Recommendation 30: Possible Delivery Mechanisms

12.4 Delivery mechanisms imply that there is consensus on the way forward. I cannot assume that before the Report is even published! I recommend a step-by-step approach:-

1. A Standing Strategic Group of the Construction Industry should meet twice a year, chaired by the Secretary of State or another DOE Minister. Its membership should be drawn from the Presidents (Chairpersons), Chief Executives and possibly one other representative of: the Construction Clients' Forum; the CIC; the CIEC; and the CLG. It need not be concerned solely with the Review. It can also be the principal Forum for bringing clients and the industry together with Ministers to discuss matters of interest and importance relating to construction. A similar consultation body already exists, but client representation should be added to it.

2. An Implementation Forum should be set up, consisting of 1 or 2 Assessor representatives from each of the organisations on the Standing Strategic Group and the DOE, under a neutral chairperson. Between its first meeting (hopefully within a short period after publication of this Report) and the end of 1994, it should seek to advise the Standing Strategic Group:-

a. which of the recommendations it believes can be implemented by existing agencies without any additional structures;

b. on the timescale for drafting and introducing the Construction Strategy Code of Practice, the Construction Contracts Bill, registration, the new arrangements for selection of consultants and the restructuring of contract conditions;

c. whether it favours the formal setting up of an Agency similar to that in Australia and, if so, under what format;

d. whether or not it favours the appointment of an Ombudsman, to examine allegations of poor practice and issue public comments upon them. If the Ombudsman is to have any specific regulatory powers, as SECG, the BSG and the Ground Forum all favour, they will have to be statutorily defined if they are to be effective.

12.5 My own view is that any Agency should be concerned with offering leadership, co-ordinating the production of Codes, guidance and advice, and setting specific targets for progress. It should be kept extremely small, with a tight timescale of work of five years, to seek to deliver the proposed cost reduction programme between now and the end of the century. The "Construction Sourcing" proposals of the CIPS present a possible model. The Implementation Forum may wish to consider before the end of 1994 which of those proposals are most likely to be effective in achieving the results. If the concept of an agency is accepted, a business plan should be drawn up as quickly as possible. The various participants would need to share the costs, but I hope that the DOE would make a significant contribution.

12.6 I would not at this stage favour the appointment of an Ombudsman if there were also to be an Agency. The purpose of the Agency would be to encourage the delivery of best practice and performance, and to develop teamwork, rather than to judge alleged perpetrators of poor practice. Because it would involve client representation, an Agency would have much more authority throughout the entire construction process than the NJCC, which could be allowed to lapse. The recommendations in the Report relating to contract conditions and the Construction Contracts Bill should provide the necessary framework for progress without external policing. But the need for an Ombudsman should be kept under review by the Implementation Forum. The Forum itself should remain in existence until the implementation programme is clearly on course, or, if an Agency is to be formed, until it is.fully launched.

12.7 The groups of recommendations which I have made fall into a number of categories. It will be for the implementation machinery to assess its own priorities, subject to the decisions of Ministers, but my recommendations for timescales are as follows:-

Task

Action by

Timescale

1. DOE designated as lead Department

2. Government to commit itself to being a Best Practice Client

Ministers

Ministers

For both 1 & 2, urgent, but a matter for Ministers collectively. Hopefully before the end of summer recess.

3. Creation of Construction Clients' Forum

Client bodies, BPF, CIPS, ECI, and Construction Round Table

Urgent and before first meeting of Implementation Forum.

4. Check-list Guide' on Briefing issued

CIC

6 months.

5. Construction Strategy Code of Practice dealing with Project and Contract Strategy, Project Management, selection of consultants and tendering procedures

DOE, in conjunction with Implementation Forum

Published as a draft for consultation in 8 months. Final version in 12 months.

6. Joint Code of Practice for Selection of Subcontractors

CIEC/CLG

To work in parallel with task 5, and publish within 4 months of it.

7. Involvement of Process Plant Clients in DOE discussions

DOE

As soon as possible.

8. Restructuring of JCT/CCSJC

Parties to those bodies and proposed new members

6 months.

9. Preparation of full matrix of documents by JCT/CCSJC, including CPI and signing off arrangements. Check list for all design work.

JCT/CCSJC, following reorganisation in conjunction with ICE

12 months after reorganisation.

10. Use of the NEC to increase

Client bodies including DOE, in conjunction with other Departments

As soon as possible.

11. Phasing out of GC/Works/1 and other Government Contract Conditions

DOE, and other Departments

3-4 years, pending evaluation of experience with NEC.

12. Working Party on quality/price selection of consultants

DOE, clients and CIC

6 months.

Recommendations to be in draft of Code of Practice (see 5 above).

13. Expansion of ConReg

DOE, following consultation with CIC and clients

12 months.

14. Expansion of CMIS

DOE task force involving consultation with clients, CIEC and CLG

12-18 months, (progress of the EU scheme may have a bearing).

15. Examination of JAGNET report and further CIEC proposals

Appropriate Government departments, in conjunction with CITB and CIEC/CLG

12 months.

16. Task Force on image of industry

CIEC/CLG

3 months.

17. Co-ordinated Equal Opportunities Action Plans

CIC, CIEC and CLG

12 months.

18. Professional Education Task Force

CIC, with advice from clients and CIEC/CLG and Government Departments

12 months.

19. Decisions on Working Party on Liability proposals, BUILD Insurance and Research Levy

DOE, Assn of British Insurers, and all in the implementation Forum

6 months to formulate brief to Parliamentary Draftsmen for inclusion in Construction Contracts Bill.

20. Productivity Initiative

Strategy Group/ Ministers

Announcement as soon as possible. 5 year timescale for implementation.

21. Drafting of Construction Contracts Bill

DOE, in conjunction with Implementation Forum

12 months to draft. Bill to be presented to Parliament in 1995/6 session. Royal Assent, subject to Parliamentary approval, by July 1996. Implementation as from appointed days for different sections.

22. Formulation of recommendations on a possible Development Agency along the lines of the Construction Sourcing proposal

Implementation Forum, to advise the Strategy Group/Ministers

Advice in principle by January 1995. If affirmative, draft business plan by April 1995.