Equal Partners

1. Equal Partners The supply side view of the public sector

2. Why we sponsored the report • It is needed • It is good for our Clients • It is good for our business

3. Why is it needed? • The industry has been inundated with reports over a long period of time – I suspect we need updates every few years • The placing and management of building contracts – Sir Ernest Simon – 1944 • Committee on the placing and management of contracts for building and civil engineering work – Sir Harold Banwell – 1964 • Constructing the team – Sir Michael Latham – 1994 • Rethinking construction – Sir John Egan – 1998

4. Latham’s words still ring true The first words in his executive summary • Previous reports have either been implemented incompletely, or the problems have persisted. The opportunity which exists now must not be missed

5. Egan has a different tone • The major Clients have committed themselves to driving forward the construction industry. We look to Government as the largest Client to join us. But we are also issuing a challenge to the construction industry to commit to change. • We have repeatedly heard the claim that construction is different from manufacturing because every product is unique. We do not agree.

6. What the reports tell us • That there is a need for change • Commitment • Hope that improvements can be made • The fact that there is a lot to learn from other industries

7. What the reports lack • An acknowledgement that “the show must go on” • Any mention of the risks during the period of change • Any guidance on how to get from where we are now to where we need to be in the future

8. The importance of transition • Understanding the process of change • Understanding the past • The importance of people in the process

9. Why I support the Equal Partners report • The title – its about partners • The simple aim in the Foreword is to deliver greater value • The honesty • The balanced view • The temperate language • The practical action plans • The acknowledgement that even radical change has to be approached step by step

10. Key recommendations • There is no need to start from the beginning • The call for Suppliers to focus on what the Client needs and to lift standards of service • The call for Clients to spend more time analysing and communicating their needs • The need to improve communication at the bidding stage (particularly at interviews) • The need to keep people in post , to keep relationships intact and to be tolerant about mistakes • The call (yet again) for a focus on value, not price

11. Listening • Equal Partners – 2 words that mean a lot • Partners communicate throughout a relationship • Things I have heard this morning

12. How will our Clients benefit • The report will give them a lot of information from a wide range of public sector areas • It will give them a vehicle to encourage discussion with their suppliers • It will help to inform them why they do not always align with their suppliers • It will give them a draft action plan which will help them to evolve their approach, not to disrupt it . It will help them make the transition

13. How suppliers will benefit • The report will make them think about how they are perceived • It will help them to start meaningful discussions with their Clients about the mutual role they need to play in making improvements • It will help them to make more Clients happy • It will therefore improve their financial position

14. Summary • We will use the report to evolve our relationships with the public sector • We will encourage people in Client and Supplier organisations to use it to evolve in a practical manner, to create a more successful and enjoyable industry