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Economic Organisation of the British Construction and Property Industries and the Main Objectives of Government Macro Economic Policy

British construction and property industries are is being faced with demands to make rapid changes due to changes in procurement strategies, government-led reform initiatives and heightened fields of international competition. These changes are aimed at helping tackle any problems arising from the reforms and to forecast the levels of project success, while attempting to solve problems related to the predominance of personal capitalism which implies weak organizational capabilities.
The concept of mutual objectives demands that each team thinks while focusing on the immediate objectives, through the process, to the end objectives. Improved efficiency can, for example, be thought of in terms of cooperation, fast construction can be achieved by avoiding hold-ups, critical path programs must be ensured for timely completions, while shared risks are sensibly agreed on. Cost reduction measures include continuous improvement strategies and reasonable profits are achieved through sound forecast and progress prediction. To minimize legal costs, the parties must implement sound dispute resolution procedures and a sense of good public relations can be achieved by being proactive. A prior agreement on the sharing of profits must be in place to facilitate any related procedures. Quality assurance and total quality management offer ways of ensuring a reliable product quality, which is enhanced by the reliable flow of design information and any related cooperation.
The basic idea in improving the construction industry is implied therefore as offering to tender on the basis of scrutinized long term affiliations based on clear measurement of prior performance-benchmarking and quantified measures and sustained quality and efficiency improvements.
A Task Force headed by Sir Egan believes that the way forward to achieving the ambition of a modern construction industry lies in commitment.