John Mead, Director, Davis Langdon30 years of experience working at all levels within the construction sector, including on site as a trade contractor, in project management, policy development for the Construction Industry Council and with the Movement for Innovation (M4I). And for the last 8 years within construction consultancy specialising in supply chain management.He is a Director at Davis Langdon, an AECOM Company and works within the Program Management team leading the supply chain management function for a number of clients, programs and projects.John currently divides his time between the Supply Chain Management function for the Olympic Delivery Authority for the delivery of the infrastructure for the London 2012 Olympic and Paralympic Games. A project which until recently he led for over 3 years and the Crossrail programme where he is taking the strategy and implementation he developed and delivered for ODA and is now implementing on this program.John has captured the learning from his previous roles including the success achieved for ODA and now being delivered for Crossrail, and has developed the Purchase and Supplier Engineering service which forms part of the Davis Langdon Program Management.Stephen Gruneberg, Reader, University of WestminsterVisiting Fellow, Faculty of the Built Environment, Northumbria University, and Teaching Fellow, (Part-time), Development Planning Unit, Bartlett School, UCL.Publications include: (2008) Construction and Property Markets in a Changing World Economy in Les Ruddock (ed) Economics for the Modern Built Environment, Taylor and Francis (2000) The Economics of the Modern Construction Sector, (with G Ive), Macmillan (2000)The Economics of the Modern Construction Firm, (with G Ive), Macmillan, (2000) The Building Industry and the Building Process. in Knox P., and Ozolins P., Design Professionals and the Built Environment, John Wiley, USA, (1997) Construction Economics; an introduction, Macmillan.

• About the authors xi List of figures and tables xiiiForewords from Sir John Armitt CBE, Howard Shiplee CBE, Martin Rowark and Professor Geoffrey E. Petts xvPreface xixList of acronyms xxvii1. Purchase and Supplier Engineering and the London 2012 Olympics 1Introduction 3The concept of Purchase and Supplier Engineering 4Programme organisation – an Olympic case study 8Procurement organisation structure – the Olympic Delivery Authority 11Roles and responsibilities 11Projects and programmes 13Concluding remarks 14Reference 152. A framework for understanding markets in construction 17Introduction 18Managing the supply market 19The client and construction 23Projects, programmes and construction dynamics 25The client and the supply chain 27Defining the supply chain 28Outsourcing and subcontracting 31Understanding and managing conflict in construction 34Concluding remarks 39References 403. The client’s values and the balanced scorecard 43Introduction 44Developing a framework for measuring performance 46All from a project vision 47Performance measurement 50Using balanced scorecards to communicate values and measure performance 53Developing a balanced scorecard 56Measures including key performance indicators 58Construction KPI measures of economic sustainability 58Social sustainability: Respect for people KPI measures 59Environmental sustainability: Environmental KPI measures 59Creating appropriate KPIs from a project vision and scorecard 62Concluding remarks 63References 644. Packaging and contracting strategies 65Introduction 66What, why and how to buy 68Packaging strategy 70Gestalt theory 73Programme clusters 75Programme application 78Contracting strategy 79Forms of contract used in the 2012 Olympics procurement 79Classifi cation of contracts 82Concluding remarks 85References 885. Common component and commodity strategies 89Introduction 90The benefits of a common component strategy 91Factors infl uencing the procurement of common components 93 Market leverage 93Supply chain security 95Future maintenance and operations 95Design efficiencies 96Developing a common component strategy 96Stage 1: Performance criteria 97Stage 2: Assessment of benefits of implementing a common component strategy 98Stage 3: The benefi ts of a common component purchasing strategy 99The common component procurement strategy 100Concluding remarks 102References 1026. Engaging with suppliers: How to attract suppliers and increase interest and awareness 103Introduction 105Gathering market intelligence 107Supplier dialogue 109One-way supplier dialogue – Supply chain events 110One-way supplier dialogue – Industry days 110One way supplier dialogue – One-to-one meetings 111One-way supplier dialogue – Meet the buyer events 112One-way supplier dialogue – Meet the contractor events 113One-way supplier dialogue – Supplier guide 114One-way supplier dialogue – Business opportunities website 115One-way supplier dialogue – Opportunity slides 117Two-way supplier dialogue – Supplier registration and pre-assessment questionnaires 117Two-way supplier dialogue – Market soundings 120Concluding remarks 125Reference 1267. eSourcing and process codifi cation: Standardising programme procurements 127Introduction 128The guiding principles of a robust procurement process 129Standardising procurement documentation 130Security of the procurement system 131Evaluation of tenders 132The application of electronic tools in the procurement process 133eSourcing 134eEvaluation 139Aspects of managing systematic procurement processes 141Standard processes 141Schools of excellence 142Governance 143Assurance 144Training 145The milestones of procurement reporting 146Standardisation and codification of the procurement process 147Stage gate 1 – Agreeing the procurement strategy 148Stage gate 2 – Tender documentation completion 148Stage gate 3 – Tender list agreement 149Stage gate 4 – The tender report 149Procurement reporting 151Concluding remarks 151References 1548. Managing supply chain involvement across a programme 155Introduction 156Supplier relationship management 157Remaining in contact with all firms who tender for work 159Supply chain mapping 162Concluding remarks 167Reference 1689. Due diligence and the management of capacity 169Introduction 170Modelling supplier utilisation 170Monitoring the fi nancial strength of suppliers 180Sub-tier supplier engineering 182Identifying critical suppliers 185Concluding remarks 189References 19110. Performance management 193Introduction 195The Purchase and Supplier Engineering model and programme management 195Purchase and Supplier Engineering and the programme management office 197Performance management within Purchase and Supplier Engineering 197Analysis 198Control 199Performance improvement through Purchase and Supplier Engineering 200Benchmarking 201Concluding remarks 201Index 205

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John Mead, Director, Davis Langdon30 years of experience working at all levels within the construction sector, including on site as a trade contractor, in project management, policy development for the Construction Industry Council and with the Movement for Innovation (M4I). And for the last 8 years within construction consultancy specialising in supply chain management.He is a Director at Davis Langdon, an AECOM Company and works within the Program Management team leading the supply chain management function for a number of clients, programs and projects.John currently divides his time between the Supply Chain Management function for the Olympic Delivery Authority for the delivery of the infrastructure for the London 2012 Olympic and Paralympic Games. A project which until recently he led for over 3 years and the Crossrail programme where he is taking the strategy and implementation he developed and delivered for ODA and is now implementing on this program.John has captured the learning from his previous roles including the success achieved for ODA and now being delivered for Crossrail, and has developed the Purchase and Supplier Engineering service which forms part of the Davis Langdon Program Management.Stephen Gruneberg, Reader, University of WestminsterVisiting Fellow, Faculty of the Built Environment, Northumbria University, and Teaching Fellow, (Part-time), Development Planning Unit, Bartlett School, UCL.Publications include: (2008) Construction and Property Markets in a Changing World Economy in Les Ruddock (ed) Economics for the Modern Built Environment, Taylor and Francis (2000) The Economics of the Modern Construction Sector, (with G Ive), Macmillan (2000)The Economics of the Modern Construction Firm, (with G Ive), Macmillan, (2000) The Building Industry and the Building Process. in Knox P., and Ozolins P., Design Professionals and the Built Environment, John Wiley, USA, (1997) Construction Economics; an introduction, Macmillan.

• About the authors xi List of figures and tables xiiiForewords from Sir John Armitt CBE, Howard Shiplee CBE, Martin Rowark and Professor Geoffrey E. Petts xvPreface xixList of acronyms xxvii1. Purchase and Supplier Engineering and the London 2012 Olympics 1Introduction 3The concept of Purchase and Supplier Engineering 4Programme organisation – an Olympic case study 8Procurement organisation structure – the Olympic Delivery Authority 11Roles and responsibilities 11Projects and programmes 13Concluding remarks 14Reference 152. A framework for understanding markets in construction 17Introduction 18Managing the supply market 19The client and construction 23Projects, programmes and construction dynamics 25The client and the supply chain 27Defining the supply chain 28Outsourcing and subcontracting 31Understanding and managing conflict in construction 34Concluding remarks 39References 403. The client’s values and the balanced scorecard 43Introduction 44Developing a framework for measuring performance 46All from a project vision 47Performance measurement 50Using balanced scorecards to communicate values and measure performance 53Developing a balanced scorecard 56Measures including key performance indicators 58Construction KPI measures of economic sustainability 58Social sustainability: Respect for people KPI measures 59Environmental sustainability: Environmental KPI measures 59Creating appropriate KPIs from a project vision and scorecard 62Concluding remarks 63References 644. Packaging and contracting strategies 65Introduction 66What, why and how to buy 68Packaging strategy 70Gestalt theory 73Programme clusters 75Programme application 78Contracting strategy 79Forms of contract used in the 2012 Olympics procurement 79Classifi cation of contracts 82Concluding remarks 85References 885. Common component and commodity strategies 89Introduction 90The benefits of a common component strategy 91Factors infl uencing the procurement of common components 93 Market leverage 93Supply chain security 95Future maintenance and operations 95Design efficiencies 96Developing a common component strategy 96Stage 1: Performance criteria 97Stage 2: Assessment of benefits of implementing a common component strategy 98Stage 3: The benefi ts of a common component purchasing strategy 99The common component procurement strategy 100Concluding remarks 102References 1026. Engaging with suppliers: How to attract suppliers and increase interest and awareness 103Introduction 105Gathering market intelligence 107Supplier dialogue 109One-way supplier dialogue – Supply chain events 110One-way supplier dialogue – Industry days 110One way supplier dialogue – One-to-one meetings 111One-way supplier dialogue – Meet the buyer events 112One-way supplier dialogue – Meet the contractor events 113One-way supplier dialogue – Supplier guide 114One-way supplier dialogue – Business opportunities website 115One-way supplier dialogue – Opportunity slides 117Two-way supplier dialogue – Supplier registration and pre-assessment questionnaires 117Two-way supplier dialogue – Market soundings 120Concluding remarks 125Reference 1267. eSourcing and process codifi cation: Standardising programme procurements 127Introduction 128The guiding principles of a robust procurement process 129Standardising procurement documentation 130Security of the procurement system 131Evaluation of tenders 132The application of electronic tools in the procurement process 133eSourcing 134eEvaluation 139Aspects of managing systematic procurement processes 141Standard processes 141Schools of excellence 142Governance 143Assurance 144Training 145The milestones of procurement reporting 146Standardisation and codification of the procurement process 147Stage gate 1 – Agreeing the procurement strategy 148Stage gate 2 – Tender documentation completion 148Stage gate 3 – Tender list agreement 149Stage gate 4 – The tender report 149Procurement reporting 151Concluding remarks 151References 1548. Managing supply chain involvement across a programme 155Introduction 156Supplier relationship management 157Remaining in contact with all firms who tender for work 159Supply chain mapping 162Concluding remarks 167Reference 1689. Due diligence and the management of capacity 169Introduction 170Modelling supplier utilisation 170Monitoring the fi nancial strength of suppliers 180Sub-tier supplier engineering 182Identifying critical suppliers 185Concluding remarks 189References 19110. Performance management 193Introduction 195The Purchase and Supplier Engineering model and programme management 195Purchase and Supplier Engineering and the programme management office 197Performance management within Purchase and Supplier Engineering 197Analysis 198Control 199Performance improvement through Purchase and Supplier Engineering 200Benchmarking 201Concluding remarks 201Index 205

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John Mead, Director, Davis Langdon30 years of experience working at all levels within the construction sector, including on site as a trade contractor, in project management, policy development for the Construction Industry Council and with the Movement for Innovation (M4I). And for the last 8 years within construction consultancy specialising in supply chain management.He is a Director at Davis Langdon, an AECOM Company and works within the Program Management team leading the supply chain management function for a number of clients, programs and projects.John currently divides his time between the Supply Chain Management function for the Olympic Delivery Authority for the delivery of the infrastructure for the London 2012 Olympic and Paralympic Games. A project which until recently he led for over 3 years and the Crossrail programme where he is taking the strategy and implementation he developed and delivered for ODA and is now implementing on this program.John has captured the learning from his previous roles including the success achieved for ODA and now being delivered for Crossrail, and has developed the Purchase and Supplier Engineering service which forms part of the Davis Langdon Program Management.Stephen Gruneberg, Reader, University of WestminsterVisiting Fellow, Faculty of the Built Environment, Northumbria University, and Teaching Fellow, (Part-time), Development Planning Unit, Bartlett School, UCL.Publications include: (2008) Construction and Property Markets in a Changing World Economy in Les Ruddock (ed) Economics for the Modern Built Environment, Taylor and Francis (2000) The Economics of the Modern Construction Sector, (with G Ive), Macmillan (2000)The Economics of the Modern Construction Firm, (with G Ive), Macmillan, (2000) The Building Industry and the Building Process. in Knox P., and Ozolins P., Design Professionals and the Built Environment, John Wiley, USA, (1997) Construction Economics; an introduction, Macmillan.

• About the authors xi List of figures and tables xiiiForewords from Sir John Armitt CBE, Howard Shiplee CBE, Martin Rowark and Professor Geoffrey E. Petts xvPreface xixList of acronyms xxvii1. Purchase and Supplier Engineering and the London 2012 Olympics 1Introduction 3The concept of Purchase and Supplier Engineering 4Programme organisation – an Olympic case study 8Procurement organisation structure – the Olympic Delivery Authority 11Roles and responsibilities 11Projects and programmes 13Concluding remarks 14Reference 152. A framework for understanding markets in construction 17Introduction 18Managing the supply market 19The client and construction 23Projects, programmes and construction dynamics 25The client and the supply chain 27Defining the supply chain 28Outsourcing and subcontracting 31Understanding and managing conflict in construction 34Concluding remarks 39References 403. The client’s values and the balanced scorecard 43Introduction 44Developing a framework for measuring performance 46All from a project vision 47Performance measurement 50Using balanced scorecards to communicate values and measure performance 53Developing a balanced scorecard 56Measures including key performance indicators 58Construction KPI measures of economic sustainability 58Social sustainability: Respect for people KPI measures 59Environmental sustainability: Environmental KPI measures 59Creating appropriate KPIs from a project vision and scorecard 62Concluding remarks 63References 644. Packaging and contracting strategies 65Introduction 66What, why and how to buy 68Packaging strategy 70Gestalt theory 73Programme clusters 75Programme application 78Contracting strategy 79Forms of contract used in the 2012 Olympics procurement 79Classifi cation of contracts 82Concluding remarks 85References 885. Common component and commodity strategies 89Introduction 90The benefits of a common component strategy 91Factors infl uencing the procurement of common components 93 Market leverage 93Supply chain security 95Future maintenance and operations 95Design efficiencies 96Developing a common component strategy 96Stage 1: Performance criteria 97Stage 2: Assessment of benefits of implementing a common component strategy 98Stage 3: The benefi ts of a common component purchasing strategy 99The common component procurement strategy 100Concluding remarks 102References 1026. Engaging with suppliers: How to attract suppliers and increase interest and awareness 103Introduction 105Gathering market intelligence 107Supplier dialogue 109One-way supplier dialogue – Supply chain events 110One-way supplier dialogue – Industry days 110One way supplier dialogue – One-to-one meetings 111One-way supplier dialogue – Meet the buyer events 112One-way supplier dialogue – Meet the contractor events 113One-way supplier dialogue – Supplier guide 114One-way supplier dialogue – Business opportunities website 115One-way supplier dialogue – Opportunity slides 117Two-way supplier dialogue – Supplier registration and pre-assessment questionnaires 117Two-way supplier dialogue – Market soundings 120Concluding remarks 125Reference 1267. eSourcing and process codifi cation: Standardising programme procurements 127Introduction 128The guiding principles of a robust procurement process 129Standardising procurement documentation 130Security of the procurement system 131Evaluation of tenders 132The application of electronic tools in the procurement process 133eSourcing 134eEvaluation 139Aspects of managing systematic procurement processes 141Standard processes 141Schools of excellence 142Governance 143Assurance 144Training 145The milestones of procurement reporting 146Standardisation and codification of the procurement process 147Stage gate 1 – Agreeing the procurement strategy 148Stage gate 2 – Tender documentation completion 148Stage gate 3 – Tender list agreement 149Stage gate 4 – The tender report 149Procurement reporting 151Concluding remarks 151References 1548. Managing supply chain involvement across a programme 155Introduction 156Supplier relationship management 157Remaining in contact with all firms who tender for work 159Supply chain mapping 162Concluding remarks 167Reference 1689. Due diligence and the management of capacity 169Introduction 170Modelling supplier utilisation 170Monitoring the fi nancial strength of suppliers 180Sub-tier supplier engineering 182Identifying critical suppliers 185Concluding remarks 189References 19110. Performance management 193Introduction 195The Purchase and Supplier Engineering model and programme management 195Purchase and Supplier Engineering and the programme management office 197Performance management within Purchase and Supplier Engineering 197Analysis 198Control 199Performance improvement through Purchase and Supplier Engineering 200Benchmarking 201Concluding remarks 201Index 205

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