The 1990s have seen considerable changes for the UK construction industry, many of which have a significant impact on the methods by which projects are to be managed and reviewed.
The drive for change emanated from the final report in July 1994 of the joint government and industry review of procurement and contractual arrangements in the UK construction industry, under the chairmanship of Sir Michael Latham, entitled 'Constructing the Team'. More recently, this has been reinforced by Sir John Egan's task force report 'Rethinking Construction.'
Among the recommendations of 'Constructing the Team' was that the Government, including public sector organisations such as local authorities and health authorities, should become a 'best practice client'. Sir Michael Latham has
stated that clients should be at the centre of the procurement process and be aware of what they need to do to achieve value for money from their projects.
In producing this comprehensive publication, CIPFA is providing organisations with the tools to achieve these aims and, at the same time, aiding the implementation of the Latham report's recommendations within the public
sector.
The procedures referred to in the guide relate mainly to construction contracts. But the principles of specifying requirements, tendering, monitoring progress during the contract and post contract assessment can be applied to any form of contract for the provision of goods or services.
'The Good Practice Panel of the Construction Industry Board was pleased to endorse this guidance. It is an excellent and thorough guide, gathering in one document all the necessary advice for auditors and contract
professionals. The guidance is fully consistent with the practices promoted by the CIB in the name of, and with the full support of, all its member bodies, ie the representative bodies of the construction industry, its
clients (all parts of the private and public sector) and government. The standards of 'good clientship' promoted herein are fundamental to delivering the improvements in construction performance.
The CIB is delighted to have supported the authors in the production of this guide. Its adoption by auditors will make a large contribution to improving value-for-money from all construction projects. Good practice is good business, for all parties, and we call upon the construction industry and its clients to work with you, the auditors, to realise the benefits'.
Don Ward
Chief Executive, Construction Industry Board
The publication considers its subject in great but accessible detail and includes guidance on:
Getting Started
Defining the Project
Assembling the Team
Designing and Constructing
Completion and Evaluation
Appointment of Consultants
The Private Finance Initiative
Who should read this publication?
Anybody engaged on the financial management or audit of contracts will find the guide indispensable.
Endorsed by:
The Institute of Internal Auditors
Construction Industry Board
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