{"id":72489,"date":"2020-02-27T07:36:57","date_gmt":"2020-02-27T07:36:57","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=72489"},"modified":"2020-02-27T07:36:57","modified_gmt":"2020-02-27T07:36:57","slug":"construction-in-the-uk","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/construction-in-the-uk\/72489\/","title":{"rendered":"UK construction must \u2018fix up\u2019 to unleash full potential, says CBI"},"content":{"rendered":"

Every \u00a31 spent on construction in the UK creates \u00a32.92 of value to the UK economy, according to research by CBI<\/a> and Oxford Economics<\/a><\/h2>\n

Construction in the UK currently employs 2.3 million people and contributes 6% to the UK\u2019s GDP. However, with average profit margins at the industry\u2019s largest firms hovering around just 2.5%, construction firms spending twice as much on legal services than other industries and a third of the workforce less than 15 years from retirement, it is crunch time for the sector.<\/p>\n

\u2018Fine Margins\u2019, a report by CBI, highlights how better management of risk \u2013 eradicating unfair risk allocation between clients and contractors and embedding better procurement behaviours \u2013 will lead to additional new homes<\/a>, buildings and infrastructure being delivered on time and to budget.<\/p>\n

\u2018Fine Margins\u2019 shows that tackling these issues will create financially sustainable construction in the UK, which can invest more in training and technology. Consequently, if this investment lifts the productivity of the industry by just 2%, it has the potential to add \u00a330bn to the UK economy<\/a> annually by the end of this decade.<\/p>\n

Fix the foundations of construction<\/h3>\n

Josh Hardie, CBI deputy director-general, said: \u201cThe UK\u2019s construction sector employs millions of people and underpins the UK economy with every \u00a31 spent on already creating nearly \u00a33 of value to the whole economy.<\/p>\n

\u201cThis is a crucial time for the construction industry with the demand for new, sustainable homes, offices and transport infrastructure<\/a> on the rise. And all within the scope of rapidly improving the sector\u2019s impact on the environment.<\/p>\n

\u201cBy fixing the foundations of the construction business model between clients and contractors, essential new investments in skills, tech and innovation are possible and we can unleash the full potential of the industry.<\/p>\n

\u201cAdversarial behaviours built up over many decades coupled with problematic approaches to risk allocation and procurement have resulted in a business model that too often remains short-termist and unsustainable.<\/p>\n

\u201cIt’s why the CBI is calling for an industry-wide change that can deliver greater number of infrastructure projects on time and on budget.\u201d<\/p>\n

The CBI recommends:<\/h4>\n