Paul Morrell, the government's Chief Construction Adviser, called for the industry to show more ambition and leadership in his JCT Povey Lecture, entitled 'Ambition in an Age of Austerity'.

Speaking at Bevin Hall, Local Government House in London, he said that ambition is not a new concept. All the previous Povey lectures for the last seven years had included value, collaboration, risk, integration, sustainability and innovation as ambitions.

Paul went on to say that there will never be a Morrell report on the industry. There is no need for one as everyone agrees what the problems are, and how to address them. Despite this, and the previous industry reports highlighting the issues, still very few are changing their behaviour to embrace change. There is always a temptation to hide under the duvet until the current recession passes, but that is not really an option. The industry needs to use the recession to reflect, and begin the change needed so it can emerge from the recession leaner and fighting fit.

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Apart from needing the ambition to achieve this change, the industry also needs leadership. Paul said that the industry is full of good leaders, but the industry is not led, and it needs good effective leadership to realise the ambitions and change.

Two key issues face the UK industry: carbon and China. The government has a target of reducing CO2 emissions by 80 per cent by 2050, and buildings are the major contributor, especially the existing building stock. China, he said, will emerge as the world's superpower. All Chinese schoolchildren are learning English: "There is a reason for that: they have a plan..."

Paul was keen that buildings are procured on a whole-life basis.

He said: "Here, the overwhelming cost is the people that use them. If the efficiency of people can be improved by just seven per cent (the capital cost proportion), then effectively the building becomes free. Designing buildings with people in mind is the way design should be undertaken. He suggested that buildings can be over-designed, or designed for design sake - in this age of austerity, design should be good, but only good enough. Stop spending on what does not add value.

"Supply chain integration and technology are the keys to a better procurement process. Tier one contractors are the key to supply chain integration, and also to the adoption of technology throughout the industry. Unlike other industries, construction has not embraced new technology, and the efficiency savings possible through the rationalisation and integration of the entire supply chain would be immense."

(CD/GK)