Construction industry must embrace collaborative working quickly or miss out on benefits

However, the report's authors warned that the industry was at risk of never seeing the benefits of collaboration if it did not commit to change now. They called for a shift away from a "blame-driven" culture with penalties for failure to one in which risks are shared between parties, and clients and the supply chain are fairly incentivised to deliver efficiency improvements.

This is part of a series exploring the opportunities and challenges of infratech, the integration of technology into infrastructure. You can read more in our special report or request an exclusive Pinsent Masons research report. 

The report is Pinsent Masons' second on collaborative construction, following an introductory report published last year. Its recommendations are based on discussions with industry figures at a series of workshops, and the input of a 35-member 'working group' drawn from throughout the construction industry.

Construction expert Nigel Blundell of Pinsent Masons said that although the construction industry is "convinced of the need for change if it is to survive and prosper", there is "an inertia and deep-seated reluctance to change established methods of procurement, working practices and to embrace new technologies. As technology begins to play an increasing role in construction, there is a need to adapt the way the industry does things".

"We make a number of recommendations in this report but it is vital that the whole industry including clients, the supply chain and government make an absolute commitment to shift culture and work together for success. It is essential for the industry to recognise that there will be initial costs to collaboration, but we must see the bigger picture and recognise the great benefits that will come," he said.

In its previous report, Pinsent Masons identified the apparent reluctance of the construction industry to embrace collaborative working practices more fully and made recommendations to address identified barriers to change. Its new report expands on some of the themes identified by that report, particularly the need for more effective team working and engagement from industry leadership and the supply chain. It also makes the case for amending construction contracts to build in collaboration from the start, as well as looking at the impact of building information modelling (BIM) technology on procurement.

The report notes that too many construction contracts are "set up to cater for failure" by allocating risk in a way that encourages blame when things go wrong. Collaboration, on the other hand, requires "an environment where there is an equitable sharing of risks and fair incentivisation", which benefits the wider project team and the contractual chain as a whole rather than only the client and the main contractor.

A collaborative approach should be considered beginning at the project planning stage, as once the tender process begins the opportunity to structure the project to best overall advantage is lost, according to the report. Tender selection processes should also be structured in such a way as to establish which team is best placed to undertake the project and deliver longer term wider value for the client, not just the one that submits the lowest price. Parties should consider appointing an independent behaviour or cultural adviser to establish shared objectives and monitor compliance, while project managers and cost managers should ensure they are working on behalf of the project as a whole and not just in the interests of the client.

The report notes that the use of BIM technology has the potential to drive greater collaboration. However, there is currently a "mixed picture" of the extent to which BIM is used and understood within the industry, as well as doubt as to whether the government is enforcing the use of the technology on public sector contracts. It calls for more practical training and education for the industry on BIM to "clear up misunderstandings" and encourage wider adoption, which should be based on quantifying and publicising the cost savings accruing from the use of the technology.

An industry-wide body should be appointed to take the lead on collaboration and to "speak with one voice" for the industry, with the report recommending that this role should be given to a more diverse, democratic Construction Leadership Council. The government must also play a part in helping to demonstrate the benefits of a collaborative, technology-enabled approach to construction to the industry and the UK economy as a whole, by promoting and funding 'centres of excellence' which would be able to show that collaboration works.

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