Stephen Gruneberg, reader in construction economics at the University of Westminster, sets out his alternative paradigm and six priorities for a new industrial strategy.
Construction 2025 has targets of a 33% reduction in construction costs, a halving of delivery times and emissions, and exports to be increased by 50%. Of course, the construction targets could be achieved by lowering specifications and building inferior buildings speedily, at the expense of quality, working conditions, wages and the environment.
Targets skew the industry towards the contradictory aims of cost reduction and speeding up delivery, instead of producing quality buildings, improving productivity, training, and providing the built environment society and the economy requires, such as adequate housing and infrastructure.
The time has come for an approach to strategic planning that replaces targets with priorities.
Six broad operational objectives form the core priorities of the proposed alternative industry strategy, which would be overseen by a new government department, the Ministry of Construction, supported by four industry-driven groups responsible for its detailed development.
First, the industry should be seen as competitive, as measured by the international sales of UK-based firms, regardless of their country of ownership or registration. Only by competing with the best firms in other countries can the quality and value of UK construction be seen as keeping up with the highest international standards. The Ministry of Construction could publish an
annual report that monitors competitiveness, and assesses exports and import penetration.
"Construction strategy needs to move away from a target-setting culture, where no one can be held responsible for failing to adhere to the targets"
In addition, a new International Construction Group (ICG) would focus on the international competitiveness of construction, both at home and abroad. International competition forces firms to raise the quality of their output to international standards in order to sell. In a global construction market it is vital for firms to meet international standards of quality, productivity and delivery.
Awareness of international competitiveness – even for those firms that are not directly engaged in overseas work – would serve to improve performance in the UK.
The second priority is a quality output, measured in terms of the satisfaction of clients. Complaints and disputes must be monitored and recorded at industry level. The Ministry of Construction would report annually on satisfaction.
Third, the built environment industry needs to be perceived as efficient. Construction firms and professionals should not only produce what clients require but should seek to surpass their requirements and expectations. Those who do should be recognised with awards, such as the CIOB’s Construction Manager of the Year Awards.
Moreover, the built product itself needs to meet sustainability criteria. Again, performance – including productivity – of the built environment and the industry, should be reported on.
One of the existing strategy’s objectives is to improve the construction industry’s image. But the term “image” implies appearance rather than substance. Reputation, on the other hand, is based on performance. It is valued and recognised by construction firms and their clients. The priority should be to create an excellent reputation through work produced, regardless of whether they are routine works and projects, or iconic buildings and structures.
The London skyline, Olympic Games and regeneration of UK cities demonstrate that we can produce buildings and structures that are admired the world over. An annual survey and report of outstanding construction achievements should be published and celebrated, but with a critique of any serious failures.
Fifth, people matter. Those who work in the industry should deliver to high standards of workmanship, take pride in their work and have a professional attitude to co-workers, clients and others. Qualifications, status and recognition should be reflected in pay scales, and terms and conditions. The image of the industry cannot improve until the people who work in it are respected and what they build is appreciated.
Be productive
Finally, the construction industry needs to be a productive and innovative wealth producer. Its output is a key component of the productive capacity of the country. Productivity is ultimately the source of wages, profits and the standard of living of all those in construction, and labour productivity is improved the more plant and equipment is used. The Ministry of Construction could publish an annual report on productivity.
Construction strategy needs to move away from a target-setting culture, where no one can be held responsible for failing to adhere to the targets, and instead should be based on continuous improvement and review.
This alternative industry strategy seeks to challenge and enable firms throughout the industry to find their own solutions by putting them on a path of continuous improvement.
