Great Leaders Programme - Aspiring Directors Application Summary

Matt Smith

BUSINESS IMPROVEMENT PROPOSAL

THREE PILLARS PROPOSAL

The Problem • We have a large supply chain with no real checks and balances beyond the PQQ. • The process of engagement is inefficient and fragmented, from inception (enquiry) through to completion • In some areas we have little or no choice of SSCP requiring a lengthy on boarding process. • Our SSCP are not aware of our Three Pillar commitment and our associated expectations. • Not maximising the value from existing supply chain relationships. • A lack of maturity when it comes to understand the value SSCP could bring to our clients. • The majority of sub contracts are purely transactional and not strategic. • Ensure a suite of contracts are available and that there is guidance on their suitability for the type and complexity of the works being undertaken. A commercial maturity is required with incentivisation the key. • A lean and efficient procurement process is devised and adopted by all divisions. • Consider the use of framework agreements for long-term contracts. • PQQ to include challenging questions regarding the supply chains environmental and social value credentials. Include details of SSCP in Map16 to allow informed decisions to be made on locality of workforce etc. • The hub would allow us to help support our SSCP with education and collaboration. E-learning courses on topics such as contract knowledge, commercial awareness, FIRS, anti-bribery etc. H&S (Big Ten) • Encourage innovation and technology. In turn we would share vital messages in terms of health and safety incidents etc. • Introduce a rating system to allow the SSCP (1 to 5 stars or Bronze/Silver/Gold) and determine strengths/weaknesses, to improve decision making. • Provide opportunity for the SSCP to demonstrate their alignment to our Three Pillars most importantly Carbon Reduction. The Improvement • A more dynamic and efficient supply chain, working collaboratively with FM Conway to help innovate and effect sustainable change. • Clear benefits will be gained in improved performance, reduction in risk and a buy-in to our H&S culture. The Solution • Overhaul the current process and review the current list of SSCP. Create a hub where we can engage with our SSCP to Show that we value these pillars within our procurement process – value vs price.

Through the development of self-delivery capabilities, build a Structures Waterproofing business to support our existing client base and the wider external market.

Market opportunity • There is a huge under investment in the highway assets such as bridges. It has been identified over 3,000 bridges are in a substandard condition on the UK’s highways with an estimated spend of £5.54 billion required to clear a huge maintenance backlog. (RAC Foundation March 2020). TfL has identified £2b investment required in London’s structures over next 10 years to prevent restrictions or closures. https://bit.ly/3xnkrLh • One of the key elements of structural repair and refurbishment is the waterproofing of structures (mainly bridges) to prevent water ingress. • FM Conway maintains over 600 bridges within TfL, WCC and the London Boroughs. These bridge decks need to be protected from water and contaminants such a gritting salt which can deteriorate them structurally and ultimately reduce the capacity of the structure. This can have a huge impact on the network and affect our ultimate client, the road user. • Last year the Structures team subcontracted circa 25,000m2 of bridge deck waterproofing, spending over £1.2m with our specialist supply chain partners. By self-delivering this service we could reduce our company wide Specialist Supply Chain costs by 5%, plus gain further control with self-delivery. • Based upon estimated costs and our knowledge of sales rates margins in the region of 20% - 25% would be achievable. This would be a 50% increase on current margin for this type of work. • New business would also create downstream work for our Traffic Management, Surfacing and A&A divisions. Any maintenance waterproofing scheme will also produce road planings for the business. Business solution There are two main structural waterproofing products on the market in the UK Matacryl and GCP – Eliminator. Eliminator is the more popular solution and is routinely specified by designers and clients. • Options for how to develop this business are: • Apply to GCP to become a licenced applicator of their Eliminator Product. This will require capital investment in equipment and training of skilled operatives, recruitment of experienced staff to manage the team • Acquire an existing SME who has the aforementioned licences, equipment and team

• Existing customers we have for this service include: • TfL • WCC • London Boroughs

• One off tender such as Rochester Bridge or London Bridge. Potential customers that this service could be marketed towards: • Highways England • Managing Contractor such as Costain, AMEY and Skanska • Counties – Kent, Surrey, Hampshire, Essex

• Further opportunities: • Through the recent acquisition of Toppesfield • Surfacing projects involve the waterproofing of structures

30

31