Although we are no longer in an Egan-era, the report has had a lasting impact and has shaped a great deal of change.  A decade on what does the industry still have to learn about standardisation, PFI contracts and virtual reality training.

Adrian Roddick, partner and construction expert at Bruton Knowles points to major change, “The industry as a whole has undergone immense change since Rethinking Construction was launched.  The report identified a clear set of objectives and targets for improvement, and the industry has risen to the challenge, initially led by the major contractors, but the rest of the sector has largely followed suit in core areas.  We have seen tangible changes to what used to be adversarial and competitive relationships which would hamper the industry with frequent expensive litigations, complex tendering and procurement practices and weak supply chain relationships and management.  We are doing a range of construction monitoring work for banks and financial institutions on sites which vary in scale from major developments to small specialist construction projects.  Across the board you can now see in many core areas what was once ‘best practice’ has now become the standard and is widely adopted.”

Nor does this appear to be a biased view.  Speaking very recently the reports own author Sir John Egan is largely full of praise for the construction industry, particularly for the private sector, highlighting the progress made in areas like partnering and site specific issues like health and safety.   However Sir John is more critical of the government’s ability to deliver major projects. Citing the complex nature of PFI contracts as a cause for confusion, project overruns and unnecessary expense he warns that major schemes like the Olympics are likely to face expense and delay.  Some industry experts point to the new increased powers being given to the Office of Government Commerce (OGC) as a step in the right direction.

Ian Pitt, partner at Bruton Knowles’ Birmingham office comments, “I don’t think that you can look to organisations like the OGC to provide an instant fix to such substantial and complex schemes like the Olympics nor to overturn the concept of the PFI contract overnight.  However this government move to increase OGC powers to drive procurement efficiency and best practice is an Egan style principal, and given the right support could deliver real change. Bruton Knowles has been on an OGC framework for several years now and has witnessed first hand the benefit for both the procurer and the supplier in using the system to streamline the tendering process, reducing procurement in some cases to a matter of weeks.”

Although Sir John Egan may not be full of praise for some government practices other parts of the government’s Rethinking Construction machine have worked very well.  Ian Pitt adds, “The Movement for Innovation (m4i) and Construction Best Practice Programme (CBPP), now part of Constructing Excellence, have met and exceeded some of the core objectives set out in the original report, including the collation of over 400 case study projects worth over £6bn to share best practice across the industry. They have maintained focus and momentum and given the industry the opportunities to make change.”

But what else remains to be addressed?  As the ex chief executive of Jaguar, with a background in the car industry famed for its use of standardised parts and automation, Sir John was also keen to introduce streamlined processes to the industry in his original report. 

Adrian Roddick sets this objective in context, “The car has around 3,000 components compared to a house which has around 40,000, so standardisation and computerised control was always likely to be a slower process in this sector.  Sir John still points to a lack of the use of technology explaining that he would like to see the industry practice on computers instead of on customers.  It is not surprising then that he is a key advocate of ACT-UK, a new building management simulation centre which is due to be based in the West Midlands. 

The National Centre for Advanced Construction Technologies will be the country’s first virtual reality training centre for construction managers and professionals, and has received substantial funding support from the region with a £6.3m grant from AWM and £0.7m from the Learning and Skills Council Coventry and Warwickshire.  The region is proving that it is committed to furthering Egan principles even a decade on. It will be a tremendous resource as well as encouraging further construction related inward investment and pooling construction skills in the area.”

Adrian Roddick concludes, “Although practical application of the Egan principles may not be as thorough as Sir John would like in every area of the industry, there has been tremendous progress and meaningful change that has delivered better buildings and better businesses. The report created clarity and momentum that has lasted the decade, and there are not many current government reports that are likely to be able to make that kind of claim in another 10 years time.”