Client Role in Successful Construction Projects

Jason Challender has acquired nearly 30 years’ client-side experience in the UK construction industry and procured numerous successful major construction programmes during this time. He is Director of Estates and Facilities at the University of Salford, a member of its Senior Leadership Team and is responsible for overseeing a large department of approximately 350 estates and construction related staff. He is also a construction researcher with ten published academic journal and conference papers in recent years, all of which have been dedicated to his studies around trust and collaborative procurement in the construction industry. Furthermore, he has previously participated as a book reviewer for Wiley. He has also attended many national construction and institutional conferences as a guest speaker over the years and is a Fellow and Board Director of the Royal Institution of Chartered Surveyors.Russell Whitaker is a Chartered Surveyor, an engineer and construction purchasing specialist and runs his own practice in Guildford. Russell was a senior executive and former Vice Principal in many public and private organisations with over 30 years’ managing complex multi-faceted development and construction projects and facilities staff before starting his own property consultancy. He has advised many prestigious clients including Southbank Arts Centre, Royal Botanic Gardens Kew and currently the Royal Automobile Club on project initiation, pre-development and procurement. Russell has strong academic links as a Visiting Lecturer and Course Leader for over 20 years in Building Project Management and Procurement and Professional Project Management at the Sir John Cass Business School, City University. He is a conference speaker specialising in the client role in managing 'front-end' project risk.

• ContentsAuthor biographiesForeword by Brigadier Miles Wade CBEForeword by Professor Peter McDermott FRICS PhDPrefaceAcknowledgementsList of FiguresList of TablesPart One: An introduction into the Construction Industry and Construction Clients by Dr Jason Challender1. Introduction References2. A model of construction clients and their projects2.1 Clients and the process of construction2.2 The ‘client voice’2.3 The complexity of clients2.4 Client requirements through project briefs2.5 The transformational nature of client projects2.5.1 Buildings, organisational and human considerations2.5.2 Organisational changes in clients brought about through projects2.6 Project and client requirements2.6.1 Understanding the businesses of construction clients 2.7 Summary of chapterReferences3. The unique role of clients in the context of the construction industry3.1 The bespoke nature of the construction industry3.2 The construction Industry and recent reforms3.3 The involvement of clients in the procurement of design and construction services3.3.1 Traditional procurement of construction projects; barriers and problems 3.3.2 Deficiencies with traditional construction procurement3.4 Overall context of collaborative working and partnering within the construction industry3.5 Alternative procurement methods for clients on construction projects3.5.1 Government context; reports, codes of practice and recommendations for change3.5.2 Industry and professional context3.6 SummaryReferences4. The importance of leadership for construction clients4.1 Introduction to chapter4.2 Leadership Identity and relevance for construction clients4.3 Leadership challenges for construction clients4. 4. Keys components of leadership for construction clients4.5 Leadership styles as applied to construction clients 4.6 The importance of communication for construction clients in leadership4.7 Adaptability of leadership styles for construction clients4.8 The relationship between poor client leadership and project failure4.9 SummaryReferences5. Governance considerations for construction clients5.1 Introduction to chapter5.2 Project controls5.3 The importance of project/programme boards5.4 Gateway processes for project approval and business cases5.5 Summary of chapterReferences6. Selection and appointment processes for construction clients6.1 Introduction to chapter6.2 The importance of the contractor selection process6.3 Articulation of the problem for selecting contracting partners from the perspective of construction clients 6.4 A historical perspective of the problem6.5 Risk6.6 Benchmarking6.6.1 Key performance indicators6.6.2 Constructionline 6.6.3 Centralised KPI sharing systems6.6.4 Common prequalification practices6.7 Prequalification models and methodologies6.7.1 Multi-criteria model6.7.2 Fuzzy set model6.7.3 Financial Model6.8 Designing a new way for construction clients to select their contracting partners6.9 The quality of prequalification processes and their influence on project success6.10 Summary and conclusions6.10.1 Determination of whether quality of prequalification processes by construction clients influences project success.6.10.2 Determination of whether construction clients’ current prequalification practices are sufficient to identify and select collaborative contractors6.10.3 Determination of the extent to which construction clients are using objective assessments of KPIs to short-list contractors for tenders6.10.4 Potential recommendations and drivers for change and improvementReferences7. The ‘Intelligent Client’; a model of procurement built on relationship management between construction clients and the supply chain7.1 Introduction to chapter7.2 What do we mean by collaborative strategies?7.3 An awareness for construction clients on issues around collaborative procurement strategies and trust 7.4 Trust as a collaborative necessity for construction clients 7.5 Potential benefits of trust for construction clients; incentives to trust7.6 Research findings and discussion7.6.1 Quantitative analysis: questionnaire data7.6.2 Qualitative analysis: Interview data7.7 Implications for construction client in managing requirements and expectations for collaboration and trust7.8 Conclusions and recommendationsReferences8 Critical success factors for construction clients8.1 Introduction8.2 The articulation of the problem for construction clients8.3 Understanding what skills construction clients require8.4 Success criteria on projects for construction clients8.5 Research study to identify the success factors for construction clients8.6 Analysis and reflection of the study on critical success factors for construction clients 8.6.1 Human skills versus technical skills for construction clients; Human skills8.6.2 Human skills versus technical skills for construction clients; Technical skills 8.6.3 Collaboration and common objectives8.6.4 Environment and external factors8.6.5 Determining the right balance between hard and soft skills for the success of construction clients8.7 The key human skills that influence the performance of construction clients8.8 The importance of individual qualities of construction clients for projects success8.9 Summary of chapterReferences9. The relevance of professional ethics for construction clients9.1 Introduction to chapter9.2 What are professional ethics?9.3 The importance of professional ethics for construction clients 9.4 Codes of ethics for construction clients9.5 How should construction clients recognise unethical practices?9.6 The need for construction clients to uphold cultural values when procuring projects9.7 Governance and regulation of professional ethics9.8 Environmental ethics9.9 Summary and conclusionsReferences10. The influence of construction clients on motivating project teams10.1 Why should construction clients be concerned about project team motivation? 10.2 The bespoke and unique nature of the construction industry10.3 Factors which affect motivation levels of project teams10.4 Communication as a motivational factor10.5 The benefits of training and education 10.6 Cultural factors affecting levels of motivation for construction related staff10.7 The use of financial incentives as a motivational management tool10.8 Summary and conclusionReferences11. Developing a construction client toolkit, as a practical guide for managing projects11.1 Introduction to chapter11.2 Planning and devising the toolkit11.3 Feedback and evaluation of the toolkit from the perspectives of construction clients 11.4 Ensuring and monitoring performance throughout the life of projects; General project directory and checklist11.5 The documentation that construction clients need to consider at pre-construction stages11.5.1 Contractor prequestionnaires for competency and compliance11.5.2 Monitoring checklist required for document control and processes11.5.3 Permits to work and making contractors aware of known hazards11.6 Managing documentation and construction processes following the appointment of contractors11.6.1 Project execution plan11.6.2 Contractors’ handbooks and codes of conduct11.7 The documentation and processes that construction clients need to consider in the construction phases of projects11.7.1 The importance of monthly project reporting for construction clients11.8 The documentation and processes that construction clients need to consider in the post-construction phases of projects11.8.1 Managing handover; project handover checklists and test certification11.8.2 Capturing lessons learnt on projects11.9 Conclusion References12. Reflections, overview and summary of key points of Part One12.1 Overall summary and recommendationsAppendicesAppendix A Project proposal (Gateway 1)Appendix B Business case (Gateway 3) templateAppendix C Example of a partnering charterAppendix D Example of a contractor competency questionnaireAppendix E Example of a health and safety contractor’s handbookAppendix F Example of a project execution plan (PEP)Part Two: A Construction Risk Management Model for Construction Clients13. Executive Summary Briefing14. Construction clients, Business Propositions and Corporate Construction Risk.14.1 The Construction Client.14.2 Construction Clients and Value Propositions.14.3 Client and Construction Team Behaviours.14.3.1 Client Behaviour in Project Development.14.3.2 Design Team Behaviour in Design and Construction. 14.3.3 Client Behaviour in Design and Construction.14.3.4 Client Behaviour in RIBA Outline Plan of Work.14.4 Risk Management Principles for Clients in Construction.14.4.1 Corporate Construction Risk.14.4.2 Managing Corporate Construction Risk. 14.4.3 The Professional Clients Framework.14.5 Summary: The Need for a Professional Construction Client.References15. Unique Client Contributions to Construction.15.1 Preamble.15.2 The Professional Construction Client.15.3 The Four Unique Contributions a Client can make to a Construction Client.15.3.1 Contribution 1: Clarity in Purpose, Value Propositions (Outline Business Case, Objective Setting, Cashflow Optioneering, Business Case Refinement).15.3.2 Contribution 2: Realism and Flexibility in Operational Planning and Change (Work Package Agreement Configuration, Pestle Analysis, Stakeholder Alignment).15.3.3 Contribution 3: A Strong and Consistent Client Voice in Design and Production Stage (Client Requirements, Design Negotiations, Develop Design Implications Report).15.3.4 Contribution 4: Balanced Management of Change and Corporate Risk throughout Asset Delivery and Stabilisation A Strong and Consistent Client Voice in Design and Production Stage (Client Requirements, Design Negotiations, Develop Design Implications Report).15.4 Project Success and Client Satisfaction.15.5 Summary: The Client as a Unique Contributor To Project Success. References16. Reducing Corporate Risk Using the Construction Risk Management Model. 16.1 Risk, Construction and Clients.16.2 Client Contributions to Risk Reduction.16.3 Navigating around the Client-Side Construction Enterprise Risk Management (CERM) Model.16.4 Summary: Managing Risk using Our Client-side Risk Management Model. 16a. Business Concept Development Stage16a.1 Purpose16a.2 Organisations and Planning16a.3 Planned Change and Managed Impact16a.4. Why Construction Change is Different16a.5 Business Concept Development Stage Outputs 16a.6 Job Book: Business Concept Development 16a.6.1 Corporate Vision Outputs16a.6.2 Corporate Construction Risk Mitigation Outputs16a.7 Summary: Business Concept Development Stage.16b. Corporate Client /Delivery Capability/Transformation Stage16b.1 Purpose16b.2 Corporate Client Delivery Capability16b.3 Job Book: Corporate Client /Delivery Capability/Transformation Stage16a.3.1 Operational Planning Outputs16b.4 Summary: Corporate Client /Delivery Capability/Transformation Stage16c. Outcomes Delivery Stage16c.1 Purpose16c.2 Outcomes Delivery Stage.16c.3 Job Book: Outcomes Delivery Stage16c.4 Preparing for Design Stage, Benchmarking and Design Liability16c.5 Appointment of contractors and start on site16c.6 Summary: Outcomes Delivery Stage16.d Three Year In- Stage16d.1 Purpose16d.2 Job Book: Three Year -In Stage.16c.2.1 Asset Delivery Aftercare and Management Outputs Part One: Asset Handover Management PlanningPart Two: Post Operational Review16c.3 Summary: Three Year -In Stage.17. Key Points: Client Risk Management and the Risk Management ModelAppendicesAppendix 2A Client Risk Management ModelAppendix 2B RIBA Outline Plan of WorkIndex