Using this as the industry standard for this KPI year, client satisfaction increases to an impressive 86 percent in cases where the M&E contractor and client have often worked together, compared with 40 percent where there is no prior working knowledge or relationship. It should also be highlighted that this is no isolated scenario. This gap has been seen in each of the previous seven years of KPI collection. More important, the gap is widening.
The procurement issue
This relationship argument is further advanced when looking at shifts in procurement. Over time, procuring on a lowest-fee basis has declined by half as negotiated work has doubled. Even so, one could play devil's advocate and suggest that price is still the over-riding factor in 56 percent of cases.
When comparing this against the 68 percent service yardstick, clients are highly delighted (77 percent) with service provided on a negotiated basis, but significantly less so (30 percent) where selection has been based on a price-only basis. The figures say it all: collaboration works.
Ten years after the Egan Report, some changes are evident, including improved client satisfaction, greater efficiency (both in extent of defects on handover and M&E productivity) and evidence of greater take-up of collaborative practices. All good news.
New initiatives such as abolishing retentions and engaging in project banking will help. Another observation is that M&E contractors are still not engaged early enough in the project.
Given that the building services content can be around 33 percent of the total project spend and 70 percent in major refurbishment situations, then this could be a missing key to help design and install the correct solution to everyone's mutual benefit.
The full KPI collection for M&E contractors covers a wide range of secondary KPIs and correlations. For more information contact Gerry Samuelsson-Brown at BSRIA on firstname.lastname@example.org or visit BSRIA's KPI web page.