I blame the Government…


Well Sir John Egan does, so read on….

But first

Here’s an unsurprising statistic.….one in eight UK Construction firms are pricing jobs with no profit in.

Come on, who on earth paid KPMG to come up with this piece of earth shattering news! Oh I know its just KPMG wanting to drum up more business for themselves.

For those of us old enough and been around the game long enough will know what really goes on, and its nothing new to find this out given that we are in one of the toughest periods construction has ever known…..or has it?

On this theme a thank you to Keith Kelly @pagroupuk via twitter who drew my attention to a bbc article online about deconstructing the economy. Makes for some fascinating reading. Statistics I ask you. Duh.

Anyway who out there doesn’t know what contractors get up to when things get tough and they are scrambling around for work and every last penny they can find. And who suffers in the long run as a result? Well everyone really. Don’t they?

How can we change this circus we are in? I’m afraid I haven’t got the easy answer, I wish I had. Everyone has a role to play from the employer, professional advisers, contractors, subcontractors and suppliers alike.

Dear old Sir Michael Latham and Sir John Egan and their review Rethinking Construction of our industry from 1998 recommended many things but heres two of them repeated again:

  • ’The industry must replace competitive tendering with long term relationships based on clear measurement of performance and sustained improvements in quality and efficiency.’
  • ‘The public sector has a vital role to play in leading development of a more sophisticated and demanding customer base for construction. The task force invites the government to commit itself to leading public sector bodies towards the goal of becoming best practice clients seeking seeking improvements in efficiency and quality through the methods that we have proposed.’

Sir John Egan was asked 10 years on by building magazine were we on track? Part of his interesting reply (although in the context of the OFT investigation at the time) ‘In 1998 we said the government was a relatively poor client. This is still the case.’

So perhaps that’s the answer we’ve got to wait for the government to slap us into shape??? Think again……..

If you want to re-read the full original report heres the link

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About Me

I’m now the Managing Director of Mynott Associates Limited my own specialist measurement business. I’ve been in the industry all of my life since I left school. My first job was with Bovis Construction as a management trainee where I trained to become a quantity surveyor. I’ve worked for contractors all through my career, I am FRICS, FCIOB and MCIHT qualified and act as an RICS assessor. I’m also a keen Arsenal supporter having followed them from a young boy

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