Construction Journal Project management Building tomorrow’s world
Learning to share
Selling the vision
Next level for data
Why capturing past lessons can boost project performance
Devising fresh approaches to recruiting and retaining the best young talent
Setting out the case for a holistic cost information system
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RICS CON ST RUCT I O N JO URN A L
A DV E RTI S I N G
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To ad ve rtise con t a c t C h a r l o t te Tu r n e r +4 4( 0 )2 0 7 8 7 1 5 7 3 4 or c harlot te@wearesu nday. c om 30136-RICSconstructionJournal-Half-230315.indd 1
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C O NTENTS
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Construction Journal Project management Building tomorrow’s world
Learning to share
Selling the vision
Next level for data
Why capturing past lessons can boost project performance
Devising fresh approaches to recruiting and retaining the best young talent
Setting out the case for a holistic cost information system
PG.
6
PG.
9
PG.
June/July 2015
rics.org/journals
20
Front cover:
contents
@ Edouard Francois / Luxigon
4 Chairman’s column
C ON TACTS
14 Well positioned
CO N STR UCTI O N J OU R NAL
5 Update
Determining the location of data centres calls for specialist skills, as Bob Marsh explains
Editor: Robert Mallett T +44 (0)20 7695 1533 E rmallett@rics.org
6 Learning to share
16 Heritage preserved
The project management profession can improve performance by learning from the past, reports Tim Fry
Richard Baister provides an insight into conservation issues at Manchester’s civic centre transformation project
9 Selling the vision
20 Taking data to the next level
Stan Hornigold examines ways the construction industry can recruit and retain the best young talent
Joao Silva and Emma-Kate Ryan put the case for a holistic cost information system
11 Matters of fact
23 Stands to reason
The Construction Journal is the journal of the Project Management and Quantity Surveying & Construction Professional Groups Advisory group: Emma-Kate Ryan (Faithful and Gould), Helen Brydson (Faithful and Gould), Martin Stubbington (RICS)., Gerard Clohessy (EC Harris), Christopher Green (Capita Property and Infrastructure), William Hall (Lendlease), Vytas Macenas (Faithful+Gould), Andrew McSmythurs (Sweett Group), David Reynolds, Justin Sullivan (Adair Associates), Tim Fry (Project Management Professional Group Chairman), Alan Muse (RICS) Construction Journal is available on annual subscription. All enquiries from non-RICS members for institutional or company subscriptions should be directed to: Proquest – Online Institutional Access E sales@proquest.co.uk T +44 (0)1223 215512 for online subscriptions or SWETS Print Institutional Access E info@uk.swets.com T +44 (0)1235 857500 for print subscriptions To take out a personal subscription, members and non-members should contact Licensing Manager Louise Weale E lweale@rics.org
Matt Saunders argues that RICS project managers’ ability to use data to drive performance in the digital age makes them highly sought after
12 The future is bright
Prospects for young people and qualified professionals in the project management environment have never been better, says Tom Taylor
Helen Crossland explores how dismissals for ‘some other substantial reason’ can be applied
26 Legal Q&A
Legal experts answer common queries
Published by: Royal Institution of Chartered Surveyors, Parliament Square, London SW1P 3AD T +44 (0)24 7686 8555 W www.rics.org ISSN: ISSN 1752-8720 (Print) ISSN 1759-3360 (Online) Editorial and production manager: Toni Gill Sub editor: Gill Rastall Senior designer: Wasim Akande Creative director: Mark Parry Advertising: Charlotte Turner T +44 (0)20 7871 5734 E charlotte@wearesunday.com Design by: Redactive Media Group Printed by: Page Bros
While every reasonable effort has been made to ensure the accuracy of all content in the journal, RICS will have no responsibility for any errors or omissions in the content. The views expressed in the journal are not necessarily those of RICS. RICS cannot accept any liability for any loss or damage suffered by any person as a result of the content and the opinions expressed in the journal, or by any person acting or refraining to act as a result of the material included in the journal. All rights in the journal, including full copyright or publishing right, content and design, are owned by RICS, except where otherwise described. Any dispute arising out of the journal is subject to the law and jurisdiction of England and Wales. Crown copyright material is reproduced under the Open Government Licence v1.0 for public sector information: www.nationalarchives.gov.uk/ doc/open-government-licence
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CHAIRMAN'S COLUMN Tim Fry looks at how the range of opportunities in project management could be better communicated
Making a difference
T This issue of Construction Journal is the first to have project management as its primary focus. It looks at how our industry can attract, recruit and retain the best young talent and the prospects for both young people and qualified professionals in a growing market. The range of articles have all been written by practitioners, one relatively young with a rewarding career beckoning, three others with experience of delivering projects and managing successful consultancy firms, including the President of the Association for Project Management (APM). The Beatles song Revolution contains the line: “If you go carrying pictures of Chairman Mao, you ain’t gonna 4 J U N E /J U LY 2 0 1 5
make it with anyone anyhow.” The same can be applied to construction. If we keep presenting pictures of people in hi-vis clothing, hard hats and safety goggles on muddy building sites, we will not attract the calibre of people the industry needs to carry on the good work. We need more images of people working together, talking and communicating effectively. Ours is a people-to-people profession, a service industry, for instance, delivering a healthcare facility to improve the quality of care. Building the hospital is not the reason for doing the work, it is an enabler. Other examples are delivering educational facilities that will support better learning outcomes.
Work variety Project management offers the opportunity to work with intelligent and committed people on projects that make a real difference to our fellow citizens’ lives and businesses. I was attracted to the sector because it offered variety in terms of what I worked on and where and with whom I did it. I did not want an environment where I was given a manual, a
Ours is a people-to-people profession, a service industry – building the hospital is not the reason for doing the work, it is an enabler place to sit and instructed to do the same thing with the same people for years on end. Nor, I imagine, do most young people. PMs have the opportunity to work across the globe, and take their experience, enthusiasm and lessons learnt with them in a way that raises the quality benchmark and delivers continuous improvement wherever they go. The ‘we’ve always done it this way’ people won’t prosper unless they embrace change, and change needs to deliver benefit to make it an attractive proposition. So, explaining the case for change and evidencing it with lessons learnt will facilitate improvement in performance, which includes quality, scope and purpose. It seems to me that younger folk are more collaborative; they share texts, tweets,
pictures and thoughts much more readily, using technology that has become ubiquitous. We can improve the quality of decision making by using technology to produce better reports more quickly and based on facts, which also explain the consequences of delay and what will happen next. The next generation will be well placed to do this. We would welcome articles and conversations with RICS and APM members who have a contribution to make in improving our offer as professionals and citizens. It’s up to us to step up to the plate and take this profession forward. b Tim Fry is Chairman of the RICS Project Management Board pm.professionalgroup@ rics.org
UPDATE
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UPDATE Cost report guidance issued Published in March, the RICS Cost reporting, 1st edition guidance note sets out the principles of cost reporting from the perspective of the quantity surveyor to the client during construction. The documents explains the purpose of cost reporting, the factors affecting outturn cost and explores the different formats and types of cost report.
Distance learning Diploma in Adjudication Start date 10 June Undertake training to qualify to become and Adjudicator. The diploma comprises four units and is studied over 18 months. n rics.org/adjudication
Certificate in construction project management Start date 15 June Gain the knowledge of key project management techniques as they apply to construction projects. This course is made of up of 12 units delivered across a six-month period. n rics.org/certificatepm
Conference RICS Diversity and inclusion conference 25 June, London Each year, the property and construction profession welcomes and loses more than 400,000 employees – a skills gap significant enough to threaten the future viability of the industry. It is therefore more important than ever to focus on attracting, engaging and retaining the best talent mix. Join industry peers and leading experts for a day of knowledge sharing and practical workshops to prepare for and harness the next generation, to drive forward with the right people, skills and culture. n www.rics.org/diversityconference
Areas covered include: bb the purpose of cost reporting bb cost reporting models bb report formats bb establishing the budget bb treatment of variable costs bb strategic importance bb reporting of loss and expense. n For further details, visit http://bit.ly/1IHkimB
Certificate in building information modelling: project management Start date 24 June Gain detailed knowledge and the skills required in order to manage each step of the BIM project life cycle. This course is made of up of seven modules delivered across a six-month period. n rics.org/bimcertificate
Web classes
JCT 2011 Certification – Foundation 21 July Demystify and explore the timing, content and implications of JCT certificates for clients and contractors. n rics.org/webclass
Tailored CPD RICS has launched a new bespoke conferencing service, which specialises in delivering tailored continuing professional development seminars in-house or at an external venue. Using knowledge and insight into the markets it services, content can be produced specifically to requirements, engaging speakers who are experts in their field. Event management support is already offered, such as venue procurement and speaker management. n www.rics.org/bespokeconferences or call Jenny Dyson on 01924 229304
TRAINING 2 June, Manchester Open book contract management for construction How to develop a strategy for implementing effective systems.
http://bit.ly/1DGlsvn 16 June, Birmingham JCT design and build contract: practical training Learn how to administer the relevant clauses and processes to ensure project success. rics.org/jctdesignandbuild
17 June, Manchester Working with target cost contracts Analyse the purpose and need of target cost contracts and examine the areas that need particular management. rics.org/costcontracts
18 June, London Contract administration Gain practical guidance with a focus on construction and engineering contracts. http://bit.ly/1CP4VsN
14 September, London Development appraisals: features and analysis How to determine when a development appraisal is appropriate and what information is required. rics.org/devappraisals
June-July, various, UK CPD series This range of one-hour seminars offers a local, low cost and affordable CPD programme. Topics include structural appraisal, management and control of invasive weeds, BIM for health and safety and commercial uses for permitted development rights. rics.org/cpdseries
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The project management profession can improve performance by learning from the past, reports Tim Fry
Learning to share
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he UK has an excellent project management capability, evidenced, for instance, by its delivery of the London 2012 Olympic Games. However, the lessons learnt seem to be applied in a way that maximises the unique selling point of the individuals rather than shared in a more overt and collaborative manner. Project teams building new railways, hospitals, cars etc. are not usually doing anything that is unique in the annals of history. There are hundreds of thousands of miles of track, thousands of hospitals and millions of cars. The non-repetitive element of most projects is the team – the people, not the process itself. The definition of a project as a “unique, transient endeavour undertaken to achieve a desired outcome” (APM Body of knowledge 5th edition) leaves plenty of room for people to make the same mistakes. Lessons learned can contribute to the overall success of projects by
Create a project culture that encourages stakeholders to contribute the good, the bad and the ugly from their experience, and enables them to do so without fear of blame or ridicule 6 J U N E /J U LY 2 0 1 5
Image © Istock
building on approaches that have worked well and by avoiding any repetition of previous mistakes. So what can we do about this? First, create a project culture that encourages stakeholders to contribute the good, the bad and the ugly from their experience, and enables them to do so without fear of blame or ridicule. Pushing will more likely gain traction than a passive pull approach. Busy people
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freeform discussion. Foster a focus on solutions and encourage positive thinking. Asking “what would you suggest we do now” is more often than not a rewarding experience; listening to complaints is simply annoying.
Log the learning
have neither the time nor the inclination to search for stuff that may already exist and be helpful. They want to use sources they trust and that are easy to access. Visit a comparable project and seek to build a relationship and share updates. The project team can let you know about how it is working operationally and you can let them know of any new learning you have picked up that might be useful for their next project.
Lessons learned are not often captured well; witness the very dry pamphlets, books and procedural documents we have all read. Try to make yours stand out and be interesting. Applying a disciplined approach can make a real difference. For example, add a ‘lessons learned’ item onto every meeting agenda and allocate time to it. It is surprising how many people find it much easier to respond to an agenda item than to a
Capture the learning in a log so it is easy for others to reference. Not everyone sees the minutes of every meeting, and a log enables those not present to see the lessons without compromising the confidentiality of the original session. But do it well; a couple of bullet points may be obvious to you but how will it translate to someone else? Make sure the words can stand alone. Start the project by facilitating knowledge sharing between teams and the wider group. Resist the temptation to dive in; make sure you start the right thing in the right way. Listen to the experiences of others and weave these into your scope, plans and communications. This can be helped along by arranging a meeting between a team that has delivered successfully and one that hopes to. People are usually more than happy to tell others, and the new folk have no reason to be defensive. Stakeholders need to be made aware of what is available and how to access it. Encourage sharing as part of your communications and stakeholder engagement plans, meetings and publications. The adoption of ideas and suggested improvements from others may be hindered by company culture and corporate behaviours. However, there are various resolutions open to such difficulties, so think about how you articulate the lessons. It may help to hold project managers accountable for taking a proactive approach to lessons learned. If none are captured, you would have to query whether they are actually asking the question. This could be done at gateway reviews, but remember, the aim is to get it right first time so emphasise a review before the work is done to avoid reworking later. J U N E /J U LY 2 0 1 5 7
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A more reflective learning retrospection can take place at the end of a project or programme: it can explore the same questions, but the recap of objectives and what happened will be a more holistic exercise
n Time for review Short sharp sessions to capture and review lessons learned after any significant event are also of value so that any corrective or supporting action can be implemented immediately. This can be a process or procedural change as a response to the learning that will be embedded into the way the project works. I understand that Crossrail does this. One transport consultant I know has a regular innovation club that meets to discuss new ways of working, in part based on lessons learnt and in part on the enthusiasm of youth untrammelled by the ‘that’s the way we’ve always done it’ type of professional. Changes have been made to operating procedures based on these sessions, and those responsible gain a reward for their efforts. A typical agenda for a review will include a recap of objectives, what actually happened and how this differed from the intent, what can be learnt from this difference, and who to share the lessons with. What can be learnt covers both what contributed to things going 8 J U N E /J U LY 2 0 1 5
well and the causes for anything that did not. More resonance will be gained if the effects of the plus/minus can be articulated in order to pass the ‘so what’ test. A more reflective learning retrospection can take place at the end of a project or programme, sometimes called a post project evaluation. It can explore the same questions, but the recap of objectives and what happened will be a more holistic exercise. A workshop setting is an efficient use of time and should facilitate agreement on what lessons will be shared, with whom, how and when. Research can also be beneficial, given the vast array of reference material available on the internet. For a project manager to be placed in a situation that is entirely novel, where they cannot call on their own or others’ experience or draw on documented experiences, must be exceptionally rare. There are plenty of forums, blogs, and tweets, and if not there is nothing stopping you starting one. Image © Shutterstock
RICS has also published (and therefore vetted) information papers and guidance notes on a range of topics that can be used, based on the experience of practitioners who have actually delivered projects. But do not limit the work to the project team. Involve other stakeholders including users and the project sponsor. People move in their careers and our industry in particular will benefit if project delivery is improved by us all learning lessons and doing things differently as a result. This is real continuous improvement. b
Tim Fry is Chairman of the RICS Project Management Board pm.professionalgroup@rics.org
Related competencies include Project audit
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Selling the vision Stan Hornigold examines ways the construction industry can recruit and retain the best young talent
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Graduates and school leavers considering careers in the construction industry will have spent the whole of their lives with internet and mobile technology: shopping, communicating, learning, playing, reading and getting their news. They are very adept at applying it intuitively, intelligently and quickly. They will run their careers in the same way, seamlessly and without a second thought. In making choices, it will not be through a careers adviser; rather, they will carry out their
research online, and it will be the relevance and appeal of this experience that will determine how they spend their working lives. A prospective recruit investigating what construction offers is faced with a large number of websites, the most prominent of which are those of recruitment firms. On some, they are greeted by a complexity that manages to achieve the near impossible of making our fascinating industry seem boring and second best. The Construction Industry Training Board even refers to “the great construction comeback”, hardly a phrase that will have young and enthusiastic people queuing up with their enthusiasm and fresh ideas. Photographs and videos showing the ubiquitous hi-vis jackets, hard hats and safety
goggles are not images that are likely to appeal to young people.
Don’t leave it to HR We will only be able to compete with other industries and attract the best talent if we have a clear vision and can articulate it in an inspirational way. The most important management skills are leadership and marketing, which are much more important in this respect than the HR function. This typically tends to concentrate on the more administrative aspects of recruiting and managing people. Leaders and experts in marketing choose their words carefully. For example, they talk about the benefits of their product or service rather than the features. This is summed up in the expression ‘sell the sizzle not the steak’. Done Image © iStock
well, rather than picturing a steak in your fridge, you imagine the sight, sound and smell of a well presented and perfectly cooked steak being served in a good restaurant. The drive to attract tomorrow’s talent should therefore come from the people at the top of every organisation in our industry, and they should give it due time and attention.
The need to inspire Ironically, given its apparent reluctance to inspire young people, it was to the construction industry that sports psychologist Bill Beswick turned when working with Sir Alex Ferguson’s young Manchester United team in 1992, among them David Beckham, which became one of the greatest. Beswick asked the players to imagine three bricklayers, n J U N E /J U LY 2 0 1 5 9
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each with a different attitude. When asked what they were doing, the first said: “Laying bricks”; the second replied: “Earning £10 per hour”, while the third said: “I’m building a cathedral and one day I will bring my kids here and tell them that their dad contributed to this magnificent building.” He then asked them to think about which attitude they would apply to the training session they were about to start. Would they be “just practising”, “earning £1,000 an hour” or “helping to build the best team ever so that they would be proud to tell their grandchildren that they had been part of it”. When Beckham scored during the session, he celebrated with outstretched arms, shouting “Cathedral 1 – Bricklayers 0”. Just think what the analogy could do if applied to the industry it was borrowed from.
Where do we start? There are two stages to attracting project management talent into the industry. The first is to promote construction as worthy of young people investing their career prospects. Without this foundation, we cannot properly create the vision and inspiration needed. The second stage is to promote project management as an exciting and vital role. Indeed, it might legitimately be described as the pinnacle of the industry, since a project manager controls all aspects from inception through to operational completion. Talent management comprises three major functions – attraction, recruitment and retention – and it remains important to manage all three effectively. 1 0 J U N E /J U LY 2 0 1 5
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Project management might legitimately be described as the pinnacle of the industry, controlling all aspects from inception to completion Attraction Promoting the industry as a whole is of mutual benefit to every employer. A great place to start is with Sir Winston Churchill’s statement: “We shape our buildings; thereafter, they shape us.” Let’s stop showing uninspiring pictures of scaffolding and muddy sites, and remind our graduates and school leavers that buildings affect not only how we live and work, but also how we feel. They will have personal experience of feeling awe in a church or museum, or perhaps excitement and energy in a theatre or sporting venue. Rather than present an endless list of different job types to young people (most of which they will not yet understand), we must concentrate on the vision. A more practical, rounded and emotional approach is much more likely to boost the long-standing initiative aimed at increasing industry diversity.
Recruitment When recruiting project managers, we must show them the fruits of their labours, not the labours themselves. Most construction websites do not show images or videos of clients enjoying and benefiting from their buildings, and yet this is the whole purpose of the industry. Focusing on the higher purpose offers an antidote to the current clichéd images
of sites. Young people communicate very rapidly through photos, videos and online posts and if we are to reach them, our recruitment needs to be done in a similar way.
Retention Construction is such a wide industry that the majority of people manage to stay in it for the whole of their careers. More often than not, it is the cyclical nature of the work that causes people to leave, likely through redundancy, not a desire to move out of the industry per se. The key to retention in the future will be linked to continued advances in safety, innovation in technology, more offsite assembly, greater efficiency, faster delivery, more diversity and better value for money.
The future The next generation of recruits are likely to bring significant change to the industry. They live collaboratively and will work in the same way. They have been used to concepts such as crowdsourcing, which means that they are more likely to improve cross-disciplinary working and reduce traditional contractual conflicts. They will make rapid advances in tools such as building
information modelling, and wonder why the industry has not achieved this decades earlier. They expect things to happen quickly as consumers, and as a result, they expect to deliver things quickly themselves, not only for the client’s sake but for their own. The faster things are built, the more enjoyment, experience, success and rewards they will have. This, together with offsite assembly, means that the next generation is likely to end the trend for relatively slow building. The next generation will not be too concerned about the cost reduction targets in the UK government’s Construction 2025 strategy. If anything, they will see it as a way to cut waste, make their fortune and create greater continuity in the industry. The real cost of most things has fallen in their lifetime, but construction has not followed this trend. The industry acknowledges the need to change, and as we encourage the next generation we should be circumspect about how we effect the handover. It is fine to pass on experience and skills, but it will be equally important to stand aside and let them develop new skills relevant to what will become a rapidly evolving industry. If we do, the future of project management will be in safe hands. b
Stan Hornagold FRICS is Director at Stay Out Front stan.hornagold@ marstangroup.com
Related competencies include Managing people
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Matt Saunders argues that RICS project managers’ ability to use data to drive performance in the digital age makes them highly sought after
Matters of fact
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he stock of the project manager has continued to rise since the Egyptians planned the allocation of resources to build the pyramids, through to Frederick Taylor’s development of scientific management principles for improving the efficiency of his labour resources. The early 20th century saw further advances from the allied British and American military high commands, which established ‘operations research’ for improved decision making. Subsequently, US space agency NASA refined project management principles for schedule and budget-driven projects, informing the development of earned value analysis and reporting. Today, bodies such as RICS, the Association for Project Management (APM) and the Project Management Institute (PMI) set professional project management standards for projects of all sizes in a wide range of sectors. APM and PMI promote skills as sector-agnostic, which for many is one of the attractions of a career in the sector. However, there are benefits in transferring skills and experiences between sectors. RICS project managers differentiate themselves by being sector experts, typically in construction, where complexity and risk are abundant. Furthermore, the use of data is core to the surveying profession, whether it involves measurement, valuation or management. The growing influence of technology, primarily through the uptake of project management software, data and information, makes effective use of this for reporting and decision making ever more important.
Supply chain rewards Construction contracts are beginning to see increased use of mechanisms aimed at driving improved supplier performance. The ‘capital construction projects’ space is finally learning some
lessons from the ‘business services’ sectors and looking to incentivise the supply chain, often rewarding the supplier with additional payments for delivering desirable results; or at least factoring some element of the payment deemed to be ‘at risk’ for failure to perform. Whereas the employer or purchaser has typically relied on the age-old metaphorical stick (damages) to guard against poor performance, there appears to be a trend toward the use of key performance indicators (KPIs) being drafted into contracts. This is increasingly associated with incentives and the inclusion of contractual features designed to improve the capture of management information for reporting. Often layered over the top of these contractual arrangements are software platforms that integrate the contract with the employer’s and, in some cases, the supplier’s businesses. This arrangement is improving the flow and quality of management information, which enables more timely and relevant reporting, and in turn more informed decision-making in relation to project controls and business operations. In addition, continuous improvement clauses and benchmarking functionality are finding their way into long-term contracts that involve some form of repeatable delivery element.
Supplier focus This apparent change in procurement behaviour may simply be a result of the hysteria around ‘technology’ and the benefits of big data flowing down to the construction sector. Or it may be a consequence of current market conditions, where employers are beginning to realise that buyer-power is giving way to supplier-power and feel that suppliers need incentivising to stay focused on their projects. It is probably a combination of the two that has led to an increase in contractual requirements for data-driven performance. What is certain is that this shift in contractual organisation, combined with the project management software, requires skilled management to ensure success.
Software skills Software platforms rarely work as required ‘out of the box’ and typically need a degree of configuration to align with business processes. This calls for people with the relevant skills to develop the right processes and inputs to enable the technology to perform as intended. This combination of people, processes and technology can bring to bear the performance improvements that these contractual incentives intend to provide. However, underpinning the contract, the KPIs, the software and the decision making is good quality data. It is this area of data management where the RICS project manager can make such a positive impact. Data management has always been at the heart of surveying and it is becoming even more fundamental to the project management profession. With the introduction of building information modelling, the need for project managers who are comfortable with and adept at managing data will become ever more present. Every major construction project now has IT at its heart, which reflects a change in the requisite skillset but also represents a great opportunity on which RICS PMs can capitalise. It is not only the construction sector that is benefiting from data-driven project management; this approach is being used in infrastructure, financial services and defence, among others. But the same transferable skills are required, potentially creating opportunities in other sectors, which, as RICS moves in to new fields such as business valuation, can only can only be a good thing for surveyors. b
Matthew Saunders MRICS is a Capital Project Services Manager at PricewaterhouseCoopers UK matthew.saunders@uk.pwc.com
Related competencies include Data management
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The future is bright
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Prospects for young people and qualified professionals in the project management environment have never been better, says Tom Taylor
Construction project and programme management have come a long way very quickly in the past few decades, and are still growing in their applications and participants. About 10% of the country’s GDP is related to construction and roughly 10% of the national workforce is involved in the industry, property, 1 2 J U N E /J U LY 2 0 1 5
premises and infrastructure. Every citizen is dependent on construction to live, to work, for transport, for leisure. Young people thinking about a career in construction should be encouraged to sit on the upper deck of a bus and look at the variety of building types, functions and materials, the newbuilds, the refurbishments, the changes of use from warehouses to apartments, banks to shops, pubs to restaurants. They will discover a picture of an environment undergoing constant change. For those already in the industry, the same trip would remind them of the diversity and physicality of their sector. When
everything seems to be going virtual, it is nice to be involved with something so real and physical.
Professional variety There are many variations for management of projects in construction: development managers and directors, client representatives, construction agents, package and trade managers throughout the supply chain, as well as contract administrators, employer’s agents, design team leaders, funding representatives and simply project managers. The wide variety of interpretations of project management duties are
included in the diverse sources of standardised institutional appointment documents – not least as provided by the Association for Project Management (APM) and RICS. Prospective members of the project management community may wish to consider which role would suit their interests and capabilities. To help, there are a whole range of books, websites, courses, continuing professional development modules, experience sources, qualifications, and accreditations; not forgetting career guidance, both in person and on the internet.
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quantity and quality of project management needs in UK construction, and the many opportunities available abroad. As a consequence, there will still be a need for people to transfer into project management in later life, possibly as a career of first proper choice.
Skills transfer
In the past, it was not thought appropriate to go straight into project management in construction as a school leaver or graduate, except in exceptional circumstances. Most people became project managers later in life either by circumstance or accident. Some people even thought it might be a temporary or single assignment before returning to their base profession or trade in due course, and therefore there was little point in developing skills in management. This is no longer the case. Nowadays, it is possible to go to college or university or seek a higher apprenticeship in project management as a career of first choice. There are also many construction related and other courses with substantial project management modules in the curriculum. However, these education routes into project management are unlikely to fulfil the anticipated
This raises the question of quantity surveyors moving into project management. This is not a new idea, and in fact has been going on for some time for a number of reasons, some personal, others institutional and corporate. It is likely to continue and may even speed up. Most may be aware of the ‘iron triangle’ devised by Dr Martin Barnes in the 1960s in his book Time and money in contract control. The three aspects were cost, time and performance (covering quality, scope, purpose and the like). These days, there may be other key criteria such as stakeholders, funding, communications, health, safety and welfare, depending on the project. In the cost corner, it would be expected that quantity surveyors becoming project managers would have some expertise and appreciation. After all, QSs are trained in cost planning, cost checking, cost monitoring, cost reporting, cost managing and even cost controlling. So would the QS be able to apply these functions to other
criteria such as time or performance or stakeholders, planning, checking, monitoring, reporting, managing and even controlling in the same way? Is such an approach necessary or appropriate? How long would it take them to get up to speed on some or all of the other project attributes or criteria to a similar standard to their cost skills? It can be done, but it calls for application and effort to develop skills, knowledge and wisdom for all criteria commensurate with those for cost. Also, project managers frequently need to have an appreciation of the ‘total project‘ beyond the central construction aspects, to cover such matters as fees (and therefore appointments), property (and its ownerships), furniture, fittings and equipment, tax and insurance (in various forms). Does this appeal to ex-QSs? Hopefully, former QSs should have an appreciation and techniques for whole life costings so would they be well placed and able to manage and stimulate the customer, design and construction teams to identify the options and permutations available and optimise selections for whole life use? The phrase ‘qualified for what you do’ is being applied to project managers. Many are well qualified, but not necessarily to a level commensurate with their title,
There will still be opportunities and a need for people to transfer into project management in later life, possibly as a career of first proper choice Image © Alamy
role and responsibilities. It would be normal to expect an engineer, surveyor, contractor, specialist or architect to be suitably qualified for what they do as a professional, reliable team member, so why not project managers? The APM and RICS, among others, offer such qualifications. And the expectation from employers for PMs to be suitably qualified is becoming more prevalent. Construction is a service industry to society and other sectors. Being involved in the building of a school is contributing to an education establishment, while building a hospital is contributing to a health facility. In refurbishing a theatre we are in the entertainment industry, and houses are set to be homes. This identification with the end purposes and occupiers provides a great deal of satisfaction and enjoyment. Construction is a tactile industry in its arts and science and putting it into practice. There is such a variety of people and organisations to deal with and manage and they change on every project. Every location is unique. The physicality and physics are wondrous – the different weights of aluminium and steel sections, the heat that comes of a light fitting, the difference between water tight and weather tight – when the pristine building emerges from the site. Certainly it is not easy, but it is the difficulty that makes it even better. What is not to like about a career in managing projects in construction? b
Tom Taylor is President of the Association for Project Management ttaylor@burofour.com
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Determining the location of data centres calls for specialist skills, as Bob Marsh explains
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s project managers, we are often tasked with leading complex, multidisciplinary projects across an array of stakeholder groups and organisations. This includes operating as a single point of knowledge, managing schedules, identifying risks and clearly communicating goals at critical milestones throughout the process. Such experiences and skills are key to site selection process for data centres, which calls for calculating complex financial models and developing technical solutions based on the balance between programme requirements and the cost to value ratio. Project managers’ ability to establish relationships with landowners, economic development officials, power companies, telecommunications companies and government officials all add to the benefits of including a seasoned practitioner at the early stages. Each data centre design will vary according to its end user, and each developer will have a different mix of priorities – from baseline cost to security and transport links – ensuring that no two projects will be the same.
The bare essentials Data centres need not be physically close to the users of the technology they support. But if in theory they could be sited anywhere, in practice the location is invariably determined by a series of technical considerations. No matter what other variables go into the developer’s decision matrix, any data centre location must have two things to even be considered – a reliable, high-capacity power supply and 1 4 J U N E /J U LY 2 0 1 5
communications connectivity that delivers speed plus diversity. A loss of electrical power would clearly be disastrous, so all are fitted with backup generators and an uninterruptible power supply as standard. Nevertheless, a proven and reliable power grid is a high priority. This does not mean that a developer will automatically choose an urban location over a rural one. While an urban location may have easy access to the existing power grid, this says nothing about the reliability of the power supply, or its availability. Conversely, a data centre sited in a rural area will usually be purpose built, and in conjunction with utility providers, to ensure it has the most advanced connectivity and highly robust power supply.
Security is essential While servers themselves are designed to be resilient both to cyber attack and power outages, resilience is also built into the design of data centre buildings. This tends to mean high levels of duplication of infrastructure, commonly referred to as redundancy, which carries a cost premium. Developers may specify that the building be reinforced with steel and concrete, or even sited underground. In addition to obvious measures such as a high-security perimeter fence, there are an array of structural ‘hardening’ techniques to make the data centre resistant to physical attacks. These can range from fortified blast walls, to layered counter measures to prevent intruders. Many facilities incorporate attack-rated walls, vaulttype doors, biometrics and mantraps to protect internal areas. While a custom-built data centre can be fitted with the latest in intruder prevention measures, some centres
have been built in pre-existing secure sites. One of the best known is the headquarters of Swedish ISP Bahnhof, built in a former nuclear bunker that was once a Cold War command centre in a series of granite caves 30m beneath a Stockholm park. A similar site exists in former military bunkers in Switzerland, while in Manchester, UK, a data centre operates in a former Bank of England gold bullion vault 7m underground, behind 18m thick granite walls and a 12 tonne bombproof door.
Weather and seismic threat While the threat of physical attack is hard to quantify, other risks to a data centre’s integrity can be calculated with a higher degree of precision – extreme weather and seismic activity. Of course, all data centres will be sited away from flood plains and far from areas of historic mining activity to prevent the risk of subsidence. But hurricane threat, such as on the east coast of the US, is a crucial factor both in their siting and design. Locations in the lee of natural landscape features will be sought after, with the buildings designed to withstand very high wind loads.
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But no developer will chose a site on cost alone. While remote rural areas may offer the cheapest land, proximity to urban areas makes it easier to attract the 100 strong skilled workforce needed both to build and run a large facility. Nor should the importance of good transportation links be underestimated. Good road connections are a must, even if security concerns mean a data centre is likely to be set back from major roads.
The future
With the global demand for data rising every month, speed to market is crucial Meanwhile, in northern states, data centres will be designed to cope with heavy accumulations of snow on the roof and walls, and those on the west coast and in areas of seismic activity will include the very latest earthquake resistance technology. How much protection a data centre developer seeks from natural threat will depend on two key factors – the operator and the cost. The greater a data centre’s resilience, the greater the cost. Clients seeking the highest levels of redundancy will want a data centre impervious to ‘once in a century’ weather events. However, a developer with a more limited budget for hardening may settle for the ability to withstand ‘once in a decade’ storms.
The key metric Data centre efficiency is frequently judged on the cost per watt of electricity
consumed. This yardstick can be affected by countless factors, from the design of the building and the density with which the servers are packed together, to how they are cooled. In operation, servers generate significant heat, hence cold regions hold an obvious appeal. Technology and site design are crucial to a data centre’s cost per watt performance, but so too are the land and construction costs. Many local authorities offer tax breaks to attract data centres to the region, for reasons of prestige and job creation. They can offer other incentives too, such as competitive utility costs or reduced sales tax on major equipment. With the global demand for data rising every month, speed to market is crucial. A location where the planning or construction process is likely to be longer will have a higher opportunity cost than a rival site that is able come online and start generating revenue sooner. Image © iStock
These cost variables constantly shift due to the improving technology of the servers themselves, and their associated IT infrastructure. The cost per watt is falling as servers become more efficient – both in terms of power consumption – and the density at which they can work optimally. Advances such as highly efficient water-cooling systems are allowing data centres to pack ever more servers into the same space, and this trend is set to continue. Many new facilities are designed with plenty of spare capacity, but as server density increases, developers are less likely to run out of physical space than the power needed to run them, or the ability to cool them sufficiently. In future, the ability to ramp up the power supply could become the single most important requirement, given that data centres are already estimated to consume 3% of the world’s electricity supply. With global data demand increasing at breakneck speed, innovation in both server technology and data centre design is essential to ensure this vital infrastructure keeps up. b Bob Marsh is a Director at Turner and Townsend Ferzan Robbins RMarsh@TTFR.com
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Richard Baister provides an insight into conservation issues on Manchester’s civic centre transformation project
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n 2010, Manchester City Council (MCC) commenced work on one of its most complex projects, which would transform the way in which the Grade II* Central Library and Town Hall Extension were to be used. Designed by Emanuel Vincent Harris and constructed between 1934 and 1938, the buildings were no longer providing the levels of services required by visitors and staff and were in need of a comprehensive improvement that would support their regeneration at the civic heart of the city (Construction Journal September/October 2014). MCC was keen not simply to restore these assets, but to open up previously inaccessible floor areas and to provide new interventions to improve accessibility and operability, while respecting their heritage significance and returning key spaces back to their former glory. To ensure that the project was successful from both a conservation and regeneration perspective, MCC understood that all interested stakeholders including English Heritage (EH) should be engaged in the process from the outset.
Design challenge Ryder Architecture won the contract to redesign the Central Library based on its proposals to modify the internal layout and provide new circulation routes for visitors. This included the introduction of a new vertical core to the perimeter of the building, and the removal of four floors of book storage space that would 1 6 J U N E /J U LY 2 0 1 5
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allow new visitor and archive facilities to be provided in the heart of the building. These interventions, however, required significant modifications of the building and the original historic fabric. Meanwhile, Ian Simpson Architects’ design for the Town Hall Extension centred around the idea of ‘working without walls’, by removing many of the small corridors and isolated offices in the 1930s design. For the first time, the two buildings would also be linked by opening up the basement service areas to provide new library facilities. A further link at ground-floor level would enable visitors to access both buildings directly from the redeveloped St Peter’s Square. Ryder’s Graham Cavanagh recalls the first meeting with English Heritage
to discuss the scheme: “We approached the first meeting with some nervousness but were pleasantly surprised by EH’s enthusiasm for the scheme once we had demonstrated the limitations of the current building, and how a much more improved use could be achieved. It was clear that they had some concerns, but they understood the vision and the need for change.”
Planning management Being both the owner and the local planning authority, MCC required a robust process for approvals for planning and listed building consent. This ensured that the works were undertaken to the highest standards in line with national policy guidance and best practice advice.
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1 The stonework has been cleaned throughout 2 The Council Chamber coat of arms was repainted 3 All the leaded light roof glass sheets were site welded to repair cracking
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Weekly review meetings were held with English Heritage to review issues, proposals, samples and the quality of the executed work. Paul Mason, MCC Conservation and Design Manager, notes: “One important feature was the requirement for the contractor to issue detailed heritage methodologies in advance of works, so that they could be agreed with the authority and English Heritage. This information allowed us to fully interrogate and agree details and methods of working at a level of understanding that surpass those normally expected.” The use of building information modelling (BIM) techniques greatly enhanced the team’s ability to explain design and construction
methodologies to the benefit of the planning and heritage teams, he adds.
Collaborative working In 2011, Laing O’Rourke (LOR) was appointed as principal contractor on the £100m transformation project. Key to this selection was its commitment to a collaborative management approach, together with its experience in delivering highly complex public sector and heritage projects. Neville Hodson, LOR’s Project Leader notes: “We understood right from the outset that this would be a challenging project requiring close collaboration with both the MCC project team and external stakeholders. Detailed planning and coordination of the works was key Images © Manchester City Council
to the overall success of the project, together with the right delivery team who understood the heritage buildings.” MCC’s early decision to adopt BIM as part of the project development (see Construction Journal February/March) greatly assisted in the coordination of the complex elements, but also allowed clear visualisations of why the removal and replacement of the heritage elements was necessary at each floor level where the major interventions were planned. Visual and CGI presentations rather than paperwork were the key to collaborative agreements with stakeholders, which would not have been possible without a fully implemented BIM strategy. The One Team approach adopted on site worked well, removing many of the traditional barriers and allowing the right people to get together to solve problems. It was not unusual for the Project Director and English Heritage to be on site discussing conservation repair techniques directly with the team and heritage specialists to ensure buy-in at an early stage, assisting the overall formal approvals process. One Team also allowed the non-heritage contractors to feel part of the works. Regular updates were provided, and prior to any contractor starting, a half-day induction was held to review the significant features of the buildings, the procedures to be followed and the responsibilities on all staff working in the heritage areas.
Heritage specialists Although a large amount of historic building and heritage appraisal work had been undertaken prior to LOR coming on board, it was necessary to undertake further detailed surveys and investigations post award to understand the condition of the heritage fabric and n J U N E /J U LY 2 0 1 5 1 7
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4 The checkerboard flooring in the Rates Hall has been refurbished 5 Restored stained glass windows in Shakespeare Hall 6 Refurbished timber panelled rooms retain the patina of use 7 The clock graces the dome in the Central Reading Room
n develop appropriate conservation repair solutions that could be agreed with the planning authority and English Heritage. There was a need to find experienced specialist companies that could provide advice and not be daunted by the sheer size and challenging timescale of the project or working with a main contractor. The initial reluctance of some was overcome once they understood the importance placed on their skills and experience and the One Team’s willingness to help them over the hurdles. The largest intervention for the building was the removal of the centre of the library building where books had previously been stored. This required the temporary support of the large scagliola columns in the Central Reading Room, and the top down removal of the floor slabs without damaging the adjacent heritage fabric of the building. Another major intervention was the removal of perimeter floor areas to allow the introduction of the new vertical circulation cores. LOR managed the demolition process through its internal specialist, Expanded Demolition, to 1 8 J U N E /J U LY 2 0 1 5
The initial reluctance of some was overcome once they understood the importance placed on their skills and experience and the One Team’s willingness to help them over the hurdles ensure close control and reduce the risk of damage to the buildings. On the roof of the Town Hall Extension, each of the original leaded light glass sheets was site welded to repair tears, punctures and cracking. New fixings were fitted to the backing material to allow the sheets to thermally move, enabling the removal of original fixings that had
caused many of the defects. After considerable offsite trialling, including the construction of a ‘copy roof’ developed with input form EH, the works were carried out from bespoke access cradles that travelled up and across the roofs, providing considerable project savings over full access scaffolds. In the Town Hall Extension, each of the 1,878 bronze windows required refurbishment and repair. External cradles again provided cost-effective access, and LOR developed new cleaning and surface coatings that replicated the original dark patina of the original windows. The new spaces around the buildings also required the replication of over 750m of polished brass handrails, with new extrusions and castings commissioned by Heritage Project Contracts to match the existing features. Redundant window frames contributed to the casting of replacement fittings and ironmongery. Some 390 panels of stained and leaded glass were restored by specialist Recclesia Glass, which required 8km of new lead and 127,000 soldered joints as part of the cleaning programme. The most significant glazing was above the portico entrance to the Shakespeare
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Hall, with the design attributed to Robert Anning Bell. The windows depict characters from Shakespeare’s plays with the central window showing a portrait of the bard himself. Each panel was removed, painstakingly cleaned and restored before being refitted into the bronze window frames. More than 650 doors together with skirting and architraves were stripped, repaired and refinished in an onsite workshop before being refitted. Traditional French polish was used to retain the original appearance. Within both buildings there were also a number of timber panelled rooms, each needing to be upgraded to provide modern meeting room facilities. The agreed approach was to consolidate damage and enhance the appearance while maintaining the overall patina of use.
Central Reading Room The Central Reading Room is probably the most significant room in the complex and underwent considerable modification during the course of the project. This involved the removal of the existing floor, including the central desk and clock, the replacement of the dome acoustic
lining and the refurbishment of the roof light structure. All major work packages were undertaken while safeguarding the original fabric such as the scagliola columns to the perimeter of the room, the library shelving and the plaster dome. Movement and environmental monitoring was established prior to work starting to allow modification to the working methods if trigger levels were reached. The room was reinstated close to its original 1934 configuration, with the repaired central desk and the original furniture replicated using restored readers’ tables and chairs previously taken from the building. The markings of use were retained, including graffiti as long as it was not offensive, and protective wax-oil surface coatings applied.
Rates Hall The original Rates Hall in the Town Hall Extension has also undergone considerable restoration. The space had been sub-divided with modern partitions and floor finishes, although the project team was delighted to discover that many of the original features could be restored to their original appearance. Images © Manchester City Council
The painted ceilings were in a very poor state and options to consolidate the very stained paint layers were unsuccessful, leading to the overpainting and exact replication of the original scheme. This, together with the refurbishment of the stone clad walls and checkerboard flooring has created a striking new visitor service centre. The establishment of an atmosphere of pride in the One Team approach, from the most senior designers and construction managers to the youngest apprentices on the site, was vital to the successful delivery of the project. This began at the entrances with the use of site hoardings to tell the heritage story, and extended to the provision of comprehensive welfare facilities for the workforce, a high-quality, clean and safe working environment for all, which together with a committed workforce contributed to an astonishing and successful project. b Richard Baister is a Heritage Project Manager at Heritage Project Management richard.baister@ heritageprojectmanagement.com
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Taking data to the next level Joao Silva and Emma-Kate Ryan put the case for a holistic cost information system
W With increased infrastructure spending on the agenda, there has never been a better time for the construction industry to review the way it handles its cost data. The UK government plans to invest £36bn across more than 200 infrastructure projects, with some due to start this year. In addition, a five-year £38bn rail programme has begun, 2 0 J U N E /J U LY 2 0 1 5
and up to £15bn further investment in oil and gas is expected to be announced. This should signal the impetus to ensure best practice and drive value. But at every stage of a project, significant opportunities are often lost for transforming data into valuable information that can be used to deliver successful programmes. As an industry we can do better. The sector must guard against inaccurate estimates that affect its ability to deliver high performing assets, on time and on budget. It is not uncommon for the key parameter – budget – to have been set in a way that does not allow
the project to succeed. It is especially important that we understand why inaccurate estimates occur. Estimates are informed by design for quantification, and cost data for pricing. Issues generally arise from either the limited availability of design information or limited access to cost and benchmarking data. With robust benchmarking information at all project levels and life cycle stages, would we be able to better understand cost? The answer is yes. Inaccuracies may still occur, but to a much smaller degree, while cost intelligence would inform investment decisions, to drive value from assets and
effectively manage project and business performance.
Collection call What if cost data could be collected, structured throughout the project life cycle and mapped to work breakdown structures and assets? Key players in the industry are designing and seeking to implement such a solution, which exploits the latest advances of information technologies. Ideally, this solution should be integrated as part of the project and programme to capture cost data, which then can be used to produce estimates that inform organisations
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BCIS at your service In April 2014, RICS released the Infrastructure Information Service, the result of a steering group of major players in the infrastructure sector. The service is the latest milestone in RICS’ long history of providing benchmark information for the construction industry. The service currently provides indices to aid forecasting and to manage costs across long-term infrastructure projects together with top level benchmarks. The need to provide detailed benchmarking data across the industry has been also been identified by the steering group. One approach is to identify key structures within the infrastructure market and encourage players to contribute data. Structures such as bridges are common across multiple sectors and can be broken down into common elemental structures to help identify repeatable work items. RICS can also apply location factors and inflation indices to allow historic data to be repurposed. It is sometimes difficult for clients to share data due to commercial sensitivity. RICS hopes that by using an elemental approach this problem can be overcome, transforming shared data into valuable information to deliver successful projects. Find out more at http://bit.ly/1BQwhZW
at project, programme and industry level. More importantly, such a solution needs to integrate and enable financial modelling, project controls, cost planning and cost management. Crucially, the structure should progress information through corporate levels, with minimal additional effort. There is an opportunity to harvest information beyond the currently available methods. If information generated at estimating level could inform decisions made at industry level to build and maintain infrastructure assets in an efficient manner, then as an industry, should we define a standardised system
to gather and interpret this data? Not only can estimating data produce more accurate estimates if collected, stored and shared in the correct format, it can inform strategic decisions and eventually drive the industry to make the most out of business investments.
Creating a structure Currently, data generation is often viewed in isolation. Cost data from estimates, tenders and final accounts is used to inform future cost plans, while we create supporting information for business planning. We produce and use data throughout the life cycle of the project, but is it structured Image Š iStock
and connected, and does it have a baseline that can be used across the construction industry? Can a single organisation compare programmes in its business and externally? And, at a collective level, can we confidently say we have a cross-sector ability to compare large-scale programmes of a similar nature? There is scope for industry leaders to produce and implement a solution that will inform our projects and businesses, and use the expected multi-billion pound investment in the most efficient manner possible. This will enable much
more than the simple generation of individual, stand-alone estimates, because it captures and generates information throughout the project life cycle and at all levels of the enterprise structure. The ideal structure collects and stores information at four levels, and uses the data extracted from each level to inform and cross-inform the others. Task level Estimates are produced with different elements of work, quantified and then multiplied by a rate to determine cost. It is fundamental to use a robust cost breakdown structure that enables a clear and consistent use of data. The aim is to use the generated intelligence to commercially manage projects as they progress through their life cycle. This raises issues around forms of contract because some approaches might undermine the visibility of cost during the implementation and close out stages, for example, the widespread use of fixed price contracts. From experience, effective cost breakdown structures acknowledge the close relationship between asset and activity. If we also consider repeated work activities (RWI) in various projects or occurrences, the interface with the next level is key. Project level At this level the elemental costs are created from RWIs as defined by the task level data. These J U N E /J U LY 2 0 1 5   2 1
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The next step is to acknowledge the natural flow of cost data, from the bottom to the top, through task to industry level n include design, construction, preliminary, management and implementation costs. Several organisations in the infrastructure sector have recently deployed or strengthened their cost benchmarking process to improve their cost intelligence. The principle is to identify any considerable discrepancies in price between projects of a similar nature. Through RWI benchmarking, organisations can actively monitor and streamline estimates at earlier stages, to avoid cost errors only becoming apparent during implementation. Technology allows commercial managers ever increasing opportunities to benchmark cost estimates without a significant amount of additional effort; in fact the return far outweighs the input. Apart from a few exceptions, this is where industry contribution to a benchmarking system generally ends. Yet there is the potential to do so much more at the next level. Programme/portfolio level Rolling the data up from project level, we can have a high-level quantification of RWIs, closely linked to assets or disciplines (square metres of motorway or kilometres of railway infrastructure, for example). This would allow the consequences of delivery and procurement strategies or decisions to be measured, and applied to other programmes or portfolios in our own organisations or across the industry. Internal costs, such as project and 2 2 J U N E /J U LY 2 0 1 5
programme management, can be apportioned and allocated to high-level RWIs. This allows us to ascertain the cost of delivery of each asset (pounds in the ground) or delivery category, and identify the various cost drivers associated with these on previous projects. With this, management and delivery of works can be better understood and optimised by implementing measures to address the impact of key cost drivers. This is where economies of scale and organisational performance can best be measured. Trend analysis on the data captured at programme and portfolio level will also enable better cash flow forecasting. This, in turn, will bring greater accuracy to business planning and investment decisions. Industry level With the information generated at the previous levels as a collective of businesses – contractor, consultant and client – we can compare efficiency between types of organisations in a common format. We will avoid repeating the mistakes of others, and enter into a mutual process of improving business operations across the construction industry. Currently, however, while successful at task and project, and even programme/ portfolio level, issues with the interchangeability of data between organisations still persist. This is a result of difficulties embedding such structures with the
respective project life cycles, both from governance and behavioural perspectives. The next step is to acknowledge the natural flow of cost data, from the bottom to the top, through task to industry level. In addition, a degree of mapping is required to enable the flow of cost data laterally, between the different organisational structures’ reporting methodologies and systems.
Implementation The cost of developing and implementing a solution to this issue is marginal compared to the long-term cost benefits, but more must be done to convince industry stakeholders that they too have a responsibility for project data. While the challenges include collecting appropriate levels of data detail, as well as coverage and applicability issues, the benefits, such as access to industry information and reporting, demonstrability of value for money and cost management tools cannot be ignored. An intelligent cost data tool requires a focus on the relationships between the system levels. Contractual, governance, technology and project life cycle nuances need to be defined in conjunction with cost data to achieve the desired results. It is also important to note that implementing such a cost structure is the gateway to an effective 5D
building information modelling (BIM) solution. More informed and accurate cost models can be produced by collecting and harnessing cost information, and this can be used to better understand cost driver impacts. While we are still at a relative infancy in BIM adoption, there is vital opportunity to capture useful data in a manner that will facilitate smarter estimating by exploiting data-rich models throughout the project life cycle. Including both internal and external industry inputs will allow clients and stakeholders to gain a clear overview of their business. Succinct, up-to-date information will enable the business owner to ask the right questions, at the right time, in order to make the right decisions. This is a cyclical, holistic proposal to inform the infrastructure sector for the next decade and beyond, and the infrastructure industry as a whole needs to facilitate this. There is certainly keen interest from the consultancy community, with organisations, including Faithful and Gould, developing innovative methodologies. The next industry-wide step is broader recognition of cost information system benefits and buy-in from regulatory bodies, to ensure the sector progresses in a way that allows us to build and sustain our assets in a structured and efficient manner. b
Joao Silva is a Regional Director and Emma-Kate Ryan a Graduate Quantity Surveyor at Faithful and Gould joao.silva@fgould.com; emma-kate.ryan@fgould.com
Related competencies include Data management, Commercial management of construction
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Stands to reason Helen Crossland explores how dismissals for ‘some other substantial reason’ can be applied
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Employers, generally, are familiar with the fact that for a dismissal to be fair, it must be for one of five reasons. The first four are conduct, performance/capability, redundancy and illegality/breach of statutory duty. But how knowledgeable are employers about the fifth possible ground? Some other substantial reason (SOSR) is an underused but equally justifiable ground for ending an employment relationship, and can apply to almost any other scenario outside the four more commonly used grounds, provided it is not for an insignificant or frivolous reason.
SOSR can, therefore, be a lawful means of resolving a conundrum where the reason for dismissal does not strictly relate to an employee’s wrongdoing, poor performance or because of a reduced requirement for their role. However, to defend any potential claim for unfair dismissal, employers must be able to show there was a fair reason for the action, and that a correct procedure was carried out prior to parting ways with the employee.
When can it be used? A number of situations could give consideration to dismissing an employee on the ground of SOSR: bb Business reorganisations: if a change to an individual’s terms and conditions of employment is necessary and the employee refuses to accept the proposed changes, or the matter results in the employee being terminated and offered new employment on fresh terms and conditions, SOSR could qualify as the reason for the dismissal. Image © iStock
bb Conflicts of interest: if an employee becomes involved in a situation that presents a potential conflict for the employer in terms of its business interests, dismissal may be justified. The employer would need to show the employee had access to, and could potentially compromise its confidential information and/or close business connections, creating a genuine commercial risk if the employee were retained. bb Personality clashes/poor fit: an individual’s performance may be unproblematic, but if their manner is causing substantial disruption to the business or other personnel are threatening to leave if the employee stays, dismissal under the banner of SOSR may apply. bb Pressure from third parties: if there is strong demand from a client, supplier or close business contact for you to let go of an employee, or if they refuse to work with an employee or allow them on their premises, then depending on the importance of the third party’s J U N E /J U LY 2 0 1 5 2 3
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Building Maintenance Price Book 2015 Based on the latest cost information provided by experienced estimators specialising in the field, the 2015 Price Book covers all aspects of maintenance work, including repairs, refurbishment and demolition; all presented in easily accessible trade sections.
Also available online 24/7 All the price book information and more, is accessible via the BCIS Schedule of Rates ORDB Online Service and is available 24/7, wherever you’re working! You’ll benefit from extra features, such as fast search filter, adjustment factors and the ability to compile and download your own rates. Find out more at rics.org/scheduleofrates
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n continued business or influence or seriousness of any threat to withdraw their custom, this could support the termination of the employee. bb Reputational risk: if an incident affecting an employee in or outside work causes you great concern or disquiet about having an association with them (i.e. criminal proceedings or something incompatible with your company principles or values), dismissal could be warranted. bb Breakdown in trust and confidence: the most common application for an SOSR dismissal, this can take many forms; where an employee demonstrates a growing hostility or mistrust in the organisation (or its personnel) without just cause, declares the employment relationship untenable or continues to pursue grievances that have been properly dealt with. Essentially, this needs to be a situation where the employment relationship has broken down to such a degree – either in the opinion of the employee or employer – that it is irretrievable. Often there may be an element of misconduct or incapability in SOSR scenarios; for example, an employee’s resentment towards the organisation may lead to a failure to comply with reasonable management instructions. However, for SOSR to be sustainable and used lawfully, it must be the sole or principal reason for the dismissal. This is because its ‘sweep up’ nature covers dismissals that do not fall into another category. If the matter relates more to an employee’s conduct or performance, that should form the basis for any formal procedure/termination that follows.
Procedure If an employer has established SOSR correctly, a fair process must then be followed before deciding on dismissal. Care should be taken not to refer to ‘disciplinary’ or any other label that could confuse the true reason for the action. There is no official guidance but best practice is to afford the employee the same safeguards as under a disciplinary process, which would include: bb writing to the employee inviting them to a formal meeting and stating the purpose bb holding a formal meeting at which the relevant issues can be discussed, where the employee may make representations and is offered the right to be accompanied
There needs to be a situation where the employment relationship has broken down to such a degree that it is irretrievable bb notifying the employee in writing of the decision, i.e. to terminate their contract of employment on the ground of SOSR, and giving the right of appeal. Before proceeding to termination, the employer should explore, and be seen to give consideration to any viable alternatives such as redeployment, workplace mediation, changing the employee’s work patterns, reporting line or location or any other measures that may provide a resolution.
It is safe? Before electing for dismissal, employers should be satisfied they have all the necessary evidence to support the decision so that should the employee bring a claim, they are in the strongest position to defend it. For instance, where the matter relates to a breakdown in relations, documentation highlighting the employee’s sentiments/level of bad feeling or obstructive behaviour will be of key importance. So, too, will written examples of the employee repeating historic complaints or declining to entertain attempts made by the employer to resolve the matter. In cases where the employer maintains harm will be caused to the team or the business if the employee remains, examples should be provided of specific clashes between employees, or where the manner or management style is at odds with the culture of the workplace.
A balance will need to be achieved between maintaining fairness and confidentiality toward the individual, and gathering evidence from employees who may be concerned about repercussions and being seen to contribute toward the employee’s downfall. Any information gathering in the course of a SOSR process needs to be conducted sensitively, and employers should take professional advice at an early stage to minimise the risk of claims.
Conclusion As with any severance, SOSR is not without risks and because of the more unfamiliar nature, employees may be more inclined to challenge a dismissal. Further, employers who find themselves in the tribunal will need to convince a judge of the seriousness of the situation, and that termination was the only option in the circumstances. But with proper advice, careful planning and execution, SOSR can offer the solution to a difficult situation. b Helen Crossland is a Partner in the employment team at Hamlins LLP hcrossland@hamlins.co.uk
Related competencies include Managing people
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LEGAL HELPLINE
Legal Q&A Extensions of time challenges
Q
I am a project manager on a large infrastructure project. The employer has suggested that I should not issue an extension of time and agree the payment I think the contractor is entitled to. I am reluctant to go against the employer’s wishes. What can I do?
> Louisa Donnelly
A
Disputes over extensions of time are by no means unusual on major projects, and employers’ will sometimes press project managers (or contract administrators, architects, engineers) to avoid taking steps that go against their interests. As a project manager, your precise role and duties will be determined by your professional appointment. This will usually enable you to administer the contract on the employer’s behalf, for example issuing variations (the governance powers). However, your appointment will also usually confer powers allowing you to assess and determine issues of importance, such as how much additional time the contractor should be afforded to complete the project, or how much money is due under the contract (the certification powers). It is the certification powers that have been the subject of much debate in recent years. Given that you will likely have developed a relationship with your employer, it is easy to foresee a situation where they could put pressure on you to issue a certificate recording a decision with which you may not agree. For example, an employer may ask that you do not issue an extension of time. In recent case law, the court has sought to clarify a project manager’s duties, making it easier to determine when you will be required to comply with the employer’s requirements, and when you can exercise your own discretion and personal judgment. The basic principle A distinction has been drawn between decisions that concern the governance of the contract, and those that require you to exercise an element of assessment and certification. The leading House of Lords case, Sutcliffe v Thackrah [1974], recognised that an architect acting under a RIBA standard form contract has two different functions to perform. In matters concerning governance, the architect would be “bound to act on his client’s instructions, whether he agrees with them or not”. However, the Lords noted that in “many other matters requiring professional skill he must form and act on his own opinion”. It was in these ‘other matters‘ (i.e. the assessment and certification) that Lord Reid believed the architect had a duty to “reach such decisions fairly, holding balance between his client and the contractor”. 2 6 J U N E /J U LY 2 0 1 5
+info +info Louisa JeremyDonnelly Ferris is a Construction is Senior Associate Disputes at Solicitor Furley Page withLLP Pinsent Masons jcf@furleypage.co.uk LLP louisa.donnelly@ pinsentmasons.com
The current position More recently, in Costain Ltd v Bechtel Ltd [2005], the court acknowledged that in many of its functions the project manager under an NEC contract will act “solely in the interests of the employer”. However, it was also recognised that when performing functions of assessment and certification, the project manager would be required to hold “balance between the employer and contractor”. It was noted that the project manager’s certification would not necessarily be determinative, and could be challenged through the dispute resolution procedures of the contract should the employer or contractor disagree with the decision. These principles were summarised in Scheldebouw BW v St James [2006], where the following propositions were made: bb the precise role and duties of the contract administrator will be determined by the contract, but these are likely to include both a contract administration role and decision making duties bb generally, a contract administrator will not be considered to be independent of the employer bb when performing such a function, the decision maker will be required to act in a manner that is “independent, impartial, fair and honest”. This means that a contract administrator must use their professional skills and best endeavours to reach the right decision, not simply one that favours the employers’ interests. What should you do? Your precise roles and duties will be determined by the terms of your appointment and the provisions of the construction contract. By the nature of your relationship with the employer, you will not be considered wholly independent – it is they that give you instructions as to how to administer your contract. However, when you are performing an assessment or certification function under the contract, such as determining whether to issue an extension of time, you will be expected to make this decision impartially and to reach a fair and honest decision, notwithstanding any pressure from the employer. A failure to act impartially could result in subsequent criticism from a tribunal in the event of any dispute. If necessary, you may need to discuss your respective duties with your employer. b
Related competencies include Project administration