The principles of MERIT began development in the early 70s as part of research into ‘Contractors Bidding Behaviour’ and experiments with game theory and competition theories to explore how contractors responded to fluctuating market conditions. This work was funded by contractors associations and by the Building Research Establishment. As part of this work primitive games were developed that were played in classrooms with students and in companies with company executives to explore responses to market conditions. These games were developed and computerised to more sophisticated levels but essentially remained bidding games. The breakthrough that produced MERIT as a simulation of the management of a construction company was sponsorship obtained from Balfour Beatty Construction Ltd. The funding was to design and develop the National Construction Business Game to be run on behalf of The Institution of Civil Engineers. This required the development of all the project and company management features to be included in the simulation.

Since the very beginning until the present MERIT has operated in two phases:

• the early years, whereby individual teams are competing against the simulations and strategies embedded in the software. This has allowed MERIT to be a distance learning, mass market vehicle reaching a wide range of participants and develop skills in remote and collaborative working between the participants; and
• the competitive phase whereby the leading teams are brought together and compete against not only the computer software but also the other teams. This introduces an additional dynamic that gives the ‘finals’ of the MERIT competitions almost unbounded tensions and excitement.

Both phases offer a dynamic, participative and stimulating learning experience.

The first version of MERIT, subsequently known as MERIT1, ran as the National Game from 1988 to 1993. The data exchange between participants and the Game organiser was, in keeping with the technology of the time, paper based, with participating teams sending in completed forms with their decision data, the data was processed at a centre and the results posted back. Balfour Beatty sponsored the development and operated the National Game which required a team of data processing staff.

The second version of MERIT which ran from 1994 to 1998, MERIT2, developed the software with additional features and aligned it with industry developments. Data exchange was by diskette thereby reducing the processing effort required. Balfour Beatty sponsored the development of MERIT2 and operated the National Game.

The third version of MERIT, known today simply as MERIT, developed the WEB based version. This removed the data processing burdens and provided a much more responsive exchange between the participating teams and MERIT. This development was sponsored by the DTI (DETR), Balfour Beatty Ltd, Mouchels, and the CITB. The staff involved from the Department of Civil Engineering at Loughborough University who had developed MERIT took responsibility for operating the National and other Games.

Building on the innovative means of dissemination through the National Game has established MERIT as a recognised and widely used training vehicle in the construction industry. Each participant is awarded 2 CPD training days by The Institution of Civil Engineers and the finalist in the annual competition are awarded 3 CPD training days. Other Professional Institutions award the CPD training days on individual application by the participants.

Over 20,000 young engineers and students have participated in the MERIT experience. This gives rise to the claim that MERIT has been responsible for introducing many of today's construction industry executives to the issues of company and financial management resulting from their engineering activities.

MERIT is also a dynamic and evolving training vehicle capable of responding to the inevitable changes the industry faces brought on by the demands of modern business.