Toolkit Guidance

Strategic Planning for Successful SCI

1.1 Does your organisation have a commitment as a client to collaborate with other clients in order to achieve cost efficiencies without compromising quality?

Development partnerships or procurement clubs can often give opportunities for clients to derive efficiencies of scale, and a more predictable workflow for supply chain partners. Particularly good examples of this include procurement partnerships such as Fusion21 and Advantage SW. NCA Housing also holds a wealth of information on this subject.

1.2 Is your organisation, and any other collaborating clients, committed to early involvement of your entire supply chain in the development process?

The 2012 Construction Commitments states that "All members of the construction team will be identified and involved at an early stage, particularly during the design process, and encouraged to work collaboratively.", and that "A detailed brief with clear financial objectives, programme and definition of what is meant by success will be developed by the client before the design stage for all projects and this will be shared at the outset with all those involved."

Early involvement of the supply chain offers numerous possible benefits for the client including:

  • Elimination problems at the design stage
  • Eliminating waste and inefficiency from projects, and adding value, through more informed design
  • Incorporation of innovative products and practices from the supply chain

Good examples of early involvement from the Housing Forum Demonstration Programme include Lemon Tree House and the Silwood Estate Redevelopment.

1.3 Does your organisation have a commitment to extend the client collaboration and early involvement described in questions 1.1 and 1.2 to your maintenance works and responsive repairs?

The reasons for client collaboration and early involvement in new development referred to in questions 1.1 and 1.2 apply equally for maintenance and responsive repairs. In fact, a holistic approach to all three is also an area where there is massive scope for efficiencies and to add value to the process.

Client Leadership and Selection of Supply Chain Partners

2.1 Does your organisation select your supply chain partners with a desire to form long term relationships, with clear scope and objectives?

Long term relationships with supply chain partners can ensure that learning from one project is carried on into other projects, and avoid "reinventing the wheel". The Housing Forum Partnering Toolkit has a wealth of information and advice on this subject. Working with fewer partners more often reduced the waste in the procurement process and encourages partners to look at whole life costing. This approach should bring more value for the client and more profit for the supply chain.

The 2012 Construction Commitments say that "The duties of each project team member will be identified and shared at the outset of the project". Clear scope an objectives from the outset make future dispute resolution much easier, as well as setting the foundations for continuous improvement.

2.2 Do you select your client and supply chain partners on a Quality:Cost basis?

The 2012 Construction Commitments encourage that "Procurement decisions will be transparent, made on best value rather than lower cost, use evaluation criteria". It is increasingly becoming accepted that old fashioned lowest price tendering tends to carry significant hidden costs for the client. This is especially the case in the realm of affordable housing where the client will normally be responsible for the long term maintenance of the property. Concentrating on value keeps down whole life costs, and leads to better satisfaction from the end user.

Communication, Supply Chain Management, Culture and Operating Procedures

3.1 Does your organisation work with your client and supply chain partners to understand your cost base?

The 2012 Construction Commitments say that "the client will work within the project team from the outset of the project to identify and manage project risks." By working with the supply chain to examine the cost base and manage risks, the client has the opportunity to share in any efficiencies that result. If the client just passes 100% risk down the supply chain as is the case in traditional procurement, they will pay more indirectly, but they will never benefit from supply chain innovations or efficiencies found further down the supply chain.

Some good examples of this kind of 'lean' approach can be found in the MMCNW research project MMCNW research project and the Pisa Project.

3.2 Does your organisation maintain an ethos of supply chain integration by encouraging common specifications, standardisation and policies with your client and supply chain partners throughout the development process?

Areas where common standards and systems across the supply chain can lead to benefits include:

  • Products
  • Product Quality
  • Sustainability
  • Health and Safety
  • Respect for People
  • Training - construction legacy
  • Secondments across organizations
  • Regular joint workshops
  • New partner inductions
  • Ex-partner exit interviews
  • Standard methods of measurement
  • Reporting
  • Open book accounting
  • Shared pain/gain
  • Dispute resolution procedure
  • Regular market testing

For example, common training standards across the supply chain have benefited members of procurement partnerships such as Fusion21.

Performance Measurement and Continuous Improvement

4.1 Does your organisation collect and share consumer and partner feedback on a regular basis?

In order to improve your organisation it is necessary to get feedback on your performance through measurement and consultation. Constructing Excellence has been responsible for developing the UK Construction and Housing Industry standard Key Performance Indicators (KPIs) since 1998. KPIZone provides a good one stop shop for housing KPIs. Good examples of customer feedback being used from the Housing Forum Demonstration Programme include Walsall Housing Group and Rotherhithe Case Study.

4.2 Do you produce case studies to encourage best practice throughout your supply chain on a regular basis?

The 2012 Construction Commitments say that "The client is expected to have an equality and diversity policy, promote its principles to its supply chain partners and monitor supply chain application." Case studies help capture learning so that it is not lost, and also to spread it through the supply chain. There is a large amount of examples spanning 10 years on the Constructing Excellence Knowledge Base Constructing Excellence Knowledge Base.

Note on section 106

As clients receiving new housing stock under Section 106 will normally have limited control over the supply chain, this aspect has been excluded from the scope of this diagnostic.

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