5 - THE LATHAM REPORT and THE MOSAIC LAW
Building can be viewed as a system of procurement and
contractual arrangements under which the industry meets the needs of its
clients, including Government. The system influences effectiveness,
competitiveness, coherence and culture. The 1994 Latham Report made
significant recommendations for the future. Similarly, the Mosaic law
can be viewed as the system by which
Israel
sought, often with difficulty,
to order its life.
5.1 Building Materials: The Latham Report,
1994
The
process of the Review
Constructing
the Team (Latham, 1994) was the final report of the `Joint Review of Procurement
and Contractual Arrangements in the UK Construction Industry' carried
out by Sir Michael Latham (the Reviewer). The Review was jointly funded
by government and construction industry organisations and bodies
representing clients were closely involved. Government, client and
industry interests made up the group of eight Assessors, who
`formed an expert sounding board and conduit of advice. But they became
much more. A tremendous spirit of cooperation and mutual confidence soon
emerged. We [the Reviewer and Assessors] discussed highly contentious
issues which directly affected the livelihood and commercial prospects
of their organisations. Feelings on these issues run very
deep.... It would not have been surprising if we had had angry meetings
of the Assessors. perhaps even breakdown in the discussions. Nothing
could be further from the reality. The participants listened carefully
to each other, weighed the contrasting arguments seriously, and
frequently reconsidered their own views. It was said on several
occasions that opinions had been changed by what had been heard.' (
Para
1.4 p2).
This experience of the Assessors is in marked contrast to widespread
experience in the industry. An interim report Trust and 1Lloney (1993) had been encapsulated in the aphorism `too
little trust and not enough money'. Clients were distrustful of the
industry's workings, consultants feared that clients would hold them
responsible for extra expenditures, contractors worried that clients
would not pay them properly and suspected that sub-contractors would
overcharge them, and specialists feared that they would be underpaid by
main contractors.' (Building 7 January 1994 p15). One can see the task of the Review,
and of the actions that would flow from it, as that of bringing the
distrust and fear of much everyday experience closer to the mutual
confidence and trust discovered by the Assessors. Such review is not a
one-off task but an ongoing one which each generation seems to find it
necessary to undertake. The Simon Report (1944) and the Banwell Report
(1964) were precursors of Latham. However beneficial Latham may turn out
to be, it is likely to have successors.
The
necessarv changes
The Report and its recommendations are the work of the Reviewer alone.
They are based on wide ranging discussions with interested and involved
people and interest groups. Everyone who sought a discussion had one.
The Reviewer and/or his Assistant participated in 58 discussions in the
preliminary phase and 85 in the main phase. (
Para
1.6 p2). There are 30 recommendations, most having several parts. From
the perspective of this dissertation they can be expressed as follows:
CLIENTS (Recommendations 1-4 pp5,19)
The client must come first; government must be a best practice client; a
clients' forum is needed.
Guidance for clients on briefing should be produced. A Construction
Strategy Code of Practice, explaining how to meet objectives and obtain
value for money, should be produced for and followed by the public
sector and appropriate parts of the private sector.
DESIGN (Recommendations 5-8 pp21,25,27,30)
Design must be a coordinated process with responsibilities allocated; in
particular Coordinated Project Information, 'which should have become
normal practice years ago' must be implemented
CONTRACTS AND PAYMENTS (Recommendations 9-12 pp41-2 and
Para
5.18 p37)
The 63 year old Joint Contracts Tribunal must be reformed. In particular
it must produce a family of new interlocking agreements appropriate for
all clients (including Government) and all types of work incorporating
procedures known to achieve effectiveness.
There must be a duty for parties to deal fairly with each other within an
atmosphere of mutual cooperation. The aim should be to achieve shared
financial objectives and 'win-win' solutions to problems.
Changes should be avoided but where necessary, priced in advance.
Milestones for interim payments must be clearly defined and compensation
for slow payment prescribed.
Conflict on site should be avoided but speedy resolution processes
defined
PROCESS (Recommendations 13-19 pp47,49,51,57,60-2)).
A team must be assembled, under a leader or project manager, of
consultants and contractors able to provide the necessary competence,
the required quality of work, and appropriate but competitive prices.
This has to be done in ways that are not restrictive but which avoid the
risks of taking the lowest price as the only criterion of selection and
which are appropriate to public and private sector situations. Longer
term, partnering arrangements should be considered.
ENABLING INDUSTRY (Recommendations 20-24 pp70,72,75,78,80)
In support of these matters, there must be appropriate
consideration by the relevant bodies of:
training professional education image of the industry equal opportunities
facilities for research and development productivity
LEGISLATION (Recommendations 25-9
pp84,91-2,97,103,106)
There
is need for hard legislation to regulate practice on the following major
matters:
creation of unfair conditions by the alteration of the envisaged standard
contract documents ensuring that all disputes arising during
construction are referred to adjudication and that arbitration and legal
proceedings can only take place after completion
creation
of trust funds to be used in case of insolvency liability post
construction latent defects insurance
IMPLEMENTATION (Recommendation 30 p109-10)
If the Report is accepted machinery should be set up to facilitate
progress including:
a
Standing Strategic Group of the Construction Industry
an
Implementation Forum
In commending his Report, Sir Michael Latham emphasized that its aim was
to help clients to obtain the high quality projects to which they
aspired. This required better performance but with fairness to all
involved. As the Dodo says in
Alice
in Wonderland, everyone
must win and everyone must have prizes. The prizes available are
enhanced performance in a healthier atmosphere, deeper satisfaction for
clients, and a brighter image and better rewards for a great industry.
Three reactions are possible: rejection of the Report, picking out the
sections which suit oneself best, or endeavoring to make the package
work. `The time to choose has arrived' Latham 1994
p v).
5.2
Scriptural Materials: The Mosaic Law in Exodus and Deuteronomy
Exodus is concerned with the life and experience of Moses, including his
birth in slavery in
Egypt
and his leadership of the Hebrews in the wilderness. Deuteronomy was
probably compiled within the
land
of
Israel
in
the time of King Josiah and of the prophets. It is a guide for living
positioned in the teaching of Moses. Thus we can see Moses from two
points of view. Both are concerned with how God's people should live and
come to enjoy the blessings of the law, the torah.
Law in this sense is that which makes life enjoyable and workable;
it is a much fuller concept than mere legislation.
Exodus
The text is a compilation finalised in the time of
Ezra (5th/4th
centuries
BCE) of material from three main sources and viewed from a later
perspective. The first fifteen chapters are concerned with liberation.
Moses is born, educated, leaves
Egypt
for Midian, starts work, and is married. He is confronted by God and
sent back to
Egypt
to bring his people out of slavery. Pharaoh
responds
to Moses' efforts by requiring the slaves not only to make bricks for
whatever structure was being built but to gather their own straw as
well, without the production targets being lowered. (5:1-Z 1). After
much argument and many plagues inflicted by God on
Egypt
,
the escape was planned urgently, the Israelites marking the lintels and
doorposts of their houses with blood.
Israel
passed through the sea and their Egyptian pursuers drowned. '...the
escapees walked on dry ground through the sea, the waters forming a wall
for them on their right and on their left. The Lord saved
Israel
that day......'. (14:29-3()).
The second part of Exodus is concerned with
concepts of covenant. It begins with the journey from the
Red Sea
through
the wilderness to Sinai. Moses is depicted establishing
a structure of men `who fear God, are trustworthy and hate dishonest
gain' capable of settling disputes, leaving himself free to teach.
(18:13-23). At Sinai, the decalogue (the ten commandments) is given with
its injunctions against idolatry, the misuse of the name of God and of
the Sabbath, and the commands to honour parents and not to practise
murder, adultery, stealing, false witness or coveteousness (20:1-17).
There then follows material setting out detailed procedures for a simple
society and for the construction of the Ark of the Covenant in materials
of value. Stone tablets with the commandments inscribed on them are
placed in the
Ark.
The first part of Exodus
establishes the constitution of
Israel
and the second its status as a spiritual entity . The central point is
that in Exodus dialogue takes place between God and
Israel
.
Fokkelman (1997) says'.
`The
dialogic being of God, already evident in the creation of man in his own
image and reflected in the man-wife dialogue [of Genesis], culminates in
Exodus when God assigns exceptional status to his covenanted people:
"And ye shall be unto me a kingdom of priests and an holy
nation" (19:6a) The blessings of the patriarchs that are so
characteristic of Genesis are crowned in Exodus with the so-called
covenant formula, two clauses of characteristic reciprocity: "And I
will take you to me for a people, and I will be to you a God" (6:7)
(Fokkelman 1997p64).
Deuteronomy
Deuteronomy is a presentation by an anonymous
narrator who presents utterances from Moses. God and, to a small extent,
the narrator himself. The first speech of Moses (1:6-4:40) begins at
Horeb (Sinai) and reviews the experience of the wilderness. the taking
possession of 'the land' and the importance of the moral law: `.... I
now teach you statutes and ordinances for you to observe in the land
that you are about to enter and occupy. You must observe them diligently
for this will show your wisdom and discernment to the peoples .......
(4:5-8). In his second speech (5:1-28:68),
Moses looks to the future and presents the decalogue: `..... For six
days you shall labour and do all your work.... You shall not... steal.
Neither shall you bear false witness against your neighbour.......
Neither shall you desire your neighbour's house...' (
5:12
-21).
As you go into the land to possess it remember, 'The Lord is our God....
the Lord alone...... Keep these words that I am commanding you today...
and write them on the doorposts of your house and on your gates'.
(6:4,9). The law must be kept in its entirety: 'Keep then this entire
commandment that I am commanding you today' (11:8); if you do keep it
entirely then you will receive the blessings of rain and food.
(11:8,13-4). Financial dealings within the community should be marked by
the forgiveness of debts every seven years. Given this generosity.
Israel
will be rewarded so that she need borrow from no one but be able to lend
to many. (15:1-6). Only on loans to foreigners should interest be
charged (
23:19
-20).
In everything, obedience will lead to blessing: 'Blessed shall you be in
the city, and blessed shall you be in the field'. (28:3).
However,
the law was not obeyed-, Moses' vision did not materialise.
Blessings did not follow. The cause of this was disobedience and the
outcome punishment. (29:18-28). Yet God is a God of compassion and even
if the people go far into exile, he will restore them to their land and
to even greater prosperity. (30:4-5). There is choice and the choice is
Israel
's
`See,
I have set before you today life and prosperity, death and adversiry........
Choose life.....' (30:15,19).
5.3
Comparison of Materials
Both
sets of materials are concerned with the content and observance of what
is in effect moral law and guidance. In the same way that torah is more than legislation, so guidance emanating from Latham is
richer and more varied than legislation alone would be.
Behaviour
and benefit: Choose!
Buildings are procured by clients by means of a contractual process. That
process joins the client to an interlocking set of consultants,
contractors, sub-contractors and specialists. The main elements of the
process are determined by bodies representing clients and the various
sectors of the building industry. Some elements are appropriate for
enforcement by law. The system is finely balanced. If it becomes out of
date, or if parts of it are misused by powerful parties for their own
ends. or if a particular facet. such as price, is given disproportionate
emphasis, the whole system starts to become chaotic, litigious and
unjust. The system is dynamic, always adapting to slightly new elements
in its environment, yet always trying to hold on to practices which,
experience suggests, are beneficial to all the parties. This process of
adaptation is not continuous and smooth, because standard processes and
documents, as well as legislation, are introduced at particular times.
The Latham Report is a review made at this time in order to address an
accumulation of problems and dissatisfaction, affecting the well-being
of many and, because of international competition, the actual
livelihoods of some. This is a time of reckoning; there have to be new
ways forward.
Likewise.
Deuteronomy came at a time of review and reckoning for
Judah
.
Certainly since the time of Solomon. life in the new land had been a
mixture of success and failure, blessing and curse. Some reigns had
epitomized good times and some bad. Quietness, belonging and freedom
were superseded by conquest and fear of exile. The issue is how things
can be put right, how the system can recover its balance. The answer is
to bring into the present the story and teaching of Moses. Leave to one
side, the Deuteronomists argued, the kings and their ambitions and
politics, and go back to the true leader and the true torah.
To do that will bring blessing and even if things still go wrong,
there will still be the possibility of blessing.
Both
Latham and Deuteronomy, in the context, respectively, of a modern
industry and of an ancient, tribal people, offer for acceptance or
rejection, an integrated package of reform, which, if followed, will
make life better for all involved. Both exclaim 'Choose'!
Oppression
and liberation
Exodus is more raw. It goes back to slaves working in the brickyards of
their conqueror and being further oppressed when they wish to go to
worship their God in the wilderness. God himself eventually works their
release and gives them the status of his covenanted people. There is no
conditional `If..... and then.....'. The law is part of the covenant
gift and the response has to be obedience. While Latham makes mention of
the earlier Simon and Banwell Reports, he is not concerned with the
past. It is possible to read the nineteenth and the first half of the
twentieth century as times of oppression at least for the workers in
Building. Their hours were long, their wages low and their employment
precarious; for at least half of them, the work was unskilled labouring.
(Powell 1980 pp164-8). Now, most workers are either self-employed or in
specialist firms carrying out relatively high technology work. The
problems which Latham addresses of delayed payment and inadequate
payment for varied work, while extremely serious both financially and
morally, are arguably not as basically oppressive as the situations of
earlier times. Therefore, while the actual Latham Report is more
circumscribed than Exodus, the issues, when seen in a wider perspective,
are similar.
5.4
Historical Continuities
Fitness,
for purpose
At the beginning of his Report, Latham states that the objective of
clients will normally be to
obtain a building that is:
-
value
for money
-
pleasing
to look at
-
free
from defects on completion
-
delivered
on time
-
fit
for the purpose
-
supported
by worthwhile guarantees
-
reasonable
as regards running costs
-
satisfactory
as regards durability
(Para
3.2 p 11)
The whole of the Latham concept is to define systems of procurement and
contract to enable these objectives to be met in ways that are
appropriate for the particular situation. The most direct reference to
good building practice in Exodus and Deuteronomy is this:
`When you build a new house, you shall make a
parapet for your roof; otherwise you might have blood-guilt on your
house if anyone should fall from it.'
(Deut 22:8)
The
significance of the roof in the period of the monarchy is made clear by
Fritz (1995). Roofs were used for drying and storing agricultural
produce, and for sleeping. As they were of a simple construction it
would be necessary to repair the earth or mud covering after rain. It is
inferred (but not proven) that additional rooms were built on the roof.
Although the householder built his own roof, the issue of safety and
fitness for purpose is, at the level of human safety, the same as for
the professionally constructed roof. (Fritz 1995 pp141-2) Webber (1996
p280) links this philosophy of care expressed in formal legislation with
that which can be traced through the history of building control
legislation in
England
from the 12th to the 17th centuries and, after a laissez-faire
interlude, from the London Building Act of 1844 to the present.
While, for Latham, this is no more than a background issue, nevertheless
it is a basic connection with Scripture.
Medieval
contractual scenarios
Building practice comes closer to the Latham-like scenario in the
medieval period. Erlande-Brandenburg (1993 pp161-3) shows how the
contract for the building of the nave of Fotheringay Church,
Northamptonshire was made in 1435 between commissioners for the Duke of
York and William Horwood, free-mason. Most of the document is an
architectural description of the work to be done by Horwood with
materials and equipment provided by the Duke but, in addition, it
prescribes payments to be made on completion of the excavation (for
which he takes all responsibility), on completion of the walls up to lft
above ground, and thereafter foot by foot until completion and the
contracted sum of £300 has been fully paid. The contract continues:
'And if it be that the said William Horwood not make
full payment to all or any of his workmen, then the clerk of the work
[as agent of the Duke] shall pay him in his presence and stop as much
from the said William Horwood's hand as the payment amounts to that
shall be due to the workmen.'
(Erlande-Brandenburg 1993 p163)
In this contract, the client is ensuring that the workmen are not
penalized because the `contractor' does not pay them their money when he
himself has received it. Latham reports a survev of sub-contractors
which showed a satisfaction score of oniv 5.2 out of 10 on terms and
conditions and only 4.8 out of 10 when it came to the handling of contra
payments. He recommends legislation to prevent the introduction of
unfair conditions by main contractors
through the unilateral alteration of agreed standard sub-contract
conditions. (Paras 8.1-8.9 pp81-4). Both the Fotheringay contract and
Latham are consistent with Deuteronomy:
`You shall not withhold the wages of poor and needy
labourers, whether other Israelites or aliens who reside in your land in
one of your towns. You shall pay them their wages daily before sunset
because they are poor and their livelihood depends on them; otherwise
they might cry to the Lord against you, and you would incur guilt.'
(Deut 24:14-5 ).
5.5
Ethical Discussion
In this Section it is the ethical connection between Scripture and
Building that is central. The connections are not static; the process is
ongoing. The torah, both within and beyond Scripture, is not a legal text
but a living tradition. As Latham evolves from the text of the Review
into legislation and the practices of the industry, it too is part of
the evolving, ethical tradition.
Situations
to be changed
Latham, although it does not use the words `ethics' and `ethical' at all,
is an articulation of ethical practice marked by justice and fairness.
Israel
's
vocation as the covenant people was to express the love, justice and
mercy of God in terms of concern for neighbour, that is, in terms of
moral living. That was achieved not just by chiselling the right words
on the tablets of stone (2 Cor 3:7) or writing them into the legislation
or procedures, but in developing a strong ethos and culture which permit
the full implementation of what is firmly and widely believed to be
desirable.
Israel
spent time in the wilderness, journeying by stages, camping,
quarrelling, regretting having left
Egypt
,
and experiencing problems with food and water. Moses and Aaron were
subjected to much criticism. (Ex 16:9-17:7). It was only after the long
period of wandering that they came to Sinai where God revealed the law
by which he was calling them to live. Building is an itinerant industry.
The workplace can be anywhere. Even when the best practices for
selection are followed, the group of firms working on a project is
likely to be marked by the fears and uncertainties that are very
powerful when people have not all worked together before. They quarrel;
they are worried about the `food', of information that it is necessary
to have in order to know what has to be done, and the 'water' of money;
everything is staged as a drama; everything has the temporariness of the
camp. There is so much uncertainty; and often everything is dependent on
many other things. This was explicit in the 1966 report Interdependence and Uncertaintv. fl Study
of the Building Industrv (1966 The Tavistock Institute).
In
the case of
Israel
,
the resolution of the problem is in the figure of Moses. Miller (1987)
indicates that in Exodus Moses is presented as the hero and leader of
the people solving the practical
problems, while in Deuteronomy he is the much more complex figure. who
comes as the bearer of God's word. That makes him a teacher. `The
teaching that Moses does is in no sense the neutral communication of
material, like a mechanical copier; it is an intense effort to elicit
from his audience a response of obedience. Moses seeks at every turn to
convey, explain, and also stir the heart to respond to the divine
instruction, to follow the way that is set forth.' (Miller 1987 p247).
He is prophet like no other, mediating the power of God.(Deut 34:10-2).
He is the intercessor who pleads with God, causing him to change his
mind about the disaster he was to send (Ex 32:14). And he is the
suffering servant of God, bearing the brunt of God's anger and not
living to be the leader at the time of entry to the new land (Deut
34:4). Nothing comes easily - not in
Egypt
,
not in the escape, not in the wilderness, not at Sinai, not on the
borders of the land, and paradoxically and most of all, not in the land
from the time Joshua to Josiah and beyond.
While
Latham alone was responsible for the recommendations he made in his
Report, the decision to publish and seek implementation was that of the
sponsors and parties involved. While Latham is much involved in this
latter stage of the work, it is only as one among many. The debate and
implementation stage is collaborative, and not simply an event but a
complex and extended process. The process has involved teaching and
explaining, prophetically bringing insight to bear, contact between
interest groups enabling minds to be changed, and sometimes confronting
inability to see the benefits expected to arise in the longer term.
Theoretical
evaluation
There is theoretical criticism to be evaluated. Cox and Townsend (1997
p144) question Latham's consensus approach to reform, because it is
unlikely to provide any radical opinions or solutions. They argue that
the kinds of solution proposed are only likely to be applicable to the
relatively few clients who are continuously working with the industry
and who, therefore, can build long-term relationships. In their view a
more rigorous approach needs to be taken in identifying forms of
relationship that are likely to produce fitness for purpose. McDermott
and Quinn(1995 p45) argue that for effective change to be achieved, the
institutions (representative bodies) of the industry must undergo
fundamental change and development. In particular, they as institutions
must learn to trust each other before their members can trust each other
in particular project relationships. New organizations set up as a
result of the Latham process must be built in such a way that they can
earn and be given trust if anything effective is to be achieved..
Despite their differences, both Latham and his critics are concerned for
the future well-being of Building. The purpose of Scripture is to
capture and interpret the past in such a way that it can be formative of
future well-being. The experience of
Israel
portrayed in Exodus can be
interpreted as salvation history stressing the saving acts of God, or as
liberation experience, stressing freedom from oppression. Both
approaches emphasize what God has done and imply that ethical behaviour
is response to that. Birch (1995) argues that much more meaningful for
today than God's acts is God's character. Exodus can be interpreted as
revealing God's character.
Israel
is
a community of character, a character that responds to God's character.
Similarly, it can be argued that organisations concerned with the
interpretation and implementation of Latham need to be organisations of
appropriate character. That character has to develop authentically.
Resonating with Exodus, McDermott and Quinn (1995) argue that
development of the new Construction Industry Board must enable it to
pursue the common good, the common well-being.
Understanding
trust and developing relationships
In Exodus, God brings
Israel
out of
Egypt
under the leadership of Moses, in the face of great difficulties and by
the use of extreme measures including the sending of seven plagues on
Egypt
.
That was the foundation demonstration of the character of God. It was a
creative act. It was setting off something that was new, a special
people who would lead a special life, for a special purpose.
Israel
would come to see that what they were being chosen to do was to trust
God, to live in a way that recognized what a moral community was and to
work for its common good.
As
Part of the Latham process, Building is having to learn about
trust and how to trust in
appropriate ways. Gambetta (1988) provided a collection of papers which
showed the various ways in which trust can be viewed. First it can be
viewed as a commodity that can be developed through repeated encounters,
remembering what has happened in previous encounters; honest behaviour
carries some cost; and behaviour affects reputation (Dasgupta 1988 p59).
Latham (
Para
6.47 p62) recommends the prudent use of monitored partnerships to build
up relationships.
Second, trust is related to risk; the more aware we are of risks, the
more we have to consider the course of behaviour we and others will
take. This is a comparatively modern phenomenon:
-Only
in early modern times did a new term (riesgo,
rischio, risk) appear to indicate that unexpected results may be a
consequence of our decisions, and not simply an aspect of cosmology, an
expression of the hidden meanings of nature or the hidden intentions of
God. This discovery of `risk' as a general feature of life - roughly
replacing what had previously been known as fortuna
- ....... adds another dimension to human experience. It becomes
ever more typical and understandable that decisions cannot avoid risk.
Such awareness of risk - the risks of technological development, or of
investment, of marriage or of prolonged education - is now a very
familiar aspect of everyday life, but it does not necessarily convey a
cosmological or religious meaning. Secrecy, and therefore dissimulation
and distrust, are no longer the essence of life and of prudence, but
trust is bestowed at your own risk. (Luhmann 1988 p9b).
The
implication of this is that Building in the era of Latham is an open
process: people are educated enough to understand the risks of building
on contaminated land because it is socially desirable to do so;
developing innovative technologies for managing temperature, humidity,.
fresh air and other environmental conditions in buildings; and investing
in development in, say,
China
.
Understanding the risks, we manage them in part by judging whose
competence we trust and whose behaviour we trust. This is much closer to
the Scriptural scenario where
Israel
's
relationship with God is played out visibly than it is to medieval
scenarios of fortuna.
Third,
Good (1988 p45) argues that if trust is to be valued highly, contracting
parties - whether for this dissertation's argument, firms carrying out a
project or representative bodies designing and implementing a system -
need to have a high level of knowledge of each other's background
assumptions and belief systems. This goes right to the heart of the
situation in Building. Latham quotes one of his correspondents:
`I believe the only way we will engender the "right spirit"
within the industry is by being more cohesive and better educated. I am
not a supporter of the "totally integrated" degree course
since there are differences between arts and science students which
should be built upon, rather than amalgamated in the hope of producing
the all rounded "construction" graduate....... I would try to
integrate the disciplines more by having graduates work together,
particularly in their later years, when they can be of use to each
other........'
(Letter
from Mr. Peter Rogers of Stanhope.....
Para
7.29 p74)
While
matters relating to specialists are not an issue - and may be
anachronistic - in the context of Exodus and Deuteronomy, the matter of
the cohesive society is an issue. The cohesion achievable, subject to
human limitations, through right relationships is qualitatively
different from the short-term cohesion achievable by the worship of an
idol such as a golden calf. (Ex 32:7-24).
The
earlv implementation of Latham
Quoting
The Financial Times of
19 July 1994
,
King (1996) reported from the US that Latham's Report had, on
publication, received `almost universal praise'. In October 1995, Latham
himself reviewed progress:
The
Construction Clients' Forum had been set up and was putting the client
at the heart of the construction process.
The
Construction Industry Board had been set up with the Secretary of State
for the Environment as President and, normally, chair.
The
Department of the Environment had accepted the role of lead Department
for Government becoming a best practice client
Crucial
Treasury support was indicated in the White Paper Setting
New Standards; emphasis was placed on the importance of the
intelligent management of risk and on considering matters such as
managerial capability and quality assurance in the selection of
contractors rather than only short-term initial cost.
The National Audit Office had made 12 favourable
references to the Report.
The industry's joint contract committees were
beginning to work on the recommendations
that formed a critical element in the Report.
Working
Groups were making good progress on:
-
clients'
guide to briefing
-
construction
strategy code of practice
-
selecting
sub-contractors
-
developing
a register of specialist consultants
-
reducing
the cost of tender qualification procedures
-
training
-
image
of the industry
-
equal
opportunities
-
professional
education
-
legislation
on liability, law reform and latent defects insurance
-
reducing
costs by 30%
-
partnering
(Latham
1995 pp5-8)
Legislation
The most vexed part of the Report concerned legislation to underpin
certain of the key recommendations. After discussion bv the Construction
Industrv Board and its interim predecessor, the Review Implementation
Board, the Conservative Government introduced provisions in the Housing
Grants, Construction and Regeneration Act 1996. After much negotiation
it was agreed that these should come into effect for contracts made on
and after
1 May 1998
.
The Labour Construction Minister, Nick Raynsford, comments (Building
17 April 1998 p25) on both the positive attitudes taken by the
parties involved and the difficulties overcome. The negotiations
resonate with the complaining in the wilderness against the leadership
of Moses and Aaron. (Ex 16:2). Latham himself says: `Nick Raynsford.......
realized he would never achieve total agreement, so he put the scheme
before parliament and told the industry to make it work.' (Building
17 April 1998 p26).
The legislation does three crucial things which can be summarized in the
broad and general terms appropriate for this dissertation as follows.
The legislation defines what a construction contract is; it sets up a
procedure for the adjudication of disputes under construction contracts:
and it sets out an equitable system for payments under construction
contracts. In simple terms, a construction contract is any written
(widely defined) agreement involving any two parties from the range of
client (apart from residential occupiers), consultant, contractor and
sub-contractor/specialist. Any party can refer a dispute for resolution
and this must be resolved within 28 days by an impartial adjudicator.
unless both parties agree otherwise or the adjudicator has the agreement
of the referring party to extend the time. Where work is to take longer
than 45 days, stage payments must be stipulated or a 28-day payment
cycle adopted and payments made within 17
days with the final payment no later than 30 days after the
completion
of the work. These financial provisions both
increase fairness and improve cash flow. It is anticipated that
normally-used contracts will embody these requirements. Where a contract
does not do so. a Government Standard Scheme will apply. (Building 17 April
1998 pp26-7).
At the time of writing (June 1998), it
is impossible to say how the legislation, and indeed all that has flowed
from Latham, will affect the practice and prosperity of the building
industry and its clients. Contemplating the new payment provisions,
Delves (1998 p150), a
lawyer, sees it all as an administrative burden of questionable benefit,
as the crucial question of how
much is to be paid is not adequately addressed. In relation
to the adjudication procedure, Minogue, another lawyer, says 'But if you
have a rapid disputes procedure, you have more disputes.' (Building 17 April
1998 p36). In
the same discussion. Price, the Director of the National Contractors'
Group says -The act is very good and sensible'. (Building 17 April
1998 p36). Latham
himself has the hope of a prophet when he says `..... a new spirit is
now abroad among clients and industry. We do not need to listen to
fearful people who would have preferred the chaos to continue.' (Building 17 April
1998 p27).
The
ultimate implementation
Ultimately, implementation is in the commitment,
enthusiasm and rooted realism of networks of people. In March 1998 the
Ridley Hall Foundation ran a seminar on `Establishing Trust in the
Construction Industrv'. A client, a main contractor, a specialist
contractor, a consulting engineer and an architect each presented a
viewpoint. Each was currently practising or had very recently been
practising. Each presented a realistic but forward-looking and hopeful
scenario. The architect's had the practical but conceptual approach that
seemed to fit best with the perspective of this dissertation. He made
seven points:
1.
Seek the unity of the 12 tribes
around the tabernacle. each different but acting as one.
2.
Do not avoid confrontation; convict but do
not condemn; go forward together.
3.
There will always be problems; it is attitude
to them that matters.
4.
Change is here to stay: be flexible-,
bring intelligence, innovation and integrity to bear; remember that
cooperation does not have to mean compromise.
5.
Use flagship projects to illustrate new
systems and cultural change
6.
Risk, fear and losses are endemic; but have a
year of jubilee in which all debts outstanding are paid and the
financial burdens of the past no longer passed on to new clients.
7.
Be committed to one another and to the whole
building industry; celebrate who we are and where we are; encourage one
another!
That is Scripture mediated through a particular person, in a particular
role, at a particular time: a conjunction of Spirit and Word. Bird (1997
pp38-9) looks to future generations. He is at best
lukewarm about the Latham process and the legislation. A poor culture
cannot be legislated awav. There has to be education for a new culture.
`... an industry's culture can be defined as the shared
beliefs, values and assumptions that make up the dominant mind-set of
the industry's members...... Endlessly refining conditions of contract
and contract forms will not solve the industry's cultural problems. The
remedy must lie in the training of the next generation.... °.
5.6 Metaphorical Interplay
Ethics
and monev
As
an opening comment to the Ridley Hall Foundation seminar, Sir Michael
Latham said that he had never tried to persuade people in Building to
act in support of his recommendations for ethical reasons: he always
used commercial reasons. At the beginning of the Report (Paras 2.1-2.7
pp7-9), he pointed out that economic factors lie behind many of the
issues addressed. The industry is dependent on general economic
stability. If the flow of work to the industry is less than the capacity
available, a number of undesirable consequences follow:
•
firms will reduce their staff or may close all together;
•
fee bids by consultants will probably become keen, and may not
allow the successful bidder to make any profit out of the commission;
•
tender prices submitted by contractors will be uneconomically
low, with adverse effects on all participants in the construction
process;
•
training and education will suffer;
•
little money will be available for research and development or
for enhancing the public image of the industry
The
Deuteronomic theme is that true and complete love of God leads to the
blessing of
economic
well-being:
'Hear
O
Israel
:
The Lord is our God, the Lord alone. You shall love the Lord your God
with all your heart, and with all your soul. and with all your might.
Keep these words that I am commanding you this day in your
heart......... write them on the doorposts of your house and on your
gates. When the Lord your God has brought you into the land.... a land
with fine, large cities that you did not build, houses filled with all
sorts of goods that you did not fill, hewn cisterns that you did not
hew........ take care that you do not forget the Lord your God, who
brought you.... out of the house of slavery. The Lord your God you shall
fear_ him you shall serve.......' (Dt 6:4-6,9-13).
Therefore, both Latham and Deuteronomy are doing the same thing. They are
advocating ethical, responsible and sensible behaviour and linking it
with economic well-being. In doing this, they are going a long way
towards saying that practising ethical behaviour and seeking and
enjoying economic well-being for oneself and one's industry and society,
are two sides of one coin. Both are the gift of God. The moral law. the torah,
is gift and so are the houses and the goods which come with a
moderate prosperity - not the greed and excess that angered the
prophets.
The
creation and enjoyment of economic well-being pre-supposes, in all but
the most primitive societies, the existence of money. Furnham and Argyle
(1998 p6) point out that while `Money is, in and of itself, inert.......
everywhere it becomes empowered with special meanings, imbued with
special powers'. In our particular case, we are saying that one of these
special powers is to embody the meaning of the relationship between
ethical, just, fair and responsible behaviour in Building with the
enjoyment of many things, including houses and homes. We may or may not
want to go so far as Monsignor Ralph Brown in saying that `Money is as
much a reality as the Blessed Trinity'. (Furnham and Argyle 1998 pl).
The
concrete form of money is the coin. It is the coin, the pound or ECU in
one's pocket, that makes it possible to envisage the reality which is
complex, abstract and profound. The two-sided piece of metal, properly
understood, becomes a metaphor, given our argument, for the inseparable
ethical behaviour and blessing manifested in economic form. When Latham
talks to the building world in the language of commerce, he is talking
about money and about firms being in a position to pay appropriate wages
and dividends, in order that life may be enjoyed. The concrete image is
that of acquiring in an ethical and just commercial and contractual
context, sufficient coins to yield the blessing.
The
outcome of this interplay is that money is a metaphor of deep meaning
for the good torah-like legislation and guidance on good practice that
can emanate from reviews such as Latham's.
Law/code/torah
and community
Both the Building scenario and the scriptural considered in this Section,
are living communities with important aspects of their life documented.
In the case of Latham, the documentation in legislation, codes of
practice and other material, is for the present community. In the case
of Scripture, the documentation is for whatever community gathers around
it, at whatever time. Although the relationship between Latham and its
community is short-term because new situations will arise requiring new
documentation, it is not discordant with the kind of relationship
between Scripture and its community. In neither case can the community
exist without the documentation. Scripture is Scripture because
communities accept its standing. The community of those who procure and
provide buildings is identified by its engagement with the system
embodied in the documents. In the case of both Latham and Scripture,
community and documentation are metaphors for each other.
The
second stage in the argument is to consider whether each
community/documentation entity is a metaphor for the other. The
scriptural entity has no practical meaning unless its meaning is
expressed in specific, contemporary entities, such as Latham. The Latham
entity is both contemporary and temporary. That by itself does not mean
that it is meaningless but it does mean that. unless it finds an anchor,
it will drift on the sea of time. The scriptural entity can give it such
an anchor because the two entities are not inconsistent in terms of the
essential economic/commercial and ethical relationships within them. It
can be concluded that they are metaphors and that together they enable
us to understand more clearly word (or Word) - community relationships.
5.7
Emergent Axiologv
`Systems'
arrd the common good
This
Section is the most impersonal of the series of four of which it is the
third - Section 3 related to particular building scenarios, Section 4 to
the specific and social issue of housing in relation to prophecy and
Section 6 will develop fully the concept of the individual professional.
This Section has been about procurement and contractual systems, that is
about how the world of Building - including its clients - orders its
life. That has been explored in association with the way
Israel
sought to order its common life on the basis of the story and teaching
of Moses, and of the torah. There could have been no
Israel
without the torah and the figure whose identity is bound up with it.
Similarly, there can be no Building without a valid and viable
philosophy and system of procurement and contractual arrangements,
embodied for the moment in Latham and what has flowed from it.
What this points to is the importance of `system'. To be good, a system
must embody good values so that it can itself be highly valued. It
follows that care,for the `system' and care of the 'system' is a
critical area of professional responsibility. Such care must relate to
the system as a whole, to the common good. This involves recognizing
that money is not something to be greedily acquired but a metaphor for
the closely-related ethical and economic values at work in the system.
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