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CHAPTER 2
Our Ambition for UK Construction

Set targets for Improvement

19. To drive dramatic performance improvement the Task Force believes that the construction industry should set itself clear measurable objectives, and then give them focus by adopting quantified targets, milestones and performance indicators. This is evidently not the case at present. For example, it is not clear whether the construction industry is on target to meet Sir Michael Latham's aspiration to see a 30% improvement in productivity. In this respect, we welcome the work which the Construction Industry Board has now commenced on performance indicators.
20. If construction is to share in the benefits of improved performance the objectives and targets that it sets must be directly related to client's perceptions of performance. This means measures of improvement in terms of predictability, cost, time and quality. Clients will then be able to recognise increased value and reward companies that deliver it. Targets must also be set for improving the quality and efficiency of construction processes - in terms of safety and labour productivity for example. In this way corners are not cut and companies and their staff share in the benefits of success. In our experience this is the only way to make gains last and deliver continuous improvement.

Measure Progress

21. Construction must also put in place a means of measuring progress towards its objectives and targets. The industry starts with a clean sheet in this respect. It has a great opportunity to create an industry-wide performance measurement system which will enable clients to differentiate between the best and the rest, providing a rational basis for selection and to reward excellence.
22. In addition to objectives and targets, the Task Force would therefore like to see:

• the construction industry produce its own structure of objective performance measures agreed with clients;
• construction companies prepare comparative performance data and share it with clients and each other. The experience of other industries shows that this can be done without compromising legitimate needs for confidentiality;
• a system of independently monitored company 'scorecards', measuring companies' progress towards objectives and targets, instead of simple benchmarking. The names of the best performers would be made public and every company would be privately informed of where it stood in relation to its competitors.

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