Chapter 9 “Procurement and Supply” of Dame Judith Hackitt’s “Building a Safer Future” report describes a lack of clear roles and responsibilities, ambiguous regulations and guidance and unhelpful behaviours, such as contract terms and payment practices that prioritise speed and low cost solutions, which allow the market to procure the construction of buildings without safety in mind. These characteristics are held responsible for providing poor value for money and poor building safety outcomes.
The report also describes the problems of inadequate specification, focus on low cost and adversarial contracting making it difficult and more expensive to produce a safe building.
Dame Hackitt makes three recommendations in respect of procurement of Higher Risk Residential Buildings (HRRBs):
9.1 For HRRBs, principal contractors and clients should devise contracts that specifically state that safety requirements must not be compromised for cost reduction.
9.2 For HRRBs, tenders should set out how the solution that is proposed will produce safe building outcomes, approaching the building as a system. Those procuring should use the tender review process to test whether this is the case.
9.3 For HRRBs the information in the contracting documentation relating to the safety aspects should be included in the digital record set out in Chapter 8 of the report.
In addition, the report recommends that the government should consider applying these requirements to other multi-occupancy residential buildings and to institutional residential buildings. This is something that the Housing, Communities and Local Government Select Committee will probably consider in their forthcoming “Further examination of Independent Review of Building Regulations”, when they will gather evidence on the immediate and longer-term changes needed to improve the safety of residential tower blocks.
Why stop there? Any construction procurement strategy should include a requirement for safety to be prioritised over cost reduction. Where is the logic that states that the procurement of lower risk buildings or building operations in other residential or non-residential buildings can avoid the need for safety?
Risk assessment involves the likelihood of an identified hazard occurring being multiplied by the severity of harm to produce a level of risk. Existing risk mitigation can lower the level of risk, but such risk assessments should be carried out before classifying a building project as higher or lower risk. Only after the risk level has been calculated should the risk mitigation measures be proposed and a residual level of risk be calculated to enable satisfactory control of those risks.
Pre-empting the level of risk is dangerous and may lead to a “no change” mentality within the construction and procurement industries.
All framework procurement exercises should include rigorous assessments of tenderers’ capabilities in respect of Health and Safety. Procurement evaluations should always prioritise quality (including Health and Safety) over initial cost to achieve true value for money. Indeed, doing so may not produce the cheapest solution.
Collaborative approaches to Framework call-off projects should be promoted, to ensure that procurement and delivery teams work together to produce safe solutions. As described in Lord Young’s report “Growing Business” and the Public Contracts Regulations 2015, contracts should include clauses covering prompt consideration and payment of invoices down the supply chain as well as clauses that specifically oblige all team members to ensure that safety requirements will not be compromised for cost reduction.
Only then will we be building a safer future for all.