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Integrate for Egan

THE TREASURY is to drive government departments down the design and construct route in an attempt to achieve the goals of the Egan Report.

A senior Treasury official at this week's Rethinking Construction conference said that attempts to replace lowest cost tendering were likely to result in more use of firms able to offer 'integrated' services.

He claimed that the Treasury's vision was very similar to that set out by report author BAA chief executive Sir John Egan at the same conference.

Egan said: 'My vision [is that] consultants, contractors and manufacturers will come together in permanent teams that specialise in particular types of facility. They will ... understand the basic systems that constitute their projects and they will have standard designs, using standard components.

'Project teams will assemble designs in the computer using details of standard components obtained from their suppliers. Having developed an electronic prototype they will use it to pre-plan the process of manufacture and assembly. My vision is of the total integration of the manufacture, delivery and assembly of components.'

Later, Egan said that teams could be put together by clients, leading construction firms or, in the case of private finance projects, financiers. He added that property developer MEPC had contracted Balfour Beatty to manage 'the entire supply chain' of a 60M office project.

NCE's Treasury source said there was no reason that European Commission public sector procurement rules should prevent partnering arrangements. However, he admitted these EC rules were 'behind the times' and that the Treasury was involved in 'long term discussions' to change them.

Rethinking Construction, page 4

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