The Latham Report, titled Constructing the Team, was an influential report written by Sir Michael Latham, published in July 1994. Latham was commissioned by the United Kingdom government and industry organisations to review procurement and contractual arrangements in the UK construction industry, aiming to tackle controversial issues facing the industry during a period of lapse in growth as a whole.
The Latham Report was not the first report to identify systemic failings in the UK construction industry; previous reports dating back to the 1960s had identified similar issues and made similar recommendations. [1] However, this report did gain industry and government support. [lower-alpha 1]
Latham identified industry inefficiencies, condemning existing industry practices as 'adversarial', 'ineffective', 'fragmented', 'incapable of delivering for its clients' and 'lacking respect for its employees'.
He urged reform and advocated partnering and collaboration by construction companies. A key concept was that through teamwork the construction industry could delight its customers. Latham made 53 recommendations to change industry practices, to increase efficiency and to replace the bureaucratic, wasteful, adversarial atmosphere prevalent in most construction projects with one characterised by openness, co-operation, trust, honesty, commitment and mutual understanding among team members. For example:
The Report spawned a raft of initiatives including the establishment of the Construction Industry Board to oversee reform. At the request of the Construction Clients' Forum (formed following Latham's recommendation), the CIB published a further report, Partnering in the Team in 1996. [1] In parallel, the industry reform group, the Reading Construction Forum, published Trusting the Team: the Best Practice Guide to Partnering in Construction in 1995 (for which Latham wrote the foreword). [4]
Subsequent initiatives included the 1998 Egan Report Re-thinking construction, and the establishment of industry change organisations including the Design Build Foundation (1997) Construction Best Practice Programme, the IT Construction Best Practice Programme, Movement for Innovation and Constructing Excellence. The Latham and Egan Reports' focus on collaboration was also referenced by Chief Construction Adviser Paul Morrell in the UK government construction strategy in 2011. [5]
Latham's call for quality registers of approved contractors, sub-contractors and consultants led to the 1998 establishment of Constructionline. [6]
The Latham Review commended the establishment of the Interdisciplinary Design for the Built Environment programme at the University of Cambridge (page 73) and in turn was one of the influences that helped to shape the early syllabus of the IDBE course.
Adjudication is the legal process by which an arbiter or judge reviews evidence and argumentation, including legal reasoning set forth by opposing parties or litigants, to come to a decision which determines rights and obligations between the parties involved.
Construction is a general term meaning the art and science of forming objects, systems, or organizations. It comes from the Latin word constructio and Old French construction. To 'construct' is a verb: the act of building, and the noun is construction: how something is built or the nature of its structure.
In finance, a surety, surety bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. Usually, a surety bond or surety is a promise by a surety or guarantor to pay one party a certain amount if a second party fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation. The person or company providing the promise is also known as a "surety" or as a "guarantor".
IR35 is the United Kingdom's anti-avoidance tax legislation, the intermediaries legislation contained in Chapter 8 of Income Tax Act 2003. The legislation is designed to tax 'disguised' employment at a rate similar to employment. In this context, "disguised employees" means workers who receive payments from a client via an intermediary, i.e. their own limited company, and whose relationship with their client is such that had they been paid directly they would be employees of the client.
The Joint Contracts Tribunal, also known as the JCT, produces standard forms of contract for construction, guidance notes and other standard documentation for use in the construction industry in the United Kingdom. From its establishment in 1931, JCT has expanded the number of contributing organisations. Following recommendations in the 1994 Latham Report, the current operational structure comprises seven members who approve and authorise publications. In 1998 the JCT became a limited company.
Sir Michael Anthony Latham DL HonFREng was a British Conservative Member of Parliament.
Contract management or contract administration is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution. It can be summarized as the process of systematically and efficiently managing contract creation, execution, and analysis for the purpose of maximizing financial and operational performance and minimizing risk.
The New Engineering Contract (NEC), or NEC Engineering and Construction Contract, is a formalised system created by the UK Institution of Civil Engineers that guides the drafting of documents on civil engineering, construction and maintenance projects for the purpose of obtaining tenders, awarding and administering contracts. The NEC contract is widely used in the United Kingdom. There have been attempts, largely unsuccessful, to introduce the NEC contract into both Australia and New Zealand from at least 1994 but the contract remains relatively obscure in both countries.
The Egan Report, titled Rethinking Construction, was an influential report on the UK construction industry produced by an industry task force chaired by Sir John Egan, published in November 1998. Together with the Latham Report, Constructing the Team, produced four years earlier, it did much to drive efficiency improvements in UK construction industry practice during the early years of the 21st century.
Constructing Excellence is a United Kingdom construction industry membership organisation created in 2003, the only such which draws its member organisations from across the industry supply chain, ranging from clients, through contractors and consultants, to suppliers and manufacturers of building materials and components. Constructing Excellence attempts to apply the reforms recommended in the 1994 Latham and 1998 Egan Reports, having absorbed several bodies established following those reports. In August 2016, Constructing Excellence became part of BRE, but retains its identity and core purposes.
The Strategic Forum for Construction is a United Kingdom construction industry organisation established in 2001 as the principal point of liaison between UK government and the major construction membership organisations. It also enables different representatives of the UK industry to discuss strategic issues facing construction and to develop joint strategies for industry improvement.
The UK Contractors Group (UKCG) was the primary association for construction contractors operating in the United Kingdom from January 2009 until September 2015.
Construction collaboration technology refers to software applications used to enable effective sharing of project-related information between geographically dispersed members of a construction project team, often through use of a web-based software as a service platform.
Retainage is a portion of the agreed upon contract price deliberately withheld until the work is complete to assure that contractor or subcontractor will satisfy its obligations and complete a construction project. A retention is money withheld by one party in a contract to act as security against incomplete or defective works. They have their origin in the British construction industry Railway Mania of the 1840s but are now common across the industry, featuring in the majority of construction contracts. A typical retention rate is 5% of which half is released at completion and half at the end of the defects liability period. There has been criticism of the practice for leading to uncertainty on payment dates, increasing tensions between parties and putting monies at risk in cases of insolvency. There have been several proposals to replace the practice with alternative systems.
Paul Dring Morrell is an English chartered quantity surveyor. Formerly senior partner of Davis Langdon, he was, from November 2009 to November 2012, the UK Government's first Chief Construction Adviser.
Richard Gilbert Saxon CBE is an English architect. He was chairman of Building Design Partnership (BDP), chairman of BE, a vice-president of the Royal Institute of British Architects (2002-2008), Master of the Worshipful Company of Chartered Architects (2005-2006), president of the British Council for Offices (1995-1996) and Chairman of the Joint Contracts Tribunal. He was awarded CBE in 2001 for services to British architecture and construction.
Construction 2025 is a British government report issued in July 2013 outlining its industrial strategy for the sector until 2025. Key aims were to reduce programme lengths and costs, reduce greenhouse gas emissions and improve the trade gap. The policy saw the establishment of the Construction Leadership Council to drive change in the industry.
Never Waste a Good Crisis, also known as the Wolstenholme Report, is a 2009 report written by Andrew Wolstenholme and commissioned by Constructing Excellence. Wolstenholme analysed the British construction industry's performance against the objectives set out in the 1998 Egan Report. His assessment was pessimistic, noting a failure to meet targets in almost all areas bar profitability. Wolstenholme outlined several problems prevalent in the industry and measures that might be taken to resolve them, calling on the industry to use the Great Recession as an opportunity to change its performance.
The Farmer Review of the UK Construction Labour Model, commonly known as the Farmer Review or by its subtitle Modernise or Die, was a 2016 report commissioned by the British Government. Written by industry veteran Mark Farmer, it identified key failings in the British construction industry. Farmer stated that research and development was almost non-existent, productivity was low and cost inflation high. He also noted a lack of skilled workers required to deliver the government's infrastructure and housebuilding targets. Farmer made ten key recommendations for the industry to follow which included reform of the Construction Industry Training Board, greater use of off-site construction techniques, greater promotion of the industry to school children, reform of tax and planning processes and for implementation of a 0.5% tax on clients in projects that do not follow the recommendations. The government later agreed to implement all of the recommendations except for the additional taxation.
The Loddon Bridge disaster was a collapse of falsework during construction of a reinforced concrete deck on the Loddon Bridge of the A329(M) motorway in Berkshire, England, on 24 October 1972. It killed three people and injured ten others. It is thought that a design error led part of the falsework, transitioning between the deck and the supporting towers, to be understrength and it failed by buckling or twisting. The part-poured deck fell into the river below. The collapse was investigated by Her Majesty's Factory Inspectorate and the contractor, Marples Ridgway pleaded guilty to a breach of the construction regulations at a trial in Bracknell, being fined £150.