Construction projects for life sciences businesses: collaborative working and effective project management

As the UK life sciences sector continues to grow, numerous projects ranging from purpose-built labs with intricate specifications, housing, amenities, travel connections and office space are underway.

This interconnected ecosystem, particularly within the "Golden Triangle" of Oxford, Cambridge and London, is crucial for sustaining growth and providing stakeholders with the necessary assets for their research and development initiatives.

The construction of specialised facilities for businesses in the life sciences industry is generally a complex undertaking. In this article, we outline points for life sciences businesses to consider when developing these sites to mitigate risk and support optimal results.

Collaboration on construction projects

Earlier this year, the Joint Contracts Tribunal (JCT) released the 2024 edition of the Design & Build Contract, which introduced important changes for construction professionals. Notably, it included the following provision relating to collaborative working between parties to a construction project:

“The Parties shall work with each other and with other project team members in a co-operative and collaborative manner, in good faith and in a spirit of trust and respect. To that end, each shall support collaborative behaviour and address behaviour which is not collaborative.”

Until further guidance on the threshold of “co-operative and collaborative” working is made available, parties to a construction project may be guided by a 2017 High Court decision[1] in which it was found that compliance with a duty of “mutual trust and co-operation” could be achieved where a party pursued its legitimate commercial interests, so long as it made no attempt to improperly exploit the other party.

Early negotiations and written agreements

Accordingly, ensuring compliance with the new principles of collaboration from the outset of the project may require additional negotiation between the parties, with specific details to be captured in their written contract.

Early engagement with these principles could be encouraged through informal workshops between project stakeholders to discuss issues such as buildability, programming and construction risk. The outcome of these discussions can subsequently be recorded in formal letters of intent or pre-construction services agreements.

When drafting the actual construction agreement terms, the parties should seek to avoid the balance of risk being significantly weighted in favour of one party. Instead, the parties may consider contractual mechanisms that compensate the supply chain in the event of a problem, e.g. through gain-share arrangements, where both the supply chain and client share in the risks and rewards. This approach may foster better collaboration between the contracting parties but must be carefully drafted to deliver the desired results.

Clear communication

One key aspect of collaborative working between the parties to a construction project is clear communication, including discussion and agreement on:

• the overall purpose of the project,
• specific requirements that will ensure the building is fit for purpose for the intended occupiers,
• how (and which) technical documents should be shared between the parties, and
• the appropriate channels of communication through which to raise any concerns.

Effective communication allows all parties to take decisive and efficient action to achieved their desired outcomes and reduce the likelihood of costly disputes arising.

It is important to establish these practices from the outset, as the early phases of a project offer the greatest opportunity to drive higher performance overall and establish trust and understanding between the parties. Once the works have commenced, regular team meetings between the client, design team and the contractor should continue to support these aims.

Key performance indicators (KPIs)

Disputes around the scope of works and what is required for practical completion are common in all industries, but the risk of this naturally increases with the complexity of the project. Life sciences facilities are often particularly complex projects, usually requiring specialised fit outs.

To minimise the risk of dispute, delay or cancellation in a complex life sciences construction project, parties should ensure they have clearly defined targets or KPIs for specification and performance, e.g. requirements for certain rooms to be "dust-free" or achieving certain vibration tolerances, which should be clarified with contractors from the outset along with all the supporting materials to enable the works to progress.

Technology and construction methods

Digital technologies and new methods of construction are transforming the industry by enabling greater collaboration between teams. One such process is Building Information Modelling (BIM), which helps teams identify potential issues early in the design process, allowing for necessary changes before construction begins.

Other examples include mobile mapping technologies and laser scanning, which capture spatial data to create up-to-date digital representations of construction sites to aid project management and recording progress on site. Artificial intelligence may also assist project managers in monitoring works and analysing data.[2]

On complex life sciences construction projects, investing in and embracing technological tools can complement the communication among different teams, assist collaboration and potentially reduce the likelihood of costly delays and disputes.

Conclusion

All construction projects can expect to face some form of unforeseen event or issue due to the nature of requiring input from multiple stakeholders and reliance on unpredictable supply chains. By prioritising early engagement, clear communication and defined targets or KPIs, stakeholders can navigate the complexities inherent in life sciences projects. The integration of advanced technologies like BIM and AI can further enhance collaboration, enabling teams to address potential challenges proactively.

Our multi-disciplinary life sciences team has extensive experience advising on construction projects in the industry. If you have any questions on this topic, please contact a member of our team.