The collapse of construction behemoth Carillion has led Phil Pluck, Group Chief Executive at the GGF, to raise concerns regarding the protection of smaller companies in the mire of disintegrating supply chains and the jobs that may be axed with them.
The Glass and Glazing Federation has expressed its sympathy with local government and other bodies who have the job to deliver largescale build projects with the dwindling funding from the Government.
Pluck (above) claims this makes a race to the bottom in terms of procurement practice, as an ever-increasing number of big contracts are given out based on the lowest price.
“This is a poor, short term approach which causes companies throughout the supply chain to operate at almost impossible margins. The companies that the GGF represents operate to the highest standards of manufacture, supply and installation,” said Phil.
“As a result of short term procurement practices and Government’s fixation with cost savings, a clear risk has been built into major construction projects.
He praised the work of GGF members, with the membership collectively represents more than 30,000 jobs in Britain alone, but stressed a cost cutting approach to awarding contracts puts build quality, safety and jobs in jeopardy.
He maligned the fact no legal protection is afforded to people in the supply chain who are now victims of Carillion’s collapse, which could lead to further company failures and subsequent job and talent losses.
“A knee-jerk reaction comprised of Government rescue packages to selected companies is of no reassurance to GGF Member companies and does not allow them to plan for long term sustainability. A lasting negative effect on Government tax revenue would be the result,” he said.
“I urge the Government to assess the long term damage that short term cost savings creates and to take heed that Carillion may not be the last company to collapse as a result. There are other major supply chains also operating at near impossible margins.”
Glass and Glazing Federation
40 Rushworth Street
t: 0207 939 9101
The Glass and Glazing Federation (GGF) will be promoting its ‘Training the Industry’ programme at The FIT Show.Posted in Articles, Building Associations & Institutes, Building Industry Events, Building Industry News, Building Products & Structures, Exhibitions and Conferences, Glass, Glazing, Posts, Training
Aggregate Industries has been recognised by the Chartered Institute of Credit Management (CICM) at the prestigious British Credit Awards.Posted in Articles, Awards, Building Industry Events, Building Industry News, Concrete, Cement, Admixtures, Information Technology, Posts
Lorient has appointed Kerry Hicks as its new Managing Director – he replaces Maria Powell, who retired after 23 years at the company at the end of January.Posted in Access Control & Door Entry Systems, Articles, Building Industry News, Posts, Recruitment, Security and Fire Protection
The back of LST radiators – warm, dark spaces – are the ideal place for bacteria to grow and thrive. Contour discusses the best way to clean behind them.Posted in Articles, Building Industry News, Building Products & Structures, Building Services, Health & Safety, Heating Systems, Controls and Management