Cover page

Table of Contents


Title page

Copyright page

About the authors

List of figures and tables



List of acronyms

1: Purchase and Supplier Engineering and the London 2012 Olympics


The concept of Purchase and Supplier Engineering

Programme organisation – an Olympic case study

Procurement organisation structure – the Olympic Delivery Authority

Roles and responsibilities

Projects and programmes

Concluding remarks

2: A framework for understanding markets in construction


Managing the supply market

The client and construction

Projects, programmes and construction dynamics

The client and the supply chain

Defining the supply chain

Outsourcing and subcontracting

Understanding and managing conflict in construction

Concluding remarks

3: The client’s values and the balanced scorecard


Developing a framework for measuring performance

All from a project vision

Performance measurement

Using balanced scorecards to communicate values and measure performance

Developing a balanced scorecard

Measures including key performance indicators

Creating appropriate KPIs from a project vision and scorecard

Concluding remarks

4: Packaging and contracting strategies


What, why and how to buy

Packaging strategy

Gestalt theory

Programme clusters

Programme application

Contracting strategy

Forms of contract used in the 2012 Olympics procurement

Classification of contracts

Concluding remarks

5: Common component and commodity strategies


The benefits of a common component strategy

Factors influencing the procurement of common components

Developing a common component strategy

The common component procurement strategy

Concluding remarks

6: Engaging with suppliers: How to attract suppliers and increase interest and awareness


Gathering market intelligence

Supplier dialogue

Concluding remarks

7: eSourcing and process codification: Standardising programme procurements


The guiding principles of a robust procurement process

Standardising procurement documentation

Security of the procurement system

Evaluation of tenders

The application of electronic tools in the procurement process

Aspects of managing systematic procurement processes

The milestones of procurement reporting

Standardisation and codification of the procurement process

Procurement reporting

Concluding remarks

8: Managing supply chain involvement across a programme


Supplier relationship management

Remaining in contact with all firms who tender for work

Supply chain mapping

Concluding remarks

9: Due diligence and the management of capacity


Modelling supplier utilisation

Monitoring the financial strength of suppliers

Sub-tier supplier engineering

Identifying critical suppliers

Concluding remarks

10: Performance management


The Purchase and Supplier Engineering model and programme management

Purchase and Supplier Engineering and the programme management office

Performance management within Purchase and Supplier Engineering

Performance improvement through Purchase and Supplier Engineering


Concluding remarks


JMM – For Jenny, Charlie Elvis and Ruben Tate

SG – In memory of my late mother, Mrs Vicky Gruneberg

Title page

About the authors

John M. Mead is part of an International Consultancy and has previously led the Supply Chain Management function for the delivery of the infrastructure for the London 2012 Olympic and Paralympic Games. At the time of writing this book, he was engaged in a similar role on the £14bn Crossrail construction programme to build a railway which tunnels under London.

Stephen Gruneberg is a Reader at the University of Westminster and a Visiting Fellow at the Faculty of the Built Environment, Northumbria University. Stephen is an industrial economist specialising in the construction and property sectors and has written and co-written numerous books, reports and papers.

List of figures and tables

Preface Figure 1   The PSE model in relation to the chapters of this book
Figure 1.1The Purchase and Supplier Engineering (PSE) Model
Figure 1.2Programme-level procurement function matrix organisation
Figure 2.1The manipulation of supply
Figure 2.2Example of a supply chain hierarchy
Figure 3.1The vision and perspectives of the infrastructure works for London 2012
Figure 3.2The logic and implications of themes derived from the vision statement
Figure 3.3The linkages of the strategic goals developed from the vision statement
Figure 3.4Critical success factors and strategic goals
Figure 3.5ODA Balanced Scorecard
Figure 3.6Triple-bottom-line sustainability model
Figure 3.7Performance indicators used on the London 2012 Infrastructure programme
Figure 4.1The procurement cycle
Figure 4.2Tender event schedule, programme schedule and procurement strings
Figure 4.3An optical illusion
Figure 4.4Gestalt diagram of eight independent rectangles arranged in two groups of four
Figure 4.5Diagram of eight projects arranged in two groups of four
Figure 4.6London 2012 programme clusters
Figure 4.7Definition versus Risk matrix
Figure 4.8Clusters, contract classification and contracts used
Figure 6.1The market engagement cycle
Figure 6.2Supplier dialogue mechanisms, their timing and relative cost
Figure 6.3Simple pre-assessment process
Figure 6.4How the pre-assessment questionnaire fits into the overall procurement process
Figure 7.1The formal procurement process: eEvaluation and eSourcing
Figure 7.2The home page of the RICS eTendering site
Figure 7.3Page taken from an online Pre-Qualification Questionnaire (PQQ)
Figure 7.4Page taken from an online pricing document
Figure 7.5Screen shot courtesy of QinetiQ Commerce Decisions Ltd showing their online eEvaluation system, ‘Award
Figure 7.6An example of a Schools of Excellence structure
Figure 7.7The 13-step procurement process
Figure 8.1Example of a tier 1 contractor supply chain map within one cluster category
Figure 8.2Screenshot of a full tier 1 supply chain map for the Crossrail programme
Figure 9.1The relative bargaining positions of buyers and purchasers
Figure 9.2Contractor exposure, showing peak exposure and utilisation percentages over time
Figure 9.3Appetite graph, showing awarded and tendered projects against engaged contractors
Figure 9.4CapEx compared to OpEx – the paradox of expenditure
Figure 9.5Identifying critical packages and their suppliers
Figure 9.6Programme supply chain management – dimensions of influence
Figure 10.1Programme management model
Figure 10.2The cycle of Defining, Measuring, Analysing, Improving and Controlling for programme supply chains
Table 3.1Example of an Operational Measurement
Table 5.1Programme scope and procurement
Table 9.1Capacity of contractors viewed against projects


Rarely, if ever, has the British construction industry delivered a major construction programme on the scale of the London 2012 Olympics, with so much success in terms of timeliness and quality while remaining within budget and without any of the acrimony that is so often associated with major construction projects. The London 2012 construction programme and its outcome have already proved to be a source of pride and achievement not only for the construction client, the workers who built it, the firms involved and the UK construction industry in general but also for the UK as a whole. So much so that politicians from all parties have praised the delivery and construction of the games infrastructure and have been keen to promote the methods used to build the Olympic Park and the other venues in order to repeat the success of the construction process and promote the methods throughout the construction industry.

Naturally, many factors came together to build that success but one of the key foundation blocks to the delivery of London 2012 was the way in which the buildings, stadia and infrastructure of the Olympic Park were procured. In my report, London 2012 – a global showcase for UK plc, I make the recommendation that, ‘Government should adopt the principles of the procurement and programme management approach used by the ODA, [the Olympic Delivery Authority], for all public sector projects valued at over £10m’.

This book gives an account of the actual methods that were used in the programme procurement. The techniques described in this book were combined in such a way that those who led the procurement team named their approach Purchase and Supplier Engineering (PSE), an approach that could only have been developed because the complexity of the programme was recognised by the ODA, who recognised the need to allow a highly gifted and professional team to devise the most appropriate procurement methods.

This book describes the procedures, techniques and methods that were used to such great effect. It can only be hoped that the success of the London 2012 programme will be used to encourage others to adopt or adapt the same or very similar strategies, not only in the UK but around the world, wherever major construction programmes require the management and co-ordination skills and understanding that procured and delivered the London Olympics. Indeed this has already begun to happen as PSE has been adopted on the Crossrail programme, also discussed in this book. The London 2012 programme was a success; I hope this book will help future programmes to enjoy similar success.

Sir John Armitt CBE, Chairman, Olympic Delivery Authority

* * *

The delivery of the London Olympic Park and venues has won wide acclaim as a showcase for UK plc. However, at the start of this epic journey in 2006 the horizon was very different, as demonstrated by an almost total lack of interest from industry in participating.

This is not surprising as the problems of Wembley were unfolding at the time and industry enjoyed a boom of activity. Why would anyone wish to participate in such a high profile enterprise with a fixed and very public end date and an international history of delays, cost over-runs and lost reputations?

Into this arena stepped the Olympic Delivery Authority as the Government agency charged with delivery. If national objectives were to be met then industry resources would have to be mobilised on a massive scale. To achieve this, the ODA would have to gain in months what many client organisations pursue for years – their establishment as a recognised client of choice.

The first stage in this process was to carefully listen to industry and its aspirations and to convert these into well defined and communicated commitments as to how the ODA, as client, would behave and how industry was expected to reciprocate. Of course, talking and doing can be very different. However, early engagement in the procurement process demonstrated that commitments would be met and built with a solid foundation on which to go forward.

Industries do not create markets; that is for clients to do and they usually get what they deserve. In the case of London 2012 the ODA received the total support and commitment of UK plc which over time developed into a matter of national pride with all participants giving of their best and no one prepared to let the side down.

It is said that those who ignore history are destined to relive it. However, the success of London 2012 does not have to be a one time achievement but rather a beacon of how things can be. This book charts how all this was achieved and for those who take note of the many lessons learned and apply them appropriately the potential for a successful outcome is vastly increased.

Howard Shiplee CBE, Executive Director, Laing O’Rourke and previously Director of Construction, Olympic Delivery Authority

* * *

The construction industry has always been a contradiction whereby those that have the vision for how our built environment should develop are trained artistically (as creative people) and those who create that environment are trained as technicians (adapters). Creative people have vision, whereas adapters solve practical problems. There is a gap. The technocrats do not fill the gap; they just help define its edges.

This book describes a methodology that fills the gap, that takes the vision of the creatives and provides a sound and tested base on which the adapters can work. Purchase and Supplier Engineering (PSE) was brought together from best practice applications across industry, the catalyst being the London 2012 Olympic Games. The need for Usain Bolt to tie up his running shoe laces at a given moment, on a specific day five years in the future, galvanised thought since 2006. The degree of national embarrassment as a result of a late Olympics was unimaginable. The result was the creation of a hugely successful methodology of procurement and supplier management that was made up of parts that in themselves were nothing particularly new, rather a great recipe made up of sound ingredients.

Crossrail is one of the largest and most significant transport projects ever undertaken in the Western hemisphere. It has little of the kudos of an Olympic Games but at an engineering level it is astonishing. To bore twin tunnels to take a full size railway under the quite ancient city of London and beyond is the stuff of HG Wells and science fiction. Crossrail has been a programme that has not played the ‘not invented here’ card but has instead embraced best practice. The PSE approach to procurement has been fully adopted by Crossrail Limited and has been used to procure the entirety of the portfolio of construction and engineering contracts, roughly twice the size of the Olympic Delivery Authority’s programme, albeit not nearly as diverse or unique.

At the time of writing this, I cannot imagine that Crossrail will have quite the Topping Out ceremony that The London 2012 Olympics build enjoyed. However, what it does prove is that the construction legacy of the Olympics is alive and well and thriving.

Martin Rowark, Procurement Director, Crossrail

* * *

PODIUM, the Further and Higher Education Unit for the 2012 Games, was established in 2007 to maximise the engagement of universities and colleges across the United Kingdom in London 2012 and to use the Games to promote and showcase the contributions made by UK universities and colleges nationally and globally. These contributions to the legacy of London 2012 include the timely critical appaisal of all the dimensions of the Olympipc and Paralympic Games, drawing lessons for the development and management of future ‘mega’ events. Programme Procurement in Construction: Learning from London 2012 by my colleague Stephen Gruneberg and his co-author John Mead is one of the first tangible academic contributions to the legacy of the Games.

The scale and complexity of the construction programme was immense; its delivery was inspiring and a global showcase for UK plc. The leader of the ODA, Sir John Armitt, has suggested that lessons should be translated to other major public sector projects. The procurement processes were at the heart of the success story. This book provides an appraisal of those processes and highlights the lessons to be learned. It will become an important element of the London 2012 legacy.

Professor Geoffrey E. Petts, Chair, PODIUM, and Vice Chancellor, The University of Westminster


The construction of the venues and necessary infrastructure to stage the London 2012 Olympics was such a resounding success that it boosted not only the reputation of the UK construction industry, but also the confidence of the UK population in the country’s ability to organise, build and run a major international event. Just as the US man-on-the-moon rocket programme challenged the competence of the whole industrial and technological base of the United States, the 2012 Olympic programme demonstrated the ability of the UK construction industry to provide a built environment to the highest standards of quality, on time, without a single fatal construction accident, in spite of its immense scale and engineering and logistical complexity.

Many factors contributed to this achievement and one of those, in particular, was the method used to mobilise the construction industry to respond to the requirements of the construction programme in the first place. Many issues needed to be resolved. How does one buy the stage for an Olympic Games? How does one engage with the construction industry that will be charged with the delivery? How does one manage the details of thousands of contracts and the many firms of contractors, subcontractors and material suppliers and ensure that no one organisation adversely affects any other, to the detriment of the programme? How does one judge quality at the tender stage? Or monitor progress? Or, for that matter, how does one measure programme exposure, or manage performance? How does one maximise competition during procurement without stepping on a legal minefield of obligations? How does one measure capacity and the ability of firms to cope with the work and the risks involved? These and many more questions and issues are dealt with in this book.

The careful and painstaking preparation of the procurement processes is discussed, ranging from understanding and developing the appetite of contractors and encouraging them to engage with the procurement process, to monitoring performance based on the contractors’ own performance claims as set out in their tender submissions. The emphasis of the approach described is based on a close attention to detail to avoid surprises, while keeping a focus on the total programme. By not doing anything radically innovative or indeed difficult, but by doing simple things thoroughly in a coordinated and strategic way, a big picture is produced that is relatively easy to manage and control, with fewer Rumsfeldian unknowns.

Taken together, the methods and processes described here define an approach the authors and originators have termed Purchase and Supplier Engineering (PSE). Although similar to Supply Chain Management in many ways, PSE is a particular strategic approach to procurement that takes into account the state of the construction market at the inception of the procurement process and the early engagement of possible contractors. PSE provides an overview of the interest of firms in participating and the resulting capacity and workloads of all suppliers, including the main contractors and the critical subcontractors and materials suppliers. Having established the strategic approach for programme procurement and having organised the tendering process and awarded the contracts, PSE follows through by monitoring progress and risk throughout the construction phase and for all critical suppliers in the supply chain.

In a recent article, Hunter (2012) refers to new legislation in the UK: the Public Services (Social Value) Act, which from 2013 requires public-service contracting authorities to take into account economic, social and environmental impacts, balancing price, quality and social value in their procurement strategies. He also talks about engaging with the market before commissioning work, but he does not say how these issues may actually be dealt with in practical terms. This book describes how these and many more objectives were addressed in two major programmes: namely, the London 2012 Olympics construction programme and the Crossrail programme. The former bore the title of the largest construction programme in Europe, only to be beaten by the latter, with a combined total budget well in excess of £20 bn.

The concepts and techniques used in the programme were not one-off techniques developed for the London Olympics alone, delivering success for just the ODA. Since the completion of London 2012 they have been further developed by its originators and either wholly or partially adopted on numerous other major construction programmes including the £14.8 bn Crossrail rail programme, which involves tunnelling 21 km of twin-bore tunnels under the heart of London and includes eight new sub-surface railway stations.

It takes a client with great vision and foresight to commit to investing in this PSE strategic approach to procurement and supply chain management, but the approach has demonstrated its ability to deliver a high degree of predictability and give clients what they set out to achieve not only in terms of the financial and economic objectives of budgets and schedules, but also in terms of the client’s social and environmental objectives. The approach has also shown its ability to avoid the costs associated with supply chain insolvency, while achieving savings in common components and commodities.

We realise that these are extraordinary claims and that many factors contributed to the success of London 2012. However, in the euphoria of the Games and in the aftermath of the events, there has been very little criticism – if any – of the way the construction programme was conducted. Indeed, since the use of PSE by the ODA, elements are now being used to a greater or lesser extent on all manner of construction programmes, including those in the energy-generation, transport and utilities sectors across both public- and private-sector procurement.

For these reasons this book is aimed at public- and private-sector clients, developers, senior management and those professionals involved in undertaking the procurement, supply chain management and delivery of complex major construction programmes or those organisations, such as major tier 1 contractors, that manage large and diverse portfolios of projects across multiple client bases. The concepts described can be applied in part or in whole to portfolios of projects on a smaller or larger scale than that of an Olympic or Crossrail programme. However, to demonstrate the usefulness of the PSE model, these two particular programmes are used throughout as examples.

The specific management processes that were used in developing the PSE approach to procurement for the Olympic programme for London 2012 are described in this book. No attempt has been made to make a critical evaluation of the processes. Possibly, over time, a critique of the methods used to procure the built infrastructure of the Games may emerge. In the meantime, the authors have endeavoured to give an account of each element in the procurement process to provide the rationale behind the methods used.

Success and failure are often the result of a number of different factors. Attributing success to one particular aspect of a large and complex programme such as the Olympics can be misleading. All those involved in the many aspects of the programme were very aware of the great debt owed to the many thousands of people who contributed their diverse skills and expertise to the success of the overall project. They were also aware that numerous voices were raised in criticism of the Games, and doubts were raised about the ability of the ODA to complete their task. However, once the actual sporting events commenced, it became clear that the UK construction industry had delivered on its promises and given the London Organising Committee for the Olympic Games (LOCOG) its internationally recognised venues and infrastructure. How these promises were achieved is described in the chapters of this book, in the hope that the lessons learned from this experience can be transferred to other construction programmes and portfolios of projects both in the UK and around the world.

The book is divided into three main sections. The first part is concerned with engaging the supply market. The second part deals with the organisational aspects of programme procurement, including the appointment of contractors and the approach used to decide on the contractual arrangements used. The third part describes the management and monitoring of the performance of the critical supply chain organisations during the construction phase. The first chapter introduces the concept of Purchase and Supplier Engineering, (PSE), which was developed in response to the complexity of the programme’s many procurements as their associated processes emerged. Chapter 1 discusses the structure of the organisation of the programme procurement, showing how the delivery partner was engaged as a specialist procurer on behalf of the ODA. One of the key themes of this chapter is the role of the delivery team in interpreting the goals of the client in terms of what the construction contractors were required to deliver. Delivering the vision of the client was central to the purpose of the delivery partner. The chapter concludes by introducing the distinction between projects and programmes.

Chapter 2 provides an overview of the basic economics theory that underpins PSE. That involves a clear perception of the construction market and the wider market forces facing the purchasers and suppliers. The engagement of firms is directly related to the theoretical perspective described. This approach prepares the strategy adopted in PSE for delivering procurement on large construction programmes, a strategy that creates a competitive environment amongst suppliers at all levels in the programme with the purpose of delivering value.

Chapter 3 describes the aims of the client in terms of their values, priorities and critical success factors. In particular, the needs of a client may extend beyond the provision of a physical structure, as major building programmes such as London 2012 tend to impact on local and even national economies, with wider social, environmental and political implications. The client’s priorities can then be translated into the requirements to be met in the form of built structures, how they are delivered, how they are to be utilised and the legacy they leave behind over the life of the assets. The values expressed in the priorities of the client, including political priorities and often contradictory aims and ambitions, are linked to strategic goals, which in turn form the basis for measuring delivery performance and the programme’s wider success.

Chapter 4 deals with the need to reduce the complexity of the many different projects within a single programme. As with any large construction project, packaging strategies have to be devised that define the parameters of each contract. In a programme on the scale of London 2012 the packaging strategy included definitions of the different facilities and the infrastructure that were needed.

Complexity is dealt with by clustering the major packages in a programme, where common characteristics can be identified. The six clusters of the London 2012 programme were structured from the ground up, much like the layers of a cake with the landscape and public-realm cluster as the icing on top. Clustering projects limited the number of different contracting solutions that were required to be used, simplifying the management of the whole process. On the London 2012 programme, most of the contract arrangements were based on variants of the third edition of the New Engineering Contract, and the chapter explains the specific contract types that were used and their appropriateness for each element in the programme.

Chapter 5 discusses the benefits of procuring common components and commodities, where these were being used across the programme or on several projects or facilities being constructed simultaneously or even concurrently. The question of whether a common component strategy is required is addressed and the chapter explains how it may be achieved, if appropriate. The advantages of purchasing common components are numerous and include securing supply, achieving economies of scale through bulk purchasing, and maintenance cost reductions.

It is essential that potential suppliers have confidence in the professionalism, knowledge and experience of the client body. With a procurement strategy in place for the facilities and the common components, the client is then in a position to approach suppliers. Chapter 6 deals with the methods used to engage with the supply market. The appetite of firms to become involved and motivated determines the capacity of the market to supply what is needed to deliver the requirements of the programme. Dialogue with suppliers is essential and no fewer than 10 different methods used are described that together generated the intelligence to inform procurement, avoid surprises and gain the commitment needed on all sides to deliver the full programme meeting the client’s needs and priorities.

In Chapter 7 the PSE concept is used to standardise the procurement process and make it systematic, efficient and more of a procurement production machine. This represents the formal engagement of contractors and suppliers based on a set of standardised documents and procedures. It is essential that the tendering process is conducted efficiently with clarity, auditability, transparency and fairness. On the London 2012 programme electronic tools for eSourcing and eEvaluation were used to facilitate the tendering process via the internet. The use of digital technology fits the conventional procurement process, while standardising the approach to facilitate ease of procedural management, assurance and governance.

The relationships between the client body and contractors need to be managed throughout the tendering process and subsequently on an ongoing basis, and this aspect is discussed in Chapter 8. It is essential if the client is to maintain control over the construction process without impacting on the formal legal roles, rights and duties of the various parties engaged in the process. The client, for example, needs to map the supply chain to monitor the vast number of contracts and contractors involved. The method used to map the elements of the supply chain is shown, from directly contracted tier 1 suppliers to the indirectly subcontracted critical tier 2 and 3 supply chain.

It is not possible for a client to procure a large programme without a system of checks to assess the reliability of the supply chain. This is known as ‘due diligence’ and is concerned with assessing the financial capability and capacity of firms to deliver what is required of them at project and programme levels. That leads into a discussion of risk and exposure. Chapter 9 is therefore concerned with the methods used to measure the ability of firms to deliver. Due diligence on the part of the client extends to monitoring the financial strengths of contractors relative to their contractual commitments, with a view to anticipating difficulties and dealing with them in good time, where possible and appropriate. This overview is not concerned only with main or tier 1 contractors, but is also needed at the critical tier 2 and 3 subcontractor level – and indeed applies to any supplier deemed to be of strategic importance to the programme.

In the final chapter, Chapter 10, the performance of firms in the construction phase is reviewed in terms of the commitments made by the winning suppliers during the tender process. After all, their appointment was made on the basis of the approaches described in their tender submissions. The use of the Balanced Scorecard to establish the client’s priorities and the response of suppliers at tender stage to meet those requirements can therefore be compared to the actual outcomes, behaviour and processes of these firms during the delivery phase. The use of benchmarking and key performance indicators as tools to monitor progress and improve performance is also discussed.

In Chapter 1 a model of PSE is shown in Figure 1.7. We use the same diagram below, superimposing the chapter boundaries on the PSE model, to help the reader to identify the specific elements of each chapter and to make the navigation of the book relate to the logic of the deployment of PSE. In Preface Figure 1, each chapter deals with one key part of the PSE model, as described in the chapter summaries above.

Preface Figure 1 The PSE model in relation to the chapters of this book.


Many of the key proponents and originators of the concepts deployed by the Olympic Delivery Authority (ODA) that have since come to be known and recognised as PSE contributed to this book. While there is not enough space to mention the names of the many thousands of people and organisations that came together to make London 2012 the huge success it was, the authors would like to give special mention and thanks to those key originators who developed and implemented PSE on London 2012; they were Martin Rowark, Kevin Lloyd-Davies, Peter Sell and Andrew Garbutt. The authors would like to express their gratitude for their expert input and advice in developing the thinking behind the concepts described and delivered for the London 2012 programme and in bringing this book to fruition.

The authors are grateful to the Olympic Delivery Authority (ODA) and their Delivery Partner, CLM, for being forward-thinking enough to embrace the approach developed by the team for the London 2012 programme; and again we mention specifically Mark Reynolds, Kenneth Owen and Paul Dickinson of CLM and Morag Smith (née Stuart), Howard Shiplee, Huw Edwards and Sir John Armitt of the ODA for their support, both during construction and since, in recognising and championing the approaches developed.

We are also grateful to Crossrail for their support and encouragement in furthering the concepts developed for London 2012, and in particular thanks should also go to Martin Buck, Valerie Todd, and Andrew Wolstenholme. In mentioning the ODA, CLM and Crossrail, we apologise for not mentioning everyone by name directly.

Thanks should also be given to Rob Garvey for bringing the authors together and sparking the idea for this book. In addition, the authors wish to thank Madeleine Metcalfe and Beth Edgar for the time, effort and care they put into mentoring us throughout the process of writing and producing the book and to Ruth Swan, Teresa Netzler and Patrick Roberts for their vital contributions. It is, of course, in spite of their best endeavours, that responsibility for any errors and omissions remains with the authors. Recognition is also due to the the PSE team members who have helped road test and evolve this model: these include Lee Taylor, Mark Lythaby, Vanessa Good, Jitendra Chouhan, Gary Wright, Nazir Fard, Simon Pain and Joanna Lewis, all good colleagues and friends.

Finally, but by no means least, thanks are due to the authors’ families for their support and patience, when spare time that was meant to be family time became more time spent working!

John M. Mead

Stephen Gruneberg


Hunter, D., (2012) ‘Real value demands a bold approach’, Public Servant, September, p. 24. (accessed 5 October 2012).

List of acronyms

BAABritish Airports Authority
BMXBicycle motorcross
CCJCounty Court Judgement
CD-ROMCompact disc-read only memory
CEConstructing Excellence
CECACivil Engineering Contractors’ Association
CH2M HillCornell, Howland, Hayes, and Merryfield (CH2M Hill is the name of a firm)
CIOBChartered Institute of Builders
CLMCH2M, Laing O’Rourke, Mace, the delivery partner
CPAConstruction Products Association
CSFCritical success factors
DMIACDefine, measure, analyse, improve, control
DNADeoxyribonucleic acid
DPDelivery partner
DQIDesign quality indicator
DVDDigital versatile disc
ECI Early contractor involvement
EOIExpression of interest
EPCEngineering, procurement and construction
EUEuropean Union
ICTInformation and communications technology
ITInformation technology
ITTInvitation to tender
KPIKey performance indicator
LADLiquidated and ascertained damages
LEIALifts and Elevators Industry Association
LOCOGLondon Organising Committee for the Olympic Games
M and EMechanical and electrical (construction)
MEATMost economic advantageous tender
MSMarket sounding
NAONational Audit Office
NECNew Engineering Contract
NSCCNational Specialist Contractors’ Council
OCIOptimised contractor involvement
ODAOlympic Delivery Authority
OGCOffice of Government Commerce
OJEUOfficial Journal of the European Union
ONSOffice for National Statistics
PAQPre-assessment questionnaire
PCRPublic contracts regulations
PFIPrivate Finance initiative
PMOProgramme management office
PQQPre-qualification questionnaire
PSEPurchase and Supplier Engineering
RACIResponsible, accountable, consulted, informed
RIARail industry Association
RIBARoyal Institute of Architects
RICSRoyal Institution of Chartered Surveyors
SCMSupply chain management
SEC Group   Specialist Engineering Contractors’ Group
SMESmall and medium sized enterprises
TESTender event schedule
TfLTransport for London
WBSWork breakdown structure


Purchase and Supplier Engineering and the London 2012 Olympics


Some of the millions of people who visited the Olympic Park during the Games give a sense of scale to its structures

(photo courtesy of AECOM).


Some of the 56 km of timber being installed to form the Velodrome’s track

(photo courtesy of Mark Lythaby).


One of the many art installations to be found in the Olympic park during the Games – this is one of the dissected and reassembled telephone boxes

(photo courtesy of AECOM).