Egan Report
Encyclopedia
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
produced four years earlier, Rethinking Construction did much to drive efficiency improvements in UK construction industry practice during the early years of the 21st century.
John Prescott
commissioned a Construction Task Force, chaired by Sir John Egan, a former chief executive of Jaguar Cars, to look at the construction industry from the clients' perspective. The Task Force was to advise on opportunities to improve the efficiency and quality of the UK construction industry's service and products, to reinforce the impetus for change, and to make the industry more responsive to the needs of its customers.
), the Task Force report endorsed much of the progressive thinking already under way, and sought to improve performance through eliminating waste or non-value-adding activities from the construction process. It identified five key drivers of change:
Having put the client's needs at the very heart of the process, it advocated an integrated project process based around four key elements:
).
In March 1999, the UK government's Achieving Excellence in Construction initiative was launched to improve the performance - as industry clients - of central government departments, executive agencies and non-departmental public bodies. The initiative set out a route map with performance targets under four headings: management, measurement, standardisation and integration. Targets included the use of partnering and development of long-term relationships. Against this background, other government departments began to recognise the impact partnering could make and to promote the approach (e.g.: CABE
/HM Treasury
2000, National Audit Office
2001).
In July 2001, as successor to both the earlier Task Force and the CIB, the Strategic Forum for Construction
was set up by ministers under the chairmanship of Sir John Egan. On 12 September 2002 it published Accelerating Change, a report on its first year of activity.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
construction industry produced by an industry task force chaired by Sir John Egan
John Egan (industrialist)
Sir John Egan is a notable British industrialist, associated with businesses in the automotive, airports, construction and water industries. He was chief executive of Jaguar Cars from 1984 to 1990, and then served as chief executive of BAA from 1990 to 1999...
, published in November 1998. Together with the Latham Report
Latham Report
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,...
produced four years earlier, Rethinking Construction did much to drive efficiency improvements in UK construction industry practice during the early years of the 21st century.
Historical context
While the 1994 Latham Report had stimulated various industry initiatives, government action was deemed necessary to get the industry to make the necessary changes. In October 1997, the then Deputy Prime MinisterDeputy Prime Minister of the United Kingdom
The Deputy Prime Minister of the United Kingdom of Great Britain and Northern Ireland is a senior member of the Cabinet of the United Kingdom. The office of the Deputy Prime Minister is not a permanent position, existing only at the discretion of the Prime Minister, who may appoint to other offices...
John Prescott
John Prescott
John Leslie Prescott, Baron Prescott is a British politician who was Deputy Prime Minister of the United Kingdom from 1997 to 2007. Born in Prestatyn, Wales, he represented Hull East as the Labour Member of Parliament from 1970 to 2010...
commissioned a Construction Task Force, chaired by Sir John Egan, a former chief executive of Jaguar Cars, to look at the construction industry from the clients' perspective. The Task Force was to advise on opportunities to improve the efficiency and quality of the UK construction industry's service and products, to reinforce the impetus for change, and to make the industry more responsive to the needs of its customers.
The Report
Informed by experiences in other industries (notably manufacturingManufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
), the Task Force report endorsed much of the progressive thinking already under way, and sought to improve performance through eliminating waste or non-value-adding activities from the construction process. It identified five key drivers of change:
- committed leadership
- a focus on the customer
- integrated processes and teams
- a quality driven agenda, and
- commitment to people.
Having put the client's needs at the very heart of the process, it advocated an integrated project process based around four key elements:
- product development
- project implementation
- partneringBusiness partneringBusiness partnering is "the development of successful, long term, strategic relationships between customers and suppliers, based on achieving best practice and sustainable competitive advantage".- Mission :...
the supply chainSupply chainA supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
, and - production of components.
The Legacy
Existing industry bodies such as the Construction Industry Board (CIB), Construction Best Practice Programme and the Design Build Foundation incorporated the Egan agenda into their activities, and were augmented by a new industry organisation, the Movement for Innovation (M4I). These national level organisations were tasked with application of the ideas of Rethinking Construction through ‘demonstration projects’, and regional ‘cluster groups’ or best practice clubs (these initiatives continue today under the auspices of Constructing ExcellenceConstructing Excellence
Constructing Excellence is a UK-based construction industry membership organisation. In the UK, it is unique insofar as its member organisations are drawn from across the industry supply chain, ranging from clients, through contractors and consultants, to suppliers and manufacturers of building...
).
In March 1999, the UK government's Achieving Excellence in Construction initiative was launched to improve the performance - as industry clients - of central government departments, executive agencies and non-departmental public bodies. The initiative set out a route map with performance targets under four headings: management, measurement, standardisation and integration. Targets included the use of partnering and development of long-term relationships. Against this background, other government departments began to recognise the impact partnering could make and to promote the approach (e.g.: CABE
Commission for Architecture and the Built Environment
The Commission for Architecture and the Built Environment was an executive non-departmental public body of the UK government, established in 1999. It was funded by both the Department for Culture, Media and Sport and the Department for Communities and Local Government.-Function:CABE was the...
/HM Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
2000, National Audit Office
National Audit Office (United Kingdom)
The National Audit Office is an independent Parliamentary body in the United Kingdom which is responsible for auditing central government departments, government agencies and non-departmental public bodies...
2001).
In July 2001, as successor to both the earlier Task Force and the CIB, the Strategic Forum for Construction
Strategic Forum for Construction
The Strategic Forum for Construction is a United Kingdom construction industry organisation established in 2001 as the principle point of liaison between UK government and the major construction membership organisations...
was set up by ministers under the chairmanship of Sir John Egan. On 12 September 2002 it published Accelerating Change, a report on its first year of activity.