GlaxoSmithKline's decision to pay for innovation had a big impact on how its new headquarters was delivered on time by construction manager Mace.
Just over three years ago construction manager Mace began work on a new 1m square foot headquarters building for SmithKlineBeecham. The schedule was tight at just 39 months from pre-construction to practical completion. But in October, on time and on budget, the first of 3000 staff moved in.

The ending is happy, but it hasn't been an easy ride. "Six months into the pre-construction phase we nearly had to handover the project to a consortium made up of Bovis, Stanhope and Schroeder," says Richard Thorpe, operations director for Mace. "The client had decided it wanted the project delivered off balance sheet, which we couldn't do. But when they discovered it would cost an extra £50m, we got the go ahead to continue."

There was further potential disruption when SmithKlineBeecham merged with GlaxoWellcome. Changes were inevitable. "They wanted to move the executive court and put in a squash court," says Thorpe. "But David Warburton, GlaxoSmithKline's (GSK) project director, protected the integrity of the project and only minimal changes were made."

Luckily for Mace the client was ready to take the unusual step of spending money to achieve the build in such a short timescale. And it wasn't a simple project. It included many demanding elements, including installing eleven new works of art.

GSK's approach was instrumental in helping Mace achieve its success. "In one instance the ductwork installation contractor was having difficulty delivering the VAV units," says Thorpe. "This was having a knock-on effect as installation had to be complete before the other trades could continue.

"We needed 3,500 VAV units in six months, and after three months, only 50 units had been constructed and all had been rejected on quality grounds. On investigation I found that the supplier, at a small factory in Holland, was only geared up to make low quality units - which were no good to us.

"I asked the client to invest in that manufacturing process and using the same supplier, we made the required number of units in six weeks. It took a £250,000 investment from the client, but it meant that there was no overrun and no claim to settle with the ductwork contractor."

Competing for labour was another area where the generosity of the client, and trade contractors, helped out, according to Thorpe. "We needed to provide incentives for the workforce to stay on the site and maintain the programme, and we had to motivate staff at the end of the project when the pressure was on to get the job finished.

"So, in the last four weeks, the trade contractors between them pledged £35,000 and the client £10,000, to use as an incentive for the workforce. We decided the best way to share the money out was to hold a raffle. So we bought six cars and nine motor scooters, sold the raffle tickets for £1 and raised £3000 for charity."

Another way Thorpe kept the workforce at his site was top-notch welfare facilities. "This was known as a nice place to come and work. It was nicked named the M4 Hilton. We were competing with Canary Wharf and other major projects in London for labour, so we had to provide good site facilities to keep the workforce here."

Unusually for a client, GSK was also prepared to invest in training. Management specialist Cranfield University set up a classroom on site to coach Mace's 200 middle managers in good communication skills and stakeholder management.

"The communications course put a framework round the instinctive management decisions we make daily," says Thorpe. "The stakeholder management module taught us how to evaluate the process of other people's expectations and how to manage that. We originally had a budget of £10,000 for the training. The client was so impressed they gave us another £10,000 to spend."

Thorpe says financial management was also key to the project's success and was part of the reason why Mace shaved £500,000 off its budget. "The main reason we saved that money is because we capped off costs at key points along the programme. The system provided a clear audit trail for the client to see where its money was going. When we handed over the building 92% of the final accounts were settled and there have been no claims on the project."

Internal and external communication also played a vital role, says Thorpe. "We located the entire project team, including the client, next to each other on site - which really improved communication. It also created a sense of equality and a team culture - rather than a hierarchical one."

"We also had to convince six local residents groups to allow us 24-hour a day, seven days a week working. We couldn't have finished the project on time without it.

"At the first planning meeting the residents were adamant that we couldn't start work before 8:30 or after 5:00, and that we would be limited to Saturday mornings at the weekend. Within three months of that meeting we were working seven days a week - within six months we were working 24-hours.

"It took some careful negotiation, but I found that by showing them the construction process, they became so engrossed that they were keen for us to complete on time," says Thorpe.

The M4 Hilton

Subcontractor Adrian O’Shea, project manager for Axima Building Services, on the site facilities at GSK House. “I’ve not worked on a job with this level of facilities before. The project offices are comfort cooled, have tea and coffee making facilities and a dishwasher. They feel more like an office than the usual portacabin. For the workers there are drying and changing facilities below the offices. “The canteen is very good. It is more like a commercial kitchen than a typical site canteen. There is a full range of hot meals and snacks available, and the menu varies from week to week. As the project grew in size, and the queues got bigger at lunchtime, an extension was fitted to house a sandwich bar. “I would give the facilities a strong nine out of ten. They are definitely better than on any other site I have worked on.”