This report sets out the interim findings for the Market Response Workstream of the Value Toolkit. The Workstream aims to engage closely with key parts of the supply chain to identify -and where possible to resolve – actual or perceived barriers to the adoption of value-based decision making. Constructing Excellence has brought together a team comprising significant industry commercial expertise,
emerging future leaders and leading academics.
Phase One has focused on creating conversations on the benefits of value-based decision making for all corners of the sector. These findings are based on 12 structured online workshops, held in partnership with industry bodies and associations, involving 131 participants from 93 organisations.
We have found significant enthusiasm for value-based decision making and a hope that with the alignment from government and emerging technologies this time we have the opportunity to embed it across the industry. There is however a fear, especially given the current economic uncertainty, that organisations across the sector will revert to type with tender price being the main driver and procurers focusing on cost.
Engagement and training will play key roles in the adoption of the Value Toolkit. Clear and consistent language will drive understanding and uptake. Respondents, who had greater experience and knowledge of value-based decision making, perceived less risk and greater opportunity. There was clear recognition of the need for training to ensure consistency.
Our initial research on insurance products reveals it is not seen as a blocker, but rather value-based delivery models offer an opportunity to re-consider how programmes, projects and risks are insured. In terms of contracts organisations do not want new forms of contract, they want to see existing forms implemented in a fairer and more consistent way that maintains the golden threads and incentivises value and manages risk.
The next phase will be a deep dive into contracts and insurances with targeted workshops and one-to-one structured interviews followed by targeted workshops on evaluation and measurements in December. This will inform an industry-wide questionnaire in January 2021 with UK Construction Week. A number of factors are aligning, including the launch of the Construction Playbook, to drive through a shift to value-based decision making. There is a clear appetite from the industry for this shift and the opportunities it offers as well as appreciation for the opportunity to input into the development of the Value Toolkit. This is backed up by the support the Toolkit has from the key procuring departments and significant clients throughout the sector.
We have a real opportunity to work collaboratively to grow and nurture an active and vibrant #ValueToolkit community!
To find further information, including the interactive graph describing the process and step-by-step approach, please go to the Construction Innovation Hub #Value Toolkit