Describe How to Establish Respectful Professional Relationships with Adults

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CONSTRUCTING THE TEAM
by Sir Michael Latham

Joint Review of Procurement and Contractual Arrangements in the United Kingdom Construction Industry

Final Report
July 1994

© Crown copyright 1994 Applications for reproduction should be made to HMSO First published 1994

ISBN 0 11 752994 X

Designed by Design, Drawing and Print Services
DEPARTMENT OF THE ENVIRONMENT

Foreword Constructing the Team

................................................. v

Executive Summary ..............................................vii

Chapter One
Introduction and the Role ofClients ................................................1

Chapter Two
General Comments on the Economic Background ................................................ 7

Chapter Three
ProjectandContractStrategiesandBriefing ............................................... 11

Chapter Four
TheDesignProcess: Consultantsand Specialist Contractors .............................................. 23

ChapterFive
Contract Choice for Clients .............................................. 31

Chapter Six
Selection/Tendering Procedures ..............................................43

Chapter Seven
Issues Which DeterminePerformance .............................................. 63

Chapter Eight
Team Work on Site ..............................................81

Chapter Nine
Dispute Resolution
..............................................87

Chapter Ten
InsolvencyandSecurityofPayment .............................................. 93

Chapter Eleven
LiabilityPostCompletion
.............................................. 99

Chapter Twelve
Implementation and Priorities ............................................107

Appendix I
TERMS OF REFERENCE FOR 'THE REVIEW
............................................. 113 ............................................. 114

Appendix II
THE FUNDING BODIES

Appendix 111
116 MEETINGS .............................................

Appendix IV
THE JCT AND THE CCSJC

....................................... 120

Appendix V
NOTE BY THE CIC: AN ANALYSIS OF ACTION IN RELATION TO THE RECOMMENDATIONS OF THE “CROSSING BOUNDARIES ’ REPORT (At 15 April 1994) 1

.............................................. 123

Appendix VI
TEXT OF THE ClPS PROPOSAL FOR “Construction Sourcing”

............................................ 128

FOREWORD
Last December, “Trust and Money” sought to identify the main issues of the Review, and invited comments and proposals. Avery large number have been received. Public debate has been encouraging, wide ranging and serious. This Final Report makes recommendations to tackle the problems revealed in the consultation process. The Review has been about helping clients to obtain the high quality projects to which they aspire. That requires better performance, but with fairness to all involved. Above all, it needs teamwork. Management jargon calls that ”seeking win-win solutions”. I prefer the immortal words of the Dodo in ”Alice’s Adventures in Wonderland”, “Everybody has won and all must have prizes”. The prize is enhanced performance in a healthier atmosphere. It will involve deeper satisfaction for clients. It will lead to a brighter image and better rewards for a great industry. The issues of the Review provoke profound disagreement throughout the construction process. I could not deal with every problem raised with me, still less seek to solve them all. Some proposals which were made to me towards the end of the Review require further debate. I have tried to produce a balanced package which offers hope to all, reassurance to some, but despair to none. This has not been a Government Review of the industry. It has been a Report commissioned jointly by the Government and the industry, with the invaluable participation of clients: It has been completed within a very tight pre-determined timetable to discharge extremely wide terms of reference. It is the...
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