Latham Report

The Latham Report was an influential report written by Sir Michael Latham. Commissioned by the United Kingdom Government and Industry to review procurement and contractual arrangements in the construction industry. It tackled the most controversial issues facing the industry during a period of lapse in growth as a whole. Picking up on modern selection, tendering, and construction procedures it sought to aid the industry as a whole by encouraging a team approach to all aspects,

The Latham Report of July 1994 was sponsored by UK Government and Industry following several poorly performing projects. The inefficiencies identified pointed to the need for greater partnering and collaboration in the Construction sector. The Latham report 1994 ‘Constructing the Team’ a joint industry – government report was based on the simple concept that through teamwork the construction industry could delight its customers. The report acted as a wake up with all the urgency of an emergency siren. This was a report that had to be listened too, the industry couldn’t but help but hear the cries for reform. The industry was ‘ineffective’, ‘adversarial’, ‘fragmented’, ‘incapable of delivering for its customers’ and ‘lacking respect for its employees’. More than just ringing alarm bells the Latham report set the agenda for reform and gave the industry targets. From this a raft of initiatives flowed. The report led to the establishment of the Construction Industry Board to oversee reform and subsequent initiatives were the Egan report 1998 ‘Re-thinking construction’; the Construction Best Practice Programme’, ‘The Movement for Innovation’ and ‘Constructing Excellence’. All designed to drive the industry forward.

His report included the following recommendations:-

1. The government should commit itself to being a best practice client.2. The private sector should get together to establish a construction clients forum.3. The CIC should issue a guide to briefing for clients.4. The DoE should publish a simply worded construction strategy code of practice.5. A checklist of design responsibilities should be prepared.6. The use of co-ordinated project information should be a contractual requirement.7. The responsibilities for building services design should be clearly defined.8. A set of basic principles is required on which modern contract should be based.9. A complete family of interlocking contractual documents is required.10. A target should be set for 33% of government funded projects starting over the next 4 years to use the new Engineering Contract.11. The role and duties of project managers requires to be more clearly defined.12. The DoE should develop quality registers of approved contractors, sub-contactors and consultants.13. Guidance should be issued on rationalising tender list arrangements and on partnering.14. The specific efforts of BS5750 in the construction process requires further investigation.15. Adjudication should be the normal form of dispute resolution.