A significant requirement of reviewing and analysing the then construction market practices was felt both by the government and the industry itself. In 1994 a committee chaired by Sir Michael Latham was formed…
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1. The government, including public sector organisations such as local authorities and health authorities, should become a best practice client. Clients should remain at the centre of the procurement process and work together to bring value in their projects and promote excellence in design.
4. Although the construction industry is likely to have an output equivalent to approximately 10 per cent of the GDP, the industry’s in-house research and development capital has fallen by 80 per cent since 1981. Investment in research and development is required.
6. In order to achieve 10 per cent annual reduction in construction costs and 20 per cent reduction of defects, radical changes are needed to the processes through which the project develops. These processes need to be explicit and transparent to the industry and its clients.
Initially the government (being the sponsoring side) and the key player within the construction industry responded well to both the reports. The drive for change originated from procurement and contractual areas in the UK construction industry. Later years witnessed considerable changes in UK construction industry, which impacted the way projects were managed and reviewed. The construction process at all levels experienced the benefits of collaboration, and ultimately the way of working in the construction industry changed.
The main responsible agencies within the government i.e. The Department of the Environment, Transport and the Regions and The Office of Government Commerce, along with the key players in construction industry attempted to improve the performance of departments and Contractors.
The report ‘Mordenising Construction’ by the Controller and Auditor General (2001) mentions that, government and key players within the construction industry took several steps to implement the key principles highlighted in the reports. These include:
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By the fact that the contractor was involved from the initial stages of the project, the client is likely to get the real value for his resources. It is restricted to fast-track projects. Under this method, the contractor bears the responsibility of designing and execution of work. The contractor has the option of incorporating in-house designers or consultants to work on the design.
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