Unlocking opportunities through early engagement - it's obvious, isn't it?
Nick Gibb, our deputy managing director for the Midlands, shares five reasons why funders and developers should change the way they procure projects and engage contractors early to unlock a development’s true potential - avoiding unnecessary added time and costs.
During the critical development stage of a project, there can be delays of months or even years. This is often down to several factors, including poor understanding of the brief, poor planning, or the design being done in isolation without buildability advice. These delays are often compounded by added capital costs owing to design re-work. For customers, these delays can also increase financing costs and reduce the return on investment.
1. To increase scheme viability
Early engagement gives contractors like us the opportunity to contribute to the development and design of a project we will ultimately be responsible for building. When explained in such simple terms it seems the obvious thing to do. Where you have a clear set of aims, bringing a contractor on board early will help to share the vision and make it as close to reality as possible.
The contractor plays a fundamental role in determining viability – or ‘buildability’ when discussed in a real construction context. Whether or not the design needs adapting to meet market conditions you are in at the time, early engagement will enhance the certainty that a scheme is viable and can progress smoothly through the necessary gateways to delivery
It can also help save time and money later down the line by preventing the progression of a design that isn’t viable and needs to be redesigned so that a contractor can deliver on expectations.
I can say with confidence that several schemes that we have been involved in, in recent years, would not have met their initial vision or have been delivered had we not been engaged during the early stages. You can read more about these below in our case studies on this page.
2. To provide greater certainty
Once a design and plan of action are reached, the last thing you need is doubt hanging over you. Having a contractor engaged from the outset, with the responsibility of giving ‘delivery capable’ advice, provides greater certainty to everyone involved. Most construction schemes have huge upfront costs, so investment should be made with confidence that what has been planned will be delivered, with minimal risks.
Beyond this, early engagement will provide you with certainty on quality and programme, so the final product is created to a high standard within the expected time. Utilising a contractor’s experience will also mean that your expectations can be managed more easily. Some of the problems that may be encountered can be avoided or overcome quicker through early engagement – such as getting on-site following a challenging planning permission process or securing products by placing an early order during material availability shortages and rising inflation. We placed orders early and vested them at the Indigo development in Peterborough and it saved the customer almost £1m.
Deviating from the plan, due to late engagement and traditional procurement processes, can also have devastating impacts on the sustainability of a scheme. There are many ways to make a scheme sustainable, but these must be carefully planned and considered from the outset. At the same time, there are also many ways to quickly ruin efforts. Therefore, risk management during early engagement has an important role to play in designing a scheme that is fit for people and the planet.
3. To improve long-term profitability
The bottom line is of paramount importance for you and kicking a scheme off with a contractor on board will make a difference to the return on investment. Experience and expertise in construction result in the ability to manage risk, have greater cost control and therefore profitability. The earlier the engagement, the easier it becomes to make sure schemes stack up financially. Design and programme consultancy are two vital elements that will impact the bottom line, which contractors are excellently placed to advise on.
Contractors have the full picture of what impact inefficiency and waste can have, which is why businesses like Willmott Dixon have collectively driven betterment in their operations and driven efficiencies. This dedication to efficiency has resulted in us being able to share the benefits with our customers, developers, and funds, which have similarly outlined increased efficiency in their own operations as a result.
4. To assure a quality end product
High-quality schemes are what everyone wants, but it all starts with getting the right project team on board to deliver the right design. Quality is subjective, but expectations are easier to manage when the design process starts and finishes with a contractor that is privy to the vision. The contractor is then in the best position to put the necessary processes in place to achieve the best result possible.
Early engagement opens the door to the latest innovations, which can be considered in good time and implemented successfully if desired. For schemes that have several plots, early engagement has the potential to unlock potential for the entire site and showcase what is possible with the right partners.
5. It really works
Without simply listing projects where early engagement has helped us to meet customers, funders’ and developers’ expectations on the four points already mentioned, we point towards our quick thinking to redesign a scheme and implement modern methods of construction, which recovered phase one of the Perry Barr Residential Scheme (PBRS).
The original viabilities weren’t affordable, so were approached to find alternative solutions to address the viability issues. Bringing in trusted partners to help reset the project, through both design and product selection, provided renewed confidence in just one week. With the new plan and specialist delivery partners around us, we were able to move forwards at speed, overcoming logistical and buildability design challenges and pre-procuring key products to be on site within 12 weeks. This efficiency unlocked the viability of the whole scheme and provided a benchmark buildability solution for the wider redevelopment. We also ensured the availability of products and a quick start on site by placing early orders on crucial offsite components, such as the lightweight steel frame and bathroom pods, during the planning phase.
This set us off on the right foot as we were not only able to salvage the project, but also use our plots as a focal point within the wider scheme by adopting an offsite approach. Ultimately, this approach led to huge benefits for our customer, our supply chain partners and our businesses.
How can we make it happen?
Our experience in Perry Barr, and other projects that followed in a similar vein, show us that this can be achieved when we lock in and work together to respond to a brief – having achieved this in only seven days, with a full viability and optioneering report. Confidence in this initial exercise should unlock a more detailed exercise, bringing in key partners, with a commitment to a developed design concept within a few weeks of this report. At this stage, we would also provide a Guaranteed Maximum Price, allowing decisions to made on moving forwards, with clarity and certainty
Are you on the fence with a scheme? Contact me today below to discuss a complimentary optioneering report so that we can make it work.