Peer review: Fred Garner
Sector Director – Rail, Taylor Woodrow
In his foreword to the RSG Strategy Fast Track to the Future, summarised here, Terence Watson recognises that: “Business needs diversity - it allows us to challenge ourselves and see where we come up short.” In the construction sector, CECA’s Inspiring Change awards recognise organisations that are working to create a more diverse industry through promotion of fairness, inclusion and respect. It struck me that these are also behaviours that promote beneficial working relationships in a wider sense, and hence behaviours that need promoting in order for the RSG strategy to be successful. So I started thinking about where the industry is, at least in the infrastructure sector, against these terms of reference.
Starting with fairness: in one context representing equality of opportunity, but in the other an equal balance of risk and reward between the parties in a contract. A trend has been established in the infrastructure sector in recent years for significant risk transfer from clients to contractors through heavy modification of theoretically collaborative target cost forms of contract. These contracts would perhaps be fine if the status quo remained. However, when scope and design change starts to affect cost and programme, and there isn’t good housekeeping of the target cost mechanism, the collaborative intent evaporates.
On inclusion, there are encouraging signs that the contracting supply chain is being invited to participate much earlier in the scoping and design process. Whether Highways England’s Collaborative Delivery Framework, HS2’s extensive supply chain engagement, or the emerging trend for design contracts to contain a buildability partner, there are more opportunities for the practical knowledge and experience of contractors to contribute earlier in the process. And this doesn’t just apply to Tier 1s - Tier 2 SMEs, with their often specialist knowledge, have a significant role to play. Continuing this approach should help drive the investment in people and innovative thinking that the RSG is seeking to promote - but only if there is some fair reward mechanism for sharing and contributing the knowledge.
In an industry that supports safe and efficient operation of a network carrying 2.75 million journeys on the main line and four million journeys underground every day, is there enough mutual respect between client and supplier organisations to create the environment for the RSG strategy to deliver? The vision, investment and commitment to new infrastructure to grow the national railway network deserves respect. So does the need for the suppliers who make these things happen to have secure and profitable businesses, not put at risk through excessive bid costs, unpredictable tender and project timescales, and ineffective management of change.
The success of the RSG strategy will perhaps come down to the question of where clients and supply chain are prepared to meet in creating the right environment that supports sustainable market conditions – allowing innovation to thrive, people to flourish, skills to be developed, and profits to be made. Fair contracts, early engagement and mutual respect all have a part to play in this fast track to the future.
