SEC calls for “3 Ps” in construction
UK: The Specialist Engineering Contractors’ (SEC) Group has called on the government and industry to focus in 2018 on the “3 Ps” – procurement, payment and professionalism.
Pointing out that the SEC Group represents the largest sector, by value, in the UK construction industry, its CEO Professor Rudi Klein argues that the industry’s only route to long-term improvements in growth and productivity lies in addressing these “3 Ps”.
On the subject of procurement, the SEC maintains that in spite of countless reports and initiatives the industry’s procurement and delivery processes remain as adversarial, and non-collaborative as ever. This leads to the loss of billions of pounds through process waste such as needless re-work.
SEC Group will be calling on public and private sector construction procurers to submit new projects for piloting alliancing arrangements underwritten by integrated project insurance with the aim of achieving up to 20% savings.
The SEC Group maintains that the construction industry is experiencing a financial crisis with large construction companies in financial distress and payments to SMEs taking longer and longer. The Group will be inviting both public and private sector clients to use project bank accounts to quicken the flow of cash to the supply chain.
With recent reports highlighting the lack of competence and falling standards in the construction industry, the SEC Group is calling on the Government to give consideration to a statutory regime for corporate competence similar to construction licensing schemes in the US and Australia.