He did it at the GlaxoSmithKline HQ and now he's trying it at the Royal Bank of Scotland. Richard Thorpe says spending big on prelims is the only way to ensure safe, tidy and well-organized sites. But how do you protect that sum in the tendering jungle? Over to you...
"Look at GlaxoSmithKline. Under competitive tender we secured the project from a very tough market and still gave the client a significant saving on the budgets. This included for a 10% preliminary cost, which included stringent testing from the PQS. The overall project costs started out with a budget of £221m. Our out-turn costs were £210m. The rules of engagement with the trades were typically tough contractually. But the welfare facilities, logistics and overall culture were non-adversarial.

The trade contractors were given the environment to perform. And this was exactly what they did.

The fundamental issue is how we attract skilled people to our sites. We can do this by investing in the organisational costs that demonstrate how professional we are. If we put money into a high investment opportunity we expect a good return. It goes without saying that if we invest in a quality site environment that allows people to perform as highly-skilled workers or managers, we will see a return on our investment.

THE REQUIREMENTS
So how much are we talking? I suggest 8% to 10% of the overall construction budgets for shared preliminary costs. This looks like a lot compared with our old models, but the results of those old models are all too evident. Today's project temporary offices and welfare facilities should ideally be the centre of operations of a co-located team of designers, managers and contractors. It should have first class communication and IT facilities. It should promote an ethos of respect and value for everyone involved in the construction process from project director and professional practitioners such as excavator drivers, concrete workers and the whole works generally. Health and Safety provisions, site roads, storage facilities, common user plant, security and all the various support services should be supplied and maintained to the highest practicable standards.

There are hidden dividends here: fewer accidents, fewer insurance claims, less petty theft, improved industrial relations, and greater respect for people and for property.

Motivating workforce and management is a key ingredient for building quality.

Couple this with respect and a quality environment, and the chances of confrontation drop significantly.

Health and Safety statistics improve, quality standards go up because the workforce and management feel valued and the commercial tension is taken out of the dialogue because everyone meets their targets.

This all sound to good to be true. But it is possible. Why don't we change our mindset to map out the real costs for prelims and buy some quality in our processes during construction? We should make the investment in costs so that the people involved in construction can perform to their full potential, and build with pride.

  • So, Richard Thorpe says it can be done. What's the best way to structure a bid in order to protect adequate funds for health, safety and welfare? Richard Thorpe will be collating suggestions and leading the process of producing a CIOB endorsed guideline on the matter.

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