As part of the Clean Growth Grand Challenge within the Government’s Industrial Strategy, a £420m Construction Sector Deal was announced in 2018. A key part of the Sector Deal is an investment by the Government of £170m in the Transforming Construction Industrial Strategy Challenge Fund (ISCF) in line with the Transforming Infrastructure Performance (TIP) Strategy and the Transport Infrastructure Efficiency Strategy (TIES). £10m MMC, Digital and Whole-Life Performance (CR&D) Programme: UK businesses can apply for a share of up to £10m for CR&D projects that go beyond the state-of-the-art in improving productivity, quality and performance of the UK construction sector. £26m Demonstrator Programme: An investment of up to £26m is available in Demonstrator projects that demonstrate improvements in productivity, quality and performance of the UK construction sector. These will include new validations of business models, digital approaches to design, construction and management, advancements in modern methods of construction and approaches to whole-life performance of a building or assets. The webcast recording is now available: https://youtu.be/VHZfvipnfCs Find out more about the Industrial Strategy Challenge Fund at https://ktn-uk.co.uk/interests/iscf

1. Sam Stacey
Challenge Director
Transforming
Construction

2. Waste in construction
 Defects
 Materials
 Energy
 Waiting
 Unused talent
 Double handling
 Excess inventory
 Movement of people

3. Active
buildings
Standard
products and
processes
Wide system
adoption
Actionable
information
New market
entrants
Artificial
intelligence
Long term
planning
New skills
Successes
Challenges
Robust supply
and demand
Industry
investment
z
Construction
transformed
Industry integration

4. UK’s construction sector deal
Sustainable
long-term model
4 years
of funding
£170m
Government
funding
£250m
Matched industry
funding

5. Three strategic outcomes
5
Delivering better,
more certain
outcomes using
digital technologies
Digital
Improving
productivity,
quality and safety by
increasing the use
of manufacturing
Manufacturing
Optimising
through-life
performance though
the development of
smart assets
Performance

6. 6
Digital Manufacturing Performance
Delivered through three enablers
Procure for better value1
Industry-led innovation2
Skills for the future3

7. Construction
Sector Deal
Transforming
Infrastructure
Transforming
Construction
Challenge
Construction policy

8. Standard
products and
processes

9. Digital transformation
across asset lifecycle
Information
Management
Framework
Product family
architectures
Process
engineering
Performance testing
and validation
Demonstration and
engagement

10. Platform
Specification
Component
Set
Digital
Library
Configurator
Tool
Digital
Twin
Evaluation
Framework
Quality
Management
Manufacturing
Engineering
Supply Chain
Capacity
Product Family
Architecture
Government
Discovery
Information
Management
Asset
Management &
Digital Twins
Product
Validation
Digital Maturity
Demonstrators
Commercial
Transformation
Skills and
Training
Component Data
Digital
Compliance
Platform
Concept

11. Active
buildings

12. Information
• Data interoperability
• Digital integration platform
• From BIM to machine control
• AR for efficiency
• IoT for site plant
• IoT and concrete curing
• IoT and thermal performance
• LIDAR for cranes
Product and process
• Panelised housing
• DfMA for housing
• Modular Homes
• Industrialised homes
• Energy active prefab
• Smart piles
• Frame optimisation
• Modular steel
Machine learning
• AI and logistics
• AI for programme prediction
• AI and BIM
• AI and component tracking
• AI for site safety
• AI and progress monitoring
• AI for quality
• Alexa for sites
Funded innovation
• 3D concrete printing• Robot clusters • Non-prismatic concrete

13. SEISMIC
Redesigned steel frame for school buildings,
standardised across two major suppliers:
 40% reduction in cost
 52% faster assembly
 57% reduction in weight (40% reduction in emissions)
 Exports - being used overseas
Market uptake:
 Steel frame on Gen. 5 procurement framework for DfE
 Interest for other buildings types
 Digital configurator
 Will extend to other components

14. AIMCH
 UK’s largest house builder and second largest
social landlord coming together with their supply
chains to industrialise housebuilding
 Using challenge approaches to reduce cost, boost
productivity (40% target), increase safety onsite,
improve quality (75% less rework) and 30% faster
 Bringing in wider housebuilding community, and
establishing data to prove the business case
Impacting 35,000 homes a year
https://www.aimch.co.uk/

15. Draft benefits map
Benefit Title Benefit Type Method of Measure Target Value
Reduction in whole life costs Economic
Contracted projects influenced by TC programme - total value to date, where
calculated lifetime cost is reduced (around 33%).
£3bn projects at around 33%
reduction
Reduction in delivery time Economic
Measured reduction in time versus baseline for project conception to delivery
for TC influenced projects - target of £3bn worth
50% reduction for £3bn
projects
Reduction in Trade Gap Economic Measured trade gap for construction sector including engineering services. £200m
Reduction in greenhouse gas emissions Economic Target - £3bn assets with reduction in lifetime emissions. £3bn projects
Reduction in productivity gap Economic Target £10bn projects contracted with increased productivity. £10bn projects
Increased industry investment Economic
Measured match and aligned funding (influenced R&D and project builds) by
the TC programme £250m
Critical mass of active energy positive
buildings. Economic
Value of buildings contracted or specified using active energy technology,
influenced by the TC programme. £280m
Demonstration of the business case for
active energy buildings Technology Measured/calculated from TC influenced projects. 5 - 3 years
Uptake of concepts at scale Economic
Measured % of government contracts enabling TC methodologies, e.g. modern
methods of construction (offsite or pre-manufactured value). 15% contracts
Higher levels of lifetime build asset
performance Economic
Measured value of projects influenced by TC programme that demonstrate
greater whole-life performance, or include value measures. £2bn of projects
Improved assurance of buildings
Legal /
Regulation
Measure engagement level of sector/government in new assurance
approaches.
No easy metric, will constantly
review with gov oversight

16. 16
Summary
More sustainable business models Impact at scale
Improved profitability Productivity improvement
Skills Agenda delivered Value adding jobs in regions
Industry
Government
Digital Manufacturing Performance
Increased Exports Carbon reduction
More
houses
More rail
capacity
Improved car
journeys
Cheaper
energy
Better public
services

17. EMAIL: sam.stacey@innovateuk.ukri.org
TELEPHONE: 0300 321 4357
WEBSITE: https://www.ukri.org/innovation/industrial-
strategy-challenge-fund/transforming-construction/
Sam Stacey
Challenge Director –
Transforming Construction
UKRI
FOR FURTHER INFORMATION

18. 1
The Government strategy
for transformation in the
infrastructure sector
Transforming Infrastructure
Performance (TIP) &
Transport Infrastructure
Efficiency Strategy (TIES)
Innovate UK
Competition Launch
Catherine De Marco
Department for Transport
September 19

19. The construction sector has a productivity
opportunity
2OFFICIALSENSITIVE

20. Infrastructure investment is trebling to
a historic high
3OFFICIALSENSITIVE

21. In response, Transforming Infrastructure
Performance (TIP) was launched
4OFFICIALSENSITIVE
TIP aims to improve outcomes for
users, investors, and society,
focusing not just on construction, but
performance over the whole life of
infrastructure

22. TIP has made progress in all the themes
5OFFICIALSENSITIVE
Smarter Infrastructure
Working Group
Collaborative
Procurement
Working Group

23. TIP is aligned with other initiatives that aim to
transform the sector
6OFFICIALSENSITIVE

24. The Transport Infrastructure Efficiency Strategy
(TIES) is transport's transformation programme
7
TIES Partners
“Greatest opportunities to drive
efficiencies is during the early
stages of investment planning”.
Chair and Taskforce

25. Our ambition is to deliver a step-change in transport
infrastructure projects
8OFFICIALSENSITIVE
1. ‘Increasing our understanding of cost and
performance’
2. ‘Exploiting digital and innovative
technologies’
3. ‘Enabling delivery through
improved business processes’
‘Greater confidence
that its infrastructure
programmes will be
delivered to budget
and schedule’
‘Develop baseline
and target for
capital investment
delivered through
modern methods of
construction’
‘Business cases are
more robust and better
placed to predict the end
state of infrastructure
programmes’

26. Benchmarking is critical to understanding cost and
efficiencies
9OFFICIALSENSITIVE
Benchmarking of
Footbridges
Short-term: High Impact Programme to address the needs of ongoing infrastructure
programmes
Long-term: Assurance around what programmes are likely to cost; support for wider
strategic objectives such as carbon reduction; driving innovation.
Theme 1
Theme 2 Theme 3

27. Collective activity
Robust benchmarking will underpin increasing use of
digital and innovative technologies
10OFFICIALSENSITIVE
Developing an evidence base

28. Project Delivery
Procurement
TIES will enhance project delivery through improved
business processes
11OFFICIALSENSITIVE
Theme 1
Collaboration with supply chain
Challenge Function