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Transforming construction: The Industrial Strategy, Sector Deal and the Challenge Fund - Sam Stacey, Innovate UK


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As part of the Clean Growth Grand Challenge within the Government’s Industrial Strategy, a £420m Construction Sector Deal was announced in 2018. A key part of the Sector Deal is an investment by the Government of £170m in the Transforming Construction Industrial Strategy Challenge Fund (ISCF) in line with the Transforming Infrastructure Performance (TIP) Strategy and the Transport Infrastructure Efficiency Strategy (TIES).

£10m MMC, Digital and Whole-Life Performance (CR&D) Programme: UK businesses can apply for a share of up to £10m for CR&D projects that go beyond the state-of-the-art in improving productivity, quality and performance of the UK construction sector.

£26m Demonstrator Programme: An investment of up to £26m is available in Demonstrator projects that demonstrate improvements in productivity, quality and performance of the UK construction sector. These will include new validations of business models, digital approaches to design, construction and management, advancements in modern methods of construction and approaches to whole-life performance of a building or assets.

The webcast recording is now available:

Find out more about the Industrial Strategy Challenge Fund at

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Transforming construction: The Industrial Strategy, Sector Deal and the Challenge Fund - Sam Stacey, Innovate UK

  1. 1. Sam Stacey Challenge Director Transforming Construction
  2. 2. Waste in construction  Defects  Materials  Energy  Waiting  Unused talent  Double handling  Excess inventory  Movement of people
  3. 3. Active buildings Standard products and processes Wide system adoption Actionable information New market entrants Artificial intelligence Long term planning New skills Successes Challenges Robust supply and demand Industry investment z Construction transformed Industry integration
  4. 4. UK’s construction sector deal Sustainable long-term model 4 years of funding £170m Government funding £250m Matched industry funding
  5. 5. Three strategic outcomes 5 Delivering better, more certain outcomes using digital technologies Digital Improving productivity, quality and safety by increasing the use of manufacturing Manufacturing Optimising through-life performance though the development of smart assets Performance
  6. 6. 6 Digital Manufacturing Performance Delivered through three enablers Procure for better value1 Industry-led innovation2 Skills for the future3
  7. 7. Construction Sector Deal Transforming Infrastructure Transforming Construction Challenge Construction policy
  8. 8. Standard products and processes
  9. 9. Digital transformation across asset lifecycle Information Management Framework Product family architectures Process engineering Performance testing and validation Demonstration and engagement
  10. 10. Platform Specification Component Set Digital Library Configurator Tool Digital Twin Evaluation Framework Quality Management Manufacturing Engineering Supply Chain Capacity Product Family Architecture Government Discovery Information Management Asset Management & Digital Twins Product Validation Digital Maturity Demonstrators Commercial Transformation Skills and Training Component Data Digital Compliance Platform Concept
  11. 11. Active buildings
  12. 12. Information • Data interoperability • Digital integration platform • From BIM to machine control • AR for efficiency • IoT for site plant • IoT and concrete curing • IoT and thermal performance • LIDAR for cranes Product and process • Panelised housing • DfMA for housing • Modular Homes • Industrialised homes • Energy active prefab • Smart piles • Frame optimisation • Modular steel Machine learning • AI and logistics • AI for programme prediction • AI and BIM • AI and component tracking • AI for site safety • AI and progress monitoring • AI for quality • Alexa for sites Funded innovation • 3D concrete printing• Robot clusters • Non-prismatic concrete
  13. 13. SEISMIC Redesigned steel frame for school buildings, standardised across two major suppliers:  40% reduction in cost  52% faster assembly  57% reduction in weight (40% reduction in emissions)  Exports - being used overseas Market uptake:  Steel frame on Gen. 5 procurement framework for DfE  Interest for other buildings types  Digital configurator  Will extend to other components
  14. 14. AIMCH  UK’s largest house builder and second largest social landlord coming together with their supply chains to industrialise housebuilding  Using challenge approaches to reduce cost, boost productivity (40% target), increase safety onsite, improve quality (75% less rework) and 30% faster  Bringing in wider housebuilding community, and establishing data to prove the business case Impacting 35,000 homes a year
  15. 15. Draft benefits map Benefit Title Benefit Type Method of Measure Target Value Reduction in whole life costs Economic Contracted projects influenced by TC programme - total value to date, where calculated lifetime cost is reduced (around 33%). £3bn projects at around 33% reduction Reduction in delivery time Economic Measured reduction in time versus baseline for project conception to delivery for TC influenced projects - target of £3bn worth 50% reduction for £3bn projects Reduction in Trade Gap Economic Measured trade gap for construction sector including engineering services. £200m Reduction in greenhouse gas emissions Economic Target - £3bn assets with reduction in lifetime emissions. £3bn projects Reduction in productivity gap Economic Target £10bn projects contracted with increased productivity. £10bn projects Increased industry investment Economic Measured match and aligned funding (influenced R&D and project builds) by the TC programme £250m Critical mass of active energy positive buildings. Economic Value of buildings contracted or specified using active energy technology, influenced by the TC programme. £280m Demonstration of the business case for active energy buildings Technology Measured/calculated from TC influenced projects. 5 - 3 years Uptake of concepts at scale Economic Measured % of government contracts enabling TC methodologies, e.g. modern methods of construction (offsite or pre-manufactured value). 15% contracts Higher levels of lifetime build asset performance Economic Measured value of projects influenced by TC programme that demonstrate greater whole-life performance, or include value measures. £2bn of projects Improved assurance of buildings Legal / Regulation Measure engagement level of sector/government in new assurance approaches. No easy metric, will constantly review with gov oversight
  16. 16. 16 Summary More sustainable business models Impact at scale Improved profitability Productivity improvement Skills Agenda delivered Value adding jobs in regions Industry Government Digital Manufacturing Performance Increased Exports Carbon reduction More houses More rail capacity Improved car journeys Cheaper energy Better public services
  17. 17. EMAIL: TELEPHONE: 0300 321 4357 WEBSITE: strategy-challenge-fund/transforming-construction/ Sam Stacey Challenge Director – Transforming Construction UKRI FOR FURTHER INFORMATION
  18. 18. 1 The Government strategy for transformation in the infrastructure sector Transforming Infrastructure Performance (TIP) & Transport Infrastructure Efficiency Strategy (TIES) Innovate UK Competition Launch Catherine De Marco Department for Transport September 19
  19. 19. The construction sector has a productivity opportunity 2OFFICIALSENSITIVE
  20. 20. Infrastructure investment is trebling to a historic high 3OFFICIALSENSITIVE
  21. 21. In response, Transforming Infrastructure Performance (TIP) was launched 4OFFICIALSENSITIVE TIP aims to improve outcomes for users, investors, and society, focusing not just on construction, but performance over the whole life of infrastructure
  22. 22. TIP has made progress in all the themes 5OFFICIALSENSITIVE Smarter Infrastructure Working Group Collaborative Procurement Working Group
  23. 23. TIP is aligned with other initiatives that aim to transform the sector 6OFFICIALSENSITIVE
  24. 24. The Transport Infrastructure Efficiency Strategy (TIES) is transport's transformation programme 7 TIES Partners “Greatest opportunities to drive efficiencies is during the early stages of investment planning”. Chair and Taskforce
  25. 25. Our ambition is to deliver a step-change in transport infrastructure projects 8OFFICIALSENSITIVE 1. ‘Increasing our understanding of cost and performance’ 2. ‘Exploiting digital and innovative technologies’ 3. ‘Enabling delivery through improved business processes’ ‘Greater confidence that its infrastructure programmes will be delivered to budget and schedule’ ‘Develop baseline and target for capital investment delivered through modern methods of construction’ ‘Business cases are more robust and better placed to predict the end state of infrastructure programmes’
  26. 26. Benchmarking is critical to understanding cost and efficiencies 9OFFICIALSENSITIVE Benchmarking of Footbridges Short-term: High Impact Programme to address the needs of ongoing infrastructure programmes Long-term: Assurance around what programmes are likely to cost; support for wider strategic objectives such as carbon reduction; driving innovation. Theme 1 Theme 2 Theme 3
  27. 27. Collective activity Robust benchmarking will underpin increasing use of digital and innovative technologies 10OFFICIALSENSITIVE Developing an evidence base
  28. 28. Project Delivery Procurement TIES will enhance project delivery through improved business processes 11OFFICIALSENSITIVE Theme 1 Collaboration with supply chain Challenge Function