First Kelly Market - Construction

The 2003 Increasing Competition and Improving Long-term Capacity Planning in the Government Market Place, report by Sir Christopher Kelly identified the construction market as the First Kelly Market (FKM)
Recommendations were taken from the set of proposals for the strategic management of public sector procurement in the construction market.  These fall into three categories:

  • Market Consultation - ways of embedding early supplier engagement in public sector procurements;
  • Market Shaping - ways of making and implementing market decisions based on specific regional pinch points and capacity issues. OGC commissioned the 2005-2015 Demand/Capacity Study report from Deloitte to evaluate the effect of construction demand in the South East of England. This was completed in May 2006.
  • Market Intelligence - ways of sharing supply and demand information to enable better future planning for supplier and procurers. 

Forward looking demand plans were collected from public sector bodies so that a picture of public sector demand for major construction projects over the next three to five years could be developed. Work was undertaken on the supply side to obtain qualitative and quantitative data from supplier of construction services in order to gain understanding of the issues facing the industry.

Over the FKM project's duration engagement with industry took place via a number of workshops and a regularly distributed newsletter updating government departments and industry.

OGC's Supplier and Markets Group has continued this work.  Aggregated demand data is now available in an interactive graphical display on this web-site. The aim of this work is to enable both Industry and the Public Sector to have a better view of future demand, to help improve both planning and bidding strategies.