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Procurement issues are harming construction sector, says report (copy 1)

23 August 2012

A new report has warned that problems with procurement processes are putting increased strain on the UK construction industry.

The Civil Engineering Contractors Association (CECA) asked its members to name the major issues affecting their businesses, with many revealing that "bureaucratic procurement" is a current source of frustration.

Suicide bidding was cited as another concern, with 17 per cent of firms stating that competitors have priced contracts at unsustainably low margins in order to stay afloat.

Speaking to Supply Management, the CECA's director of external affairs Alasdair Reisner said certain procurement models can increase the likelihood of suicide bidding.

He told the publication: "We would like to see more enlightened models of procurement and a leaner approach, without putting too much burden on the supply chain."

Workload shortages were named as the main concern by 33 per cent of respondents to the survey, up from 26 per cent in January this year.

Earlier this month, a report from the CECA warned of a looming "infrastructure crunch" in the UK due to widespread falls in construction output during the second quarter of 2012.

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Categories: Commercial, Procurement & Supply Chain

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