Dr Martina Girvan, Technical Director - Ecology, Arcadis Consulting (UK) provides her key learnings from CIRIA's member only event - 2025: Driving the Vision.
The CIRIA member’s conference on the 25th of April provided us with an insight into the Government’s vision for the future of the Construction and Infrastructure Industry in the UK. Arcadis' own Simon Rawlinson presented the strategy for implementation of the Construction 2025 Strategy in his role as a member of the Construction Leadership Council.
For me the key take home messages were the Government’s need for industry to take the lead and not being driven by compliance but by productivity and efficiency. The key areas to be addressed were acknowledged as:
- Poor gender and BME diversity (12 and 3% respectively) this it has to be said was reflected in the diversity of the speakers and the audience
- A large skills gap in the profession with an aging work force and that their skills may not be being captured with apprenticeships and mentoring a critical requirement (a perception of a low level of training currently provided)
- The need to innovate at all points in a project not just the outset (the perception that as an industry we were too busy to innovate or too inflexible)
- Continuation of the digital and communication transformation and of BIM implementation
- Better awareness of the circular economy (not just embedded carbon) to save billions in construction and operational costs and other benefits such as staff retention, climate attenuation, additional revenue etc.
- There was a no to low awareness of the Natural Capital Valuation movement within the construction industry, a movement that seeks to internalise the costs to the environment and society of construction as well as the financial bottom line
- Rather than any proactive support or preferential treatment of UK industries for procurement (i.e. British Steel) by the Government that the exploration of these societal and environmental costs, if fully realised will likely steer procurement towards a local source.
- Also the need for a cultural behavioural overhaul to bring the construction industry up to date with the “millennial” generation
Support is provided via a raft of Government initiatives but industry must rise to the challenge.
A synopsis of key speakers points below:
David Hancock – Head of Construction representing the Government
Highlighted that Infrastructure and Construction Projects:
- formed 8% of the UKs GDP
- employed 6% of the UK’s workforce
- over 262 billion in revenue
A key message was that the focus was on the Government being a good client leading by example rather than forcing compliance. He acknowledged that the construction industry did have some challenges.
- A large skills gap (due to the lack of investment in people in the recession)
- An aging workforce (mostly over 40)
- Low gender diversity (women for example compromise 12% of the workforce)
- Low BME diversity (3%)
- An image problem as an unprofessional “old school” industry
- Gender pay gap is higher than the national average (22.8%)
Although means to support the industry are offered by:
- The Project Leadership Programme (PLP) (run by Cranfield University in collaboration with PA Consulting Group and The Project Academy for senior civil servants responsible for major government projects.) targeting 300 staff over the next 5 years to plug the skills gap
- The Government Construction Strategy overseen by the Government Construction Board
- Department for Business Innovation and Skills (BIS)
- Infrastructure and Projects Authority
- The Construction Leadership Council which oversees implementation of Construction 2025
Key take home messages around areas for the industry development to increase productivity and efficiency from David were:
- The need for innovation
- Flexible working (sabbaticals, job sharing, flexible working hours) for a new generation of millennials
- To continue digital transformation and communication via BIM Level 2 targets and move towards BIM level 3
- Improving procurement (infrastructure procurement route map)
- The National Infrastructure Commission providing strategic guidance
Robin Webb Deputy Director of Infrastructure, Construction and Rail (BIS) (note the previous Retail element has been dropped)
Robin highlighted the change in the Governments position since the last Coalition with an emphasis to be placed on industry self-steering and regulation. He echoed the sentiment of David re key problem areas:
- Productivity having flat lined for a generation
- Focus on the Government being a good client with greater levels of predictability while acknowledging that there will always be differences between say the MOD and Defra as a client
- Again the skills shortage is noted and the industry needs to act before losing the knowledge the older generation workforce possess.
Martin Buck Transition and Strategy Director Crossrail
Martin used Crossrail as an example of innovation in construction which is communicated by their Legacy Learning initiative and becoming the gold standard for the delivery of major projects around the world with their use of Sprayed Concrete Linings (SCLs) as an innovation example.
- 97% of Crossrail’s contracts are within the UK
- 60% are outside London
- Almost 100% of their waste has been reused (Wallasea Island wetland creation being a prime example)
They achieved this in part be performance measuring monitored at four points over 4 years on their journey from Innovation Strategy to Legacy Learning.
Martin acknowledged that in general the industry requires greater efficiency in procurement (7-8% cost of procurement) and to that end transparency in risk transferral from client to contractor. Dissemination of the knowledge gained from such project experience again being vital.
Adam Golden Legal Executive Costain
Adam is doing a PhD at UCL on managing innovation and he again used the Crossrail example, their Innovate 18 where each supplier contributed 25k to an innovation fund which all could apply, “commercial” behaviour in this forum was discouraged.
A questionnaire of 169 people across SMEs and Clients revealed that cultural behaviour was one of many barriers to innovation. Also not maximising the “human potential” with training and mentoring being undervalued. Being too busy for innovation was also cited and poor communication, meetings undertaken in isolation rather than cross pollinating between companies and disciplines.
Thames Water took their behavioural assessment into the procurement arena assessing their 6 shortlisted suppliers resulting in awards to 2 partnerships (Skanska/MWH/Balfour Beatty JV and a partnership of Costain/Veolia/Atkins).
Costain, Pinsent Masons and academics from the University of Cambridge have secured a grant from Innovate UK to examine the contractual, legal and cultural barriers to innovation in construction. Half way through the programme they have evidenced the barriers to innovation, the second half needs to provide the solutions.
Key barriers:
- IPR issues not easily dealt with
- Clients too rigid and not willing to try new things
- Being engaged too late to innovate just needing to react and deliver
- Contracts not well understood
Some early recommendations:
- Hire the correct people for the job
- Invest in training and mentoring
- Communicate cross pollination
- Innovate throughout the project not just at the outset
- Impose challenges on the team and performance targets
Mark Edwards Sustainability Advisor from UK Green Building Council
Highlighted the economic opportunities of sustainability. That GDP doesn’t include any of the external costs i.e. societal or environmental and construction is the most significant impact on our resources.
- 45% of energy
- 50% of water
- 60% of new material
- 20% pollution
- 50% of landfill waste
The opportunities for construction to invest in “green” buildings and to improve efficiencies is enormous. Construction 2025 sees the requirement for “green” buildings doubling by 2018 saving billions by a reduction in carbon costs.
Mark talked about the other financial benefits of green buildings such as:
- Staff retention (staff put a green building above many other benefits
- Reduced operation costs
- Lower sickness and therefore lost revenue days
- Greater footfall in a retail environment matched with longer visits and greater expenditure
For a more in-depth discussion on the benefits of green infrastructure visit the
Demystifying Green Infrastructure Guidance by the UKGBC for which I was privileged to be part of the Task Group delivering.
Simon Rawlinson Head of Research for the Construction Leadership Council and member of Arcadis
Simon highlighted the opportunities the construction industry has re increasing its communication platforms to improve productivity as being one of the few businesses not saturated by social media.
Simon also reiterated the need for apprenticeships, increased diversity and recognition of the circular economy and reduction in waste in terms of time and materials. To this end CLC have priority actions for implementation that they are supporting such as:
Simon is continuing to work with the CLC to implement the
Construction 2025: industrial strategy for construction.