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August 3, 2001

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Rethinking perimeters

In July 1998 Sir John Egan published his landmark report ‘Rethinking Construction’ in which he identified several ‘drivers for change’. Essentially, Egan called for an end to the adversarial conduct that has prevailed for so long in the UK’s construction sector.
Later that year, under the able guidance of Peter Gershon, the Government set about a major review of its civil procurement programme as part of a push towards greater efficiency and competitiveness.
Ultimately, this led to the establishment of the Office of Government Commerce – a body tasked with co-ordinating the implementation of best practice procurement principles throughout central Government purchasing.
Since then, the principles expounded by Egan and Gershon have permeated the private and public sectors, and in both arenas the trend towards collaborative partnering in the procurement process continues unabated.
That’s not to say that the days of competitive tendering are numbered. Far from it. However, it does present numerous disadvantages. Indeed, such tendering can be fatally flawed when trying to deliver best value.

Changing perceptions
As a manufacturer of chain link and welded mesh perimeter security fencing, Bekaert is situated at the blunt end of a supply chain that’s seldom considered cutting edge when it comes to adaptability or innovation. The popular characterisation of the fencing business is one of a fragmented, low tech, lowly-skilled and poor quality strand of the security manufacturing sector. One in which margins are continually eroded as competitive pressures manifest themselves in the adulteration of hard-won specifications.
It’s against this background that Bekaert has devised its ‘Future of Fencing’ initiative. A bold but measured attempt to apply Sir John Egan’s best practice principles to the fencing industry in a bid to improve the service to end users.
Egan’s ‘drivers for change’ lie at the heart of the initiative. One of these is a deliberate focus on the end user. Instead of following competitor trends or attempting to anticipate market requirements, it’s of the utmost importance that we go and talk to end users. The emphasis has to be on customer service and support.
Another Egan driver is the ‘quality-driven agenda’. With today’s discerning end user demanding zero defects, on-time delivery, real service and tangible value for money, the ‘Future of Fencing’ scheme commits us to a programme of ongoing quality improvement.
Of course, these actions alone would not have been sufficient. End users have heard promises about service and product quality many times before. It’s the quality of the installed system in its entirety that really counts.
We also recognised that there was some market resistance to Egan’s procurement principles on the grounds of the perceived administrative burden involved, not to mention the cost of execution. The only way to circumvent this was to introduce a comprehensive, insurance-backed guarantee that would not only remove the risk of a client receiving a sub-standard installation, but also provide a zero cost, self-regulating means of best value compliance.
What we have devised represents a ten-year, ‘no quibble’ supply and fix guarantee. One that is independently underwritten by a major insurance concern. Should any fences fail during the insured period, rectification would involve a simple insurance claim procedure.
To accomplish this would not only require supreme confidence in Bekaert’s fencing systems, but a uniform and consistently high standard of installation from the contractors.

Underwriting the scheme
We wanted project-by-project insurance where cover was not reliant on the maintenance of annual premiums over the insurance term. A single premium, full-term insurance cover was the only viable option. In this way, the end user can be sure that he or she is protected from any future default by the system supply chain.
We eventually found a Belgian insurance company that could meet our demands. This gave rise to the Bek-Assure guarantee package covering the supply and fix of all our fencing systems. This service is provided at no additional cost to the end user.
Such an insurance backing has several advantages. In practice it can be very difficult to establish the true cause of a defect or failure in a perimeter protection system. Did the fence itself fail, or was it abused or poorly installed? With the Bek-Assure guarantee, in the event of a valid claim end users are indemnified through the insurers on a ‘no fault’ basis.
To support the scheme, we’ve also introduced PRO-Net, a 50-strong nationwide network of Bekaert-licensed fencing contractors to handle Bek-Assure guaranteed business. Only those contractors certificated under the PRO-Net Licensed Contractors’ Scheme are eligible for membership.
Seemingly, a little will on the part of security system manufacturers in combination with a forward-thinking end user base means that commercial success and the provision of best value need never be poles apart.

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