Construction

Journal
Attracting
talent Addressing the construction
industry’s skills shortages

Keeping up to date On course Team players November/December 2014

Why continuing professional A look at the latest Integrated working on rics.org/journals
developent is essential to developments in industry Manchester’s civic centre
maintaining sector standards education and training renovation project
PG. 6 PG. 10 PG. 14
RICS CON ST RUCT I O N
JO URN A L
CHAIRMAN'S COLUMN
David Bucknall looks at the importance of education and
continued professional development as economic conditions improve
T
Back to basics
The education and
professional training theme of
this journal is vital – and too
easily forgotten as we wrestle
with the complex challenges
of the post-recession
market recovery.
Many of us have high
aspirations for the future of our
quantity surveying profession,
but these are totally reliant on
a strong grasp of the basics,
plus a thorough understanding
of how to apply them to the
benefit of our customer.
The QS profession faces
both a great challenge and a
significant opportunity as the
construction industry changes
to meet the challenges of
“more for less” client agenda
going forward. The QS and
Construction Professional
Group Board at RICS is
focused on improving the
market perception of the
chartered quantity surveyor,
and is adopting a twin track
approach based on:
bb maintaining and improving
core standards and ethics
bb demonstrating the added
value contribution that
chartered quantity surveyors
4  NOVEMBER/DECEMBER 2014
C H A I R M A N ’S CO L U MN
can make to the successful
delivery of the government
Construction 2025 Industry
Strategy – which contains very
challenging cost, time and
carbon reduction targets.
Whatever strategic
aspirations we may have
for our profession it is
absolutely reliant on a
thorough understanding
and ability to use the
fundamentals. It may seem
fanciful but there are parallels
between the reliance on
the basics of sportspeople,
performing artists and
professional advisers.
All elite sports people
and performing artists are
absolutely dependent on
rigorous daily application of
their basic core coordination,
strength and stretching
exercises. This is the base
from which their excellence
springs. Their public
performances are totally
reliant upon their core skills,
and they work very hard on
them everyday.
Similarly, the strategic
added-value contribution
that quantity surveyors can
make must be backed up
by absolute security and
confidence on the basic data,
our basics.
Thus, I was horrified to
hear a number of our regional
university training partners
bemoaning their ability to
get QS students to attend
core measurement classes,
because they thought it was
just too dull and boring. We
must be alert to this and help
to stop this trend.
I see a unique opportunity
opening up for the chartered
quantity surveying profession
as the industry evolves over
the next five to 10 years, and
begins delivering the ‘more
for less’ 2025 agenda. What
other profession has the
measurement and analysis
skills of the quantity surveyor,
or has the mass of cost
analysis that we all maintain,
plus the unique access to
the BCIS which is the most
comprehensive cost database
in the world?
Going global
Furthermore, this year
RICS will play a leading role
in creating international
measurement standards to
cover the global construction
industry, and enable quicker
and more compatible data and
information exchange.
This is similar to the
excercise recently carried
out by the accountancy
profession to create the
international financial
reporting standards, which
delivered huge benefits.
Again, the new standards
demonstrate our reliance
on core skills and training
to deliver benefit to our
customers.
Given bold and positive
leadership the quanity
surveying profession can earn
its place at the early Project
Top Tables, the beginning of
the fight back against the race
to the bottom on fees.
The importance of
education and training
challenges the profession
to maintain close liaison
with academic partners and
regional universities. In doing
so, we should consider new
initiatives more appropriate
for the emerging markets –
including robust alternatives
to the graduate-only entry to
the profession – including the
introduction of the apprentice
quantity surveyor.
All of this will require more
employer/training involvement
and our board will focus
on this. The education and
professional training agenda
is the basis from which the
quantity surveying profession
can play a leading part in
enabling the construction
industry to deliver better built
assets that consume less cash
and less carbon. b
David J Bucknall OBE FRICS
is Chairman of the Quantity
Surveying and Construction
Professional Group Board
qsandc.professionalgroup@
rics.org

Preparing for APC
Professional events are as important before as after achieving chartered status.
Having successfully followed the APC route, Greg Allan offers some insights
What were the key things you did to
prepare for your final assessment?
Early on in the process I started
preparing my materials for the critical
analysis and final assessment. I kept
detailed notes in a diary of key projects
I had worked on, and how these had
helped me to meet the competencies.
This saved me a lot of work later on.
Next, I started focusing on my final
presentation, organising the materials to
go with it and working on improving my
presentation style. I asked colleagues
who had previously completed the
APC to be my mock panel. I delivered
my presentation to them, and was
grilled with a series of questions on a
number of occasions and the practice
was invaluable. I went into the final
assessment feeling calm and there were
no surprises.
I would also recommend filming
yourself. Watching it back really helps
you get an objective view on your
performance and style.
Did you attend any APC events, and
if so how well do you think they
prepare candidates?
I was lucky that there were a lot of
things organised through my company to
support candidates, but I still attended
a number of RICS days as these helped
build up my 48 hours of CPD per year.
Such events are particularly
important for candidates from smaller
A PC
firms, who may not have the same
kind of support and peers to turn to
for advice. Hearing first-hand experiences
of the process is invaluable, and
candidates can identify the areas
they need to focus on whether it be
spending time recording details of
projects to meet specific competencies,
or honing their critical analysis or
final presentation. Attendees also get
feedback from the assessors themselves,
which gives an idea of the questions
they will be asked and the depth of
answers required.
What major lessons can people take
away from the APC Prep Day?
Getting feedback from industry experts
on a range of subjects including the
APC process itself, professional ethics
and individual competencies. This is an
opportunity to gain great insights, and as
well as delivering the presentations, most
speakers are available to discuss further
queries face to face – another great
benefit to any candidates.
Seeing the final assessment process
in action allows you to better appreciate
the structure, and how to prepare for
your presentation and the question
and answer section. You can also
question past candidates, which can clear
up any uncertainties. Hearing feedback
from not only the interviewing candidate,
but also the panel of assessors, is the
unique feature of this process.
Image © iStock
RI CS CONST RU C TIO N
JOUR NAL
The events are also a great chance to
network. Everyone is happy to share their
knowledge and there is time between
sessions to share experiences or
introduce yourself to the speakers.
What are your top tips?
Planning and preparation is key for
the APC. Sit down with your supervisor
or counsellor early on and map out a
calendar. Get key milestones fixed,
such as having your key paperwork
done on time, and try not to let them
slip. It is much easier to keep on track
throughout the process rather than catch
up later on.
Identify the project for your critical
analysis early on, do not leave it until
the last minute. This gives you adequate
time to get all the materials together,
including your experience and log book
to draft your essay.
Your final submission is the key
element that the assessor will use to
form an opinion of you before the
assessment, so ensure that you put
enough time and effort into it to convey
your knowledge and skills. b
Greg Allan is a chartered building surveyor
at Aecom
greg.allan@aecom.com
NOVEMBER/DECEMBER 2014  9
RICS CON ST RUCT I O N E D U CATI O N
JO URN A L
Gary Strong reports on the latest developments in education
and training provision across the construction sector
On course for the future
T
he multiple stakeholder
nature of the
construction sector
leads to the often
cited view that it is a
fragmented industry.
However, it should
be noted that considerable work does
take place behind the scenes to agree
a common strategy on education and
training, driven by passionate individuals
keen to move matters forward.
This was one of the themes that led
to the formation of the cross-industry
Education for the Built Environment group
(E4BE), representing professional bodies
and other stakeholders.
It met in September to identify key
actions to take forward in support of the UK
government Construction 2025 Industrial
Stratege: five areas were identified
(see Figure 1):
bb create a common web-based gateway
for young people setting entry and
progression routes
bb develop a coordinated approach to
engage young people
bb identify critical skills and capacity gaps
across different construction sectors
bb understand and develop an action
plan to attract new entrants and retain the
workforce
bb contribute to developing an agreement
on the 2015-2019 innovation programme
and planned funding routes by 2014-15.
In the meantime, the 14-19 Construction
& Built Environment (CBE) Advisory
Committee continues to progress issues,
and there is crossover with the E4BE
goals aimed at improving the image of
the construction industry, and attracting
more young people. At the first meeting of
the committee in December 2012, it was
agreed that consideration should be given
to promoting credible 14 to 19 standards
based on the content for the Diploma in
CBE. A steering group was established to
lead a programme of work that would:
bb ensure that the standards meet the
needs of 14 to 19 learners and employers
and provide a sound basis for progression
to apprenticeships, further, higher and
10  NOVEMBER/DECEMBER 2014
professional education and training and
employment
bb ensure that the content not only
continues to provide the basis for the
principal learning qualification, but also
forms a unique standard that is a point of
reference and specification for school and
college-based 14 to 19 learning, curriculum
and qualifications in the construction and
built environment industries
bb identify and address any issues
concerning content and design, and test
that the thematic approach continues to be
supported and valued.
RICS has fed comments into the draft
standards and continues to work closely
with this committee.
The organisation continues to support
the University Technical Colleges (UTCs)
for the 14-19 age group, although UTC
Walsall disappointingly did not open in
September 2014 as originally planned. It
is hoped that it will now open in 2015. The
Studio Schools concept and the ‘adopt a
school’ scheme (http://bit.ly/ZfxYVg) are
also backed.
Meanwhile, BTEC Firsts in Construction
and the Built Environment for level
2 is being submitted for inclusion on
the Department for Education’s 2017
performance tables.
In response to the growing uptake of
building information modelling (BIM) RICS
has added the competency description
to its Built Environment pathways, and is
encouraging higher education and further
education establishments to look at the
growing need for new technology.
This competency encompasses the
establishment and management of the
information modelling systems on projects,
and covers the collaborative processes
and technological principles involved in
implementing BIM.
Examples of knowledge expected at
level 1 are:
bb understanding of BIM strategies
and implementation
bb understanding of the various
technical options and solutions for
information modelling
bb understanding of the collaborative
processes necessary for BIM adoption
bb knowledge of standard
classification systems and their
use in buildings and infrastructure
bb knowledge of relevant internationally
recognised management standards such
as Construction Operations Building
Information Exchange (COBie)
bb awareness of the interfaces between
BIM software, quantification software and
cost data sets.
Examples of activities and knowledge
comprised at level 2 are:
bb preparing a BIM execution plan
bb designing and implementing a BIM
management process
bb analysing comparative BIM solutions
bb maintaining an information model
bb agreeing and implementing the
contractual aspects of BIM such as
separate protocol
bb facilitating and managing project team
members for BIM implementation
bb using quantification software to extract
quantities from BIMs for cost estimating/
cost planning.
Examples of activities and knowledge
expected at level 3 are:
bb analysing, assessing, evaluating and
reporting on options for BIM strategies
at a corporate or project level
bb designing and advising on
collaborative strategies for the successful
implementation of BIM on projects
bb advising on the contractual and
commercial implications of using BIM
on projects
bb advising on options for software
and protocols on BIM projects
bb advising on technical information
systems requirements for BIM at corporate
or project level
bb advising on the structure of BIM.
RICS also worked with the Construction
Industry Council (CIC) on a review of the
National Occupational Standards for
Construction Senior Management, seeking
confirmation from the sector that the
standards are fit for purpose. The review
 RI CS CONST RU C TIO N
JOUR NAL

Table 1
E4BE draft action plan

Actions Outcomes Success criteria By when

1. Develop an outward facing brand
featuring key messaging including the
definition of good design aimed at a
variety of audiences. For example,
parents, young people (and different age
groups), careers advisers
Key groups identified for engagement
Description of good design
Messaging developed specifically to
communicate with key audience
members on construction/
buildings, places and spaces
Common messaging communicated March 2015
to key audience members
Improvement in understanding of
construction industry

2. Map current activity/interventions
undertaken by professional bodies,
employers, charities, SSCs, ITBs and
others, designed to engage young people
A database of organisations engaging
young people
A cross-UK map of work currently
being undertaken to engage, which
identifies gaps in provision
Clarity on what, where and how December
activity is being delivered across the 2014
UK and any provision gaps

3. Develop the metrics to measure
the success of activity and
intervention outcomes
Feedback from organisations on Activities able to benchmark against March 2015
successful activities quality standards
Principles of successful public
engagement defined. Standards
clarified for intervention activity

4. Develop a process to recognise/badge
good practice in engagement activity
Criteria for good practice
accreditation/awards for individuals,
companies or organisations.
Clarity among the public, schools, April 2015
universities on what interventions are
recognised by industry
Engagement and coordination of
activities by stakeholders

5. Identify high-level skills gaps across High-level skills framework to assist Clear skills areas identified December
professional disciplines, for example professional bodies in setting and 2015
political engagement, sustainability reviewing standards in education
and training

6. Assist and support professional bodies
(PB) in developing their value proposition
6a. Encourage, via a campaign, PBs to
define CPD curricula needs to support
career development around skills gaps
7. Campaign to encourage PBs to support
the development of crossdisciplinary
curricula including inclusive and
collaborative design
Professional bodies able to clearly
define their value proposition in
terms of benefit to society
Professional bodies better able to
communicate value to members
Higher level skills appropriate to
collaborative effort across the
industry
Higher education institutions
empowered to develop new
recognised courses
Definitions of inclusive and
collaborative design
Professional bodies better June 2015
able to encourage retention and
new members
Increase in number of professional
bodies setting core curricula
Increase in education and September
training provision which is 2015
crossdisciplinary, recognising the
changing needs of industry

8. Create a business plan to achieve the Clear plan and resource allocated Resources available to deliver December
key actions to delivery of industry objectives 2014
Create a fund to support
collaborative interventions

focused on integrating new industry
practices relating to sustainability, energy
use, low carbon and BIM.
These standards are relevant to
contracts and production managers,
commercial managers, operations
directors of smaller construction
companies, property and facilities
managers and specialist construction
managers, as well as those in
construction project management —
i.e. those who oversee projects from
inception to decommissioning, who
advise stakeholders and who form and
lead project delivery teams.
Finally, RICS held a quantity surveying Gary Strong FRICS is RICS Director of
Practice Standards and Technical Guidance
higher education roundtable discussion gstrong@rics.org
with major employers and academics
from the universities we accredit in the
UK in July, which was well attended.
Feedback from the meeting was that
both the employers and the universities
welcomed the opportunity to debate
Related competencies include
many of the leading challenges and
Conduct rules, ethics and
issues of the day, and where education professional practice
should be heading in the future. b

NOVEMBER/DECEMBER 2014  11
RICS CON ST RUCT I O N B I D CO ST R E S E A R CH
JO URN A L
Sarah Dennis explains the benefits of contributing to new contract bid cost data
Bidding for efficiency
A
s economic
recovery tentatively
continues,
organisations cite
selectivity as a
core strategy in
their bid process,
and it is clear that contractors are
becoming more risk averse. Despite
reports of smaller bid lists, competition
remains fierce, and, anecdotally, the effort
and resource required for submission is
as felt as the potential cost of attempting
to win work.
Inroads have been made by a number
of organisations, mostly in the public
sector, to improve bidding efficiency.
One such example is that of procuring
work with a view to achieving long-term
partnerships to manage all the works
and upcoming projects within a client’s
whole portfolio, rather than inviting
bids for individual projects on a one-off
basis. Often these contracts are let for a
significant number of years with the option
to extend.
The benefits of such arrangements
are clear. Long-term relationships are
maintained and developed between clients
and their subsequent contractors, and
those winning the work on this basis have
a more secure long-term pipeline.
But outside these bidding
structures, what is perhaps not clear to
organisations is what the cost of bidding
actually looks like in practice, in terms of
time, resource and money. The true cost
of a bid can be masked by its lengthy
processes, and heavy, sometimes
cross-sectional resourcing.
To provide some answers, procurement
consultancy Marketing Works and the
University of Reading have relaunched
the Bid Cost Survey of the construction
industry. The survey will collect data
around the costs and resource that
organisations incurred on bids for actual
projects. It is open to the whole industry
and companies of all sizes are encouraged
to take part.
The research was first conducted in
2003, and revealed then that tier one
contractors were spending an average
£38,000 per bid. Industry consultants
were spending an average of £3,000 on
each bid they submitted.
12  NOVEMBER/DECEMBER 2014
This year’s survey data will be analysed
by the University of Reading and
compared with the costs identified in the
2003 study. The research will also reveal
the factors influencing bid costs, and the
activities and behaviours that drive or
increase the likelihood of winning.
The aim is to identify how firms can
improve their bidding effectiveness, and
what steps they can take to streamline
their resource. Philip Collard, managing
director of Marketing Works says: “We are
getting feedback from both contractors
and consultants who have undertaken
their own in-depth analysis. Tier one
contractors are spending well in excess of
£100,000 and very often over £200,000
per bid. For consultants the previous
[2003] average bid costs were around
£3,000, and various conversations are
indicating that average could have easily
doubled if not tripled this time around.”
Strategic procurement
The government’s Construction 2025
document laid out high costs as a
weakness in the UK, “driven by inefficient
procurement and processes rather than
material input cost”. It highlighted the
fragmented nature of the industry as a
potential barrier to a strategic approach
from clients, with a trend for work to come
to market in a piecemeal, or one-off basis.
Among its targets, the document sets
out the objective, through the National
Infrastructure Plan and the Infrastructure
Cost Review, to reduce construction costs
by between 15% and 20% over the lifetime
of the current parliament. The Government
Construction Strategy reportedly delivered
around £447m in savings in 2012-13, with a
target of £1.2bn in savings set by next year.
Construction 2025 states that the
government should be a leader in
strategic procurement, citing innovation
and a greater use of technology and
new materials as potential approaches.
However, it makes it clear that the
construction industry should also bear
the responsibility of driving procurement
efficiency, and that it has as much a role to
play as its clients.
Get your bids in
RICS is supporting the Bid Cost survey
alongside organisations such as the
Royal Institute of British Architects, the
Chartered Institute of Building
and Constructing Excellence to help
identify the strategic direction for the
future of the quantity surveying and
construction industry.
As RICS director of built environment
Alan Muse notes: “Clearly, bid costs are
increasing in an industry that is trying to
be smarter, greener and leaner. Although
the RICS construction policy rightly calls
for simplified and effective public sector
procurement reform, additional skills
and training in industry are required to
minimise these wasteful costs.”
Members are invited to take part in
the confidential survey to encourage the
widest possible cross-section of industry
response. It takes around 10 minutes to
complete, and will ask for information on a
project for which you have recently bid —
it does not matter whether your firm won
the work.
All results are published in aggregate
form and the survey does not ask
for company names or project titles.
Respondents are invited to supply their
email address to receive a free copy of
the summary findings to see how their
company is performing in relation to
others in the industry.
Collard adds: “Previously we found
that the total work winning costs for
consultants was typically 8% to 10% of
their turnover, so by embedding efficient
and selective work winning strategies,
there are easy opportunities to increase
margins by 2% or more.”
The survey is live until 15 November
at http://bit.ly/1qEPM6r. A full report
of the findings and the implications
will be published in a forthcoming issue
of the journal. b
Sarah Dennis is a Senior Product Manager
at RICS
sdennis@rics.org
Related competencies include
Procurement and tendering
and team working
RICS CON ST RUCT I O N C O L L A B O R ATI V E WO R K ING
JO URN A L
Team players
In the second article on the Manchester Town Hall
complex renovation project, Paul Mulcahey, Rob
Higginson and Thomas Moore explain how the
D
complex team arrangements worked in practice
uring the very
early stages of the
Town Hall Complex
Transformation
Programme, the
project team sought to
implement a number
of fundamental principles around
collaboration and partnering. Manchester
City Council had successfully delivered a
number of major programmes adopting
this approach, finding that the use of
joint offices and NEC3 Engineering and
Construction contracts enabled project
teams to adopt a shared approach to risk,
issue management and project delivery.
This creates an environment that enables
people and teams to share information
and identify solutions to situations before
they escalate. Efficiency and relationships
between all parties are improved,
which ultimately delivers real benefits
to a project.
Manchester’s Building Schools for the
Future and Academies programme was
one such collaborative scheme where
the council, Mace and Laing O’Rourke
had brought client representatives,
programme and project managers,
commercial teams and a number of
framework contractors together on one
floor of the council’s offices. However, the
town hall complex project provided the
perfect opportunity to take this approach
to another level.
On starting work, the council set out to
create an environment that encouraged
success. It allowed the whole team,
especially designers, engineers, project
and commercial managers to work
efficiently and effectively within the
co-located office, establishing a solid
foundation for the way the programme
was to be delivered.
The early members of the team, which
included Mace and AECOM, set about
ensuring that design and engineering
teams could become embedded
14  NOVEMBER/DECEMBER 2014
and engaged in the collaborative
philosophy, serving as a model office
for the transformation element of the
programme. The environment was used
to test and showcase furniture and
technology that could and would be
incorporated in the final designs.
These included meeting room
management systems, social and
communal areas for staff to eat and
meet and smaller individual meeting
spaces for quiet working.
The process
The procurement process for design
teams, advisers and eventually
contractors was developed to select
organisations and people that could
demonstrate their ability, understanding
and experience of working within an
NEC framework and a collaborative
environment. It also sought commitment
from those organisations to co-locate
their resources into the collaborative
One Team office.
Naturally, there were a number of
challenges to face in bringing the various
organisations and disciplines together
on such a multifaceted programme.
A number of team members had
never worked in such a transparent,
collaborative environment before, and
The co-located
office also created
an environment
where formal meeting
structures were
supplemented by
informal meetings
and discussion
so it was important to break down the
negative perceptions and barriers that
may have existed in a more traditional
working environment.
Through focused training and
development, mentoring and coaching, as
well as using open forums and feedback
sessions to help with the reorganisation,
these barriers were lifted. That being
said, the One Team environment did not
suit everyone’s skills and behaviours.
Brave and honest decisions were made
where necessary allowing individuals to
put their skills to more effective use, and
improving the overall balance of the team.
Working well together requires healthy
challenge and this was encouraged.
The co-located office also created
an environment where formal meeting
structures were supplemented by
informal meetings and discussion.
While these informal meetings had the
potential to upset the smooth running
of the programme, it was managed
through robust governance and project
controls, such as change management,
risk management and issue resolution,
together with the extensive use of design
information logs, creating the essential
audit trails. This informal approach also
allowed the project to harness

the boundless creativity of the group.
By removing their ‘company hats’,
people were freed up to focus on what
was good for the project rather than their
individual organisations.
Rob Higginson, commercial leader
for Laing O’Rourke, sums up this
philosophy: “I’ve always been used to
owning the commercials, doing my job
right and doing that independently. The
real epiphany on this project was the
realisation that I did a better job for the
project when I shared that ownership,
opening up the challenges to the wider
team and working with them to find
solutions. This led to unprecedented
transparency and genuine collaboration
through shared goals.”
The tools
The early adoption of the NEC3
procedures by project and commercial
managers from the council, AECOM
and Mace during the pre-construction
stages brought the design team to a
world of early warnings and risk reduction
meetings, which enabled changes
to be discussed and implications on
programme, cost and quality to be
considered. As well as the main contract,
the design team appointments also
used the NEC suite of documents and
so there was a consistent language
and philosophy in all agreements. This
meant that the team became familiar
with the generation of early warnings,
risk reduction meetings, compensation
events and project managers instructions,
enabling the implications of such
communications and requirements to
be shared and understood.
The programme also adopted a
collaborative software platform in the
form of BIW/CONJECT, as an information
warehouse to store electronic data
and aid the management of design
information. This also provided an
electronic platform for the administration
of the contract so that everyone in
the team could see communications,
instructions, reports and the audit
trail. Additionally, periods for response
were easily identified, helping the
team to communicate more effectively.
This assisted the commercial team
in providing a robust commercial
reporting structure through the tracking
of contractual communications (early
warnings, compensation events).
This approach continued with the
appointment of the principal contractor,
Laing O’Rourke, and its introduction to
RI CS CONST RU C TIO N
JOUR NAL
3 1 Refurbished
original bronze
windows
2  The green roof
of the Town Hall
Extension
3  Remodelled
ground floor of
Central Library
the collaborative brand provided a further
opportunity to continue the training and
development of team members on the
use of NEC, CONJECT and building
information modelling.
Laing O’Rourke was initially appointed
under a two-stage process, and during
the second stage the project continued
to use early warnings notices and
compensation events to draw the teams
in to regular risk reduction meetings. This
allowed the team to find the best solution
to risks that were generated, taking time,
cost and quality into account.
In order to deliver target costs for
the scheme, the scope of works was
broken down into a series of packages,
which formed the basis of four clusters
responsible for structural works,
internal finishes, building services and
external elements. Teams consisting
of Laing O’Rourke package managers,
procurement specialists, planning
managers and commercial resources
– which also included an AECOM
commercial manager and a Mace/MCC
project manager – were established for
each cluster, based together in a part
of the office. The clusters were also
underpinned by design team resources
from Ryder Architecture, Ian Simpson n
NOVEMBER/DECEMBER 2014  15
 RICS CON ST RUCT I O N C O L L A B O R ATI V E WO R K ING
JO URN A L
The One Team
made considerable
investment in
fit-for-purpose controls
and governance
founded on NEC
procedures and
timescales
n Architects, URS Scott Wilson and BDP
with support from other advisers such as
WSP, HOK Conservation and Arup Fire
and Security.
The procurement of work packages
was carried out with AECOM and Laing
O’Rourke working together to provide
benchmarking information, agree tender
documents and also to evaluate tenders
in an open book manner, building trust
and confidence within the team. Tender
reports were jointly presented for approval,
and a collective responsibility was formed
within each of the clusters. This was an
important foundation stage for agreeing the
scope and standard of work, as well as the
commercial framework required to deliver
the work. It also assisted the development
of robust risk registers for each element of
works, which were then included within the
target cost.
This joint approach continued
through to the post-contract activities,
16  NOVEMBER/DECEMBER 2014
which provided an unprecedented high
level of transparency in appointing
subcontractors, reviewing monthly
assessments/work done to date and
agreement of change and subcontract
final accounts.
Each time a major package was
approved and the supply chain partner
appointed, they were inducted and
embedded into the One Team approach,
whether in the ’clean boots’ office
environment, the ‘dirty boots’ site
cabins or on site. This approach was
fully embraced by NG Bailey, which
brought its in-house design team,
commercial resources and planners into
the collaborative office, embracing the
approach to project delivery at an early
stage. This set the example for the wider
team to follow, which in turn brought
a new and improved dynamic to the
atmosphere and success of the project.
The outcomes
The One Team made considerable
investment in developing fit-for-purpose
controls and governance founded on
NEC procedures and timescales, and
these were captured and communicated
through a project procedures document.
Using the collaborative software system,
contract compliance could be measured
and issues quickly addressed as they
arose through focus and escalation.
This was a real challenge with more
than 2,000 early warning notices,
compensation events and instructions.
This control, with whole team
buy-in, supported the Day 1 final account
approach, ensuring that decisions
were based on real time, robust
technical and commercial solutions.
Through this rigour the team reported
and committed to a level of gain share
very early in the project, maximising
the value of the additional budget for
reinvestment in the project. Ultimately,
they delivered a final account prior to
completion, freeing up resource from the
typically protracted, high cost, low value
final account process.
The collaborative approach and
no-hats mentality meant that traditional
man marking was avoided, resulting
in a lean team with clear roles and
responsibilities. For example, within the
commercial team, while there were clear
responsibilities for cost and value, the
usual delineation between client and
contractor-side commercial management
was blurred. The resource was shared to
the extent that AECOM worked directly
on the commercial management of a
number of key work packages, including
mechanical and electrical services and
furniture, fixtures and equipment.
The final piece of the puzzle
commercially was the final audit of Laing
O’Rourke’s management accounts for the
project. The total transparency and open
book approach, with shared ownership
of financial control, ensured that this
crucial piece of governance went by
almost unnoticed. Validation, if ever it
was needed, that with no alarms and no
surprises, One Team delivers. b
Rob Higginson is Commercial Leader at
Laing O’Rourke Construction
rhigginson@laingorourke.com
Thomas Moore MRICS is an Associate at
AECOM Cost Management
thomas.moore@AECOM.com
Paul Mulcahey is an Associate Director at
Mace Group
paul.mulcahey@macegroup.com
Related competencies include
Team working

In the first of a three-part series on stress in construction,
Matthew Maslen argues that the macho culture of the
industry means that dangers to health is too often ignored
The stress timebomb?
C
Construction project
management is demanding,
complex and varied. It is also
known to be more stressful
than work undertaken by
managers in other disciplines.
With long hours and tight
schedules, construction
project managers can
reach a syndrome of mental
exhaustion known as
‘burnout’.
During my research into
stress in the construction
industry I was often asked
– “Can I see a copy of
Image © iStock
the results, for my mate’?
Sometimes it was genuine
but sometimes respondents
hid their interest behind
‘their mate’. Mental illness
is becoming destigmatised
in the UK workplace but
my research suggests the
construction site is not a very
enlightened place. As one
site manager told me: “I
would get onto site at 3am
because I couldn’t sleep, and
by 6am there would be six
people queuing at my door
with questions.”
My own experience of
stress coloured the research,
and allowed me to become a
stronger and better person.
But an individual may not be
able to recognise their own
stress or the stress of others.
Stress is believed to
be a growing problem
in construction, and the
limited research has gone
quickly out of date. Some
have labelled the situation
HEA LTH A ND SA F ETY
a ticking timebomb. Total
confidentiality in my study
allowed respondents to feel
secure and provide personal
data about themselves. They
were only ever asked their
job title.
Stress physiology
Stress is defined simply as:
“A state of mental or
emotional strain or tension
resulting from adverse or
demanding circumstances.”
Stress can manifest itself
in an individual with signs
such as high blood pressure
and increased cholesterol.
Symptoms include muscle
tension, sweating, insomnia
and sexual difficulties. With
prolonged exposure, chronic
stress leads to anxiety and
depression. A stressful
stimulus to the human body
can activate two stress
hormone axes.
The Sympathetic-Adrenal-
Medullary Axis is fast and
NOVEMBER/DECEMBER 2014  17
RI CS CONST RU C TIO N
JOUR NAL
short acting offering a ‘fight
or flight’ response. Heart
rate, blood pressure and
breathing rates all increase. In
contrast, the Hypothalamic-
Pituitary-Adrenal Axis (HPA)
is slow and its effects are
long lasting. It controls the
body’s response to stress by
regulating body processes
such as digestion and the
immune system.
When the HPA axis is
dysregulated, diseases such
as anxiety and depression
can occur. It is activated in
different ways during chronic
stress, and is especially
sensitive to non-physical
stressors involving a social
context. One of the best tests
is monitoring the hormone
cortisol in saliva.
Available literature
Stress research is a large field
with many studies attempting
to understand the complex
relationships between stress n
 RICS CON ST RUCT I O N
JO URN A L
Table 1
The Yerkes Dodson Curve
n and behavioural, endocrine,
immune and circulatory
responses. Only selected
scientific research information
relates specifically to stress
in construction.
The Health and Safety
Executive (HSE) reported in
2012 that an estimated 40%
of all work-related illness
was down to stress, with an
enormous number of working
days lost.
High levels of stress have
been described in roles where
there is high demand and low
control. It leads to high staff
turnover, absenteeism and
decreased productivity. These
problems are exacerbated by
long hours and poor coping
mechanisms such as drug
and alcohol abuse. Successful
coping mechanisms include
confrontation, establishing
a support system and
developing techniques
for relaxation and time
management.
A paper by Madine in 2000
described the industry as
a macho culture and that
this was a real barrier to
assessing stress levels. It
appeared that admitting to
stress would be tantamount
to admitting a weakness. This
lack of admission has been
reported in a number of
other studies.
Madine further described
an epidemic of stress due
18  NOVEMBER/DECEMBER 2014
H E A LTH A N D S A F E TY
to constant initiatives to
improve productivity while
cutting costs. Others say the
hostile male environment with
accompanying conflict and
competition is hard
to manage.
A macho culture was
further shown in a 2007
HSE survey of construction
professionals. Only 5%
reported experiencing
stress. Later, when asked
in a different way in the
same study, the majority
reported their jobs as being
“extremely stressful”. This
figure contrasts with a
2006 Chartered Institute of
Building survey of 1,000 UK
construction workers, in which
68% of respondents reported
suffering from stress, anxiety
or depression.
The only comprehensive
audit of stress in
construction project
management was by
Sutherland and Davidson in
1993. They described that
personality type, support
systems and the level of 10
key stressors determined
the respondent’s experience
of stress. These included
time pressures, volume
of paperwork, inadequate
communication and
insufficient time at home
with the family.
The HSE’s 2009
guide for employers The
management standards for
stress was based around the
standardised five-step risk
assessment format. It is
a blunt, generic and
ineffective proposed
solution to a complicated
and diverse problem.
Furthermore, there is no
evidence of uptake or efficacy
of the standards. Has stress
ever been thought of as such
a risk? Has the HSE ever
brought a prosecution relating
to work stress? The answer
is no because health issues
(apart from asbestos) are
neglected in favour of safety
issues. Stress is not being
taken seriously.
Psychology theories
In 1959, cardiologists
Friedman and Rosenman
demonstrated a link between
what they called Type A
personalities and coronary
heart disease. Traits included
an intense sustained drive
to achieve, an eagerness to
compete and a persistent
desire for recognition
and achievement. They
also postulated a Type B
personality who exhibited
no Type A behaviours. For
example, an absence of drive,
ambition and no sense
of urgency.
From this link to heart
disease a relationship was
demonstrated between
stress and psychological
strain. It was shown that
this relationship could be
moderated by personality
characteristics, and that a
Type B personality could offer
protection from stress. It is
largely thought that a Type
A personality would increase
Matthew Maslen is an Assistant Project Manager and CDM-C at
Norman Rourke Pryme in Exeter
matthew.maslen@nrpcc.com
Related competencies include
Managing people
an individual’s susceptibility
to stress. This is supported
by the Sutherland and
Davidson (1993) study where
Type A construction project
managers had significantly
poorer levels of mental health.
However, there are also
other studies that link a Type
A personality with greater
achievement and success,
allowing them opportunity to
climb the occupational ladder.
A level of optimum stress has
been postulated.
Yerkes Dodson curve
First proposed in 1908,
the Yerkes Dodson curve
promotes a relationship
between stress and
performance. It suggests
low performance occurs
when the subject is
under-stimulated, an optimum
level of performance at a
medium stress level and
poor performance as stress
becomes to much (see
Table 1).
This suggests that stress
can be useful to a point
but detrimental when
raised too high. It has been
postulated that a resistance
to stress is shown by a shift
of the graph to the right and
susceptibility shown by a shift
to the left. b
The next two parts in
this series report on
findings from Maslen’s
original research. The study
sampled 110 construction
personnel in three groups;
project managers, site
managers and site operatives.
It looks at their personality
types and their experience
of stress.
RICS CON ST RUCT I O N LEGAL HELPLINE
JO URN A L
Kevin Joyce looks at some of the key factors in selecting the
appropriate procurement method for the delivery of projects
On the right lines
O
ne of the key
determining factors
for the outcome
of projects is the
procurement method,
and the choice of
contract depends on
certain conceptual considerations for
the employer:
bb time economy or time certainty? complete, this provides the best
bb price economy or price certainty?
bb general fitness for purpose
obligation or specific standard of design
to ensure quality?
Design and build
At one end of the scale is the design
and build form of contract, where
the employer has less control in the
design and construction process but
has the benefit of much greater price
certainty. This form of procurement
became increasingly common during
the recession, and is typified by the
contractor taking both design and
construction responsibility based only
on a set of functional and aesthetic
requirements developed by the employer.
From the employer’s perspective, the
single point responsibility and greater
price certainty are major advantages.
This means that the risk of time and cost
overrun sits with the contractor, subject
only to very few adjustments (such as
for the employer’s changes/variations to
their functional requirements).
The disadvantages, however,
include the loss of design control,
the absence of consultant support
and the inflexibility of the contract in
accommodating design changes.
Two-stage tendering and early
contractor involvement are variants
of the design and build approach,
and enable the contractor to provide
input at a much earlier stage, better
enabling the parties to identify and
manage risk.
26  NOVEMBER/DECEMBER 2014
Traditional procurement
In traditional procurement, the employer
enters into contracts with various
consultants to design the project,
and signs a separate contract with a
contractor for the construction work.
The main advantage is that if a lump
sum payment mechanism has been
selected and the design is largely
opportunity for securing a definite price
with limited opportunity for cost increases.
The employer can also exercise a greater
degree of control over the quality/
development of the design.
However, the division of responsibility
between the consultants and the
contractor can make it difficult to
ascertain responsibility for many problems,
ranging from delays in construction to
defects in the completed project. This
method of procurement is also slow
and inflexible on a significant project,
making it difficult to take advantage of
market changes.
Furthermore, because both the
processes involved in construction and
the projects themselves have become
increasingly sophisticated (and more
and more work is being undertaken by
specialist subcontractors), the distinction
between responsibility for design and
responsibility for construction is proving
increasingly artificial.
Construction management
In construction management forms of
contract, the employer retains control over
the design and construction process but
also the risk as to time and cost.
The main advantage is that projects can
be fast-tracked and early packages let to
trade contractors, enabling construction to
start before the design of later packages
is completed. This overlap between design
and construction saves time, and allows
early input to the design process from the
construction manager and specialist trade
contractors, bringing consequent savings
in time and costs.
However, construction management
also has a number of disadvantages.
The main difficulty is that, in the quest
for speed, the employer will not have a
fixed cost for the project prior to the last
package being let.
Collaborative contracts
and partnering
At the other end of the scale are
collaborative and partnering contracts,
such as the NEC3.
These contracts accord with
principles of integrated working,
effective communication and good
project management. They focus in
non-adversarial style on the causes and
management of risk, rather than its effect
and the most common forms – the target
cost – are intended to align the parties’
commercial interests to ensure that the
project is a success.
The contractual mechanisms, such as
the early warning notices and the accepted
programme, are designed to ensure that
the contract is operated on an open,
‘real-time’ and transparent basis so that
both parties are better able to identify,
manage and mitigate risk.
The uncertainties in construction
and infrastructure projects, such as the
increase in materials prices or unforeseen
grounds conditions, will always exist, but
the chances of the successful delivery are
greatly increased if a proper appraisal of
the procurement options takes place at the
outset. Naturally, the appropriate strategy
and accompanying risk management
structures should also be put in place. b
Kevin Joyce is a Partner with law firm
Pinsent Masons LLP and runs a free Legal
Helpline Service for RICS members
kevin.joyce@pinsentmasons.com
Related competencies include
Construction technology and
environmental services