A programme to roll out the reimaging of job centres across the UK was devised by the Department for Work and Pensions (DWP). It was keen to make this an exemplary project and to drive out the waste it saw in the system by integrating the supply chain across the country. In procuring, it selected on the basis of 40 per cent on price and 60 per cent on quality. The DWP asked the lead contractor to form an integrated team comprising consultants, the client and supply chain representatives, with a virtual company ethos and a shared sense of commitment. Incentives were based on ‘team output’, which meant that the team worked together to optimise value and maximise supply chain expertise during the design process. A percentage of progress completed (PPC) partnering contract was used and an open-book payment system was utilised whereby contractors were paid actual costs but were also offered financial incentives to make cost savings. No penalty or retention clauses were used in order to emphasise the client’s trust in the team. This soft or ‘people’ approach produced impressive results in relation to the DWP’s demanding targets:
• 12 per cent saving on construction against a target of £80 million.
• 25 per cent reduced component prices on a target of £40 million.
• 89 per cent of job centres finished within target cost.
• 85 per cent of job centres completed on schedule.
• A tenfold improvement on average HSE health and safety statistics.
• No contractual disputes.
