Report of the Constructing Excellence members’ forum on 14 February 2017
Sixty members and guests attended the CE Members Forum on February 14th to hear from Mark Farmer on his report Modernise or Die (#FarmerReview), Darren Richards of CE Midlands on the state of the offsite manufacturing sector, and two speakers on application in the education sector, Richard Crosby of Blacc and the Education Funding Agency and Simon Reid of Lungfish Architects and the Scape integrated team. The agenda is attached as Annex A, attendees are listed at Annex B, speakers’ slides are available here, and we thank everyone for their participation.
The objectives of the event, beyond providing the usual learning, sharing and networking benefits of Constructing Excellence’s pan-industry forums, were to:
- Understand the drivers and opportunities for a step-change in offsite/pre-manufactured industrialised solutions in the sector;
- Develop a work programme to support the implementation of Mark Farmer’s report, and in particular to inform members’ strategies for high-productivity pre-manufactured propositions.
A discussion session invited roundtable discussion on five questions which emerged during the afternoon. This report summarises the feedback from this last session as well as some of the drivers and challenges discussed during the afternoon, and develops an outline work programme to be delivered in collaboration with other partners.
- Opportunities and barriers
- Drivers for change – or why now?
A number of factors are convening to make offsite construction a more attractive solution than ever before. These include:
- Housing Shortage – a shortage of good quality affordable homes and the growth of the Private Rented housing sector (PRS);
- Skills shortage – an ageing workforce with traditional skills, lack of new entrants to the construction sector and limitations on labour mobility caused by BREXIT;
- Technology – opportunities to fully exploit the emerging digital agenda around BIM and big data;
- Client demand – increasing client demand for project certainty and predictability as well as performance transparency.
Government has responded to these drivers with a range of policy interventions including the Housing White Paper and the Industrial Strategy with its focus on productivity and high value manufacturing as championed by the Construction Leadership Council.
The Farmer Review specifically looks at industrialisation and delivery through pre-manufactured methods. These can help address systemic failures including low productivity, low predictability, low margins, adversarial pricing, lack of collaboration & improvement culture, lack of R&D and investment in innovation and poor image.
A number of barriers have held back the wider take up of offsite construction:
- Scale – factory production requires consistent/high utilisation of capacity in order to be cost-effective;
- Visibility of forward pipeline to de-risk investment in production facilities there needs to be a high degree of confidence in future demand;
- Disruption to the status quo of the usual design/procure/construct process is perceived to add risk and uncertainty;
Quality –clients require confidence and assurance of quality (especially with regard to gaining insurance) this can be done through standards and certification.
- Proposed work programme
The following five questions emerged during the speakers’ sessions, and breakout groups convened to discuss each one.
- The Influencing the need for a common pre-manufacturing ‘interoperability’ protocol. Avoiding the ‘VHS versus Betamax’ choice. We need to progress as a systems engineering challenge.
- Collaboration led procurement models to enable true BIM enabled & integrated pre-manufacture led working.
- Appetite for ‘calling people/firms out’ for poor behaviour – ‘name & shame’ to help drive behavioural change
- Contributing to what needs to be in Construction’s “Sector Deal” as part of Industrial Strategy response – CLC interface
- Developing a quantified benefits case(s) for clients to commit to higher levels of pre-manufacturing including data / feedback / evidence system.
A plenary feedback session captured the views of these groups, and towards the close of the event a number of attendees volunteered to meet again as a task group to take forward this feedback and discussion to develop a detailed plan of work. The following is a starter for 10 for that group to develop.
|Activity||Output/measure of success||Lead/proposed partners|
|Demand pipeline||A forward 3-year+ pipeline by sector in which supply chain has confidence, from public (HCA, EFA etc) and private sector where possible||IPA (existing govt pipeline)
|New delivery model||Set out the new delivery model, the integrator role, integrated business model and procurement processes||CE theme groups
RIBA digital plan of work
|Better articulation of the business case||Better evidence on the benefits for customers, suppliers etc – predictability, productivity, skills, data transparency; time, cost, quality; profitability
Develop KPI and baseline data for ”Pre-Manufactured Value (PMV)”
|Case studies, demonstrations and awards||A set of regionally-sourced sectoral case studies, and demonstrations where new approaches have strategic significance.
A new category in the CE annual awards programme from 2018, eg Offsite Project of the Yr.
|CE Regional Network
|Influence the ‘Sector Deal’ under Industrial Strategy||Support CLC to get the best deal with HMG||CLC|
|Influence Construction ‘Catapult’ to support sector innovation||A new centre and focus for innovation in the digital and industrialised built environment.
To feature a hub and industry supply chain ‘cluster’
Manufacturing Technology Catapult
|Influence the investment community||Dialogue with investors, insurers etc||BuildOffsite (BOPAS)
CE Funding & Finance TG
|Events – factory tours, conferences||A coherent sector-wide programme of learning events delivered mainly by pulling together third-party organisations||Radar
CE Regional Network
|Comms plan||Web page, blogs, social media, press etc||CE/BRE
|Resources for the above activity||A resourced impactful plan of work by CE||Existing CE theme groups, Univs (CEHE), BRE Trust|
Annex A. Agenda of the CE members forum on February 14th
Supporting the Farmer Review – how to implement offsite solutions
Constructing Excellence Members’ Forum
14th February 2017
Pinsent Masons, 30 Crown Place, London EC2A 4ES
1.00 Networking lunch
1.30 Don Ward, Constructing Excellence and Graham Robinson, Pinsent Masons – intros and welcome from host
Mark Farmer, CEO at Cast Consultancy and author of the Farmer Review
Darren Richards of Built Environment Hub on the current state of the offsite market
Networking/Tea and coffee break
Richard Crosby, Partner, Blacc Consulting LLP on the challenges of pre-manufactured solutions
Simon Reid, Managing Director of Scape’s Lungfish business “5 years and counting – Our modular story, the highs and lows of delivering school places”
Breakout session on adding value
– how should Constructing Excellence add value in this space?
Plenary feedback and prioritisation of a work programme for Constructing Excellence
Annex B. Registered attendees
|Madoc Batcup||Managing Partner||Synaps Partners LLP|
|Mark Beirne||Director||Birch off site Solutions|
|David Bleicher||Principal Research Engineer||BSRIA|
|John Blyde||Director||Module 200 Limited|
|Vaughan Burnand||Managing Director||VEB Lean Ltd|
|Tim Carey||Director||Willmott Dixon|
|Roy Casey||Director||Success Train|
|Jackie Casey||Director||Success Train|
|Paul Cooke||Director||Higgins Construction Plc|
|Andrew Cowan||Real Estate and Property Consultant||BRE|
|Richard Crosby||Partner||Blacc Consulting LLP|
|Ken Davie||Head of Offsite & MMC Research||Carillion|
|Adrian Farley||Commercial Director||Polypipe Terrain|
|Mark Farmer||CEO||Cast Consultancy|
|David Ferroussat||Infrastructure Procurement Director||Heathrow Airport|
|Ian Fletcher||Director of Policy||BPF|
|Paul Greenwood||Managing Director||Greenwood Consultants Limited|
|David Hawkes||Policy Manager||CIOB|
|Richard Henman||Programme Delivery Manager||nationwide Building Society|
|Phil Henry||Market Development Director||Polypipe Terrain|
|Jasmine Hui||graduate engineer||waterman|
|Peter Jackson||Quantity Surveyor||Kent County Council|
|Craig Johnson||Regional Account Manager||Trimble/Tekla|
|Milica Kitson||Chief Executive||Constructing Excellence in Wales|
|Robert Knight||Operations Director||igloo|
|Martin Lawton||Director – Public Sector||Blacc Consulting LLP|
|John Lorimer||Director||JLO Innovation Ltd|
|Paul Marsden||Specification Sales Manager||Baxi Commercial|
|Peter McDermott||Constructing Excellence NW||University of Salford|
|Charles Mills||Head of Stations Renewals & Enhancements||Transport for London|
|Brendan Morahan||Director||Invennt Ltd|
|Alison Nicholl||Associate Director||Constructing Excellence|
|Kevin Payne||Project director||Westfield|
|Ben Pritchard||Consultant||Invennt Ltd|
|Colm Quinn||Project Manager||Constructing Excellence|
|Dale Rees||Southern Construction Framework Manager||Hampshire County Council|
|Simon Reid||Managing Director||Lungfish|
|John Rich||Partner||SRA Architects|
|Darren Richards||Director||Built Environment Hub|
|Graham Robinson||Global Business Consultant||Pinsent Masons|
|Mick Tetley||Performance Improvement Manager||Galliford Try|
|Jenny Tippetts||Senior Project Manager||Nationwide Building Society|
|Keith Waller||Senior Advisor||Infrastructure & Projects Authority|
|Don Ward||Chief Executive||Constructing Excellence|
|Paul Wilkinson||Director||pwcom.co.uk Ltd|
|David H Williams||Chairman||Management Process Systems|