The Architect and the Construction Industry. Stephen Brookhouse April 2014

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1 The Architect and the Construction Industry Stephen Brookhouse April 2014

2 Objectives of this session To give an overview of the UK context for construction To consider recent changes in the industry To consider recent initiatives The role of the architect in the delivery team To consider the different roles of the architect To consider PC 1: Professionalism and PC5 Building Procurement

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5 UK construction industry overview Construction industry represents 6.9% of GDP bn (inc. 18bn (7 public +11 private) - infrastructure) Public sector private sector ( 14 public+28 private - residential) Nationally: large, medium and small International Boundaries of construction are unclear: Erection, repair, demolition and civil engineering Technological complexity Multiple interacting systems Relationships between the parts are not always clear Fragmentation and diversity

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7 The nature of the industry Contractors Sub-contractors Specialists and suppliers Design, manufacturing and construction Multi-disciplinary Design Engineering Project management Construction management

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9 Construction project teams: stakeholders Funders, Clients and users Architects, specialists: workplace, landscape, transportation Design engineers: structural, environmental, acoustic Cost consultants Project managers Construction managers Specialists Cladding, fire, vertical transport Regulators: H&S, planning and building control

10 Construction Consultancy Consultancy represents approximately 10-15% of construction activity by value A significant contribution to domestic output Significant exports International expertise Design skills and talent Project management Construction management Only 4% of fee income 2011/2012 came from projects outside the UK

11 Nature of construction projects Risk and uncertainty Fluidity: of product and price Complexity Numbers of participants Self-interest Adversarial Claims culture Lord Bingham 1996

12 Nature of construction projects Roles and relationships: Overlap between stages Consultant teams....and contractors temporary multi-party organisations Fragmented Challenges of co-ordination Conflict Murdoch & Hughes

13 Industry and government response to perceived problems The industry and government Latham report Managing the Team 1996 Egan Report Rethinking construction 1998 The industry (was) under-achieving Highly inefficient supply chain 30% reduction in cost Construction Excellence programme Construction Industry Taskforce Construction Industry Taskforce UK Government Construction Strategy and 2025

14 Construction 2025

15 Construction 2025

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20 Long-term effects Better team-working and co-ordination through BIM Less adversarial Changes to procurement and contract Partnering Mutual trust and co-operation Internationalisation Better sources of funding Growth of contractor role in procurement Driving up levels of efficiency Integration design and construct teams

21 Architecture

22 The architect A perception that our role has been diminished Straddling demand and supply Blurring of lines between demand and supply management Dealing with complexity and scale Specialisation is a consequence of complexity Growth of new specialists Coupled with the drive towards integration Increased use of integrated technology: BIM

23 Architectural practice in the UK Numbers reasonably stable: 33,000 registered architects Combined income of 1.88 billion Practice size/number: Large (50-plus): 5% Large-medium (20-30): 10% (40% in London) Medium (10-20): 19% Small (5-10): 30% Micro (1-5): 36% Outside London 60-70% have fewer than 10 persons 4% of income from overseas (15% in large practices, 8% of London practices fee income) (source: RIBA Business benchmarking 2011/12)

24 Architectural practice 60% do not have a business plan Only 16% plan beyond 12 months 83% have a QMS 80% of 5+ practices have a formal CPD strategy Only 40% offer a graduate support programme Highly fragmented Objective: client-focused leadership and design excellence RIBA Business benchmarking 2011/12

25 Integration Attitudes to risk have changed: risk-aversion amongst clients More sophisticated approach to project delivery UK Government Construction Strategy 2025 Integrated procurement New forms of contract: contractor and consultant Growing importance of the CIC New Plan of Work 2013 BIM

26 New Plan of Work: eight stages 0 Strategic Definition (Stage A) 1 Preparation and Brief (Stages A & B) 2 Concept Design (Stage C Concept) 3 Developed Design (Stage D Design Development) 4 Technical Design (Stage residual technical work) 5 Construction (Stages J & K) 6 Handover and Close (Stage L) Post-occupancy Evaluation & Project Performance Maps onto CIC Scope of Services (for use on major projects)

27 New Plan of Work 2013 Redefinition of roles for architects in appointment documents Client adviser Project lead Lead designer Architect Construction administrator RIBA Plan of Work 2013

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29 Specialist roles Design management Information management (BIM) Masterplanning Sustainability Landscaping Planning Acoustics Interior design Assembling the collaborative team RIBA Publishing

30 BIM Essentially the UK Government has embarked with industry on a four year programme for sector modernisation with the key objective of: reducing capital cost and the carbon burden from the construction and operation of the built environment by 20%. Central to these ambitions is the adoption of information rich Building Information Modelling (BIM) technologies, processes and collaborative behaviours that will unlock new more efficient ways of working at all stages of the project life-cycle. CIC

31 BIM Task Group The Building Information Modelling (BIM) Task Group are supporting and helping deliver the objectives of the Government Construction Strategy and the requirement to strengthen the public sector s capability in BIM implementation with the aim that all central government departments will be adopting, as a minimum, collaborative Level 2 BIM by CIC Bimtaskgroup.org.uk

32 Summary Construction currently represents 7% of UK GDP: bn Internationalisation (currently 4%) Greater complexity and risk aversion plus value for money Influential government initiatives More complex professional and industry teams More complex procurement strategies Move towards greater integration Driven by efficiency

33 Summary Architectural profession schizophrenic RIBA Business Benchmarking 2011/12 Generally very small scale contractor-dominated Weak business planning Good CPD but not supporting training Good use of QMS BIM as an opportunity: design management and sustainability

34 Construction Industry Strategy 2011 The right model for public sector construction procurement in the UK is one in which: clients issue a brief that concentrates on required performance and outcome; designers and constructors work together to develop an integrated solution that best meets the required outcome; contractors engage key members of their supply chain in the design process where their contribution creates value; value for money and competitive tension are maintained by effective price benchmarking and cost targeting, by knowing what projects should cost, rather than through lump sum tenders based on inadequate documentation; supply chains are, where the programme is suited, engaged on a serial order basis of sufficient scale and duration to incentivise research and innovation around a standardised (or mass customised) product; industry is provided with sufficient visibility of the forward programme to make informed choices (at its own risk) about where to invest in products, services, technology and skills; and there is an alignment of interest between those who design and construct a facility and those who subsequently occupy and manage it.

35 Construction strategy 2025 government and industry in partnership Construction is a sector where Britain has a strong competitive edge. We have world-class expertise in architecture, design and engineering, and British companies are leading the way in sustainable construction solutions. It is also a sector with considerable growth opportunities, with the global construction market forecast to grow by over 70% by Changes in the international economy are creating new opportunities for Britain. To help boost the economic recovery, Government is doing all it can to help British businesses grow and have the aspiration, confidence and drive to compete in the global race. Construction 2025 July 2013

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