Collaborative Procurement For The Construction Industry

Collaborative Procurement For The Construction Industry

May 11, 2022

The Centre for Built Britain has released a white paper on Procurement Strategies for incentivising collaborative delivery, which explores how a collaborative approach to procurement can help to deliver projects better, faster, greener, and safer with a focus on net-zero targets and building safety.

The paper invites clients and industry to examine and adopt their Integrated Information Management Contract model (IIMC) as a new means to improve value and reduce risks by agreeing directly their mutual information management commitments on one or more projects, and by implementing these commitments transparently and collaboratively throughout the asset lifecycle.

The paper cites McKinsey research around the estimated $10 trillion spent on construction-related goods and services every year globally, yet the sector’s labour productivity growth has averaged only 1% a year over the last two decades, compared with 2.8% growth for the total world economy. The construction industry is plagued by fragmentation, which is usually associated with poor cooperation between the client and the supply chain, especially in the early exploratory stages of decision-making and process planning. These problems of fragmentation worsened due to the global downturn in 2008, which distracted clients and the industry from collaborative procurement models towards exploiting lowest price bids in a cut-throat marketplace. By 2010 the newly-elected UK Coalition Government expressed concerns over artificially low prices.

Development of the new model IIMC formed part of a two-year research programme. Research case studies revealed the success of UK and international prototypes and led to the use of an IIMC being approved by government in ‘Constructing the Gold Standard’, the 2021 review of public sector construction frameworks.

You can read the white paper in full here.
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