CLC launches Procuring for Value report

The Construction Leadership Council (CLC) has issued a rallying cry alongside its new Procuring for Value report.

The CLC call comes hot on the heels of a government push for improved productivity and the launch of the Construction Sector Deal, and calls for an “outcome based, transparent and efficient industry”. Particular attention has been made to procurement policies in the light of Carillion’s collapse.

In the new industry report, authored by CLC member, Global Board Director of Rider Levett Bucknall (RLB) and industry expert Ann Bentley, Bentley promotes a sustainable business model for the whole supply chain. The three-pronged approach includes procuring on the basis of whole-life value and performance; measuring and rewarding good performance and; “getting the basics right”, including fairness of cash-flow and reforms to the practice of retentions.

With questions over the UK economy and productivity post-Brexit, the report highlights how important construction and the built environment is to the economy, with over 10% of the UK workforce – some £600Bn contribution to the economy per annum.

Procuring for Value outlines how the industry needs to change to improve productivity, end user satisfaction and safeguard those in the sector. It also estimates that a more “joined up” approach to procurement could result in a saving of over £ 15Bn per annum.

The report builds on the Sector Deal’s strategic principles of Digital, Manufacturing and Whole-life Performance and makes practical, long-term recommendations for both government and industry to facilitate change. The report is touted as the next ‘Modernise or Die” report on the industry by Mark Farmer and extends existing government policy to encourage an integrated industry approach.

Ann Bentley comments: “The Procuring for Value report is a fundamental strand of our policy, outlining the best practice for the industry delivered through standardisation and digital technologies. Construction needs to change. Every rung of the supply chain needs to take responsibility and understand their impact on the industry and the larger financial picture that is at play. The report highlights as an industry how we can do just this.”

The Procuring for Value report is available to download from the CLC website.

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