Making Sense of Construction Improvement

388 Pages·2011·3.582 MB·English

by  Stuart D. Green

Making Sense of
Construction
Improvement
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Making Sense of
Construction
Improvement
Stuart D. Green
School of Construction Management and Engineering
University of Reading
A John Wiley & Sons, Ltd., Publication
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This edition first published 2011
© 2011 Stuart D. Green
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Library of Congress Cataloging-in-Publication Data
Green, Stuart, 1958–
Making sense of construction improvement / Stuart D. Green.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-4051-3046-2 (pbk.)
1. Construction industry–Management. 2. Economic history.
3. Building–Superintendence. I. Title.
HD9715.A2G698 2011
690.068–dc22
2010051095
A catalogue record for this book is available from the British Library.
This book is published in the following electronic formats: ePDF 9781444341072;
Wiley Online Library 9781444341102; ePub 9781444341089; Mobi 9781444341096
Set in 9.5/12.5pt Palatino by SPi Publisher Services, Pondicherry, India
1 2011
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Contents
Preface xii
1 Construction in the Age of the Planned Economy 1
1.1 Introduction 1
1.2 An inherited legacy 2
1.2.1 The task of nation building 2
1.2.2 Homes for heroes 3
1.2.3 Ronan point 4
1.2.4 The Poulson scandal 5
1.2.5 Prefabrication discredited 6
1.2.6 The shadow of nationalisation 7
1.2.7 Modernisation stalled 8
1.3 Improving construction 9
1.3.1 Survey of problems before the construction
industry 9
1.3.2 Relations and contracts 10
1.3.3 Training and employment 11
1.3.4 The placing and management of contracts 12
1.3.5 The team in design and construction 13
1.3.6 Contract procedures 14
1.4 Planning for stability and predictability 15
1.4.1 The changing context 15
1.4.2 Ignoring reality 16
1.4.3 Undermined by events 18
1.5 Trouble and strife 19
1.5.1 Wild-cat strikes 19
1.5.2 National building strike 20
1.5.3 Crisis, what crisis? 22
1.5.4 Monetarism embraced 22
1.5.6 The winter of discontent 23
1.6 Summary 24
2 The Dawn of Enterprise 27
2.1 Introduction 27
2.2 Uncertain beginnings 28
2.2.1 Flexibility in the marketplace 29
2.2.2 Treasury control and the incubation
of the target culture 30
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vi Contents
2.2.3 The origins of privatisation 30
2.2.4 Right to buy 31
2.2.5 Demise of the DLOs 33
2.2.6 Providence intervenes 34
2.3 Enterprise in formation 35
2.3.1 Milestone privatisations 35
2.3.2 Confronting the ‘enemy within’ 36
2.3.3 Docklands transformed 37
2.3.4 Broadgate breaks the mould 38
2.3.5 Labour mobility 40
2.4 Enterprise unleashed 40
2.4.1 Privatisations gather pace 40
2.4.2 Creeping centralisation 42
2.4.3 Poll tax debacle 43
2.4.4 Enterprise re-invigorated 44
2.5 The enterprise culture 46
2.5.1 The antecedents of enterprise 46
2.5.2 Commercial enterprise 47
2.5.3 Individual enterprise 48
2.5.4 The cult of the customer 49
2.5.5 Enterprise and the prevailing
management orthodoxy 50
2.5.6 Dissenting voices 53
2.6 Summary 55
3 Leanness and Agility in Construction 59
3.1 Introduction 59
3.2 Towards the hollowed-out fi rm 60
3.2.1 The growth of subcontracting 60
3.2.2 The rationale for subcontracting 62
3.2.3 Fragmentation in action 64
3.2.4 Antagonistic relations 65
3.2.5 Competitive pressures 66
3.2.6 Lean and mean in the marketplace 67
3.3 Intensifying labour casualisation 69
3.3.1 The incentivisation of self-employment 69
3.3.2 Employment status: diffi culties of defi nition 70
3.3.3 The benefi ts of self-employment for fi rms 72
3.3.4 Enterprising individuals 73
3.3.5 Loadsamoney 75
3.3.6 Illegal blacklisting 76
3.4 Re-structuring in the client base 78
3.4.1 Demise of the Property Services Agency (PSA) 78
3.4.2 Highways management and maintenance 80
3.4.3 Best value runs riot 82
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Contents vii
3.4.4 The privatisation of research 83
3.4.5 Private fi nance initiative 85
3.5 Summary 87
4 The Improvement Agenda Takes Shape 91
4.1 Introduction 91
4.2 The rise of management procurement methods 92
4.2.1 Management contracting 93
4.2.2 Construction management 94
4.2.3 More lessons from Broadgate 95
4.2.4 Schisms and distractions 97
4.3 Bridging between eras 99
4.3.1 Building Britain 2001 99
4.3.2 A backcloth of change 100
4.3.3 Employment and training 101
4.3.4 Changing client requirements 102
4.3.5 Recommendations for action 103
4.3.6 A disrupted legacy 104
4.3.7 Faster Building for Commerce 105
4.4 Constructing the Team 108
4.4.1 Latham in context 108
4.4.2 Key recommendations 109
4.4.3 Main contractors take the hump 111
4.4.4 Construction Industry Board 113
4.4.5 Construction Clients’ Forum 114
4.5 Progress through Partnership 116
4.5.1 Realising our Potential 116
4.5.2 Outdated attitudes and the need
for culture change 116
4.5.3 Identifi ed key challenges 117
4.5.4 Engines of change 120
4.5.5 Opportunities for wealth creation
and the quality of life 120
4.6 Summary 122
5 Rethinking Construction 126
5.1 Introduction 126
5.2 Background 127
5.2.1 Tories exit stage right 127
5.2.2 New Labour takes charge 128
5.2.3 Construction Task Force appointed 130
5.3 The Egan report 131
5.3.1 The need to improve 132
5.3.2 Drivers for change 133
5.3.3 Improving the project process 135
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viii Contents
5.3.4 Targets for improvements 138
5.3.5 Endorsement of modern management
techniques 144
5.4 Eganites on the march 147
5.4.1 Commitment to the cause 147
5.4.2 Movement for Innovation 149
5.4.3 Shifting alliances 152
5.4.4 Constructing Improvement 153
5.4.5 Construction Best Practice Programme 156
5.5 Summary 159
6 Understanding Clients: Beyond the Machine Metaphor 163
6.1 Introduction 163
6.2 Metaphorical perspectives on organisation 164
6.2.1 Machine metaphor 164
6.2.2 Organic metaphor 166
6.2.3 Organisations as brains 167
6.2.4 Culture metaphor 169
6.2.5 Political metaphor 170
6.2.6 Psychic prison – thinking outside the box 173
6.2.7 Flux and transformation – reality in fl ight 175
6.2.8 Instrument of domination 177
6.3 Metaphors as a process 180
6.3.1 Limitations of metaphor 180
6.3.2 De-valuing of literal language 181
6.3.3 From knowledge creation to sense making 182
6.4 Practical implications 183
6.4.1 Metaphorical lenses 183
6.4.2 Metaphors as self-fulfi lling prophecy 184
6.4.3 Building credibility 185
6.4.4 Metaphors in client briefi ng 186
6.4.5 Trapped in fi xed ways of thinking 189
6.5 Summary 190
7 From Business Process Re-Engineering to Partnering 195
7.1 Introduction 195
7.2 Business process re-engineering in construction 196
7.2.1 Enthusiastic endorsement 196
7.2.2 Lessons from other sectors 198
7.2.3 Vagueness of defi nition 199
7.2.4 Shoot the dissenters 201
7.3 The persuasive appeal of re-engineering 203
7.3.1 Management gurus 203
7.3.2 Playing on insecurity 204
7.3.3 Playing on patriotism 204
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Contents ix
7.3.4 Playing on historical signifi cance 205
7.3.5 Playing on political resonance 206
7.4 Information technology and process improvement 206
7.4.1 Enabling technologies 206
7.4.2 Focus on processes 207
7.4.3 Generic design and construction process protocol 209
7.5 Partnering 213
7.5.1 Defi ning characteristics 213
7.5.2 Success requires faith and commitment 216
7.5.3 Transcending organisational boundaries 217
7.5.4 Buying power and the rhetoric of seduction 218
7.5.5 Living up to the rhetoric 219
7.5.6 Exemplar case studies 222
7.5.7 Paradoxes expounded 227
7.5.8 Trust and power 230
7.6 Summary 232
8 Lean Construction 238
8.1 Introduction 238
8.2 Lean production in critical perspective 239
8.2.1 The guru-hype of lean thinking 239
8.2.2 Wizards, villains and Western hypocrisy 240
8.2.3 Globalisation and Japanese transplants 242
8.2.4 Lean thinking and the enterprise culture 243
8.3 Understanding diffusion 245
8.3.1 Perspectives on organisation 245
8.3.2 Arenas of enactment 247
8.3.3 Consultants, intermediaries and inter-organisation
networks 248
8.3.4 Responses to lean production in the
automotive sector 250
8.4 Lean thinking in the construction context 251
8.4.1 Lean improvement techniques 251
8.4.2 From factory physics to last planner 253
8.4.3 From leanness to anorexia 255
8.5 The meaning of leanness 256
8.5.1 Stages of leanness 256
8.5.2 Perceptions of lean amongst industry
policy makers 259
8.5.3 Concurrent and competing models of lean 263
8.6 Summary 267
9 From Enterprise to Social Partnership 274
9.1 Introduction 274
9.2 Building Britain with New Labour 275
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x Contents
9.2.1 From hope to cynicism 275
9.2.2 PFI, schools and hospitals 277
9.2.3 Enterprise meets social democracy 278
9.2.4 Effi ciency and risk in service provision 280
9.2.5 Partnerships in delivery 282
9.2.6 A blot on the landscape 285
9.3 Modernising Construction 287
9.3.1 On message in an expanding market 287
9.3.2 Partnering ‘takes great strides’ 288
9.3.3 Improving construction performance 289
9.3.4 Improving the performance of departments
and contractors 290
9.3.5 Performance measurement 292
9.3.6 Recommendations for action 294
9.4 Accelerating change 295
9.4.1 Egan rides again 295
9.4.2 Progress since Rethinking Construction 297
9.4.3 Strategic direction and targets 302
9.4.4 Accelerating client leadership 303
9.4.5 Accelerating supply side integration
and integrated teams 305
9.4.6 Accelerating culture change in people issues 308
9.4.7 Cross-cutting issues 311
9.5 Summary 314
10 A Legacy of Dilemmas 318
10.1 Introduction 318
10.2 The changing infrastructure of construction
improvement 319
10.2.1 Constructing Excellence 319
10.2.2 In favour of best practice networks 321
10.2.3 Targets and yet more targets 323
10.2.4 Enduring popularity of machine metaphors 327
10.3 The disconnected agendas of construction improvement 328
10.3.1 The value of good design 328
10.3.2 Be valuable 332
10.3.3 Quality and value in building 335
10.3.4 The industry formerly known as construction 337
10.3.5 Vulnerable workers in the ‘built environment’ 338
10.4 Health and safety 340
10.4.1 Long-term trend in fatalities 340
10.4.2 Statistical uncertainties 340
10.4.3 Balancing voluntary regulation and legislation 342
10.4.4 One Death is Too Many 343
10.4.5 Government response 345
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Contents xi
10.5 Never Waste a Good Crisis 346
10.5.1 Ten years on 346
10.5.2 Re-writing history 348
10.5.3 Progress so far 350
10.6 A fi nal word 353
Postscript 354
Index 359
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