Highways Agency - Safe roads, Reliable journeys, Informed travellers

2.2 Strengthening the Supply Chain

- greater focus on safety, training and diversity with further integration of the extended supply chain

We have been working with our key suppliers to ensure everyone knows what is required in the development and application of our new selection processes, forms of contract, and the Toolkit for Performance Measurement.

We will extend our Early Contractor Involvement principles further into the supply chain to encourage our key suppliers to work as integrated teams with their suppliers. We want to see back-to-back incentives, rewards and effective and fair payment throughout the supply chain. To support this we will consider the development of project accounts and project-wide insurance arrangements.

Communication

To ensure the message gets across and that we create the best supply chain possible for all concerned we will:

• Consult with our key specialist and smaller suppliers in developing a 'Best Practice Charter' - those key suppliers practising the principles established under the Charter would receive special recognition under the CAT assessment process. Together with key suppliers we will then promote the Charter principles throughout the extended supply chain
• Continue to monitor and improve the procurement pages of our website to maximise its benefit to suppliers
• Continue to consult with and test our proposals for change with representative industry bodies such as the Major Contractor Group, Civil Engineering Contractors Association and the Association for Consultancy and Engineering.
• Build on these strategic relationships to ensure our processes are operated transparently and deliver best value through a highly skilled, diverse and high performing supply base
• Continue to develop the Community concept extending it to other procurement areas aiding the exchange and implementation of best practice and measurement of continual improvement.

Health and Safety

We need to do more to address health and safety on our construction and maintenance sites. One accident is one too many. Although we are pleased at the progress made by our suppliers, the Agency's focus has been on improving our selection procedures and practices for contractors and sub-contractors. The latter has highlighted the need for improved design standards and designs. Designers have a statutory duty through the Construction Design and Management (CDM) Regulations 1994, as amended, to reduce health, safety, and welfare risk for operatives implementing the projects or services which they design.

To reflect the importance we attach to the design, construction, operation and maintenance of the network we will:

• Create fully integrated delivery teams at an early stage to ensure construction and maintenance risks are considered in the development of schemes including solutions that involve less site processing and more pre-assembly and prefabrication
• Develop further the selection process to define thresholds for health and safety capability and performance
• Use contracts which encourage designers to exploit their knowledge, skills, and competences to the maximum at the earliest opportunity
• Recognise best practice by suppliers who consult the workforce on occupational health and safety issues
• Ensure the policing of Construction Skills Certification Schemes (CSCS) takes place and that schemes are effective.

Diversity

Successive reports into the industry have identified a significant lack of diversity. While the Agency has maintained our Investor in People status, and the CAT gives some assurance suppliers adopt and practice IiP principles, we want to do more.

The Strategic Forum for Construction report 'Accelerating Change' recommended widespread use of the Movement for Innovation Respect for People toolkits to help enable the UK construction industry to realise maximum value for clients and customers. Together with the industry we will:

• Work towards establishing a diverse workforce where individuals feel valued as part of an integrated team, aiding improved productivity
• Make progress in establishing a workforce that reflects the profile of the general public leading to better understanding of our customer needs
• Consult with the industry to assess the feasibility of introducing the Respect for People Toolkit, or similar, into our selection and performance reporting processes to incentivise widespread adoption
• Introduce appropriate measures or check lists to ascertain adoption levels and monitor improvement
• Ensure our supplier selection processes, forms of contract and measures of performance deliver full compliance with Equal Opportunity and Race Equality legislation throughout the supply chain
• Recognise good practice.

Client Capability

The Agency wants to build on its good reputation as a client at the forefront of best practice. We will continue to improve our levels of knowledge and competence by:

• Continuing our close association with the Office of Government Commerce to ensure we learn best practice from the widest spectrum of Government clients
• Maintaining existing contacts with overseas procurement organisations and establishing new ones
• Building on the strengths of our existing procurement staff and increasing the proportion of those attaining professional qualifications from the Chartered Institute of Purchasing and Supply
• Maintaining our Chartered Client Status and developing the benchmarking of our performance against other successful clients
• Extending our programme and project management initiative into all delivery areas.