Procurement CPD

Pellings has hosted another successful CPD seminar to an audience of over 100 construction industry professionals – Procuring for a successful outcome: how to get on the right track

Procuring a high performing team of consultants and constructors should spell success. Yet the consensus within the industry is this regularly fails to deliver projects and works to time, cost and quality.

Each speaker spoke about a different aspect of the challenge, giving attendees a rounded perspective. The three speakers were:

  • Professor Stuart Green, Professor of Construction Management at the University of Reading
  • Kristian Melgaard, Managing Director, Barking & Dagenham Reside
  • Jonathan Sims, Chief Procurement Officer for Engie UK & Ireland

Of note in a highly entertaining and lively presentation, Professor Green was able to provide an alternative viewpoint to a perhaps unjust but widely held view of poor performance in the construction sector. Offering a fresh insight into ‘a legacy of strategic and central Government dilemmas’ that have shaped the procurement landscape since the 2nd world war particularly where this was in response to evolving Housing policy. It was easy to see how the prevalence of self-employed sub-contractors, who contribute to 50% of the sector workforce, leads to a very fragmented procurement and challenging delivery of enshrining quality and value into procurement, rather than a race to the bottom for delivery at the lowest price.

Procurement takes time, plus careful thought and planning. The value of the plan is that you are clear about your destination. Communication is the best way of ensuring we are in a position to be successful and it is the single most important aspect of effective procurement – views well demonstrated in Kristian Melgaard’s presentation giving the clients perspective.

To balance the discussions, Jonathan Sims, outlined ‘how to do procurement with the business, rather than for the business’. Engie has now re-organised its suppliers on the basis of ‘long-established common-sense principles’ into four categories: strategic partners (in whom Engie invests), preferred suppliers; and approved suppliers; plus new entrants for innovation. Sims sees innovation as crucial to securing future contracts. “Innovation is not a buzzword, it is a practical challenge,” he says.

These events, hosted by Pellings, are facilitated to share best practice within the property and construction industry. For more information on the programme contact Caroline Thomson on cthomson@pellings.co.uk.