Changing to Compete

Review of Productivity and Skills in UK Engineering Construction

Full report downloadable from www.bis.gov.uk

Terry Lazenby MBE Chairman, ECITB

Securing and sustaining skills, productivity and performance

Comparative Labour Productivity 1998 - 2008

US Gulf Coast Germany Continental Europe

1.00 1.05 1.06

The Netherlands
UK France

1.08
1.11 1.20

Securing and sustaining skills, productivity and performance

Factors affecting project productivity

Integrated teams

Sufficient time in planning and scheduling before

construction

Criteria for contractor selection Supervision

Securing and sustaining skills, productivity and performance

Change to Compete
Recommendations relevant to todays discussions

Client leadership

Use of Best Practice

Workforce involvement Supervisory competence Career Pathways Double Apprentices

Continuity of employment

Securing and sustaining skills, productivity and performance

Engineering Construction Industry Forum

Sub Group Working Parties
Client Input Best Practice Training

Forum Deliverables 1. New culture 2. Visible Industry Project Pipeline 3. Improved training 4. Enhanced skills 5. Clear Career paths 6. Fit for Purpurpose - NAECI 7. Improved Productivity 8. Predictable performance 9. Construction Forum Charters

Government signals

Benchmarking

Enabling Agreements

Securing and sustaining skills, productivity and performance

Your experience

What, in your experience, are the factors that contribute to, or detract from, good productivity?

Securing and sustaining skills, productivity and performance

Success Factors for Good On-site Productivity

1. Having a clear scope of work that once established remains fixed 2. A complete design that has also taken into account ease of construction factors and

3.
4.

5.
6. 7.

future maintenance requirements Effective control of prefabricated components (design through to manufacture) to ensure no need for site re-work because of either design or manufacturing mistakes Ensuring ease of access to the work site for people and equipment and avoidance of delays caused by from such procedures as permit to work requirements (especially true for R&M in or near live plant) Once work is authorised, leadership and supervision of the on-site teams to maintain work flow there needs to be a stable supervisor group with strong links with the site/project management team Ensuring the individuals doing the work have the necessary skills and competences (including safety behaviours) for the task(s) at hand to ensure timely and quality completion Ensuring that the team or individuals are appropriately motivated to meet the required performance levels for delivery on schedule, quality and cost

Securing and sustaining skills, productivity and performance

Success Factors for Good On-site Productivity

8. 9. 10.
Ensuring that the client expectations are both realistic and managed via effective communication from the site management team and that changes to scope or design whilst construction is underway are avoided Ensuring that if changes are required, there is an effective system of change control that includes rapid assessment of the cost and schedule impact Ensuring that the plan and expectations are appropriate for the nature of the work. There are marked differences between repair and maintenance and new build and these need to be fully understood by all parties. Effective site organisation and coordination of materials and people is critical Ensuring that the team has the right culture and attitude to minimise non productive time and not to allow the client to set an unrealistic schedule in an attempt to energise the team to unachievable goals ultimately these issues usually combine to give dissatisfaction all round client contractor - workforce A partnership approach between client-contractor and sub contractors has been proven to be successful by reducing silo behaviour and ensuring designs and construction flows smoothly. (Recent market behaviour has been moving away from this best practice)

11.

12.

Securing and sustaining skills, productivity and performance

Success Factors for Good On-site Productivity

13. Ensuring that the forms of contract are appropriate for the level of definition and scope
of work (for each work packet). A fixed price contract is not usually correct when there is a low level of detail, when risks cannot be correctly assessed and mitigated 14. Ensuring that there is an effective approach to risk identification and management which is closely linked to ensuring effective project control processes to give good management information and early warning of deviations (for mitigation) and success (for acceleration)

Securing and sustaining skills, productivity and performance