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Shared Objectives are Fundamental to Supply Chain Success

06 May 2016 | Updated 01 January 1970
 

"Success must cascade down’ the UK’s invaluable and innovative supply chain with all project partners better incentivised to deliver ‘shared objectives’," Beth West, Commercial Director of HS2, told this year’s NEC Users’ Group Seminar.

In her first keynote speech to more than 240 NEC contract users at the Institution of Civil Engineers’ One Great George Street headquarters in London, new NEC Users group Chair West called for a widespread cultural change to contractual structures and a greater emphasis on ‘shared success’.

She said that better collaboration and project outcomes can be realised and risk more fairly shared when contracts intrinsically link all contractors to ‘specific and strategic objectives’, not only the isolated delivery of their service discipline.

West said: “There is so much more we can do. I know of examples of people putting the contract on the shelf once procured. That fills me with horror. We must select contractors on their ability to deliver the project’s strategic objectives, not services alone.”

She continued: “So many elements of UK Construction are delivered by sub-contractors, many of whom do get squeezed in fixed price contracts.

“We must ensure success cascades down and that full project collaboration is incentivised. We need to share success at a time when we are, as an industry, desperately short of resources.”

The importance of better project collaboration, facilitated by contractual ‘alliances’ of project partners of all tiers which tie all parties to the overall goals of the project, would see more project delivered on time and on budget, the seminar heard.

West’s key note speech was followed by Infrastructure Client Group Alliance of Practice and NEC by Keith Waller, Senior Advisor at HM Treasury and Peter Higgins, NEC Consultant. Andrew Milner, advisory partner at KPMG, then delivered Using NEC for Infrastructure and Construction.

The speaker panel agreed that it is time the fragmented industry focused on developing ‘long term partnerships’ and that contractors must prove they ‘trust the supply chain’ through effective collaboration.

As interest in and uptake of NEC products and services continues to grow year on year, the event also offered attendees an invaluable opportunities for industry professionals to gain insight into how NEC3 is being used to invest in infrastructure both across the UK and internationally.

The audience heard from the teams behind some the world’s most exciting infrastructure projects utilising NEC. Ken Owen, commercial director of Hinkley Point Centre discusses NEC Contract Management on the EDF power station. Stanley Lo of Paul Y Construction and Stephen Hamill, project manager at MTR Corporation delivered an in-depth presentation of the Kennedy Town Swimming Pool.

Picture: Later in the evening, the Hong Kong-based Kennedy Town project was crowned NEC Large Project of the Year at the very popular NEC Users’ Group Awards, established to recognise and celebrate the world’s finest examples of NEC3 contract collaborations. The winning submissions will be championed globally as the pinnacle of contract collaboration.

Article written by James O'Brien | Published 06 May 2016

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