What does a good partnership look like?
We must have early and honest conversations about cost and risk allocation. Local authorities might start a project expecting it to cost £50 million but, two years later, we’re told it will cost £70 million. Local authorities simply don't have this kind of money. Clear communication and realistic planning are essential if we’re going to work well together.
A delicate balancing act for public procurement: the discussion highlighted that bringing residential solutions forward for local authorities is often a balancing act of multiple departmental demands.
Property colleagues are keen to retrofit, upgrade and improve. Housing colleagues are desperate to build new to improve capacity, and sustainability and climate change departments are providing the much-needed caution to local authority decision makers to act sustainably.
Attendees highlighted that early procurement of a partner that understands the holistic overview is crucial to bringing competing needs together to deliver. The opportunity for a partner to come in and offer expertise on how to deliver would be a game changer in ensuring successful outcomes. A clear consensus emerged among attendees - strong partnerships and early conversations between local authorities, contractors, and developers are essential for tackling housing challenges.
Early contractor involvement was a key theme in the discussion, with many attendees advocating for engaging specialists early in the design stage. Engaging specialists early can streamline planning processes, mitigating delays caused by shortages of planning officers. It also enhances financial viability by identifying cost-effective solutions upfront and supports better risk management, helping councils overcome risk aversion.
Ultimately, early engagement allows for a proactive approach to housing delivery, balancing short-term pressures with long-term sustainability.
Rather than waiting until RIBA stage 3 or later, bringing in contractors at stage 2 allows for informed cost planning, and developing the design to client budget, risk mitigation, and innovative solutions such as offsite manufacturing. Transparency, trust, and risk sharing were also highlighted as key elements of successful partnerships.
Attendees also discussed the need for a shift in mindset, particularly among senior officers and politicians. Risk aversion and entrenched approaches were argued to slow progress, making it difficult to embrace new delivery models, such as joint ventures.
Local authority attendees outlined how private sector delivery partners can provide fresh perspectives and independent oversight – which could be key in challenging these existing mindsets. The participants agreed that this approach could foster a more effective strategy for housing delivery.
Deciding on significant carbon and cost savings from the outset is essential. Flexibility and early discussions on crucial matters like carbon reduction are vital before finalising designs, as it's often too late afterwards. This approach allows for major savings and prevents the need to revert stages. While stages 2 and 3 might be extended, stages 4 and 5 could be shorter. Remember, the design phase is always cheaper than construction
Pre-planning
RIBA Stage 2
RIBA Stage 3
RIBA Stage 4 onwards
We see the benefits of early procurement in supporting local authorities. In our recent Wandsworth project, our in-house technical services team tackled infrastructure issues from day one, helping de-risk the site before procurement even began, drawing heavily on our end to end capability, Kier 360.
We must have early and honest conversations about cost and risk allocation. Local authorities might start a project expecting it to cost £50m but, two years later, we’re told it will cost £70m. Local authorities simply don't have this kind of money. Clear communication and realistic planning are essential if we’re going to work well together.
David Rowsell of Kier Construction highlights why early engagement is essential in adding value and having specialist input early on makes a significant difference.
When cost plans are being drawn up, having specialist input early on, rather than waiting until stage 3 procurement, makes a significant difference. Unfortunately, we still see schemes coming to us late in the process. Sometimes, these schemes are overdesigned and not designed to budget – they might look fantastic but don't offer value for money for the client, so they need to be revised. If contractors are only getting involved at stage 3+, then half of the opportunities to save money are being missed.
MacFarlane Place at Television Centre is a highly anticipated affordable housing development in White City comprising of two residential blocks facing Wood Lane, consisting of eight-storeys and nine-storeys respectively and spanning 151,000 sq ft.Handed over to Mitsui Fudosan and Stanhope, the new development provides 142 mixed tenure residential units, which will be managed by The Peabody Group. The apartments offer a selection of London Affordable Rent, London Living Rent and shared ownership properties with modern facilities and private outdoor spaces.
Kier’s end-to-end capability, including in-house design, decarbonisation and engineering and construction expertise, enabled the team to successfully mitigate a number of logistical challenges of being constrained by a tube viaduct, TV studios and residential properties.
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