assistance (a web
crawler), Twitter data (tweets) were collated by searching the web for specific users.
This method generated an excessive amount of data, which needed to be screened
and sorted prior to the analysis. The investigator then decided on what needed to be
analysed. For this project, quantitative analysis addressed issues such as:
• Public approval rate – by looking at the number of positive and negative com-
ments. The project is approved if the number of positive comments exceeds the
number of negative comments.
• Changing public perception – by plotting approval ratings on a timeline.
This method is still crude and will need time to be formalised.

Acknowledgements to Cui and Ding (2018)33 and CAHSRA (2018)34
Other technologies
Emerging construction technologies

A survey of 158 construction companies in North America (the USA and Canada) revealed
some encouraging trends in technology use among small to medium-sized contractors.
Budiac35 compiled a report for a technology company demonstrating drones are currently the
most sought-after technology. Use of robotics, virtual reality (VR), augmented reality (AR)
and 3D printing is also rising. The digital construction agenda has gained some traction and
professional bodies, including the CIOB, promote the adoption of such technology. A study
by McKinsey36 predicted that, if the construction industry adopts digital technologies such as
drones, BIM, cloud technologies and the internet of things, projects will be 16–18 per cent
cheaper and efficiency will improve by 29–32 per cent. Cost and interoperability of the tech-
nologies are significant barriers but with time and training the industry will be able to adopt
information management systems capable of integrating the diverse range of formats in which
information is generated. Some of these technologies are discussed below to highlight how
they can be used to make construction safer, faster and more inclusive for people with differ-
ent abilities.
Virtual and augmented realities

Virtual reality (VR) and augmented reality (AR) employ gaming technology to build col-
laborative project environments, applying it also to marketing the product and training. They
allow the design architect to share the design with peers, services engineers and also with
those with limited expertise in the design, such as the client and end users. Peer review and
clash detection in the BIM environment are important reasons for adopting VR. Many build-
ability problems happen because the construction teams and operatives cannot experience
what is to be constructed until it is physically built. VR, AR and fly-through technologies,
such as those adopted in the BIM environment, have helped to engage and inform key project
stakeholders and capture feedback from them.
Virtual reality can be defined as reality assisted by technology using 3D models rendered
from photographs and other types of information, which allows users to be immersed in the
model itself as if they were there and it was complete. In this context, it is a way of experienc-
ing construction projects. The simplest format is a ‘fly-through’ on screen. This is enhanced
when the user wears goggles or gloves with gaming controls activated by head/hand move-
ments. The VR system combines computer-aided design (CAD), 3D modelling, gaming and
animation technologies to provide a simulated experience that allows them to preview layout
of services and analyse space such as inadequate working space. A plumber will not be able
to visualise a tight working space on a 2D paper drawing.
If VR is combined with schedule information (4D) it can link a chronological series
of pictures of the growing building and present it in video form. This is helpful for illus-
trating workflow and improving it in advance. The level of detail (LOD) is variable from
blocked-out shapes (marketing to the client and non-technical questions such as ‘What
time do you have to complete?’) to specific fabrication and assembly details. This means
that LOD can be ‘zoomed in on’ for detailed co-ordination of separate trades. ‘What if?’
scenarios could be used to facilitate a ‘last planner’ feed-forward approach. Loading
detailed information is time-consuming and requires availability of schedule informa-
tion so it might be applied to particular parts of the construction process where logistics
is complex.
Augmented reality is the supplementing of real environments with additional computer-
generated material such as sound, video, graphics or GPS data. It can be more accessible; for
example, it could be based on GPS and smart phone apps, enabling many users to observe
the full anatomy of the building structure in onsite walkabouts in partly-finished buildings.
More sophisticated modelling is operated by hand movements and real environments can be
diminished or enhanced (mediated) by computer generation for clarity or to focus on problem
solving. In the augmented reality system, for example, a computer-generated 3D model of a
plumbing system is combined with a real ceiling and wall system so that they appear as one
environment. Additional hardware devices, such as a head-mounted display or glove input
device, will be needed to integrate the real and virtual worlds.
VR and AR may also be used in hybrid formats whereby remote and site-based partici-
pants can discuss solutions to construction and design problems. Smaller sites are usually
better served with intuitive knowledge of logistics sequences. Examples of specific logis-
tics are the timing and entry of large pieces of equipment or the operation of construction
sequences in the refurbishment or extension of an existing building. Earthquake simulations
can provide useful information to both the designer and end users, initially in terms of build-
ing design and thereafter to enhance disaster preparedness. AR and VR have several other
indirect uses in marketing and training.
In terms of marketing, smart PDFs can embed VR information such as video content to
produce smarter presentations. Relatively cheap and easy models can be created from quite
low LOD information using 3D printing for clients who require tangible evidence of their
project. In relation to training, virtual reality can be combined with gaming technology to
create dynamic training scenarios that test knowledge and decision-making ability. Health
and safety incidents, for example, can be used to test the outcomes of decisions so that les-
sons can be learned. In these situations, users normally wear goggles and control their own
location. A string of decisions can be recorded to provide compound outcomes, different
teams can compete with each other or simultaneous decisions in different roles can offer
combined outcomes.
The main advantage of VR and AR is their ability to relate to the actual work to be
done to provide better understanding and collaboration. In so doing, the team will resolve
issues faster and in a proactive manner, leading to cost savings, reduced reworking and bet-
ter co-ordination of the work to be performed by different trades. Both VR and AR can be
integrated with other technologies such as drones, scanners, printers and cameras for added
functionality on the construction site. Case study 13.7 indicates how this might be useful.
Case study 13.7 Site layout logistics

This complex development project was a 62-storey commercial tower in the city of
London located near other skyscrapers. Typically for projects of this nature, there
was inadequate access, therefore putting a lot of pressure on planning, health and
safety and logistics. The contractor used a combination of 4D modelling and immer-
sive VR to make it possible to develop a secure logistic plan in advance of works.
The construction manager and BIM co-ordinator brought in their own experience of
BIM from previous projects and worked together to drive the implementation of an
immersive VR.
2D and 3D models provided by architects, engineers and the contractor’s supply
chain were combined in a federated BIM model and then exported to a CDE for syn-
chronisation with project scheduling software. This allowed for site escape routes,
signage, hoarding lines, access gates, tower cranes, temporary site staircases, edge
protection details and other information to be simulated in the immersive VR environ-
ment. The simulation was produced in a game engine to be viewed at a scale of 1:20 or
1:1 depending on the user. The game engine was tailored with extra tools to allow the
project team to add preliminaries to the model, such as tower cranes, excavators, skips
and scaffolding. The VR made it easy to understand spatial arrangements and allowed
the team to move things around, allowing for better informed decisions to be made. The
logistic plan was produced for 6 to 12 months in advance of the works, allowing for time
to procure resources.
Artificial intelligence (AI)

Artificial intelligence (AI), or machine learning, is sometimes introduced with a degree of
concern related to machine takeover of jobs and even machine dominance over humans.
Although there are ethical concerns regarding how certain aspects of how AI are used, the
ability of machines to program themselves is still a long way off. AI is defined as software
that trains machines to undertake intelligent tasks and make decisions. Machine learning is
an intensive process that starts by programming the machine to do simple tasks, for example
turning on heating or closing the window, and progresses to tying a knot. Machine learning
can add value by using sensors that pass electronic information to the machine to update it
on outcomes such as temperature, heat loss, pollution, air flow and solar gain in different
parts of the building. Programmed with standard requirements, it can turn heating on or off,
open or partly close windows and vents or initiate fans. The machine can control lighting
levels and access based on human movement and identity. These are all current technologies
that, together, are generally termed a building management system (BMS). Virtual assistants
(VAs) are voice-activated and not automatic; they can provide answers to common questions
by accessing a database.
Advanced AI enhances design outputs and selects from a range of programs and data
using computing power that exceeds human limitations. It can draw within the constraints of
building codes, size/site constraints, costs and times, and simultaneously check clashes with
other drawings, conduct complex computational sensitivity analysis for optimisation, check
innovation directories, scan for errors, receive laser scan data from existing features and
advise on alternatives that fit briefing parameters. It can also run through a full range of risk
scenarios, select least risk approaches and suggest mitigating action. In practice, however,
systems are often limited in their integration.
In manufacturing, AI works through programmed physical robotic actions that can not
only manufacture and assemble pre-drawn designs but also, in advanced forms, can poten-
tially suggest manufacturing improvements. In production phases it can be tied to material
delivery schedules and workflow information to make suggested amendments on the basis
of feedback or scan data. Autonomous vehicles can also be part of the construction pic-
ture, with excavation, tunnelling and mining equipment programmed to carry out work
from drawings and use sensor technology to avoid obstacles, navigate sites and tunnels and
avoid utilities. Research is currently being carried out into reducing roadworks by using
robotic worms that can bury under roads to find and mend leaks. Other machines can lay
bricks, clean remote windows and inaccessible roofs and operate 3D printing onsite. Often
multiple related trades can be executed simultaneously. A tunnelling machine can navigate,
excavate material, sense rock and soil types, spray and line the tunnel and sense ground
water pressures. All of these can relieve dirty and backbreaking work and improve produc-
tivity, accuracy and quality. It can, however, be flummoxed by unexpected obstacles and
the unpredictable nature of human behaviour. For example, an animal running out blindly
in front of an autonomous vehicle could cause it to swerve into the path of another vehicle
carrying six people.
Dashboard monitoring and control can include parameters related to scope, time and cost
scheduling, risks, procurement, contract terms and conditions, configuration management,
equipment performance and so on. With the relevant systems, it can automatically adjust
or feed into decision making. Such decision making depends upon the quality of the data
accessed and so complicated decisions are often reassessed by the project manager. AI also
has a role in safety inspection, control and prevention through its capacity to collect and ana-
lyse data to make risk assessments.
Project managing AI is about taking a step back and managing supply chains, ensuring
material supply, diagnosing underlying causes for delay or cost overrun, auditing quality
and anticipating actions that machine learning cannot deal with. Project managers will spend
more time on collaborative activities such as managing motivation, bringing together loose
ends and managing the big picture of workflow, client value, budget control and programme
acceleration to meet handover targets. The bigger context of working with stakeholders,
considerate contracting and managing the safety education process, and dealing with public
complaints and actions is also important.
AI with robotic offsite and onsite assembly is becoming a reality (e.g. computer-
generated machines can lay bricks, line tunnels or create 3D printed walls). Standard
models that can be reused will have easier access to information regarding previous con-
struction projects, allowing them to build upon past experience. Populating the object can
be carried out digitally on location by laser scans, drones and CAD engineering programs
and rendered. Legal information can be scanned in and data libraries can be digitised and
interoperable. Cost and time information will be stored in separate libraries and dependent
on methodology. Case study 13.8 gives an example of a simple AI aided project, as more
advanced AI will take time to develop.
Case study 13.8 SAM 100, the robotic bricklayer

SAM 100, the Semi Automated Mason, is a programmed robot built to lay bricks onsite.
SAM can lay 250–300 bricks an hour or up to 3000 bricks a day. This is about four–six
times faster than a skilled bricklayer. The robot works alongside human bricklayers to
simplify their task. Because the lifting and laying are performed by the robot, bricklayers
do not need to bend and twist, which is of significant benefit to their musculo-skeletal
health and wellbeing. The automated system comprises the robot, laser sensing tech-
nology fitted to the wall and digitised drawing of the wall. The robot applies mortar
evenly on the brick to be laid, which saves material. The robot does not take a break
and is not affected by changes in the weather and works within quality parameters.
This increased efficiency reduces the overall cost per brick by up to 700 per cent. The
inflexible robot’s arm necessitates human intervention to quality check, trim the excess
mortar and manoeuvre around corners and in narrow spaces.
Traditional construction methods are considered incompatible with this technology.

There are some ambitious claims that most manual work currently performed by skilled and
unskilled workers will be replaced by robots, generating fears that this technology will make
more people redundant. Case study 13.8 illustrated how robotics have been used to perform
manual tasks such as bricklaying but it has also been used for assembly of offsite manufac-
tured components alongside traditional trades to increase safety and efficiency.
Barriers to AI
AI is an expensive form of technology. It requires extensive tailored programming on con-
struction projects that have unique non-repetitive designs to suit topographical and climate
variations. Machine learning that can enhance its serial use is still in its infancy. Also, its
utility must exceed its cost by a significant factor. The construction project may have specific
areas that can benefit from automation, such as cladding configurations, but construction
projects as a whole involve myriad organisations and human interactions. Because human
behaviour is complex and often emotionally unpredictable, AI must not be used without
careful supervision. People management involves motivation and complex deal making
to co-ordinate production. Standard offsite production and batch production in residential
developments and hotel rooms are the more obvious candidates. Buying and maintaining AI
is perceived as providing a low cost–benefit return, which deters contractor investment, but
repetitive residential development projects may receive improved returns. Limited reuse may
lead to continued high costs.37
When design and execution information is combined, as in AI, contractual ownership of
resulting models will need to be on an open access basis. In a combined model it is less easy
to enforce copyright protection of design and data banks. Robotic manufacture theoretically
improves workmanship, but site conditions are often cramped and expensive specialist tool-
ing to overcome this may hugely reduce their productivity. Innovative new methods and
adaptions need to be devised to suit the tools available.
Big data
The term ‘big data’ refers to the universal collection of information for collaborative use in
an integrated location, such as the visualisation of a city in 3D. It is primarily used for assess-
ing the impact of city developments and planning their introduction so as to create most value
at least risk. These factors are relevant to managing construction projects because building
sites are open systems dependent on context and sense of place. This is especially the case
for large buildings and new imposed infrastructural features such as roads, bridges, transport
links, drains, airports and harbours. This big data information may be used by businesses, the
government and the R&D community. Big data has the potential to help in planning sustain-
able cities as issues like ecological balance, pollution and reduced carbon use, public and
autonomous transport, wireless connection, energy and waste management are represented
three dimensionally and in an interrelated manner. A new building or infrastructure sits in
this network of dynamic interactivity and influences it. Interconnectivity between vehicles,
people and buildings is possible. The next step will be to move from smart (digitally con-
nected) cities to sensible cities that allow for ‘what if?’ analysis to improve environments
such as traffic flow controlled by signals.
AI is limited in its ability to set a building in the context of its wider surroundings unless
other data describing the location are available in digitised format. Some cities, such as
Singapore, are developing digital pictures of their environs and built assets. Case study 13.9 is
an example of an overarching system proposed to improve integrated decision making in cities.
Case study 13.9 Singapore’s digital twin

Dassault Systèmes is in charge of the digitisation of Singapore using its 3D Experience
City platform. Singapore is an intensively developed city of 5.47 million people inhabiting
a land area of 718km2 compared to Tokyo at 2200km2. Its objective is to solve ‘emerg-
ing and complex urbanisation challenges’. It is part of the Smart Nation Initiative, which
focuses on ‘optimising urban spaces and enabling better city planning’. The Singapore
Land Authority will supply 3D topographical mapping data and own the finished prod-
uct. The platform will enable simulation and modelling that can test concepts and the
impact of new city initiatives –buildings and infrastructure. Existing information can be
input to solve problems like traffic flows and risk management. It can also be used as
a cross-agency platform for collaboration, arbitration and holistic solutions. The system
will consult citizens as well as agencies to determine key uses of the ‘digital twin’ that
simulates real objects to test the workability of given solutions.
Collaboration will be the major challenge as people move away from ‘silo’-type prob-
lem solving. There is also a question of security because ownership of the project is
in the hands of the Singapore Land Authority and, as such, it is not policed by the
platform. Accessibility of the data to citizens and building companies means sensitive
data must be treated carefully. There is also the issue of recognising gaps or errors
in historical or legacy data that may be perceived as good but exposes flaws by using
predictive technologies.
Acknowledgement to Digital News Asia and Dessault Systèmes38
Challenges of digital construction

Adopting Wi-Fi-based technology exposes construction companies to a serious cyber security
risk and many would approach technology with a sense of scepticism. A wider application of
AI technologies in the construction industry is considered a transformative evolution, but as
such will depend on the readiness of people, processes and tools. Construction is still consid-
ered a labour-intensive industry and too much technology will make many people redundant.
Traditional construction machinery such as cranes and diggers will need to be fitted with
new enablers to become more autonomous. Experience from everyday applications and other
industries, such as driverless cars, has improved people’s attitude to AI; indeed, a survey
conducted by the Institute of Civil Engineers39 revealed that more construction professionals
are willing to embrace this technology.
Conclusion
This chapter has described the numerous challenges facing the construction industry in mod-
ernising its backward approach to delivering projects by replacing it with more efficient and
highly productive digital technologies. Construction, as one of the largest contributors to the
global economy, has remained for many decades less profitable and unpredictable. The rising
need for modernised infrastructure and services as a result of the growing digital economy
presents an unprecedented opportunity to the industry in terms of attracting digital-age talent.
Such an opportunity, however, comes with all the challenges that large and complex projects
offer and can make sourcing and managing logistics and multidisciplinary teams harder to
co-ordinate. Information and communication technology has evolved and clients are more
aware of what they want and can procure more widely to secure a cost-effective service, add-
ing to the process of unfettered competition. Modernisation has therefore stretched the limits
of construction to the extent that there are calls for the whole industry to modernise or expect
a takeover by other industries that can manufacture in a controlled environment alternative
houses that are of a higher quality and built at a fraction of the cost than those built using
traditional methods.
Among clients, consultants and contractors, and their corresponding supply chains,
competition is the main driving force behind the reliance on technology. However, there
is also a shortage of appropriate skills and thus a need to work more flexibly. Digitised
construction has now gained a momentum that is destined to continue at an exponential
rate as a result of increasing data accessibility in construction. Those who invest in this
new technology will inevitably reap rewards in terms of better productivity if they can
convince their future partners and clients to use it too. Public commissions in the UK
and many other countries have required level 2 BIM as a tendering qualification, which,
although at a basic level, requires an investment in BIM software. Some contractors have
ensured its use by developing their own systems and investing in training members of
their supply chains to use it. This has been made easier by open access to cloud technology
and the BIM platform. BIM platforms, in turn, push the use of further technologies, such
as drone surveys, VR, AR and AI, because many pieces of software have been developed
that interconnect these technologies with the BIM platform, making BIM a powerful inte-
gration tool for construction project management and intelligent design. This technology
can facilitate accurate and robust delivery of complex designs, which were previously
excessively time-consuming to model and assemble successfully. Direct manufacture is
also possible onsite or offsite. They are also more reliably compliant with standards and
building codes because prototypes can be tested. Design variations can also be easily
delivered and adapted to different site conditions. Although training is needed to use these
systems, as they become more widely used so they will become the norm and thus more
quickly understood. Clients and others commissioning the project can be more effec-
tively briefed and additional information or alternatives can be cheaply generated with
less effort in a shorter time scale.
The case studies presented in this chapter shed some light on the positive side of the tech-
nology and there is much evidence to demonstrate the rewards of adopting it. The push for
a radical change may not be what the industry wants because it is notoriously slow to adapt.
However, it may be willing to prioritise among competing needs for improvement. There is a
possibility that a further push for change may cause more fragmentation in the supply chain
because the majority of small and medium-size contractors may not cope with the speed
and dynamics of the technology, leading to new forms of information fragmentation that
will stifle integration and collaboration. A concern expressed in relation to transformative
technologies is that investing in it may ultimately be unprofitable. One of the unknowns is
the speed at which technology will change and force the construction industry to upgrade its
equipment. The cost of running and maintaining machines as a means of achieving potential
savings is a lot to ask from a one-off client.
Notes
1 Hardin B. and McCool D. (2015) BIM and Construction Management: Proven Tools, Methods, and
Workflows. New York, Wiley.
2 Kumar B. (2015) A Practical Guide to Adopting BIM in Construction Projects.Caithness, Whittles
Publishing.
3 Construction Industry Council (CIC) (2013) PAS 1192-2:2013. BIM Level 2: Specification for
Information Management for the Capital Delivery Phase of Construction Projects using Information
Modelling. This specification focusing on project delivery using BIM underpins the requirements
for BIM level 2 compliance and a suitable common data environment (CDE). Other specifications
cover Operations (3), COBie (4, which is a BS Code of Practice), Security (5) Health and Safety (6)
and Construction Products (7).
4 BS EN ISO 19650-2 (2019) Organisation of Information about Construction Works –Information
Management Using Building Information Modelling. Part 2 delivery phase (equivalent to BS
PAS1192); Part 3 operational phase; Part 5 security specification.
5 The BIM Task Force is an organisation promoting the consistent use of BIM and digital construction.
6 World Economic Forum (2016). Shaping the Future of Construction – A Landscape in Transformation:
An Introduction. Available online at: http://www3.weforum.org/docs/WEF_Shaping_the_Future_
of_Construction.pdf (accessed 2 March 2018).
7 Department for Business, Innovation & Skills (2013) Construction 2025: A Long-term Vision for the
Industry for the Next 10 Years. Available online at: https://www.gov.uk/government/publications/
construction-2025-strategy (accessed 18 May 2018).
8 NBS (2017). National BIM Report 2017. Available online at: https://www.thenbs.com/knowledge/
nbs-national-bim-report-2017 (accessed 18 May 2018).
9 Department for Business, Innovation & Skills (2013), p. 9.
10 Tuomi Ilkka (2002) The Future of Knowledge Management. Available online at: http://www.
providersedge.com/docs/km_articles/Future_of_KM.pdf (accessed 18 August 2018).
11 Sage (2016) The Challenges Facing a Growing Industry: The 2016 Construction Hiring and
Business Outlook. Available online at: http://www.sage.com/na/~/media/site/CRE/documents/2016_
Construction_Hiring_and_Business_Outlook_Report (accessed 25 July 2018).
12 No. 102 Public Procurement: The Public Contracts Regulations 2015, available online at: http://
www.legislation.gov.uk/uksi/2015/102/pdfs/uksi_20150102_en.pdf (accessed 2 January 2019);
No. 273 Public Procurement: The Concession Contracts Regulations 2016, available online at:
http://www.legislation.gov.uk/uksi/2016/273/pdfs/uksi_20160273_en.pdf (accessed 2 January
2019).
13 Bew M. and Richards M. (2008) Bew–Richards BIM Maturity Model. Available online at: http://
www.cpic.org.uk/en/publications/avanti/index.cfm (accessed 18 June 2018).
14 Construction Project Information Committee Formal Definition.
15 National Building Specification.
16 Eastman C., Techholz P., Sacks R. and Liston K. (2008) BIM Handbook: A Guide to Information
Modelling. Hoboken, Wiley.
17 Construction Industry Training Board (CITB) (2017) A New Reality: Immersive Learning in
Construction. Available online at: https://www.citb.co.uk/documents/research/t1438-rr-citb-a_
new_reality_report.pdf (accessed 17 June 2018).
18 http://www.bimplus.co.uk/projects/bim-unlocks-sweden (accessed 17 June 2018).
19 Atkin B. and Brooks A. (2015). Total Facilities Management. 4th edn. Oxford, Wiley Blackwell.
20 Kumar (2015), p. 29.
21 Bew and Richards (2008).
22 Based on Bew and Richards (2008).
23 Sinclair D. (2012) BIM Overlay to the RIBA Outline Plan of Work. London, RIBA. Adapted to
2013 version.
24 CIC (2018). Building Information Modelling (BIM) Protocol. 2nd edn. The standard protocol for
use in projects using building information models. Available online at: http://cic.org.uk/admin/
resources/bim-protocol-2nd-edition-2.pdf (accessed 28 July 2018).
25 Hudson, A. (n.d) Introducing Open and Closed BIM. Available online at: https://thebimhub.com/
magazines/bim-journal/issue/1/pdf (accessed 29 July 2018).
26 AEC (2012) AEC (UK) BIM Protocol Implementing UK BIM Standards for the Architectural,
Engineering and Construction Industry. Available online at: https://aecuk.files.wordpress.
com/2012/09/aecukbimprotocol-v2-0.pdf (accessed 29 July 2018).
27 Constructing Excellence (2014) BIMXtra Springfield Primary School, Sale, Greater Manchester.
Available online at: http://constructingexcellence.org.uk/wp-content/uploads/2014/10/Case-study-
Kier-BIMXtra.pdf (accessed 12 July 2018).
28 Acknowledgement to PAS9112-2:2013.
29 http://bim-level2.org/en/client-or-advisor (accessed 17 June 2018).
30 Auto Desk BIM Solutions (2018) Rising to New Heights with BIM. Available online at: https://
damassets.autodesk.net/content/dam/autodesk/www/case-studies/shanghai-tower/shanghai-tower-
customer-story_en-uk.pdf (accessed 12 July 2018).
31 Fenwick Elliot (2018) The First Reported UK BIM case: Trant v Mott MacDonald. Available
online at: https://www.fenwickelliott.com/research-insight/annual-review/2017/uk-bim-trant-mott-
macdonald#footnoteref1_aoay2jf (accessed 29 July 2018).
32 Fujitsu Limited (2017). Fujitsu Deep Learning Technology Successfully Estimates Degree of
Internal Damage to Bridge Infrastructure. Available online at: http://www.fujitsu.com/global/
about/resources/news/press-releases/2017/0828-01.html# (accessed 20 September 2018).
33 Cui Q. and Ding Q. (2018) Tracking Public Perception of Public Private Partnership Projects.
Available online at: https://secure.arcom.ac.uk/submissions/30/published/0bc7c6d86e4c614f973b
2d48062a71bc.pdf (accessed 18 August 2018).
34 CHSRA (2018) Business Plan. Available online at: http://www.hsr.ca.gov/docs/about/business_
plans/Draft_Revised_2018_Business_Plan.pdf (accessed 10 September 2018).
35 Budiac D. (2018). Construction Technology Trends: 2018 Report. Available online at: https://
softwareconnect.com/construction/technology-trends-2018-report (accessed 23 July 2018).
36 McKinsey (2016). Imagining Construction’s Digital Future. Available online at: https://www.
mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/imagining-constructions-
digital-future (accessed 25 July 2018).
37 IPMA (2018) Using Artificial Intelligence in PM: Just a Bedtime Story. Available online at:
https://www.ipma.world/using-artificial-intelligence-pm-just-good-bedtime-story (accessed 20
September 2018).
38 Gabey G. (2015) Building Singapore’s Digital Twin. Digital News Asia. Available online at:
https://www.digitalnewsasia.com/digital-economy/building-singapores-digital-twin (accessed 5
September 2018).
39 ICE (2017) AI’s Impact on Built Environment Sector. Available online at: https://www.ice.org.uk/
news-and-insight/ice-thinks/infrastructure-transformation/ai-impact-on-built-environment-sector
(accessed 4 May 2018).
14 Quality and customer care
What? No building is perfect. Construction quality concerns the quality of products

used in construction, the manufacturing process and the interaction of assembling dif-
ferent products so that they work together. It also concerns the satisfaction of clients
and users when the building is in use so that it meets their prioritised objectives, for
example elegance versus budget, long life versus early profit, hence the study of cus-
tomer care.
The objectives of this chapter are to understand:
• the nature of quality

• Handy’s principles of customer care as a model for construction
• how to improve quality management in construction projects
• the principles and culture of quality management for multiple contractors
• the implementation of quality and care principles under construction contracts.
Why? Quality in construction is normally associated with conformance to specifications;

however, these may not be adequate, as we have seen in some high profile failures of build-
ings and structures. Quality relies on knowledge of building products and competent assembly
and delivery that will pass the test of time. Client expectations have been widened and new
construction products and creative design may stretch the boundaries of existing knowledge
and experience to the extent that inadequate detailing and products may be used. Quality
controllers will need to learn new durability and tolerance limits of prototypes and standards
need to be updated. Risk profiles need to be prepared so that clients can manage their expec-
tations. Customer care provides lasting relationships, extends well beyond completion and
makes good business sense.
How? The project manager’s ultimate concern is to provide customer satisfaction inte-
grated with a quality product. The primary link to the customer is through the designer and
project manager who need to understand the needs of the client and end user. The designer
needs to develop an elegant, fit for purpose design that is well-researched and utilises spe-
cialist inputs. For the contractor, a well-managed quality system that avoids major defects
should result in repeat business from a knowledgeable, satisfied client. Quality construction
and design allow a relationship to be established and a better understanding of the product
to be gained. The contractor is the key provider of ongoing customer care, which includes
maintaining their quality requirements.
Definition
Quality may be defined as a product or service that:
• matches specifications
• is fit for purpose
• meets the expectations of the customer.
All three are important but the third is particularly so because it connects project objectives
with customer care and the has potential to optimise value by stripping out waste resulting
from over-specification. Strong integration of the client with the project team is needed so
that the customer’s expectations can be managed and desires separated from key functional
necessities in order to keep to budget. Meeting customer expectations also begs the question
of who manages quality. There is a tightrope to walk between (1) responding to the custom-
er’s every whim, which may mean that what they get is not what they need and (2) the project
manager arrogantly deciding what the customer needs, which means the latter receives some-
thing unexpected. Delighting the customer is about just exceeding their expectations, as in
Maister’s first law of service: Satisfaction = Perception – Expectation1 (see Chapter 2). This
approach helps to balance imperfections. Waste is closely connected to quality, as described
in Case study 14.1.
ISO 90002 defines quality as ‘the totality of characteristics of an entity that bear on its
ability to satisfy stated or implied needs’. Gardiner3 identifies the need to distinguish between
grade, which is the level of quality – low grade or high grade, and reliability, which is an
entity’s ability to sustain need. Waste is a symptom of poor quality.
The threshold for construction quality

Quality is the balancing of cost, time and other factors, which ensures that minimum stand-
ards are met in appropriate ways. A threshold for quality may be called a benchmark and this
can be expressed as a minimum set of standards that can be costed and compared. It follows
that there are levels of quality, which may relate to durability, longevity, sustainability, ethi-
cal standards and design excellence. A construction cost could be assigned to each level of
defined quality. Ascertaining the client needs and expectations is important in the procure-
ment stage. The procurement stage commits the tenderers to a minimum threshold of quality
through a prescriptive or performance specification, so needs to be effective so as not to
undermine cost or quality and to deliver to the required time schedule. An example is given
in Case study 14.1. Luxury is a marketing term and is not included in this discussion; it often
relates to breadth of functionality and needs to be differentiated from quality. Wolstenholme4
found that a lack of integration in the delivery process impeded continuous improvement.
Case study 14.1 UK government Common Minimum

Standards and quality
In order to deal with public construction quality and client concerns, the UK government
has produced a guide for minimum construction standards.5 It benchmarked public
building costs and trends in the period 2010–015.6 The Common Minimum Standards
Quality and customer care 419
commit government departments to quality standards for design, health and safety
(H&S), procurement and time schedule, and sustainability. Requiring tenderers to attain
the benchmark of minimum standards has guarded quality standards in a climate of
constant cost reduction. The benchmark figures show an 18–23 per cent reduction of
costs whilst complying with the minimum standards.
Building standards are essential to quality and internationally accepted standards are an
important part of the trading community. They help to ensure compatibility between differ-
ent countries as buildings are made up of imported and locally made materials. Organisations
that are internationally recognised, such as BSI, ISO and ASTM, create standards and cross-
reference the building codes of major trading blocs to ensure compatibility of complex
systems using a mix of internationally-sourced materials. Case study 14.2 shows that sus-
tainability is a major uniting factor in the manufacture of quality products.
Case study 14.2 Sustainable standards

The American Society for Testing and Materials (ASTM)7 influences the building stand-
ards of 140 different countries. Twelve of its technical committees are involved in the
quality of sustainable building products and it also runs a certification programme to test
performance within building structures. Sustainable building products are often mar-
keted without any evidence of quality and these standards highlight best practice as
well as product performance ‘as built’. There are 225 ASTM standards to help guide
the design and construction of buildings that are more sustainable through energy
efficiency, green roofs, solar reflectance, water conservation, solar energy generation
and air quality. It also sponsors the International Green Construction Code (IgCC),
which is essential to the quality management of environmental certification systems
such as LEED (see Chapter 12). For example, as green roof systems become more
popular sostandards have been designed for plant selection, structural design, water
penetration and irrigation requirements. E2399 on green roof systems helps designers
to evaluate performance of plants in geographical locations and in roof top conditions
before construction.
Waste from rework

Another indirect aspect of quality is waste, which arises from poor design and buildability
and defects in production and assembly resulting in rework, which has to be corrected at
the production stage. Quality in this respect needs to be managed at the planning, design
and production stages of a project. A good procurement process that integrates design,
construction and end user input, irons out conflict and can help to reduce waste, cost
overrun and delays. By implication, lack of integration causes shortcuts and reductions
in quality to keep to budget. The cost of quality is expenses associated with prevention,
planning and inspection. However, such expenses are normally swallowed up in the
direct costs resulting from poor quality: wasted materials, abortive work, rework and
repair, inefficient working, collateral damage, re-inspection, re-testing and penalties for
delays. Indirect costs are: warranty claims, loss of reputation, maintenance problems and
nuisance to occupiers. Case study 14.3 describes the waste situation in the UK construc-
tion industry
Case study 14.3 UK construction waste and rework

The construction sector produces 59 per cent of total waste in the UK. In 2014, 55 million
tonnes of non-hazardous construction and demolition waste was delivered to landfill
sites. Of this, 49.4 million tonnes was recovered, representing a recovery rate of nearly
90 per cent.8 As well as waste produced during demolition, quality problems such as
design faults, inadequate quality of materials and components, lack of management of
the process and workmanship problems also contributed. Waste may be worsened by
the culture of the organisation.
The cost of quality defects in construction has been estimated at as much as 56 per
cent9 of turnover in rework costs; if indirect costs, such as damage to reputation and
loss of business and diversion of management effort to resolve failures, are added this
percentage could be even higher, as indicated in the discussion below
The Egan Report10 identified a focus on the customer as a key driver in the improvement
of the construction industry. According to this report, in the best companies,
[t]he customer drives everything. These companies provide exactly what the end cus-
tomer needs, when the customer needs it and at a price that reflects the product’s value
to the customer. Activities which do not add value from the customer’s viewpoint are
classified as waste.
The report claims that recent studies show that up to 30 per cent of construction is rework.
This provides a challenge for the fragmented supply chain in the construction industry, par-
ticularly in the separation of the design and assembly functions, in relation to improving
outputs. There is a need for the project manager to identify the customer in customer care. In
many cases it is necessary to look beyond the client to the stakeholders who have a continu-
ing interest in the finished project.
Fit for purpose and defect free

Quality is another driver and is closely associated with customer care; it can be defined as
being fit for purpose and the elimination of defects. In the context of customer care, however,
it is also connected with best value and the cutting out of waste. The Egan Report also saw
the quality-driven agenda as a more integrated package; that is,
not only zero defects, but right first time, delivery on time and to budget, innovating for
the benefit of the client and stripping out waste . . . it also means after-sales care and
reduced costs in use. Quality means the total package – exceeding customer expectations
and providing real service.
The Egan ideal – that is, to improve efficiency and quality in the industry – is still relevant. In
addition, pricing for defects and waste materials that have embodied energy and do not have a pro-
ductive purpose is unsustainable. Quality applies to the life cycle of the structure and will impact
on maintenance and running costs. Exceeding customer expectations on quality is a way of moving
the client to a more holistic understanding of the beneficial impact of quality. Managing quality is
important in achieving the level of quality promised. Getting things right first time and moving
towards a zero defects approach means changing the culture and educating the supply chain.
The Latham Review11 also recommended improving quality by the adoption of quality/
value procedures in tendering selection to replace the widespread practice of accepting the
lowest price. The review looked at ways of achieving this whilst not contravening the com-
petitive approach required for public organisations.
The Wolstenholme Report12 identified that 80 per cent of those interviewed thought that
top management was committed to quality and efficiency, and 52 per cent that a quality-
driven agenda was very important and viewed design quality as a high priority issue. Many
projects have a culture of putting things right at the end of the project. Clients see construction
as a commodity purchase and they are thus mainly interested in the upfront costs in relation
to their business plans and have no incentive for improving quality. Continued involvement
of the contractor/designer in the later operation and maintenance of buildings has improved
building quality. Suppliers are offered incentives to keep maintenance costs low.
A 2010 survey conducted by the CIOB13 indicated that, in a competitive market, quality
may suffer in the effort to squeeze budgets to win jobs. Further, a survey conducted in 2018,14
in the wake of the Grenfell Tower fire, demonstrated that supervision of construction quality
was inadequate. Opinion favoured a move away from traditional procurement in bigger pro-
jects toward a more integrated approach that improves communication, quality and customer
satisfaction and value. This leads us on to the principles of customer care, which are closely
related to quality as defined in terms of meeting the expectations of the customer.
Handy’s principles of customer care

According to Brown,15 customer care is an attitude of mind and the way it is carried out is
foundational to every aspect of the relationships that have developed between the supplier and
the customer. ‘Customer care aims to close the gap’ between what the customer expects and
actually gets.
Charles Handy16 identified three principles that he believed transform the ability to attract
customers:
• ‘Customers are forever’, which reinforces the need to provide full customer satisfaction
so that they return again and again.
• ‘Customers are everywhere’, which encourages us to develop a culture so that the whole
workforce has an acute sense of who the client and the stakeholders are so that individu-
als feel accountable for the standard of service they give. It also applies to the internal
user of a service output in a value chain within the organisation or project. It moves away
from concentrating customer satisfaction in the hands of the project manager or a post-
contract customer care department.
• ‘Customers come first’, which assumes that we listen to what the customer wants and
then design the product to suit. This principle is based on the fact that all businesses need
customers. Handy argues that it is not sufficient to change the language before improve-
ments in delivery of quality are achieved.
Principle 1 Customers are forever
Attracting and keeping customers can be an illusive process if you are not sure who your
customer is. A project has a number of stakeholders, some of whom have an influence on the
customer alias client. The key issue in customer care is to provide a good quality of work on
time and to budget. Benefits will be gained from a good track record and the possibility for
tendering future work by remaining on tender lists or preferably negotiating for further work.
As a project manager or designer with responsibility for design and planning applica-
tions, there is a public element to the project regarding how it impacts on the community.
Construction organisations have to recognise the issues that affect the core business of the
client commissioning the construction project and not simply concentrate on the efficiency of
the project. Case study 14.4 describes design responsibility to the community as a customer.
Case study 14.4 The Skye Bridge

In the commissioning of the Skye Bridge joining the Isle of Skye to mainland Scotland,
the joint venture company (JVC) had a responsibility to ensure that it had a viable
income to cover both its expenses and payments to shareholders; however, it also
had a core responsibility to the community and the environment. It therefore needed
to consider the quality of the design and the effect on the lives of local people. Cost
is important but cannot override these other responsibilities. When the JVC had to
spend more money on a redesign to meet the needs of the community following a
planning appeal, the solution was to extend its franchise period for collecting tolls.
The bridge reverted to community/customer ownership after 25 years instead of the
original 20 years planned for.
Principle 2 Customers are everywhere

This principle involves everyone in customer care and it introduces the concept of the inter-
nal customer. The internal customer is another member of the project team. This involves
asking questions such as ‘What is the standard required?’, ‘Am I supplying it on time’ and
‘How can I contribute to the process of adding value to this service?’ Case study 14.5 pro-
vides an example of the internal customer.
The internal customer concept has several implications:
• Each person involved in the project is accountable for the quality of their output, which
means there is nowhere to hide.
• Everyone is aware of the overall requirements of the client.
• Everyone looks for ways in which to improving what they do, believing that it makes a
difference to the big picture.
• Everyone is an ambassador for the organisation and the project.
To achieve this ‘ownership’, changes in culture have to be made and comparatively junior
personnel have to be given exposure to and trusted with clients at their level of operation.
A new respect for other members of the project team has to be established together with a
sense of accountability.
Case study 14.5 Customer care in private housing

One housing developer arranges three progress visits for their customers and this puts
site managers directly in the front line with the buyers. Their internal customer is the
marketing department and they require reliable promises for completion dates and
clean and preferably segregated access to their show homes, with reduced noise and
dust for those who are already moving in.
As ambassadors for their own organisation, the site managers are showing new owners
around their partially completed houses and the way they do this affects how the customer
thinks about the organisation. Their communication skills, the site conditions and the struc-
tural quality will make a strong impression on the customer. This, in turn, may change the
site manager’s attitude toward the provision of a safe and clean environment, and the
promises they make about interim progress, because they are now directly accountable to
the customer. Customers also notice the mistakes that are made in progress like the block-
ing up of a door in the wrong place. Customer awareness of mistakes sharpens the mind.
Principle 3 Customers come first

Putting customers first means listening to what they want and then trying to enhance the
value that is added. They will respond to this in different ways depending on their experience.
Customers come first in construction not by giving away contractor profits but, instead, by:
• Including the client on the team and making sure that the user and the maintenance staff
are involved in the early stages of the design and giving time for adaptation.
• Giving time to add value to the original specifications and iterate the design.
• Using feedback from other projects and from current user problems and concerns, which
may be relevant for design and occupation of the new building. Lessons learnt should be
incorporated into the design.
• Implementing outstanding defects and adjustments in deference to the occupier’s priori-
ties. An aftercare and training programme may be appropriate.
• Obtaining feedback from the customers to inform future work.
Impact of procurement on customer care

Putting the customer first is given more credibility in some of the newer forms of procure-
ment. There are different stages with increasing levels of client involvement. These stages
are listed by the degree of their integration with the client and are differentiated by the
sequence of the four main components of development. The Strategic Forum17 has developed
a maturity grid with three models:
1 Historical (traditional) Need > develop >procure and implement.

2 Transitional Need > procure > develop and implement.
3 Aspirational Procure > need > develop and implement.
These models can be mapped with different procurement systems (see Chapter 4), and 2 and
3 better integrate the customer into the project. The last one allows the greatest amount of
integration because of the more fundamental integration of customer/client and project team
clarifying the need together. The Strategic Forum claims that integration provides significant
financial benefits and allows for more comfortable relationships with the whole supply chain.
As such, it has developed an ‘integration toolkit’ that provides a framework for best practice.
Turnkey, or BOOT, procurement with single-point responsibility allows, by definition,
a negotiation period when preferred bidders sit down with the client to agree what can be
achieved within the available budget framework and how value may be enhanced. This offers
the chance to build up relationships and to more formally value and manage the risks. The
occupation stages are more integrated with the continuing facilities management role. In
design and build, there is an opportunity to have a single point of contact and closer relation-
ships between the contractor and the client that aids in understanding the client’s business.
In strategic partnering, there is the opportunity to use a no-blame contract, to develop col-
laboration with more ‘transparent’ pricing and to hold out incentives for sharing the benefits
of innovation and ongoing improvements from project to project.
The smaller contractor (SME) is likely to operate within the competitive tendering field
and new ways of integrating with the client will be overlaid on model 1. However, many
small contractors are used to providing a turnkey package for the client and have relied on
close collaboration and repeat business for many years. A complex prequalification system
can be a barrier to an SME because of the degree of effort that is required to get the level of
reference and evidence required. Case study 14.6 is an example of a very simple pact that can
be made directly with the client.
Case study 14.6 Client satisfaction: use of a pact to gain

mutual commitment
The Clients’ Commitments18 call for contractor commitment to zero defects at comple-
tion. To encourage progress, clients promise to share savings resulting from innovative
methods, to ‘choose contractors on the basis of whole life costs and to not unfairly
exploit their purchasing power by squeezing the competition’. They also agree minimum
standards of good practice through the Clients’ Commitments, which are leadership,
procurement and integration, health and safety, design quality, sustainability and com-
mitment to people. The client measures their own performance in these areas and
checks behaviours to implement improvement actions. In turn, supply chain partners
are challenged to demonstrate their abilities to achieve client objectives in each of these
areas, e.g. challenging a client’s preconceived ideas, understanding the client’s core
business needs, transparency and trust, early warning culture, ability to manage risk
and zero defects. Other underlying causes are addressed such as a commitment to
fair payment through the supply chain, the transparent reporting of payments and joint
project insurance.
Measurement of client satisfaction

The SERVQUAL measurement system, which was developed for the service sector, can be
used as a measure of client satisfaction with the designer and contractor.19 It is a weighted
assessment of the five dimensions in a service quality box:
• tangibles – visible things indicating a quality service (11 per cent)
• reliability – ‘doing things right first time’ (32 per cent)
• responsiveness – ‘within the timescale promised’ (22 per cent)
• assurance – ‘we have a system’ (19 per cent)
• empathy – ‘we care about our customer’ (16 per cent).
The research weightings indicated that customers rated doing what was promised within the
timescale agreed on very highly. Assurance and empathy related to the level of trust developed
in the relationship between the designer and contractor and the client, and the formers’ under-
standing of the unique requirements of the latter. The client is likely to recommend the designer
and contractor on the basis of good service (consider a small contractor who cleans the house
thoroughly at the end of each day to lessen the nuisance experienced by the occupants). Such
service represents the ‘delight’ factor.
Models of quality
Atkins20 suggested that five tools could be used to control quality in construction:
• product standards and design codes

• technical compliance with regulations, standards and specifications
• liabilities and guarantees covering risk of defects
• registration and qualification of contractors and consultants
• quality assurance and quality management systems.
We shall deal particularly with the last category here. Before we proceed, however, we must
recognise the differences that exist between product, service and process quality, as defined
in Figure 14.1
In construction, product quality is enhanced by managing the suppliers of individual com-
ponents, assuring their quality systems, eliminating defects and getting things right first time.
Process quality is about using the products intelligently in design and assembly so that they
are compatible, protected from damage and installed to best practice and tolerance to prevent
defects. Service quality is about working with the client to give them a sense of being looked
PRODUCT quality defines the

Client delight and effectiveness of the design in
recommendation meeting the client function needs
OVERALL
QUALITY Client satisfaction or
SERVICE quality is a product of hygiene factor
reliability, responsiveness, assurance,
empathy and how the service looks and
feels and gets it right first time PROCESS quality represents the
ability of the provider in working
efficiently to prevent DEFECTS
Figure 14.1 Components of quality and their outcomes

after, as discussed in relation to the SERVQUAL customer satisfaction model. An integrated
approach requires effective collaboration between designer, contractors and client.
Right first time

In the past, quality was ascertained by inspecting the finished output (quality control). This
approach is now considered wasteful as on one-off projects mistakes are found in retrospect
and are abortive. Clients are demanding a higher standard of process management, design
and manufacturing quality that will reduce and prevent defects.
It has been suggested that paying for systems to prevent quality defects21 it less expensive
than paying for failures, scrap, rework and repairs under guarantee – plus the indirect costs
associated with dealing with complaints and loss of reputation. However, start-up costs are
high and there is a learning curve as causes of poor quality are unravelled. That said, the cost
should be recouped in the medium term. The Pareto principle stating that 80 per cent of faults
are the result of 20 per cent of causes provides a focus for investigation (see Figure 14.2), but
also suggests that the remaining 20 per cent of defects will be more expensive to eliminate
because the causes are very diverse.
It might be assumed that causes are consistent from project to project, so that there is a
cumulative driving down of defects occurring as they are understood and prevented. This
is a likely scenario in similar projects and supply teams, but the situation may vary in other
contexts. Management commitment is required to fund upfront quality systems as a central
overhead and staff commitment are required to believe that quality can be improved.
Two approaches promote the ‘right first time’ philosophy:
• quality assurance (QA)

• total quality management (TQM).
Both of these approaches depend on an early planning approach to quality in order to save on
abortive costs. Quality systems need to be set up each time a new project is to be started to
100% Concentrate
on this 20%
of causes
Number of faults
80%
80% of
faults
eliminated
0%
0% 20% 100%
Number of causes
Figure 14.2 The Pareto principle for defects and causes

ensure that the project quality proposed by the supplier is equal to the level expected by the
client for the project and that lessons have been learned from previous mistakes for continu-
ous improvement.
Quality management
Quality management has famously been sponsored in recent years by Juran,22 who
developed the quality trilogy of quality planning, quality improvement and quality
control; Crosby23 who coined the expressions ‘do it right first time’ and ‘zero defects’;
and Deming,24 who devised the Plan–Do–Check–Act cycle (see Figure 14.3; note that
‘check’ is now replaced by ‘study’, hence PDSA). These so-called gurus were responsi-
ble for systems that hugely improved the quality and productivity of Japanese industrial
products, giving them a competitive edge. Indeed, they still lead in this area today,
demonstrating that quality pays. Crosby proposed a maturity model that moves through
uncertainty, awakening, enlightenment, wisdom and certainty.25 Attitudes likewise pro-
gress from ‘we don’t know why we have quality problems’ to ‘we are identifying and
resolving our quality problems’ to ‘defect prevention is routine’ to ‘we know we do not
have problems and quality improvement is normal’. Many large clients will be bemused
at anything less than defect prevention.
There is a difference between the culture of quality control and the new paradigm of qual-
ity management. Both presuppose some pre-planning to reduce incidents that cause defects
but management formally aims to eliminate defects. This section discusses the merits of the
four quality regimes commonly used and their relationship to productivity and client satisfac-
tion for the project. It is important to take this a stage further and look at the four systems for
quality improvement described below:
• Quality control monitors output, compares, corrects and possibly introduces new
processes.
• Quality assurance uses previous experience, standards, quality managers, well-defined
processes, health checks and a stable process to get it right first time.
• Quality planning enables a leaner process (see Chapter 9) by eliminating the waste
resulting from abortive work.
• Quality management depends on the continuous improvement philosophy of the organi-
sation an includes TQM at the top end.
Plan ahead to PLAN Small steps in

ensure results controlled context
ACT DO
Standardise and Check and study

improve STUDY results
Figure 14.3 Deming’s PDSA cycle

Quality control
Taguchi’s model of loss function identifies loss as costs incurred by loss of function and loss
of profit. It tries to optimise the level of quality control with cost benefit. Loss should be mini-
mised by quality management and appropriate design. He identifies offline (pre-production)
and online (production) quality management. Offline management covers design in three forms:
• systems design – reflecting appropriate technology

• parameter design – whereby it is easier to design a product insensitive to manufacturing
variances (e.g. brickwork) than it is to control those variances (e.g. rain screen curtain
walling that must be 100 per cent impervious and fire proof)
• tolerance design – the degree of variance permitted in assembly.
In Taguchi’s system, production quality management should aim to minimise variations and
to gain automatic control where possible. Case study 14.7 looks at a quality control system.
Case study 14.7 Quality control of piling

This site consisted of a piling mat of 1523 12-metre and 15-metre long piles to be placed
in a series of concentric circles across the foot plate of the building. Continuous flight
auger piles were used. The tolerance for the piles was critical as the scientific use of
the building required high floor level tolerance and foundation movements were critical
to this. High loadings were expected. An inspection and test plan (ITP) was devised
and supervised by the managing contractor. However, first-line responsibility for quality
and setting out was given to the specialist contractor. The specialist contractor acted
autonomously to correct small discrepancies, but any discrepancies discovered in the
piling outside a band of tolerance required structural engineer involvement and possible
redesign of the piling pattern to compensate. To ensure the quality of the piles several
checks were made:
• Record of the piling operations indicating the pile concrete profile and wet concrete
pressures.
• Interpretation of complex clay and chalk ground conditions to predict different piling
methodologies and concrete slumps.
• Testing programme for the strength and slump of the concrete.
• Testing programme for the integrity and movement of the piles.
Each of the above gave clues as to the success of the pile and the first two meas-
ures were partly preventative and could reduce the cost of remedial action by the more
immediate action that was possible. All data and test results identified the pile.
Concrete could be rejected if it was not within certain slump limits and cube tests
under strength. The slump needed to be higher if cast into chalk, which sucked out the
water from the concrete making it stiffen quicker and cause problems for the lowering of
the reinforcement cage into the concrete. The seven-day results were tied to other data
about the pile from the computerised piling log and the 28-day strength predicted. A bad
result or prediction would lead to re-boring the pile.
Proof testing was carried out on 5 per cent of piles in situ, by the use of 23-hour load
tests to check the friction resistance. Cheaper integrity testing was carried out on all
cured piles using non-destructive testing and measuring toe seat deflection. Any sub-
standard piles found were supplemented with further adjacent piles.
This regime needed the specialist contractor to carry out routine testing and a quality
checker onsite on behalf of the main contractor who was also a setting-out engineer.
The cost of this was offset by also giving them a planning and monitoring role to predict
the rate of piling progress and to co-ordinate safe, uninterrupted access for three pil-
ing rigs and their associated equipment and to ensure access for concrete lorries. The
checker also carried out supervisory roles for ensuring the progress of other works and
progress with the master programme. All work was completed in 11 weeks at an aver-
age rate of 30 piles per day and a maximum of 48 piles per day.
It could be argued that, in an enlightened role, the accountability for non-compliance
could have been put upon the piling contractor and there would be no need for inspec-
tion. However, the huge delay and financial consequences of the foundation works
being found faulty at the user stage justified the extra cost of a single well-trained
checker with adequate management backup.
Case study 14.7 indicates the intricate nature of quality control and the need to supervise
it arises out of the tight tolerances required by the client. However, value has been built into
the process by using the supervisor to also co-ordinate other work. This is an example of
effective feedback control.
Quality assurance
Quality assurance (QA) is a check on the quality process rather than the product and ser-
vice provided and can be considered to be the hygiene factor in Herzberg’s theory,26 i.e. the
threshold minimum to have a process that does what it says it is doing. It is recognised that
checking service quality is more difficult because it concerns the quality of interpersonal
relationships and thus requires an observation-based audit.
QA procedures are well-established audit-based systems and require a production process
to be properly defined so that third-party checks can be made at key points to ensure compli-
ance with procedure. Assurance does not define the procedure, but checks that the procedure
is being used correctly. ISO 9001:201527 is the main international standard with third-party
accreditation. In theory, quality checks cost less than the abortive costs of not getting it right
first time. A model of QA is shown in Figure 14.4.
The quality system must be sound otherwise QA will simply ‘seal in’ the faults. This may
be worsened if there is only a periodic review of the system in terms of making improvements
so it is simply assumed that such improvements are frequently occurring. For this system to
be successful it needs to change the culture so that people understand why they are checking
systems. One problem may be that people do not feel a sense of ownership in relation to the
system, so senior management only seeks limited feedback for improvement. A system that
is owned by the project produces more suggestions for improvements. For the client, third-
party QA is important evidence of potential; however, it does not guarantee zero defects.
ISO 9001:2015 is a means of third-party accreditation, with an improvement module, ISO
9004. It assumes a repeatable production process, with the quality of outcome depending on
Check system
Formal Independent Product guarantee
complies and is Review
QA system audit and conditions
implemented
Is design and
specification correct?
e.g. ISO Is workmanship
9001:2015 standard achieved?
Does management
work?
Quality
Are the right checks in
improvements
place?
1SO 9004
Figure 14.4 Quality assurance system
one organisation. This is clearly not the case in construction projects. Hellard28 argued that
there is a need to co-ordinate the different QA systems operated by various suppliers to the
project and to overlay a project quality system or quality plan. He claimed that the process of
self-assessment and client assessment of quality is the most effective line of attack, but requires
a senior commitment to drive through changes in attitude. The principles of ISO 9001 and 9004
emphasise leadership, people involvement and mutually beneficial supplier relationships.
Quality management and culture

Corporate philosophy, traditions, values and commitment create the culture of an organisa-
tion and provide a basis for its mission statement. Theory Z is a term coined by William
Ouchi to describe an ideal organisational culture. It is based mainly on the successful meth-
ods and approaches used by large Japanese companies that assumed life-long employment.
This culture is less bureaucratic and hierarchical and encourages integration and job rotation
to help promote understanding of and shared responsibility for quality and its improvement
at all levels of the organisation by encouraging consensus in decision making, reached by
agreement with peers and subordinates. He argues that self-direction and mutual trust lead to
high levels of performance and job satisfaction, and may also lead to less paperwork, intui-
tive improvements and less supervision.
Effective communication and teamwork

The three elements of quality (product, process and service, as shown in Figure 14.1) are tied
together by effective communication between parties and the development of trust and col-
laborative team behaviour. Seamless communication between the client, designer, contractor
and supply chain results. Only one of these links needs to break down for quality to be at
risk. For example:
• Poor quality drawings from the architect to the contractor with missing or wrong dimensions
that have not been checked or communicated cause consternation and delays (process).
• A client’s lack of communication to the designer, e.g. presence of asbestos in a building
being refurbished, causes regulatory delay, costly removal and redesign (process).
• The contractor not passing on specialist contractor requirements so that layouts are not
properly co-ordinated (product).
• A subcontractor fails to provide information about delayed materials so that work is
sequenced incorrectly and other subcontractors lose trust in them and closing ranks in
terms of co-operation (service).
• The contractor, fearing client penalties, does not report critical quality issues until delays
are irretrievable (service).
Each late redesign or delay is inextricably tied up with loss of quality resulting from pressure
on time or strained relationships. The planning and checking system may also be compro-
mised or break down. The system can easily proceed from a win–win to a win–lose situation
for the client, designer or contractor. Problem solving is less effective as the teams become
less co-operative. The service quality to the client may also break down if they are not kept
informed of delays so they lose their sense of assurance.
Teamwork is also a motivator of synergy and depends upon sharing information,
building up trust and ensuring transparency. Conflicts due to lack of these things mean
that vital information is withheld, which puts quality of the overall product at risk
in its interface with others. If the synergy is lost, the work slows down and demotivation
sets in, which affects the standard of workmanship and design problem solving. For the
operation of TQM (see below), a good team spirit is necessary to provide workers with
the confidence to get involved in improving quality. Quality circles require workers
from different disciplines to come together to try new things, which will not happen if
goodwill and co-operation have been withdrawn. Case study 14.8 is a practical example
of teamworking.
Case study 14.8 Quality improvement through

teamworking
In a rolling programme of workshops for a government agency, quality had not been up
to the expected client standards. This especially applied to finishes that were very vis-
ible. The team had become demotivated because a lot of remedial work was taking place
near the end of the project, which delayed handover and was expensive. There was a
feeling that they were struggling constantly, affecting time, cost and quality targets.
The action invented to overcome this situation was called the ‘sparklemeter’. The
project manager awarded points on parallel contracts for the appearance of various
sub-contracted elements on the basis of a ‘sparkle factor’; each contract was given a
breakdown score out of 100. The overall and individual element scores for each con-
tract were compared to introduce a level of competition to improve scores. A bonus was
awarded each month for the best contract teams.
As some of the quality was suffering due to the quality and timeliness of the drawing
information, construction teams were also allowed to score the design efforts at the
progress and design meetings. This allowed for a two-way competition and included the
designers in the delivery team score. Discussion was held at each of these meetings to
discuss improvements.
(continued)
(continued)
The method proved successful in improving service quality and standards in a fun
way and quality assurance was taking place naturally between teams to ensure preven-
tative methods to increase scores. The improvement also was motivated by the waste
and cost savings to be achieved. Targets were:
- 50 per cent to be improved on construction waste

- 50 per cent to be improved on whole life cost by reducing maintenance.
Reputation and costs

The importance of quality as an essential factor of competitiveness, progress and reputation
has been well established in the industrial sector, and construction organisations are now
recognising it too. It is also an aid to the development of the firm. Leading clients also recog-
nise the impact of quality factors on their reputation and business returns. The rationale for a
quality system is that it saves money for all parties because:
• search for quality makes it possible to reduce production costs by less abortive work due
to defects
• quality is part of the brand image of the firm
• client has more confidence in suppliers and so less interruption
• less disruption due to latent defects.
Applying this cultural approach to quality improvement is the basis of total quality man-
agement, which seeks to involve the whole workforce in thinking about quality inputs. It
advocates not only ‘right first time’, but continuously improving the process by encouraging
feedback and review.
The cost efficiency of quality depends on balancing the cost of quality systems with work
improvement and the costs of failure; that is:
Quality cost = quality assessment – quality improvements – failure costs
Progressive projects aim for zero defect costs and a bonus to marketing.
TQM and customer focus

The basic principle of TQM is that responsibility for quality is delegated to the whole
workforce and senior management is committed to provide incentives for workers’ ideas
to be tried out. It is a big change in culture and some managers may feel threatened as
workers gain a sense of ownership and question instructions. Amongst other things it is
spreading the marketing function to the whole workforce and exposing them to client
scrutiny to justify their area of quality. This reflects Handy’s second principle – customers
are everywhere.
TQM also encourages more self-regulation, which leads to less supervision and con-
trol, and quality becomes a matter of worker pride. This boosts worker empowerment
and accountability. It is acknowledged that TQM is an evolutionary process that works
in conjunction with other ‘tools’ and should be adapted to suit the smaller organisation. It
provides an integrated response linking workers and management, which integrates client
need more directly with the service offered. Case study 14.9 is an example of integrating
a product with a service.
Case study 14.9 Bekaert Fencing

One customer-focused approach is to provide cast-iron guarantees on the performance
specification of the product. For example, Bekaert Fencing29 offers the client a guaran-
teed 15-year level of security for their property. Here, it is selling a service (security)
for a given sum and not a product (fencing). and Bekaert invests effort in creating a
relationship with its clients and any worries they have regarding the durability and con-
tinuing efficacy of a fence is removed. The company instals and maintains the fence
in a suitable state and pays compensation for any breaches of security. Bekaert offers
security guarantees of 20, 30 and 40 years to suit fence life requirements.
TQM is difficult to define but its objective, according to Hellard,30 is to set out a framework
for action to fully satisfy customer requirements. From a survey of the literature, including
Deming, Crosby, Juran and Ishikawa, we derive these common principles:
• management leadership to develop a quality culture

• continuous improvement of processes and product (not just better motivation)
• wide-ranging education programme for management and workforce
• defect prevention rather than inspection
• data use and statistics tools for benchmarking evidence
• developing a team approach between departments and between all authority levels.
The TQM approach, by definition, is customer focused and must first identify customer
needs and expectations and then establish standards consistent with those requirements.
This will provide the basis for establishing quality standards and enabling and empowering
middle management and the workforce to achieve them. For TQM to work in construction,
lessons learnt need to be taken to the next project and, if possible, the same core team used.
In construction projects TQM is not seen as an easy approach and it is not surprising that it
is resisted. Some people are not convinced that they can make the most money this way as
profits can be enhanced by devious contractual claims. It is also clear that there are several
complications that make it harder to adapt principles that were first devised in the context
of manufacturing to the one-off nature of construction projects; for example, building up a
culture of worker empowerment in the short time a project team is together and blending
the system to cut across separate specialist organisations. The entrenched ‘them and us’
attitude fostered by the segregation of the client and the supply chain is also unhelpful.
Case study 14.10 describes a contractor’s approach to TQM.
Case study 14.10 Developing the TQM culture

Turvey,31 in a study into a major private developer, looked at its programme to make the
company more customer focused and identified various ‘key inhibitors’ to the adoption
of such a policy due to the nature of the industry itself. These included the project-based
nature of the building industry, which means that the focus tends to be on the building
and not on the customer, and the sheer number of different organisations involved
who may never have worked together before, all trying to make a profit in whatever
way possible. These inhibitors made selling the idea of TQM difficult. There was also a
tendency to revert to old confrontational attitudes when a significant problem occurred.
The company, however, remained optimistic and identified enablers that were remark-
ably similar to the principles outlined for the development of a TQM policy. These were
establishing customer requirements at the outset; operating an open-book policy with
the client, including a measure of co-location of project staff; and developing partner-
ships with suppliers and training programmes to change the culture.
Hellard32 identified several more difficult issues in construction project culture and
strongly advocated working together in partnership with the client and all contractors
as a means of countering them. In this respect, the client becomes part of the ‘senior
management’ commitment that enables a TQM approach to be adopted on a current pro-
ject and used to explore ongoing improvements to be applied on the next, in the sense
that customers are forever (Handy’s first principle). This will initially involve a financial
commitment that should pay dividends later by adding value to the project. This sort of
collaboration has developed where contractor teams have temporarily been merged into
the client organisation.
Hellard and Turvey both mention the importance of meeting the needs of the internal cus-
tomer in achieving TQM. The internal customer is the next person in the workflow chain; for
example, this makes the estimator the customer of the quantity surveyor and design team as
they put the tender documents together. It also makes the painter the customer of the plasterer
and the M&E contractor the customer of the services consultants and the main contractor.
Customer focus turns the traditional attitude of selling contracting or consulting services on
its head and represents a major change in culture. Obligations through the workflow process,
such as provision of reliable, timely information in an understandable format, should serve to
cut out waste and help make the internal client’s input more effective. The efficiency of the
workflow will definitely benefit the project client also. This reflects Handy’s second principle
of customer care – customers are everywhere.
The sponsoring client represents the external project customer, but in an integrated project
management approach the end user of the facility is important. The end user is a stakeholder
responsible for the operation of the various services and building systems as a building user.
This reflects Handy’s third principle of customer care – customers come first.
Implementing a construction project quality plan

Performance concerns the assurance that quality standards have been met and equip-
ment works. The purpose of a quality plan is to have a strategy for the implementation
of the procedures chosen that can work and which identifies the right quality tools to
control production and monitor them for improvement. The CIOB Code of Practice33
indicates a hierarchy of quality policy based on the brief and establishing standards, a
quality strategy and a quality plan. It is important to allocate responsibilities to specific
members of the management team and to appoint leadership in each of the packages and
overall during design and construction. The Code of Practice also suggests a periodic
review of quality actions to check their effectiveness. Benchmarking the service and
product is possible in order to ensure that a standard has been reached and the plan can
be improved.
Other issues in the plan are the administration of guarantees for product and building per-
formance and the timely use and preventative maintenance of the building and equipment,
which may mean regular servicing, training and replacements. Breakdown maintenance
should also be efficient to maintain building functionality, efficiency and safety. A client
may choose to pay for this upfront.
Customer satisfaction is centred on their confidence in the system and effective operation
of the system and they will interfere less where there is evidence of effective controls. Zero
defects should apply to the performance of the building and equipment and some expectation
of minor problems can be tolerated where business productivity is not at stake, as suggested
in the Constructing Excellence benchmarks. The client experiences more frustration when
key components and systems fail to function or business is disrupted than when the project
is delivered late.
Relationships with clients and later with users underpin achievement of quality and devel-
oping these in partnerships or through other means is important. Case study 14.11 illustrates
how a contractor has developed its business to focus on the client as a means of achieving
better value.
Case study 14.11 Client accounts

It is not unusual for contractors to develop special relationships with clients.
A medium-sized contractor originally offering a service in the Southwest divided its
services into three business units – retail, leisure and general construction – client
accounts were created for each. Organisationally, although the company main-
tained a head office in the South, it was now servicing client buildings nationally, as
the focus of each unit was to build up its relationship with particular clients in the
niche market and to follow its orders across geographical boundaries. Staff in each
unit were trained to get to know the market and the particular client and an account
manager rather than a contract manager was responsible for allocating teams
and resources who were trained to understand their needs. Clients requested that
teams remain intact and move from contract to contract, which meant that staff
were expected to be mobile. This impacted on management of the supply chain
and made it necessary for its members to be equally willing to be mobile in order
to maintain the team. Clients encouraged innovation and set lower time and cost
targets whilst maintaining a desire for quality and value.
The contractor client base for the specialist markets also declined substantially to
match the capacity of the contractor to develop ongoing relationships and its potential to
secure its best profit margins in a business it knew intimately. The synergy from better
professional teamwork was also released.
Conclusion
Customer satisfaction is an important part of the process of project and quality man-
agement. Handy’s principles of customer care are important in achieving this. Three
construction KPIs are relevant to quality: client expectations of service, product quality
and fewer defects. Satisfaction has showed an upward trend and defects have remained
steady over the last 10 years. Service quality is what makes you stand out in the crowd.
Quality is also a function of teamwork and communication and these are critical whatever
quality management system is chosen. A quality control system alone is costly unless it
also includes a measure of defect prevention to cut down wasteful rework and to spread
accountability amongst the workforce.
As clients become more confident in identifying and voicing their requirements, so there
is a greater need for a quality management system. Quality also becomes an important
part of a balanced scorecard in selecting winning tenders. This means clients will look for
excellent service at a reasonable price. The culture of continuous quality improvement is
more difficult in construction because of the fragmented nature of construction projects
where the team is often together for a relatively short time and rarely reformed on the next
project. Partnership and account management are two ways forward so that teams can build
up relationships over a longer period. Partnership may be one-sided and too financially
demanding in subsequent work if the right culture does not exist, forcing shortcuts to be
made and thus affecting quality.
Some clients operate a charter system34 that sets standards of ‘clientship’ and requires
reciprocal adherence to such standards by suppliers. A charter system also allows contrac-
tors to assess clients when choosing which can provide sustainable profitability for them.
In good economic times contractors have restricted tendering to ‘good clients’ and built up
relations with them for repeat work to reduce their tendering costs.
Future pathways could include the longer-term commitment of a contractor to provide
a service rather than to hand over a facility so that clients may be guaranteed a certain
level of performance during the user phase of the project. This will come at the price of a
maintenance contract but not necessarily in the form of year on year payments, as in the
case of Bekaert Fencing (Case study 14.9). This already happens with PPP procurement,
which provides facilities management over a concession period and guarantees the quality
of components to reduce life cycle and maintenance costs. Private clients can proceed with
similar joint offerings ensuring built in quality and an extended economic life for their
buildings and infrastructure.
The use of client accounts is generally associated with partnering. This approach entails
reducing the client base with the intention of agreeing to a programme of repeat work that
can incorporate the continuous improvement of quality by involving the same teams.
TQM is a step further in generating a culture of customer care and continuous improve-
ment. It pervades the project at all levels of the supply chain to ensure that everyone in an
organisation is accountable for quality, making the need for a third-party quality accredita-
tion system less critical. Whilst this model has been successful in other industries, such as
retail, car manufacturing and steel, it is currently less commonly applied in construction
projects. It also requires a much more integrated project team to be in place, such as a
partnering arrangement, and effective supply chain management. TQM is related to the
culture of lean construction so that waste is reduced and new ideas for improved quality in
a productive context are constantly offered by frontline workers.
Notes
1 Maister D. H. (1984) Managing the Professional Service Firm. New York, Free Press.
2 International Organization for Standardization (ISO) (2004). ISO 9000:2000. Quality Management
Systems – Fundamentals and Vocabulary. Available online at: https://www.iso.org/standard/29280.
html (accessed 18 August 2018).
3 Gardiner P. (2005) Project Management: A Strategic Planning Approach. Basingstoke, Palgrave
Macmillan.
Construction and Thoughts for Our Future. London, Constructing Excellence, p. 18.
5 Infrastructure and Projects Authority (2017) Common Minimum Standards for Construction:
Procurements of Built Environments in the Public Sector. Available online at: https://assets.
publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/600
885/2017-03-15_Construction_Common__Minimum_Standards__final___1_.pdf (accessed 2
May 2018).
6 Cabinet Office (2015) Government Construction: Construction Cost Trajectories to March 2015.
Available online at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/466952/20150825_Annex_A_Departmental_Cost_Benchmarks_Cost_
Reduction_Trajectories_and_Cost_Reductions_2015_Final_Draft.pdf (accessed 14 July 2018).
7 Clauson D. (2013) Greening the Built Environment. ASTM Standardisation News. Available online
at: https://www.astm.org/standardization-news/?q=features/greening-the-built-environment-nd13.
html (accessed 11 May 2018).
8 Department of the Environment, Food and Rural Affairs (2018) UK statistics on waste. The recov-
ery rate from construction and demolition waste is available on p. 7 and waste generation by source
is on p. 9 Available online at: https://assets.publishing.service.gov.uk/government/uploads/system/
uploads/attachment_data/file/746642 (accessed 2 January 2019).
9 Holt A. (2016) The True Cost of Bad Quality. UK Construction Online. Available online at: https://
www.ukconstructionmedia.co.uk/features/true-cost-of-bad-quality/ (accessed 16 September 2018).
the Regions.
11 Latham M. (1994) Constructing the Team: Final Report of the Government Industry Review of
Procurement and Contractual Arrangements in the UK Construction Industry. London, HMSO.
12 Wolstenholme (2009).
13 CIOB (2010) A Report Exploring Procurement in the Construction Industry. Available online at:
https://www.ciob.org/sites/default/files/CIOB%20research%20-%20Procurement%20in%20
the%20Construction%20Industry%202010_1.pdf (accessed 14 June 2018).
14 Mann W. (2018) QM is Inadequate Say 75% in CIOB Survey. Construction Manager. Available
online at: http://www.constructionmanagermagazine.com/news/three-quarters-construction-
professionals-say-qual/ (accessed 11 July 2018).
15 Brown (1989), quoted in BPP (1994) Professional Stage 1 Management Practice. London, ICSA
Publishing.
16 Handy C. (1999) Inside Organizations: 21 Ideas for Managers. London, Penguin.
17 Strategic Forum for Construction (2015) ICW Toolkit: Integrated Collaborative Working for
21st Century Project Delivery. Available online at: http://icwtoolkit.com/toolkit-guide/maturity-
assessment/ (accessed 19 June 2018).
18 Construction Clients Group (2014) Clients’ Commitments: Best Practice Guide. Available
online at: http://ccg.constructingexcellence.org.uk/wp-content/uploads/sites/3/2014/10/Client-
Commitments-Final_May-2014.pdf (accessed 14 June 2018).
19 Berry L., Parasuraman A. and Zeithami V. (1994) Improving Service Quality in America: Lessons
Learned. Academy of Management Executive, 8(2), 32–52.
20 WS Atkins International Limited (1994) Secteur, Strategic Study on the Construction Sector: Final
Report: Strategies for the Construction Sector. Available online at: https://www.worldcat.org/title/
secteur-strategic-study-on-the-construction-sector-final-report-strategies-for-the-construction-
sector/oclc/61873787 (accessed 11 May 2018).
21 Turner R. and Huemann M. (2007) Managing Quality. In R. Turner (ed.), Handbook of Project
Management. 4th edn. New York, McGraw-Hill.
22 Juran J. (1967) Management of Quality Control. New York, New York.
23 Crosby P. (1967) Cutting the Cost of Quality. Boston, MA, Industrial Education Institute.
24 Deming Institute: https://deming.org/explore/p-d-s-a.
25 Cambridge Network (2010) Quality Insights – The Quality Management Maturity Grid, quoting
Crosby (1980) Quality is Free. Available online at: https://www.cambridgenetwork.co.uk/news/
quality-insights-the-quality-management-maturity-grid/ (accessed 5 May 2018).
26 Herzberg F. (1966). Work and the Nature of Man. Cleveland, OH, World Publishing.
27 ISO (2015) ISO 9001:2015 Quality Management Requirements. Available online at: https://
www.iso.org/standard/62085.html (accessed 12 August 2018). ISO 9001 covers design, manu-
facture, installation, testing and inspection of a system. ISO 9004:2018 provides guidelines for
improvements.
28 Hellard R. B. (1993) Total Quality in Construction Projects: Achieving Profitability with Customer
Satisfaction. London, Thomas Telford.
29 Constructing Excellence (2004). Best Practice Case Study. Available online at: http://www.
constructingexcellence.org.uk/resourcecentre/publications/document.jsp?documentID=116220
30 Hellard (1993).
31 Turvey J. (1999) Customer Focus in the Construction Industry. Unpublished thesis, University of
the West of England.
32 Hellard (1993
33 CIOB (2014) Code of Practice for Project Management: Construction and Development. 5th edn.
Oxford, Blackwell.
34 Construction Clients’ Group (2014) Clients’ Commitments: Best Practice Guide. Available online at:
http://ccg.constructingexcellence.org.uk/wp-content/uploads/sites/3/2014/10/Client-Commitments-
Final_May-2014.pdf (accessed 2 January 2019).
15 Project close out and systems improvement
What? Completion is the final project stage that follows after construction and testing have
been completed and signed off by the client’s representative responsible for operations and
the in-use stage. The final stages of the project life cycle are to commission, handover and
review the project to the satisfaction of the client. Completion also involves introducing the
user to the operation of the facility and compiling documentation that provides information
on the safe, efficient and effective use of the building.
Post-project review (PPR) includes a benefits assessment that compares performance with
the original client objectives and also assesses if the project is a success in the spirit of
continuous improvement. Improvements should have been sought throughout the project.
Post-occupancy evaluation (POE) considers the impact of the design on the user experience
and the success of the wider project objectives for the users. This stage of the project is when
to ask what made the project a success or otherwise. The objectives of this chapter are to:
• consider the requirements and management of commissioning

• look at the requirements for successful handover and close out
• associate the handover processes with the post-project support
• evaluate post-project appraisals and benefit evaluation in terms of learning to be passed on
• discuss system improvement measures that suit projects, including BIM
• integrate facilities management issues in the project lifecycle.
Why? It is common for the importance of these stages to the client and user to be overlooked
by project managers. Few projects incorporate a formal process to progressively monitor
benefits delivered by the project to the surrounding community, the team or directly to the
client. Without this process there may be under-reporting of coincidental outcomes and also
late decisions that lead to anticipated benefits deteriorating into poor value for money (VFM)
at the completion stage. The purpose of the completion phase is to ensure that a functional
building has been constructed that meets the requirements and objectives identified, devel-
oped and reviewed in the project life cycle. The post-project review identifies lessons to be
learned to avoid issues such as fragmentation, team burnout and conflicts in future projects.
For the end user, completion and handover provide the opportunity to realise the change they
were hoping for and also to offer feedback to the project team.
How? The closeout phase runs from the commissioning of the project to client occupation. A
strategy is set out for successful completion and handover of the project to the client. Facilities
management is assumed to be integrated into the project throughout and at closeout stage is seen
from the perspective of user needs. The end of the project life cycle is the beginning of a much
longer asset life cycle in the hands of facilities managers. Projects that have no formal FM team
hand transfer responsibility for carrying out operations and maintenance to the owner. The soft
landings philosophy is applied to transfer of ownership from the project team to the client whereby
it occurs over a transitional period. A strategy for capturing, documenting and sharing lessons
from the project is developed from reputable organisational learning and process improvement
innovations such as lean, total quality management (TQM), Six Sigma and agile management. A
model that helps to develop a mutual leaning project environment is developed.
Completion stages
Project completion and handover stages formally transfer responsibility for and ownership of
the project and its deliverables to the client for operational use. For the client and end user,
completion of the project is the realisation of long awaited benefits. The project is an agent
of change that delivers improvements to business, people and operations. There is a sense
of anticipation that things will be different when the project is ready for use. There is also a
feeling of disappointment that the collaborative working relationship will come to an end as
the team is disbanded.
Project completion documents highlight lessons learnt in the final closeout report to the
client. The client and their stakeholders, both internal and external, will have varied interests
in the report. Project completion involves numerous testing activities before the project is
signed off. A completion stage plan has to be agreed in advance with the relevant authorities.
Roles and responsibilities for commissioning must be agreed before the team is disbanded
and machinery relocated to the next project. A typical example would be the retention of the
mechanical, electrical, and plumbing (MEP) subcontractor, commissioned to install the heat-
ing, ventilation and air-conditioning (HVAC) system, to train and support the user.
Commissioning ensures that the building functions according to specification and that
it is tested to ascertain that all of the different services and building fabric interfaces work
together. The sequence of activities is shown in Figure 15.1.
Commissioning
Commissioning is a critical operation that takes place at the end of a project, but which needs
to be planned for at the beginning of the project so that adequate time for full, unobstructed
access to the whole building, or distinct service zones, is provided in order to make sure that
all elements of the building are working satisfactorily. Figure 15.1 shows the commissioning
process. A strategy for commissioning to suit requirements is incorporated in the master plan
and the construction plan from the beginning of the project and may be phased if there are
Handover
Building and Client
Commission documentation Client
services work commissioning/
services and facilities occupation
complete fit out
training
Commission
fabric and Preparation for
building leakage move
Figure 15.1 Chain of commissioning and completion

Project close out and systems improvement 441
many discrete units in the structure. As well as playing an important part in the latter stages
of the construction phase, commissioning also plays an important role beyond construction
into the client’s fitting out and occupation, as services and fabric will only be deemed to
be operating as intended when the building is loaded and occupied. This has become more
important as a result of increasing emphasis on reducing energy consumption in buildings
and CO2 emissions, as well as client demands for ‘soft landings’.
Final commissioning controls the methodology of the main programme as it is the last
activity before handover. Adequate time should be left for adjusting the fabric and/or ser-
vices to deal with any unexpected deviations in performance. This can include testing for
leakages in the building fabric and ensuring BREEAM predictions are met, as well as the
more traditional adjustment or balancing of heating and air-conditioning controls. The fab-
ric of the second fix and finishings needs to operate well so that doors and windows work
properly, units are not leaking and water, gas and air arrive at the right pressure according to
seasonal variations. Elements of the building may also be damaged by tradespeople under-
taking subsequent work, such as by driving nails through pipes under the floor, puncturing
roof membranes or dislodging underground pipes or services.
Despite the greater demands being placed on clients and the construction supply chain to
deliver buildings that are right first time and limit energy consumption and CO2 emissions,
many buildings are still put in service without full commissioning or sufficient fine-tuning to
ensure basic performance requirements are being met. As the relationship between most cli-
ents and their design and construction teams are short term and infrequent the latter are rarely
called upon to assess how their buildings actually perform in use, whether or not they meet
the needs of users and management, and how they might be improved. Some new buildings
still have problems providing the necessary air-tightness, insulation and shading, while many
control systems do not work properly, waste energy and have poor management and user
interfaces. Environmental assessment systems are mostly concerned with design features and
management processes, and do not identify these problems in the functionality of buildings.
This situation is further compounded by the increasing use of new and complex technologies
designed to help make new buildings use less energy and reduce CO2 emissions.
This increasing complexity in the functioning of buildings is forcing facilities managers
into maintenance and management regimes that they are neither experienced in nor trained
for, and which the building owners may not be able to afford to run, meaning they may never
work as intended. Such complexities include increasing use of onsite generation, particularly
through renewable sources of energy such as biomass boilers and solar power, which can be
expensive to run.
Clients, government and society in general now expect design and building teams to
be able to predict more precisely how their buildings will perform in use over their antici-
pated lifespan. However, in most procurement approaches design and construction teams
usually disband at practical completion and do not follow through into occupation of the
building to learn how their building performs in practice. This has been changing to some
extent with PFI projects and other procurement routes, where the design and construc-
tion team are tied into the project beyond the traditional point of handover. The CIOB1
advocates for early appointment of an independent commissioning specialist contractor
who will review design drawings and appraise the ease of commissioning. Specialist com-
missioning contractors appointed to design, install and commission services, excluded in
the building contract, may witness the testing of work of other trades. Case study 15.1
illustrates the need for user input.
Case study 15.1 Centre for Mathematical Sciences

The concept of ‘soft landings’ was developed by architectural consultancy Mark Way2
and subsequently picked up and developed by the director of estates at a leading UK
university. The phased development of a new mathematics centre and a ‘no blame’
attitude adopted by the client permitted a continual assessment of the emerging design
in actual physical performance and user expectation. Following completion of the first
phase of construction, a post-occupancy evaluation was carried out to measure the per-
formance of the recently occupied buildings. As part of this study, an occupant survey
and a full building pressure test were also conducted. Many of the results were incor-
porated into design changes for the subsequent building phases. The results revealed
the importance of automatic environmental systems responding to user feedback. For
example, should a user wish to override a window closing, the controls should be capa-
ble of acknowledging that user’s input. Lack of response to such user feedback can
lead to frustration. Final appraisal of the project revealed that both the users of the new
centre and university management saw the project as a great success.
In civil and infrastructural projects there may be important engineering checks that are
dependent on structural strength, water tightness and loading criteria, such as maintaining
water levels and submitting pipe work to full pressure testing during pumping. Dams and
harbours require strength and leakage testing; roads and bridges require strength, wind and
noise tests; and tunnels must be checked for water tightness and fire safety. Nuclear power
stations are safety tested over a period of time, with progressive start-ups, and electrical and
gas installations are tested against third-party certification to ensure compliance with IEE and
gas safety regulations.
Much of the major structural commissioning is carried out at interim stages of construc-
tion before services and foundations are covered up. Piling is load tested on completion and
failing piles are moved or reinforced. Drainage and mechanical pipe work is pressure tested
in sections so that subsequent work is not disturbed. Air-conditioning, toilet pods and lift
units are tested before they are built-in to eliminate structural problems. Building regulations
work on progressive inspections. Figure 15.2 shows a system for making each subcontractor
responsible for correct performance on completion of their work.
The major stages of building commissioning are connected with approvals by the client and
statutory authorities, often delegated to consultants on non-domestic buildings. The fabric of
the building needs to gain several approvals connected with building regulations, such as those
relating to fire safety, energy efficiency compliance, health and safety, and structural stability. It
also needs to comply with rules for the connection of services and for insurance purposes. Health
and safety issues, apart from fire, will include contamination of the site, asbestos clearance and
sensible and safe access for maintenance and repairs during operation. Under the Construction
(Design and Management) Regulations 2015, the principal designer is responsible for compli-
ance. It is also co-ordinated in a document called the health and safety file (HSF). Building
envelope leakage tests, as required in some building regulations, need to be carried out prior to
handover. Devices that supply and extract air need to pass health and safety tests to ensure that
they guard against dangers such as Legionella bacteria. All may generate some significant reme-
dial works that need to be carried out before services can be properly commissioned.
Subcontractor carries out

work
Main contractor and design

team monitor work quality
and content
fail passed
Subcontractor carries out Subcontractor commences

remedial works static testing
fail Subcontractor offer static passed Subcontractor issues

Subcontractor carries out
testing to main contractor completed test sheet to main
remedial works
and design team contractor and design team
passed
Subcontractor commences
commissioning
Subcontractor issues
fail Subcontractor offers passed
Subcontractor carries out completed commissioning
commissioning to main
adjustments test sheet to main contractor
contractor and design team
and design team
passed
Subcontractor commences Subcontractor issues
Subcontractor carries out performance testing passed completed performance test
adjustments witnessed by main contractor sheet to main contractor and
and design team design team
Figure 15.2 Construction inspection and commissioning3
Client commissioning is distinguished from engineering commissioning as the stage

after practical completion and handover when the facilities are prepared for occupa-
tion. In considering a new office building, this could be the setting out of furniture and
second fix ICT installation, the moving in and familiarisation of office staff, their files
and personal equipment and the adjustment of heating and cooling services to meet the
‘live load’ of the building, which includes computer heat outputs. The client is likely
to consider this as a separate project with an in-house manager to liaise with the main
project manager.
Handover
The handover is the direct interface with the client, user and facilities management team
to ensure that full information about operation and use, including health and safety pro-
cedures, is passed on. Documentation includes as-built drawings, a range of component
specifications, manuals for use and the HSF. It also needs to record warranties, contact
numbers, availability of ‘spares’ and product codes. It should include training in the use
of equipment, familiarisation with maintenance cycles and fire procedures for users.
Sometimes there is minimum fitting-out managed by the project team, such as shell and
core buildings handed over to developers, but the principle still applies. Liaison with
the client for broader fitting-out is important to ensure that demountable partitions and
ceilings will fit and that service connections, fire zone compartmentation and fire escape
routes are understood for floor by floor fitting-out. Good practice is likely to involve
direct contacts between the user and the managing contractor, as would be the case in the
selling of houses. An example of combined commissioning and handover for housing is
described in Case study 15.2.
Case study 15.2 Stage visits on a housing project

One housing developer organises three progress visits for the client connected to stage
completions. The arrangement clearly states cut-off points for making certain decisions,
such as the choice of kitchen or wall colours, but goes further in letting the client view
the quality of the work. This may pose a problem when there is uncertainty or late pro-
gress onsite, but it can also express confidence on the part of the developer that there is
nothing to hide, which can contribute to a positive relationship with the client. The client
may point out defects. Practical completion is marked by the production of an insurer’s
final certificate to confirm conformity and, in return, the client agrees to a short financial
and legal closing period shortly after. Drawn-out post-occupation defects that are not
put right by the developer may result in nuisance compensation claims under the indus-
try insurance scheme. In turn, the developer keeps their insurance contributions down
by eliminating significant defects.
A pro forma indicating which checks have been carried out is handed to the cli-
ent thereby making the quality process more transparent. The argument against this
practice is that many clients do not understand building practices. On the plus side,
however, indirect marketing may result from the client recommending the developer to
others. A clean site is often associated with an efficient and healthy site, which is also
of benefit in terms of building a positive reputation, especially when clients are onsite or
near the site before or after occupation.
Contractors may also wish to get feedback from their customers, who will have a unique
perspective regarding how effective the processes are and whether their expectations have
been met. A feedback scale needs to identify specific areas of improvement, and perceptions
and expectations need to be unravelled. Research indicates that customers can tolerate rea-
sonable waiting periods for putting things right, but are less tolerant of promises that are not
kept, such as delayed moving times or noisy or messy sites.4
The CIOB 5 advocates a closely managed handover and suggests that many larger
projects organise phased sectional completion to grant clients access. These parts may
receive a practical completion certificate and then clients insure the building phase
for fitting-out. Outstanding defects, training and contractor access for post-handover
works and the procedures for managing payment of outstanding monies and review-
ing progress in fixing defects during the defects liability period are important parts
of post-occupation.
Documentation
Documentation needs to be comprehensive, but also needs to be easy to access. Gathering
together the documents often takes a considerable amount of time, especially if left until
the end of the project when items are less accessible. Documents may be digitised and, if
incorporated using BIM, the client can also use BIM, hugely enhancing the documents’
accessibility as information is linked to location. BIM will also assist with integrating the
HSF. Key documents are:
• as-built drawings for the fabric and structure, indicating exact service routes and access
points
• manuals for the safe and effective use of the equipment and the upkeep of the fabric
• test certificates and warranties that provide underlying confidence in quality and func-
tional efficiency
• information for future projects, such as the location of service access points, contacts and
spares availability. Spares sourcing is given or spares may also be handed over
• information is contained in the HSF regarding safe operations for building installations
and the safe use or dismantling of hazardous materials.
Project systems need to be closed down so that personnel may be reassigned and responsibili-
ties redistributed or phased out. A continuing interest in settling the final account becomes
the main concern of the quantity surveyor. Senior project managers may wish to reassign
commissioning and finishing-off activities to their deputies. Final project reviews need to
be carried out before key personnel disappear so that lessons may be learnt and passed on.
A good handover is important for assuring client and user satisfaction. Projects are tem-
porary and completion is anticipated from the outset, thus there should be no excuse for not
having a handover plan. The handover strategy the project manager prepares at the strategy
stage, as part of the project execution plan, is tentative and will continue to develop as the
project is implemented. A managed handover process will achieve the following:
• Confirm that requirements are fully met and the building is accepted by the client.
• Verify that all installations are safe to use and have gained the necessary certifications
and approvals.
• Assemble ongoing support for the end user in the case of adoption of unfamiliar
technologies.
• Ensure that communication between the project team and the end user will provide con-
tinuity between construction and operations, thereby reducing the ‘void period’ (the time
between completion and occupation).
• Agree plans to correct the identified defects and outstanding works.
• Transfer ownership of the building from the delivery team to the client.
Handover of BIM data and models could be challenging for clients who are unprepared to
use this technology in the subsequent building operations. The design efforts and the inte-
gration benefits the project team realised will end up being shelved as the FM team reverts
to the traditional as-built drawing. Use of BIM in the project implementation stages was
discussed in Chapter 13. Building information modelling handover strategy focuses on data
exchange with the FM team. Information generated in the common data environment (CDE)
will be passed on to the FM team, which is responsible for managing the information there-
after. Non-geometric data specified in the employer information requirement (EIR) should
be presented as a COBIE spreadsheet to simplify verification of the data for accuracy and
completeness and must be appropriate for the future needs of the FM team. A distinct system
will also be needed for geometric data such as 2D and 3D models, which can be a significant
setback for the client if compatible software is not readily in place.
Client occupation
Increasing use of best practices such as soft landings means there will be some over-
lap between site activities and the logistics of the client moving in, which needs to be
co-ordinated by the project manager. Client occupation is a project in itself and needs
a steering committee, inclusive of key user and department personnel, to deal with the
move and to liaise with staff in all relevant departments who begin to take a specialist
interest in their new accommodation and facilities. Soft landings migration planning is a
transitional stage and involves:
• determining how the building will be occupied (space planning)

• establishing the timing and phasing of the move
• identifying key activities and assigning managers
• determining sequencing of each group to least disrupt business
• keeping client’s staff informed
• identifying potential risks to the plan.
The client organisation will need to appoint a steering group inclusive of key user and
department personnel. The soft landings approach allows for a small number of project team
members, also known as the aftercare team, to interact with the FM team through a gradual
handover process after completion. This approach may also be adopted alongside BIM pro-
tocols to help co-ordinate the activities of the aftercare team and manage the exchange of
information. Integration of BIM into client asset management systems will require a care-
ful assessment of software compatibility before data can be migrated into the new system.
Feedback from users needs to be controlled through recognised channels. Typically, further
construction work needs to be carried out, such as provision of services and other structural
building work.
Soft landings
Soft landings is an approach in which teams can be involved in a more thorough and longer
commissioning process that allows ‘follow through’ in the project and aftercare. It also
allows greater scope for the practitioners involved to pass on their knowledge, undertake
post-occupancy evaluation, capture and disseminate information on the effectiveness of the
design and construction and learn lessons for themselves, their firms, subsequent projects and
the industry as a whole.
Soft landings provides a process whereby the professional team can remain engaged in
the project beyond practical completion to help guide the building through the first crucial
months or indeed a number of seasons of building operation.
UK government’s soft landings scheme
The UK government’s soft landing (GSL) policy was published in 2013 alongside a BIM
strategy. It provides life cycle process mapping that aligns operating performance with the
client’s business case to provide assurance that the building delivers VFM and performs
sustainably after completion. Early involvement of the end user, and those involved in the
post-handover management of the building, allows them to influence the design and con-
struction process. Incorporating soft landings in the BIM environment ensures there is early
(and comprehensive) training provided to the FM team so that there is two-way exchange of
information as well as ongoing feedback. The project team and FM team continue to work
together during the aftercare period (shown in Figure 15.3). Soft landings assist the client and
their facilities managers during the first months of operation, and beyond, to help fine-tune
and de-bug systems, and ensure the occupiers understand how to control and derive maxi-
mum value from their buildings.6 Early feedback will improve efficiency, save cost and lead
to better operational performance because it:
• ensures the design achieves the defined performance outcomes

• allows the end user to take part in delivering the improved performance
• supports effective design management, which reduces long-term cost
• considers whole life cost in decision making
• reduces cost and time of data input by transferring data from COBie to CAFM
(computer-aided facility management)
• reduces handover cost and time
• facilitates measurement of building performance
• increases use of lessons learnt, including from previous projects
• follows the principles of soft landings.
The soft landings framework used by the Building Services Research and Information
Association (BSRIA7 defines principles and life cycle processes according to three values. First
is awareness of building performance from the perspective of the end-user and the facilities
manager. Second is incorporating lessons learnt from previous feedback and consultation with
the end-user. At the inception and feasibility stages performance goals and client requirements
will be defined and the subsequent value-adding processes, including design, procurement,
construction and commissioning, will be linked to operational targets. Users and the facili-
ties team are amongst the stakeholders consulted and involved in design review workshops
and reality checks, e.g. consulting with cyclists whilst designing the velodrome for the 2012
Olympics resulted in the fastest indoor cycle track ever built. Third is embedding soft landings
in the conditions of contract so that both parties commit to the process. The contract may, for
example, include a requirement for the designer and contractor to engage with the facilities
manager and the user in the review processes during the design and construction stages and also
to support them during the aftercare period. Leadership from both the client side and the project
delivery team is also critical in order to oversee the soft landings activities and co-ordinate
interactions between the appointed aftercare team and the user. These three values define the
ten principles of soft landings as outlined by the BSRIA, which are:
• adoption of the entire process – the project is procured as a soft landings project
• client leadership – builds trust, respect, openness and collaboration
• clear roles and responsibilities
• continuity – retain knowledge and consistency
• commitment to after-care – maintains operational stability
• sharing of risks and responsibilities – a no-blame culture
• informed design – use of feedback
• a focus on operational outcomes
• involvement of the building managers
• involvement of the user.
Figure 15.3 outlines a continuous review and feedback process conducted by key stakeholders.
In Figure 15.3 is a repeating cycle of reviews to optimise operational performance
objectives. Involvement of the user and facilities management was discussed in Chapter 2.
The aftercare period begins weeks before practical completion so that there is an overlap
with construction and handover. Users and the FM team are then able to contribute to the
post-project review. The size of the aftercare team depends on the size and complexity of
the project but, as a minimum, the commissioning engineer and building service trades
will be part of the team to respond to electrical and mechanical queries. The team will be
appointed during the preparations for commissioning and handover so that it is ready to
support occupants as they move in. The first month of client occupation is quite hectic and
the team can be housed in the new building to provide both visibility and ongoing support.
This will gradually be reduced to periodic visits after occupants have been trained and
most issues have been resolved.
Brief Design Construction Handover Occupation After-care
Inform Review Perform Review Support Review
Lesson learnt Lesson learnt Design review Commissioning User training Quarterly AL
management review
Pretender Performance Reality checks Settling in
contract Handover Three-year
Objectives Mobilisation FM
scoping programme review
post-project
Tender SL contract
Performance Completion review Performance
process
target setting Supply chain reviews
Proactive/
Stakeholders’ workshop
reactive use Post-occupancy
workshop
support review
Agree scope
Walk-around
Review metrics
Lessons utilised Construction and operations improved – New lessons learnt
Figure 15.3 Soft landings: review and feedback8

Project reviews and benefit realisation
Regular project reviews are part of a project manager’s responsibilities to determine how well
the project is progressing against plan. Ongoing reviews carried out at the feasibility, design
and construction stages are crucial for on-the-task learning and continuous improvement as
the project is delivered. Formative learning or learning-in-action helps to alleviate devia-
tions as soon as they are observed and the project is brought back to its key cost, time and
scope targets. At the completion stage, several reviews, e.g. the PPR and the post-occupancy
evaluation (POE) will be carried out to audit the extent to which goals have been achieved
to satisfy the client, users and other external stakeholders. Ongoing and formative reviews
are more effective than a summative review held prior to the practical completion stage,
because towards the end of the project those involved in the earlier stages will no longer
be available to provide feedback. While in practice most projects carry regular reviews, the
focus is limited to ascertaining that the project is on time, within budget and meeting quality
targets. This practice is effective where original project objectives have remained unaffected
by changes, but in reality, and according to Bradley,9 80 per cent of the initially forecast
benefits will change and the project will deliver only 20 per cent of what was anticipated.
Clearly, construction projects are open systems and consideration needs to be given to the
impact of external factors that are beyond the control of the project team, such as the impact
of the project on the local community. The objective of project reviews is to confirm that:
• The business case is justified – this takes place during the inception stage.
• The project continues to deliver its objectives – this takes place at each designated
review point, according to the OGC’s gateway framework,10 and also as part of the pro-
ject manager’s monitoring and control process.
• The project has achieved its objectives – a post-project review.
• The project delivers the intended benefits – benefit review.
• Clients and users are satisfied – POE.
Post-project review
Post-project review, also known as post-completion review, measures the degree to which
project objectives were achieved. It involves the assessment of fitness for purpose, satisfac-
tion of requirements and lessons that can be carried forward, by measuring the strengths and
weaknesses of the project. The main aim is to look back, but also encourage appropriate
action in the future. This provides an opportunity for the team to evaluate how much project
integration was evident and what should be avoided. The review should focus on:
• Client performance – e.g. involvement, commitment and approachability.

• Effectiveness of management – e.g. risk and value management, resolving conflicts.
• Involvement of external stakeholders – e.g. local community.
• Inclusiveness in the planning – e.g. last planner efforts and value engineering.
• Team performance – e.g. collaboration, communication and relationships.
• Performance of the contract.
• Project performance – e.g. cost, time, quality, sustainability, safety, etc.
• Performance of technology – e.g. BIM, offsite manufacturing, innovation, etc.
Assessing performance must go hand-in-hand with documenting lessons and summarising
amendments and their reasons. For example, it may be necessary to reflect on the compat-
ibility of the terms of contract with BIM use or whether it caused undue complications.. Such
information will be used to bring forward improvements. The main improvements that can be
passed on from project to project will relate to process and management systems in relation
to time, cost, quality and health and safety control. Generic learning points may be used by
the project manager to apply to future projects and specific learning points to projects of a
similar nature with the same client and team.
Benefit management and realisation

Benefit management comprises all processes undertaken from the start of the project to
identify, deliver and measure project outcomes. Project processes such as project defini-
tion, feasibility analysis, design and construction are part of the benefit management plan to
deliver the outcomes. The term outcomes is preferred as it indicates that benefits are realised
when the completed building is put into use. Benefit realisation is the final task of benefit
management to confirm the project has delivered value incrementally by recovering the cost.
Looking at benefits from the differing value perspectives, e.g. client value, social value to the
surrounding communities, economic value to local businesses, will help to reveal the added
benefits of the project beyond the direct outcomes that the client realises. Under the terms
of the Considerate Constructors Scheme (CCS) contractors have to demonstrate ongoing
benefits, e.g. reduction of carbon footprint, social responsibility and community engage-
ment, which can be evaluated throughout the project lifecycle. The Association for Project
Management (APM) body of knowledge (APMBOK)11 identifies five stages in the benefit
management process:
• Define benefit management plan.

• Identify and map benefits.
• Plan benefit realisation.
• Implement change.
• Realise benefit.
Benefits are identified and defined in the business case and optimised during the feasibility
study as tangible and intangible outcomes, which can then be compared against estimated
cost to determine viability. Lack of information, and sometimes over-optimism, may lead
to counting more benefits than the project can achieve; reality checks are thus needed, e.g.
adjustments made to account for optimism bias or the carrying out of a sensitivity analysis.
A benefits management plan is developed as soon as the project is approved, setting out a
mechanism to measure and monitor realised benefits. Key processes are shown in Figure 15.4.
As Figure 15.4 shows, post-project benefits evaluation will confirm the extent to which
the project has successfully met its objectives, including immediate and intermediate out-
comes. The basis of this end-assessment is for the plan made in the early stages to provide a
baseline on who, when and how to measure benefits. To facilitate monitoring, the identified
benefits will be linked to the project plan and the APMBOK can then map them in four cat-
egories: immediate, intermediate, terminal and ultimate. Immediate benefits include tangible
outcomes, e.g. employment opportunities for local residents, realised as the project is being
implemented. Intermediate benefits give rise to opportunities to realise more benefits than
was initially estimated, e.g. outcomes from value engineering or sharing lessons with other
New opportunities
Identify Benefit optimisation

benefits Evaluate
What and
How realise
When
Immediate Intermediate Terminal Ultimate
Benefit mapping and scheduling
Figure 15.4 Benefit management plan12
projects. Terminal benefits are the appraised benefits and will be realised after completion
to determine the overall success of the project. Ultimate benefits are measured at a strategic
level to assess how the project aligns with the client’s business goals.13 The project team
may well help the client to complete this review, but the responsibility ultimately lies with
the client. The project manager’s involvement will ensure that immediate and intermediate
benefits are tracked and new opportunities integrated into the plan. In addition, outstanding
accountabilities for benefit review are handed over so that the project can carry on in an
appropriate manner; this process also provides accurate and objective information for future
client projects. The objectives of a managed benefit realisation process are to:
• validate benefits outlined in the business case

• communicate with stakeholders regarding how benefits will be realised
• ensure that the project objectives are achieved
• identify opportunities for further improvement.
Case study 15.3 shows how detailed planning needs to be synchronised with different user
groups in order to avoid derailing business benefits.
Case study 15.3 Heathrow Terminal 514

Heathrow Terminal 5 was a very successful project from the project team’s point of view:
it finished on time, was within its £4.3 billion budget and received recognition for archi-
tectural merit. However, when it was handed over to the client the automated baggage
(continued)
(continued)
handling systems were ineffective and were unable to cope with the level of use. The
system required a different approach for the check-in and baggage handling crew, who
needed to use an automated system to find out where they had been allocated. Check-in
and handling staff were unable to find places to park their cars and encountered problems
getting into the building on the first day. This was unfortunate as queues became stead-
ily worse in the departure lounge at Terminal 5, baggage was lost following check-in and
customers missed flights. Arrivals were also affected, by the slow process of collecting
bags and clearing the terminal.
The business case was sound but the objective of getting the airport up and running
on the first day was impossible to achieve as a result of insufficient practice, untested
security checking and inadequate staffing levels. Significant lessons were learnt for
future projects involving complex procedural changes for users, in this case the airport
personnel. The project manager’s relationship with the BAA project staff was excellent,
but communication with other BAA managers had broken down regarding the need to
train users.
Post-occupancy evaluations
The operation and use phases are the responsibility of the client and the building will nor-
mally be under the management of the facilities manager. The soft landings approach,
however, will allow the project team and the facilities manager to interact over an agreed
period after client occupation. Post-occupancy reviews typically rate satisfaction in terms of
the functional working of the building and its impact on comfort, convenience and produc-
tivity. In principle, POE has three objectives. The first objective is to collect feedback from
users, e.g. by conducting a survey asking tenants to rate their satisfaction. The second objec-
tive is to address the gap between ‘as-designed’ and ‘as-used’. This is a more extensive form
of assessment, such as facilitated workshops in which users discuss their experience of the
building with the team. The third objective combines the first and second objectives in the
form of lessons learnt.
The improvement cycle

Continuous improvement is a concept widely associated with total quality management
(TQM), lean management, Six Sigma and kaizen, a Japanese philosophy that directly translates
as ‘continuous improvement’ (discussed in Chapter 9). Opportunities for learning from project
reviews and user feedback are often missed because of the discontinuity that exists between
project teams working in individual siloes. Most clients do not have a dedicated FM team that
can pass knowledge to the design team. The value of integrating facilities management early in
the project is not always appreciated and leads to higher professional fees. Accessible data from
previous projects is a cheap means of incorporating lessons from the past.
According to Jawdeh,15 managers, designers and facilities managers rely on personal
experience and historic data for ‘learning before doing’. Therefore, project managers
should be mindful when carrying out project evaluations and feedback sessions, as they are
vital for the incremental learning cycle. Another opportunity for direct learning is afforded
during the soft landings period. In some projects, this will be the first time the designer
effectively interacts with the facilities team. Soft landings and the subsequent POE help
to develop both tacit and explicit knowledge for all parties. The Cambridge Dictionary16
defines tacit knowledge as that acquired from personal experience and explicit knowledge
as being more tangible and able to be stored in project reports and other documents. Both
end users and facilities managers will gain an understanding of the designer’s perspective
as a result of feeding back to them issues they encounter. Case study 15.4 describes how
POE can be used for the purposes of improvement.
Case study 15.4 Learning from hospital design

The client for this project is a private healthcare provider that owns and runs over 30
hospitals in the UK. The project did not involve a formal feedback procedure. Often,
problems reported by the end user were treated with a degree of urgency and resolved
by the maintenance team. After five major refurbishments were needed, the facilities
manager decided to investigate the root cause by deploying a formal POE involving the
end user. The aim was not to conduct a ‘witch-hunt’ but, rather, to identify design les-
sons that could be used in future projects. The project manager created a three-page
questionnaire that was administered to end users. The end users identified the following
design concerns:
• The operating theatre was not ‘dust and dirt’ proof.

• The corridors were too narrow to allow movement of trolleys.
• Some rooms were too small to be used.
• The bathrooms for specialist diagnostic units were wrongly positioned.17
Case study 15.4 describes a missing link between learning and feedback, which means mis-
takes were likely to be repeated even though the user knew about them and reported them as
maintenance issues. Reactive approaches such as this cost the construction industry dearly
and yet little improvement in terms of learning appears to occur. Wolstenholme18 acknowl-
edges the long learning cycle in construction and argues that opportunities exist for projects
and individual trades to adjust quickly and efficiently in a process of continuous improve-
ment. In the absence of continuous learning and formal procedures, design defects that have
an adverse effect on building performance, safety and user satisfaction are tolerated. TQM
tools such as process mapping, root-cause analysis and Deming’s Plan–Do–Check–Act
(PDCA)19 cycle can be used to analyse feedback so that areas for improvement can be priori-
tised and documented.
Learning loops
Empowered project teams are more likely to innovate through strategic learning. Learning
can be inclusive or divisive depending on the leadership path taken by the managers. Inclusive
learning encourages the team to innovate and own the lessons that are then shared. On the
other hand, divisive learning creates fertile ground for dissatisfaction, defensiveness and
cover-up so that no viable learning takes place. Schon20 categorises learning processes into
single-loop or double-loop learning. Single-loop learning is divisive, hierarchical and pro-
cedural. It leads to the division of managers and operatives. An open-door policy may exist
that lets employees report a problem to the project manager; however, it is pointless having
a well-documented strategy to deal with variations, emerging risk and reporting of incidents
that is not used because operatives do not feel involved. Single-loop inflexibility problems
are reported upwards and the solution falls from above. Such scenarios prohibit proactivity
and the client will only be informed if the problem requires additional resources or time and
lessons are thus lost.
Double-loop learning, on the other hand, fosters innovation through value engineering
and inclusive planning. Value management workshops and last planner approaches were dis-
cussed in Chapter 10 and can create an environment for mutual leaning and joint problem
solving. Project teams and other internal stakeholders can engage in a productive dialogue and
are free to challenge the client’s brief if they perceive that it is too ambitious or unrealistic. The
project manager does not suppress functional conflicts arising as the team weighs different
options to decide the best course of action. Shortcut decisions are avoided to allow a consensus
to emerge. The team exhausts all possibilities as they debate issues openly. Case study 15.5
shows how double-loop learning can create the opportunity for a win–win situation.
Case study 15.5 Double-loop learning leading to

innovation
This project involved a £20 million upgrade of a 132kv power line in the UK. Part of the
line spanned a busy major road and a railway track, making it difficult to use standard
equipment such as scaffolding. The contractor empowered the team to make decisions
regarding the best way to protect both the project’s infrastructure and road users. The
team adopted innovative techniques that had never before been used in construction.
The technology used allowed a small remotely-controlled robot to drive along the exist-
ing cable and electricity pylons high above the ground. The robot transported very strong
string back and forth, which was attached to heavy supporting blocks. As it reached
each end, the string was tensioned by the supporting blocks. This innovation eliminated
duplication of operations as well as the need for scaffolding and safety nets, which
saved the contractor nearly £150,000. The project was approved within six months,
which allowed it to start early, thus reducing overall time from feasibility to construction.
The string innovation reduced man-hours and also improved safety. This project was a
satisfying experience for both staff and contractor. This innovation also presented them
with future business opportunities, including extension of the framework to the next
phases of the project.
Acknowledgement to Costain Group21
A strong collaborative environment, e.g. BIM, takes learning to a further level of ‘triple-
loop’ learning, whereby the teams involved can better understand each other. It allows com-
plex models to be developed and exchanged to further building team cohesion. Triple-loop
learning enables the client, project team and facilities management to understand each oth-
er’s ways of thinking, motives, assumptions and approaches to problem solving. The value
of a building is determined by its ability to create a productive workplace. The project envi-
ronment is a workplace that also creates workplaces. According to Gjersvik and Blalstad,22 a
productive workplace has several characteristics, including that it:
• brings people together

• provides a space for the sharing of knowledge
• provides a place for learning
• encourages communication
• allows room for co-ordinated decisions
• allows adaption to changes
• encourages creativity.
Learning cycle
In 1984 a famous learning theorist, David Kolb, came up with the idea of an experiential
learning cycle that recognises the power of learning by doing. Kolb23 implies that every
single encounter during a project is an opportunity to learn and shapes the next action.
Maylor,24 however, distinguishes between ‘learning by doing’ and ‘learning before doing’.
The former is achieved through involvement in the project, training, organised learning and
development activity whilst on the job. For example, attending an unproductive site meet-
ing involving disagreement between sub-contractors would provide an important lesson for
team building and conflict management. Such lessons can be captured using a formalised
review process. Learning before doing begins with previous experiences, such as docu-
mented post-project reviews. Outcomes are evident as the team will avoid previous mistakes
and break new ground.
Figure 15.5 puts this learning into the context of feedback and lessons learnt. Learning
becomes an incremental, continuous process. Post-project review reports from previous pro-
jects are taken on board in the current project. Case study 15.6 provides an example of this
learning cycle.
Experience
of current
project
Lessons from Post-project

projects evaluation
Improvement Lessons and

plan feedback
Figure 15.5 Learning by doing

Case study 15.6 SMEs sharing best practice

A medium-sized regional construction company with four offices in the Southwest of England
embraces a continuous improvement philosophy to deliver the best outcome for the client.
It is a reputable company that specialises in designing, building and refurbishing schemes.
To grow the business, and increase its market share in the region, it needs to build a rapport
with clients. In all projects it delivers, management ensures lessons are learnt, recorded and
shared across its four offices for the purpose of improvement.
The company joined the Construction Best Practice Programme, a joint initiative involv-
ing the Department of the Environment, Transport and the Regions and the Construction
Industry Board. The programme operates a helpdesk and provides online resources such
as guidance and case studies tailored to advise clients, consultants and contractors on
how to improve their performance. The programme also links companies so that they can
visit each other’s site to exchange best practice. In addition, workshops are organised
nationally for knowledge sharing. Members of the programme must commit to best prac-
tice and continuous improvement, including piloting and implementing new management
techniques.
The company then developed a management system that allowed it to benchmark
its performance against larger contractors. Through partnership with Constructing
Excellence and other statutory bodies it became quite successful and one of its projects
won a Construction Best Practice Award
Self-reflection identified that it had limited BIM capability, thus it opted to pilot BIM
in a project to extend one of its office buildings. The project brief was to provide an
additional 310m2 of office space at a cost of less than £1 million. A 47-week long joint
contracts tribunal (JCT) design and build contract was agreed with the preferred con-
tractor. A project of such size and complexity would not normally be viable for BIM but
the decision to use it was based on consideration of the long-term return on investment
and to gain some practical experience.
The starting point was finding a partner to work with, in particular one that was willing
to share best practice. A leading consultant, who was also recognised for promoting BIM
to small and medium-sized enterprises (SMEs), was appointed to guide it on purchasing
software compatible with the BIM environment and also to help it develop and manage
BIM compatibility with models from the architects, structural engineers and building ser-
vices engineers. The lead designer took responsibility for co-ordinating BIM and combining
all models into a co-ordinated (federated) BIM model. Not only did the team celebrate
improved performance but important lessons on collaboration and communication in the
BIM environment were also learnt, to be shared with the company’s supply chain partners.
Learning ecology
Learning is an ongoing process and plays a crucial role in continuous improvement. The ques-
tion often posed to project managers is whether to innovate or adopt technologies. One has to
think big to get to the bottom of the matter. Projects are temporary and are constrained by three
major goals: getting the project right first time, finishing it on time and working within the
means and budget available. These challenges leave no room for meandering about seeking
innovations and new ideas. It takes time for new innovations and technologies to be accepted
in the construction industry, partly due to the fact that time, cost and quality are the aspects
that receive the most focus. A positive learning ecology is crucial to enabling improvements to
occur and to the delivery of successful projects in an ever-changing world. Brown25 describes
such an environment as an open system of interdependent elements, such as people, accept-
able practices, technology and the community. People influence the ‘what’ and ‘how’, such
as the budget for learning and choice of skills to develop. On the other hand, community and
technology provide the means for learning through apprenticeship programmes offered by
universities and colleges or work shadowing. Many large construction firms in the UK have
signed up for degree apprenticeship schemes that allow a novice candidate to study for an
academic qualification while working and learning alongside expert professionals to develop
skills the industry needs for the future. Such a scheme provides a collaborative learning ecol-
ogy where employers, professional bodies and higher education institutions are able develop
a joint delivery model and commit to creating a supportive learning environment. The ‘learn
and earn’ approach enhances employability and is an attractive scheme for young people, who
can join one of two types of apprenticeship practised in the UK:
1 Apprenticeship standards – competency-based, not normally leading to a formal quali-

fication. They are developed by employer groups (trailblazers) to meet the knowledge,
skills and behaviours needed by the industry.
2 Apprenticeship frameworks – qualification-based, combining workplace learning and
classroom-based training. They are offered at a vocational level (intermediate and
advanced) and degree level (foundation degree to master’s degree).
Case study 15.7 looks at a university apprenticeship.
Case study 15.7 Degree apprenticeship at

the University of Brighton
Due to increasing opportunities the construction sector in the Southeast of England needs
to employ 2250 new workers every year, mostly to replace an ageing workforce. The
government, local universities and employers have tried many ways in which to attract
women and young people to work in the construction industry. In 2017 the government
funded the University of Brighton to develop a new degree apprenticeship programme in
construction management in response to employer demand. The bid was supported by
two major construction sector groups, which also became partners in the programme.
The University of Brighton, in partnership with employers in the region, associate
colleges and professional bodies, tailored a part-time pathway so that people in the
workplace can study on a day-release basis. This pathway also provided a route to
advanced and higher apprenticeships leading to degree apprenticeships. This pro-
gramme gives students the assurance of gaining employability skills. The ‘learn and
earn’ approach makes it even more attractive to young people. The course is also
accredited by a professional body so students are also on a direct route to gaining
chartership. Employers’ involvement in developing the course assures them that gradu-
ates are equipped with the kind of critical thinking and hands-on skills they need to be
appointed at a more senior level. The apprenticeship programme is a win–win scheme
for universities, students, employers, the government and professional bodies.
Systems improvement
Performance management theory insists that, ‘You cannot improve what you cannot measure.’26
This highlights the importance of measuring performance and learning from where we are.
Project managers recognise that clients are changing and so are projects. Technology makes
change happen at an alarming speed, so that project managers must ‘modernise or die’.27 In the
‘knowledge economy’ organisations flourish not because they do the right thing but because
they have the right knowledge about their customers and strive to deliver the right thing all the
time. System improvement allows project managers to set improvement goals, constantly review
them and measure their performance in terms of improvements achieved. The idea of continuous
project evaluation was developed by Timms.28 In this model there is a regular meeting to review
the main benchmarks for the project in a spirit of continuous improvement. In the Construction
Excellence benchmarking process measurements are made on a continuing basis to provide con-
trol and allow users to keep on target. These benchmarks need to be chosen for their relevance to
the particular project so that what is compared is considered to be a critical indicator of success.
They also need to measure parameters that are measurable, can be fed back quickly and clearly
point to corrective action. Timms also advocates that the whole team be involved in the evalua-
tion meetings, which should lead to integrated construction and design action on a regular basis
to benefit the project.
Goal setting
Setting smart goals is the first step toward continuous improvement. Locke et al.,29 found-
ers of goal-setting theory, proscribe setting goal-oriented activities because doing so gives
the manager a sense of direction regarding which efforts and resources to prioritise. The
satisfaction we perceive from achieving one goal provides the energy for pursuing the next,
keeping the improvement cycle turning, each time with better outcomes. More importantly,
however, achieving goals leads to more discoveries, either intentionally or circumstantially,
thereby contributing to deeper learning and competency. Goals, along with the metrics used
to measure them, are most frequently used by those whose aim is to improve effectiveness;
there must, however, be a balance between setting challenging goals and overall performance
objectives. Simplistic goals with low performance expectations make the goal unattractive; in
contrast, extremely challenging goals and unreasonable expectations make the team anxious.
Aligning goals with established KPIs will facilitate measuring achievement and benchmark-
ing performance against the ‘best in class’.
Assessing improvement
Continuous improvement requires that goals, strategies and plans are constantly reviewed
and updated. Assessment of improvement helps project managers to benchmark the extent
and effectiveness of their strategies. Various maturity models are available for the pro-
ject manager to use to evaluate system improvements in a structured way, e.g. supply
chain integration, collaboration on BIM and the capability of the organisation to manage
challenging projects. The OGC’s Portfolio, Programme and Project Management Maturity
Model (P3M3),30 discussed in Chapter 1, helps organisations deal with the whole system,
including analysis of processes, capabilities of the project team and the management infor-
mation used to deliver long-terms plans for improvement. It involves a five-level ‘maturity
framework’, from awareness to optimised process, e.g. being aware of KPIs is maturity
level 1 and optimised use of KPIs is level 5. Maturity models may also provide a bench-
mark for KPIs, such as BIM integration, learning and sustainability indicators.
Integrating facilities management issues

Since the early 1980s FM has emerged as a management discipline in the built environment
that bridges the gap between a building and the performance of an organisation. Commercial
organisations tend to separate facilities, including the building and its functions, from the
core business functions so that each is run more effectively, profitably and sustainably.
Project management and FM integration

Construction project management and FM have a complex and interconnected relationship
and both play a role in delivering value to the client. Project management is a role mostly
confined to the development stages of the project and has a defined life cycle from incep-
tion to completion. In contrast, FM is perpetual and deals with post-completion and building
operations. FM integrates the strategic business objectives, building design and changing
behaviours of the end users, which are critical in delivering an efficient and suitable work-
place that meets the requirements of the client’s business case (as discussed in Chapter 3).
Wood31 states that the FM team should be involved in the construction project because they
have tacit knowledge of the client’s business, the culture of maintenance within the organi-
sation and user behaviours, which, if shared at the briefing stage, will lead to a design that
meets present and future needs. Early establishment of two-way communication between the
project and FM team reduces design mistakes and leads to better management of changes.
Site briefing and joint planning with the FM team also reduces delays in site possession.
Procurement and outsourcing for occupied sites will require mitigating the risk of access to
the restricted areas. Facilities managers may be able to recommend trusted contractors and
sub-contractors thereby reducing the cost and time needed to vet and train staff. Facilities
managers may retain responsibility for enabling work excluded from the overall project
scope that may delay the project and have serious cost implications.
A facilities manager is involved at different stages of a construction project, not only
at the handover stage. An in-house facilities manager has an understanding of the client’s
maintenance culture and will be able to share their experience in the brief to reduce mistakes
and chances of rework. Projects that take place alongside an ongoing service and business
operations are prone to disruption. Facilities managers will likely play an instrumental role in
terms of logistics and relocations to minimise disruption and improve the safety of workers
and users of adjacent buildings. Interface management for enabling work carried out by an
in-house maintenance team improves with the integration of the project and FM disciplines.
In the end the building will be handed over to the client for use and the facilities manager will
ensure the operations are managed and the terminal and ultimate benefits brought about by
the project satisfy the expectations of users.
Workplace design
Facilities management attempts to mediate complex interactions between employers and
employees in the workplace. Alexander et al.32 discuss three competing issues. The first
is the balance between space and change. Learning organisations must embrace change to
remain competitive. A building as a support for core functions accounts for up to 15 per cent
of turnover. A university seeking to grow in size and increase the number of students will
require more teaching space. A manufacturing industry relocating overseas will need to make
two decisions: what to do with the existing space and how to secure new premises. Similarly,
a hospital with many smaller departmental buildings, spreading over 27 acres of land, will
consider consolidating services in a small area so that they are harmonised and more efficient
and productive. All of these cases change the demand for space and may lead to the consid-
eration of options such as relocating, reconfiguring the existing space or adding new space to
meet the need. The business case has to clearly state what to do with excess or disused space.
Sustainability and FM
Facilities management must balance three competing requirements: sustainability, adapt-
ability and affordability. A healthy indoor environment improves comfort in the workplace,
contributing to increases in both productivity and user satisfaction. A study by Wyon33 found
that poor indoor air quality caused by pollutants, a high temperature and noise reduce pro-
ductivity by 6–9 per cent. From an FM perspective, a design option that achieves a good
BREEAM rating may cost more to build but will have supplied long-term benefits. It is an
indisputable fact that a building is built according to its design but the occupants’ behaviour
influence how it performs. The extra cost paid for the early appointment of a consultant
facilities manager with knowledge of user behaviour will reap dividends in terms of how the
building performs. Characteristics defining a sustainable building have to be included in the
design for a new build, as retrofitting them will be inefficient. Smart buildings are designed to
maximise indoor air quality and efficient use of daylight. Technologies capable of producing
sufficient clean energy to power entire buildings, with the surplus sold to the National Grid,
are increasingly becoming cost-effective and affordable. It is estimated that an extra 1 per
cent spent on an atrium will maximise natural light thus leading to a saving of up to 30 per
cent on energy consumption. Atriums not only provide an aesthetically pleasing feature but
are also energy efficient and shield buildings from noisy and busy city centres. Automated
sensors to control lighting, heating and ventilation will reduce inefficient human behaviours
but user control options will still be needed for flexibility.
BIM and FM
Building information modelling (BIM) is transforming the way asset and FM operate.
Traditionally, documents handed over to the FM team are in formats the team cannot read-
ily use and thus remain locked in cupboards, untouched. Accessing information from the
asset register when needed for maintenance activities is a serious challenge because some
of the documents handed over are not relevant. Facilities managers and the operations and
maintenance team may spend many days trying to verify spatial information and component
details for accuracy and relevance. Initial room layouts often change during construction
in response to builders’ queries but those alterations will not always be reflected in the
final as-built drawings. The manufacturer’s datasheet for installed equipment needs to be
changed when equipment is replaced but doing so means searching for previous documents
in a pile of paper.
Figure 15.6 shows how both the project team and the FM team can have an influence on
BIM 3D models and construction information that will be exchanged during handover. This
new and more dynamic database contains asset data such as building height, room details,
specification of installations and manuals compatible with the COBie format so that they can
Digital asset
information
Project team FM team
Asset register
Training and
update
BIM database Dynamic database
Figure 15.6 BIM model exchange
be used for operation and maintenance of the building. Digital asset information handed over
to the FM and operation and maintenance (O&M) teams in a form that is easy to validate and
update makes their job easier and more enjoyable. FM and O&M teams can almost certainly
locate concealed pipework on 3D models and fly-through. The ability to visualise space helps
them diagnose furnishing issues and space usage with higher precision. BIM models provide
them with a baseline for scheduling building maintenance activities, tracking changes and
also making decisions. Commercial data extracted from BIM models can be used directly as
inputs to the dynamic asset database and the enterprise resource planning system (ERP) for
efficient management of building functionality.
Roper and Payant34 recommend the use of fully documented BIM data and modelling
software that is accessible on both phones and tablets. This enables the O&M team to
respond quickly to maintenance inquiries and fix the problem without returning to the
office. Industrial standards such as COBie have addressed some of the concerns regard-
ing software compatibility and interoperability. Involving the O&M team in meeting the
set-up requirements for BIM software has also added benefits. Digitalised information
can help the O&M team to identify if elements of a system need to be replaced and to
quickly compare quotations from potential suppliers. Digital design models, construc-
tion data and commissioning information will be linked to the workplace management
system using a single database platform to make maintenance planning and control more
efficient and transparent.
Conclusion
The commissioning stages of a project should be planned first so that sufficient time is allo-
cated throughout the project for checking functionality and putting defects right. Traditional
construction industry culture involves looking to others to provide a checking service in the
form of a list of snags or defects, for which there is an intensive programme of remedial work.
Snagging and re-testing in front of a third party is wasteful as work is being carried out twice.
Soft landings allow for early and continuing involvement of FM so that pre-inspections are
carried out in the spirit of ‘right first time’ for finished work areas. It is also clear that sub-
contractors and commissioning engineers have control and take responsibility for the testing
and functioning of the systems. Continuous control of the quality standards is required to
ensure that defects are not compounded by successive trades. Occupation and handover is
often overlooked as a process, but it needs to be well planned for so that the FN team and users
understand the building and the full benefits it has to offer. Soft landings are used to ease a
handover to the users and FM team so that good practice can be developed whilst the systems
are actually in use. This approach may involve ongoing user training, tweaking of controls and
more efficient ‘debugging’ of systems and responding to users.
The process of realisation allows the client to review the achievement of their business
plan objectives in terms of budget, functional requirements, layout and user reactions. This
may take the form of an ‘audit trail’ that takes each goal and looks at the outcomes from the
new project. Findings may guide the valuation and allocation of risk if facilities managers and
users are consulted during ongoing development. A client needs to assess the overall VFM,
which may require an assessment of economic profit as well as financial profit derived from
the project. For a new factory building, this takes into account productivity gains made from
more efficient layouts, better staff motivation and more integration. The project manager is
unlikely to be involved in this process unless they have responsibility for a programme of
client projects.
Systems improvement is connected to the culture of continuous improvement, or kaizen,
and is proactive rather than reactive with the intention of ‘ironing-out’ past problems and
reducing system waste still further. It does not assume blame, but looks to learn from mis-
takes. It will also depend on using a system of measurement so that improvement is based
on known performance. Constructing a measurement system is hard work. It needs to match
the key parameters of the project in hand otherwise it will increase the paper chase without
providing the benefit of identifying causes of poor performance. Documenting case stud-
ies and lessons learnt from previous projects has proven effective for learning and also as a
means of avoiding inefficient practices that increase cost and lengthen delivery times, an out-
come which upset clients and users alike. The Constructing Excellence35 platform is a good
example of contractors using continuous learning to improve their performance; however, it
is also important for clients to take the lead in initiating better processes because it is they
who will directly gain. Systems improvement also needs to identify issues and feed forward
changes during the same project, if possible. This might be achieved by holding a series of
evaluation meetings at key stages of the project so that lessons learnt may be used to adjust
systems immediately or passed on down the supply chain. A ‘no blame’ culture means that
mistakes are admitted, conflict is resolved as it arises and problems are treated as challenges.
More traditional post-project reviews have often been neglected as the project team breaks
up before the end of the project and it is difficult to communicate lessons between projects if
the project team does not follow on. Soft landings is an effective approach to utilising lessons
learnt from a past project, and repeating the review cycle will feed new lessons forward into
other projects.
Integration is being promoted as a way of setting up project teams and FM that are often
termed ‘virtual organisations’. Use of BIM and other information and communication tech-
nologies has helped the construction industry reach new heights of performance through
greater integration of design and construction models, which can be directly fed into opera-
tions and maintenance information. At the heart of such integration is a determination to
build a common culture of expectations, together with an integrated communication system,
that allows for an instantaneous distribution of information to FM through BIM.
Notes
1 Chartered Institute of Building (CIOB) (2014) Code of Practice for Project Management
Construction and Development. 5th edn. Oxford, Blackwell.
2 Way M. and Bordass B. (2005) Making Feedback and Post-occupancy Evaluation Routine 2: Soft
Landings – Involving Design and Building Teams in Improving Performance. Building Research &
Information, 33(4), 353–360.
3 Adapted from CIOB (2014).
4 CIOB (2014).
5 Ibid.
6 Cabinet Office (2016) Government Soft Landings. Available online at: https://www.cdbb.cam.ac.uk/
Resources/Bimtaskgroupmaterial/GovernmentSoftLandingsSection1Introduction.pdf (accessed 16
August 2018).
7 Building Services Research and Information Association (BSRIA) (2018) BG 54/2018 Soft Landings
Framework 2018: Six Phases for Better Buildings. https://www.bsria.co.uk/search/?k=soft%20
landings (accessed 1 September 2018).
8 Ibid.
9 Bradley G. (2016). Benefit Realisation Management. In R. Turner (ed.), Handbook of Project
Management. 5th edn. Abingdon, Routledge.
10 Office of Government Commerce (OGC) (2007). OGC Gateway Review 0: Strategic Assessment
Guidance and Templates. Available online at: http://www.gov.uk/government/publications/ogc-
gateway-review-0-strategic-assessment-guidance-and-templates (accessed 18 August 2018).
12 Ibid.
13 Infrastructure and Projects Authority (IPA) (2017) Guide for Effective Benefits Management in
Major Projects. Available online at: https://www.apm.org.uk/media/7648/guide_for_effective_
benefits_management_in_major_projects.pdf (accessed 5 May 2018).
14 BBC News (2008) What Went Wrong at Heathrow’s T5? Available online at: http://news.bbc.
co.uk/1/hi/uk/7322453.stm (accessed 30 August 2018).
15 Jawden H. B. U. (2013) Improving the Integration of Building Design and Facilities Management.
Unpublished PhD thesis, Salford Univeristy. Available online at: https://usir.salford.ac.uk/29274/1/
Thesis_-_Habib_Bu_Jawdeh-_Final_Version.pdf (accessed 18 September 2018).
16 Cambridge Dictionary (n.d.) Available online at: https://dictionary.cambridge.org/ (accessed 19
July 2018).
17 Barrett P. and Finch E. (2014) Facilities Management: The Dynamics of Excellence. 3rd edn.
Chichester, Wiley Blackwell.
19 Deming Institute: https://deming.org/explore/p-d-s-a.
20 Schon D. (1987) Educating the Reflective Practitioner. San Francisco, CA, Jossey-Bass.
21 Costain Group (n.d.) 132kV and 33kV Overhead Line Upgrade. Available online at: https://www.
costain.com/solutions/?sector=power (accessed 1 September 2018).
22 Gjersvik R. and Blakstad S. H. (2012) Towards Typologies of Knowledge Work and Workplaces.
In K. Alexander et al. (eds), Facilities Management Innovation and Performance. Abingdon,
Routledge, pp. 134–150.
23 Kolb D. (1984) Experiential Learning: Experience as the Source of Learning and Development.
Englewood Cliffs, NJ, Prentice Hall.
24 Maylor H. (2010) Project Management. 4th edn. Cambridge, Pearson Education, p. 268.
25 Brown J. (2000) Growing Up Digital: How the Web Changes Work and Education and the Ways People
Learn. Available online at: http://www.johnseelybrown.com/Growing_up_digital.pdf (accessed 23
August 2018).
26 Drucker P. (1985). Innovation and Entrepreneurship: Practice and Principles. New York, Harper &
Row.
27 Farmer M. (2016). The Farmer Review of the UK Construction Labour Model. Available online at:
http://www.constructionleadershipcouncil.co.uk/wp-content/uploads/2016/10/Farmer-Review.pdf
28 Timms S. (2003) Project Evaluation. Unpublished dissertation, University of the West of England.
29 Lock E. A., Cartledge N. and Koeppel, J. (1968). Motivational Effects of Knowledge of Results: A
Goal-setting Phenomenon? Psychological Bulletin, 70(6), 474–485.
30 AXELOS Ltd (2015) Introduction to P3M3®. Available online at: https://www.apm.org.uk/sites/
default/files/introduction%20to%20p3m3,%2019th%20jan%20bolton.pdf (accessed 23 September
2018).
31 Wood S. (2013) Project Management. In K. Alexander (ed.), Facilities Management: Theory and
Practice. Abingdon, Routledge, pp. 146–164.
32 Alexander K. (ed.) (2013) Facilities Management: Theory and Practice. Abingdon, Routledge,
pp. 1–13.
33 Wyon D. (2004) The Effects of Indoor Air Quality on Performance and Productivity. Indoor Air,
14(7), 92–10.
34 Roper K. O. and Payant R. P. (2014) The Facility Management Handbook. 4th edn. New York,
AMACOM.
35 Several resources are available at http://constructingexcellence.org.uk/resource-type/case-study.
16 Conclusion
Future construction
In Table 1.1 at the beginning of this book we looked at the multi-level integration that, in
our view, make up construction project management. This helped us to identify specific tools
that could be operated in a project context, such as function, performance, system, contract,
organisation, role and stewardship of resources (environment). Throughout the book we have
talked about the integrative functions and tools within each category, how they can result in
effective collaboration and success and how, in many cases, they overlap. We have also tried
to answer ‘How?’ in light of the question ‘Why?’
In this final chapter we will consider integration of people with the aim of sustainable
wellbeing in the production of built assets that we will call future cities. This is justified
in the context of growing expectations for quality of life, rising populations, inequality of
opportunity, managing climate change and the over-intensive use of scarce resources. It is
hypothesised that built assets and infrastructure can become more beneficial to users from
their point of view and that they will feel a greater sense of ownership. In one sense, this is
a social issue that deals with both equality and diversity and, in another, it concerns enhanc-
ing user and stakeholder experience; the wellbeing and flourishing of human beings are thus
important project management objectives.
The experience of the 2017 Grenfell Tower fire, terrorist action, repeatedly flooded
neighbourhoods and the integration of immigrants into society are examples of situations in
many developed countries where building development creates a perceived underclass, pro-
longs inequality and hinders wellbeing. On the other hand, natural disaster, military conflict,
climate change and poor shelter resilience create vulnerability as a result of which com-
munities can lose their sense of wellbeing and struggle to relate to new development that
is not sympathetic. Resilience is important because some of the imaginative structures that
have risen out of the ashes of a terrorist act of destruction or natural disaster have illustrated
a desire for working with others who may have different outlooks; the new World Trade
Center is one such example. Statistics show that even in rich societies the rich get richer and
the poor get poorer and inequalities are tackled only superficially. In emerging and poorer
economies, there is a strong desire for rapid development to raise the quality of living and
tackle corruption and the exploitation of resources through co-operation with others linked
to privileged economies.
The United Nation’s Millennium Development Goals campaign addresses access to
water and health services for all and the elimination of famine, disease, civil war and
the results of climate change. This illustrates the desire of some to bring about a more
equal and flourishing world that accepts diversity. Rapid development in itself may be
unplanned, inappropriate and biased in favour of the rich. In short, our hypothesis is that
the desire to flourish is a growing global aspiration, which can be integrated into buildings
466 Conclusion
and infrastructure. This goal depends on an enhanced integrated approach, whereby the
client, project team and other stakeholders collaborate in a social way, a process that also
depends on the desire of the client and professional team to build a better society, some-
times called the ethics of social responsibility.
The model in Figure 16.1 changes the emphasis of construction to the ‘big picture’ to
give the client and delivery team global responsibilities towards the user and neighbour
experience. Quality, time and budget control will need to be redefined to have a social
and environmental aspect. Quality is usually about functionality but it is also about a
sense of fulfilment. Constraints such as budgets may need to be discussed with stake-
holders where there are choices that can encourage ownership. The model also imposes
responsibilities and restraints on the user as they have more freedom and thus have to be
considerate and towards their community and must work collaboratively to fulfil societal
objectives such as neighbourliness and recycling. Stakeholder meetings may offer too
many choices. Rules such as no parking and facilities such as cycle storage and recharging
Intelligent design
Client user recognition Business interdependency - easy and safe to use
- long-term versus quick wins - procurement and logistics - evidence driven
- stakeholder management - health and safety - local character
- democratic justification - contract and rights - spatial comfort
- agility and flexibility - social responsibility - desirable place
- risk and value - multiplier effect - smart + innovative
- effectiveness and relevance - value driven - adaptable/flexible
- social responsibility - progressive sustainability
Integrity and ethics Considerate

- future need construction
- anti-corruption - communication
on
ati
- farsighted - local sensitivity

nis
Pro
- social impact - healthy and safe

ga
- Trust - pollution free

jec
Or
- engaged workforce
intercultural cities cités interculturelles - community sensitive
Sustainable
- progressive regulations and
development control Quality
Community
- adaptable to climate change - fit for purpose
- resource efficient - beautiful to behold
- ecological diversity - user delight
- social accounting - social fulfilment
- carbon neutral - diligent and compliant
Wellbeing Resilience Community

- endurable - hazard minimisation - cultural and heritage
- equitable - limit vulnerability - social identity
- accessible - ease of response - connectedness
- enjoyable - recovery promptitude - inclusiveness
- diverse - socially durable - public safety
- lifestyle choice
Figure 16.1 Future cities and wellbeing

Conclusion 467
provide opportunities and restraints. The blind imposition of security measures to ‘pro-
tect’ communities can destroy community life and limit their freedom to own their own
problems. Trust, health and safety are also connected to attitudes to risk and value, and
may differ across cultures. At an institutional level, less responsibility and more rules
lead to less trust. Localism allows for diversity. Smart buildings may introduce extra risks
such as cyber vulnerability. Futuristic rather than intuitive technology may discriminate
and divide. Responsiveness is good but timescales for ongoing change may need to be
generous in order to be robust and avoid discrimination and loss of hope. Some of these
contradictions have already been discussed, but further comments are made below.
Future city systems

Future cities aim to counter traditional manifestations of class as linked to power and culture.
Rather, they are concerned with the wellbeing of all individuals regardless of which social
class they belong to. Future cities involve a collaborative and systemic way of thinking that
aims to interconnect physical, social and virtual subsystems so that they operate in a more
efficient and sustainable way and improve citizens’ quality of life. In essence, three main fac-
tors make the adoption of future cities necessary; these are better management of:
• dwindling resources by reducing over-consumption and waste

• manmade and natural risks through collaborative actions and practices
• social economics of communities.
Future city systems will strive to operate smart and semi-autonomous subsystems and will be
reliably prosperous and more responsive to social, economic and environmental challenges.
Above all, they will ensure that risks from natural and human-inflicted shocks are effectively
managed. Human activity is a social construction, which, just like a construction project,
must be holistically conceptualised, inclusively planned for and intelligently designed and
assembled to suit social habits, leading to a long period of operating and maintaining the
socio-economic subsystems in order for it to function effectively.
A building is a fully functional city in its own right, comprising all three subsystems
of a future city. Taking a housing project, which provides residential accommodation, as
an example, the building and its subsystem will be designed to meet the needs of a func-
tional and thriving community of occupants. An implicit society is created by a single
project but it also has a social, infrastructural and economic citywide impact that must be
considered. What may appear to be a new office building in town can open up a multitude
of opportunities for and challenges to social services and existing dwellings, and can
also lead to further economic openings. A habitable building will typically involve smart
technologies for energy efficiency, recycling rain-water and optimal use of ventilation and
lighting subsystems.
Built assets are a major component in the development of future cities, accounting for up
to 80 per cent of energy use. They create space in their relationship to other buildings and
infrastructure and potentially also help to develop a sense of place and neighbourhood. It
is important to consider quality of life in relation to economic prosperity and smart living,
which are key components of intelligent design in buildings and infrastructure. Future cities
are defined as smart, sustainable and resilient. However, the real agenda depends on the co-
ordinated design of buildings, services and infrastructure to meet current and future needs of
city users, which are also resilient to internal and external risks.
468 Conclusion
Explaining the model
Client and user recognition

Public authorities need to build up a repository of positive evidence relating to building
developments because of their accountability to taxpayers and to those who vote for them.
They need to be exemplary in their consideration of building and infrastructure users and
must be able to see the bigger picture. Vanity projects seldom meet user needs. Users need
ways for entering into dialogue with developers. Users and FMs should engage at early stages
of a project to facilitate their views democratically. Feedback is needed to see how they have
been listened to. This unfolds in several ways
Agility and flexibility need to be built in to respond to changing use as needs evolve.
Design that can be adapted if the users of the building or the building’s function change,
makes the building sustainable. Adaptable systems can be re-use, such as ongoing use of
short-term buildings such as the Olympic infrastructure, or joint-use, such as a school sports
centre being open to the public out of hours.
External stakeholders have an impact on the designer, but internal stakeholders need
democratic channels to make known their preferences and characteristics at an early stage.
There are conflicting demands for objectives between user interests locally, investors in build-
ing assets and the community that hosts the new development or infrastructure. One party
often gains at the expense of others and so-called benefits can be compromised. Benefits
analysis is important in the face of agreed objectives.
Risk and value are familiar concepts for project managers, normally applied to time, cost and
quality issues as a priority for controlling compliance, cost escalation and programme slippage.
Here, though, the emphasis is on adding value to create a high quality environment that promotes
respect for users and reduces social and environmental risk factors. Users in the built environ-
ment will want to reduce health and safety hazards, but deeply desire buildings and spaces that
promote equality, diversity and social capital and offer them respect and a voice. The confidence
of end users increases as a result of visible engagement and protection measures for the public;
this is especially so when they trust that the project team is ethical and socially responsible and
contractors have responded to their concerns during the construction process. Confidence will
reduce dramatically if accidents happen or contractors are exposed by the press for taking short
cuts and putting the public at risk. Preventive and responsive actions must be part of the handover
communicated to the end user to reduce their vulnerability. As a consequence of ever-increasing
digitalisation, privacy and role identity are growing concerns for many. Case study 16.1 gives an
example of how risk and value were used for the benefit of both project and user.
Risk sharing is a collaborative process that apportions accountability and develops
people’s awareness of potential risks. Joint insurance policies and bank accounts with col-
laborators encourage win–win solutions. Transparency and shared identity are other things
that can be enhanced by sharing both risks and savings resulting from increased value. Risk
and value are two sides of the same coin in this context.
Case study 16.1 Risk and value: the Andover North Site

Redevelopment
In the construction of the Andover North Site Redevelopment (ANSR), the objective of the cli-
ent (Defence Estates) was to ensure that value and flexibility to change were incorporated as
Conclusion 469
a result of providing a team environment that shared risk equitably. The project was procured
under a capital prime contract with a seven-year maintenance period. Risk was assessed
and assigned to the party best able to manage it, with the added incentive of sharing gains
and losses to manage the outcome so that parties were motivated to provide an effective and
value-induced design. This was helped by the early involvement of the contactor and the full
involvement of the client in the project team.
Users and workers were also invited to value management workshops to generate
new ideas for savings that could also apply to the upgrading of buildings previously
used for accommodation benefit. A reward system was established to provide incen-
tives and if ideas were used these could be patented and savings on redevelopment
costs shared.
This project also adopted a joint insurance policy so that different organisations
would bear the risk of mistakes equally and cross-check the risks. The joint account for
payment ensured a similar goal by rewarding shared ideas for value management so
that cost savings could be shared equally across first-tier supply chains.
Zero risk is a good aspiration in terms of health and safety, but transferring risk to other
users who cannot properly manage their responsibilities makes some parties vulnerable.
Organisational interdependency
All organisations have commercial and social responsibilities. The private organisation is
directly responsible to its shareholders and the public organisation to its taxpayers or donors.
However, social responsibility is a triple bottom line consisting of environmental, social
and economic responsibility. These work in balance to ensure the long-term sustainability
of the organisation. The organisation needs to take users and community stakeholders into
account as well as those who are direct investors, and create a return that motivates everyone
involved. Specific commercial aims are to make a profit, satisfy rights and contract condi-
tions and enhance value so as to ensure that a project remains profitable and meets the aims
of shareholders and other stakeholders.
Specific social responsibilities are to maintain or enhance the sense of place and com-
munity; to inspire loyalty to the project; to boost local value added and social capital; and
to use sustainable designs and materials that minimise the use of scarce resources, reduce
carbon emissions and are ecologically sound. Other factors are the reduction of pollution and
the creation of a safe building and surrounding environment. This triple bottom line means
that organisations must provide a service that gives them a sustainable profit in return for a
responsible contribution to the community.
Creators of buildings and infrastructure, such as designers, contractors, clients and project
managers, also work hard to establish a balance between commercial and social responsibili-
ties to ensure that a project is fair and equitable. As arbiters, they balance investor returns,
environmental enhancements and satisfaction of development control in the wider commu-
nity. In essence, a building or infrastructure should put more into the community than it takes
out. Procurement is a powerful way to show shared intentions to benefit the client and com-
munity alike. Contractors as businesses have a responsibility to negotiate considerate ways
of working to deliver the project and to maximise employment opportunities locally through
training and apprenticeship. Case study 16.2 indicates how business development can be a
catalyst for social aims but may also induce controversy.
470 Conclusion
Case study 16.2 HS2 and its impact on future flourishing

of Northern cities
The HS2 project to connect Birmingham and the North West to London via an ultra-
fast rail link has a stated political objective of decentralising power from London to the
North. It is a controversial infrastructural project not only because London may lose
jobs to the North but also as existing properties ‘en route’ may be devalued. The project
is a response to a political agenda focused on helping those living in poorer areas to
gain access to employment opportunities; to provide for those with jobs in the North the
possibility of career progression; to make establishing headquarters outside London an
attractive proposition; and to provide additional economic opportunities for the region
as a whole. Some public organisations, such as the BBC, have already been dispersed
to help boost local private enterprise and build positive economic momentum. Local
airports have been expanded to facilitate business travel.
From a project manager’s point of view, this means greater mobility and new ways of
managing stakeholders. It also means creating a new area of influence geographically
to resource development.
Integrity and ethics

Clients, designers, contractors and users need to work to a code of ethics to minimise resource
usage, adjust to local products, reduce transportation and provide robust and resilient solutions
that are not too sensitive to change. Developers need to build up trust and provide evidence of
noble intentions by providing living and working spaces that take into account past mistakes
and use new technology to improve conditions locally and globally. Accountability for poor
design and quality needs to be transparent and blame accepted. Wellbeing is also dependent
on fair employment conditions and a living wage that allows people to afford home comforts
without working excessive hours or managing the uncertainty of casual contracts. Corruption
is the most insidious of all practices and it attacks the very structures that seek to protect
society. Corruption is most likely during the procurement process.
For businesses, there is an increased recognition that some buyers and consumers prefer
products made by ethical firms with a reputation for integrity, that make ethical investments,
use renewable resources and pay workers properly. Schemes exist to provide verifiable track-
ing of sources, such as minerals and timber, to their actual extraction. Construction is a typical
industry where cash payments make it easy for modern slavery to flourish. A far broader
application of ethics is discussed in Fewings.1 Case study 16.3 is an example of how an ethical
solution is connected with a specific aspiration to improve procurement of materials.
Case study 16.3 Worldwide Responsible Accredited

Production (WRAP) scheme
The WRAP principles are based on generally accepted workplace standards,
environmentally-friendly product production and legislation. They forbid forced or child
Conclusion 471
labour, harassment, abuse and discrimination and protect the right to collective bargain-
ing. They also apply stringent standards to products to ensure they are not harmful to
the environment, control waste in their manufacture and are safe to use.
An example in the context of building products is the timber stewardship scheme,
which ensures that a chain of evidence exists demonstrating that raw materials and the
manufactured goods made from them are renewable or have been recycled. The scheme
identifies timber sourced from managed tree replanting programmes that do not destroy
local ecological systems. These products are ethical in terms of social and environmental
costs but accrediting them involves a great deal of effort in complex construction prod-
ucts. The BREEAM scheme credits ethical sourcing of construction materials.
Quality
If we use a definition of quality that is focused on customer care, we comply with customer
needs creatively. However, social quality is defined as ‘the extent to which people are able to
participate in social relationships under conditions which enhance their well-being, capacity
and individual potential’.2 Applying this to the built environment, we can think of the need to
live and work in places that inspire, preserve dignity and are tailored to our own outlook and
that of our community. Quality from a social perspective puts users and residents first rather
than focusing on maximising the profit of the developer or taking the path of least resistance.
Social quality is a bridge that crosses barriers, links up diverse communities and provides
opportunities for building relationships. Buildings, infrastructure and sensitive landscap-
ing have the capacity to make statements, create new environments and improve living and
working conditions. More than that, high quality design and execution of construction pro-
jects can be inspiring and suggest long-term permanence that provides a sense of stability and
confidence. Such construction projects also consider more than the immediate user and take
into account the needs of future generations. Flexible design facilitating empowerment and
community ownership can also help the business case. Some pure social projects, such as the
Curve Community Centre providing support for those affected by the Grenfell Tower fire,
require public funding3 that is paid back in the form of social capital later on.
Quality can be connected to quality of life, for instance it may speed up recovery in hospital.
Quality spills out into the design of dwellings for those who are being cared for in the com-
munity. In a broader social context, accessible developments can enhance the quality of life of
those who are disabled or vulnerable as a result of poor physical or mental health. Designing
houses with visible spaces and natural barriers to trespassers can help reduce crime. Good
school design can promote learning, as was illustrated in Case study 12.9 in Chapter 12. Well-
designed workplaces and flexible working can also boost productivity.4 In terms of schools,
creative design has been informed by the opinions of previous and potential users and the goal
of treating varied-ability students inclusively; this process lead to improved results.
Other social aspects to consider are safe access and security measures in the vicinity,
particularly in residential developments approached at all hours. Spatial amenities such as
recreational provision can motivate and promote an active and interactive workforce. A desir-
able workplace or living place can provide pleasure, inspiration and a sense of achievement.
A well-researched design intended to shield users from the harmful effects of environmen-
tal factors and thus protect their health promotes social equality. Sustainability is discussed
separately, but quality design and delivery have a huge impact on effective solutions.
472 Conclusion
Intelligent design for buildings
Building design is about change and its wider impact should be for the common good.
Architects and engineers have traditionally merged function, use and spatial balance in their
designs. The Design Quality Indicator (DQI)5 measures design quality with these factors and
social considerations in mind, quoting the first-century BC Vitruvian principles6 for design
quality whereby a building must demonstrate firmitas (be durable), utilitas (be useful) and
venustas (be beautiful). These are translated into:
• build quality, which covers performance engineering systems and construction quality
and appearance
• functionality, which ensures that user requirements in terms of use, access and space are
addressed
• impact, which builds on character, form, the internal environment and urban and social
integration
Designers are both encouraged and restrained by planning restrictions and local appeals. The
DQI, however, encourages excellence and creativity and provides ‘checks and balances’ in
the development process so that designs are not blocked on the basis of commercial con-
siderations or political expediency or subjected to poor compromises. It is important to see
development proposals from the perspective of others, including their sustainability; however,
many appeals are selfish and short term in nature.
Resilient
Smart
Sustainable
Robust
Functional
Figure 16.2 Intelligent design

Conclusion 473
Private commissions may encourage creative design because it can have a positive effect
on the status and image of the client. However, there is a need for intelligent design to max-
imise the wellbeing of those affected by the building and its actual users. In a broader social
context, quality in design is inclusive and contributes to liveable, interconnected and equita-
ble cities, where improved quality of life is the most desired end result. Community character
is a primary consideration in the design of urban spaces and housing so that people may
flourish and the needs of the client are also met. Figure 16.2 defines intelligent design for
buildings in response to the needs of future cities and they are further explained below:
• Functional designs meet the client’s needs in terms of responding to their value system
and ticking the following boxes of well-managed projects: cost, quality, time and cost.
They satisfy the user’s need for comfort and safety. They offer satisfactory VFM but will
occasionally need retrofitting and face-lifting to meet changing needs.
• Robust designs offer excellent functionality and are also steady and operable. They have
flexible internal subsystems to withstand pressures such as change of use or need for
conversion. Good VFM is guaranteed by increased operational performance, maintain-
ability and safety standards.
• Sustainable designs respond well to current and future needs. They optimise use of natu-
ral ventilation and daylight. Rain and waste water are recycled and their use translates
into very good BREEAM energy ratings. ‘Green buildings’ can also supply power to the
National Grid. Generally, sustainable designs demonstrate reliability and integrity and
embrace social equity.
• Smart designs are technologically enhanced so as to make them autonomous or semi-
autonomous. Smart controls replace inefficient user behaviours. Interconnected smart
subsystems interact with the user to understand and respond to corresponding needs.
Smart buildings tend to incorporate green technology.
• Resilient designs are flexible and adaptable. They are able to withstand and respond in
a timely fashion to user factors and external risks such as blackout and vulnerability to
terrorist attacks.
Case study 16.4 looks at the capabilities of an intelligently designed building.
Case study 16.4 The Edge, Amsterdam

This futuristic office building was designed to function as a smart open plan system,
whereby 75 per cent of employees would have a permanent desk space and the remain-
ing 25 per cent would need to book a ‘hot desk’ to suit their needs. A desk is booked
via a smartphone app that allows the user to select options such as type of desk, light
intensity, ventilation and how the employee will travel to work so that a parking space or
bicycle slot is reserved without the need to contact the building manager.
The building aspires to be self-sufficient and resource efficient. Its solar panels cre-
ate more electricity than the building can consume and collected rainwater is used to
flush toilets and water the gardens. Excess rainwater is stored 120 metres under the
building to keep it warm and is used to heat the building in winter. The intelligent ceiling
(continued)
474 Conclusion
(continued)
monitors motion, light, temperature and humidity to ensure the office is a comfortable
space to work in. The 15-storey high atrium maximises natural ventilation and daylight
by allowing a loop of natural ventilation to create an outdoor effect. Efficient LED lights
are powered by the same cable that carries data from the internet and the building uti-
lises 30 per cent less electricity than a standard office block as a result.
The utilisation of AI allows the building to recognise the employees, their cars and
their daily work schedule. It also remembers choices such as light and temperature.
Night security and cleaning are provided by robots. The building achieved the highest
ever BREEAM rating – 98.4 per cent – for sustainability and the return on investment is
estimated to be within 10 years.
Do you consider this building to be futuristic or user friendly?
Considerate contractors
Considerate contractors think about the impacts of redevelopment and refurbishment pro-
jects on neighbours, occupants and passers by. There are many ways in which a project
can be managed to reduce energy usage, noise, dust and other air pollutants through intel-
ligent use of deliveries and stewardship of construction materials, plant choice and usage.
The Considerate Constructor Scheme (CCS) encourages such an approach, and BREEAM
and LEED award points for sustainable and considerate delivery and constructor sensitivity.
They also examine employment practice, recycling, community engagement and local usage
of labour and resources. A company’s need to demonstrate corporate social responsibility
(CSR) can provide a good incentive to adhere to these schemes and may also gain it credits
and enhance its reputation. Case study 12.10 provided an example of a member of the CCS
being rewarded for good practice.
Sustainability
Sustainable structures are often based on designs that improve the carbon footprint of the
community. The savings made as a result of energy efficiency should, ideally, be invested
in other sustainable measures such as water saving to prevent water shortages in the future,
reduction of pollution and regeneration of poor land, which help balance the local ecology.
Projects should also be resilient so as to resist the impacts of climate change, such as flooding
and rising temperatures, on vegetation and tree populations. Chapter 12 discusses sustain-
able construction in depth and looks at the processes involved in increasing energy saving,
enhancing ecology and upcycling made possible by new technologies.
The construction sector accounts for a large proportion of material used and wasted. The
client can decide to incur extra capital cost at the inception of the project to gain whole life
savings resulting from the generation of renewable energy, reduced water usage or using
exclusively alternative non-polluting products. In time, the capital price of these technologies
will fall, making them more attractive. There is much to support the simpler lifestyle of the
users but they need to be given an opportunity to be involved in building design. Education
and transformation of user attitudes are also important in the efficacy of sustainable design
and BREEAM and LEED certifications provide evidence for changes in the way a building is
Conclusion 475
understood and used. Embedded energy is a way of tracking carbon footprints and reducing
energy use. Case study 16.5 considers buildings that are highly sustainable.
Case study 16.5 High-performing sustainable buildings

A culture of commitment to sustainability is evident when looking at the buildings
sampled in Table 16.1. Here, we can clearly see that these clients of high performing
buildings believe it is their responsibility to reduce CO2 emissions and embrace sustain-
able solutions. Owner-occupied office buildings achieve better ratings than commercial
properties leased out because clients have limited interest in investing in the initial out-
lay costs. Embracing sustainable technologies benefits employees and the community
alike, leading to the improved comfort, health and wellbeing of employees and higher
productivity and job satisfaction as a result.
Table 16.1 Anatomy of high-performing buildings
Building Performance
Western Power This is a 650m2 building. The client’s ambition was to construct
Distribution environmentally-friendly properties and intended this building to be carbon
Depot, neutral. In the post-completion sustainability assessment the building
Spilsby, attained a BREEAM rating of 100 per cent. This was a CCS registered site
Lincolnshire and attained 100 per cent recycling as part of its commitment to sustainable
construction practices. The building is designed to maximise natural
ventilation and daylight. It runs on renewable energy from photovoltaic
cells and is fitted with water leakage detectors.
Geelen This is a 2,800m2 office block renowned for achieving a BREEAM rating
Counterflow of 99.94 per cent. The building generates enough power for its own use
head and feeds the surplus power to a nearby steel factory. Three factors were
office, The critical to this success: (1) the company’s sustainability philosophy, which
Netherlands is embedded in all products it produces for its clients, who themselves
want to demonstrate their commitment to achieving 100 per cent self-
sufficiency; (2) team collaboration – the team of designers, engineers
and the construction supply chain shared the company’s commitment to
sustainability and ensured that only sustainable materials and systems were
specified for the building; and (3) sustainable solutions, such as rain water
collection, micro-power generation for green energy, highly sustainable
materials and encouragement of biodiversity. The Netherlands encourages
a ‘cradle to cradle’ certification of sustainable products.
Bloomberg’s This development covers 103,690m2 of office space in the city of London. It
new gained a BREEAM rating of 98.5 per cent for the design, which has the
European potential to achieve an overall savings of up to 76 per cent for water and
headquarters, energy against comparable office buildings. Its performance is technology
London enhanced through the design of efficient and integrated systems for water,
energy, light and ventilation. The building has net zero mains water use
for toilet flushing. The client has a zero-landfill policy, waste is recycled,
composted or converted into energy. It has an onsite wellness centre for
staff providing recreational and health facilities.
476 Conclusion
Resilience
Confucius said, ‘Our greatest glory is not in never falling, but in rising every time we fall.’7
World events such as the 2004 Tsunami in East Asia, the 2001 terrorist attack on the World
Trade Centre in New York and the Pentagon in Washington, the 2010 earthquake in Haiti
and the 2017 Hurricane Irma that hit Caribbean islands and Florida caused huge damage and
the loss of many lives. Resilience is about creating robust structures that can provide some
protection to people as they try to escape or wait to be rescued.
Resilience refers to proactive action to deal with hazards resulting from climate change,
social dynamics and so on. It also aims to minimise the impact of the aftermath of natural
disasters such as earthquakes, flooding and storms or terrorist and cyber-attacks. Buildings
can resist earthquakes (e.g. in Japan), be resilient to serial flooding (e.g. during Indian mon-
soons) or anticipate terrorist attacks, such as roadside barriers to absorb explosions and the
impact of vehicles. The rising number of building fires has led to a new emphasis on preven-
tive measures such as robust design using non-combustible materials, wider use of sprinkler
systems in tall buildings and safe passages for evacuation as a requirement of building codes.
The risks of natural disasters and terrorist attacks are broadly predicted, managed and miti-
gated not eliminated. Mitigation can also mean that structures can be rehabilitated sooner and
allow quicker recovery in cases of mass evacuation. A lot of work has been done on houses
susceptible to flooding. Resilience is an increment to both smart and sustainable systems and
can be in the form of:
• Warning systems to detect and predict the dangers before they happen – a predictive
approach.
• Resilient design aimed at reducing damage and human cost. – a mitigating approach.
• Recovery systems aimed at providing social support to the victims post-incident – a
responsive approach.
Semi-autonomous design of intelligent buildings can empower them to respond proactively

and reactively to threats such as flooding, fire and collapse, to reduce the extent of the dam-
age. Smart sensory technologies incorporated in design codes and standards can potentially
provide for an early warning system so that occupants can be evacuated before the fire, for
example, has spread; however, the building itself can also be robust enough to give plenty
of time for evacuation, especially of those who are most vulnerable. Designing for resilience
may be perceived as a waste due to the low probability of dangerous incidences actually
occurring but reasonable allowance should be made. That said, some resilience measures do
need to be balanced; cyber-attacks, for example, are more likely to take place in buildings
loaded with internet-connected sensors to provide an early warning. Case study 16.6 gives an
example of a resilient response to flooding.
Case study 16.6 Resilient buildings

When the Whitney Museum of American Art in New York was being built in 2012, it was
flooded. The newly constructed basement became part of the Hudson River as a flood
surge rode over its banks and spread across a whole block to the museum. In 2015, when
it finally opened its doors, it proudly displayed a modified design with watertight doors, glass
Conclusion 477
on the ground-floor level and the ability to quickly assemble a temporary flood barrier. This
retrofit cost a further $20 million. Not all budgets are able to expand to these significant
extras and the current philosophy is to limit building on sites that are susceptible to flooding.
Resilience in respect to climate change is important because there is significant scientific

agreement on the consequences of global warming.8 Today, it is unacceptable not to plan for
climate change that will, in the future, affect those in vulnerable climates and topographical low-
lands. Managing the environmental impact on the building as well as the building’s impact on
the environment is now enshrined in ISO 14001:2015. If the key change is rising sea levels and
flooding, then development near the coast needs to be future proofed by restraining construction
in low-lying areas, building more sea defences or making buildings resilient to flooding. This
can be achieved through development control and mitigating design. If the key change is less
predictable, for example extreme weather conditions that might cause local flooding by nearby
rivers, then broader infrastructure, drainage systems and restraint from development on flood
plains is required. If the key climate change is rising average temperatures and less rain, then
more efficient cooling of buildings in temperate climates, increased shading and air conditioning
and water conservation are required in affected regions. Drought-resistant planting (especially
trees that also provide shading and disperse CO2 ) is needed in all areas.
Community
Though buildings are built within communities only a few show true regard for their impact
on them. Even community centres are often the outcome of only one element of the commu-
nity wanting such facilities. However, some buildings have the capacity to build community
and provide widely used facilities; for example, a community school that also provides cheap
space for community events and out of hours sporting activities and a library that provides
universal online access and a place for children and retired people to meet. Other facili-
ties that create a sense of community are local shops, small local businesses provided with
start-up funds, a church adapted to incorporate a post office run partly by volunteers, safe
children’s playgrounds and safe and affordable housing for the less well-off that is well
designed so as to be accessible to facilities and public transport. These examples work if
they are conceived with community input and respond to feedback for improvements in use.
Case study 16.7 shows the need to direct physical community development by under-
standing transformative themes first.
Case study 16.7 Transformative ability for community

development
Ziervogel et al.9 present a case study from South Africa to demonstrate how commu-
nities can be transformed by the concept of moving from conventional sustainability
using technical solutions to designing in regenerative resilience. They describe the
(continued)
478 Conclusion
(continued)
process as bouncing forward from adversity rather than bouncing back to survival
mode. It is expected that this approach will embrace large scale change and not
incremental adaptation. In marginalised communities, they see participatory planning
together with ‘knowledge co-production as connecting sustainability and social jus-
tice which reconnects communities to “life support systems” by the measured use
of agency (assistance) in the right balance to supplement self-help’. The case study
described the FLOW project constructed between the University of Cape Town and
the marginalised Bergrivier Region. It was based on establishing a foundation of
wellbeing and engaged youth ambassadors to educate them on the themes of local
exchange practices, water supply, energy, food, land and shelter. It started by provid-
ing a better water supply system and an intention to launch low-cost community credit
facilities for development purposes. The youth ambassadors conducted surveys to
ascertain the needs of the community, learning on the job, and set up a sequential
programme of improvements for each theme in bite-sized pieces. During this process
the skills and abilities of the youth ambassadors were also developed as they learnt
how to lead community actions and identify economic opportunities.
Projects and communities are integral to each other and can potentially provide mutual
benefits. Projects that invest in the local community through engagement, employment and
skill development will receive, in return, a strong local network and reputation, more skilled
local employees, the achievement of a lower carbon footprint due to savings on transport and
reduced need for marketing campaigns thereby saving costs. Engaged communities are likely
to support the project as they see direct benefits and the opportunity to flourish. There is
also a sense of ownership of project outcomes when the project is intended to provide direct
services. Publicly-funded projects increasingly incorporate within the tender documents and
contracts a requirement for the provision of social benefits that will be monitored by the cli-
ent’s project manager. However, such requirements are often relaxed if clients are strongly
resistant to expanding their capital budgets to meet the cost of such provision. Social clauses
may be added to the contract, setting employment and skill training targets for the contractor
and the supply chain, which are reviewed and monitored by the project manager. Efficient
construction methods, such as offsite manufacturing, will reduce the opportunities available
to the community and an optimum balance should be considered, such as prioritising using
local workers. An engagement strategy to balance the concerns of both sides regarding the
inconvenience caused by a construction project is wise.
A cultural change means that contractors will be able to incorporate legacy policies
and negotiate with communities about available opportunities, thereby removing the
necessity for such requirements to be prescribed in the planning process. It is common
practice in the UK for local authorities to ask projects to make a mandatory but nego-
tiable contribution in the form of providing cash, developing community infrastructure
or allocating a proportion of the new development to affordable housing. Such policies
have an impact on sale prices for commercial developments because the investor will
recoup the cost from the buyer, but they are beneficial as the project directly contributes
Conclusion 479
to social cohesion. It is also increasingly common for projects funded by bilateral grants
or government budgets to require construction contracts to include social clauses that
empower the project manager to monitor and report on progress made in delivering ben-
efits such as sponsored apprenticeships and opportunities for SMEs and local suppliers.
Case study 16.8 describes an example of community building.
Case study 16.8 The Bemrose School

This project was a £4 million extension programme to increase the capacity of the
school from 900 to 1500 pupils. The extension was carried out during term-time and
the school had to continue operating without disruption. The limited time and budget
meant that there was no room for uncertainty. The project also sought to maximise
benefits to the community. The regional construction framework approved procurement
options that allowed the school to shorten procurement processes, thereby saving time
and money. With support from the selected consultant, approaches were made to a
preselected list of bidders who had an understanding of the local community and expe-
rience of delivering school projects. This lead to the early appointment of a contractor
to be involved in the development stages, 02–06, as shown in Figure 16.3.
Early involvement of the contractor shortened the overall process from construction
to completion and maximised community outcomes. The feasibility stages appraised
several design options on the basis of the project’s positive impact, including the wellbe-
ing of pupils and the community and its effect on the wider environment. The contractor
kept a community impact logbook that benchmarked progress against agreed KPIs.
Specific benefits included:
• Providing a welcoming learning environment for pupils and giving them a sense of
ownership. They were engaged through assemblies on health and safety and site
posters of the completed building to advance their understanding of the construc-
tion process and allow them to take pride in their new school.
• Offering 979 opportunities for work experience placements, giving site tours and
running mock interviews at nearby colleges. Four new apprentices were also
recruited from the community.
• Generating £607,000 worth of benefits for the local community; 85 per cent of the
total spend was within 20 miles of the project and 92 per cent of the jobs were taken
by local residents.
01 – 02 – 03 – 04 – 05 – 06 –
Enquiry Briefing Feasibility Planning Construction Completion
Timeline: (WKs)
1 WK 3 WKs 25 WKs 36WKs POE after 12 months
Figure 16.3 Timeline of the Bemrose School project

480 Conclusion
Wellbeing
Wellbeing is a measure of the experience of the user, the community and generations to come. It
emerges from a sense of things being well; that life is enjoyable, enduring, equitable and cultur-
ally diverse. It is the precursor to a culture of flourishing. According to Howe, ‘Construction has
a key role to play in building environments that reflect the reality of the lives people lead, and the
communities that enhance the lives and well-being of everyone.’10 In terms of place, wellbeing is
a sense of anticipation, rightness, balance, ambience and engagement of the senses.
In terms of future generations, wellbeing can be about maintaining the value of materials used
in construction by becoming aware of the principles of the circular economy. In terms of the pre-
sent, it is about an enjoyable and equitable experience, where all sectors of society are able to gain
from the creation, refurbishment or remodelling of the built environment and its relationship to the
natural environment. This is not a formulaic experience as all projects are different, but the project
should make the experience real and repeatable; for example, a worker will feel fulfilled at work
on a regular basis when doing so within a supportive environment, a resident will take delight in
the amenities offered by the new home they live in and those living in retirement properties will
be motivated by the building’s functionality and the sense of belonging it provides. There is an
interaction between buildings and the natural environment that promotes wellbeing. Ecological
balance is maintained and landscaping, trees and visual amenities are inspiring.
Equality of opportunity for the able and disabled, so that respect and dignity are maintained
and access is not barred, is also important. Diversity and racial freedom can be enhanced
by inclusive architecture and design, especially within the context of a community and its
various cultures. Designers have a responsibility to create attractive and creative structures,
spaces, textures and acoustic landscapes that are neither neutral nor oppressive. Accessible,
comfortable or challenging spaces are matched to context. A sense of space and belonging is
key to the flourishing and wellbeing of individuals and families and community interaction.
Opportunities for growth and development can be promoted. As Case study 16.9 indicates,
some guidance for wellbeing being incorporated in the principles propounded by the UK
National Planning Framework guidelines.11
Case study 16.9 Development control and wellbeing

The UK National Planning Framework (NPF) provides some guidance for promoting health
and wellbeing in new housing developments. It is connected to the creation of communities
that have good internal relationships, the use of good design, localism and wellbeing and
the elimination of health inequalities. Practical social aspects are the introduction of physical
activities for exercise, recreation and play, ease of use of public transport, creating places
and spaces to promote community engagement and the building of social capital. It also
promotes a diverse age profile, contributes to removing pollution and environmental haz-
ards and ensures access for both the able bodied and those with disabilities. Other issues
that could be added are security concerns and tree planting and landscaping.
Ownership
The ownership of a process is a great collaborative tool that should include real empower-
ment and responsibilities as well as rights. Procurement systems could be developed to a
Conclusion 481
far greater extent to include wider stakeholder comments. Stakeholder meetings need to
provide evidence that developers have responded to suggestions for change. Businesses
should be obliged to hear the voice of employees and to give them a chance to put their
ideas for new and refurbished facilities forward; buildings that are more usable and nicer
to work in will both reward employees and increase their productivity. Users could be
involved in early value management workshops and encouraged to be proactive in sug-
gesting improvements.
Conclusion
The integration of the social model requires a more holistic and inclusive approach to pro-
ject management, which includes an awareness of the context of development and the key
role of users and the wider community in helping developers to form their objectives. The
integration of the 10 aspects of our model recognises that the wellbeing and flourishing com-
munity emerges from intelligent sustainable design, considerate contracting and client user
recognition to provide a resilient community and a business that interacts with its community
context. A strong sense of integrity, responsiveness to the needs of users and communities
and an ethical approach on the part of the client and project team are necessary to inspire trust
that buildings and infrastructure will be appropriate.
The project manager of the future needs to consult with those who will use and be affected
by construction projects, and allow them to exercise choice and feel a sense of ownership.
Such projects can have a great impact on communities but can also result in beneficial
changes and a sense of wellbeing. The building of a dam to provide water and electricity, for
example, means successfully moving whole communities to new locations, which will create
challenges in relation to reconfiguring communities into formations that can still promote
wellbeing. Even the development of a new housing estate in a village requires sensitive nego-
tiation with the community to ensure that amenities are secure for the existing community
and fresh provisions are made for the new. New workplaces may benefit those working in
them but can be highly disruptive to neighbours. The project manager may engage in consul-
tation with those affected but also needs to evaluate their conclusions in a transparent fashion
so as to include assessment of risk and value in a social sense. Future scenarios need to be
assessed and presented sensitively to avoid blanket resistance on the part of those existing
communities that will be affected.
Notes
1 Fewings P. (2009) Ethics for the Built Environment. Abingdon, Taylor & Francis.
2 International Association on Social Quality Definition. Available online at: https://socialquality.org
(accessed 5 September 2018).
3 Refurbishment of the Curve was funded by the BBC’s DIY SOS programme. Builders were asked to
provide free skilled labour and suppliers to donate materials. Additional fundraising may also have
been involved.
4 Design Quality Indicator (2018) High quality Buildings Can. . . . Available online at: http://dqi.org.
uk (accessed 4 September 2018).
5 Design Quality Indicator (2002) DQI: The Solution to Improve Design Quality. Available online at:
http://dqi.org.uk/howdoesdqiwork.php (accessed 5 September 2018).
6 Marcus Vetruvius Pollio was a celebrated Roman architect and engineer who produced the treatise
De Architetura, which set out some basic principles for sound design.
7 Confucius (479–551 BC); Goldsmith O. (1762) The Citizen of the World, seventh letter from Lien
Chi Altangi.
482 Conclusion
8 Institute of Environmental Management and Assessment (IEMA) (2015) IEMA Guide to Climate
Change Resilience and Adaption. Available online at: https://www.iema.net/assets/templates/documents/
iema_guidance_documents_eia_climate_change_resilience_and_adaptation%20(1).pdf (accessed 11
June 2018).
9 Ziervogel G., Cowen A. and Ziniades J. (2016) Moving from Adaptive to Transformative Capacity:
Building Foundations for Inclusive, Thriving, and Regenerative Urban Settlements. Available
online at: http://www.mdpi.com/2071-1050/8/9/955/html (accessed 14 August 2018).
10 Howe S. (2015). Foreword. In Closing the Circle: Circular Economy: Opportunity for the Welsh
Built Environment. Available online at: http://www.cewales.org.uk/files/4214/9372/0980/Closing_
the_circle_Circular_economy_Opportunity_for_the_welsh_built_environment_Report.pdf
11 Ministry of Housing Communities and Local Government (2018) National Planning Framework.
Available online at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/740441/National_Planning_Policy_Framework_web_accessible_version.pdf
(accessed 8 January 2019), paras 91–94, p. 27.
Glossary
Agile project management is a flexible, iterative approach to developing client objectives.

It is a highly interactive development of the brief and is open-ended in its outcomes so
that solutions to problems or problems themselves can be discerned. In building and
infrastructural projects, the project manager may not need to commit the client to a built
asset solution.
Artificial intelligence (AI) is software that trains machines to carry out a series of intel-
ligent tasks and make decisions. Sometimes called machine learning, AI uses algorithms
that connect words, sensor readings, drawings or data to provide solutions or iterations
that are then converted into actions or responses to certain types of problem.
Augmented reality is the use of AI to visualise, for example, underlying elements of
buildings so that real ‘walk throughs’ are easier to understand.
Building information modelling (BIM) is an object-oriented database with multiple
dimensions that models 3D CAD objects taking into account time, cost, quantities,
building geometry, geographic information and building component properties. It can
be used as an integrated information system to generate multiple factor data and graphic
solutions useful to the whole building design, construction time and cost control and
facilities/asset management life cycle costing and durability.
Business plan is a client-based proposal for formalising the development of the business case
for a new part of a business or facility. It consists of some basic objectives and feasibility
assessments and may be developed as the project planning gets underway. On receiving
director outline approval, it moves the project from conception to inception, which is the
arbitrary beginning of the project life cycle as defined in this book.
Client is the commissioning sponsor of the facility and is the main business decision
maker in the project team. The client is the key customer, but not the only one. In
contract terms, the client is often called the employer, although they may have an
agent which separates them from any decision making. The client will be responsi-
ble for paying the bills.
Commissioning is the process of checking and testing the efficacy and compliance of a
building and its equipment and adjusting it for maximum performance.
Concept designer is a type of designer used in many countries to provide an overall
concept design that has no construction details but is intended to meet functional and
detailed planning permission requirements.
Construction contract is the agreement between the client and the contractor to deliver a
specified building for a given price. It will allow for variations to take place and for price
escalation to be rewarded in long-term projects. It also covers payment schedules and
specifies actions in the case of perceived risks to the client and contractor, such as delays
484 Glossary
and unauthorised cost changes. The cost consultants will mutually agree reconciled
interim and final payments to take into account changes or unforeseen circumstances.
Construction manager manages the construction and the commercial interests of the
contractor onsite. In construction management procurement, the construction man-
ager provides construction advice and procurement management direct to the client
on a fee basis.
Consultants are payable by fee as advisers to the client and members of the project team.
An executive project manager is a consultant, as are registered consultants such as the
architect, cost manager, civil engineer or building services engineer (mechanical and
electrical). The client may use a range of non-design consultants such as estate manag-
ers, lawyers, financial advisors, etc.
Contractor/subcontractor/specialist contractor co-ordinates construction activities in
which there are sub or specialist roles. In the supply chain context, a hierarchy still exists
but co-ordination may be operated in clusters, accountable direct to the project manager,
client or construction manager.
Cost–benefit analysis is a method of comparison between proposed costs and a strictly
agreed-upon set of benefits, such as those listed in the Green Book. For benefits to
exceed costs, an honest appraisal of the latter is needed, often reduced with an optimism
bias factor applied.
Cost planning is the scheduling of costs into categories for the purpose of estimation and
control.
Design brief is a guideline from the client to the designer providing performance or pre-
scribed requirements for the finished building. A brief is developed to offer a compliant
value driven design.
Design team is responsible for all aspects of the design. It consists of specialists in specific
areas of design, such as a building services engineer (mechanical, electrical and other
services), structural engineer (building structures), civil engineer (ground engineering
and civil structures), acoustic engineer, landscape architect, etc. They may work indi-
vidually for the client, indirectly for the lead designer (below), design and build contrac-
tor or PFI provider.
Earned value analysis is a classic contractor control for comparing actual costs with pro-
gress adjusted earned value at any point in time and provides a simple mechanism to
predict end cost.
Environmental assessment method is a standard for testing the sustainability level of a
complete building or facility. The BRE Environmental Assessment Method (BREEAM)
and Leadership in Energy and Environmental Design (LEED) are well-known methods.
Environmental impact assessment is a formal system of checking out the impact of
a project on the neighbourhood ecology and inhabitants for emissions, geotechnical,
noise and visual pollution.
Facilities management is the provision of non-core services to the client’s facility. It is the
planning, organisation and managing of a facility on a day-to-day basis to maintain the physi-
cal assets. A facility is a building or an infrastructure.
Feasibility generally refers to the testing of alternative solutions in order to optimise value
and ensure affordability without destroying functionality. Affordability is different and
is the test of issues that might terminate a project. It must include a financial appraisal.
Handover sometimes called close-out, is the process of practical completion when the
building or facility is given up for use by others and involves training, documentation,
the health and safety file and maintenance manuals and readiness for use.
Glossary 485
Integration or the integrated team, is the concept of seamless working between the client
and their consultants and contractor supply chain. It assumes a moving away from inter-
face management in support of a virtual organisation, where individual organisational
objectives are subjugated (integrated) to project objectives. It should lead to an early
appointment of the whole team to take part in the development process.
Lead designer co-ordinates the design team effort. In traditional procurement (see below)
they have access to the client, receive the brief at inception stage, develop the design,
arrange to tender for construction and exercise a quality checking role during construc-
tion. They are the key communication channel, which gives them a project management
role as well as a design role in the absence of an executive project manager. The lead
designer is usually the architect in building projects or the engineer in civil projects.
Lean construction involves driving down waste during construction projects by adhering
to the principles of more efficient design, productive layouts, less wasteful and better use
of materials to avoid rework.
Life cycle is the series of major activities that takes place sequentially during a construc-
tion project from inception to handover to a facilities team.
Life cycle costing is similar to whole life costing but is normally confined to the costs in
use and the capital cost rather than the broader business issues of access and market and
ongoing productivity. It is important for assessing sustainability.
Master plan in our context, is similar to the project execution plan. However, it is often
a pre-planning permission, design-based document used to provide stakeholder analysis,
spatial planning and blocking layouts, typical elevations, transportation routes, land-
scaping, signposting, access and planning use zoning for complex redevelopments of
sensitive or large development sites. It may also be a single development layout plan.
PESTLE is a mnemonic referring to various external environmental factors that may have
an influence on the project workings and should be ‘scanned’ because of their signifi-
cant influence. PESTLE refers to political, economic, social, technological, legal and
environmental factors; for example, discovering great crested newts on a development
site is a reason for protecting/delaying building over the natural habit until the breeding
season is finished.
Portfolio management involves balancing a range of different projects within an organisa-
tion and the assets and facilities required to maintain the strategic health of the business.
Principal contractor is the equivalent co-ordinator in the construction phase who is
responsible for producing a health and safety plan, integrating safe methods of working
and planning and controlling a safety management system.
Principal designer is a technical term for the person co-ordinating a suitably integrated
health and safety approach in the pre-tender documents and ensuring key as-built con-
struction information is collated and handed over to the facilities team. They play a
statutory role that is complimentary to that of the lead designer.
Private finance initiative (PFI) is a special form of private public partnership (PPP),
which leverages all capital funding from private finance so that banks or other funding
instruments are also brought into the partnership. The facility is transferred back to the
public body at the end of a 20–30-year concessionary period to provide maintenance and
ancillary functions. DBFO design-build-finance-operate is common form.
Private public partnership (PPP) involves a public authority and a private contractor or
developer together leveraging private funds to raise some or all of the finance needed to
provide a built facility. This facility usually houses a public service, but this service may
also be run by the private sector on behalf of the public body; for example, a toll bridge
486 Glossary
allows capital financing, maintenance and collection of the tolls over a concessionary
period. The latter is often termed a BOOT project: build–own–operate–transfer.
Procurement specifically applies to the tendering and contracting process involving the
client and their suppliers. The different approaches vary from traditional separate pro-
curement of design and construction to integrated arrangements with a single point of
contact and the development of a closer relationship with the client and the design team.
The choice determines the balance of risk allocated between the client and members of
the project team. The project manager needs to fit procurement type to client needs.
Programme management is the process of managing several related parallel or sequential
projects. A programme may cover many related small or large projects. From a strategic
perspective, programme management helps the client to manage resources and standard-
ise outputs and enables the supply chain manager to identify issues common to various
projects to develop value and capitalise on past knowledge gained. Alternatively, the
programme will relate construction projects to the necessary IT projects, moving people
projects and managing space projects and set up new systems to make everything work.
Managing these separately is courting disaster.
Programming sometimes called scheduling, is the breaking down of project timeframes
into activities, milestones and logical sequences to determine durations, resources and
responsibilities. The terms work breakdown structure (WBS) and organisation break-
down structure (OBS) are classically connected with programming.
Project is defined by BS6079-1:2010 as, ‘A unique set of co-ordinated activities with defi-
nite starting and finishing points, undertaken by an individual or organisation to meet
specific objectives within defined schedule, cost and performance parameters.’
Project co-ordination according to the CIOB, refers to the non-executive functions that
make up the smooth running of the project either after appointment of the consultants or
after appointment of the contractor.
Project culture refers to the way things are done. The project needs a melding of cultural
differences so that key areas of co-ordination are understood – a common language, a
set of health and safety rules, a win–win solution. Integration of disciplines and client is
sometimes difficult as a result of different perspectives and language use.
Project definition is connected with the process of developing the design brief by integrat-
ing the impact of site constraints and opportunities on the design brief.
Project execution plan (PEP) enshrines the strategic organisation that is relevant to devel-
oping a methodology for the effective and efficient delivery of a project. It provides a
baseline for cost and time schedules and strategic documentation addressing quality,
health and safety and project organisation. Often a special plan, the BIM PEP, is created
as a sub-plan to identify the information modelling technology and method. It recognises
that the master plan is related to the PEP and includes the design strategy and site con-
straints. Procedures are sometimes maintained separately in a project handbook.
Project management according to the CIOB, is ‘the overall planning, co-ordination and
control of a project from inception to completion, aimed at meeting a client’s require-
ments in order to produce a functionally and financially viable project that will be com-
pleted on time, within authorised cost and to the required quality standards’.
Project manager is the professional individual who is responsible for managing a project
to achieve specific objectives. An executive project manager manages the project on
behalf of the client from inception to completion. Experienced clients occasionally fulfil
this role themselves. It can be combined with other roles, such as lead designer, in tradi-
tional and less complex projects.
Glossary 487
Project sponsor is the individual or body for whom the project is undertaken and is also
the primary risk taker. The individual represents the sponsoring body and is accountable
for the spending of funds.
Project team according to the CIOB, includes those who have a professional role such as
design, funding and cost planning and the key first-tier contractors lead by the project
manager. It does not include the project sponsor.
Quality management is the process of developing a quality plan and managing the quality
of the product and service of components and elements of the building.
Quality systems refer to techniques, such as quality function development/quality assur-
ance, or principles, such as quality assurance, continuous improvement or total quality
management.
Quantity surveyor is a specialist in the financial and contractual areas of project manage-
ment, utilised by the client side for preparation of bills of quantities, auditing payment
and providing financial advice, utilised by the contractor for cost planning and control,
procurement, preparing payment claims and paying sub-contractors.
Risk management is a proactive approach to the identification, assessment, allocation and
mitigation of risk factors to rationalise and optimise contingency arrangements or to take
advantage of considered opportunities.
Scope management defines the scope of the agreed brief and manages changes to it. After
the development of the brief (definition), its scope should only change when additional
value is properly evidenced. It goes beyond project definition.
Social quality is the extent to which people are able to participate in social relationships
under conditions that enhance their wellbeing and individual potential. For a project
manager, as well as a designer, there is a responsibility to understand a building’s users
so that its design and technology use play a part in how the building is used.
Stakeholders of the project are those who have the potential to influence its course. The
most direct influences are likely to be the direct parties to the building contract and the
project team and the statutory permissions that are required on behalf of the community.
The shareholders have a much less direct influence on projects.
Strategic planning is a parallel process, alongside feasibility, to ensure that optimum
systems for delivery such as programme, funding, procurement and project control
processes give expected cost benefit.
Sustainable construction is a term used to describe environmentally and socially attrac-
tive solutions to the delivery and maintenance of facilities and attempts to limit the
effects of climate change. However, as the name implies, it should also consider the
impact of the building’s use of scarce resources, in the community and globally.
Traditional procurement means the separation of design and construction. The designer
is awarded on a fee basis and the constructor on a fixed price basis. The main contrac-
tor uses design and specification documents prepared by others. Specialist contracts are
sub-awarded by the contractor to their supply chain. There is limited whole life project
management, but key client contact is through the lead designer. Well-known standard
contracts are used, such as FIDIC, JCT and NEC.
User is the ultimate occupier/operator of the facility and may have nothing to do with
its commissioning. There is an increasing expectation for user and facilities manage-
ment input in the design to avoid the pitfalls of buildings that look nice but do not
work.
Value engineering is the tactical application of value management in the later design stages
when elements and components are being optimised in their design and procurement.
488 Glossary
Value for money (VFM) is the desire of every client to achieve maximum utility for a fair
price. Other social and environmental imperatives would make it important to consider
broader objectives in the light of development control, value, public expectations and
social responsibility.
Value management (VM) is the strategic analysis of functional requirements and the opti-
misation of provision within the physical asset provided, its maintenance and operation
throughout its life cycle. It should be separated from cost saving, which has the sense of
cutting quality or provision and is a reactive activity.
Virtual reality is the use of software to visualise a building remotely. It is an immersive
3D experience that enables the user to experience the building before it is built using data
from information modelling and goggles and gaming techniques to move around using
hand and head movements.
Whole life costing is the estimation of capital and subsequent costs for maintenance,
replacement and use as well as regulatory charges applicable over a business cycle, set
out on a time-adjusted basis, such as net present value (NPV). If it is a short cycle, demo-
lition and refurbishment are important. Sometimes it may be able to estimate business
efficiency cost and intangible benefits.
Index
Numbers in bold denote a more substantial reference page or a case study page when followed by ‘cs’.
5S control system 257–8 asbestos 300cs; risk 294, 310 377–8; regulations
319, 346
accident 309–10cs; causal factors 335; falling asbestosis 310
310, 336, 345; investigation 333; Labour ASTM 419
Force Survey (LFS) 310, 318; measurement Atkins Report 425
324, 334–5; near misses 310–11, 318, attitude: health and safety 317; open 40, 299; risk
333; reporting 333–4cs, 340–1; three day 89, 99, 296, 297, 298–9
absence 318 Augmented Reality (AR) 407–408, 483
accident prevention 318, 333–4, 335; active authority: Olympic delivery 367; organisation
model 334–5; focus groups 335 173–4, 178; planning 48, 52, 62, 86, 188;
accountability 111, 177; ethics 20, 470; health position 187; project manager 175, 180,
and safety 313, 314, 323, 341, 366, 377; 188, 217
project 179, 196; quality 131, 422, 429cs, 436;
risk 276 balanced flow 263
accounting: open book 105cs, 192, 257cs; balanced score card 100–1, 436
procurement 238; transparent 85, 104, balance sheet 72
131, 424 behaviour: digital 389, 410, 411; ethical
adhocracy 174 20–22; health and safety 324–5, 328–9;
affordability: feasibility 65–6, 299, 302, 398, individual 229–231, 234; occupant 460,
484; housing 22–23cs, 161, 478 proactive 216–7; stress 218–9; towards risk
aggregate tax 400 89; trusting 458
agile construction 5, 140, 483; procurement 84, Bekaert fencing 433cs
PM 5; construction initiative 260 Belbin roles 230–1
air tightness 358 benchmarking 132, 247cs, 248–50, 260, 271, 458
ALIGN (business case) 34–5 benefits: analysis 24, 306–7, 516; evaluation 46,
annual equivalent 282 450; management 450–2; realisation 449
appointment: consultants 99–100, 102–3; BES 6001 369–70, 370cs
contractors 100–2 best practice 196–9, 247cs, 249; digital 387, 398;
appraisal 47; building design 144; carbon life health and safety 318–9, 341; hub 366; quality
406; development 65; funding 65; investment 419; SMEs 456cs; soft landings 446
65–6; 72, 96, 299; option 69–70cs, 70–71; best value 43, 278, 283–285, 305
post-project 449–50; site 61–2; techniques bidding: competitive 97; fee 99; practice 22;
66–9 theory 89
appreciative inquiry (AI) 236–7, 237cs big data 412–3
approval: planning 146; development 352–3; BIM 387–8cs, 390–405; case studies 395cs, 400cs,
process 61; client 17–18, 146–7; see also 402–3cs; communication 227; contract 404cs;
development control design 154, 161, 162–3; dimensions of 396;
architect role 16, 18, 17, 92, 158, 167, 177, execution plan 401; information model 133,
188, 229 135; maturity 396; ownership 404cs; prefab 159;
architectural information models (AIM) 391, 401 process 399–403, 402–3cs; protocols 398–9,
Artificial Intelligence (AI) 392, 409–12, 483 404cs, 446; Task Group 386; RIBA 397–8
490 Index
bio-diversity 249, 367, 476 cash flow: control 127–9; cumulative 67,
biogas 373 130; discounted 43, 66, 67–8, 280; forecast
biological harm 345, 346 126, 105–6; internal rate of return 68–70;
biomass 369, 373, 374cs, 441 management 129–30, 196
blame free: accidents 328, 336; culture 39–40, CEEQUAL 355–6, 355cs, 368
87, 92, 238; handover 442; improvement 462; centralisation 177–8
partnering 184, 207–8cs, 239cs; contract 88, change management: control model 164; design
424; risk 301; shame 350 163–6, 165–6cs; module 400; procurement 44,
body of knowledge (BOK) 5, 19, 82, 115, 450 89–91; risk 89, 90cs; transformational 44–5
BOOT 87, 94, 299, 424, 486 chain of custody 361, 365, 369
BRC 370cs Channel Tunnel (Chunnel) 244
BRE Environmental Assessment Method CHAS 341
(BREEAM) 484; assessment 360–2, 361–2cs, civic society 168
376cs; comparison 354, 356–7cs, 358–60; claims 89, 126, 239, 283, 238, 239cs
contractors 474; FM 460; in use 441; sourcing clash detection 391, 395, 397, 400, 403, 407
368, 471; SWMP 377 clean room 114
brief (inception) 18, 49, 58, 79; design clean site 328, 444
149; digital 410; ecological 61; FM 459; client: approvals 17–8, 46; commissioning
functional analysis 287–8; problems 60; value 443; commitment 424cs; integration 41;
management 292 management 60–1; objectives 18, 35–7; 150
brownfield 62; sustainable 367, 378 satisfaction 194, 247, 248 424cs, 424–5, 426
BS6079 Project Management Guide 4 clients’ commitments 424cs
budget 130; change 90–1cs, 164–165, 165–6cs, client values: design 149, 165, 169; feasibility
238; constraints 41–2, 52cs, 58, 92; control 60, 63, 65; 66; handover 450; procurement 81,
125–7, 126–7cs,130–1; developers 71–2cs; 100, 102; management of 260, 275, 276–7,
freeze 130; PEP 115; PFI 94; project gateway 285, 289, 305
46; procurement 88; reporting 129–30; scope climate change 3, 161, 349, 372, 380, 474,
57; systems 113 476–7cs; Act 76, 350
buffer 125; constraints theory 294–295; lean 255, close-out 12, 18, 147, 398, 443, 484
259, 260 cloud technology 135, 227, 390, 399, 414
buildability 82, 228, 245, 407; design 92, 150, Code of Practice for Project Management 3, 5,
153–4cs, 155, 419; H&S 321; risk 277; 7, 10, 435
value 287 collaborative: contract 104–5; culture 385;
building control 144 relationships 93, 184; supply chain 183–4; see
Building Cost Information Service (BCIS) 137 also partnering
building engineering physics 351, 377, collocation 207
building information modelling see BIM combined heat and power (CHP) 373
building management system (BMS) 410 commissioning: client 10, 12, 443; construction
building regulations 18, 147, 286, 363, engineering 11–12, 440–3
376, 442 common data environment (CDE) 163, 392, 399
building service information models (BSIM) 391 communication: channels 10, 145; culture 225;
business: improvement 43; plan 34, 281, 483 health and safety 226; 315, 336, 338–9;
business case 40; change in 44; definition 33–4, honest 236; international 189–90; language
41; environmental assessment 358; presenting 7, 223, 328; meetings 229cs; model 223–5,
(DRIVE) 40; objectives 37 227, 236; system 152, 215, 224, 225, 252,
293; tool 115, 250
CABE 167cs community: benefits 477–9, 477–8cs, 479cs;
California High-Speed Rail, the (CAHSR) stakeholder 21cs, 49, 50cs, 285, 469; CSR 21,
406cs 353–4, 353cs
captive insurance 295 compensation: client 98, 98cs, 239, 433cs; event
carbon emission 362–3, 363cs; climate change (NEC) 88, 90–1cs, 105cs, 130, 239
372–3, 374cs, 350cs, 476–7; onsite 365; competence 367–8; co-ordinators 320; CSCS
proportionality 349; zero 372cs cards 328; emotional 213; H&S 308, 338,
carbon reduction 161 349, 350cs, 350–1cs, 339; professional 20, 117; project manager 5,
367–8cs, 405–6, 409cs; commitment 372; 18–9, 20, 28; risk 94, 268; trade 339
CSR 353; design 161; ethical 370; production competition: fair 20; inter-firm 180; market 247,
365–66; recycling 375 342; network 184, 449–50
Index 491
competitive(ness): advantage 400; business contractor: early involvement 43, 92, 150;
242, 247, 271; consultant 99; contract 106; specialist 124, 148cs, 164, 266, 269–70cs
design 96, 99, 355; dialogue 96, 96cs, 99; control: bands 127; cash flow 127–8;
group 213, 214; H&S 342; market KPI 248–9; dimensions of 14–15; feedback 119;
productivity 242–3; risk 299, 301; tender 43, feed forward 119–20; management by
51, 82, 95–96, 100, 132, 192; value 149 exception (MBE) 120; quality 131–2,
completion: practical 11–12, 442, 445, 484; 427–8, 428cs; time (programme) 122–4,
review 449–50; sectional 12; stage 444cs; see 123–4cs, 128–9
also handover Control of Substances Hazardous to Health
complexity: conflict 218; design 402cs; product (COSHH) 319, 346
393; project 23cs, 23–5, 62, 100, 145 co-ordinator: project 173–4; design and
component interoperability 393 construction 170; H&S (CDM), 320–1
compulsory purchase 63, 99 corporate manslaughter 346–7, 347cs
concession 520, 522–3 corporate social responsibility 353–4,
confident captains 346 353cs, 474
conflict: and stress 152–3; communication cost: benefit analysis 62–5, 64cs, 302, 374,
221–2; cultural 189–90; dysfunctional 218; 484; capital (CAPEX) 46, 302; centres 125;
lifecycle 219–20; Myers Briggs 234–5; change 484; checking 129; comparisons
personality 219–20; resolution 221, 252; and 265cs; control 127–30; operating (OPEX)
communications 222–3; resolution 233–5, 47, 58, 155, 283, 302; performance index
566; stakeholder 49cs, 49–50 128; planning 125–6; slippage 128; value
confrontation: attitudes 220, 434; contract 29; reconciliation 126, 127
gentle 221; lack of trust 105 cost plus 87, 88, 104
constraints: cost 138; design 276; planning 144; cost reporting 129
project 10, 35–7, 40–1, 52; quality 41, 47; cowboy 310
resource 140 site 62; theory of 294–5, 303, creative: design 163, 471, 473; solutions 136,
time 123 289, 287
Constructing Excellence 30, 44, 247–8cs, 400cs, critical path method 121, 123, 137, 140–2
462; contract 103 Crosby 427, 433
construction: manager role 16–17, 18, 88; phase CSCS card 226cs, 328
11, 322; safety 322 culture 131–6; appreciative inquiry 236;
Construction (Design and Management) change 190; 236, 386; communication
Regulations (CDM) 319–24; responsibilities 225; confrontational 220, 243, 434, 252,
319–22, 442; see also co-ordinator 492; corporate-business 189; international
Construction Clients’ Group 30, 43–4, 53 189–90; NEC 239; no blame 87, 165, 207,
Construction Operations Building Information 208cs; risk 301; H&S 328; silo 243; types
Exchange (COBIE) 399 (Handy) 186–9
Construction Product Regulations 328–9, Customer: focus 195–6; Egan 420; expectations
329cs, 367 418; requirements 19, 131, 434; satisfaction
Considerate Constructors 305, 328, Scheme 132, 152, 184, 197, 248–9, 252, 418, 421;
(CCS) 366cs, 474 SERVEQUAL 426, TQM 432–4; 433cs,
considerate contractor 474–5 434cs
consultant: appointment 98–9; ethical 82; fee 64, Customer care: principles (Handy) 422–3
72; bidding 99; liability 102–3; notification and
conditions 102; private 99–100; selection 100 database management 133
consumer 149, 470 DBFO 70–1cs, 81, 88, 148, 299; see also
contamination site 62, 65, 74, 151cs, 175cs, 375, procurement
378, 442 de-centralisation 177
contingency planning 120, 124–5, 165cs decision: DSS 133–4, 405; gateway 46–7;
contracts 53, 57, 103–5; award of 100; design support 405; tree 294
and build 104; 176cs documents 57; FIDIC Deeming (PDSA) 253, 427, 454
103–4, 105, 131, 487; manager 177; NEC defects: free 125, 420–1; liability 444; quality
88, 90–1cs, 103, 104, 105cs, 239cs, 487; 256, 420cs, 426
partnering 88, 194cs; PPC 2000 104; prime defensive behaviour 214
85, 87, 93, 298, 468–9cs; traditional 10, demolish 322, 376
16–17, 57, 81, 85, 87–8, 92, 105, 122, 147, demonstration projects 30, 260
153cs; types 88 de-motivating 217, 431; quality 431
492 Index
design: brief 37, 60–1, 113, 146, 484; change equality of opportunity 480; and diversity 21, 468
163–4, 165cs; civil engineering 155–6; equity 116
competition 96, 99, 355cs; complex 402cs, ergonomics 255
226; concept 146, 164, 292; detail 46; ERISDAM environmental assessment 358
development 59, 144, 146–7; engineering 294; escape routes 196, 409cs; evacuation 117, 314, 476
evidence based 150–1, 151cs, iterative 144; essential requirements 329, 367
integration 152–4, 153–4cs; nature of 144–5; ethics: appreciative enquiry 410; code 20,
option 78, 144, 398; programme 122cs; 295; contracting 22cs; design 149, 151–2,
quality 98cs, 44, 167cs; scheme 18, 46, 58, 152cs; integrity 470; leadership 20, 22–3cs;
60, 144, 146; standardised 158; team 18, 145; procurement 83, 382; risk 294, 300; sourcing
urban 166–7; waste 154–5 368, 471cs; sustainable 348, 353
design and build 85, 87–8, 92–3, 94, 100, 148 EU purchasing rules 99
design and manage 88, 148 European Foundation for Quality Management
design economics 154 197; model 197–9
designer: principal 319–21, 442; risk expected monetary value 294, 303
assessment 321 external factors/environment 73, 26, 28–9, 73–6,
design management 145–7, 145cs, 152, 163, 167, 111, 129, 186, 449, 485; risk 276; systems
177, 447 112, 189
design quality indicator 168 Extranet 114–15, 115cs
developer budget 71–2, 71cs
development control 62, 480cs; ethics 13cs facilities management 70cs, 95, 251–2cs, 459;
disaster reports 333–4cs BIM 460–1; sustainability 460
discounted cash flow 66, 67–8, 69–70cs, 165cs Factories Act (1890) 312
diversity 465, 467, 468, 480; social 20–1 factors of success 28, 27–9; see also success
DRIVE (present business case) 40 falls from height 311, 336, 345
drone (technology) 396, 414 FAST diagrams 289–1
duckers and divers 322 fast track procurement 148, 152, 223
duty of care 152cs, 346, 347cs feasibility: assessment 65–6; requirements 447;
risk 76, 83, 86; stage 10, 40, 57; study 10, 46,
early contractor involvement 43, 92, 150 65, 450
earned value 127–9, 260, 484 feedback report 125, 119, 261, 269–70cs; see
ecology 76, 155, 349, 352, 354, 471, 474, 480; also control
learning 456–7 feed forward 119–20, 122cs, 123, 124; cost 126,
eco reinforcement 369, 370cs 127, 128; H&S 338; last planner 271, 408
efficiency: factors 14–15; gains 227, 391, 394 feed in tariff (FIT) 352, 373
Egan: customer focus 420; H&S 227, 310; FIDIC contract 103, 104, 105, 131
improvements 34, 40, 51, 153, 247cs; final account 126, 133, 445
integration 53, 207; KPIs 248; quality 420; first tier supplier 469
report 29 fit out 12, 46, 148cs, 266cs
emerging construction technologies 407–11 flood defence 63, 64cs, 118cs, 155, 355cs, 362cs,
employers information requirements (EIR) 399, 476–7cs
400, 401, 405, 446 forestry stewardship 368, 369
empowerment 245, 433, 471, 480 fossil fuel 369
end user: handover 440, 446; information 408; framework agreement 103, 105, 192–3; see also
learning 457cs; quality 434; risk 468; soft partnering
landings 447 framework directive 345
environmental assessment management system function analysis 256, 287–9, 289cs; see also FAST
(EMAS) 380, 380–1cs funding appraisal 65, 65–6, equity 116
environmental impact 302, 352, 484 further education 361cs
environmental conditioning 232, 234 future city systems 467–9
environmental protection: Duty of Care futuristic design 158
Regulations 378
environmental issues: contamination 375; Gantt chart 121, 123, 140
emissions 349; pollution 160, 166, 352, 360, gatekeeping: communication 226, 227; design
371, 466; noise and dust 319, 332, 340; toxic 167; TOC 294
materials 322, 340 Gateway Review™ 17, 34, 45–7, 90, 164, 278,
environment management system: BS14001 302, 449
380–1cs geometric models 392, 397, 398
Index 493
Goldratt: theory of constraints 294–5 improvement: business 43–4; continuous 150,
governance: organisational 22, 25, 82; design 164, 191, 193, 247, 246cs, 247, 247cs, 248,
168cs 276; H&S 338–9; KPIs 249; lean 263, 254cs;
government agencies: design 118cs, 167cs; performance (Kaizen) 254cs; programme
quality 431–2cs 261–2; quality 427, 488cs; systems 462
government’s soft landings scheme (GSL) incentive: energy 350; financial 81, 106, 154,
447–8 257cs, 286, people 217; pain gain 91, 469;
Green Dragon Environmental Standard 381 quality 421, 432; renewable heat (RHI) 373
Green Globe 355–6, 356–7cs inception 9–10, 18, 40, 55–6, 57, 398
green guide 361 inclusive environment 406, 449; learning 453–4,
Greenstar 279, 359 467, 473, 480
ground source 407 industry wide: studies 27; standards 393
group 213; dynamics 231; safety 213; infographics 406
stakeholder 149; user 12, 209, 533, 540; work information flow 161–2; programme 162
225–6 information required schedule 161
group-think 89, 214 information systems 113–8; database113; decision
guarantee 284, 425, 430, 433 support (DSS) 134, 405; executive (EIS)
134; expert (KBS) 137, 137cs; flow 161–2;
handover 10, 11–12, 90–91cs, 440, 443–4, modelling 135, 162–3; project management
444cs; documentation; 445–6; see also (PMIS) 134; request (RFI) 165; socio-technical
close out 137; transaction processing 133
harm: environmental 348; future 76; H&S 330; innovation culture 148; change 205;
products 37; public 340 competitive advantage 83; design 152,
harmonised standards 329, 329cs 161, 350 358; learning 454; product 160,
Hawthorne experiments 213 242–3, and procurement 92–3; research 351;
hazard: approach 314, 318–19, 330, 332cs; sustainability 351–2; Wolstenholme 2, 30,
health 309; materials, 153 , 251, 310, 445; 185, 280, 283
waste 300cs, 377–8; see also COSHH inspection: commissioning 440–2; health and
health: reporting 309, 318; conditions 308; see safety 324, 326, 335, 336, 338; quality 428cs
also RIDDOR insurance 295; all risks 102; captive 295;
health and safety: attitude 325–6; barriers professional indemnity (PII) 102, 295; project
323; behavioural 327–8; buildings in use 192, 295, 424cs, 468
321–2; causal factors 335; construction 367; integrated project teams 53, 207–8cs, 209, 436
co-ordinators 320–1; culture 325–326cs, 328; integration 485; construction 12–14; client
inspection 338; materials 321; organisation 43; culture 237–8, delivery 260; design and
314–15; planning 315; policy 314; principles construction 152; insurance 295; risk 295–6;
312; product 329; reporting 340, 333–4; risk toolkit 424
assessment 330, 332; signposts 373; SMEs integrity 470
322–3; statistics 309–10; stress 311, 311cs; intelligent: design 472–3; building 75, 476
trade union 317–8, 376; training 359, 368, interdependency: business 466; organisational
373; training and induction 321, 323, 326–7cs, 184, 469; risk and value 276
328, 334, 341; worker engagement 315–16; interface: client 443; contractor-design 150,
316cs, 316–17cs; workplace 339–40 153–5, 153–4cs; design 90,143, 145, 148cs;
Health and Safety at Work Act (HSWA) 1974 management 460, package 17, 223, 239;
312–13 planning 123; trade 131, 184, 321; user 406,
Health and Safety Executive (HSE) 313, 318, 441internal rate of return (IRR) 68–9, 299
323–14 internet of things 385, 407
health and safety file (HSF) 319, 320, 445 inter-organisational 180–3, 181–2cs
health and safety management 323–4; competence inventory 256; self-assessment 230–1
321, 328, 334, 338; communications 226, investment appraisal 65–70, 299
226–7cs; controls 356–7; site rules 367, ISO 14001 Environmental Systems 375,
373; supply chain 369–70, 370cs; workplace 380–1cs, 382, 477
improvement 338–9 ISO 9001:2006 Quality Assurance 429–30
health and safety plan (HSP) 319–320, 321
heat sink 373, 374 Japanese ‘lean’ terms 130cs, 254cs; hansei 254;
heuristic analysis 275, 277, 294 heijunka 258; jidoka 254; kaizen 130, 512,
Hong Kong 95, 105, 189, 244, 265, 355cs, 395 516; kanban 253, 254; muda 254, 256; mura
hurdle rate: IRR 68, 71; risk 302 254; muri 254; poka yoke 254
494 Index
Jung 232, 234 388, 395, 401, 460–1; integration 459, 462;
just in time (JIT) 253, 254, 255, 258–9, 258–9cs operational 442, 443, 453cs; preventative
334–5,405–6, 435
kaizen see Japanese ‘lean’ terms Maister’s Law 51, 132, 418
key themes 3–4 management by exception (MBE) 120–1
knowledge based system (KBS) 137 management by objectives (MBO) 121
KPIs 132, 247, 247–8cs, 249, 271, 327, 334, 458 Management of Health and Safety at Work
Keirsey personality type 235 Regulations (MHSWR) 345
market: analysis 61; changes 11, 117, 163;
labour force survey 309cs, 318 conditions 90; demand 73, 75; forces 90,
labour only 371 182cs; housing 31; prices 11, 129; sales 72cs;
Last Planner 136, 260–2, 408 share 34, 456; tender price 25, 88, 101, 117,
Latham Report 29, 190; agile 260; partnering 92 125–6, 155
leader: behaviour 200, 204; effective 202cs; master information delivery plan (MIDP) 402
strong 177, 209 master plan 47, 115–6, 168cs, 178cs,182–3cs,
leadership 199–201; culture 201; ethical 20–3, 440, 485; see also project execution plan
172; project 201–2; style 200, 201, 205–6cs; matrix: cost benefit 63; culture 188; information
transformational 203–6, 205–6cs 134; project organisation 173–4, 175,
lean 485; construction 245, 259–62, 263; 176–7cs, 179cs, 181, 187; stakeholder 48;
manufacturing differences 262–3; principles quality price 98; PMIS 134; risk 269; task
252–9, 257cs; TQM 436; value engineering 285 responsibility 114, 131
learning: barn 159; before doing 452; by doing measurement: active 334; reactive 336;
455; culture 188, 193; cycle of 205, 253; performance 34, 248; standard method (SMM)
loop 453–4, 454cs; machine 409, 410, 411; 163; environmental 359; laser 385, 388cs;
organisation 16, 197, 440; project 449–50; client satisfaction 424
shared 326 MEAT (most economically advantageous
lease back 70 tender) 99
LEED 244, 354; carbon saving 362; compare meetings136, 223 228–9, 228–9cs, 338;
with BREEAM 358–60; sourcing 402 evaluation 458, 462
legacy 350, 388, 478; Olympics 44cs, 367–8cs method statements: H&S 321, 328, 339
level playing field 22, 276, 320; procurement 99 method study 255, 256
liability 11; collaborative (BIM) 392; civil 313; millennium development goal 465
client 404, 444; defects 12, 126, 445; design Millennium Dome 244
148, 154, 321; legal 116; loss 295; product Mobius™ communication model 236
102, 329; safety 326; see also insurance modern methods of construction (MMC) 263–4
life cycle 3, 485; asset 439, 447; carbon 349, modular 263–5, 267cs, 371cs, 371; volumetric 156
351, 351; conflict 219–20; costing 11, 47, 77, monitoring: control system 119–20; cost 125;
125–6, 281–3; H&S (CDM) 341; information dashboard 410; environment 368, 380,
(BIM) 391; procurement 46, 83; project 9–12; 380–1cs; H&S 314; information 133;
quality 421; RIBA 57–8, 147; roles 16–18; production 261, 395cs; progress 266cs,
scope 56–7, 113–14; sustainability 351, 361, 269–70cs; quality 429cs; waste 378–9
367; systems 113; value 45–6, 280–1, 288, 292 multiple estimate risk analysis 301, 304
Lifting Operations and Lifting Equipment multi project 181–2cs, 181–2
Regulations see LOLER Myers Briggs 232–4, 233cs; communication
liquidated damages 95 236; conflict 234; problem solving 235;
Local Education Partnership (LEP) 396 temperament 235
Local Government (Contracts) Act 293, 303
localism 371cs, 382, 404–5, 405cs; community National Audit Office (NAO) 194–5cs;
467, 477–8, 480 report 29
logistics: JIT 258; moving 459; package 266cs; National Building Specification (NBS) 163, 391
site 83, 196cs, 409cs; VR & AR 389, 408, National House Building Council (NHBC) 132
409cs natural ventilation 353cs; environmental
LOLER 319, 345 assessment 359, 364cs, 473–4cs
negotiation: principled 221–2, 222cs; BOOT 97,
machine learning 409, 410, 411 424; Myers Briggs 236; pre-application 167;
maintenance: contracts 250–1cs; costs 41, 47, win–win 184, 191, 221, 236, 239, 468
70, 71, 91, 117, 280–3; design 322; HSF net present value (NPV) 67–8, risk 282, 302;
12, 137, 239cs; information management whole life costing (WLC) 488
Index 495
New Engineering Contract (NEC) 85, 88, 90cs, photovoltaic 373
104–5, 105cs, 207–8cs, 238, 239cs, 404–5cs planning: appeals 47, 156; applications 62, 167,
no blame: attitude 442; contract 424; culture 87, 305; community objection 168cs; gain (section
165, 207–8cs, 239cs, 301, 328, 448, 462 106) 72, 352; qualification 297; regeneration
novate 100 179; see also development control
pollution 116, 340, 348, 357, 371, 469;
objectives: client 18, 35, 37–8; mutual 190, BREEAM 360
191–2; project 38–40; SMART 37 portfolio management 4, 15, 485
obsolescence 78 post occupancy evaluation (POE) 439, 442cs,
Offices, Shops and Railway Premises Act 449, 452
(1964) 312 power: culture 187; leadership 201; learning 455;
offsite manufacture 13, 156–7, 246cs, 259cs; of communications 385; position 201, 209;
productivity 263, 264, 271; automated 385, supply chain 184, 193; stakeholder 48–9, 184;
387, 402cs worker 256, 341
Ohno 253, 7; wastes 254–6, 255cs, 259 PPP 93–8, 98cs; challenges 97cs, 98cs; models
OHSA 18001:1999 312 95; procurement 95–6; scope risk 93
OJEU 99 predictive analytics 405
Olympics 2012 367cs, 447; Delivery Authority prefabrication 75, 156–7, 157cs, 269, 285; see
367; see also legacy also offsite manufacture, modern methods
opportunity savings 71 preferred bidder 88,
option appraisal 69; see also appraisal present value 67, 72; see also net present value
organisation: centralisation 177–80, 179cs; (NPV)
change 178–9cs; 208; culture 183, 430; H&S price: capital 47, 79; market 36, 129; quality
314–5; inter- 180–3; interdependency 469 price 98, 100, 101; tender 341, 474;
organisational structure 172–6; chain of transparent 85
command 172; matrix 174–5; project 174–5, PRINCE2 5–7
seconded matrix 174–5; span of control principal contractor 12, 207–8cs, 315, 319–20, 485
173; specialist project 175; Special Purpose principal designer 314, 319–21, 442
Vehicle (SPV) 85, 94 Private Finance Initiative see PFI
Ouchi 430 process mapping 250–2, 250–1cs, 447, 453
outsourcing 81, 250–1cs procurement 486; analysis 83; consultants 99–100;
ownership 480–1 definition 81–2; ethical 382; Gateway 46;
innovation and waste 92–3, integrated 83–6,
pact 29; client 190, 424cs 91; lean 84; life cycle 10; management 82, 91;
pain–gain incentives 87, 91, 192 meeting 116; programme 115, 124, 161–2,
partnering 190–4; agreements 165; and conflict 172; quality and price 98, 101–3; risk and value
233; contract 194–5cs, 257cs; culture 192, 86–8; social value 85–6cs; sustainable 348,
194cs, 238, 394cs; customer focus 195, 196cs; 367–8, 367–8cs
employer 457; framework 192, 193, 193cs; procurement types 84–6; construction
model 191–2; tools 192–3; TQM 434; see management 85, 87, 88, 92, 104, 148, 148cs,
also PPP 266cs, 484; cost plus 87, 88; DBFO 10, 47,
PAS 2050 351 70cs, 71, 88, 148, 299; design and build 85,
Passivhaus 357, 357–8cs 86cs, 88, 89, 90, 92, 93, 100, 103, 145, 176cs,
payback: method 66–7, 68; risk premium 299, 287, 424; design and manage 87, 88, 148;
302; sustainable buildings 79, 350, 352, measured term 107, 280; prime contracting
353cs, 358, 373, 374 87–8, 93, 106, 468–9cs; traditional 10, 16,
performance: benchmarking 248–50, 247–8cs, 17, 57, 81, 85, 87, 88, 91, 92,116, 122cs, 147,
458; best in class 209, 249, 271; measuring 148–9, 153–4cs, 239cs, 264, 288, 300, 487;
246–8; quality 435, 254; specification 57; 96, see also PPP; PFI
433cs; world class 196–198; see also KPIs production control 329
personality: clash 230, 231; indicator/type productivity 246cs, 245–6, 270–1; conflict 218;
232–4, 233cs; profiling 239 costs comparison 265cs; digital 385, 410, 414;
PESTLE factors 73–76, 81; business health and safety 186, 460; improvements 161,
environment 186, 485 193cs, 254cs, 260; integration 386; lean 263;
PFI 94–5, 97, 97cs, 196cs, 485; competitive modern methods263–5; measuring 248–50;
dialogue 96; contract 93; DBFO 87, 200; layouts 257–8, 462; learning 193; people 214,
handover 441; quality 98cs; SPV 94; see 222, 232; quality management 427; reports 27,
also PPP 29–30; stress 311; value 280, waste 243
496 Index
product safety/liability 329 regeneration 64, 65, 283, 474; (act) 29; policy
programme (time schedule) 121, baseline 74; projects 85–6cs, 178–9cs, 368
121–2, 123; construction time 123–4, 123–4cs; relationships 107, 150; adversarial 184, 188, 247;
control 122–4, design 122; master 11, 124, collaborative 93, 172, 193; contractual 104;
146; monthly 123; multiple project 181–2cs; customer 212, 435cs; inter-personal 190, 429;
procurement 115, 123, 162; 318–19; slippage long-term 53, 91, 191, 195, 394, 417; people
122cs; stage 123; trades dated 266; weekly 123 60; professional 202–3cs; social 213, 217,
programme management 4, 6, 16, 134, 486 471; special 435cs; supply chain 2, 183–6,
project 4, 486; brief 34–5, 59; charter 191, 436; 238, 430; team 23, 103; them and us 17, 39,
complexity 23, 24–5cs; constraints 36–7, 433; trusting 106, 207–9cs, 271; vertical and
40; controls 118–20; culture 186; definition horizontal 155, 387
55–6, 57–8, 59; ethics 20; execution plan reliable: benchmarking 191; conditions 264;
(PEP) 115; feasibility 65–6, 73; life cycle environments 42; information 11, 47, 49, 130,
9–12; objectives 38–40; portfolio 4, 15–16; 137, 252, 282, 395; model 12; monitoring
risks 116–18; scope 56, 96, 110, 113–114; 368; process 98, 260; structure 19
stakeholders 47–9; strategy 110–12; structure renewable energy 43, 185, 353, 360, 372, 373,
172–7, 176–7cs; success factors 27–30; 376, 474, 475; generation 350, 352, 353cs;
systems 112–13; team roles 16, 19, 207 sources 149, 373, 441; technology 362, 373–4
project bank account 139, 296 renewable heat initiative (RHI) 373–4, 374cs
project evaluation 452; continuous 458; and repeat work 53, 436; partnering 190–1
review (PERT) 294, 304 requests for information (RFI) 165, 225, 395
project execution plan (PEP) 115 requirements management 28
project information model (PIM) 400–1 resilient: buildings 476cs; design 473;
project management 14–16; code 7; definition community 481
4, 14 resource: management 25, 250, 277, 301;
Project Management Institute 5, 14 enterprise resource planning (ERP) 395, 461
project manager 486; competencies and skills responsible sourcing 360, 368–71
17–19; definition 4; ethics 20–3, 21cs, 22cs; respect for people 247, 367
executive 15; key tasks 19; leadership reviews: benefit 449, 451; design 136, 144, 167,
project sponsor 16, 48, 487 278, 395, 447, 448; Gateway 17, 34, 45–7,
project board 6, 48, 84 278, 284; occupancy 439, 442, 446,449, 452;
Provision and Use of Work Equipment post-project (PPR) 40, 449–50, 455, 462
(PUWER) 319, 345 rework (waste) 419–20cs; design 154; Ohno 256
public authority 485 RIBA plan of work 17, 55, 144, 146–7, 169, 288;
public private partnership see PPP project definition 57–8; with BIM 397–8
public protection 339–40 RIDDOR (Reporting of Injuries) 309–10cs, 317,
public sector comparator 303 318
purchasing rules 99 right first time 1, 261, 225, 426–7
risk: attitude 89, 298–01, 303; behaviour 89,
qualitative risk 276, 294, 301; value 291 324–5; categories 12; control 275, 276, 305,
quality: accountability 422–3; assurance 330–3, 335; design 89, 118cs, 154; evaluation
429–30; control 428–9; checking 253, 276, 305; identification 115–118, 138, 319;
427, 453; circle 427; competitiveness 432; opportunity 301; pure and speculative 293,
communications 252, 268cs, 430; components 295, 297, 300, 301, 302, 330
425–6; constraints 38; costs 432; culture risk allocation 58, 59, 78, 83, 84, 93, 102, 116,
430–4; defects 132, 150; improvement 131, 172, 194, 298, 299, 303
339, 427, 431cs, 432, 433cs; management risk assessment 64cs, 276, 296–8, 314, 325, 345;
systems 427; planning 131–2, 434, scorecard health and safety 330–3, 332cs
100–2; threshold 100–1, 474–6; total quality risk homeostasis theory 324–5
management (TQM) 432–4, 433cs, 434cs risk management: acceptable risk 293, 328, 331;
quantitative appraisal 78; assurance 252, 329; best managed 239, 299; decisions 55, 76–8,
risk 294, 296; social data 406–7cs; VFM 284 317cs; definition 296–4; expected monetary
quantity surveyor 17, 18, 126, 177, 290, 398, value (EMV) 294, 297, 303, 306; process
445, 487 296–8; residual 299, 331, 332; response 77,
78, 299–301; techniques 301–5
radio frequency identification (RFID) 396 risk register 11, 43, 78, 115, 296, 297, 298, 303
recycling 368cs, 374–6, 377–80 risk transfer 43, 115, 131, 191, 295, 297, 298cs;
re-engineering 29, 247, 268 see also health and safety
Index 497
robotic 410, 411cs Special Purpose Vehicle (SPV) 85, 94
roles 16–18, 176–7cs, 230–1; architect 73, 92, specification: BIM 398; outline 125; output 46,
136, 147, 177; Belbin 230–2; client 29–30, 367; performance 57, 95, 96, 283, 305, 399,
43, 60, 319–20; design manager 61, 148, 169, 418, 433; prescriptive 98; product 132, 443
176; health and safety officer 177, 327; lead stakeholder 47–53; community 21, 285, 469;
designer 161–2, 286, 228, 286, 485; package conflict 49–50; engagement 50, 79, 348, 371;
manager 136; procurement manager, 177, external 48, 52cs; interest 149, 275; internal
193, 251; production manager 177; quantity 51cs; management, 49–53; mapping 48, 53;
surveyor (QS) 18, 73, 126, 177, 286, 290; needs 278, 285; pressure 50cs; values 65, 276
section manager 121, 136, 177; setting out standardised design 158; components 264–5,
engineer 177, 429 267cs
root mean squared technique 304 stewardship 369, 370, 465, 471, 474; FSC
certification 368
safe: design 321, 322, 324; construction 321; strategy: stage 11, 110; construction 30, 243
environment, 151, 367; workplace, 313 straw bale modular panels 371cs
safety representation 317, 317–18cs, 345; stress: and conflict 218–9; 218cs; work-related
committee 338, 341, 343 311cs
safety supervision 338–40 success: criteria 56, 115, 198; factors (CSF), 27,
Safe Work Australia Act 312 28, 29–30, 197, 198, 248
SAVE international 227 supplier: approved 158; behaviour 25;
scope: change control 57, 88, 96, 297; development 84; management 25
management, 56–7, 60, 96, 97; planning and supply chain: AI 410; alliance 185cs;
definition 56, 57, 112, 114, 388; product 55, integration 400
57, 96, 113–14; project 113–14 supply chain management (SCM) 84, 183–6; ten
self-assessment: Belbin inventory 230–2; commandments 185cs
EFQM 197–9; KPI 249, Myers Briggs 232; supply systems 184
quality 430 structural informational models (SIM) 391
Self supervision 337, 339, 341 sustainability: approaches 363–4cs; community
Semi Automated Mason (SAM 100) 411cs 477–8cs; Considerate Constructors Scheme
sensitivity analysis 68, 138, 283, 294; appraisal (CCS) 474–5; corporate social responsibility
71, 302, 304 (CSR) 353; criteria 356; development
service quality 138, 425, 431, 436; box 424–5 control 352–3; drainage system (SUDS) 375;
SERVQUAL 424, 426 ecological 76; ethics 151–2cs; FM 460; onsite
Severn bridge 269 365–6; procurement 367–8; scope 348–51;
simultaneous engineering 146, 148 social 364–5; sourcing 368–70; targets
Singapore (digital twin) 411–12cs 350–1cs
site layout 164, 409cs sustainable building 475cs; definitions 31, 348,
site waste management plans (SWMP) 377–9 460; Green Construction Board 351; high-
skills: inter-personal 2, 3, 19, 220; certification performing 475cs; reporting system (SBRS)
scheme (CSCS) 226, 328, 334 359; standards 419cs
Skye Bridge 117, 422cs sustainable construction 76, 92, 286, 474, 475 9;
small and medium enterprises (SME) 308, 309, see also Considerate Constructors
322–3, 341, 381, 424, 456–7cs sustainable design 59, 155, 161, 349, 352, 353,
SMART 37 377, 474, 481; CEEQUAL and Green Globe
smart: asset 392; buildings 388, 460, 467, 473; 355–7cs; environmental impact 46, 166,
city 388, 397; designs 392, 473; system 388, 247, 355, 381; localism 480; local renewable
473; technology 467, 476 energy 353cs; responsible sourcing 370cs; see
social capital 469, 471, 480cs also BREEAM and CSR
social data 406–7cs sustainable drainage system (SUDS) 375
social media 137, 225, 385, 406, 407 synergy 12, 88, 192; project 193; team 9, 39,
social responsibility 82, 363, 450, 466, 469; see 172, 187, 214, 229, 230, 231, 431, 435
also CSR systems 112–3, 386, 473; future city 467;
social value 82, 85–6cs, 263, 278, 305, 450, improvement 458; 462; open 4, 112, 179, 412,
469, 478 449; subsystems 113
soft landings 440, 446–8, 452, 462;
government’s soft landings scheme (GSL) Taguchi 428
447–8 target zero 376cs
span of control 173 task responsibility matrix 114
498 Index
tax: breaks 138, 149, 169; capital allowance, value for money (VFM): procurement 80–3;
282; incentives 73; landfill 74, 97, 377 PPP 94–5; risk and value management 76,
team: Belbin roles 219, 230–1; building task 275, 278, 282, 284, 305; whole lifecycle cost
187; cohesive 213, 214; communication, (WLC) 47
430–1; culture 209, 231; development 214; value management 276; and design 298–9;
integrated 207–8; synergy 9, 39, 172, 229, facilitator 285, 287, 291, 292; FAST diagram
230, 231, 241, 431; thinking 231; working 289–91; functional analysis 286, 287–9, 376
213–15, 431cs value management process 283–5; standard 284;
Temporary and Mobile Sites Directive 313, 345 workshop 286–7, 292–3
tender: adjudication 301; bidding theory 89; value stream 92, 252; mapping 253, 256, 259, 271
competitive, 51, 132, 208, 238, 276; cost 396; virtual assistants (VA) 410
evaluation 299; OJEU rules 99; period 251; virtual reality (VR) 407–8, 409cs
preferred bidder 281; process, 53; restricted visualisation 60, 223, 385, 395, 412
99; selective 192 visual management 257–8; model 393, 398
tender price 25, 87, 101, 117, 125, 126, 138
Tenders Electronic Daily (TED) 99 warranty 11, 102, 134, 443, 420, 445
theory: goal setting 458; Herzberg’s 423; waste: construction 243, 357, 365, 420cs,
multi-attribute value 302; of constraint 432; design 153, 154–6, 169; management
(TOC) 294–5; risk homeostasis (RHT) 324; contract 97cs; management plans 302, 377–9;
Z (Ouchi) 430 reduction 3, 83, 150, 243, 263, 270, 285, 348,
top management: commitment 26, 271, 323,333, 368cs, 372cs; seven wastes 255–6
342, 347, 421; support 28, 325 welfare: health 312, 319, 321, 345; safety 326, 395
total quality management (TQM) 432–4; culture wellbeing 466, 480, 480cs
434cs; tools 453 whole life cycle 27, 81, 404; costing 47, 153,
trade union representation 317–18 281–3; risk and value 86, 280–1
training 375, 381; safety 222, 326, 334, 339, 341; win–win: negotiation 236, 239; situations 51,
supply chain, 365, 394, 400, 414, 478; user 220, 454; solutions 191, 221, 468
361, 364, 365, 394, 443, 447 wind energy 373
transactional: cost 106; model 225 Wolstenholme Report 2, 30, 185, 280, 283,
transformational: change 44–5; leadership, 351–2, 418, 421, 453
203–4, 205–6cs Womack and Jones 252
Treasury HM 45, 206 work breakdown structure (WBS) 57, 114, 121,
trust: building 82, 184; contract 105–6; lack of 138, 260
17, 39, 190, 271; partnering 13, 104; public workflow process 386, 434; tool 164
22; mutual 105, 106, 193; relationship 106, Working at Height Regulations (WAHR) 319, 345
107, 190, 207; trustworthiness 234 workplace control 338–9; ergonomics 255;
Tuckman 214 illness 218, 308, 310, 311, 328; improvement
339; inspection 338; layout 256, 262, 354,
uncertainty 50, 299; business 116, 271; project 409cs
278, 295; see also risk workshops: stakeholders 97; value management
unitary payment 98 286–7, 292–3
United Welsh Passivhaus, the 357–8cs; see also work study 248
Passivhaus world class performance 196–7, 199cs
unpredictability: quality 250; stakeholder Worldwide Responsible Accredited Production
294, 333 scheme (WRAP) 370, 470–1cs
urban design 166–9; designer 167; poverty 368
user interface technologies 406 zero accidents 326, 328, 331
zero carbon 348, 354, 358; case studies
value added 80, 92, 129, 193, 199, 217, 271, 277, 357–8cs, 368cs, 372–3cs, 376cs; target 349,
278–9, 290, 291, 297, 469 350, 362, 382
value analysis 144, 146, 172, 277, 284, 375 zero defects 40, 420–1, 424, 427
value chains 149, 247, 421 zero energy 82
value engineering 92, 125, 150, 154, 246, 271, zero tolerance 335; see also safe; safety
277, 279, 284, 285–6, 398, 402, 449, 450, 454 supervision
value enhancing 10, 151, 285; ethics 151–2, zone: building 266; exclusion 331; fire 444;
152cs service 440

Construction Project Management An Integrated Approach by Fewings, Peter Henjewele, Christian

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Construction Project Management An Integrated Approach by Fewings, Peter Henjewele, Christian

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Construction Project Management

Construction Project Management: An Integrated Approach is a management approach

Christian Henjewele has extensive industrial experience in the construction industry.

Peter Fewings and Christian Henjewele

ISBN: 978-0-8153-5864-0 (hbk)

Typeset in Times New Roman

List of illustrations xvii

Introduction: an integrated approach 1

1 Project life cycle and success 9

2 Building the client business case 33

3 Project development and evaluation 55

5 Planning and control 110

6 Design management and value 143

7 Project organisation and leadership 172

8 Engineering the psycho-productive environment 212

9 Engineering the production process 242

10 Managing risk and value 274

11 Project safety, health and the environment 308

12 Sustainable delivery of construction projects 348

13 Digital construction 385

Digital construction strategies 386

15 Project close out and systems improvement 439

16 Conclusion: future construction 465

Peter Fewings and Christian Henjewele

Integrated project management

Peter Fewings and Christian Henjewele

Designing and delivering construction projects is getting more complex, caused by a

Roger Flanagan Past President of the Chartered

Project management process and product

Structure of the book

Definitions, standards and codes

Body of knowledge (BoK) methodologies

Corporate programme management

Change control Business case

Peter Fewings and Christian Henjewele

• define integration and the construction project life cycle

Project life cycle

Figure 1.1 Life cycle of construction projects

The common elements of project management, as defined above by the International

Figure 1.2 The three dimensions of project management control

Case study 1.1 King Shaka International Airport, Natal

Programme and portfolio management

Project team roles

Design team leader Construction team leader

QS Architect Engineer Specialist Specialist Specialist

Design co-ordination Construction co-ordination of supply chain

Figure 1.3 Project structure diagram: executive PM model

Project manager skills and functions

Life cycle stage Role Client Leader

Inception 2013 plan of work:

1 Guide and advise the client.

Ethical project leadership

Case study 1.2 Ethical contracting

Case study 1.3 Affordable rural housing

Case study 1.4 Construction complexity

Complexity Organisational Resource Technical Combined index

Difficult technical solutions make a lot of difference to construction projects as resources –

Project management maturity models

• strategic factors critical in the early stages of the life cycle

Table 1.5 Selected research into factors for success in projects

Report and title Broad findings

Client Technology and

Client Correctly trained

Case study 1.5 UK study on construction industry

Case study 2.1 Testing the feasibility of new student

Case study 2.6 Internal stakeholder relocates

Case study 2.7 External stakeholders for a new