6

How can early supply chain involvement improve value and reduce risks?

The Construction Playbook states that early supply chain involvement (' ESI ') is 'key to reducing end-to-end programme timescales, identifying opportunity and mitigating risk early and accessing the industry experts' knowledge and experience in all tiers of the supply chain early in the project or programme lifecycle'.

This section explains the importance of the Client using early supply chain involvement ('ESI') as part of the processes for selecting and appointing the Principal Designer, the Principal Contractor and the other dutyholders, consultants and suppliers who prepare 'gateway' documents. It shows how ESI provides a proven means to optimise the contributions of all dutyholders and other team members to improved safety, quality and regulatory compliance, particularly through their joint activities such as 'Supply Chain Collaboration' that are undertaken within agreed periods of time after appointment of the Principal Contractor and other contractors and supply chain members and in advance of a Gateway two application submission.

This section also shows how ESI supports cost certainty and transparency and the management of quality, time and change so as to ensure safety, quality, and regulatory compliance throughout an in-scope building's lifecycle.

Key points - Section 6: How can early supply chain involvement improve safety and reduce risks?

■ Appoint Principal Contractors, subcontractors and other supply chain members through early supply chain involvement ('ESI') following a value-based procurement process, so that they contribute their skills, knowledge and experience and so that they demonstrate behaviours that will optimise safety and quality (6.1)

■ Use ESI pre-construction phase processes to test how Principal Contractors, sub-contractors and other supply chain members can work with Clients and consultants to improve project outcomes and reduce risks (6.2)

■ Use ESI 'Supply Chain Collaboration' to optimise early contributions by selected subcontractors and other supply chain members during the pre-construction phase of the project (6.3)

■ Implement ESI to improve cost certainty and transparency by the separate agreement of appropriate profit and overheads and by active engagement with Principal Contractors, subcontractors and other supply chain members (6.4)

■ Use ESI to plan and agree integrated timescales and to manage changes (6.5)

■ Use forms of contract that provide integrated ESI systems and controls (6.6).

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