Paul Wilson discusses how to unlock the value in procurement.
The recent move by London Underground to appoint specialist trades directly, by-passing main contractors, is another indicator that clients are really starting to challenge the status-quo of current procurement models. The most common models with consultants at the front end, followed by contractor engagement downstream and then the specialist trades even further ( if at all) beyond that are not delivering the outcomes that clients need.
There is no one procurement route that fits all and the permutations are pretty much endless (nearly 15,000 at Prof. Will Hughes last count); but an "informed client" defines the outcomes they want and then determines a procurement strategy that can deliver. Any procurement solution will deliver a tangible output such as a building, but only an informed procurement strategy will get the outcomes and benefits that the client business case demands.
At Provelio, we are dealing with growing numbers of clients who want to procure differently in the future. They are critical of construction management, traditional contracting and design build and are looking at how they can unlock the real value in their procurement solutions. The Government's Construction Strategy 2025 is adding weight to the debate and this is a good thing. It challenges the industry to think how the targets could be achieved rather than discussing how difficult (or impossible) it is.
We are now moving from Re-thinking Construction to Re-thinking Procurement and I reckon that shows signs of moving from the grand strategy outlined by the likes of Latham, Egan and more recently Peter Hansford to a point of actually trying new ideas. Have a read of the article in Construction Enquirer http://www.constructionenquirer.com/2014/04/08/main-contractors-dumped-from-330m-tube-stations-revamp/. You might not agree, but it does make you think!
by Paul Wilson
Managing Director at Provelio
| 23/04/2014 09:09 |comments powered by Disqus