A report by the Specialist Engineering Contractors Group has identified payment terms and risk placement pressures as key negatives on the supply chain.
The report concludes that there is increasing dissatisfaction (as compared with 2000 and 2005) with contractual conditions. Part of this is due to discontent with current payment terms but the major problem continues to be the overriding desire to place all risks with the supply chain.
Only 33 per cent of respondents expressed satisfaction with the conditions on offer on the majority of their projects.
The survey has highlighted three critical areas which need to be addressed as part of the process of implementing the Government Construction Strategy:
- Lack of satisfaction with the contracts offered
- The absence – for the most part – of early involvement by specialist engineering contractors in the design process
- The paucity of teamworking arrangements involving specialist engineering contractors.
- It is suggested that the following actions are instigated to resolve these issues:
- All government procurers should insist on the use of those standard sub-contracts that are in the suite of contracts they are using in their agreements with tier 1 contractors.
The Specialist Engineering Contractors’ (SEC) Group is an umbrella representative body in the construction industry.
It is present in Scotland and Wales through SEC Group Scotland and SEC Group Wales. Its membership consists of the industry’s premier trade associations, including Plumbing and Heating Contractors Alliance (comprising the Association of Plumbing and Heating Contractors and the Scottish and Northern Ireland Plumbing Employers Federation).