construction journal february march 2015

Construction Journal

February/March 2015rics.org/journals

Putting managers to the testAre certain personality types more susceptible to stress?

PG. 20

Reconciling differences Why knowing local markets is key to project procurement

PG. 12

Embracing innovation Understanding the importance of data collection

PG. 6

Sustainable supply chainsMeeting the requirements of Construction 2025

RICS CONSTRUCTION JOURNAL

A DV E RT I S I N G

2 F E B R U A R Y/ M A R C H 2 0 1 5

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CONTENTS

F E B R U A R Y/ M A R C H 2 0 1 5 3

contentsCONTACTS

While every reasonable effort has been made to ensure the accuracy of all content in the journal, RICS will have no responsibility for any errors or omissions in the content. The views expressed in the journal are not necessarily those of RICS. RICS cannot accept any liability for any loss or damage suffered by any person as a result of the content and the opinions expressed in the journal, or by any person acting or refraining to act as a result of the material included in the journal. All rights in the journal, including full copyright or publishing right, content and design, are owned by RICS, except where otherwise described. Any dispute arising out of the journal is subject to the law and jurisdiction of England and Wales. Crown copyright material is reproduced under the Open Government Licence v1.0 for public sector information: www.nationalarchives.gov.uk/doc/open-government-licence

Published by: Royal Institution of Chartered Surveyors, Parliament Square, London SW1P 3AD T +44 (0)24 7686 8555 W www.rics.orgISSN: ISSN 1752-8720 (Print) ISSN 1759-3360 (Online)

Editorial and production manager: Toni Gill

Sub editor: Gill Rastall

Senior designer: Wasim Akande

Creative director: Mark Parry

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Design by: Redactive Media Group Printed by: Page Bros

C O N S T R U C T I O N J O U R N A L

Editor: Robert Mallett T +44 (0)20 7695 1533 E [email protected]

The Construction Journal is the journal of the Project Management and Quantity Surveying & Construction Professional Groups

Advisory group: Craig Abraham (Evolution5), Gerard Clohessy (EC Harris), Christopher Green (Capita Property and Infrastructure), William Hall (Lendlease), Vytas Macenas (Faithful+Gould), Andrew McSmythurs (Sweett Group), David Reynolds, Justin Sullivan (Adair Associates), Tim Fry (Project Management Professional Group Chairman), Alan Muse (RICS)

Construction Journal is available on annual subscription. All enquiries from non-RICS members for institutional or company subscriptions should be directed to:

Proquest Online Institutional Access E [email protected] T +44 (0)1223 215512 for online subscriptions or SWETS Print Institutional Access E [email protected] T +44 (0)1235 857500 for print subscriptions

To take out a personal subscription, members and non-members should contact Licensing Manager Louise Weale E [email protected]

4Chairmans column

5Update

6Embracing innovationVasileios Vernikos examines the importance of the effective management of data in achieving future supply chain sustainability

8Roadmap to reliabilitySustainable supply chains are all about action, interaction, relationships and results, argues Glyn Race

10Only the best will do David Whysall outlines why securing exceptional performance is vital for clients if they are to thrive in the increasingly competitive global construction market

12Reconciling differencesIn procuring infrastructure projects around the world, understanding local market conditions is key, suggest Richard Graham, Shy Jackson and Norman Kerfoot

15Inside informationGetting the right data is the first step in making better decisions about the delivery and operation of infrastructure assets, says Dave Monswhite

16Reaping the benefitsLiam Brady and the One Team assess the effectiveness of BIM technology on the Manchester Central Library restoration

20Put to the testMatthew Maslen reports on stress in construction and its relevance to all members of the project team

22Striking a balanceChanges to the employment tribunal process has shifted the focus to avoiding claims, explains Helen Crossland

25Resolving disputesJacqui Joyce discusses why RICS has published new guidance on mediation

26Legal Q&ALegal experts answer common queries

Front cover: Alamy

Construction Journal

February/March 2015rics.org/journals

Putting managers to the testAre certain personality types more susceptible to stress?

PG. 20

Reconciling differences Why knowing local markets is key to project procurement

PG. 12

Embracing innovation Understanding the importance of data collection

PG. 6

Sustainable supply chainsMeeting the requirements of Construction 2025


C H A I R M A N S C O L U M N

4 F E B R U A R Y/ M A R C H 2 0 1 5

S

CHAIRMAN'S COLUMN

Tim Fry is Chairman of the RICS Project Management [email protected]

Building stronger links along the supply chain

Tim Fry sets out ways in which the construction industry can work toward supply chain sustainability

Supply chains are key to all industries and projects. If they work well, projects deliver. But how do we make sure that they are sustainable?

I believe that each component needs to take responsibility for becoming the supplier of choice, whether that is an individual, business unit or a firm. This model is flexible because components can align themselves to others, and by being flexible it can adapt to an ever changing marketplace.

By making sure that the following aspects are covered, RICS members and their firms are giving themselves a fighting chance of being successful, profitable and therefore sustainable.

Provide a quality service: Firms are teams of individuals working together via clear processes to achieve a common goal. Each individual, for instance a RICS member, needs to work to the best of their ability, apply best practice, learn the lessons that our work offers us.

Consistency: As in sport, the most consistent team wins. It is no use being very good one week and not the next; a solid performance is required every day in every task.

Targeted marketing: Firms have finite resources and cannot win every commission or contract on offer. Better results will be obtained by putting your best foot forward on the ones where you have a competitive advantage.

Trend analysis: Track performance of teams and look for variations. Encourage those who outperform their peers and share their winning formula. Analyse the underperformers and help them to improve. Performance manifests itself in various metrics e.g. percentage of bids won, repeat commissions. Use data to spot a trend and even more importantly take action.

Product shaping: As clients evolve, so do their needs and consequently what they seek to buy. The current trend is toward buying whole life advice and project management expertise as opposed to only capital build knowledge. Are you prepared for the new challenges? Do you need to buddy with others to convert a bid into a sale and income stream? Best start talking now.

Marketing and selling: These are two separate activities. One involves the research, preparation and proposal building and the other the conversion. Both are required to win work.

As you may have surmised, my view is that it is up to the components of a supply chain to step up to the plate to ensure that they have a robust pipeline of work, are financially sustainable, with good products that clients want and perform consistently to a high standard. If these building blocks are all in place then supply chains, which are simply linked components, will also be sustainable.

Underpinning all of the above are RICS standards in the form of ethics and information papers and guidance notes. By applying this knowledge consistently our members will stay employable and employed for years to come. b

Each component of the supply chain needs to take responsibility for becoming the supplier of choice


F E B R U A R Y/ M A R C H 2 0 1 5 5

U P DAT E

UPDATE

12 February, LondonNEC3 contracts: principles and processes http://bit.ly/1zij9zg

24 February, LondonResidential building surveys workshop http://bit.ly/1ytmlZZ

4 March, LondonBIM implementation and management: purpose, benefits and challengeshttp://bit.ly/15ZFnvf

TRAINING

In brief...

The RICS Property in Politics campaign is having a major impact as policies are drawn up for this years general election.

Over the past eight months, RICS Property in Politics: Driving economic growth and building better communities report (http://bit.ly/1C4g8pM) has led the conversation between property professionals and the political parties about building a vibrant property marketplace in the UK.

Behind the reports 12 recommendations to the next government was the weight of expertise drawn from the insights of more than 500 chartered surveyors and 273 organisations.

RICS brought together members, firms, industry leaders, parliamentarians and policy-makers at panel discussions throughout the political party conference season, supported by GVA, Barratt Developments and Rider Levett Bucknall.

Nick Raynsford, Chair of the All Party Parliamentary Group for Excellence in the Built Environment joined the Property in Politics panel at the Labour Party conference, while

Stephen Gilbert, Parliamentary Private Secretary to Energy Secretary Ed Davey took part in the Liberal Democrats discussion.

Housing and Planning Minister Brandon Lewis joined a distinguished panel at the Conservatives conference, joining more than 120 senior members and industry partners. RICS President Louise Brooke Smith hosted the event before discussing housing, planning and communities with a panel that included Communities Secretary Eric Pickles.

The first outcome from the party conference launches is a heightened interest from politicians in the views of RICS. One-to-one discussions have taken place with Pickles and Lewis as well as Shadow Housing Minister Emma Reynolds and Shadow Business Minister Iain Wright.

The successes so far have seen Housing Zones Prospectus announced by HM Treasury, rolling out in 2015. The Labour Party has adopted New Homes Corporations that mirror RICS development delivery units

Parties pick up industry ideas as election agenda hots up

RICS Dispute Resolution Conference 28 January, LondonPractical contract, risk and relationship mechanisms for dispute avoidance or early intervention.n www.rics.org/disputeconference

Mediation roadshowFebruary, various UK locationsFollowing the launch of the RICS Mediation guidance note in January, find out your obligations to clients who are involved in disputes and the advice you should provide before taking matters to court. n www.rics.org/mediationroadshow

Conferences and events

RICS BIM Conference 201512 February, LondonBringing together more than 300 players who are developing and implementing building information modelling processes collaboratively in their projects, this event will include practical guidance on the lead up to the 2016 deadline.n www. rics.org/bimconference

Project Leadership conference24 February, LondonThis RICS and APM conference will examine the important elements, approaches and strategies that contribute to mitigating the major risk factors in project investment, construction, development and operations, to avoid costly failures. n www.rics.org/leadershipconference

and included four Property in Politics recommendations in its Lyons Housing Review. Labours Independent Armitt Review of Infrastructure also uses RICS expertise and proposals for delivery plans. The Liberal Democrats have supported a planning revolution to support neighbourhood planning.

Property in Politics construction recommendations include the implementation of single construction finance hub, which is now being discussed with the Department of Business, Innovation and Skills. Meanwhile, the Labour Party has voiced support for National Procurement Framework, and RICS is working with the Construction Industry Council on the proposal.

RICS concerns over construction skills are shared by the Confederation of British Industries and are rising up the political agenda.

On infrastructure, RICS is collaborating with partner organisations including Infrastructure UK to prioritise regional infrastructure and Brooke-Smith hosted a pre-Autumn Statement infrastructure briefing for Chief Secretary to the Treasury Danny Alexander.

n Read more and sign up to support the vision at www.rics.org/propertyinpolitics


S U P P LY C H A I N M A N AG E M E N T

6 F E B R U A R Y/ M A R C H 2 0 1 5

Embracing innovationVasileios Vernikos examines the importance of the effective management of data in achieving future supply chain sustainability

Improving efficiency in construction has been on the government and industry agenda for many years. This process began with the 1962 Emmerson report, which identified problems that restrained improvements. This was closely followed by the Banwell study in 1964, which focused on contractual management and promoted early contractor involvement and increasing collaboration across the supply chain.

The Egan report in 1998 stood out from previous reports in focusing on innovation and, although some of the same issues were highlighted by Latham in 1994, one could argue that many of the points raised are still troubling the construction industry today. Drastic transformation was recommended rather than incremental improvement.

In recent years, former UK government Chief Construction Adviser Paul Morrell initiated a technologically driven transformation of the construction industry with the building information modelling (BIM) initiative, which was embraced by his successor Peter Hansford in the Construction 2025 strategy.

Nevertheless, academics and industry sceptics are still debating the construction industrys ability to collect and manage data. Construction is not, as it stands today, a high-intensity, data-driven sector, especially when compared to finance, retail, marketing and advertising.

Aiming to catch up, over the past two years the BIM initiative has driven zealous efforts by some construction firms to centralise and manage data. Big data, however, can hide as much as it

The most important objective of putting together these thought leadership activities would be to raise awareness regarding the benefits of data-driven supply chain, and the integration of BIM and other initiatives, such as offsite construction, enabling and empowering individuals to promote innovative techniques. Essentially, this would lead to the creation of an information exchange community serving as a platform to encourage rethinking and challenge the status quo.

Aligning strategiesThe topic of procurement throughout Europe was raised at several stages of the workshop. There was a consensus that there is a need for further work to align strategies across the supply chain. Many participants emphasised the importance of early engagement, particularly in enabling offsite. But there are still issues with these approaches under current European models. BIM was described as the enabler for new approach to procurement, and there are currently several initiatives across Europe hoping to address the issues with EU procurement models and BIM, which it was agreed could allow further actions to be taken.

Another point discussed was the governments approach to offsite, and

reveals. Modern construction firms are diversifying their offering and moving toward a more programme and project management approach, delegating large chunks of their projects to specialist contractors.

Playing the role of the coordinator inherently requires management skills. With the digitalisation of the construction industry these management skills are increasingly focusing on data, even if a plethora of construction firms have yet to understand its value. It appears that some construction professionals still feel the sole aim is to manage data in an effective way, until they can offload it onto the next party.

Forum for discussionTo discuss this question in greater depth CH2M Hill, Rail Champions and RICS launched a series of workshops and round table discussions on the topic of innovation and supply chain sustainability.

The key point that emerged was that the data-driven integration of the supply chain must not be perceived as a fixed vision, but rather a direction of travel. The discussion of standardisation issues included crucial themes such as products, designs and processes, with the ultimate aim of convincing the industry of the practicality of using Meccano/Lego type components.

The end goal, according to the round table participants, should also include the development of product libraries, component focus design and mass customisation, focused on library-style components, but with a project-specific approach rather than having a specified target for a percentage offsite. This can be only accomplished by having a project-specific offsite plan, it was believed.


F E B R U A R Y/ M A R C H 2 0 1 5 7

setting a minimum offsite percentage per project. Some participants believed that a precise percentage of offsite should be mandated by government similar to the BIM Level 2 mandate. Others thought that it would be impossible to define offsite and, therefore, to apply a precise percentage per project. In addition, offsite may not add value to all types of projects, and therefore it may not be the best option available.

Nevertheless, all agreed that offsite should be connected with the primary government strategy, and has great export potential not just on offsite solutions and products, but also on offsite expertise.

DigitialisationIt is evident that text is not up to the job any more, because it cannot leverage the metrics or aid rapid decision-making. Physically grouping and regrouping data and tabularising it, rather than discussing and describing it, allows engineers to identify and comprehend trends or obstacles faster. The firms that embed this ideology in their ethos will naturally develop a competitive advantage.

With the digitalisation of construction data it is expected that advanced automation in design, manufacturing and assembly through BIM will increase. The UK government aims to achieve a 33% savings in construction costs and is to implement BIM in all its procurement contracts by 2016 in the expectation that this will contribute to the target. Many would consider this to be a significant challenge if achieved solely through a single innovative initiative in such a short time.

Such ideas do find expression in some quarters in construction firms today, but by and large they live on empty words. In contrast. firms in finance, marketing and retail have found a common philosophy. It is revealed in the way they act, with the central tenet that more data is better than less.

Such dataism is to be expected in an era that glorifies quantification.

Most engineers would prefer a chart over a report. More than that, it reflects an economic orthodoxy that sees data as key to increased efficiency. With the Construction 2025 strategy aiming to significantly reduce not only cost but delivery time, emissions and simultaneously increase exports, this gives support to the idea that not just producing but also managing data is a firms most important purpose.

As data management in construction is becoming a critical business issue, there is a growing need for integrating environmentally sound choices into supply chain management. A robust supply chain is increasingly seen as essential to delivering long-term profitability and has replaced cost, value, and speed as the dominant topic of discussion among construction professionals. b

It appears that some construction professionals still feel the sole aim is to manage data in an effective way, until they can offload it onto the next party

The industry-led roundtable initiative organised by CH2M Hill, Rail Champions and RICS aims to provide specialist yet neutral thinking designed to encourage positive change in the existing supply chain culture.

The first discussion forum, chaired by Martin Rowark and attended by representatives of the infrastructure rail industry, met last September in London. Invited guest speakers, including government officials, infrastructure clients and suppliers, discussed the various problems confronting sustainability (social, economic, ecological).

The next event, to be staged at RICS headquaters in Parliament Square on 11 February, will be chaired by RICS Director for the Built Environment Alan Muse, and will look at ways in which the construction industry can better integrate supply chains. The discussions will focus on the role of BIM and technology, ways in which the industry and government can address serious skills shortages and the part that governments can play in encouraging early contractor engagement and consistent pipelines of work.

One more discussion forum will be held in the summer prior to producing recommendations for the infrastructure transport industry in the autumn.

Mission for change

Image Alamy

Related competencies include Sustainability

Vasielos Vernikos is Head of BIM Development at CH2M [email protected]



8 F E B R U A R Y/ M A R C H 2 0 1 5

Sustainable supply chains are all about action, interaction, relationships and results, argues Glyn Race

Surviving in todays highly competitive markets is not about just being effective. To thrive, lead, excel and innovate, a new mindset is needed. A commercial concern must be able to demonstrate to its customers how it can make a significant contribution to their business.

Any entrepreneurial company should be very capable of delivering technically complex projects. To do this, contractors cannot operate in the same old inefficient ways, forcing each other to give up profits and overhead recovery to deliver at what seems the market price. Better performance in design and construction through increased schedule/programme predictability provides the greatest platform to deliver significant gains for our customer base.

Long-term relationships At VVB Engineering, we have already made the transition to collaborative working, building a mindset on the common characteristics of a high reliability organisation and recently gaining certification to BS 11000. Therefore, the small changes we are recommending, offer a roadmap to better performance and deeper client engagement.

A whole-system approach is needed to bring together coordinated planning and field operations. The adoption of an industry-wide framework such as BS 11000 has proved to be a valuable tool for infrastructure owners and operators seeking a dramatic improvement in programme delivery, management of risk and cost.

Given that the governments Construction 2025 document places great emphasis on the need for future collaborative working across public sector projects, it is clear that the industry must make further progress

down this road. However, even now many Tier 1 contractors sign up to this philosophy without necessarily embracing the true meaning of what is required to deliver projects in this way, and to the benefit of all parties.

Integrated teamwork It was evident from industry discussions at the first sustainable supply chain roundtable held at CH2M Hill last September, that there are well documented problems facing Tier 2 and 3 SMEs as part of contemporary culture. During the meeting, senior

Roadmap to reliability

industry executives examined various ways in which commercial relationships impede the development of sustainable supply chains.

Referring to the recent 32m Blackwall Tunnel refurbishment contract, I argued that greater confidence in project delivery resulted from a one team approach. This undoubtedly helped to embed good habits and enhanced system processes to meet BS 11000 principles.

Clients wish to see evidence of an increasing number of projects that deliver intended business case benefits. Suppliers need to establish common key

Image Alamy


F E B R U A R Y/ M A R C H 2 0 1 5 9

To achieve a sustainable supply chain: b Focus the culture on the hidden benefits of collaboration:

you may get more support, involvement and contribution from people from end-to-end of the supply chain.

b Plan effectively: engage your people with compelling information, share common goals, KPIs and communicate shared objectives.

b Build choices into project plans: offering alternative proposals to clients seeking innovative solutions to long-term programmes of work.

b Complete transparency: choose the plan with the preferred blend of benefits, cost and risk and share these with customers.

b Review performance data, issues management, risk and safety regularly: people then do the right thing more often.

b Manage skillsets and check your ability to self-assure delivery: do not be afraid to re-plan and make necessary changes that reflect what is best for the project.

Key points

performance indicators and targets, and work ever more closely with stakeholders. They also need to work together to identify specific actions for supply chain partners (including the client), which will all help to extend cost certainty to new models of procurement in other sectors (e.g. air and sea, road and rail, power and utilities and tunnelling and construction).

Value creation If Tier 2 contractors are to unlock the full potential of supply chain partnerships, there must be clarity of purpose and total visibility of the clients opportunity

pipeline. Without this vital information, it is impossible to align goals, or build trust quickly between partners.

Therefore, early engagement with the client to set the ground rules is highly recommended, focusing on a clients key objectives: problems, priorities, account potential and knowledge exchange.

Organisations such as Rail Champions can help to inspire deeper client engagement by working with key suppliers and stakeholders at the right times for the right reasons, thereby bringing science and craft together with strategy development. On the Network Rail CP5 frameworks, the client wishes to see efficient resource management and weekly control of project costs. Forging strong team relationships will help gain alignment, ownership and individual accountability for driving performance management.

It is also important to acknowledge that different clients may adopt a different methodology to manage their respective supply chains. This has worked with both Network Rails new generation of prime contractor networks and Transport for Londons Innovative Contractor Engagement tender model.

A new approachSuccessful strategy execution relies heavily on a one team approach, adopting and working to and above current industry best practice. If lean construction principles are eventually

extended from one end of the supply chain to the other, Tier 2s will be able to generate the maximum value for their clients. The intention should be to focus on close control and engagement with customers, and then extend this approach to their clients.

There is a real business need to foster a consistent message, by defining measurable contributions to reflect any target customers identity, and subsequently to demonstrate to them how their most important goals and objectives can be met. This, ultimately, helps to build trust and sustainable relationships.

Collaboration enables the appropriate commercial freedom for continuous improvement in all dimensions of the supply chain. If the right environment is created to function effectively, then each supplier must resource their roles with individuals striving to make a significant contribution to the projects success themselves. b

m A one team approach underpinned work on the Blackwall tunnel

Related competencies include Data management

Glyn Race is a Director at VVB [email protected]



1 0 F E B R U A R Y/ M A R C H 2 0 1 5

Only the best will do David Whysall outlines why securing exceptional performance is vital for clients if they are to thrive in the increasingly competitive global construction market

The past five years have been tough for construction industry supply chain. The impact of the global financial crisis has been felt across all sectors, with clients calling the shots and contractors keen to win work, sometimes at the slimmest of margins.

Now, the tide is turning. In many regions, it is a sellers market: the supply chain has a degree of choice in selecting the major programmes it works on and who it works for.

Global spending on infrastructure currently stands at US$2.7 trillion a year, according to the World Economic Forum, and is predicted to grow to over 9 trillion a year by 2025 (http://pwc.to/1yTM9wP). Projects such as Sydneys 4.9bn North West Rail Link and major airport

attracting private sector investment is a vital part of any infrastructure plan.

Funders require assurance that they will secure a good return on their investment through efficient infrastructure delivery and operation. Regulation in developed economies is tightening, demanding year-on-year improvement in efficiency and customer service. Meanwhile, the expectation from those using infrastructure services has never been higher. Consumers expect first-class service in return for reasonable fares and bills. Clients must be able to demonstrate that they are securing value for money for the consumer.

Clients must think in a radically different way about all aspects of asset investment, delivery and operation. They must go in search of exceptional performance and to do this they must become more informed. Many clients will

programmes in Abu Dhabi, Dubai, Muscat and Doha are all competing to secure a world-class supply chain from a pool that has slimmed down significantly during the years that followed the global economic downturn.

Alongside the growing demand for resources, infrastructure operators and clients with major programmes face another pressure: the demand for exceptional performance to be delivered, demonstrated and realised for funders, regulators and the public. There is scrutiny from all directions.

Attracting investmentThe stakes are high. Governments around the world are recognising that infrastructure is a strong driver of economic development, and are committing serious proportions of GDP. But public money alone is not enough:


F E B R U A R Y/ M A R C H 2 0 1 5 1 1

need to redefine how they engage, work with and drive sustainable performance from the supply chain. Simply procuring a first-tier supplier with an intelligent commercial model is unlikely to be enough. So what must clients do?

Create the currency The best of the worlds supply chain partners will be seeking to work on programmes that enhance their reputation and develop their capability in order to position them to win more prestigious work in the future. This is the currency of a successful programme and to create that a client must make itself attractive to the market. Defining and positioning its brand, and its values, will help. A client must engage the market so that it brings the whole supply chain together to achieve those goals.

Tony Douglas, Chief Executive of Abu Dhabi Airports, talks about the one team culture he has worked to establish with his supply chain. Working on a prestigious and successful programme sets supply chain members above their peers, and attracts other world-class companies to join the party.

Unlock innovation Create the environment for your supply chain to innovate so that they can be rewarded for the value they create think 10% rather than 2% as well as delivering better outcomes for your customers. Innovative companies are usually more productive; this was demonstrated on Londons Crossrail, using data analytics to identify a direct link between the extent of innovation and cost-efficient performance.

Ensure that the supply chain understands your business and enable them to bring in new ideas to help you become more efficient. Some infrastructure owners are procuring based on innovative solutions developed during bidding. A major metro owner, for example, asked contractors to provide station upgrade designs, with one showing how higher passenger flows could be achieved and journey times reduced through an intelligent approach. While a larger capital investment may have been needed, the whole-life solution and subsequent value generated for the operator was far greater. The contractor understood the clients business, and was successful.

Clients require a commercial model that supports innovation and enables access to Tier 3 and Tier 4 suppliers where innovation generally originates.

Some operators are now integrating models with the need to think whole life, balancing capital and operational expenditure to help drive innovation.

Extract value from sub-tierCreate long-term relationships with manufacturers, small and medium-sized enterprises and suppliers that can genuinely unlock value. This could mean working with Tier 1 suppliers to build these relationships, but if you cannot find the right fit, bypass major contractors altogether.

The latter approach requires that clients, sometimes with support, take on the role of construction manager, developing their capabilities so that they can work directly with specialists and manufacturers.

Get informed through dataToo many clients spend time and money substantiating a position with their supply chain, regulator or a third party, because they are not informed. Investment in data makes subjective conversations objective, allowing time to be more productively spent examining ways to improve performance in collaboration with others, rather than to back up an argument or negotiation.

An informed client knows the should cost without going out to the market. Industry collaboration and benchmarking can be a powerful way to optimise costs across a whole sector. Now in its 20th year, the Performance Forum is one example of this, a collaborative project sponsored by 25 major oil companies operating across the oil and gas industry.

In the UK, Anglian Water, which supplies around 1,200 million litres of water a day to six million customers, has been investing in the aggregation of data for over a decade. It now has

a clear understanding of its cost base for the infrastructure it procures, while engaging the market to bring innovations that can further enhance performance. Building information modelling (BIM) also has an important role to play, becoming the control centre for asset delivery and operation. In markets where it is now used, BIM has not progressed far enough, often being driven by designers as simply a clash-detection tool.

Communicate Work with your supply chain to define exceptional performance, and engage partners effectively to ensure that they align their approach to deliver your long-term objectives. This could include enhanced customer or end-user satisfaction, the ability to demonstrate best value to funders and world-class health, safety and environmental performance.

The most visionary clients are not only realising these benefits on their own programmes, but are transforming industry for the better. Their legacy is enhancing supply chain capability and creating a streamlined, fit for purpose, high performance delivery environment.

Towards exceptional Doing the same as they have always done is not an option for clients going forward. It will not deliver the exceptional performance required in todays world. Traditional supply chain engagement will fail to secure the best global supply chains.

Excellence requires a different mindset. Clients must understand what drives their supply chain, and ensure that their partners understand their business. Goals need to be aligned.

Attracting the best Tier 1 suppliers is not enough. Clients must measure performance and outputs and use that data intelligently. Only then can they establish where value is added, and how the whole supply chains performance can be progressively enhanced. b

Investment in data makes subjective conversations objective, allowing time to be more productively spent examining ways to improve performance

Related competencies include Sustainability

David Whysall is a Director at Turner and [email protected]

Image Shutterstock



1 2 F E B R U A R Y/ M A R C H 2 0 1 5

Reconciling differencesIn procuring infrastructure projects around the world, understanding local market conditions is key, suggest Richard Graham, Shy Jackson and Norman Kerfoot

Suppliers operating in a single jurisdiction often assume that the procurement norms they are used to apply universally. They are often surprised when they attempt to operate in another market and discover that different rules apply.

In reality, there are common themes that apply everywhere, such as cost pressures and the desire to achieve a good outcome. Conversely, even within the same jurisdiction there will often be different procurement methods, and they will have different results depending on the specific circumstances of each project as well as external factors such as the strength of the economy.

In looking at how supply chains operate both in the UK and internationally, while it is not possible to identify a universal solution to ensuring these work efficiently and perform well, there are a number of common themes that are worth considering in greater detail.

successful delivery strategy, and package procurement that addressed suppliers needs within a competitive process.

Once it is accepted that time and budget are not sufficient or reliable criteria, one must look at other issues such as the benefit of long-term arrangements, the growth of local communities, skills transfer and better health and safety records. Suppliers need to be able to demonstrate delivery of all such criteria within their bids.

Looking at more specific issues, it is necessary to appreciate that different countries and cultures have their own procurement models and customs. Further, full transparency of the procurement process and award decision-making remains rare, which makes comparative assessment more difficult.

Differences are driven by the extent to which the local market is truly open to wider suppliers; whether procurement adopts pure competition or is governed by local knowledge and contacts. The

What is success?Anyone studying comparative procurement methods must first face the question as to whether this is in fact possible. Whether a project is successful and, for example, has delivered good value for money will not be easily quantifiable.

Indeed, even defining what constitutes a successful project based on delivery on-time and on-budget becomes dependent on how the two are managed. The London 2012 Olympic Games were hailed as a public success and while the timing was fixed, the approved budget certainly changed over the projects life. The vision statement was defined more widely as: To deliver the Olympic Park and all the venues on time, within agreed budget and to specification, minimising the call on public funds and providing a sustainable legacy. In their book, Programme procurement in construction: learning from London 2012, John Mead and Stephen Gruneberg discuss how this vision was developed into a


F E B R U A R Y/ M A R C H 2 0 1 5 1 3

final award decision may change the recommended solution. This is often down to the preferences of the ultimate decision maker.

Barriers govern whether procurers adopt a competitive or relationship-led approach, and may include:

b local relationships: governing a suppliers ability to access these relationships and invest in a local network

b captive suppliers and technology: the extent of a level playing field that exists between bidders. Some might have exclusive access to preferred technology or be part of a supply chain favoured in client bidding terms

b ability of supplier to meet client terms: cost of compliance e.g. safety

b transparency: methods of advertising may favour an incumbent bidder

b pricing method and other commercial terms: can all bidders understand and comply with basis of tender?

b legal: interpretation of local requirements

b transaction costs in doing business: local agencies, offices establishment

b language and culture: understanding local ways of doing business

b specific commercial terms: such as significant public liability insurance that disadvantage SMEs

b credit terms: national export bids that potentially favour one party or skew the award criteria

b relationships: previous experience of the parties with each other.

Nonetheless, it is widely accepted that better procurement leads to better outcomes. Regularly updated Building Cost Information Service tender price studies, for example, suggest that competitive tenders achieve savings of approximately 10%. And HM Treasury highlights the savings that can be achieved from applying collaborative approaches (http://bit.ly/1xo3JZu).

The interesting question, however, is whether it is possible to quantify the benefit of investing in collaborative models based on relational contracts. It seems generally accepted that, at least in the short term, such models require more investment. Whether the benefit is gained remains difficult to assess. The UK is not unique in looking at whether collaborative contracting can make a difference (http://bit.ly/1xUoaNL). What is true is that collaborative contracts are more able to accommodate change and continue to deliver than more conventional forms of contracts. This is because in a traditional contract change tends to be

seen as an adversarial process, while in a collaborative contract it is a common problem to be solved for the benefit of all parties.

Views from abroadWithin the EU one expects to find greater commonality of procurement rules driving homogeneity, with the ultimate aim being an open market without barriers. However, national differences do exist that limit the extent of markets and the ability of suppliers to genuinely access those markets. The variety of international contractors that can be found in London working on projects such as Crossrail has no equivalent in other EU jurisdictions, where language and local regulation make entry more difficult. In general, suppliers still need to exercise choice and caution when moving into other nations markets.

Outside the EU, wider approaches to procurement are expected. Relational-based contracts are favoured in Japan and other jurisdictions in Asia where conflict is to be avoided and there is a greater emphasis on relationships. In Singapore, a Court of Appeal decision in HSBC Institutional Trust Services (Singapore) Ltd v Toshin Development Singapore Pte Ltd [2012] SGCA 48 hinged on good faith clauses, which the court suggested was fairly common practice for Asian businesses to include in their commercial contracts.

Views expressed by Philip J McConnaughay (http://bit.ly/11i7rY2) were endorsed to the effect that such clauses capture the essence of contractual obligations in Asia, although not shared in western understanding. Such clauses embody and express the supposition that the written contract is tentative rather than final, a source of guidance rather than determinative, and subordinate to other values such as preserving the relationship, avoiding disputes and reciprocating accommodations that may control far

more than the written contract itself. The USA tends, in contrast, to adopt a more contractual-based, logical approach, at least on the surface.

The majority of jurisdictions are likely to adopt a combination of both approaches. Paradoxically, one could argue that in the UK the existence of a fast and cost-effective dispute resolution in the form of statutory adjudication encourages a more contractual approach. In contrast, in jurisdictions where legal processes are expensive and slow, parties have to place more reliance on their relationships.

The nature of adjudication is such that it can still encourage parties to resolve issues through collaboration. Indeed, adjudication can be used collaboratively to resolve disputes where there is a genuine need for a decision by a third party. In an international context, the FIDIC form provides for dispute adjudication boards to fulfil the same function, but there are issues around effective enforcement that do not exist in the UK.

Reasons for cautionFactors such as high bidding transaction costs, tying up key bidder resources and general bid risk limit chance of success, where the bidding and delivery premiums, the cost of doing business, may be considered too high. So what are the reasons for this?

True transparency of opportunity and risk are not readily available, especially in the Middle East, but also in the USA and Europe, where preferred local and national contractors are seen as front runners or, as a minimum, prerequisite partners for joint venture bids. The publication of local content procurement rules often serves merely to legitimise the ultimate selection.

In many parts of the Middle East, it is a part of the governments published strategy to develop and protect indigenous skills. Elsewhere, it is still the safest strategy to include a local company, even if they are not seen as central to delivery of the work scope.

The transparency issue lies in the knowledge of the forthcoming bid requirement. In the Middle East, the awareness is high. Qatars water and roads ministry Ashghal posts requests for tenders and awards on an electronic score board in its lobby. Similar mechanisms exist in the USA for Defense Department bids.

In the UK, the definition of the bid requirement will often give clues as to

In jurisdictions where legal processes are expensive and slow, parties have to place more reliance on their relationships

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whom the client wishes to award the work, which an overseas bidder would not readily pick up. The recent emphasis on behavioural criteria can present an even greater challenge to international parties less familiar with the current UK thinking on collaboration.

In addition, the published requirement may subtly differ from the preferred requirement, typically only available from one or two companies. It is not unknown for the preferred contractor not to win the competition.

A key factor is the use of incentives in the supply chain as a way of achieving better performance. It is significant that the concept of target costs, which is now well established in the UK, is still rare internationally, where incentives tend to be more simplistic e.g. a bonus for early completion rather than the more sophisticated pain/gain mechanism in the NEC contract.

For the supply chain, however, the challenge is to transfer the benefit of such incentives down the line. The structure and rationale for an economic incentive under a main contract can be very different from that under a supply agreement. The use of incentives throughout the supply chain appears to

be one area that has not been sufficiently explored. More recently, however, the inclusion and incentivisation of the local supply chains is becoming a key consideration in the awarding of work in many markets.

ConclusionsIt is not possible to identify a universal procurement model that is the secret to effective and successful supply chains. Unsurprisingly local knowledge is a key ingredient for both the bid/no bid decision.

There is, however, widespread support for the proposal that relational contracts and collaborative behaviours produce better results overall. For example, the UK government has recently published guidance in support of two-stage open book, and supply chain collaboration during bids as advantageous to all parties within a complex bidding process (http://bit.ly/1tdPwbt). Its involvement reflects the fact that collaboration requires a genuine commitment from clients, and not another burden to put on the supply chain with no clear benefit.

Suppliers should consider how the local market context contrasts with their own established norms. The general

themes of trust and collaboration are recognised as being preferable to the more traditional and adversarial models. The challenge remains the creation of an effective economic incentive structure throughout the supply chain that will encourage and support collaborative behaviour as suppliers seek to establish appropriate commercial relationships within different jurisdictions, and select the most effective bidder strategies to adopt locally. b

Related competencies include Procurement and tendering

Richard Graham FRICS is Director of Rail Networks at CH2M [email protected] Shy Jackson is a Partner at Pinsent Mason [email protected]

Norman Kerfoot is Managing Director at the Advance Consultancy Ltd [email protected]

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Returning for the fourth year, this conference will offer clear guidance from experts on how BIM is used on projects, in various sectors, and the experiences of the practices on their journey of implementing BIM.

Find out what is expected of you when implementing BIM, dealing with challenges and overcoming barriers, as well as meeting your clients demands. Hear lessons learnt from implementing BIM in practice and how BIM supports the operation of an asset in practice and management of big data.

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Inside informationGetting the right data is the first step in making better decisions about the delivery and operation of infrastructure assets, says Dave Monswhite

Around the world, major infrastructure projects continue to grow in size and complexity. In this environment, access to objective, relevant and accurate information is crucial to improve the agility of decision-making. This is aided by new technology and collaborative approaches, such as building information modelling (BIM), although they are often under-used.

Unfortunately, many clients are only exposed to visualisations of the 3D design aspects of the BIM process, focusing on design and engineering-related elements. What they often do not see is the impact of the information sitting behind those graphics.

Take light fixtures in a train station. You can see the object as a 3D image in a BIM, but it may have other parameters attached to it, for example, the type of street light it is mounted on, the spare parts it needs, maintenance cycles and power use.

Data extracted from such a model can be used to make powerful decisions the world of information management. Unfortunately, many clients are not in control of how information is produced or communicated to them.

Beyond traditionalClients generally request and receive design information in

Dave Monswhite MRICS is an Associate Director at Turner and [email protected]

I N F R AST R U C T U R E

Related competencies include Project process and procedures, Teamworking

A traditional formats, namely drawings, plans and sections. Traditional approaches supply traditional results. A more effective tactic is to be specific from day one about the information you will need to make decisions throughout the life cycle of your asset. A well-defined and communicated information strategy, from the outset, is key. Think about the questions you will ask later in your project. In an airport, for example, how will retail spaces work? Will queue flows be efficient? Or, in a school, will the corridors be wide enough for pupils to use safely?

The answers can fundamentally affect your assets design, so it is essential to decide early on which information and data-capturing requirements your organisation will need for future decision-making. This also means that the process of gathering information can be written into contracts.

A better solutionMany buildings are still designed using a traditional, architectural-led approach. Such designs make use of floor plans and elevations, but clients often struggle to understand the implications of the design choices at an early stage. Finding out late that a concept is flawed will impact on schedules and costs and probably mean a compromise solution.

However, using BIM from the start, showing simple floors and walls, primary cores, orientation and the relationship with other buildings, for instance, allows an objective appraisal on whether the concept is worth progressing. If so, the model

can be populated with more detail about individual objects doors, heating systems and windows as long as these have been defined from the outset.

Studies demonstrate that this can shorten overall design times because the right solution is being developed earlier. An accurate mass-model allows cost managers to understand details like wall-to-floor ratios, and so develop a robust early cost estimate. Strong information management also improves understanding of the capital and operational expenditure implications of any decisions taken, and leads to improved quality through minimised rework.

There can also be a huge programme-wide impact, for example across multiple train station redevelopments. Consistently naming and structuring information objects across every model allows comparisons to be made and design commonality to be found, to take advantage of buying economies or even understand the implications of lead times across multiple sites. There will also be consistent information available for operating assets.

However, consistency is key. If an organic, bespoke approach is taken to structuring the data of individual projects, each one will look different in BIM, and actually create inefficiencies. Culture is the biggest barrier to true collaboration and the client is central to changing this.Control your scope of service: get the information you need to make informed decisions. If you use the scope of service you have

always used then you will receive the traditional outputs you have had in the past. Consider your project holistically: identify and resolve any disconnect between those commissioning, designing or building an asset and those ultimately operating it. Involve your operational team early in the process so that it does not have to wait to discover information about a complex asset at handover.Collect your FM information early: use a methodology such as BS 1192-4, which provides parameters for gathering information about every object even if you do not know how to use it yet. It will avoid the need to revisit old projects.Involve your costs managers sooner: cost managers should work alongside designers to ensure that affordability is factored into the early design process. Make your project gateways more about affirmation of progress.Control your data environment: do not rely on a third party. What happens if there is a disagreement and they block your access? Information is an often overlooked intangible asset that should be managed from the pre-investment/planning phase. What is your approach to maximising its value on your projects? b


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Reaping the benefitsIn the third and final article on the Manchester Central Library restoration project, Liam Brady and the One Team assess the effectiveness of BIM technology

Although a technically aware client, Manchester City Council (MCC) had little experience of building information modelling (BIM) at the start of its refurbishment of the citys town hall complex. At the heart of the city, the town hall extension and central library are grade II* listed buildings of national significance, among the best examples of the architecture of their period; innovative, sophisticated and constructed to high standards. The public spaces of Albert Square and St Peters Square provide the setting for these important civic buildings,

was considered at the start of the town hall project, it was not included in the contractual documentation.

Ryder Architecture won the contract to redesign the Central Library in 2009 and the practice convinced the Council to adopt BIM on this project. As Director Ian Kennedy recalls: When we were appointed for the library project, our experience as one of the first adopters of BIM technology allowed us to help MCC seize the opportunity to improve its whole approach to asset and facilities management. Over the past three years we have worked together to the point where the library and town hall is regarded as an exemplar project in this

as well as a number of key developments proposed in the vicinity.

Begun in September 2010 and completed in March 2014, the project, involved the redesign of the town hall extension and central library, and was allocated a budget of 100m (Construction Journal December 2014/January 2015 p14).

Introducing BIMMCC had considered using BIM as far back as 2006 on the Building Schools for the Future projects, and BIM has been used on a number of capital projects to improve stakeholder engagement and design development. But although BIM


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b transfer of construction data to the client FM team for ongoing estate management.

Collaborative workingThe project team established a collocated office to promote a One Team ethos. This gave the MCC team day-to-day access to BIM expertise from Ryder, NG Bailey and Laing ORourke colleagues with whom they could share knowledge, ideas and aspirations.

Strong links were also formed with the University of Salford, the University of Liverpool and the BIM Academy at Northumbria University, which offered guidance and supported the project team in making informed decisions.

Emphasising the extent to which the project has served to highlight BIMs value to the public sector, Arto Kiviniemi, Professor of Architecture at the University of Liverpool notes: Manchester Town Hall complex is a flagship project in the UK, and even internationally, highlighting the importance of BIM protocols and

processes and especially the importance of the attitude of the project team. Without understating the achieved benefits and significant technical merits of the project, we think that this is an exemplary case of the importance of cultural change in successful BIM implementation.

The government BIM Task Group and its chairman Mark Bew were very hands on. The team attended key BIM workshops with the supply chain, MCC operational teams and ICT vendors. Cabinet Office attendance really helped to drive the agenda and gave credibility and confidence to the project vision.

BIM implementationManchester Town Hall Complex Transformation Programme Construction Director Alan Garbutt stresses that the use of BIM demonstrated its value in terms of estate management. The objectives were essential to enable the delivery of services quicker, cheaper, more efficiently and in less space. Having a BIM as the basis of the design, construction, specification and operation and maintenance manuals for the project enabled the city to retain its greater aspiration to manage its estate through an asset information model.

He adds: This aim will not be achieved for some while yet, but the city has the basic capability to develop ultimately a city-wide estates asset database covering the entire tapestry of reactive and planned maintenance, scheduling, purchasing, stock control, replenishment and financial management.

Value and benefits CommunicationLaing ORourke used BIM to communicate the site establishment and boundary proposals to local businesses, neighbours, highways and planning colleagues, and this clarity reduced the queries and concerns that would normally be expected on such a large city centre site. BIM was also used as a site induction tool, which enhanced the clarity and understanding of the site access routes and site logistics and safety requirements.

field. We are delighted to have been part of the process. The project represented the most significant refurbishment that Ryder had undertaken to date.

The practice held early discussions with MCC to explain the benefits that BIM could bring to its estate management. 3D survey information was initially commissioned, and further refined where required, with localised detailed analysis of existing building geometry and intrusive surveys as the project scope and requirements progressed.

The benefits of BIM in the refurbishment of a listed building have been evidenced in the following ways:

b interactive demonstrations of complex interventions into the existing fabric incorporating methodology and sequencing to stakeholders, notably English Heritage

b testing of design options as a collaborative client/consultant/contractor team in a 3D environment

b offsite manufacture of construction elements from geometric data exported from the design model n

Image Manchester City Council


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1 8 F E B R U A R Y/ M A R C H 2 0 1 5

To ensure that value is achieved in the operational life cycle of the town hall complex transformation scheme, MCC and Laing ORourke signed up to the government Soft Landings policy (below), outlining their expectations and requirements. A number of forums were established to allow the active involvement of key players across the project at a number of levels, to ensure that the desired outcome of a golden thread between design, construction and operation is achieved (right).

Visual method statements were developed using BIM to breakdown complex site works into individual activities, which enhanced the clarity for the site teams. In turn, this served to promote a right first time approach, workmanship was improved and site safety was enhanced.

For its part, Ryder used BIM to communicate complex design solutions (e.g. vertical circulation core and the removal of the four-storey book stacks in central library) to key

stakeholders ranging from the project team, councillors, librarians, planning officers to English Heritage colleagues, enabling them to make better informed decisions.

ProgrammingThe model also helped to develop the sequencing and programming, which gave key stakeholders confidence that the Grade II* buildings were being respected, and works were being appropriately considered and planned. MCC planning conservation manager Paul Mason believes that: BIM gave us the confidence in our decisions and agreements on design.

The design and installation of the central librarys ground floor sculptured troughed ceiling required a supplier that could use BIM data to manufacture the product. A local SME gained a commercial advantage over competitors because of access to BIM technologies and expertise in coordinating the very complex services, structure and ceiling finishes.

Cost and time savingsA saving of 250,000 was achieved on the vertical circulation core, 10% of the value. The coordination of complex services across the town hall extension and central library saved time and money due to right-first-time solutions and a reduced number of changes. Time was also saved in consultation with stakeholders and especially English Heritage.

Asset managementThe MCC operational team has been actively involved at all stages of the development of BIM for asset information management (AIM), focusing on the mechanical and electrical (M&E) data. Peter Harvey, the projects building services engineer, highlights the great value of BIM technology in achieving real cost savings across the entire scope of the project. As he puts it: To have the ability to interrogate isolated services, such as a chilled water system or a combined network such as the ventilation layout, all from the relative comfort of a

Post occupancy evaluation

Forum Attendees Objective of group

Handover steering group

Full project team

Controlled approach to handover

Confirm roles and responsibilities

Define boundaries

Prepare FM team

Confirm status of handover

Review progress and manage risks

Core operational team

Laing ORourke engineersNG Bailey MCC FM team

Tighten the relationship between Laing ORourke/MCC

Focus on operational outcomes

Share risks and responsibilities

Prepare FM team.

Fire safety, security and operational team

Laing ORourke M&Ecommissioning managerMCC FM team

Support handover process

Tighten the relationship between Laing ORourke/MCC


Prepare FM team

Development of metering strategy

Laing ORourke M&EBDP design engineersMCC Building Energy Systems

Set performance objectives

Metering strategy

Promote behavioural change

Prepare Laing ORourke/MCC for post occupancy evaluation

Controlled approach to handover

(Clarity of roles and responsibilities)

Involved end users/FM team

Focus on operational outcomes

Set performance objectives

(Environmental performance Metering strategy

Energy assessment (POE))

Post occupancy evaluation

(Environmental/Energy Performance Visitor targets

Customer/staff satisfaction )


Training and aftercare

Familiarisation and commissioning

Soft Landings

The city has the basic capability to develop ultimately a city-wide estates asset database

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Images Manchester City Council

R ICS CONSTRUCTION JOURNAL

F E B R U A R Y/ M A R C H 2 0 1 5 1 9

Liam Brady is Manchester City Council Programme Manager [email protected]

Related competencies include Project process and procedures, Teamworking

hand held device provides measurable cost savings and immeasurable safety and efficiency savings.

NG Bailey, the projects M&E subcontractor, has used BIM for a number of years to enhance its ability to deliver right-first-time solutions. On the Town Hall complex, its digital engineers used great finesse and skill to route very complex services throughout both buildings, to avoid redesigns and changes on site (clash detection).

Initially, MCC was unclear on how it needed the M&E AIM data to be presented, so several workshops were held with Harvey and the estate

management software vendor C-Pad. The team was keen to adopt the principles of construction operation building information (COBie) as promoted by the BIM Task Group. However, the naming conventions and scale of detail have been altered to suit the needs of the MCC operational team.

While NG Baileys BIM model was impressive, it was not data rich. The two parties worked comprehensively together to ensure that the M&E asset information was eventually uploaded into the BIM model in accordance with the MCC operational team requirements. This was done retrospectively, which proved

very time consuming. MCC is keen to use this learning to develop BIM employer information requirements that will be clearly articulated at the outset of works. b

The BIM model was central to decision making at all stages of the restoration project from design to programming, and will inform asset management in the future


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Assessment findings

Table 2Sample group

Construction project managers

Construction site managers

Site operatives

High 6% 14% 0%

Medium 27% 14% 12%

Low 67% 71% 88%

Put to the testIn this second of a three-part series, Matthew Maslen reports on his study of stress in construction and its relevance to all members of the project team

When compared with others, the construction section is characterised by a reluctance to report stress. This may be due to a macho culture and a false perception that admitting to stress, depression or anxiety is a sign of weakness (Construction Journal November/December 2014).

But are certain personalities types more prone to stress and is there a link between stress and performance? Psychological personality testing distinguishes between a Type A personality intense, driven, competitive, and a Type B personality no

as time urgency, continuous involvement in multiple functions with deadlines and a persistent desire for recognition and achievement. Site operatives were much more likely to report traits of a Type-B personality, such as no desire to compete or to be involved in deadlines.

Finding 2: Assessment of current stress levelsThis question measured current stress using a combination of clinically established stress, depression and anxiety assessment tools. Stress characteristics and markers were recorded and, for example, respondents were asked how much they agree with

drive or ambition. My study sampled 110 construction personnel across three groups. This included 72 construction project managers, 21 site managers and 17 site operatives. Each respondent completed a closed question online questionnaire in total anonymity.

Finding 1: Assessment of personality type The assessment was undertaken using the established Bortner Scale. The groups A+ and B+ were added to provide a broader range of results.

Table 1 shows how project managers and site managers reported a strong Type A personality. They exhibited traits such

Table 1Sample group



Site operatives

Type A+ personality 33% 43% 12%

Type A personality 52% 43% 53%

Type B personality 15% 14% 35%

Type B+ personality 0% 0% 0%

Table 3Sample group



Site operatives

Positive feelings most selected

Engaged (57%)Decisive (56%)Composed (29%)

Decisive (62%)Interested (48%)Engaged (38%)

Decisive (24%)Interested (24%)Engaged (18%)

Negative feelings most selected

Rushed (72%)Irritable (58%)Annoyed (50%)

Irritable (62%)Annoyed (62%)Rushed (62%)

Rushed (76%)Irritable (64%)Annoyed (59%)

Positive feelings least selected

Relaxed (3%) Calm (5%) Relaxed (0%)Satisfied (0%)

Negative feelings least selected

Nauseous (7%) Nauseous (5%) Nauseous (0%)

Image Image Source


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Work slows/Thrive on stress/Work suffers

6

5

4

3

2Per

form

ance

sco

ring

(1

-10)

Figure 1: Yerkes Dodson Curve comparison

Projectmanager

Sitemanager

Siteoperative

statements such as: I struggle to control worry. Table 2 shows the percentage of respondents in each stress level group.

In the project manager and site manager categories the most reported problem was sleep disturbance, but other issues included being easily distracted and having little pleasure in doing things. Some respondents reported worrying and extreme levels of stress, similar to the experience of a person experiencing burnout or breakdown.

Finding 3: Comparing stress experience to personality typeIn this exercise stress score was compared against personality score. Across all three groups an average increase in personality score (namely becoming more Type A) meant a slight increase in stress score. However, it should be noted that the distribution within all three groups was wide and no one formula fitted the results.

Finding 4: Optimum levels of stress The Yerkes Dodson Curve (Figure 1) proposes that optimum levels of stress causes high productivity. In this assessment respondents were asked their level of agreement with three questions aimed to assess three different positions on the curve:1. When I am not busy at work I slow down Assessing the left side of the curve2. I thrive on stress at work Assessing the middle of the curve at an optimum stress level3. When Im stressed my work suffers Assessing too much stress and burnout.

The graph clearly shows that the project manager has an optimum work and stress level as predicted. It also shows the project manager can resist stress and keep up this performance better than the other groups (to the right hand side of the graph). It was noted the site manager and site operative do not thrive on stress, and their performance stayed comparatively level across stress levels. It suggests that a low level of stress gives low performance, an optimum or medium stress level gives high performance and high stress level causes a return to low performance.

Finding 5: The respondents feelings The final question asked for a reflection of feelings (positive or negative) experienced on the most stressful day of the respondents working lives. A choice of eight positive and eight negative feelings were offered. The study found that site operatives reported three times as many negative feelings as positive ones. Table 3 shows the feelings most selected by each group.

Matthew Maslen is an Assistant Project Manager at Norman Rourke Prime [email protected]

Related competencies include Managing people

Positive emotions of being decisive, engaged and interested (similar to a Type A characteristics) figured highly in positive emotions across the groups. Feelings such as calm, relaxed and satisfied (Type B) were rarely reported and even absent.

It was noticed that fear and nausea were rarely reported. Given the high stress levels recorded in the respondents it is possible that reporting these feelings were avoided. Perhaps macho team members considered this is a sign of weakness. These results offer an insight into the psychology of each of the three groups. b


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Striking a balance Changes to the employment tribunal process has shifted the focus to avoiding claims, explains Helen Crossland

Before 29 July 2013, any individual who had lost their job, or who alleged to have been mistreated at work, could, if eligible, bring a claim against their current or former employer before an employment tribunal free of charge. The main reason for this was that it was considered prohibitive and unfair for someone to have to incur a fee to bring a claim.

However, soaring costs of running the service and the concern that too many spurious and unmeritorious claims were being brought meant change was needed. Of the 186,000 claims brought in the 12 months preceding July 2013, for example, only a quarter proceeded to a final hearing, and of these, just 8% of unfair dismissal claims and 3% of discrimination claims succeeded. Yet in the majority of these cases, including those that were withdrawn, struck out, or which settled, the employer still incurred significant time and costs defending the claims.

In response, two key measures have been introduced: fees and mandatory early conciliation.

New feesSince July 2013, any claimant wishing to pursue a claim, must pay up to 1,200. Most complaints, including unfair/constructive dismissal, discrimination and whistleblowing, now carry an issue fee of 250 per claim form and a further fee of 950 on a final hearing being listed.

Lower fees apply to money claims such as unlawful deduction of wages,

However, after that date, a new pre-claim stage was implemented to try to dispose of claims before they are issued. Anyone now intending to bring a claim against their (former) employer must first complete an early conciliation (EC) form, which is sent to ACAS as opposed to the employment tribunal. ACAS will then obtain details and if the claimant is willing to attempt conciliation, contact the employer to see if there is any scope to resolve the dispute.

Employers get no prior warning of any communication, and ACAS will simply telephone the person nominated by the claimant in the EC form to discuss the potential claim. Whereas some claims will be expected, others may come as a surprise, and it is strongly advisable for employers to nominate an individual (who could be a manager or their employment lawyer) as the chosen point of contact. This will help ensure that ACAS calls that person rather than the contact named in the EC form.

Following the submission of an EC form, either party may decline to engage. If so, or if the parties commence negotiations but fail to reach an agreement, the EC period will be deemed to have ended and ACAS will issue a certificate confirming this. Only then can the would-be claimant lodge a claim in an employment tribunal. If EC results in an agreed settlement, employers should ensure that this waives all prospective claims the (former) employee could bring, and not just those that have been brought to their attention by ACAS.

To allow time for the EC process a set period of one month extendable by

holiday and redundancy pay, and for group action claims against the same employer.

Fees are only reimbursed to claimants whose claims succeed and are otherwise lost. A fee remission scheme is available for individuals in receipt of state benefits, or whose gross or disposable income is below a certain limit.

It was always expected, and indeed intended, that the new fee system would deter some potential claimants from presenting claims. But the decline has been unprecedented between 70% and 80% each quarter since fees were introduced and calls from trade unions for tribunal fees to be scrapped, or much reduced, are now at fever pitch.

Early conciliationBefore April 2014, an individual could complete a claim form online and on clicking submit, launch a claim in an employment tribunal. At that point, and provided the claim was not rejected for any reason, the parties were off and running and the employer would have 28 days to file a response (defence).

It is strongly advisable for employers to nominate an individual as the chosen point of contact


F E B R U A R Y/ M A R C H 2 0 1 5 2 3

two weeks if the parties agree the normal limitation period for a claimant to bring a claim will, in most cases, be extended. Special rules apply in this scenario, and professional advice should be taken to calculate any new limitation date, and whether a claim brought after EC was in time.

While EC has not attracted the same consternation as tribunal fees seen by many as a barrier to justice it has proved a less effective means of reducing claims, with just 18% of claims attributed as having been resolved by way of EC.

A new approach Fees and early conciliation have introduced a new dimension to the tribunal system and have proven highly beneficial to employers wishing to avoid the costs and risks of litigation. A claimants resolve can be tested upfront if the employer considers the individual unlikely to invest 1,200 to pursue a claim, and claimants generally may be more agreeable to accepting a lower settlement package.

EC in particular can be useful in encouraging a would-be claimant to walk away from a potential claim or as the case may be, to experience a taste of the

battle they may face if they opt to litigate. Since EC is a confidential process, employers are safe in the knowledge that the content of any discussions is excluded from any legal proceedings that follow.

Where a claim is issued, normal service resumes with the employer having 28 days to file a response and directions being listed thereafter, including for the exchange of relevant documents and

witness statements, and the listing of a final hearing.

Also factored into the equation now is the second tribunal fee of 950, payable by claimants on a hearing being listed, putting individuals under greater pressure to stick or twist. However, the fact of fewer claims in the system is making for speedier proceedings, focusing the minds of the parties to resolve disputes before they find themselves in front of an omniscient employment judge.

The future of tribunal fees hangs in the balance, but there has been an undeniable shift in the system with the emphasis now being on resolution. This can only be beneficial for employers whose time and money is best focused on running their business. b

TXXX xxx xxx xxx x-located office also created an environment where formal meeting structures were supplemy informal meetings

Fewer claims in the system is making for speedier proceedings, focusing the minds of the parties to resolve disputes before they find themselves in front of an omniscient employment judge

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Related competencies include Managing people

Helen Crossland is a Partner in the Employment team at Hamlins [email protected]

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