The sheer scope of winner Scape, as well as the substantial saving that it has achieved for its council owners make it a worthy winner in this category
Scape is a local authority-controlled specialist procurement and construction company wholly owned by Derby City, Derbyshire County, Gateshead, Nottingham City, Nottinghamshire County and Warwickshire County councils in equal shares. It was set up to deliver cost and time savings for UK public sector building projects by providing direct access to firms across the construction sector, thereby removing the need to go through the full EU procurement process for any significant project. According to the company, the approach delivers a collaborative, sustainable and risk-free approach. Scape reports that it has delivered more than 700 projects on time and on budget and that its frameworks have generated around £70m of savings overall.
Lloyds Banking Group One Construction Alliance
Lloyds Banking Group, EC Harris, Havelock Europa, ISG, Sharkeys, Styles & Wood and Wates
The One Construction Alliance has simplified Lloyds Banking Group’s (LBG) supply chain from almost 150 suppliers in 2009 to six strategic partners in 2012. According to the alliance, the move has led to a 5% reduction in capital costs and a 15% reduction in consultancy fees. In addition, LBG says that it has been able significantly to reduce its internal operational costs by securing the best teams from its alliance partners. Figures from alliance partner EC Harris indicate that LBG is now delivering its retail developments at 15% lower cost than the industry average. The alliance says that it has plans to cut a further 3% from capital costs over the course of the next three years.
The Wates/SIG Partnership
The partnership formed by contractor Wates and logistics firm SIG was intended to establish a long-term supply chain strategy that reduced costs by improving the efficiency of the specification process and streamlined supply chain management across Wates’ portfolio of projects. It was established to work on 57 specific projects across the UK, predominantly in the education, social housing and commercial sectors. The strategy involved employing a joint business partner, who worked for both Wates and SIG, involving SIG at the specification process from the outset of each project and using SIG’s expertise to broker deals with manufacturers and subcontractors. According to the partnership, the strategy has already delivered significant benefits to both companies. By using SIG to broker deals, Wates says that it has made savings of £904,600 over the last 12 months, while SIG reports that its has generated additional sales worth more than £1.5m as a result of the partnership. In total, the partnership has identified nearly £3m of potential savings across its portfolio of projects, which should be realised as the developments progress.