The Confederation of British Industry (CBI) has warned that the British construction industry is facing a crucial period where thin profit margins and an ageing workforce will clash with high demand for construction. In the demand for construction there is widespread awareness of the need for sustainability. A new report says the business model used in the construction industry is not fit for purpose with issues such as adversarial relationships between clients and contractors (as well as between businesses), unfair approaches to risk allocation and procurement, and a focus on price rather than value for money. The report recommends that both government and businesses have roles to play in resolving these issues, such as by discouraging single-stage procurement processes and instead ensuring that major projects plan an initial, non-competitive stage during the procurement process to identify and account for risks. It also recommends that businesses should be prepared to step away from contracts where the terms are too onerous or the price too low.

Read the full story here on E&T

0

No comments

You must be logged in to post a comment.