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Taywood axes subbies to form framework list

Success with M&E partnerships leads firm to expand initiative

TAYLOR Woodrow is slashing its supply chain under radical proposals to appoint framework subcontractors to take the lion's share of its construction spend.

The £2.2 billion turnover group is currently vetting its preferred list of suppliers and will appoint a small number of firms for all major projects including Private Finance Initiative deals.

It follows the successful rollout of its supply chain integration programme, called the Strategic Alliance Partnership, aimed at significantly cutting its list of mechanical and electrical contractors.

Under the partnership, the firm has selected NG Bailey, Croydon-based Staveley, and London firm Rotary to share £100 million-worth of building services work.

Taywood is now looking to expand the initiative and is preparing to interview 11 consulting engineers before announcing a framework list in the summer.

Plans are also under way to create partnerships with steelwork and groundwork contractors, structural engineers and architects.

Charles Lever, director of building services for Taywood, said: 'All the management teams are integrated and decide who is best placed to carry out each project.

'The firm is then on board from day one and we share offices and resources to develop the scheme in partnership right from the preliminary stage.

'This enables everyone to concentrate on the project rather than fighting their individual corners. There is a number of other significant improvements such as shorter programming time, reduction of resources and minimising risk.'

Taylor Woodrow has already slashed its supply chain to 100 firms from 5,000 three years ago as part of its move away from traditional contracting.

The frameworks will apply across the group's £363 million turnover contracting arm and its £1.7 billion housing division.

One leading consulting engineer said: 'Firms on the final list should reap the rewards.'