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Construction-Cost-Management 20

The document provides an overview of the top clients and promoters in the UK construction industry as of December 2006, detailing their total procurement values and contract types. It also highlights influential reports over the past 60 years that have addressed issues within the industry, noting that many recommendations were largely ignored due to lack of client involvement and follow-up. Notably, the Banwell Report's suggestion for a common contract form was only realized decades later with the introduction of the New Engineering Contract (NEC).

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Dhanushka Manjula
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14 views1 page

Construction-Cost-Management 20

The document provides an overview of the top clients and promoters in the UK construction industry as of December 2006, detailing their total procurement values and contract types. It also highlights influential reports over the past 60 years that have addressed issues within the industry, noting that many recommendations were largely ignored due to lack of client involvement and follow-up. Notably, the Banwell Report's suggestion for a common contract form was only realized decades later with the introduction of the New Engineering Contract (NEC).

Uploaded by

Dhanushka Manjula
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction and overview 5

Table 1.2 Top clients/promoters in the UK – year ending 31 December 2006.

Company Total value Main procurement type


(£ million)

1 British Nuclear Fuels 6,506 Framework agreements


Competitive supply chains
Fixed price or Target cost contracts (when scope and
risk reasonably defined)
2 Partnership for Schools 4,000 Long-term partnerships
Private Finance Initiatives
Design and build contracts
3 Defence Estates 3,160 Prime contracting
Public–Private Partnerships/Private Finance Initiatives
4 Birmingham Council 2,310 500 million 5-year Partnership with 3
construction companies for all projects
valued at more than £100,000
Contracts based on NEC3
5 Olympic Delivery Authority 1,565 Based on OGC’s Achieving Excellence in
Construction Guides
Projects managed using a delivery partner
Contracts based on NEC3

Source: Developed based on Building magazine, 26 January 2007, p. 20 and websites: www.britishnucleargroup.com;
www.p4s.org.uk/; www.defence-estates.mod.uk/major_projects/ index.htm; www.birmingham.gov.uk; www.london
2012.com (accessed 1 March 2007).

1.3 Influential reports

In the last 60 years there have been numerous reports on the state of the UK construction industry
(Murray and Langford, 2003), including the following:

● Placing and Management of Building Contracts: The Simon Committee Report (1944);
● The Working Party Report to the Minister of Works: The Phillips Report on Building
(1948–1950);
● Survey of Problems before the Construction Industry: A Report Prepared by Sir Harold
Emmerson (1962);
● The Placing and Management of Contracts for Building and Civil Engineering Work: The
Banwell Report (1964);
● Tavistock Studies into the Building Industry: Communications in the Building Industry (1965)
and Interdependence and Uncertainty (1996);
● Large Industrial Sites Report (1970);
● The Public Client and the Construction Industries: The Wood Report (1975);
● Faster Building for Industry: NEDO (1983);
● Faster Building for Commerce (1988).

With the exception of the Tavistock Studies, these were all government-sponsored reports,
produced by large committees. Most made recommendations for improvement but were mainly
ignored due to poor client involvement and no follow-up legislation to reinforce their findings.
Significantly, Banwell (1964) recommended that a common form of contract be used for all
construction work. This only started to become a reality 30 years later – with the introduction
of the New Engineering Contract (NEC).

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