Is it too late for UK construction to benefit from the Olympics?

Olympic Stadium

When 黑洞社区 launched its 2012 campaign in the first edition of the year, aimed at making sure the story of the huge construction success of this summer鈥檚 Games was told to as wide an audience as possible, it didn鈥檛 feel like it was a particularly controversial topic. Indeed, what could be more universally welcomed than giving those firms involved some credit, and allowing others to learn from what had happened?

In reality that assumption couldn鈥檛 have been further from the truth. Because under the terms of the contracts signed by the 800 construction firms working on the Games, they aren鈥檛 allowed to market their involvement in the project, including using advertising or soliciting any media coverage. 黑洞社区鈥檚 campaign then responded to this seemingly idiotic own goal during a time of acute stress for the UK construction industry, calling for the 鈥渘o marketing rights protocol鈥, to be dropped.

Last week prime minister David Cameron responded, following the publication of a report on the issue by Olympic Delivery Authority chair Sir John Armitt, saying the problem would be tackled as a matter of priority. Except it鈥檚 already clear that 鈥 in fact 鈥 no action is likely until the end of the year, raising questions about just how effective Cameron鈥檚 intervention will be.

This policy could be single-handedly pushing back UK involvement in Olympic work until 2024, which is a pretty daft thing to do

Jason Prior, Aecom

Because for architects trying to win work on future Olympic Games, the prime minister鈥檚 timeframe is certainly not good enough. Cameron said last week it was 鈥渧ital we don鈥檛 allow rules on Olympic marketing to block companies from making the most of that success鈥. However, the government鈥檚 official response shows its action will simply take the form of negotiations with the British Olympic Association (BOA), which takes over post-Games ownership of the contractual rights to enforce the no-marketing protocol
in the autumn. The government added that it 鈥渉opes鈥 a solution can be found 鈥渂y the end of 2012.鈥

At a gathering of architects in London鈥檚 黑洞社区 Centre last Friday, a range of the designers behind this summer鈥檚 Games defiantly flouted the marketing protocols to promote their work. The event, consisting of 12 short presentations, was organised by New London Architecture chair Peter Murray after Locog turned down his requests to run an exhibition of Olympic work. And these were hardly radical young idealists with nothing to lose - speakers included Bob Allies, co-founder of Allies & Morrison, Kevin Lloyd at John McAslan & Partners, and Philip Johnson at Populous, designer of the Olympic stadium.

One of last Friday鈥檚 revolutionaries was Jason Prior, chief executive of planning and design at that well known subversive little outfit Aecom, and most pertinently, the man widely credited with crafting the original masterplan for this summer鈥檚 Games and someone who has already won work for Aecom on the Rio games in 2016. 鈥淭he fact that UK firms can鈥檛 talk about what they鈥檝e done is ridiculous,鈥 he says. 鈥淩io has selected its teams, but the bidders for 2020 are selecting now - basically if you鈥檙e not in it now, then you鈥檙e probably going to miss out.

鈥淭his policy could be single-handedly pushing back UK involvement in Olympic work until 2024. Which is a pretty daft thing to do.鈥

Researching his report, Armitt found firms that had seen no 鈥渞eal commercial benefit鈥 because it was 鈥渧irtually impossible鈥 to demonstrate they are working on the Games. He says the issue particularly affected small firms. 鈥淐ompanies fall into two categories,鈥 he says, 鈥渢he major companies that get the majority of their work through personal contacts, and the SME firms that rely on advertising primarily to win contracts. There鈥檚 nothing to stop you talking to contacts about your involvement, but you can鈥檛 take out a full page advert.鈥

Armitt says the focus of all the main players is on ensuring the success of the Games, rather than helping struggling construction firms. The problem is the BOA has the task of raising revenue through sponsorship to finance the British team for the 2016 Games in Rio. It is concerned that any watering down of sponsors鈥 rights will affect this money-raising process. 鈥淭he BOA has the power to solve this problem, but it is no different from any other sporting association in that it is seeking to raise money for the British team,鈥 he says.

Vital then will be the attitude that the BOA takes toward these talks in the autumn. But so far, despite Cameron and Armitt鈥檚 exhortations, it is offering little by way of reassurance.

A spokesperon says: 鈥淭his programme is in its early stages, and a great deal will need to be worked out with the various entities that might be affected. We鈥檙e not in a position to say any more than that.鈥 All of which makes the government 鈥渉opes鈥 of resolution by Christmas sound distinctly optimistic.

鈥淚n the design and development business,鈥 says Aecom鈥檚 Prior, 鈥測our reputation is everything and it鈥檚 built off your projects.鈥

The problem for the UK construction industry is that it is currently barred from working to build that reputation. There is little in Cameron鈥檚 announcement to offer immediate hope of improvement.

 

The Armitt report

  • The main recommendations are:
  • The government should take urgent action to ensure that marketing restrictions applying to London 2012 suppliers are relaxed as soon as possible after the conclusion of the Olympic and Paralympic Games
  • The government should adopt the principles of the procurement and programme management approach used by the Olympic Delivery Authority for public sector projects valued at over 拢10m
  • UK Trade & Investment (UKTI) should promote British business achievements in delivering major sporting events by creating a small task force to target major overseas opportunities
  • A comprehensive marketing tool should be created to promote the success in building the venues and infrastructure for the London 2012 Games
  • The CompeteFor network should be retained for all public sector projects, given fresh promotion and its database expanded.

 

The legal case for relaxing the protocols

Joanne Kelly

It is a shame that during this global showcase, contractors are unable to endorse their connection with the Olympics. However, it is now vital that our talent is promoted as soon as possible after the event.

Business leaders have already lobbied government ministers seeking a relaxation of the protocol. It needs a common sense approach and after the Olympic and Paralympic Games are over, protection of sponsors鈥 investments surely must be less critical.

As things stand, the no marketing rights protocol still applies to the contracts of contractors and suppliers for the next 12 years and will only be varied if the government successfully negotiates a relaxation with the BOA/IOC.

Looking ahead, the obvious route to implement any relaxation would be for the BOA to issue a global mandate varying the protocol rather than amending individual contracts. So it will probably be a one-size-fits-all approach.

However, the no marketing protocol is an IOC requirement for all Olympic and Paralympic Games, so the government will have no choice but to go head-to-head with the IOC on this issue.

Joanne Kelly, construction partner at Taylor Wessing

 

Urgent should mean now

Peter Murray

While one welcomes John Armitt鈥檚 call for 鈥渦rgent action鈥 to relax the no marketing rights protocol, it is a pity that the government鈥檚 understanding of 鈥渦rgent鈥 means Christmas, at the earliest. The government has stated that it understands and supports 鈥渢he reasons why restrictions have been in place to protect the marketing exclusivity of London 2012 sponsors鈥, yet I have spoken to a minister in the DCMS who said: 鈥淢y civil servants tell me to tell anyone who asks that they should ignore the protocol.鈥

Suppliers are understandably unwilling to break a signed contract, yet it is crazy that this situation is allowed to drag on for so long that the world鈥檚 attention will no longer be focused on London. Now is the time for firms to be promoting their work with the Olympics.

If the prime minister is serious in his desire for the UK economy to benefit from the excellent work of designers, contractors and suppliers, he should now call for the protocol to be abandoned before the start of the Olympics. Why not coincide this with the Global Business Summits that Number 10 and UKTI are holding during the Games with 3,000 overseas business leaders? Wouldn鈥檛 it be daft if the firms that made the whole thing possible couldn鈥檛 crow about their work?

Peter Murray is chairman of New London Architecture

 

黑洞社区 2012

黑洞社区鈥檚 2012 campaign seeks to celebrate and learn from the UK construction industry鈥檚 achievement in delivering the London Olympic Games on time and to budget. Online and in print, 黑洞社区 2012 is highlighting the innovation, technology, projects, speed and sustainability initiatives that companies have deployed through three key themes - Greener, Faster, Smarter. You can find all our London 2012 coverage on