Hot Topics - Latham Report

Question 1

What is the Latham report?

Answer 1

• titled Constructing the Team
• an influential report written by Sir Michael Latham and published in July 1994
• Latham was commissioned by the UK government and industry organisations to review procurement & contractual arrangements in the UK construction industry
• The aim was to tackle controversial issues facing the industry during a period of lapse in grown
• Latham identified industry inefficiencies, condemning existing industry practices as ‘adversarial’, ‘ineffective’, ‘fragmented’, ‘incapable of delivering for its clients’ and ‘lacking respect for its employees’

Question 2

What was Latham’s overarching recommendation?

Answer 2

He proposed that the client should be at the core of the construction process and the industry should move away from its adversarial structure, adopting a more integrated approach with greater partnering and team work

Question 3

What were Latham’s specific recommendations?

Answer 3

• As the largest single procurer of construction, the government should commit itself to becoming a best practice client
• The NEC contract should be adopted
• Partnering should be used to encourage the establishment of long-term contracting arrangements
• Greater standardisation and better integration of contract documents
• Compulsory latent defects insurance
• Publication of several codes of practice and guidance documents to clarify, coordination and standardise practices across the industry
• Risk allocation to the party best able to manage, estimate and carry it
• Take steps to avoid conflict, speedy dispute resolution and adjudication
• Firm duties of teamwork with shared financial motivation