Ian Heptinstall

Topic of the presentation

Effective procurement of construction and major investment projects: give your citizens 25% more while spending the same

Synopsis

Major projects are critical for governments – they are a key economic tool for stimulating the economy, the results of the investment have a significant contribution to the lives of the citizens, and they represent a significant proportion of the government budget. In the UK, construction, IT and defence projects represent roughly 20% of all government spend

Major projects are also notoriously difficult to manage – late, over-budget and cancelled projects are common place. Although projects can be controlled and their performance improved, this often involves a the use of highly-experienced resource that is both rare and costly. Our research suggests there is an alternative, and this presentation will outline the case for change in the way most public sector projects are procurement and managed.

Using powerful but simple ideas that have been proven in a range of organisations can lead to dramatic improvement in project outcomes, and we will present our framework for implementing these ideas. The first element of our framework involve changes in the way projects are planned and controlled. Over the past 20 years organisations such as Boeing, Tata and the Japanese Government have made step-changes in their project performance.

We will share how they have achieved this.

However this by itself is not sufficient. The method organisations such as these have used to reduce durations by 25-50% and costs by 10-30% cannot be implemented on projects which procure and contract in the way government usually does. In order to reduce project duration and cost the procurement approach will also need changing.

The second element of our framework covers the proven approaches to selection and procurement that will be needed.

This framework will deliver projects on-time in less time, to budget for lower cost, and without compromising on scope and quality.

There is just one catch – implementation will not be easy. Habits will need to be changed, and suppliers will need to be coached and developed in the approach. Not easy, but worth it. Imagine spending the same as you do today, but giving your citizens 25% more improved roads, parks and systems that enhance their daily lives.

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Overview

In order to significantly reduce project duration and cost the procurement approach also needs changing.

The proven approaches to selection and procurement that really work.

How to deliver projects on-time in less time, to budget for lower cost, and without compromising on scope and quality?

What habits will need to be changed, and what suppliers will need to be coached and developed?

How to spend the same as you do today, but giving your citizens 25% more improved roads, parks and systems that enhance their daily lives?

Slides

Video

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