Latham Report
Encyclopedia
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 contract
ual arrangements in the UK
construction industry, aiming to tackle controversial issues facing the industry during a period of lapse in growth as a whole.
He urged reform and advocated partnering
and collaboration by construction companies. A key concept was that through teamwork the construction industry could delight its customers. Latham made 53 recommendations to change industry practices, to increase efficiency and to replace the bureaucratic, wasteful, adversarial atmosphere prevalent in most construction projects with one characterised by openness, co-operation, trust, honesty, commitment and mutual understanding among team members. For example:
(formed following Latham's recommendation), the CIB published a further report, Partnering in the Team in 1996. In parallel, the industry reform group, the Reading Construction Forum, published Trusting the Team: the Best Practice Guide to Partnering in Construction in 1995 (for which Latham wrote the foreword).
Subsequent initiatives included the 1998 Egan Report
Re-thinking construction, and the establishment of industry change organisations including the Design Build Foundation (1997) Construction Best Practice Programme, the IT Construction Best Practice Programme, Movement for Innovation and Constructing Excellence
.
Michael Latham
Sir Michael Anthony Latham was British Conservative Member of Parliament for Melton from February 1974 to 1983, and for Rutland and Melton from 1983 until he stood down in 1992....
, published in July 1994. Latham was commissioned by the United Kingdom
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...
government and industry organisations to review procurement
Procurement
Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
and contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
ual arrangements in the UK
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, aiming to tackle controversial issues facing the industry during a period of lapse in growth as a whole.
Historical context
The Latham Report was not the first report to identify systemic failings in the UK construction industry; previous reports dating back to the 1960s had identified similar issues and made similar recommendations. However, this report did gain industry and government support.The Report
Latham identified industry inefficiencies, and condemned existing industry practices as 'ineffective', 'adversarial', 'fragmented', 'incapable of delivering for its customers' and 'lacking respect for its employees'.He urged reform and advocated partnering
Business partnering
Business partnering is "the development of successful, long term, strategic relationships between customers and suppliers, based on achieving best practice and sustainable competitive advantage".- Mission :...
and collaboration by construction companies. A key concept was that through teamwork the construction industry could delight its customers. Latham made 53 recommendations to change industry practices, to increase efficiency and to replace the bureaucratic, wasteful, adversarial atmosphere prevalent in most construction projects with one characterised by openness, co-operation, trust, honesty, commitment and mutual understanding among team members. For example:
- "Partnering includes the concepts of teamwork between supplier and client, and of total continuous improvement. It requires openness between the parties, ready acceptance of new ideas, trust and perceived mutual benefit…. We are confident that partnering can bring significant benefits by improving quality and timeliness of completion whilst reducing costs." (para 6.45, p. 62)
- "Partnering arrangements are also beneficial between firms…. Such arrangements should have the principal objective of improving performance and reducing costs for clients. They should not become 'cosy'. The construction process exists to satisfy the client. Good relationships based on mutual trust benefit clients." (para 6.46, p. 62)
Recommendations
- The government should commit itself to being a best practice client.
- The private sector should get together to establish a construction clients forum.
- The CICConstruction Industry CouncilThe Construction Industry Council is the representative body for the professional bodies, research organizations and specialist business associations in the construction industry in the United Kingdom...
should issue a guide to briefing for clients. - The DoEDepartment for Environment, Food and Rural AffairsThe Department for Environment, Food and Rural Affairs is the government department responsible for environmental protection, food production and standards, agriculture, fisheries and rural communities in the United Kingdom...
should publish a simply worded construction strategy code of practice. - A checklist of design responsibilities should be prepared.
- The use of co-ordinated project information should be a contractual requirement.
- The responsibilities for building services design should be clearly defined.
- A set of basic principles is required on which modern contract should be based.
- A complete family of interlocking contractual documents is required.
- A target should be set for 33% of government funded projects starting over the next four years to use the New Engineering ContractNEC Engineering and Construction ContractThe New Engineering Contract , or NEC Engineering and Construction Contract is a formalized system created by the Institution of Civil Engineers that guides the drafting of documents on civil engineering and construction projects for the purpose of obtaining tenders, awarding and administering...
. - The role and duties of project managerProject managementProject management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end , undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value...
s requires to be more clearly defined. - The DoE should develop quality registers of approved contractors, sub-contractors and consultants.
- Guidance should be issued on rationalising tender list arrangements and on partnering.
- The specific efforts of BS5750 in the construction process requires further investigation.
- AdjudicationAdjudicationAdjudication is the legal process by which an arbiter or judge reviews evidence and argumentation including legal reasoning set forth by opposing parties or litigants to come to a decision which determines rights and obligations between the parties involved....
should be the normal form of dispute resolutionDispute resolutionDispute resolution is the process of resolving disputes between parties.-Methods:Methods of dispute resolution include:* lawsuits * arbitration* collaborative law* mediation* conciliation* many types of negotiation* facilitation...
.
Legacy
The Report spawned a raft of initiatives including the establishment of the Construction Industry Board to oversee reform. At the request of the Construction Clients' ForumConstruction Clients' Group
The Construction Clients' Group is a United Kingdom construction organisation representing major clients of the construction industry. It represents the views of clients to the Strategic Forum for Construction....
(formed following Latham's recommendation), the CIB published a further report, Partnering in the Team in 1996. In parallel, the industry reform group, the Reading Construction Forum, published Trusting the Team: the Best Practice Guide to Partnering in Construction in 1995 (for which Latham wrote the foreword).
Subsequent initiatives included the 1998 Egan Report
Egan Report
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...
Re-thinking construction, and the establishment of industry change organisations including the Design Build Foundation (1997) Construction Best Practice Programme, the IT Construction Best Practice Programme, Movement for Innovation and Constructing Excellence
Constructing 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...
.