relationships – Page 4

October 24, 2015July 1, 2022

9 Suggestions for Overcoming Barriers to Good Design When Using Modern Methods of Construction (Mmc)

The term ‘Modern Methods of Construction’ (MMC) embraces a range of technologies involving various forms of prefabrication and off-site assembly.

MMC is increasingly regarded as a realistic means of improving quality, reducing time spent on-site, improving on-site safety and addressing skills shortages in the construction of UK housing.

The variety of systems now available potentially allows the designer enough choice to sidestep problems deriving from constraints posed by the use of any one method. MMC systems, from closed-panel timber framed systems to bathroom pods are a palette from which designers can make choices. They are not necessarily stand-alone solutions that anticipate all the needs of an individual site and can be mixed and matched as appropriate.

These limitations are not obstacles to achieving the good design in MMC-based schemes, but may hinder the incorporation of more complex and innovative types of MMC from which greater overall benefits may be obtained which are considered under the following headings:

1. COST UNCERTAINTY

There is no doubt that, given products of comparable performance the key issue in purchases of MMC construction systems is the price. At present not enough is known about the potential costs of using volumetric and closed panel systems to enable confident specification at an early date. This inhibits designers from exploring the full potential of MMC systems. This is particularly true of the less repetitive, small, one-off scheme, where a smaller margin of benefits is gained from using MMC. The principal barrier to the uptake of MMC, therefore, seems to be the perception of cost uncertainty with respect to using more complex systems. Without doing substantial project-specific research, consultants and their clients simply do not know with enough degree of certainty how much the volumetric or closed panel systems are likely to cost, and what would be the savings to overall project costs produced by potential speed gains to offset against increased capital expenditure.

This is due to the complexity of assessing the ratio of cost of repetitive elements where pricing is relatively straightforward to the cost of adjusting elements or building in another method for the abnormal condition. Decisions to use innovative systems are likely to be made once designs are well progressed to enable teams to be more certain of costs. This can increase the potential for change or result in design compromise as the designer attempts to incorporate the specific limitations of a particular system in their design.

In an attempt to improve this situation, the MMC consultant and or clients could pull together a directory of MMC expanded to include cost comparison data. The huge range of variables involved inevitably makes this difficult, but a database of current construction cost information would be an invaluable resource.

2. PLANNING PROCESS AND EARLY COMMITMENT TO A SYSTEM

The time it can take to obtain planning permission has obvious implications both for project cost but also, in some circumstances, for architectural design innovation.

Most of the more complex types of MMC have an impact on dimensioning, the choice of external finish and detailing may have some effect on the buildings mass. Therefore, the construction system should be chosen prior to a planning application to avoid abortive work, redesign or amendment, or even resubmission for planning permission.

However, developers whose money is at risk, frequently hold off deciding on the construction technique until the last practicable moment, in order to get any advantage from fluctuations in material or component pricing.

Given the potential for lengthy duration of planning applications, this means that there is little incentive to prepare initial designs for planning with a prior decision to incorporate MMC firmly embedded. In cases where the developer has a financial or business link with the supplier, this is less likely to be the case. As the majority of commercial or residential developments involve some kind of arrangement with a developer, agreement on construction systems is often left to the stage after planning.

3. TIME INVESTMENT

Another very significant factor is the time investment required at the early stages of projects. This is needed to develop the design when the project is still at risk. There is a direct relationship between the scale and complexity of MMC component and the amount of time required to develop a design at an early stage.

The introduction of advanced or complex MMC techniques into the design process is potentially costly to the design team. A significant amount of research is needed to explore alternative systems, to obtain verification of suppliers’ credentials, investigate mortgage and insurance issues, visit previous sites, talk to system suppliers, obtain technical performance guidelines, understand junctions and interfaces, coordinate other consultants, obtain building control input and so on.

For a consultant, the only way of investing in this research is either through timely payment of increased fees by a visionary understanding client or through the anticipation of increased future productivity through repetition when a project is phased, or large enough, or likely to be followed by another similar project.

The potential of learning a system and then being able to repeat lessons learned efficiently is a powerful incentive for both client and consultant. By contrast, HTA’ s project at Basingstoke is an example of a phased project with a three to four-year duration allowed the design team to repeat various elements of the design, and the manufacturer to develop improved solutions to technical and supply problems.

4. INSUFFICIENT COMMUNICATION

Improved dialogue at the outset of the project is vital if design quality is to be maximised. Constraints and opportunities implicit within a particular system are more easily incorporated into design if partners communicate pre-planning. Increased early communication can be fostered through improved long-term partnering relationships.

Clients should also partner with a range of suppliers and architects so that choice and flexibility is not restricted.

5. INEXPERIENCE

Generally, the inexperienced client or design team will have to do more research, with the result that there is likely to be significant design development without a specific system being incorporated.

This is a disincentive to using a more complex system involving a higher proportion of MMC, where early decision making and knowledge of a system’ s capabilities have a decisive influence on the nature of the architecture. However, encouraging the take up of MMC through the use of a dedicated funding mechanism may assist clients in finding time for research into suitable MMC techniques.

6. SUPPLIER’S ROLE

Site capacity studies and early stage pre-planning design studies could be undertaken directly by system suppliers on behalf of clients, cutting out the usual procedure of commissioning design work by independent consultants.

7. ASSUMPTIONS

There are a number of assumptions that are generally held about certain types of MMC that may have been valid at one time but are no longer true today. There is a need for reliable and up to date information comparing system criteria, performance data, timescales, lead in times, capacity, construction time, sequencing issues, limitations, and benefits.

Therefore it would be helpful if a forum for discussion and experience exchange was set up.

8. DEMONSTRATING THE BENEFITS OF MMC

There is still a large amount of skepticism about the need to go very far down the line with MMC. This is reflected in the acceptance of the desirability of maintaining or indeed enhancing the pool of traditional craft skills throughout the UK.

A balanced view is that there is a demonstrable need for the wider use of MMC which is recognized by both industry and government. The best way for clients and the public generally to become more confident and knowledgeable about the quality of design achievable through MMC is to see it demonstrated.

9. FINANCIAL INCENTIVES

There is no doubt that spreading the burden of investment through the life of a project helps to ensure a higher standard of specification and hence quality. In the Netherlands, a ‘ Green Financing’ system has been developed by the Dutch government that provides favorable loan finance when certain sustainable standards are reached. In the UK, the Gallions HA has pioneered a study of this, based on a scheme in Thamesmead, ‘ the Ecopark project’.

Eco Park is an eco-friendly business park built on the False Bay coast. This business park is at the cutting-edge of sustainable design and offers a unique working environment in a secure, well-managed facility.

October 14, 2015July 1, 2022

4 Lies about Procurement You Probably Believe

The world of Procurement is seemingly full of impassioned people absolutely certain about what procurement is all about. Like other great lies, many of these half-truths and misleading ideas sound agreeable to the ears and come packaged as good advice from influential people.

How many of these popular lies have you fallen victim to?

1. Procurement should have a seat at the C-table

It’s not so much an outright lie as an irritating half-truth – but the damage comes with what Procurement people do with it. The thought behind this is well-intended: Procurement people should be able to speak the language of senior executives as easily as they can talk about FIDIC or demand forecasting. Terms such as EBITDA, ROIC, and economic profit should be part of their everyday parlance. Procurement issues are often the least understood by the board and the CEO and must be explained in their language.

What on earth could be wrong with that? Nothing – if the Procurement people have full cognisance of their own tools and language – and can be persuasive to senior people of the value of Procurement.

Now, that’s where we have, what is kindly referred to, as a skills gap.

In reality, for Procurement with no reputation (outside of that pesky metric of cost) and few business-aligned projects to call upon, it can be incredibly hard to try and catch senior people’s ear – never mind a C-seat (see what I did there?).

2. You must carry out a competitive tender to obtain value for money

I’m trying to distance myself from the public sector here (noting I did co-author the CIPS book on contracting in the public sector) but even in the private sector there’s a desperate need to get three quotes.

Why three quotes?

Not five, not 11? ‘Cos the rules say three; that’s why.

And the rules of Procurement policy and procedures, well, they can’t be broken because the CFO or the head of internal audit (all very commercial animals?) will be down on Procurement like a ton of bricks.

When the three quotes are received the following conversation occurs – the highest price is rejected – ‘they’re ripping us off’ followed by – and I love this one about the lowest price quotation – ‘the price is too low, they must have got the specification wrong’ – and the contract is awarded to the middle-priced one”¦.surely there’s a better way to deliver value for money?

Perhaps starting with actually defining it!

3. Procurement is the only source of governance for 3rd party spend

Being the only source would suggest a 100%, right?

I’d be amazed – and delighted – if Procurement governed half of all the 3^rd party spend. Words such as ‘influencing’ are sometimes bandied about to shore up this lie. What a surprise that sales people are either trained, or very quickly learn ways, to actually bypass Procurement when selling.

And the reason?

Obviously marketing, IT, auditors fees, construction/property, recruitment (I could go on) is completely different, say the senior people in those departments – echoing the views of the oh so helpful sales people. And Procurement just never gets near, as they can’t articulate (deliver?) the value they can add.

I await the avalanche of people commenting on this telling me I’m wrong. Please be assured you are exceptional in Procurement.

4. Procurement welcome innovation and strategic relationships and anything other than lower price

Few businesses view Procurement as a strategic process. Most often, Procurement staff report to the CFO. This astonishing trend indicates that Procurement is still viewed as a financial / accounting activity and not an operational strategic activity that directly impacts the bottom line.

Suppliers; if you have an innovative product or service, recognise that Procurement’s ‘raison d’Ãƒªtre’ is to deliver cost savings. That’s what they are measured on, that’s what the research with CPOs and the C-suite say is the #1 priority. There’s oodles of other priorities such as local sourcing, sustainability, innovation, partnering, risk management – I could go on and on and on. But that’s the one they get measured on. Think that through, next time you’re pitching.

The take-away

Perspectives on Procurement need to change, mature and grow up. Lies like these need to be re-evaluated and abandoned. Procurement needs to change the way they engage and manage suppliers and their internal stakeholders; ‘adding value’ (a dreadful phrase!) means so much more than asking for a discount.

Stephen Ashcroft BEng MSc MCIPS (speaking here, very much in a personal capacity!) is Associate Director, Procurement and Commercial Advisory at AECOM, a Fortune 500 company. He’s a procurement learner stuck in the body of a procurement veteran, and with over 20 years’ experience still sees the glass as half full. Working with leading organisations across diverse industry sectors, Steve helps clients reimagine procurement to drive improved performance. A recognised advisor, speaker, lecturer, and author; the ever-hopeful Kopite shares his bright-eyed/world-weary views on Twitter @ThinkProcure, LinkedIn and his blog.

September 20, 2015July 1, 2022

Prefab Comeback

Prefab housing suffers from bad stigma due to the fact that some people saw the prefabs as ugly and characterless, and were afraid they would become slums – hardly the promised housing fit for heroes following the second World War. However, building homes from pre-made parts can save time and money. The term prefab or prefabrication often evokes thoughts of poor construction, substandard living conditions and a long-standing “temporary” solution.

Prefab dwellings are making a comeback driven by a lack of affordable housing, a rapidly growing economy and changing demographic trends.

Methods Methods of Construction (Mmc) Offer Significant Potential to Minimise Construction Costs

The term ‘Modern Methods of Construction‘ refers to a collection of relatively new building construction techniques that aim to offer more advantages over traditional construction methods. Off-site construction (OSC) is a modern method of construction, based on off-site manufacturing of building elements.

With exponentially lower construction costs, quicker construction, reduced labor costs and having the ability to achieve zero defects, MMC is gaining a lot of attention as the potential answer to the UK’s housing crisis.

In a valiant attempt to strip away prefabricated housings’ bad rep are MMC with contemporary sleek designs, and constructed to withstand the test of time. MMC housing has the capability to deliver both quality and quantity housing to the tune of ‘ £50,000 per unit.

MMC units hold the promise of being extremely energy efficient and environmentally sustainable. Many versions of MMC take into account how to utilise natural resources and reduce each unit’s carbon footprint. In addition, MMC also addresses environmental concerns by creating much less waste than a standard brick-and-mortar project. While it is plausible that a traditional build could hire a waste removal company who would have the ability to recycle up to 90 percent of the construction waste; with MMC projects, this will automatically happen.

There have already been a number of successful examples of MMC housing constructed in various parts of the United Kingdom. The M-house (pronounced “mouse”) is designed and constructed to last an upwards of 100 years. While Architect Alford Hall have created quality MMC apartment buildings proudly showcasing a patio and private entrance for each flat.

While many of the MMC homes are still in their early years the upkeep and maintenance will be reduced by 50% since the OSC process lowers the risk of non-conformities.

MMC homes are being fabricated and designed to accommodate many different lifestyles, such as, two-story homes, tall six-story apartment buildings, single-family homes and log cabins are all available options for families looking at MMC.

While there is a plethora of design options available all MMC OSC projects have a common theme. The internal workings of the homes are fabricated off-site, while only the “outer skin” comes to fruition on-site. To even further streamline the process, it has been suggested that having a “catalog of pre-selected materials increases supplier relationships and makes the design process more streamlined.”

With the small sample available with progressive MMC systems, it is currently reasonable to conclude that using modern methods of construction to build homes can cost more than traditional home building procedures; due to the need for specialised MMC design consultants. However, outside of costs, MMC remains a faster home building method than traditional brick and block house building and is slowly becoming a relevant front-runner to answer the UK’s housing shortage.

September 12, 2015July 1, 2022

2 Ways Residential Elderly Care Providers Can Drive Growth

The care sector is growing fast. People are its most valuable asset and investment in care-home developments is being fuelled by an ageing population and a growing demand for specialist skills.

Scalability and Replication Have Now Become the Building Blocks That Will Enable Residential Elderly Care Providers to Sustain Growth, Deliver Successful Change and Achieve High-quality Service Outcomes

Dean Jones, former Investment Growth Programme Manager for Care UK offers insight into how REC providers can take advantage of market opportunities by building a sustainable and scalable system. Jones’ experience includes programme managing a £250 million investment-growth programme from 2012 to 2015, which involved building and commissioning 20 new state-of-the-art care homes and their services. He also oversaw a £60 million 3-year investment in a Suffolk programme, for the building of 10 new care homes and 10-day clubs and bringing much needed additional nursing and dementia-specialist care to the community.

REC Providers Can Develop Their Own Blueprints to Replicate and Scale Growth

REC providers can learn much from Jones’ involvement with scaling successful care homes. In his work at Care UK, Jones employed innovative ideas for evolving the next generation of care homes and introducing a competitive edge through unique selling points to harness market potential. The trendsetting programmes have led to phenomenal success, with more than 30 new homes built over a five-year period, a level of growth rarely seen in this sector. Jones describes how REC providers can develop their own blueprints to replicate and scale growth.

Building a foundation

The organization relied on a guiding principle as it developed a scalable system. It consisted of a toolkit that would outline how to manage projects and launch new homes, along with the standard of care the organization expected once a home is operational. The first system in the toolkit, the Project Management Blueprint (PMB) consisted of methodologies, processes and systems that would guide the creation of an ambitious and exciting growth pipeline for new homes.

The Blueprint ensured that the programme and project’s team resources would deliver high-quality outcomes through the practice of sound project management, both at a programme and individual project level. However, the Blueprint was just one of three tools the organisation would use to govern the commissioning and operation of new care homes. The other tools, a Home Manager Launch Manual (LM) and a suite of Standard Operating Procedures (SOP), complemented the programme on the whole.

Building the Capability to Service the Demand Is the Key to Driving Growth

The blueprint

Creating the demand for growth and the environment for change is not enough to generate scalability. According to Jones, building the capability to service the demand is the key to driving growth. Instead of control, managers need to:

Introduce a framework and certainty about processes.
Implement repeatable best practices.
Build the ability to drive quality.
Equip people to do the best job possible.
Introduce a suite of project documents that directly suit the organisation’s purposes while ensuring consistence use.
Increase efficiency and productivity.

As a result of the Blueprint, Care UK was able to construct the building blocks for scalability and replication that would encourage change, growth and quality outcomes. When the foundation of an organisation is built on highly standardised and formal processes underpinned by highly developed performance-monitoring systems and the ability to control quality, it has a scalable business model. Another component involved in the process, evolving the product offerings through a process of service innovation enabled Care UK to apply standardised business-model concepts.

The requirements

Building a methodology for scalability involves considering project and business requirements first. Then, the organization can develop a system that meets the business and management-style needs to deliver successful outcomes. Jones employed a methodology that outlined the standard project-management methods to be used, and practices and guidelines to follow when managing new-home opening projects and business-transformation projects. With a disciplined, well-managed and consistent methodology, Care UK promoted the delivery of quality products and services, on time and within budget for each location.

The essential benefit of adhering to such a defined project- and programme-management methodology is the ability to demonstrate repeatable successes, rather than learning the same difficult lessons again and again. The objective of the methodology ensures that each new home opening was delivered to the highest possible standards via:

High-quality product or service that adheres to the business case.
Excellent standards of care and service.
Financial performance that achieves or exceeds the business case.
Homes or change initiatives delivered on time.
Projects executed on budget.

Relationships

Effective working relationships are also critical to the success of large-scale projects. Management tactics based on a matrix structure ensure that functional and operational resources are aligned across the business. This approach results in significant advantages, as it enables effective and responsive participation from different parts of the organisation that have specialist expertise. In Jones’ matrix, people from different parts of the business took a lead role in managing a specific work stream and were known as Work Stream Leaders. Jones also adopted the RACI technique for identifying functional areas, key activities and decision points where ambiguities exist.

Project Lifecycle

The management of any large, complex project is made easier when broken down into more manageable chunks. This unique approach to the project’s lifecycle enabled Jones’ to establish clear controls, e.g. review points, or gateways, at which to consider progress before moving on to the next phase. The Care UK project lifecycle methodology consisted of five distinct stages, with each stage considered as a sequence, providing the structure and approach to progressively deliver the required outputs.

Risk and issue management

Focusing on critical risk issues helps programme managers mitigate threats. Regularly planning and leading benefit reviews helps organizations drive success and ensure that profits aren’t eaten up by largely avoidable risks. For example, a slight reduction to a home’s expected average weekly fee (AWF) – although based on a more up-to-date market analysis – could have a detrimental effect on the bottom line. However, if this market analysis re-evaluation were to take place at the pre-planning stages, then the organization has an opportunity to review down spec. Key decisions like these must be managed with due diligence and care, by referring to the original business case and using a clearly defined change-control process, and then directing such matters to the programme board for approval.

Recommendations

Programme managers embarking on a scalability journey should note that before diving into the planning of a system of methodologies and processes, it’s important to first understand what needs to be fixed. Jones began his appointment at Care UK by working with a small team. They spent time getting into the nitty gritty of launching care homes, reviewing checklists, liaising with the Care Quality Commissions (CQC), and understanding the business and identifying gaps. Only then did he present the findings and gain support for the project’s Blueprint. Managers also need to understand the organisational culture in which they operate, and then adapt their approach accordingly. Finally, gaining senior management trust is another critical step, as approval and support helps form links throughout the organization – including the lower-management levels.

Successful organizations need managers with a breadth of knowledge – not necessarily construction management expertise – to successfully drive the outcomes of the project. They also require some understanding of IT systems, staff, marketing strategy and more. Only then will the organisation reap the strategic benefits of higher management-level expertise. With the right approach to project management and creating repeatable systems, care home organizations can seize market conditions and drive growth, while delivering quality outcomes through scalable building blocks.