John Lewis鈥� head of constructon urges industry to reduce variable costs and bring projects in on budget

Tony Jacob, head of construction and maintenance for John Lewis Partnership, opened 好色先生TV鈥檚 Supermarket conference this morning with a call for the construction industry to 鈥済et under the skin of the retailer鈥�.

In the keynote speech to a packed conference, Jacob urged the construction supply chain to help John Lewis and Waitrose double in size by being faster, braver and more flexible.

Among his top priorities, Jacob said he wanted to reduce variable costs. He said, 鈥淧eople must understand that schemes have to be within budget鈥�.

Speaking about procurement Jacob said the business had repeatedly found that it got better value for money through tendering building contracts rather than working through partnerships and negotiating contracts.

He said tendering led to prices being lower by 鈥渁 factor of low double digit figures鈥�.

However, he did say that JLP didn鈥檛 just take the lowest bid and as costs were on a downward trend he was now looking to see 鈥渉ow sustainable some of these low costs are鈥�.

Jacob called on external suppliers to 鈥渢hink like a retailer and understand our needs鈥�. He accused property services teams of spending 鈥渢oo much time arbitrating between external teams.鈥�

He said: 鈥淲e are looking for people to help us innovate but more than anything deliver on your promises, if you say you鈥檙e going to do something you need to do it鈥�.

John Lewis and Waitrose have been surprise winners in the economic downturn, generating 拢4.5bn sales for 2009 and employing 72,000 staff. Expansion plans for Waitrose include spending 拢250m a year on new stores and upgrading estate for next three years. Jacob said: 鈥淚f you don鈥檛 live near a Waitrose now, chances are you will soon.鈥�

Sustainability was another challenge identified by Jacob, saying the business wanted to reduce carbon footprint while also expanding its operations.

Jacob pointed to John Lewis鈥� 鈥楻esponsible Development Framework鈥�, which outlines the business鈥� sustainability policy over the next decade.

This document sets out the aim to invest in its store estate, with the emphasis on refurbishment as much as flagship stores.

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