Viewpoint: Construction firms need to embrace sustainability

CONSTRUCTION companies across Merseyside need to embrace the sustainability agenda.

As if being in the construction sector wasn’t difficult enough.

With the increase in the cost of supplies and slashed budgets in the private sector, public sector projects have been seen by many contractors as the golden goose.

But now, the inevitable cut in public spending, coupled with the obstacle course of OJEUs and sustainability policies, (the energy bill, carbon reduction commitment and sustainable buildings’ policy, to name just a few), mean getting on a framework is a challenge in itself, let alone securing work and make a profit.

So what do firms in the construction sector need to do to set themselves apart from the competition and become an innovative construction company?

Firstly, if margins are being squeezed from every angle, contractors need to look at their own spend. By reducing their own site waste, reducing over-orders and recycling materials, SMEs can increase their profit margin and become contractors with the sustainable agenda at their core, instead of claiming to be green in a prequel, simply to get onto a framework.

The days when a ground-source heat pump, the size of a jet engine, could be installed in a small office scheme and, for a premium for it to be called sustainable, are long gone.

From procurement and design to innovation and people, SMEs must demonstrate added value to the client if they are going to get onto the framework..

Secondly, remember the client doesn’t have all of the answers. Contractors are no longer seen as builders who need to deliver a project on time and to budget, but are instead seen as a vehicle for the client’s own service improvement. Getting through OJEU submissions and then winning actual work is no longer about just ticking the boxes, so differentiate your service offer and invest energy and time to sell your business – those who do, won’t be disappointed.

Finally, this proactive approach must be instilled from the top down. The supply chain needs to be as engaged as the contractor. For example, some of the supply chains we are working with are aiming for “zero waste to landfill” – make no mistake, this is the future, but can also be the differentiator, which helps contractors get onto the framework and ultimately win work.

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